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Oct 25 (Reuters) - Teradyne (TER.O) reported third-quarter revenue above market expectations on Wednesday, helped by resilient demand for the company's chip-testing solutions. The boom in demand for artificial intelligence chips used in data centers has helped suppliers of chip-testing products like Teradyne offset the weakness in sales of smartphones and personal computers. The company designs and develops technology to test chips and electronic equipment and sells robotic systems to customers in the manufacturing sector. One of its largest customers, Taiwan Semiconductor Manufacturing Company (2330.TW), showed optimism about the demand stabilization in the smartphone and computing markets after beating expectations for third-quarter net profit. Teradyne's net revenue for the third quarter fell around 15%, to $703.7 million, from $827.1 million a year ago, but beat analysts' expectations of $684.6 million.
Persons: Zaheer Kachwala, Pooja Desai Organizations: Taiwan Semiconductor Manufacturing Company, Qualcomm, Samsung, Thomson Locations: Bengaluru
A smartphone with a displayed Qualcomm logo is placed on a computer motherboard in this illustration taken March 6, 2023. Qualcomm executives said that the company's new Snapdragon Elite X chip will be available in laptops starting next year and has been redesigned to better handle artificial intelligence tasks like summarizing emails, writing text and generating images. Qualcomm will be the first to market with a chip to challenge Apple, whose laptop and desktop computers have more than doubled their market share since the iPhone maker introduced custom-designed chips in 2020. Qualcomm claimed on Tuesday that the X Elite is faster than Apple's M2 Max chip at some tasks and more energy efficient than both Apple and Intel (INTC.O) PC chips. Reporting by Stephen Nellis in San Francisco; Editing by Lisa ShumakerOur Standards: The Thomson Reuters Trust Principles.
Persons: Dado Ruvic, Alex Katouzian, Katouzian, Francis Sideco, You've, Sideco, Stephen Nellis, Lisa Shumaker Organizations: Qualcomm, REUTERS, Microsoft, Reuters, Nvidia, Devices, Apple, Intel, TIRIAS, Thomson Locations: San Diego , California, San Francisco
The new silicon includes Qualcomm's X Elite chip for PCs and laptops and the Snapdragon Series 8 Gen 3 for high-end Android phones. The speed at which a smartphone chip processes AI models could represent a new feature battleground between high-end Android phones from companies such as Asus, Sony and OnePlus versus Apple's iPhones, which are also getting new AI features on an annual basis. Now, Qualcomm said, its smartphone chip can handle the bigger AI models used in generative AI — as many as 10 billion parameters. That's still less than some of the biggest AI models, such as OpenAI's GPT3, which has about 175 billion parameters. Qualcomm executives said these kinds of AI models can run on devices if the chips are fast enough and equipped with enough memory.
Persons: Cristiano Amon, Steve Marcus, ChatGPT, Apple's, Alex Katouzian, Qualcomm's, Katouzian Organizations: Qualcomm, Asus, Sony, Microsoft, Snapdragon, OnePlus, Elite Locations: Las Vegas , Nevada, U.S
The company commands a dominant position in the market for chips used in AI model training. But the question that still lingers in our minds is whether that growth can be substantial enough to meet the lofty, multiyear expectations that became baked into Nvidia's stock price in recent months. Based on the Reuters report, the potential boost to revenue wouldn't arrive for more than a year, and it's unclear what Nvidia's market share would look like then. Another reason for tempered enthusiasm: The gross margins on PC CPUs are typically smaller than Nvidia's data-center chips, a market in which the company has pricing power. Bottom line Nvidia's potential foray in PC CPUs is a development that we'll continue to monitor, but it doesn't put to rest longer-term questions around China.
Persons: Jim Cramer, Jim, Biden, Washington's, Grace Hopper superchip, it's, doesn't, Jim Cramer's, Tyrone Siu Organizations: Nvidia, of Commerce, Reuters, Microsoft, Arm Holdings, Intel, Devices, AMD, Bank of America, Apple, Qualcomm, CNBC, Nvidia Corporation Locations: China, Silicon Valley, U.S, Taipei, Taiwan
Qualcomm CEO talks its newest chip and generative AI
  + stars: | 2023-10-24 | by ( ) www.cnbc.com   time to read: 1 min
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailQualcomm CEO talks its newest chip and generative AICristiano Amon, Qualcomm CEO, joins 'Closing Bell Overtime' to talk generative AI, its newest chip, the future of PCs and more.
