AI Broadens. Warsh Pushes Back.

Nvidia reported a 70% quarterly revenue increase, with annual revenue expected to reach $400B this year. The company projects another 70% growth next year, aiming for $700B, which analysts support. This rapid growth is notable in the context of the ASX and Firmus.

Azio AI Holdings (AZIO) stock surged after announcing an expanded agreement with Power Champion Investment for up to 512 HGX B300 systems, valued at $230 million. The deal follows Nvidia's (NVDA) strong Q2 earnings, with $96.2 billion in sales. AZIO remains down 70% from its year-to-date high, with significant financial risks and no Wall Street coverage.

Nvidia reportedly agreed to acquire Hugging Face for $13B, a platform for open-weight AI models. The deal follows Nvidia's strong quarterly revenue and aims to counter OpenAI's custom AI chips. Hugging Face, previously rejecting Nvidia's investment, may now help Nvidia influence AI developers and protect its chip dominance. Nvidia's shares rose 7% on the news.

Nvidia reported $96.2B revenue, up 106% YoY, with data center contributing $89B. CEO Jensen Huang highlighted AI's growth. Nvidia is financing AI infrastructure, extending credit, and partnering with firms like BlackRock and KKR. Morgan Stanley estimates $200B exposure by 2028, mostly off-balance-sheet. Risks include AI monetization and wrong-way risk. Nvidia's role extends beyond chipmaking, impacting its financial profile.

Nvidia (NVDA) reported $96.2B revenue in Q2, up 106% YoY, with data center revenue at $89B, up 117%. GAAP EPS was $2.46. The Trump administration is considering broader semiconductor tariffs, potentially affecting Nvidia's growth. Nvidia's data center division accounts for 92.5% of sales, highlighting its exposure to AI infrastructure demand and potential tariff impacts.

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.