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Nvidia Corporation is expediting the certification process of Samsung Electronic Co.’s AI memory chips.

What Happened: This information was confirmed by Nvidia’s CEO, Jensen Huang, at an event at the Hong Kong University of Science and Technology on Saturday, reported Bloomberg.

Huang said that Nvidia is evaluating both 8-high and 12-high HBM3E offerings from Samsung.

Notably, the Nvidia CEO did not include Samsung in the list of major partners he mentioned during a post-earnings call with analysts earlier this week.

See Also: Nvidia’s Blackwell Set To Outpace Hopper? Here’s What CEO Jensen Huang Predicts For 2025

At that time, Huang highlighted the impressive list of partners including Taiwan Semiconductor Manufacturing Company Ltd. , Amphenol , SK Hynix , Foxconn, Micron Technology Inc. , and Dell Technologies .

Nvidia reported third-quarter revenue of $35.1 billion, a 94% increase year-over-year, surpassing the Street consensus estimate of $33.12 billion, according to data from Benzinga Pro.

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Why It Matters: This development follows Nvidia’s initial approval of Samsung’s fourth-generation high bandwidth memory in July.

This marked the first time Nvidia approved the use of Samsung's HBM3 chips, albeit for a less advanced Nvidia graphics processing unit (GPU), the H20, specifically designed for the Chinese market.

However, Samsung’s delay in obtaining Nvidia’s certification for AI memory chips has given competitors SK Hynix and Micron an edge in the high-bandwidth memory market.

Nvidia’s new Blackwell AI chips are reportedly facing overheating problems. When asked about it during the earnings call, Huang sidestepped the question and instead highlighted that the supply levels surpassed initial expectations.

Nvidia’s CFO, Colette Kress, also said the company shipped 13,000 GPU samples in the third quarter, including one of the first Blackwell DGX samples to OpenAI.

“Blackwell demand is staggering, and we are racing to scale supply to meet the incredible demand customers are placing on us,” Kress stated during the call.

Price Action: Nvidia shares dropped 3.22% on Friday, closing at $141.95, and saw a further decline of 0.13% in after-hours trading, reaching $141.77 as of the latest update, according to Benzinga Pro data.

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Read Next:

• Jensen Huang Says Building Nvidia Was A ‘Million Times Harder’ Than He Expected

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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

China has launched a new AI Experts Committee to influence artificial intelligence’s global development and governance as part of its broader strategy.

The committee was announced during the four-day World Internet Conference, also known as the Wuzhen Summit, held in Zhejiang province, China.

The AI Experts Committee will be led by Wang Jian, founder of Alibaba Group Holding Alibaba Cloud, who was named chief expert, SCMP reports.

Also Read: Alibaba Reshapes E-Commerce Operations, Names Jiang Fan as Unit CEO

The committee includes approximately 170 specialists, featuring prominent figures such as British computer scientist Wendy Hall, Vienna University of Technology professor Schahram Dustdar and Chinese-American scientist Zhang Ya-qin of Tsinghua University.

Representatives from U.S. firms, including chipmaker Advanced Micro Devices, Inc. , are also members.

The committee aims to enhance international collaboration and promote China’s perspective on responsible AI governance. This initiative mirrors Beijing’s approach to influencing global standards, similar to its efforts in shaping 4G and 5G mobile technologies.

Panel discussions at the Wuzhen Summit focused on AI innovation, governance, and its potential to empower productivity across industries.

At the summit, Eddie Wu Yongming, CEO of Alibaba Group Holding, emphasized AI could transform productivity across various sectors, forming what he described as a “superintelligent body.” Meanwhile, Xiaomi founder Lei Jun shared plans to launch an intelligent-driving application by year-end, aligning with the company’s “All in AI” strategy. Ant Group CEO Eric Jing Xiandong underscored AI’s potential for personalization in services while emphasizing responsible risk management.

The formation of this committee highlights China’s commitment to taking a leading role in global AI governance, even as it faces trade restrictions from the U.S. government. This effort aligns with Beijing’s broader ambitions to remain competitive in advanced technologies.

China has been actively involved in boosting its AI semiconductor base after the U.S. imposed sanctions on advanced AI chip exports to the country, restricting it from advanced technologies from companies like NVIDIA Corp and Taiwan Semiconductor Manufacturing Co .

Also Read:

• Alibaba’s Monetization Strategy Gains Momentum, But GMV Growth Lags: Analyst

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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

United Microelectronics UMC shares have lost 19.9% in the year-to-date period against the Zacks Electronics - Semiconductors industry’s rise of 44.3% and the broader Zacks Computer & Technology sector’s return of 27.4%.

UMC has also underperformed its peers, such as Toshiba and Taiwan Semiconductor TSM, which offer similar semiconductor manufacturing services. Taiwan Semiconductor has returned 83.5% YTD, whereas Toshiba has lost 7.9% over the same time frame.

The underperformance can be attributed to intense competition in the semiconductor foundry service market, rising supply-chain constraints due to geopolitical tensions and higher inflationary costs.

YTD Performance

However, UMC is benefiting from its expanding portfolio and growth in wafer shipments, which increased 7.8% sequentially in the third quarter of 2024. This growth was largely due to strong demand for 22 nanometer (nm) and 28 nm products, which helped offset other market challenges.