Persons: Cristiano Amon Organizations: Qualcomm
Qualcomm announces two new AI chips for PCs and smartphones
  + stars: | 2023-10-24 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailQualcomm announces two new AI chips for PCs and smartphonesCNBC's Kristina Partsinevelos joins 'Closing Bell' with breaking news about Qualcomm announcing two new chips for android phones and laptops that enables AI without the need for internet.
Persons: Kristina Partsinevelos Organizations: Qualcomm
Chip design startup SiFive lays off 20% of staff
  + stars: | 2023-10-24 | by ( Max A. Cherney | ) www.reuters.com   time to read: +1 min
Oct 24 (Reuters) - Chip design startup SiFive has laid off around 20% of its staff, or about 130 people, the company said on Tuesday. SiFive, based in Santa Clara, California, builds chip designs based on an open chip architecture known as RISC-V, and competes against the recently public Arm Holdings (O9Ty.F), . Like Arm, SiFive builds the underlying designs chips are based on, but not the chips themselves. The company is scaling back its effort to offer customized designs for customers, beyond the standard blueprints that are available. Technology giants such as Qualcomm (QCOM.O) and Alphabet's Google (GOOGL.O) have embraced the underlying RISC-V technology.
Persons: SiFive, David Miller, Miller, Max A, Stephen Coates, Chris Reese Organizations: Arm Holdings, Technology, Qualcomm, Google, U.S ., Thomson Locations: Santa Clara , California, U.S, China, San Francisco
Apple wants to cut its ties with chip designer Qualcomm but despite years of work and billions of dollars, the company hasn’t been able to build a wireless chip in-house. WSJ reporter Aaron Tilley joins host Zoe Thomas to explain Apple’s spectacular failure in this effort. Many Apple customers may not be familiar with Luxshare Precision or its leader Grace Wang, but they likely own its handiwork. Along with other Apple contractors, Luxshare manufactures AirPods, the Apple Watch and the recently released iPhone 15, including the top-of-the-line iPhone Pro Max. Luxshare is also the assembler of Apple’s first mixed-reality headset, due to reach consumers next year.
Persons: hasn’t, Aaron Tilley, Zoe Thomas, David Paul Morris, Brent Lewin, Grace Wang, Luxshare Organizations: Apple, Qualcomm, Bloomberg, Apple Watch Locations: China
Nvidia and AMD could sell PC chips as soon as 2025, one of the people familiar with the matter said. Nvidia and AMD would join Qualcomm (QCOM.O), which has been making Arm-based chips for laptops since 2016. Nvidia spokesperson Ken Brown, AMD spokesperson Brandi Marina, Arm spokesperson Kristen Ray and Microsoft spokesperson Pete Wootton all declined to comment. Executives at Microsoft have observed how efficient Apple’s Arm-based chips are, including with AI processing, and desire to attain similar performance, one of the sources said. AMD's entry into the Arm-based PC market was earlier reported by chip-focused publication SemiAccurate.
Persons: Intel’s, Ken Brown, Brandi Marina, Kristen Ray, Pete Wootton, , Jay Goldberg, Will Moss, Stephen Nellis, Max A, Kenneth Li, Josie Kao Organizations: NVIDIA, Handout, REUTERS, Nvidia, Arm Holdings, Reuters, Windows, Apple, IDC, Devices, AMD, Qualcomm, Microsoft, Intel, D2D, Software, Thomson Locations: Santa Clara , California, San Francisco
Intel stock dropped 3% Monday after Reuters reported that Nvidia and AMD were working on Arm-based PC chips. Intel currently has the majority of the market for PC chips, with AMD coming in second. Intel's PC chips are based on the x86 instruction set. Chips that use the Arm-based instruction set, like those for smartphones, often use significantly less power, which is critical for battery-powered devices. Qualcomm has been working on its own Arm-based PC chips for years, although it has yet to gain significant sales traction.
Organizations: Nvidia, Intel, Reuters, AMD, Apple, AMD's, Microsoft, Qualcomm, CNBC Locations: Santa Clara , California
The artificial intelligence behind ChatGPT-like products and autonomous driving is driving enormous demand for Nvidia's chips in China. Chinese companies also dominate the burgeoning electric car market , where Nvidia has had a fast-growing business of selling chips for assisted and fully autonomous driving. When it comes to such chips for cars, Nomura analysts said there's little reason to worry. Auto chip market BYD, Nio , Li Auto and Xpeng are among the China-based electric automakers using the Orin chip. In the automotive chip category, they noted Nvidia's Thor chip and Qualcomm's Snapdragon Ride Flex chip both fall into that more advanced category.
