Jensen Huang, president/CEO of Nvidia, speaks during a Siemens keynote at CES 2026, an annual consumer electronics trade show, in Las Vegas, Nevada, U.S. January 6, 2026. REUTERS/Steve... Purchase Licensing Rights, opens new tab Read more SAN FRANCISCO, Feb 25 (Reuters) - Nvidia (NVDA.O), opens new tab may have made its immense fortune on the back of specialized graphics processing units (GPUs) used to power artificial intelligence servers, but CEO Jensen Huang is increasingly professing his love for the mo ...

Core Insights - Intel has experienced a significant decline in its business performance despite a rebound in stock price, with the company still reporting losses in 2025 [1][9] - The stock market's positive outlook on Intel suggests expectations for future improvement, although historical performance indicates challenges that need to be addressed [2] Financial Performance - Intel's peak sales occurred in 2021, reaching $79 billion, but gross margin fell to 55.5% due to rising costs, and operating margin decreased to 24.6% [4] - In 2022, revenue dropped by 20% and net income fell nearly 40% due to decreased consumer demand and high inflation [5] - The decline continued in 2023, with net income decreasing by nearly 80% and sales falling another 14%, alongside loss of market share to competitors like Nvidia and AMD [6] - In 2025, Intel's gross margin improved slightly to 34.8%, but the company still reported a GAAP loss of approximately $300 million, with flat revenue overall [9] Leadership Changes - The resignation of former CEO Pat Gelsinger followed significant impairment and restructuring charges totaling $18.7 billion in 2024, despite attempts to cut costs [7] - Lip-Bu Tan was appointed as the new CEO in March 2025, bringing prior experience from his time on Intel's board [8] Strategic Focus - Tan emphasizes the importance of central processing units (CPUs) in the AI era, contrasting with competitors who focus on graphics processing units (GPUs) [11] - The success of Intel's strategic plan under Tan will be crucial for the company's recovery and future performance [12]

Core Insights - AMD reported strong revenue growth for Q4 2025, with a year-over-year increase of 34% to $10.27 billion, but the stock fell due to high investor expectations following a significant price increase over the past year [1][6] - The company provided solid guidance for 2026, anticipating Q1 revenue growth of 32% year-over-year to approximately $9.8 billion [6] Revenue Breakdown - AMD's data center revenue surged 39% year-over-year to $5.4 billion, driven by record CPU sales and increased GPU deployments, with eight of the ten largest AI companies utilizing its GPUs [4] - The client and gaming segments saw revenue increase by 37% to $3.9 billion, with client revenue rising 34% to $3.1 billion and gaming revenue jumping 50% to $843 million [5] - The embedded segment experienced a modest revenue increase of 3% to $950 million, with expectations for growth in 2026 [5] Market Dynamics - Sales of $390 million in GPUs to China contributed to AMD's Q4 results, but future sales to China are uncertain, with only $100 million forecasted for Q1 [2] - AMD's gross margin improved to 54%, up 300 basis points from the previous year, aided by the reversal of a write-down on MI308 chips for China [6] Valuation and Outlook - AMD's stock trades at a forward P/E ratio of 32 based on 2026 estimates, with a PEG ratio of 0.2, indicating potential undervaluation [9] - The company is expected to start delivering GPUs to OpenAI in the second half of 2026, reinforcing its position as a leading data center CPU provider [8]

Core Insights - Intel is set to produce graphics processing units (GPUs), a move aimed at competing with Nvidia in the AI and gaming sectors [1][5] - The initiative will be led by Kevork Kechichian, who was recently appointed as the executive vice president and general manager of Intel's data center group [2] - Intel's strategy for GPU development will be shaped by customer demands, indicating that the project is still in its early stages [3] Company Strategy - The decision to enter the GPU market comes despite Intel's previous focus on consolidating and concentrating on its core businesses under CEO Lip-Bu Tan [5] - The hiring of experienced engineers, including Eric Demmers from Qualcomm, suggests a commitment to building a strong team for this new venture [2]

The tech stock is a buy ahead of its upcoming earnings report, according to one Wall Street analyst.Shares of Advanced Micro Devices (AMD +3.95%) climbed on Monday, following bullish analyst remarks. By the close of trading, AMD's stock price was up about 4%. Second place could still be highly profitable AMD doesn't have to be Nvidia. That's the view of Wedbush analyst Matt Bryson.Bryson argues that there's no need for AMD to match its far larger rival's massive market share in advanced artificial intellige ...

