Nvidia’s AI boom just ran into a new $96B question

The Trump administration is drafting a rule to ban renting Nvidia GPU computing time to Chinese AI firms via servers in Thailand and Singapore, but experts question its legal authority. The rule aims to close a loophole created by previous administrations' interpretations of export laws. The move follows concerns about China's access to advanced US AI chips, highlighted by the Kimi K3 model's release, which caused a market reaction. Nvidia stated it complies with export controls.

Nvidia reported $96.2B revenue, up 18% QoQ, with data center sales at $89B. Gross margin was 75%, but guidance suggests a drop to 74% due to rising memory costs. CFO Colette Kress cited increased memory procurement costs as the reason. This benefits Micron, a memory supplier, as Nvidia's higher memory commitments may lead to higher prices for suppliers.

Nvidia reported strong Q2 earnings with $96.2B revenue, driven by 117% YoY growth in data center sales. However, rising memory costs, particularly high-bandwidth memory, are reducing gross margins, which Nvidia attributes to increased component procurement costs. The company expects margins to decline further before recovering in fiscal 2028. This trend benefits memory suppliers like Micron Technology, as Nvidia's higher memory commitments suggest increased pricing power for suppliers.

Fed Chair Warsh rejected the Phillips curve, attributing inflation to fiscal deficits and money creation. NVIDIA (NVDA) reported $96B revenue, CAT (CAT) hit $20.5B quarterly sales. JPMorgan (JPM) posted 23% ROTCE. Warsh's stance may reduce rate volatility, benefiting growth stocks, industrials, and banks.

Nvidia (NVDA) reported strong earnings, with sales more than doubling and adjusted profit exceeding estimates. Raymond James analyst Simon Leopold raised the price target to $515, implying 126% upside, citing strong demand and supply constraints. Nvidia's market cap surged by $442 billion post-earnings. Leopold's target is higher than Wall Street's consensus of $322.95. Nvidia guided for $108 billion in October-quarter sales, topping expectations.

Nvidia, Salesforce, and CrowdStrike reported strong earnings, boosting AI investment optimism. Nvidia exceeded expectations, with Amazon planning to purchase 2M GPUs. Salesforce saw 435% YoY AI spending growth. CrowdStrike's revenue rose 26% due to AI-driven cybersecurity demand. Meta settled a $18B lawsuit over youth safety on its platforms.