Member Briefing August 28, 2025
Nvidia Beats On Top And Bottom Lines As Data Center Revenue Surges 56%
Nvidia reported better-than-expected earnings and revenue on Wednesday, and said sales growth this quarter will remain above 50%, signaling to Wall Street that demand for artificial intelligence infrastructure shows no sign of fading. The company said it expects revenue this quarter to be $54 billion, plus or minus 2%, though that number does not assume any H20 shipments to China. Analysts were expecting revenue of $53.1 billion, according to LSEG. Net income increased 59% to $26.42 billion, or $1.05 per diluted share, from $16.6 billion, or 67 cents per share, in the year-ago period.
Nvidia’s business is driven by its data center business, in which it sells chips called graphics processors and complimentary products for connecting and using them in large quantities. Revenue in the division rose 56% from the year-ago period to $41.1 billion. Large cloud providers make up about half of Nvidia’s data center business, the company said in the previous quarter. Those customers are currently buying Blackwell chips, the company’s latest generation, and Nvidia said that Blackwell sales had rose 17% from the first quarter. Nvidia said in May that its new product line reached $27 billion in sales, accounting for about 70% of data center revenue.
Tax Law Could Boost Cash Flow For Manufacturers With Deductions And More
A new tax law, signed on July 4, has many implications for manufacturers beyond locking in a 21% corporate tax rate. Now, companies are sorting through major changes that could allow them to write off investments in equipment, factories, R&D and more. Several of the law’s clauses are set to result in major cash flow benefits for the industry. However, the uncertainty brought on by the tariff landscape — as well as the untested nature of certain tax code changes — makes its full benefits unclear. For now, tax experts say there’s still plenty of reason for optimism.
This is especially true for manufacturers that buy a lot of expensive equipment, said Kevin Boeving, partner accounting firm Armanino. “When you think about somebody that’s buying $1, $5, or $10 million worth of equipment every year, the ability to write that off immediately versus over 10 years is a huge advantage from a cash flow perspective,” said Boeving, whose firm works with manufacturing clients, among others. Other provisions that could boost cash flow include deductions for domestic research and development, which small businesses can apply retroactively to tax years after Dec. 31, 2021; a 20% tax rate for pass-throughs (or a business where profits “pass-through” to the owners and are taxed on personal tax returns) that was set to expire in 2025; and expanded interest deductibility limits. All three provisions are now permanent, according to Boeving.
Read more at Manufacturing Dive
JLL's Global Bid Intensity Index Stabilizes Despite Market Uncertainty.
Despite ongoing market uncertainty, JLL's Global Bid Intensity Index indicates that investor capital deployment in commercial real estate is stabilizing and growing in depth. The index, which analyzes proprietary bid data across three sub-indices, provides a real-time view of liquidity and competitiveness in private real estate capital markets. After a pullback in commercial real estate activity earlier this year due to broad economic uncertainty, there are new signs that activity is on the move again. The index measures bidding activity in order to give a real-time view of liquidity and competitiveness in private real estate capital markets. That, in turn, is an indicator for future capital flows across investment sales transactions. It is composed of three sub-indices:
- Bid-Ask Spread: Final winning bid vs. the asking price
- Bids per Deal: Average number of bids per deal
- Bid Variability: Pricing variability of final bids
The stabilization in bidding dynamics comes as property sector performance fundamentals are holding up and asset valuations have generally held firm so far this year, despite weaker investor sentiment, according to the report.
