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Trade Wars
Nvidia Profits Soar, Countering Investor Jitters on AI Boom
Nvidia, the world’s most-valuable publicly-listed company, reported record sales and strong guidance Wednesday, helping soothe jitters about an artificial intelligence bubble that have been reverberating in markets for the last week. Sales in the October quarter hit a record $57 billion as demand for the company’s advanced AI data center chips continued to surge, up 62% from the year-earlier quarter and exceeding consensus estimates from analysts polled by FactSet. The company increased its guidance for the current quarter, estimating that sales will reach $65 billion – analysts had predicted revenue of $62.1 billion for the quarter. Earnings per share were $1.30 adjusted vs. $1.25 estimated and revenue was $57.01 billion vs. $54.92 billion estimated. Nvidia said it expects about $65 billion in sales in the current quarter, versus $61.66 billion expected by analysts.
Nvidia said it had $51.2 billion in data center sales, easily surpassing analyst expectations for $49.09 billion in sales during the quarter, a 66% rise on a year-over-year basis. Of that, $43 billion in revenue was for “compute,” or the company’s GPUs. Networking, or parts that allow scores of GPUs to work as one computer, accounted for $8.2 billion in data center sales.
Read more at The WSJ
Mortgage Rates Hit Highest Level In A Month, Pushing Loan Demand Down 5%
Mortgage rates rose for the third consecutive week, causing demand from both current homeowners and potential homebuyers to drop. Total mortgage application volume fell 5.2% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $806,500 or less, increased last week to 6.37% from 6.34%, with points remaining unchanged at 0.62, including the origination fee, for loans with a 20% down payment. That is the highest level in four weeks.
Applications to refinance a home loan, which are most sensitive to short-term moves in rates, fell 7% for the week but were still 125% higher than the same week one year ago. Last year at this time, mortgage rates were about a half a percentage point higher, and refinance volume was unusually low. Applications for a mortgage to purchase a home fell 2% for the week and were 26% higher than the same week one year ago.
Read more at CNBC
Third Quarter Retail Results a Mixed (Shopping) Bag
Target posted a drop in quarterly sales and lowered its full-year profit guidance on Wednesday as the big-box retailer saw choppy spending and shoppers hunting for value. Despite its ongoing struggles, Target stuck by its sales guidance for the all-important holiday season, saying it expects sales to decline by a low single-digit percentage in the fourth quarter. It said it expects adjusted earnings per share for the year to come in between $7 and $8, lowering the high end of its previous range of $7 to $9. Much of its new range would come in lower than last year, when adjusted earnings per share were $8.86. - CNBC
The TJX Companies, Inc. revised earnings guidance up for the full year Fiscal 2026. For the full year fiscal 2026, the company is now expecting its consolidated comparable sales to be up 4%. The Company is increasing its pretax profit margin outlook to 11.6%, up 0.1 percentage point versus the prior year’s 11.5%. The company is also raising its diluted earnings per share outlook to be in the range of $4.63 to $4.66, which would represent a 9% increase over the prior year. CNBC
Lowe’s on Wednesday posted a year-over-year sales increase for the quarter, but the company lowered its full-year profit outlook slightly to reflect a tougher economic backdrop. The home improvement retailer now expects full-year total sales to be $86 billion, up from its previous expectations of $84.5 to $85.5 billion, because of a recent acquisition. However, it said it expects comparable sales, an industry metric that takes out one-time factors, to be flat compared to a year ago compared with the prior range it had shared of flat to up 1%. For the full year, it now expects adjusted earnings per share of approximately $12.25, on the lower side of its previous range of $12.20 to $12.45. - CNBC
GlobalFoundries, onsemi, Among Chipmakers Looking To Support Physical AI, Automotive Advancements
As robotics and artificial intelligence continue to advance, companies are clamoring for chips to support their research and development. U.S.-based chipmakers GlobalFoundries, Onsemi and Diodes reported third quarter earnings that showed increased demand for their products to support physical AI and data center expansion as well as advancements in automobiles. Tariffs, meanwhile, are forcing many across the industry to retool their operational footprints to mitigate disruptions and higher trade costs.
“We believe the ongoing data center AI build-out is merely a prelude to the next step of the AI revolution: real-world applications in the physical space,” GlobalFoundries CEO Timothy Breen said on an earnings call Nov. 12. “We believe the ongoing data center AI build-out is merely a prelude to the next step of the AI revolution: real-world applications in the physical space,” GlobalFoundries CEO Timothy Breen said on an earnings call Nov. 12. Malta, New York-based GlobalFoundries reported total Q3 revenue of nearly $1.7 billion, a 3% decline from last year. Net income surged to $249 million for the period, up 40% YoY.
Onsemi, a maker of sensors, microcontrollers and other semiconductor products, saw revenue for the automotive end-market increase to $787 million, up 7% from the previous quarter. This was driven by growth in Onsemi’s Americas, China and Japan regions, EVP Thad Trent said on an earnings call Nov. 3. Revenue for industrial and AI data center markets also increased sequentially. Scottsdale, Arizona-based Onsemi has front-end and back-end manufacturing sites worldwide, including China, Canada and the Philippines, according to its latest annual report. In the U.S., the company has wafer fabs in New York, Oregon, Pennsylvania, Idaho and New Hampshire.
