Nvidia has had another impressive quarter. Record revenue of $30 billion in Q2 was up 122 percent from a year ago, while data center revenue of $26.3 billion marked a 154 percent increase from the same period in 2023. The performance was seen by many as an assurance of AI’s staying power, although others raised concern that if the AI companies buying chips do not start generating profits soon, the sugar high of the two-year AI boom could precede a crash. Nvidia took the occasion to tout its next-generation Blackwell chips, reassuring investors that a mid-production “tweak” would not delay release. Continue reading AI Boom Continues to Drive Strong Nvidia Revenue and Profit

Reddit will soon add AI-generated summaries atop its search results, co-founder and CEO Steve Huffman told investors on a Q2 earnings call last week. The company will later this year begin testing AI-powered search result pages that “summarize and recommend content,” said Huffman, who expects the technology will help Reddit users “dive deeper” into content and aid in discovery. Huffman mused monetization strategies, including boosting ad inventory and possibly installing a paywall to differentiate premium content. The discussions accompanied news that Reddit lost $10.1 million in Q2, which saw revenues of $281 million, a 54 percent increase year-over-year. Continue reading Q2 Report: Reddit Adds Users, Narrows Losses, Preps for AI

Facebook parent Meta announced better-than-expected earnings for Q2 last week, surpassing Wall Street estimates for revenue and profit. The company plans to continue spending heavily on artificial intelligence and virtual reality, despite significant losses in its AR/VR and metaverse businesses. Meta reported a revenue increase of 22 percent from $32 billion for the same quarter last year, representing four straight quarters of growth exceeding 20 percent. The company noted that net income jumped 73 percent to $13.47 billion. Advertising revenue, largely from Facebook and Instagram, was up 22 percent year-over-year. Continue reading Meta Reports Q2 Digital Ad Growth, Will Continue AI Spending

Samsung Electronics saw net profit rise sixfold in Q2, surging 46 percent — to $7.11 billion — compared to Q1. The buoyant results for the South Korean electronics manufacturer were driven by its semiconductor business and the demand for advanced chips needed to fuel the global boom in artificial intelligence. Although the company is the world’s top smartphone manufacturer, more than half of the quarter’s operating profit came from chip-making for the latest reporting period. Revenue for the April through June quarter resulted in a 23.42 percent increase year-over-year, while profit soared 1,458 percent. Continue reading Demand for Advanced Semiconductors Drives Samsung Profits

Qualcomm revenue increased 11 percent to $9.39 billion for the second quarter, beating analyst expectations. Its core business, processor sales for smartphones and other mobile devices, was up 12 percent. Overall, profit was up by 26 percent year-over-year for the period ending in June. The period benefited from the launch of PC chips in the company’s Snapdragon X Series optimized for artificial intelligence. President and CEO Cristiano Amon called the move into PCs and laptops “a significant milestone in our transformation from a communications company to a leading intelligent computing company.” Continue reading Qualcomm’s 26 Percent Q2 Profit Growth Propelled by AI Chips

Alphabet announced that its revenue was up 14 percent to $84.7 billion in Q2, slightly outperforming expectations. Profits rose 29 percent to $23.6 billion, beating analyst targets by $900 million. Search continued to be a top performer, generating $48.5 billion in the three-month period ending June 30, while Google advertising was up 10.5 percent to $64.6 billion. Google CEO Sundar Pichai said the company’s cloud and generative AI solutions “are being used by more than 2 million developers.” The Google Cloud services unit surpassed the $10 billion quarterly revenue mark for the first time. “We are innovating at every layer of the AI stack,” Pichai added. Continue reading Alphabet Reports Q2 Profits Jump 29 Percent to $23.6 Billion

Netflix reported that its popular streaming service has added 8.05 million subscribers during Q2, a healthy gain from 5.89 million newcomers during the same period a year earlier. The streamer’s total of more than 277 million worldwide customers makes it by far the largest subscription service of its kind. Revenue climbed to $9.56 billion, a nearly 17 percent second quarter gain that outperformed its own projections. Subscriptions on the ad-supported tier grew 34 percent compared to Q1. Amidst upheaval in more traditional media environs, Netflix seems to be gliding along, closing Thursday with a market valuation of $277 billion. Continue reading Netflix Reports Q2 Subscriber Growth as Revenue Tops $9.5B

