Nvidia, the chipmaker driving the boom in artificial intelligence (AI), has seen fresh falls in its share price following an earnings report amid continued supply chain constraints.
Its third quarter trading update showed demand for its top generative AI chips would continue to outstrip supply for at least a year.
Some would argue it is a nice problem to have but those curbs on revenue have been widely blamed for Nvidia failing to smash market expectations for revenues this year, holding back its performance.
Nvidia said revenues came in at just above $35bn over the three months – above the $33bn consensus, according to LSEG data.
The company, which has topped the rankings for the most valuable listed firm several times since late spring, has enjoyed an unprecedented increase in its share price, which began in earnest during 2023.
But despite shares performing well – they are up by 190% in the year to date and nine-fold over two years – they have endured more of a rocky ride over the second half of 2024.
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That is because investors have fretted over the prospects for AI, competition to Nvidia and delays to its next generation Blackwell chips.
Nvidia values took a surprise fall despite bumper earnings figures for the first six months of its financial year and plunged further when widespread US market jitters set in at the beginning of September over the prospects for the US economy.
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Fears that tech stocks were overvalued also contributed.
Nvidia boss Jensen Huang said on Wednesday of sales: “The age of AI is in full steam, propelling a global shift to NVIDIA computing.
“Demand for Hopper and anticipation for Blackwell – in full production – are incredible as foundation model makers scale pretraining, post-training and inference,” he said of the chips.
Image: Jensen Huang is Nvidia’s chief executive. Pic: AP
Market analysts noted, ahead of the earnings update, that a positive share price reaction would depend on the revenue guidance not only being smashed but the outlook being broadened.
They also sought reassurance that Blackwell’s rollout was seen to be on track to help justify the more recent share price recovery, one that tech has seen more generally since Donald Trump’s US presidential election victory was declared.
A US federal judge has warned that he could hold the Trump administration in contempt for violating his orders to turn around planes carrying deportees to El Salvador.
US District Judge James E. Boasberg said he had found “probable cause” to hold the administration in criminal contempt and warned he could refer the matter for prosecution if it does not “purge” its contempt.
If the government doesn’t purge the contempt, charges could be brought forward by the Justice Department, NBC News reported.
And if the executive-led Justice Department refused to prosecute the matter, Judge Boasberg said he would appoint another attorney to prosecute the contempt.
Mr Boasberg said the administration could “purge contempt by returning those who were sent to El Salvador prison, in violation of his order, to the US.
This, he said, “might avail themselves of their right to challenge their removability”.
“The Constitution does not tolerate wilful disobedience of judicial orders – especially by officials of a coordinate branch who have sworn an oath to uphold it,” the judge wrote.
Executive vs judicial
This marks a notable escalation in the ongoing tensions between the judicial and executive branches of the US government during Donald Trump’s second term.
Parts of the US president’s legislative programme have been halted by judges, as the administration strains against the restraints of the separation of powers.
Mr Trump previously called for Judge Boasberg to be impeached while the Justice Department claimed he overstepped his authority – both reflecting the administration’s attempts to overcome perceived obstacles to the implementation of its agenda.
Mr Trump’s administration has also argued it did not violate any orders.
It claimed the judge didn’t include a turnaround directive in his written order and said the planes had already left the US by the time the order came down.
‘Administrative error’
At the heart of the legal wrangling is Kilmar Abrego Garcia, a man who was sent to El Salvador by the Trump administration in March despite an immigration court order preventing his deportation.
Washington acknowledged that Mr Garcia was deported due to an “administrative error”.
The US Supreme Court has called on the administration to facilitate his return, upholding a court order by Judge Paula Xinis, but Trump officials have claimed that Mr Garcia has ties to the MS-13 gang.
Image: Kilmar Abrego Garcia. Pic: CASA/AP
Mr Garcia’s lawyers have argued there is no evidence of this.
This all comes after El Salvador’s President Nayib Bukele visited the White House earlier this week.
During his time with Mr Trump, Mr Bukele said that he would not return Mr Garcia, likening it to smuggling “a terrorist into the United States.”
Image: The US and El Salvador presidents in the Oval Office.
Pic: Reuters/Kevin Lamarque
Along with Mr Garcia, the Trump administration has deported hundreds of people, mostly Venezuelans, whom it claims are gang members without presenting evidence and without a trial.
Democrat senator travels to El Salvador
Meanwhile, Democratic senator Chris Van Hollen arrived in El Salvador on Wednesday, saying he would seek a meeting with the country’s officials to secure Mr Garcia’s release.
“I just arrived in San Salvador a little while ago and look forward to meeting with the US embassy team to discuss Mr. Abrego Garcia’s release,” Mr Van Hollen said on social media.
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Body camera footage of Gene Hackman’s home has been released by authorities investigating the deaths of the actor and his wife.
The video captured by Santa Fe County Sheriff’s Office shows officers inside and outside the property in northern New Mexico, with a German shepherd barking at some points as they carry out their search.
Image: Hackman and Arakawa pictured in 2003. Pic: AP/ Mark J Terrill
The bodies of Hackman, 95, and his wife, Betsy Arakawa, 65, were found in separate rooms of their home on 26 February.
“He’s guarding her,” a male officer can be heard saying, about the dog found alive at the home. “He seems pretty friendly.”
There is another “10-7 dog” – meaning the pet is dead – “round the corner in the kennel”, the officer says.
Rat nests and dead rodents were also discovered in several outbuildings around the property, an environmental assessment by the New Mexico Department of Health revealed.
The inside of the home was clean and showed no evidence of rodent activity.