Global Headlines
Middle East
- Israel Asks Global Hunger Monitor To Retract Report Of Famine In Gaza – Reuters
- Israel Intensifies Gaza City Operations As White House Sets Meeting On Post-War Plans – France 24
- Europeans Likely To Initiate UN Sanctions Process On Iran On Thursday, Sources Say - Reuters
- Iran Eyes More Firepower As War Tensions Rise - Newsweek
- Pope Leo Calls For Ceasefire, Hostages' Release In Israel-Hamas Conflict - Reuters
- Israeli Strikes Near Syria's Capital Kill At Least Three Soldiers – France 24
- Interactive Map- Israel’s Operation In Gaza – Institute For The Study Of War
- Map – Conflicts in the Middle East – Live Universal Awareness Map
Ukraine
- Russia Slashes 2025 Economic Growth Forecast To 1.5% From 2.5% – Reuters
- Russia Gripped by Gas Shortages After Ukraine Strikes - Newsweek
- US And Russian Officials Discussed Energy Deals Alongside Latest Ukraine Peace Talks - WSJ
- 62% Of Americans Support Sanctions On Russia's Trading Allies, Reuters/Ipsos Poll Finds - Reuters
- More Than 100,000 Ukrainian Homes Lose Power After Russia Targets Energy Sites – France 24
- European Heavyweights Come Out In Force To Urge Moldovans To Snub Putin - Politico
- Interactive Map: Assessed Control Of Terrain In Ukraine – Institute For The Study Of War
- Map – Tracking Russia’s Invasion Of Ukraine – Live Universal Awareness Map
Other Headlines
- Macron Gives 'Full Support' To Embattled PM Bayrou As Confidence Vote Looms – France 24
- Majority Of French Want New Elections If Government Falls, Polls Show - Reuters
- Mexico’s Cartels Are Exporting Their Bloody Rivalry to Ecuador and Beyond – WSJ
- Pakistan Blows Up Dam Embankment As It Braces For Flood Surge – France 24
- A Surprise US Navy Surge In The Caribbean - Is The Goal Mere Theatre Or Venezuelan Regime Change? – The Economist
- Panama Canal Plans Sale of New Ports to Bring in Competition Ahead of BlackRock Deal - WSJ
- India Releases Own 'Golden Dome' Missile Plan - Newsweek
- Chinese Spies Hit More Than 80 Countries in ‘Salt Typhoon’ Breach, FBI Reveals - WSJ
- Denmark Summons Top US Diplomat Over Alleged Greenland Influence Operation – BBC
Policy and Politics
The White House Is Signaling A Major Overhaul Of U.S. Immigration Policy, Targeting Both Green Card Applications And H-1B Visas
Commerce Secretary Howard Lutnick said on Fox News that the current green card process admits too many lower-earning immigrants, noting that many holders earn less on average than U.S. citizens. Green cards, which grant permanent residency, are often awarded based on family ties, employer sponsorship, or lottery systems. Critics have argued that this method does not prioritize applicants who could contribute most to the U.S. economy.
President Donald Trump's administration could push toward a more merit-based system as it looks to reform immigration policy, prioritizing higher-earning and skilled applicants over the current lottery and family-based pathways.
Ulster County State Assemblymember Holding Town Halls On Potential Creation Of Public Utility Company To Replace Central Hudson
A Hudson Valley state assemblymember is holding town halls on the potential creation of a public utility company to replace Central Hudson in an effort to lower rising utility costs. The Assemblymember, Sarahana Shrestha, joined Capital Tonight on Tuesday to explain. The Council of Industry in one of many labor and business organizations opposed the plan.
In response, Central Hudson sent a statement to Spectrum News 1, saying: "After reviewing Ms. Shrestha’s presentation, it is clear that a government takeover of Central Hudson will not result in lower rates for customers, but added costs and poorer service. Similarly, there is no explanation for how school districts, towns and villages will fill the void if the $60 million in taxes that Central Hudson pays each year disappears. Politicians like Ms. Shrestha need to take accountability for the laws they enact that drive energy costs higher. We look forward to continuing to work with elected officials on ways to solve the challenges customers face with affordability while we continue to provide reliable electric and natural gas service."
Read the more at NY State of Politics
Binghamton Cracks List of Forbes’ Top 25 Public College. Nearly a Third are in California.
As public universities brace for the impact of slashed research funding and future enrollment declines, they’re still doing the bulk of the work of educating America’s students, and doing it at a lower price than their private counterparts. Last spring, 5.3 million students were studying for their bachelor’s degrees at four-year public colleges, more than twice the 2.4 million studying for a bachelor’s at private, nonprofit colleges, the National Student Clearinghouse Research Center estimates.
