Nvidia Corp climbed 6.7 percent in early US trading yesterday after forecasting third-quarter revenue that beat analysts’ estimates, buoyed by demand for computer-graphics cards.
Nvidia forecast sales of as much as US$830.9 million in the third quarter, which ends in October. That compares with an average estimate of US$757 million in a Bloomberg survey of analysts.
Sales will grow between 5 percent and 7 percent in the period from the previous three months, the company said.
Chief financial officer David White said the company’s business was rebounding as the recession eases. Nvidia, the second-largest maker of graphics chips, is also getting its chips into mobile-device and scientific-computing markets. Improvements in manufacturing, meanwhile, is helping cut costs and lift profit margins.
“These guys are recovering from very, very low levels,” said Hans Mosesmann, an analyst for Raymond James & Associates Inc in New York.
Nvidia, based in Santa Clara, California, rose as much as US$0.88 to US$14 in trading before US exchanges opened, after closing at US$13.12 on the NASDAQ Stock Market on Thursday.
The company reported a loss of US$105.3 million, or US$0.19 a share, in the second quarter, which ended on July 26. The loss included an expense of US$119.1 million to fix and replace defective chips.
A year earlier, Nvidia posted a loss of US$120.9 million, or US$0.22 a share. It also had an expense to repair chips in that quarter, amounting to US$196 million.
Second-quarter revenue was US$776.5 million, compared with US$892.7 million a year earlier. Analysts had predicted US$709.2 million on average.
Nvidia had predicted that sales would rise 5 percent from the US$664.2 million in the first quarter, indicating a forecast of about US$697 million. It projected a gross margin of between 32 percent and 34 percent. Excluding some items, the margin was 36.3 percent.
Nvidia trails Intel Corp in sales of graphics chips. Intel, also based in Santa Clara, sells its semiconductors as part of other products, such as microprocessor sets. Nvidia competes more directly with Advanced Micro Devices Inc, based in Sunnyvale, California, in the market for separate graphics chips used in computer cards.
TAKING STOCK: A Taiwanese cookware firm in Vietnam urged customers to assess inventory or place orders early so shipments can reach the US while tariffs are paused Taiwanese businesses in Vietnam are exploring alternatives after the White House imposed a 46 percent import duty on Vietnamese goods, following US President Donald Trump’s announcement of “reciprocal” tariffs on the US’ trading partners. Lo Shih-liang (羅世良), chairman of Brico Industry Co (裕茂工業), a Taiwanese company that manufactures cast iron cookware and stove components in Vietnam, said that more than 40 percent of his business was tied to the US market, describing the constant US policy shifts as an emotional roller coaster. “I work during the day and stay up all night watching the news. I’ve been following US news until 3am
UNCERTAINTY: Innolux activated a stringent supply chain management mechanism, as it did during the COVID-19 pandemic, to ensure optimal inventory levels for customers Flat-panel display makers AUO Corp (友達) and Innolux Corp (群創) yesterday said that about 12 to 20 percent of their display business is at risk of potential US tariffs and that they would relocate production or shipment destinations to mitigate the levies’ effects. US tariffs would have a direct impact of US$200 million on AUO’s revenue, company chairman Paul Peng (彭雙浪) told reporters on the sidelines of the Touch Taiwan trade show in Taipei yesterday. That would make up about 12 percent of the company’s overall revenue. To cope with the tariff uncertainty, AUO plans to allocate its production to manufacturing facilities in
Six years ago, LVMH’s billionaire CEO Bernard Arnault and US President Donald Trump cut the blue ribbon on a factory in rural Texas that would make designer handbags for Louis Vuitton, one of the world’s best-known luxury brands. However, since the high-profile opening, the factory has faced a host of problems limiting production, 11 former Louis Vuitton employees said. The site has consistently ranked among the worst-performing for Louis Vuitton globally, “significantly” underperforming other facilities, said three former Louis Vuitton workers and a senior industry source, who cited internal rankings shared with staff. The plant’s problems — which have not
TARIFF CONCERNS: The chipmaker cited global uncertainty from US tariffs and a weakening economic outlook, but said its Singapore expansion remains on track Vanguard International Semiconductor Corp (世界先進), a foundry service provider specializing in producing power management and display driver chips, yesterday withdrew its full-year revenue projection of moderate growth for this year, as escalating US tariff tensions raised uncertainty and concern about a potential economic recession. The Hsinchu-based chipmaker in February said revenues this year would grow mildly from last year based on improving supply chain inventory levels and market demand. At the time, it also anticipated gradual quarter revenue growth. However, the US’ sweeping tariff policy has upended the industry’s supply chains and weakened economic prospects for the world economy, it said. “Now
RSS