In March, a medical investigator concluded Arakawa died from hantavirus pulmonary syndrome, a rare infectious disease that can be caused by exposure to rodents.
Image: Law enforcement officials pictured outside the property in Santa Fe the day after Hackman and Arakawa’s bodies were found. Pic: AP/Roberto Rosales
According to the records now released by the county sheriff’s office, Arakawa was researching medical conditions related to COVID-19 and flu between 8 February and the morning of 12 February.
In one email to a masseuse, she said Hackman had woken on 11 February with flu or cold-like symptoms and that she wanted to reschedule an appointment “out of an abundance of caution”.
Search history on the morning of 12 February showed she was looking into a medical concierge service in Santa Fe. Investigators said there was a call to the service which lasted under two minutes, and a follow-up call from them later that afternoon was missed.
The police footage shows officers checking the home and finding no signs of forced entry or other suspicious signs.
Image: Pic: Santa Fe County Sheriff via AP
What is hantavirus?
HPS, commonly known as hantavirus disease, is a respiratory disease caused by hantaviruses – which are carried by several types of rodents.
It is a rare condition in the US, with most cases concentrated in the western states of New Mexico, Arizona, Colorado and Utah. This was the first confirmed case in New Mexico this year.
There has so far been no confirmation about any potential link by authorities between the rodents and the hantavirus disease that claimed Arakawa’s life.
Who was Gene Hackman?
Image: Pic: AP 1993
Hackman was a former Marine whose work on screen began with an uncredited TV role in 1961.
Acting became his career for many years, and he went on to play villains, heroes and antiheroes in more than 80 films spanning a range of genres.
He was best known by many for playing evil genius Lex Luthor in the Superman films in the late 1970s and ’80s, and won Oscars for his performances in The French Connection and Unforgiven.
After roles in The Royal Tenenbaums, Behind Enemy Lines and Runaway Jury in the 2000s, he left acting behind after his final film, Welcome To Mooseport.
He and Arakawa, a pianist, had been together since the mid-1980s.
Donald Trump has questioned Volodymyr Zelenskyy’s competence and suggested Ukraine started the war against Russia which is “20 times” its size.
The US president also said “millions of people are dead because of three people” – blaming Russian President Vladimir Putin, his White House predecessor Joe Biden, and Mr Zelenskyy, in that order.
It comes a day after 35 people, including two children, were killed by two Russian missiles that struck the northeastern city of Sumy as Ukrainians gathered to celebrate Palm Sunday in what was the deadliest strike on the country so far this year, according to officials.
Image: Damaged cars at the site of a Russian missile strike on Sumy. Pic: Reuters
Speaking in the White House’s Oval Office during a meeting with El Salvador’s President Nayib Bukele, Mr Trump told reporters: “If Biden were competent, and if Zelenskyy were competent, and I don’t know that he is…
“There was no way that war should never have been allowed to happen.”
He added: “Biden could have stopped it, and Zelenskyy could have stopped it, and Putin should have never started it.”
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Asked about Mr Zelenskyy, Mr Trump said: “When you start a war you’ve got to know you can win the war.
“You don’t start a war against somebody that’s 20 times your size. And then hope that people give you some missiles.”
Mr Trump said he was the first to give Ukraine Javelin missiles.
Image: Firefighters work at the site of a Russian missile strike in Sumy on Sunday. Pic: Reuters
“Millions of people are dead because of three people,” Mr Trump added.
“Let’s say Putin number one, let’s say Biden, who had no idea what the hell he was doing, number two, and Zelenskyy.
“And all I can do is try and stop it – that’s all I want to do. I want to stop the killing.
“And I think we’re doing well in that regard. I think you’ll have some very good proposals very soon.”
Mr Zelenskyy has called for a global response to the Sumy attack, in which more than 100 people were injured, saying the first strike hit university buildings while the second exploded above street level.
On Monday, Ukraine’s air force said a new Russian missile and guided bombs had targeted Sumy, but gave no indication of casualties or damage. Public broadcaster Suspilne reported an explosion in the city, with no further details.
‘It’s a horrible thing’
Asked about Sunday’s Sumy attack which is near the Russian border, Mr Trump earlier said on board Air Force One: “I think it was terrible and I was told they made a mistake, but I think it’s a horrible thing. I think the whole war is a horrible thing.”
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0:52
Russia ‘made a mistake’
When questioned about the incident, Kremlin spokesman Dmitry Peskov said Russia’s forces only strike military targets.
The strike targeted a gathering of senior military officers, according to the defence ministry in Moscow which accused Kyiv of using civilians as shields by holding military meetings in the city centre.
The ministry also claimed to have killed more than 60 troops. Russia did not provide any evidence to support its claims.
Polish foreign minister Radek Sikorski, whose country currently holds the EU’s presidency, said that recent attacks are “Russia’s mocking answer” to Kyiv’s agreement to a ceasefire proposed by the US administration over a month ago.
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2:26
Missile attack on Sumy
What’s the latest on proposed ceasefire?
The attack on Sumy followed a missile strike on 4 April on Mr Zelenskyy’s home city of Kryvyi Rih that killed some 20 people, including nine children.
Russia and Ukraine’s senior diplomats have accused each other of violating a tentative US-brokered deal to pause strikes on energy infrastructure.
Ukraine has endorsed a broader US ceasefire proposal, but Russia has effectively blocked it by imposing far-reaching conditions.
Mr Putin has said he wants Ukraine to drop its ambitions to join NATO, Russia to control the entirety of the four Ukrainian regions it has claimed as its own, and the size of the Ukrainian army to be limited. He has also made clear he wants Western sanctions eased.