Trump's Tariffs Were Built to Close the Trade Gap. The AI Buildout Is Keeping It Open
The July goods gap widened to $118.8B as capital goods imports hit a record $140.1B and Korean chip shipments to the US surged 68.7%
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Micron stock fell 4% premarket as tech pulled back. Shares hold long-term gains despite short-term pressure ahead of Sept earnings.
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The July goods gap widened to $118.8B as capital goods imports hit a record $140.1B and Korean chip shipments to the US surged 68.7%
Read original at benzingaMicron Technology stock declined on Thursday amid profit-taking, Nvidia's margin disclosures, and potential U.S. chip tariffs.
Read original at benzingaIf Nvidia were to reach that level from its current price of around $226, its market capitalization would climb to about $12.5 trillion.
Read original at benzingaNvidia AI buildout is expensive. Memory prices will drive gross margins to 71%–72% in Q4, the first major margin decline of the AI cycle.
Read original at benzingaNvidia delivered extraordinary Q2 results with 106% YoY revenue growth to $96.2B, 75% gross margins, and $59.7B net income. The company is compared to historical capital-goods suppliers during major investment booms. Unlike the dot-com era's dark fiber overbuild, AI infrastructure appears economically justified with high utilization rates and profitability. At 23.5x forward earnings with a Zacks Rank #2 (Buy), NVDA stock appears attractively valued despite risks from concentrated customer base and massive financing requirements.
Read original at zacks-investment-researchNvidia surged 7% after delivering blockbuster Q2 earnings with $96.22B revenue (106% YoY growth) and raising FY28 guidance to ~70% growth. The Vera Rubin platform is ramping ahead of schedule with orders from all major hyperscalers. However, gross margins are expected to compress from 75% to 71-72% due to rising memory costs, and the company's massive capital commitments warrant monitoring.
Read original at zacks-investment-research