We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
NVIDIA (NVDA) Taps Southeast Asia Amid China Sales Restriction
Read MoreHide Full Article
NVIDIA Corporation (NVDA - Free Report) is focusing on deepening its business relationship with Southeast Asian nations amid growing tensions between the United States and China, as evident from some recent events. Over the past week, the co-founder and CEO of the U.S.-based semiconductor company, Jensen Huang, has visited three Southeast Asian countries, namely Singapore, Malaysia and Vietnam.
During his visit to these nations, Huang stated that Southeast Asia could be a very important technology location. Considering the region’s expertise in packaging, assembling and battery manufacturing, he believes that it can play a major role in the semiconductor supply chain.
NVIDIA signed an artificial intelligence (AI) infrastructure deal with the Malaysian conglomerate YTL’s subsidiary, YTL Power International, during his trip to Malaysia. Per the agreement, the two companies will work together on building AI capabilities at YTL’s data center complex in Kulai, Johor. The first phase of the project is anticipated to be operational starting mid-2024. The deal is expected to be worth $4.3 billion.
In Vietnam, NVIDIA’s CEO has shown interest in deepening business ties with Vietnamese top tech firms and is also looking forward to setting a second base for the company in the country. Huang also intends to support Vietnam in training the workforce to develop AI and digital infrastructure.
The company has already invested $250 million in Vietnam through partnering with the country’s top tech companies. These collaborations focus on deploying AI across multiple industries, including cloud services, healthcare and automotive.
NVIDIA Looks Toward Diversifying Its Market Presence
The U.S. chipmaker has been caught in the crossfire of the U.S.-China tech war. Over the past year, the U.S. government has restricted NVIDIA from selling its several advanced AI chips to China in a bid to restrict the country from getting hands-on cutting-edge technologies that can strengthen its military.
NVIDIA had earlier stated that it may be forced to discontinue its business operations from countries on the U.S. government’s export restriction list. The rules are expected to impact NVDA’s ability to support its existing customers and complete the development of certain products in a timely manner. In third-quarter fiscal 2024, the company had generated 22% of its total revenues from China (including Hong Kong).
Considering the growing risk of doing business in China amid the tech war, the company is looking to expand its market presence. In this regard, the latest investments in Southeast Asian nations could be seen as its long-term strategic move to diversify its supply chain as well as market presence.
In third-quarter fiscal 2024, Singapore, a Southeast Asian nation, generated $2.7 billion in revenues, contributing approximately 15% to NVIDIA’s total sales in the quarter. This marked a robust five-fold year-over-year growth, mainly driven by surging AI investments across the data center end-market.
We believe that NVIDIA, with its latest investments, is seems to looking for such growth from other Southeast Asian countries.
Investment in GenAI to Drive Growth
NVIDIA dominates the market for AI chips. The meteoric rise of OpenAI’s ChatGPT and its adoption among enterprises have already proven generative AI technology’s usefulness across multiple industries, including marketing, advertising, customer service, education, content creation, healthcare, automotive, energy & utilities and video game development. The growing demand to modernize the workflow across industries is expected to drive the demand for generative AI applications.
However, generative AI requires vast knowledge to create content and needs huge computational power. As a result, enterprises looking to create generative AI-based applications will be required to upgrade their existing network infrastructure.
NVIDIA’s next-generation chips with high computing power can be the top choice for enterprises. The company’s GPUs are already being applied in AI models. This is expanding NVDA’s footprint in untapped markets like automotive, healthcare and manufacturing.
The generative AI revolution is likely to create huge demand for its next-generation high computing powerful chips. Considering surging AI investments across the data center end-market, NVIDIA expects its fourth-quarter fiscal 2024 revenues to reach $20 billion from $6.05 billion in the year-ago quarter.
Shares of NVDA have surged 219% year to date (YTD).
The Zacks Consensus Estimate for Intel’s fourth-quarter 2023 earnings has moved up a penny to 44 cents per share in the past 30 days. The consensus estimate for 2023 earnings has increased 2 cents to 95 cents in the past 30 days.
Intel's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 136.3%. Shares of INTC have risen 68.5% YTD.
The Zacks Consensus Estimate for Aspen's second-quarter fiscal 2024 earnings has moved north 14 cents to $1.49 per share in the past 60 days. The consensus estimate for fiscal 2024 earnings has increased 5 cents to $6.63 per share in the past 60 days.
Aspen's earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average negative surprise of 32.3%. Shares of AZPN have lost 5.4% YTD.
The Zacks Consensus Estimate for Datadog's fourth-quarter 2023 earnings has moved north 9 cents to 43 cents per share in the past 60 days. The consensus estimate for 2023 earnings has increased 2 cents to $1.53 per share in the past 30 days.
DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Datadog’s shares have rallied 56.1% YTD.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
NVIDIA (NVDA) Taps Southeast Asia Amid China Sales Restriction
NVIDIA Corporation (NVDA - Free Report) is focusing on deepening its business relationship with Southeast Asian nations amid growing tensions between the United States and China, as evident from some recent events. Over the past week, the co-founder and CEO of the U.S.-based semiconductor company, Jensen Huang, has visited three Southeast Asian countries, namely Singapore, Malaysia and Vietnam.