Read more at Manfuacturing Dive
GE Appliances Is Using New Tech To Fuel A ‘Zero Distance’ Supply Chain
GE Appliances is betting big on reshoring and automation technology to power a more resilient supply chain. The company, which manufactures household appliances such as refrigerators and washing machines, has been scaling stateside production over the last decade, investing $3.5 billion in its operations throughout the country since 2016, with plans to spend another $3 billion in the next five years. The investments support the company’s vision — what VP of Supply Chain Bill Good calls a “zero distance mentality” for the supply chain. Here are three ways the company is currently using automation and other technologies within its plants
1. Improving production efficiency - GE Appliances has fully automated the process by which it builds many of the components for appliances, such as ovens, refrigerators and washers. For example, when constructing a refrigerator, the company employs a highly automated process to shape coiled steel into the outer case and doors of the product.
2. Boosting end-to-end visibility - Over the last 10 years, GE Appliances has established a “digital thread” throughout its manufacturing systems, according to Good.
3. Speeding up material movement - In pursuit of more efficient operations, GE Appliances is also reducing logistical roadblocks, both within and between its facilities.
Read more at Manfuacturing Dive
BAE, Boeing And Saab Team Up On T-7A Red Hawk Trainer Bid For RAF
Saab, Boeing, and BAE Systems have signed a Letter of Intent (LoI) to collaborate on the United Kingdom’s next fast-jet trainer, proposing a version of the T-7 Red Hawk as the core of a new training system for the Royal Air Force (RAF). Saab’s head of aeronautics, Lars Tossman, said the partnership builds on the strong Boeing-Saab cooperation that delivered the T-7 and argued that the aircraft would be a “worthy successor to the Hawk.”
Under the agreement, BAE Systems will lead the industrial activity as prime contractor, with a UK-based final assembly line and expanded domestic supply chain. The partnership is intended not only to meet the UK Ministry of Defence’s Advanced Jet Trainer requirement but also to position the solution for future international pilot training opportunities.
Read more at Aerotime
Dubai Air Show: FlyDubai Orders 75 Boeing 737 MAX Aircraft In Deal Worth $13 Billion As Emirates Buys Airbus A350s
FlyDubai, the lower-cost sister carrier of Emirates, said Wednesday it ordered 75 additional Boeing 737 MAX aircraft in a deal worth $13 billion. Emirates meanwhile bought eight Airbus A350-900 aircraft at a list price of $3.4 billion. The announcements came after FlyDubai earlier at the Dubai Air Show made a major Airbus A321neo purchase of 150 aircraft for $24 billion. Since its first flight in 2009, FlyDubai had only flown Boeing 737s, making the sale a major win for the European consortium at the biennial air show.
Emirates’ purchase of the A350s comes as airline has just started flying the plane, adding it to its fleet of double-decker Airbus A380s and Boeing 777s. Emirates earlier this week purchased 65 Boeing 777-9s with list price of $38 billion at the air show. Emirates’ purchase of the A350s comes as the airline has just started flying the plane, adding it to its fleet of double-decker Airbus A380s and Boeing 777s. Emirates earlier this week purchased 65 Boeing 777-9s with list price of $38 billion at the air show.
Read more at The Hill
Amazon’s Robotaxi Unit Launches In San Francisco Without Steering Wheels—Or Fees
Zoox, Amazon’s self-driving tech company, has begun offering rides to the public in its purpose-built robotaxis in San Francisco, following a similar launch in Las Vegas. For now, rides in the electric microvan, which has no steering, mirrors or pedals, are free, but commercial service will start next year if Zoox wins the first federal waiver to operate such vehicles. U.S. auto safety rules require carmakers to install standard controls, as well as windshields and wipers, on human-driven vehicles, but AI-driven cars and trucks don’t need them. Zoox already has permission from the National Highway Traffic Safety Administration to test its vehicle – which looks like a small transit train car – on public roads and give free rides. A so-called Part 555 exemption will allow it to someday operate thousands of them in a commercial fleet, cofounder and CTO Jesse Levinson told Forbes.
With Waymo quickly expanding its robotaxi service to more cities, Elon Musk claiming Tesla is close to doing the same and Uber, Volkswagen, Rivian, Nuro, Lucid, Mobileye and other companies racing to the market, federal and state regulators are hard-pressed to keep up. If it wins approval, Zoox’s robotaxi will be a step beyond what industry leader Waymo has accomplished, though it will likely be followed quickly by multiple competitors.
Read more at Forbes
Abu Dhabi Airports and Skyports Confirm Vertiport Plans
Abu Dhabi Airports is teaming with Skyports to develop a network of vertiports to support eVTOL aircraft operations. The companies announced their partnership last week, confirming that they have already started construction at Zayed International Airport (OMAA) and Al Bateen Executive Airport (OMAD) and expect to have these facilities ready in the first quarter of 2026. Last year, the Abu Dhabi government gave its blessing for eVTOL air taxi services to be launched by rival manufacturers Archer and Joby. Earlier this month, local charter operator Falcon Aviation Services announced an order for 50 of AutoFlight’s V2000EM eVTOL models, including 35 passenger and 15 cargo versions.
Once construction is complete, Skyports and Abu Dhabi Airports intend to jointly operate the vertiports, with services including passenger handling, security, cargo operations, and supporting commercial operators. The agreement did not state where other vertiports might be located in the emirate. Other sites owned by Abu Dhabi Airports include Al Ain International Airport (OMAL), Dalma Airport (OMDL), and Sir Bani Yas Airport (OMBY).
Read more at Aviation News
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