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Good morning, I’m back to Firstft Asia. In today’s newsletter:
Latest Nvidia results
Chinese gadget makers take on Tesla and Apple
Indian Judicial Backlog
“Ninja Stealth Rally” promotes Japanese stocks
We start with the hot and predicted results of artificial intelligence chip maker Nvidia, released yesterday amid market uncertainty over whether momentum around AI can continue. Here’s what you need to know.
Strong Results: NVIDIA reported revenue of $46.7 billion from July 28th to July 28th, according to Visible Alpha. The company said it expects revenue for the current quarter and revenue of 2% negative, compared to its $53.8 billion forecast.
Why NVIDIA is Important: The $400 million Tech Giant’s role in designing advanced chips used to develop and execute AI models such as ChatGPT has made it the world’s most valuable group due to its market capitalization and is attractive to the AI boom. Last week, during a widespread sale in AI-related companies, the shares received negative reports about investors exaggerating their technology after they made negative reports from Openai CEO Sam Altman about practical applications and comments.
China’s outlook is uncertain: Nvidia is caught up in President Donald Trump’s trade war with Beijing. Analysts have stated Nvidia’s decision not to disappoint investors who have disappointed Chinese AI chip revenues after NVIDIA cut contracts with the Trump administration to resume sales of H20 chips designed for the Chinese market.
Deepwater Asset Management’s managing partner Gene Munster said exclusion of China means that Nvidia’s guidance is lower than expected. “The $54 billion doesn’t include H20. I was shocked that they didn’t,” he said. Please read the entire story.
China’s AI: Chinese chipmakers are looking to triple the country’s total AI processor production in order for Beijing to compete with the US next year to develop the most advanced AI.
Other AI News: Openai’s corporate restructuring could fall into the next year as ChatGpt makers negotiate key terms for their future relationship with Microsoft.
Here is the other thing we keep tabs today:
Economic Data: Japan issues trade statistics for July, while Malaysia reports producer prices for the month.
Monetary Policy: South Korea’s central bank and the Philippines announce their fee decisions.
Five more top stories
1. Yesterday, punitive US tariffs on India on discounted Russian oil purchases took effect yesterday, striking the world’s fastest-growing large economy, deepening the rift between Washington and New Delhi. The collection of 25% above the “mutual” tariffs has raised India’s duties to the highest obligation in the world.
2. Denmark has summoned the nation’s finest diplomats over reports that American citizens who are allegedly linked to President Donald Trump are running a secret influence operation in Greenland. Danish Foreign Minister Lars Rocke Rasmussen said there are “foreign actors” who are trying to influence Greenland’s future, and all such efforts are “unacceptable.”
3. As Washington struggles to counter itself against China’s military accumulation, the person responsible for strengthening the adoption of new commercial technologies by the US military is preparing to deploy staff to dozens of allies. The plan includes speeding up drone collaborations and posting staff to Japan to send representatives this year to Taiwan.
4. Mitsubishi companies have criticized the turbine costs high for retreats, which marks the setback of the country’s energy self-sufficient drive, due to the withdrawal from Japan’s three major offshore wind projects. The project was part of Japan’s push to adopt more renewable electricity, but the country’s adoption of offshore winds was more difficult than other countries. This is why.
5. Argentine President Javier Miley evacuated from yesterday’s election campaign event after a stone was thrown into his convoy amid the public’s rage over allegations of corruption in his administration. A presidential spokesman said there were no injuries and condemned attacks on extremists from Peronist opposition. Please read the entire story.
Detailed news
Xiaomi was once fired as an “assembly workshop” and overtaked its rivals to become the third largest smartphone seller in the world. The Chinese group is currently aiming to become a high-tech manufacturer, producing everything from rice cookers to robotic vacuum cleaners and the highly popular premium cars. As Apple and Tesla challenge, gadget makers inspire loyal fans who flock to the Beijing electric car factory every day, watching the production line unravel the car every 76 seconds.
We’re reading too. . .
The chart of the day
The four-month “Ninja Stealth Slurry,” which began shortly after the panic that was caused by Trump’s “liberation day” tariff announcement, has driven Tokyo’s equity market to hit highs. Japanese stocks have won as global investors diversified away from China and the US, betting that structural changes over the decade had changed the boardrooms of Japanese companies.
Take a break from the news. . .
After eight years of closure and a well-reputed $2 billion renovation, the Waldorf Astoria Hotel in New York sparkles again. The soft launch in July opened new restaurants, lobby bars and rooms, but the hotel (ballrooms, spas, etc.) officially opened on September 1st. FT architecture critic Edwin Heathcourt was the first to stay at the improved hotel. Here’s his review.