During the 2024-25 academic year, state public universities charged an average sticker price of $11,610 in tuition and fees for in-state undergraduates and $30,780 for out-of-staters, compared with the $43,350 tuition and fees sticker price at private nonprofits, according to data from the College Board. After grant aid, food, dorms and the rest are taken into account, in-state public college undergraduates had an average net cost of attendance of $20,780, compared to an average net cost of $36,150 at private not-for-profit colleges. (Keep in mind, however, that in some cases, depending on family income and the wealth and generosity of an institution, a private college can end up being cheaper.
Political Headlines
- Fed Responds To Trump Effort To Fire Lisa Cook, Notes President Needs ‘Cause’ - CNBC
- US Not Eyeing Stake In Nvidia, Treasury Secretary Bessent Says – Yahoo Finance
- Lewandowski’s Veto Power Over DHS Contracts Frustrates Admin Officials: ‘Corey Is Part Of The Problem’ - Politico
- The Once-Feared House Freedom Caucus Falls in Line Under Trump - WSJ
- Donald Trump Defends Chinese Student Numbers Amid MAGA Uproar - Newsweek
- Just 38% Of Americans Support Trump's Use Of Troops To Police DC, Reuters/Ipsos Poll Finds - Reuters
- Key Takeaways From Tuesday’s Special Elections In Iowa And Georgia – The Hill
- FEMA Employees Placed On Leave After Criticizing The Trump Administration In Open Letter - CNBC
- Trump Tracker: Keep Tabs On The Latest Announcements And Executive Orders - WSJ
Health and Wellness
Pig Lung Transplanted Into a Human in Major Scientific First
For the first time ever documented, a pig lung was transplanted into a human, scientists in China announced on Monday in a study published in Nature Medicine. The transfer, which took place in May, 2024 in Guangzhou, was short-lived—the patient was brain-dead and the immune response was only monitored for nine days. Scientists told National Geographic they stopped the experiment once “our main scientific goals were achieved”—assessing the patient for uncontrolled infection and organ rejection. The study marks another critical milestone for xenotransplanation, or the practice of exchanging organs between species, and comes on the heels of recent transplants of pig kidneys and hearts into human patients.
Outside experts say that the study, while not especially surprising in its results, is a crucial step for pig-to-human transplants. “If we establish safety and efficacy … this could be a paradigm shift long-term,” says Ankit Bharat, chief of thoracic surgery at Northwestern Medicine. Hospitals and biotech firms across the country are already running clinical trials transplanting other organs from genetically modified pigs into humans, including hearts, livers and kidneys. Scientists transplanted the first modified pig kidney into a living human patient last year.
Industry News
Trade Wars
- India’s $434 Billion Merchandise Exports Engine: What’s At Stake As Trump’s 50% Tariffs Kick In - CNBC
- Trump’s Punishing 50% Tariffs On Indian Exports Come Into Effect – France 24
- EU Faces First Test Of Fragile Trade Truce With Trump - Politico
- Even A 15% Tariff Rate For Autos Means New Car Prices Could Rise About 8.1%, Or $4,300: Report – Yahoo Finance
- Trump’s Tariff Tidal Wave Could Drown This Coconut Water Juggernaut - Forbes
- South Korea’s Hyundai Motor Increases U.S. Investment to $26 Billion - WSJ
- India’s Russian Oil Gains Wiped Out By Trump’s Tariffs - Reuters
- The Cost of Tariffs, From Switzerland to Sri Lanka – The Dispatch
Hyundai Boosts US Investments To $26B Through 2028
Hyundai Motor Group has increased to $26 billion its investment commitment in the U.S. from 2025 to 2028 to boost vehicle production capacity, fund construction of a steel plant in Louisiana and build a new robotics facility, the company announced in a press release. The new commitment is $5 billion more than the $21 billion the automaker announced in March and will expand Hyundai’s domestic supply chains in response to “American market demand,” per the release.