Persons: Orin, Orin X, Joel Ying, Li Auto, Albert Liu, Weeks, Kneron, Liu, Julian Ma, Ma, Inceptio, Nomura, Inovance Organizations: Nvidia, Nomura, Nomura China Technology, Auto, CNBC's East Tech West, Apple, HSBC, SEC, U.S, Management Locations: China, U.S, Nomura China, South, German, Inovance's, Hong Kong
[1/2] A smartphone with a displayed Qualcomm logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo Acquire Licensing RightsOct 17 (Reuters) - Chip designer Qualcomm (QCOM.O) said on Tuesday it is partnering with Alphabet's (GOOGL.O) Google to make wearable devices like smartwatches using chips based on RISC-V technology. RISC-V, pronounced as "risk five," is an open-source technology that competes with costly proprietary technology from British chip designer Arm Holdings (O9Ty.F). RISC-V can be used as a key ingredient for anything from a smartphone chip to advanced processors for artificial intelligence. U.S. companies are still actively working to advance RISC-V based technology despite concerns expressed by lawmakers that China is exploiting a culture of open collaboration among American companies to advance its own semiconductor industry.
Persons: Dado Ruvic, Qualcomm, Alphabet's, Jaspreet Singh, Shailesh Organizations: Qualcomm, REUTERS, Google, Arm Holdings, Thomson Locations: China, United States, Bengaluru
That's where the bipartisan $52.7 billion CHIPS Act comes in, with a goal of having the U.S. compete once again with countries like South Korea and Taiwan in semiconductors. "The CHIPS Act was a bipartisan recognition that is not an acceptable status quo." There is also funding from the CHIPS Act earmarked for worker development. However, as now more than a year has passed since President Joe Biden signed the CHIPS Act into law, many in the U.S. semiconductor industry are waiting for that money to flow into it. "This is a global industry and will remain a global industry and that's a good thing, but we want the United States to be a core part of their business models."
Persons: Michael Schmidt, Schmidt, Joe Biden, we've, CNBC's Morgan Brennan, isn't Organizations: CNBC, Treasury Department, Nvidia, Qualcomm, AMD Locations: U.S, South Korea, Taiwan, United States
Tech layoffs return as LinkedIn and Qualcomm announce job cuts
  + stars: | 2023-10-17 | by ( ) www.cnbc.com   time to read: 1 min
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailTech layoffs return as LinkedIn and Qualcomm announce job cutsCNBC's Deirdre Bosa reports on another wave of layoffs.
Persons: Deirdre Bosa Organizations: Tech, Qualcomm
Semiconductors are looking undervalued, thanks to the selloff in some parts of the sector, according to Morningstar. That's even more undervalued than the wider tech sector, which it believes is 5% undervalued. Morningstar noted such stocks have sold off a little in September, especially in analog and mixed signal names — two types of chips in the semiconductor industry — and even in artificial intelligence chipmakers. Outside the AI sector, the firm also likes autos, expecting more chips to be used in cars, especially electric vehicles, in the years to come. That will enable the company to achieve high single-digit long term revenue growth, Morningstar said.
Persons: Morningstar, Brian Colello, Jack Keegan, it's Organizations: Nvidia, Infineon Technologies, NXP Semiconductors, Qualcomm, Morningstar, Skyworks Locations: Taiwan
Qualcomm to cut roughly 1,258 jobs in California
  + stars: | 2023-10-12 | by ( Jake Piazza | In | ) www.cnbc.com   time to read: +1 min
Cristiano Amon, president and CEO of Qualcomm, speaks during the Milken Institute Global Conference in Beverly Hills, California, May 2, 2022. Qualcomm is cutting about 1,258 jobs in offices in two of its California locations, according to recent filings with the California Employment Development Department. The semiconductor manufacturer notified the state Wednesday that it would be eliminating roughly 1,064 of its San Diego employees and 194 of its Santa Clara employees. "Given the continued uncertainty in the macroeconomic and demand environment, we expect to take additional restructuring actions to enable continued investments in key growth and diversification opportunities. We currently anticipate these additional actions to be substantially completed in the first half of fiscal 2024."