Paris-based global streaming platform Deezer is fielding an AI playlist generator in an international beta launch. The move makes the indie-centric service more competitive with Spotify and Amazon Music, which have already been testing the feature. YouTube is reportedly also experimenting with AI-powered personalized radio. As of now, 5 percent of Deezer’s paid subscribers have been selected at random to try Playlist with AI, which creates playlists from text prompts that invoke moods, genres, decades, activities or “anything else that comes to mind,” according to Deezer. Continue reading Deezer Adds AI Playlists to Compete with Spotify and Amazon

Nielsen will begin measuring the performance of Lionsgate‘s MovieSphere channel (available on 18 streaming platforms), making it the first major FAST service to get a deep dive regularly disseminated to clients by the analytics firm. Nielsen also collects data from Roku, Peacock, Pluto and Tubi, compiling them as part of the macro view in its monthly trends report “The Gauge.” Detailed MovieSphere data will now be collected and distributed to Nielsen’s ad buyer clients along with the material they receive for traditional networks. Lionsgate launched MovieSphere in 2020, serving-up free movies in AVOD and linear formats. Continue reading MovieSphere Is First Major FAST Channel Measured by Nielsen

Nvidia just wrapped a record quarter, with no sign of interest cooling for the GPUs that have become essential to powering the AI boom. Revenue for the company’s most recent quarter was a record $26 billion, up 262 percent year-over-year. Profit also hit a new high, up nearly sevenfold to $14.88 billion compared to the same period a year earlier. The performance drove the already buoyant stock price above $1,000 a share. Company founder and CEO Jensen Huang proclaimed, “the next industrial revolution has begun,” with Nvidia playing a pivotal role in transforming data centers into “AI factories.” Continue reading Nvidia Reports Record Revenue, Profits as AI Demand Surges

Masayoshi Son, CEO of Japan’s SoftBank, wants to transform the tech conglomerate’s Arm subsidiary into an AI powerhouse, and he is investing $64 billion (10 trillion yen) to implement the plan, which includes turning the UK-based unit into an AI chip supplier. Son announced that by spring 2025 Arm is expected to have its first prototype, followed by mass production by contract suppliers and commercial sales in the fall. Arm designs but does not manufacture circuitry, supplying what it calls “chip architecture” to customers including Nvidia and Qualcomm. Continue reading SoftBank’s Arm Plans to Supply AI Chips, Open Data Centers

Samsung Electronics grew net profit by more than 400 percent in Q1, to $4.91 billion, on revenue of about $52.3 billion, a nearly 13 percent increase year-over-year. The results were credited mainly to higher memory chip prices resulting from AI demand buoying the company’s semiconductor business. Solid performance in smartphones — with the launch of its Galaxy S24 series, the first to pack AI-optimized chips — supported the stellar performance. It was a dramatic rebound from 2023, when post-COVID economic fallout drove Samsung to a 15-year profit low and semiconductor losses of almost $11 billion. Continue reading Samsung Chip Rebound Sends Q1 Net Profit Up 400 Percent

Apple revealed its largest quarterly decline in iPhone sales since the July-September period in 2020 during the pandemic, placing additional pressure on the tech giant to step up its artificial intelligence efforts. Apple iPhone sales for January-March dropped 10 percent year-over-year, as its top product faced increased competition from Huawei in China, Apple’s third-largest market. Apple’s quarterly revenue decreased 4 percent from the same period last year to $90.8 billion, marking the fifth dip in the past six quarters for the company. Apple’s $23.64 billion profit for the quarter represents a 2 percent reduction from last year. Still, Apple shares rose in after-market trading. Continue reading Apple’s Revenue Is Impacted by Pressure from Chinese Rivals

Chinese telecommunications firm Huawei Technologies continues to bounce back after taking an initial hit from U.S. sanctions resulting from the company being declared a national security threat in 2019. Year-over-year, net profit surged 564 percent to $2.7 billion in Q1, with revenue up 37 percent to $24.65 billion. It was the company’s fourth consecutive quarterly profit gain. Although Huawei doesn’t breakout performance for individual sectors, analysts estimate the company’s smartphone sales rose 70 percent, leading to further speculation the global firm is taking market share from rivals, particularly Apple in China. Continue reading Huawei Continues Financial Rebound Despite U.S. Sanctions

Amazon reported $143.3 billion in Q1 revenue, a 13 percent increase year-over-year, excluding the impact from foreign exchange rates, with net income at just over $10.3 billion, a nearly 229 percent surge that set a first quarter record for the company. Both categories outperformed Wall Street expectations, with strong online sales and a booming cloud business thanks to the increased demands of artificial intelligence deployment by enterprise clients credited as driving the boom. Amazon President and CEO Andy Jassy called it “a good start to the year.” Continue reading Amazon Q1 Profits Surge on Strong Retail and AWS Comeback