The massive investment is expected to create 25,000 direct job opportunities by 2028 and will also help the automaker avoid U.S. import tariffs by increasing domestic manufacturing. With increased production capacity, Hyundai and its sister company Kia can better meet the evolving needs of American consumers “with greater speed and efficiency”, according to the release. Hyundai and Kia currently operate three U.S. production facilities: Hyundai Motor Manufacturing Alabama, which was established in 2005; the new Metaplant America electric vehicle factory in Georgia, which began production in late 2024; and the Kia Georgia plant, which began producing vehicles in 2009.
Pentagon Considers Stakes In Defense Contractors
Top officials at the Pentagon are “thinking about” whether the U.S. should acquire equity stakes in leading defense contractors such as Lockheed Martin, Commerce Secretary Howard Lutnick said Tuesday. The Cabinet secretary, in an interview on CNBC’s “Squawk Box,” revealed the Defense Department’s interest in taking those stakes days after the U.S. government acquired 10% of Intel stock in a roughly $9 billion deal. Lutnick was asked if the Trump administration would repeat that move with other companies that do business with the government. “Oh there’s a monstrous discussion about defense,” Lutnick replied.
A Lockheed spokesperson told CNBC in a statement, “As we did in his first term, we are continuing our strong working relationship with President Trump and his Administration to strengthen our national defense.” The Pentagon did not immediately respond to CNBC’s request for comment. Lockheed is the world’s top defense company by revenue, according to DefenseNews’ 2024 list. Other top U.S. contractors include RTX, Northrop Grumman, General Dynamics and Boeing. Trump’s move to take ownership of a chunk of Intel, an embattled chipmaker, is a major escalation in his efforts to achieve his economic goals by exerting more and more government control over the private economy.
Retail Earnings
Kohl’s second-quarter earnings and revenue expectations, even as its sales declined and it looks for a new CEO. The Wisconsin-based department store narrowed its full-year sales guidance to reflect the higher part of its previous range. It said it now expects net sales to decline by between 5% and 6%. It had previously anticipated sales would fall 5% to 7%. It also revised its full-year earnings per share guidance. Kohl’s said it expects earnings to be in the range of 50 cents to 80 cents per share adjusted. It was unclear how that compared to a previous outlook of 10 cents to 60 cents per share, which was not adjusted. Earnings per share were 56 cents adjusted vs. 29 cents expected and revenue was $3.35 billion vs. $3.32 billion expected. Kohl’s second-quarter net income was $153 million, or $1.35 per share, compared to $66 million, or 59 cents per share, in the year-ago period. Net sales dropped from $3.53 billion in the year-ago quarter. CNBC
Abercrombie & Fitch sales growth slowed again in its fiscal second quarter as the apparel company struggles to top the surge it enjoyed last fiscal year. The company’s reported net income for the three-month period that ended August 2 was $141 million, or $2.91 per share, compared with $133 million, or $2.50 a share, a year earlier. Excluding the impact of a favorable litigation settlement, Abercrombie saw earnings of $2.32 per share. Abercrombie’s also gave a better-than-expected sales outlook. It anticipates revenue will rise between 5% and 7%, beating expectations of 4.3% growth, according to LSEG. Meanwhile, its profit outlook for the fiscal third quarter is weaker than expected. The company anticipates earnings per share will be between $2.05 and $2.25, far below expectations of $2.53, according to LSEG. CNBC
SpaceX Makes Comeback With Starship Test Launch After Fiery Setbacks
SpaceX on Tuesday launched its mammoth Starship rocket, breaking a string of explosive failed attempts earlier this year to deploy its first batch of dummy Starlink satellites and notch key developmental milestones. The more-than 400-feet rocket, critical for SpaceX’s commercial dominance and NASA’s ambitions to return astronauts to the Moon, took off from the company’s Starbase facilities at 6:30 p.m. local time in Texas for a roughly one-hour nail-biting flight.
Throughout the test flight — the rocket’s 10th — it made its first successful payload deployment of eight mock Starlink satellites, relit its Raptor engine in orbit and stress trialed its heat shield. The latter performance is of particular note for tech billionaire Elon Musk, who is hoping to deliver reusable heat shields. Typically, rocket heat shields require extensive and costly refurbishment or wholesale replacement after flights.