These advanced nodes are essential in producing high-performance chips used in various industries, including consumer electronics and automotive, where demand has remained robust.

Expanding Portfolio Aids UMC Prospects

Expanding portfolio has been a key catalyst. Revenues from UMC’s specialty technology portfolio accounted for 53.1% of total sales in the third quarter of 2024. This portfolio includes advanced solutions like its 22-nm display driver technology, which is gaining strong momentum.

Building on this success, in June, UMC launched its 22 nm embedded high voltage technology platform, the most advanced display driver IC solution, enhancing power efficiency and visual experiences for premium displays in mobile devices.

UMC’s diversified manufacturing footprint, highlighted by the near completion of its new fab expansion in Singapore, enables the company to support customers’ long-term strategies while strengthening its position in the semiconductor industry. This expansion is critical to meeting increasing demand and providing advanced solutions.

In addition to technological advancements, UMC is also investing in the future workforce. In October, United Microelectronics signed a Memorandum of Understanding with Ngee Ann Polytechnic to enhance training for engineering talents and expand the workforce for the growing semiconductor industry.

UMC Benefits From a Strong Partner Base

UMC’s expanding partner base, which includes Intel INTC, Infineon IFNNY and Cadence, has been a major growth driver.

UMC’s collaboration with Intel focuses on developing a 12-nm semiconductor process platform. It leverages Intel’s U.S.-based manufacturing capabilities and FinFET transistor design expertise, combined with UMC’s extensive foundry experience in mature nodes.

The partnership with Intel aims to address high-growth markets such as mobile, communications infrastructure, and networking, offering global customers a more resilient and diversified supply chain.

The collaboration with Infineon expands automotive microcontroller production at UMC’s Singapore fab, leveraging Infineon’s eNVM (embedded non-volatile memories) technology. As the automotive market grows, this partnership ensures UMC meets the rising demand for automotive semiconductors.

UMC’s collaboration with Cadence on 3D-IC reference flow accelerates time to market for edge AI and wireless communication applications. This gives UMC a competitive edge, enabling it to stay ahead of the growing demand for advanced semiconductor solutions.

Earnings Estimates Show Upward Movement

For the fourth quarter of 2024, the Zacks Consensus Estimate for UMC revenues is pegged at $1.88 billion, indicating a year-over-year increase of 44.77%.

The Zacks Consensus Estimate for fourth-quarter 2024 earnings is pegged at 17 cents per share, which has increased by a penny in the past 30 days.

United Microelectronics Price and Consensus

United Microelectronics Corporation price-consensus-chart | United Microelectronics Corporation Quote

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

UMC Shares: Buy, Hold or Sell?

UMC shares are currently trading at a significant discount, as suggested by a Value Score of A.

The forward 12-month Price/Sales ratio for UMC stands at 2.33X, significantly below the industry average of 9.22X.

Price/Sales (TTM)

UMC’s strong demand for advanced technology products like 22 and 28 nm solutions and expanding partner base has been noteworthy.

However, the appreciation of the NT (New Taiwan) dollar against the U.S. dollar is expected to lead to a decline in reported NT dollar revenue for the fourth quarter of 2024, which could hurt UMC’s financial results.

United Microelectronics currently has a Zacks Rank #3 (Hold), suggesting that it may be wise to wait for a more favorable entry point to accumulate the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks Investment Research

Palo Alto Networks, Inc. PANW, a cybersecurity powerhouse, delivered stellar results for its first quarter of fiscal 2025, surpassing market expectations and solidifying its position as a leader in the evolving cybersecurity landscape. With robust financial performance, strategic advancements and an optimistic outlook, PANW presents a compelling investment opportunity. Here’s why you should consider buying Palo Alto Networks stock now.

PANW’s Impressive Q1 Earnings Beat Expectations

Palo Alto Networks reported non-GAAP earnings of $1.56 per share, exceeding the Zacks Consensus Estimate by 5.4% and improving 13% year over year. Revenues climbed to $2.14 billion, up 14% year over year, driven by strong growth in subscription and support revenues.

Palo Alto Networks’ Subscription and Support revenues, accounting for 83.5% of total revenues, surged 16% to $1.79 billion, reflecting growing demand for its Next-Generation Security (“NGS”) solutions. Product revenues rose 3.7% year over year to $353.8 million, supported by the increased adoption of its firewall appliances.

Palo Alto Networks reported better-than-expected results in all the trailing four quarters, the average surprise being 7.6%. Investors have already responded positively, with PANW's stock climbing nearly 35% in 2024 so far, outperforming broader indices such as the S&P 500’s 24.4% and the Zacks Computer & Technology sector’s 27.5%.

Shares of Palo Alto Networks have also outperformed its peers in the cybersecurity space, including Juniper Networks, Inc. JNPR and Check Point Software Technologies Ltd. CHKP. Year to date, Juniper Networks and Check Point Software Technologies have rallied 20.1% and 19%, respectively.

YTD Price Return Performance

Strong NGS Performance Solidifies Growth Prospects

Palo Alto Networks Next-Generation Security Annualized Recurring Revenue (NGS ARR) reached $4.52 billion in the first quarter, reflecting 40% year-over-year growth. This robust performance underscores the company’s success in platformization and ability to meet customers' diverse cybersecurity needs through comprehensive offerings like Cortex, Prisma Cloud and XSIAM.