Core Viewpoint - The current AI boom represents a significant technological turning point, comparable to the introduction of the internet, but skepticism exists regarding current valuations in the market [1][2]. Company Overview - Taiwan Semiconductor Manufacturing Company (TSMC) is a crucial player in the AI supply chain, manufacturing chips for various tech companies that rely on its efficiency and scale [2][4]. - TSMC holds a virtual monopoly on advanced AI chip manufacturing, making it the most trusted partner for tech companies [4]. Financial Performance - TSMC achieved its best year ever in 2025, generating $122 billion in revenue, which reflects a nearly 36% year-over-year increase [7]. - The company has a market capitalization of $1.7 trillion, with a gross margin of 59.02% and a dividend yield of 0.93% [6]. Industry Context - The demand for AI-related revenue has positively impacted TSMC's earnings, but the company is positioned to thrive even if the AI boom slows down or turns out to be a bubble [6][9]. - Major companies such as Apple, Nvidia, Tesla, and Broadcom depend on TSMC for their chip manufacturing needs, indicating a strong reliance on TSMC within the tech hardware sector [6][9].

Meridian Funds, managed by ArrowMark Partners, released its “Meridian Contrarian Fund” fourth-quarter 2025 investor letter. A copy of the same can be downloaded here. U.S. equity markets experienced a quarter supported by optimism around potential monetary easing and caution related to economic growth and valuations. Early gains were driven by strong AI-related earnings and the US Federal Reserve’s rate cut in October, which improved expectations for financial conditions. However, market sentiment cooled l ...

Could recent developments in Venezuela be significant for Intel?Intel (INTC 0.04%) stock rocketed higher early in Monday's trading, but it has since given up nearly all of those gains. The company's share price was flat as of 3:20 p.m. ET. Meanwhile, the S&P 500 and the Nasdaq Composite were both up 0.6%. Intel stock had been up as much as 6.9% earlier in the day's trading. Intel stock initially posted big gains on geopolitical newsOver the weekend, U.S. military forces carried out an operation to remove V ...

Core Insights - Nvidia has experienced a remarkable stock increase of 1,200% since the 2022 bear market, highlighting its strong position in the AI-driven chip industry [1] - The company generated $86 billion in profit from $165 billion in revenue over the last year, indicating robust profitability and growth potential [2] - Nvidia's fiscal Q3 revenue is expected to grow by 56% year over year, with projections for next year's revenue reaching $287 billion, driven by increasing demand for AI cloud services [3] Financial Performance - Nvidia's gross margin stands at 69.85%, showcasing its ability to maintain high profitability [6] - The stock is currently trading at 29 times next year's consensus earnings estimate, suggesting it remains attractively priced for future growth [8] Market Position and Strategy - Nvidia's data center GPUs command high prices, contributing to its competitive advantage and allowing for significant profit margins [4] - The company has a long-term roadmap for new chip development extending to 2028, indicating strong future demand in the data center business [6] - Nvidia's recent investment of $5 billion in Intel stock will enable Intel to produce custom CPUs for Nvidia's AI infrastructure, further solidifying its market position [7]

Core Insights - Nvidia is a leader in AI infrastructure, dominating the market for AI accelerators and generative AI networking equipment [1][2] - Nvidia has significant investments in CoreWeave and Arm Holdings, indicating confidence in their growth potential [3] Nvidia's Investment Portfolio - Nvidia owns $4.3 billion in stocks, with 91% allocated to CoreWeave and 4% to Arm [3] - The company collaborates with both CoreWeave and Arm, reinforcing its commitment to these investments [3] CoreWeave Overview - CoreWeave specializes in cloud infrastructure and software services tailored for AI workloads, utilizing Nvidia accelerators exclusively [4] - The company outperforms traditional data centers, achieving up to 20% better performance and minimizing GPU compute capacity loss [5] - CoreWeave has been recognized as the best AI cloud platform, surpassing competitors like Amazon and Microsoft [6] - The stock is valued at 15 times sales, with projected revenue growth of 127% annually through 2026 [6] Arm Holdings Overview - Arm designs CPUs and licenses its technology, holding a 99% market share in smartphone processors [7][8] - The company has gained over 10 percentage points of market share in data centers in the last three years, with a significant increase in enterprises running AI workloads on Arm architecture [10] - Earnings for Arm are expected to grow at 45% annually through March 2027, with a current valuation of 110 times earnings [11]