These AI-Skilled 20-Somethings Are Making Hundreds of Thousands a Year
The job market for entry-level workers is in a continued slump. The unemployment rate for new college graduates was 4.8% in June, according to the Federal Reserve Bank of New York, compared with 4% for all workers. While AI is part of the reason for the doldrums, there is a bright spot when it comes to workers with actual experience in machine learning. They’re in their early 20s, they have AI know-how, and a bunch of them are making $1 million a year. Base salaries for nonmanagerial workers in AI with zero to three years experience grew by around 12% from 2024 to 2025, the largest gain of any experience group, according to a new report by the AI staffing firm Burtch Works, which analyzed the compensation of thousands of AI and data-science candidates.
The report also found that people with AI experience are being promoted to management roles roughly twice as fast as their counterparts in other technology fields. They’re jumping the ladder as a result of their skills and impact instead of their years on the job. “There is a significant salary difference between a machine-learning engineer job and a software-engineer job,” says Anil K. Gupta, a professor at the University of Maryland’s Robert H. Smith School of Business and co-lead of its AI job tracker.
L3Harris Expands Florida Facility To Support America’s Golden Dome
L3Harris Technologies has completed a $100 million expansion at its satellite integration and test facility in Palm Bay to support the Department of Defense’s (DoD) urgent need for on-orbit technology for the Golden Dome for America—L3Harris’ new investment in Florida adds to the existing capability of the Space Coast and will enable key components for this strategic capability to be delivered during President Trump’s second term. L3Harris currently provides crucial missile warning and missile defense capabilities with five satellites on—orbit and 34 satellites being developed for hypersonic missile tracking in support of the DoD’s current missile warning and missile defense architecture.
L3Harris has invested hundreds of millions of dollars in infrastructure and manufacturing processes across the United States to deliver national defense capabilities at the pace and scale required. L3Harris’ investments translate to more than 900,000 square feet of new and renovated advanced manufacturing space nationwide to support the production of space-based missile warning and defense technologies, precision fire-control sensing, targets, and propulsion and control systems for interceptors.
GM CFO Previews the Looming End of ‘Irrational Behavior’ in the EV Market
Electric vehicles’ share of the total automotive sales market climbed to more than 9% this month, analysts at Cox Automotive said Aug. 15. Total sales, the firm said, climbed almost 20% year over year to a little more than 130,000, the second-highest figure on record. Similarly, dealer software and data company StoneEagle said leases of EVs jumped in July from the month before, accounting for nearly 20% of all leases. Alas, those are almost certainly sugar-high numbers.
The EV market is preparing for big regulatory changes. The One Big Beautiful Bill Act will end federal tax credits of $7,500 for new EVs and $4,500 for used EVs on Sept. 30. The looming end of those credits has created a rush to buy among consumers and a big dose of uncertainty about what comes after for manufacturers. Paul Jacobson, CFO of General Motors Corp., said at the recent J.P. Morgan 2025 Auto Conference that the economics of building and selling EVs are set to change rather drastically—and that’s before other potential changes might take effect. Jacobson discussed those dynamics as part of a broader conversation with analyst Ryan Brinkman. Here, lightly edited for clarity and brevity, is the portion of their chat that focused on the latest evolution of emissions regulations and the EV market—and how they’re likely to boost GM’s bottom line.
Sustainable Packaging - Genera Invests $340M To Expand Manufacturing Facility In Tennessee
Genera has expanded its sustainable packaging manufacturing facility in Vonore, Tennessee. The company, which produces molded fiber packaging from renewable grasses, invested more than $340 million in the expansion and created over 200 new jobs in Monroe County. The facility now has the capacity to produce more than 30,000 tons of molded fiber packaging annually—equivalent to over 2 billion units—serving the needs of food manufacturing, food service, retail, and consumer packaged goods companies.
With fully integrated and automated U.S. operations, the plant allows brand owners to move away from single-use plastics while securing supply from a domestic, transparent source. Genera’s packaging is made from locally grown regenerative grasses and is certified compostable and recyclable. The expanded operation also supports the production of additional bioproducts, such as wet lap market pulp and a new industrial material designed to replace or enhance conventional products and chemicals.