Persons: Cristiano Amon Organizations: Qualcomm, Milken Institute Global Conference, California Employment Development Department, San Diego, Santa Clara, CNBC Locations: Beverly Hills , California, California
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Bank of America has identified five global stocks it says are set to benefit as the use cases of artificial intelligence applications grow significantly. In an Oct. 3 note titled "End-device AI: Great potential with hidden gems awaits," the bank said customized and private AI services could soon be brought directly to users' end devices, revolutionizing smartphones, tablets, cars and more. The report named semiconductor leaders like Qualcomm , MediaTek , Nordic Semiconductor, SK Hynix and Renesas as key potential beneficiaries. Qualcomm Price target: $145 (31% upside) Bank of America said automakers are expected to use advanced end-device AI capabilities from Qualcomm's Ride platform for in-car services. MediaTek Price target: 1,100 New Taiwan dollars (40% upside) Bank of America expects the firm to add generative AI functions to its next flagship smartphone chips.
Persons: Brad Lin, MediaTek Organizations: of America, Bank of America, CES, MWC, Qualcomm, MediaTek, Nordic Semiconductor, SK Hynix, Meta, SK Hynix Price Locations: Taiwan
"Most traffic issues occur because of non-line-of-sight scenarios," the government panel said in its 58-page draft, which is being reported for the first time by Reuters. "Most sensors do not work well in these scenarios and V2X fills the gap," it added, referring to the connected car technology commonly known as vehicle-to-everything (V2X). In Europe, the Euro NCAP rules recognise vehicle connectivity as a key milestone in crash avoidance and car ratings, the report added, while China and the United States are among the nations evaluating similar rules to improve safety. "With limitation for growth infrastructure there is a strong need to depend on technology to address challenges," the panel said in its report. The United States estimates introducing V2X connected vehicle technology could prevent at least 600,000 crashes a year.
Persons: Francis Mascarenhas, Bharat, V2X, Munsif, Aditi Shah, Aditya Kalra, Clarence Fernandez Organizations: REUTERS, Reuters, Reliance, Samsung, Qualcomm, Mahindra & Mahindra, Mahindra, carmakers, United, Thomson Locations: New Delhi, India, China, Europe, USA, DELHI, Indian, United States, Bengaluru
Naveen Rao is VP of Generative AI at Databricks and co-founder of LLM-training platform MosaicML. Rao says copyright infringement could prevent companies from successfully monetizing AI. Rao, who oversees generative AI strategy for Databricks after it bought his startup MosaicML for $1.3 billion, likens it to the issue that crushed Napster, the 2000s-era music-sharing platform. "We build tools that enable companies to differentiate their AI from everyone else's and leverage their data uniquely," Rao told Insider. The more people building generative AI technology the better, Rao says.
Persons: Naveen Rao, Rao, , ChatGPT, Jodi Picoult, George R.R, Martin, OpenAI, he's Organizations: Service, Napster, Apple, iTunes, Thrones, Metallica, Qualcomm, Intel
The main forecast CCS Insight has for 2024 is that generative AI "gets a cold shower in 2024" as the reality of the cost, risk and complexity involved "replaces the hype" surrounding the technology. "But the hype around generative AI in 2023 has just been so immense, that we think it's overhyped, and there's lots of obstacles that need to get through to bring it to market." Companies have to acquire high-powered chips to run AI applications. In the case of generative AI, it's often advanced graphics processing units, or GPUs, designed by U.S. semiconductor giant Nvidia that large companies and small developers alike turn to to run their AI workloads. "Just the cost of deploying and sustaining generative AI is immense," Wood told CNBC.
Persons: Ben Wood, Wood, Google Bard, Anthropic's Claude, it's Organizations: Artificial Intelligence, CCS Insight, Google, Qualcomm, Meta, CNBC, Companies, Nvidia, Amazon Locations: Shanghai, U.S
The third-quarter earnings season is set to kick off this week, with certain stocks trading at attractive valuations. Going into earnings, 76 companies in the S & P 500 have already issued negative earnings per share guidance for the third quarter, compared to 42 companies that have announced positive earnings per share guidance, FactSet data shows. With this in mind, CNBC Pro screened for stocks with growing earnings that are also trading at a discount. Growing earnings: Earnings per share have grown more than 20% over the past 12 months. The company's trailing 12 months P/E ratio is 6.3, significantly lower than the five-year average P/E of 22.61.
