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Good morning. Nvidia revenues soared 265 per cent in the latest quarter to $22.1bn as the world’s most valuable chip company benefited from a spending frenzy on artificial intelligence.
The revenue performance beat analysts’ already heightened expectations of $20.4bn, boosted by a 409 per cent rise in data centre revenue to $18.4bn compared to the previous year.
“Accelerated computing and generative AI have hit the tipping point,” said Nvidia founder and chief executive Jensen Huang. “Demand is surging worldwide across companies, industries and nations.”
Nvidia’s latest blowout results came despite “significantly” declining sales to China in the fourth quarter “due to US government licensing requirements”, the company said. Here’s more on the AI chipmaker’s highly-anticipated earnings.
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Related: US chip company Intel will make high-end semiconductors for Microsoft, the companies announced, as it seeks to compete with TSMC and Samsung to supply the next generation of silicon used in artificial intelligence.
Here’s what else I’m keeping tabs on today:
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Economic data: The February S&P Global/HCOB purchasing managers’ index for manufacturing and services is due for Canada, EU, France, Germany, Italy, Japan, UK and the US.
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Results: Lenovo, Intuit, Lloyds Banking Group, Nestlé and Qantas Airways are among those reporting.
Five more top stories
1. Shares in HSBC fell by their largest amount since 2020 after the bank reported an 80 per cent drop in quarterly profit and a $3bn charge on the value of its stake in a Chinese bank. HSBC’s writedown of its holding in Bank of Communications underscores how lenders are taking a hit on their China exposure as growth slows in the world’s second-biggest economy. Here’s what CEO Noel Quinn said about HSBC’s view on China.
2. Joe Biden signed an executive order yesterday designed to strengthen cyber security at US ports and directed billions of dollars into new infrastructure amid concerns that hackers from China could exploit the facilities and wreak havoc on supply chains. The White House said the moves to improve port security include replacing Chinese-built cranes with domestically produced ones.
3. Beijing is overhauling how China’s fast-growing quant trading industry is regulated after one of the sector’s largest operators was hit with a trading ban this week for dumping shares. The overhaul marks an escalation of official efforts to combat a protracted sell-off in Chinese equities. Here are the new rules — and why some Chinese fund managers are privately questioning them.
4. The EU has agreed to impose its first sanctions on Chinese and Indian companies accused of supporting Russia’s war effort. Brussels’ latest package of curbs in response to Russia’s invasion of Ukraine targets close to 200 individuals and entities but stops short of any sweeping economic action targeting crucial industrial sectors.
5. Boeing has ousted the executive in charge of manufacturing its 737 Max aircraft, weeks after a door panel blew out of one of the jets on an Alaska Airlines flight. Ed Clark, a vice-president and general manager of the Seattle-area factory where the 737 Max is built, is leaving the company as it encounters intense regulatory scrutiny over the incident last month.
News in-depth
The Chinese Communist party’s United Front activities — aimed at influencing people or groups outside the party — are now kicking into overdrive in Taiwan. This follows the recent election victory for Taiwan’s Democratic Progressive party, which strongly rejects Beijing’s claim of sovereignty over the island. The FT’s Kathrin Hille reports how the CCP is using United Front-organised trips to China to foster Chinese patriotism and promote unification among young Taiwanese.
We’re also reading . . .
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Bankruptcy protection: It is often said that Donald Trump’s biggest incentive to win in November is to keep himself out of prison. Less understood is the boost that another term would give to Trump’s solvency, writes Edward Luce.
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US-South Korea ties: Korean companies are increasingly concerned about a lack of clarity from US policymakers on the Biden administration’s landmark climate legislation.
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Flexible working: A year after the UK’s four-day workweek trial, employers are assessing the impact of shorter working hours.
Chart of the day
China is shipping more goods to the US via Mexico, circumventing steep tariffs imposed by the Trump administration and retained by the Biden White House, according to an FT analysis of trade data. “The US is the world’s biggest consumer of stuff; China is the world’s biggest producer of goods,” said Robin Brooks, former chief economist at the Institute of International Finance. “One way or another, these two forces have to meet.”
Take a break from the news
It was no surprise when Nigerian superstar Burna Boy was named the best Afrobeats artist at the Billboard Awards in November. Having transformed the musical landscape with hits such as “Last Last” and “City Boys”, what’s next for the Afrobeats sensation?
Additional contributions from Grace Ramos and Gordon Smith