During his visit to these nations, Huang stated that Southeast Asia could be a very important technology location. Considering the region’s expertise in packaging, assembling and battery manufacturing, he believes that it can play a major role in the semiconductor supply chain.
NVIDIA signed an artificial intelligence (AI) infrastructure deal with the Malaysian conglomerate YTL’s subsidiary, YTL Power International, during his trip to Malaysia. Per the agreement, the two companies will work together on building AI capabilities at YTL’s data center complex in Kulai, Johor. The first phase of the project is anticipated to be operational starting mid-2024. The deal is expected to be worth $4.3 billion.
In Vietnam, NVIDIA’s CEO has shown interest in deepening business ties with Vietnamese top tech firms and is also looking forward to setting a second base for the company in the country. Huang also intends to support Vietnam in training the workforce to develop AI and digital infrastructure.
The company has already invested $250 million in Vietnam through partnering with the country’s top tech companies. These collaborations focus on deploying AI across multiple industries, including cloud services, healthcare and automotive.
NVIDIA Corporation Price and Consensus
NVIDIA Corporation price-consensus-chart | NVIDIA Corporation Quote
NVIDIA Looks Toward Diversifying Its Market Presence
The U.S. chipmaker has been caught in the crossfire of the U.S.-China tech war. Over the past year, the U.S. government has restricted NVIDIA from selling its several advanced AI chips to China in a bid to restrict the country from getting hands-on cutting-edge technologies that can strengthen its military.
NVIDIA had earlier stated that it may be forced to discontinue its business operations from countries on the U.S. government’s export restriction list. The rules are expected to impact NVDA’s ability to support its existing customers and complete the development of certain products in a timely manner. In third-quarter fiscal 2024, the company had generated 22% of its total revenues from China (including Hong Kong).
Considering the growing risk of doing business in China amid the tech war, the company is looking to expand its market presence. In this regard, the latest investments in Southeast Asian nations could be seen as its long-term strategic move to diversify its supply chain as well as market presence.
In third-quarter fiscal 2024, Singapore, a Southeast Asian nation, generated $2.7 billion in revenues, contributing approximately 15% to NVIDIA’s total sales in the quarter. This marked a robust five-fold year-over-year growth, mainly driven by surging AI investments across the data center end-market.
We believe that NVIDIA, with its latest investments, is seems to looking for such growth from other Southeast Asian countries.
Investment in GenAI to Drive Growth
NVIDIA dominates the market for AI chips. The meteoric rise of OpenAI’s ChatGPT and its adoption among enterprises have already proven generative AI technology’s usefulness across multiple industries, including marketing, advertising, customer service, education, content creation, healthcare, automotive, energy & utilities and video game development. The growing demand to modernize the workflow across industries is expected to drive the demand for generative AI applications.
However, generative AI requires vast knowledge to create content and needs huge computational power. As a result, enterprises looking to create generative AI-based applications will be required to upgrade their existing network infrastructure.
NVIDIA’s next-generation chips with high computing power can be the top choice for enterprises. The company’s GPUs are already being applied in AI models. This is expanding NVDA’s footprint in untapped markets like automotive, healthcare and manufacturing.
The generative AI revolution is likely to create huge demand for its next-generation high computing powerful chips. Considering surging AI investments across the data center end-market, NVIDIA expects its fourth-quarter fiscal 2024 revenues to reach $20 billion from $6.05 billion in the year-ago quarter.
Shares of NVDA have surged 219% year to date (YTD).
Zacks Rank & Other Stocks to Consider
Currently, NVIDIA carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader technology sector are Intel Corporation (INTC - Free Report) , Aspen Technology, Inc. (AZPN - Free Report) and Datadog, Inc. (DDOG - Free Report) . Intel sports a Zacks Rank #1 (Strong Buy) at present, while both Aspen and Datadog carry a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Intel’s fourth-quarter 2023 earnings has moved up a penny to 44 cents per share in the past 30 days. The consensus estimate for 2023 earnings has increased 2 cents to 95 cents in the past 30 days.
Intel's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 136.3%. Shares of INTC have risen 68.5% YTD.
The Zacks Consensus Estimate for Aspen's second-quarter fiscal 2024 earnings has moved north 14 cents to $1.49 per share in the past 60 days. The consensus estimate for fiscal 2024 earnings has increased 5 cents to $6.63 per share in the past 60 days.
Aspen's earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average negative surprise of 32.3%. Shares of AZPN have lost 5.4% YTD.
The Zacks Consensus Estimate for Datadog's fourth-quarter 2023 earnings has moved north 9 cents to 43 cents per share in the past 60 days. The consensus estimate for 2023 earnings has increased 2 cents to $1.53 per share in the past 30 days.
DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Datadog’s shares have rallied 56.1% YTD.