Persons: — CNBC's Michael Bloom Organizations: Delta Air Lines, Infosys, JPMorgan Chase, Citigroup, PNC Financial Services, Wells, CNBC Pro, Major U.S, Delta, United Airlines, Devon Energy, Semiconductor, Qualcomm Locations: Blackrock, Oil, Monday's, Israel
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 28, 2023. ET, Dow e-minis were down 152 points, or 0.45%, S&P 500 e-minis were down 24.25 points, or 0.56%, and Nasdaq 100 e-minis were down 109.5 points, or 0.72%. Traditional safe-haven assets including gold and the U.S. dollar gained, while growing uncertainty pushed crude prices higher. The Nasdaq (.IXIC) and the S&P 500 (.SPX) posted weekly gains on Friday as mixed jobs reports kept investors on edge around the Federal Reserve's interest rate outlook. Tesla (TSLA.O) shed 1.7% as data showed the company's China-made EV sales volume for September decreased 10.9% from a year ago.
Persons: Brendan McDermid, Tesla, Lloyd Austin, Stuart Cole, Northrop, Lockheed Martin, Philip Jefferson, Michael Barr, Nelson Peltz's, Shashwat Chauhan, Arun Koyyur, Shounak Organizations: New York Stock Exchange, REUTERS, Nvidia, Big Tech, U.S, Israel, Dow, Nasdaq, Hamas, . Defense, Dow e, U.S ., Equiti, Energy, Chevron, Exxon Mobil, Occidental Petroleum, United Airlines, Delta Air Lines, American Airlines, Barrick Gold, Northrop Grumman, General Dynamics, Lockheed, Columbus Day, Apple, Intel, Qualcomm, Devices, JPMorgan Chase, Citigroup, BlackRock, Management, Thomson Locations: New York City, U.S, China, Israel, Palestinian, Gaza, United States, Tel Aviv, Wells Fargo, Bengaluru
The comments come after Reuters last week reported that a growing group of U.S. lawmakers are calling on the Biden administration to impose export control restrictions around RISC-V, the open-source technology overseen by the RISC-V International nonprofit foundation. RISC-V technology can be used as an ingredient to create chips for smartphones or artificial intelligence. In a blog post, Calista Redmond, chief of RISC-V International, which coordinates work among companies on the technology, said RISC-V is no different than other open technology standards like Ethernet, which helps computers on the internet talk with each other. Redmond wrote that RISC-V has drawn contributions in equal measure from North America, Europe and Asia. "Having access to open standards allows companies to innovate faster and spend their time creating differentiated products, rather than trying to reinvent the wheel."
Persons: Florence Lo, Biden, Calista Redmond, Redmond, Stephen Nellis, Matthew Lewis Organizations: REUTERS, V, Reuters, V International, U.S, Qualcomm, Google, Huawei Technologies, Arm Holdings, San, Thomson Locations: U.S, North America, Europe, Asia, San Francisco
At issue is RISC-V, pronounced "risk five," an open-source technology that competes with costly proprietary technology from British semiconductor and software design company Arm Holdings (O9Ty.F). RISC-V can be used as a key ingredient for anything from a smartphone chip to advanced processors for artificial intelligence. The RISC-V technology came from labs at the University of California, Berkeley, and later benefited from funding by the Pentagon's Defense Advanced Research Projects Agency (DARPA). Its executives said in August they believe RISC-V will speed up chip innovation and transform the tech industry. Jack Kang, vice president of business development at SiFive, a Santa Clara, California-based startup using RISC-V, said potential U.S. government restrictions on American companies regarding RISC-V would be a "tremendous tragedy."
Persons: Florence Lo, Joe Biden's, Marco Rubio, Mark Warner, Mike Gallagher, Biden, Michael McCaul, McCaul, " Rubio, Warner, Jack Kang, Kang, Kevin Wolf, Akin Gump, Barack Obama, Wolf, Max A, Cherney, Stephen Nellis, Will Dunham, Kenneth Li Organizations: REUTERS, U.S ., Arm Holdings, Republican, Democratic, Reuters, Commerce Department, People's, CCP, Chinese Communist Party, House Foreign Affairs, of Industry, Security, Commerce, University of California, Pentagon's Defense, Research Projects Agency, DARPA, HUAWEI, Huawei Technologies, Qualcomm, Google, Thomson Locations: China, U.S, Beijing, People's Republic of China, Communist China, Swiss, Berkeley, United States, SiFive, Santa Clara , California, San Francisco
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