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Nvidia's AI boom is not dead yet
Nvidia announced higher revenue for the first quarter on Wednesday. The company said that orders for its Blackwell semiconductors are "amazing" and cited continued demand for artificial-intelligence chips. The company's projection helps to allay any doubts about a slowdown on spending for its hardware, which emerged last month after Chinese AI startup DeepSeek claimed that it had developed AI rivaling Western competitors at a fraction the cost. Nvidia’s forecast for gross margins in the current quarter is slightly lower than expected. However, the Blackwell chip rampup has a negative impact on Nvidia’s profit. Nvidia predicted first-quarter gross profit margins would fall to 71%. This is below the 72.2% Wall Street forecast, according to LSEG data. After closing 3.7% higher in regular trading, its shares gained 1% during choppy extended trades. Nvidia shares have risen more than 400% in the past two years, making it the largest beneficiary of the rally among AI-related stocks. Jensen Huang, CEO of Blackwell, said in a press release that the demand for Blackwell was "amazing". "We have successfully scaled up massive production of Blackwell AI Supercomputers and achieved billions in sales in the first quarter." Colette Kress, Nvidia’s Chief Financial officer, said that the Santa Clara-based company had generated $11 billion in revenue in the fourth-quarter from Blackwell-related products. This was about 50% of Nvidia’s total data center revenue. According to LSEG, the company is expecting revenue of $43 billion plus or minus 2% in the first quarter. This compares with an average analyst estimate of $41.78billion. Third Bridge analyst Lucas Keh, who is referring to the large cloud computing companies, said that despite DeepSeek's breakthroughs, Nvidia seems to be continuing its momentum with Hyperscalers. Chinese companies are increasing orders for Nvidia H20 AI chips due to the booming demand for DeepSeek AI's low cost model, according to reports on Monday. As companies compete to be the leaders in this new technology, the demand for Nvidia advanced chips has increased. These chips can process large amounts of data quickly and efficiently. Generative artificial intelligence is a form of artificial intelligent that can improve with time and learn from data. John Belton said that the forecast was "a positive read on AI demand and investment cycles." Wall Street's optimism has waned in the shadow of DeepSeek’s innovations, which could fuel the AI rally that is sputtering. Nvidia's adjusted profit per share was 89 cents. This compares to estimates of 84. Revenues for the fourth quarter increased 78%, to $39.3 Billion. This was higher than expected at $38.04 Billion. The data-center segment, where Nvidia generates most of its revenue, saw sales grow 93% in the quarter ending January 26 to $35.6 billion, above the estimated $33.59 billion. In the previous quarter, this segment had grown by 112%. Reporting by Max A. Cherney in San Francisco and Stephen Nellis, Arsheeya Bajiwa in Bengaluru. Editing by Shounak dasgupta and Rod Nickel.
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FirstEnergy forecasts downbeat 2025 earnings, misses quarterly profit estimates
FirstEnergy has forecast lower earnings for the current financial year, after it missed Wall Street expectations for its fourth-quarter profits on Wednesday due to mild weather. In extended trading, shares of the company fell 3.2% to $41.69. FirstEnergy reported that heating degree days, an indicator of the energy demand for heating in space, were 10% lower than normal. This had a negative impact on the results from the quarters October-December compared to a year ago. Utility now expects a current-year profit of between $2.4 and $2.6, below Wall Street's estimates of $2.89 a share. Capital expenditures for this year are expected to reach $5 billion. This is about 11% more than the previous year. FirstEnergy serves approximately 6 million customers through its three segments: distribution, integrated and stand-alone Transmission. These areas include Ohio, Pennsylvania New Jersey West Virginia and Maryland. However, the Akron-based company reported a net profit of $261 millions in the third quarter. This was up 49% compared to a year ago, thanks to higher electricity rates. According to LSEG, the company reported an adjusted profit per share of 61 cents for the quarter that ended on December 31. This was below Wall Street expectations of 70 cents. Reporting by Tanay in Bengaluru, and editing by Mohammed Safi Shamsi
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Trump: EPA chief to reduce workforce by 65%
The U.S. president Donald Trump announced on Wednesday that Environmental Protection Agency administrator Lee Zeldin plans to reduce 65% of the agency's staff. This was a surprising move for agency employees. Elon Musk, Trump's downsizing czar, announced that he would act quickly to reduce federal spending. Trump stated, "I spoke to Lee Zeldin and he believes he will be cutting 65 percent or more of the environmental workers." "We're also going to accelerate the process at the same." The EPA didn't specify the details of Trump's potential workforce reduction figure, but stated that the agency was focused on cutting federal grant, "reassessing its real estate footprint" and "delivering organization improvements to the personnel system." An EPA spokesperson stated that "President Trump, and EPA Administrator Zeldin, are working together to create a more effective and efficient federal government." The news of Trump's 65% target caught the agency staff by surprise. Their union leadership said they had not received any advance notice of the desired reductions. Joyce Howell is the executive vice president of AFGE Council 238 which represents EPA employees. She said that Mr. Zeldin pledged to 'enthusiastically uphold' the EPA mission and support career staff members who are dedicated to the mission. Which is it?" Which is it? The EPA has terminated almost 400 probationary employees, and placed about 200 others on leave. These employees worked on environmental justice issues within the agency. A memo issued ahead of the Cabinet meeting called for "significant reductions" but did no specify how many workers would be laid off. This was in addition to the 100,000 civilian federal employees who had already been terminated or bought out. The unprecedented government reform has fired over 20,000 employees, frozen foreign aid and disrupted scientific research and construction projects, but it hasn't slowed down spending yet.
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Expand Energy's profit beats expectations for the fourth quarter on higher production and prices
Expand Energy, a U.S. natural-gas producer, surpassed its fourth-quarter profit expectations on Wednesday after a slight rise in gas prices. The natural gas price rose during the first quarter of this year, reaching a record high. This was due to an increase in gas flow to export plants for liquefied gas. Prices were also boosted by the forecast of continued cold weather in January which increased heating demands. The Oklahoma City company that acquired Southwestern for $7.3 billion and became the largest independent U.S. natural gas producer reported a fourth-quarter production rate of 6.41 billion cubic foot equivalent per day (bcfepd), nearly double what it was last year. The average realized gas price increased by 1.4%, to $2.91 per 1,000 cubic feet. Expand Energy plans to invest $2.7 billion in order to produce 7.1 bcfepd this year. It also intends to operate 12 rigs. As artificial intelligence data centres continue to increase energy demand in the U.S., natural gas producers will benefit. Expand Energy has also announced that it will increase its target for 2025 synergies by $175,000,000 to approximately $400,000,000. Separately it announced that it would allocate approximately $500 million for net debt reduction. The natgas manufacturer now expects capital spending of around $3 billion this year, which is above the Wall Street estimate of $2 billion. According to LSEG, the company reported an adjusted net profit of 55 cents a share for the three-month period ended December 31. This was higher than the 48 cents analysts expected per share. Reporting by Tanay in Bengaluru, and editing by Alan Barona
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Michelle Trachtenberg, the 'Buffy the Vampire Slayer" actor, has died at the age of 39
Michelle Trachtenberg died on Wednesday. She was an American actress best known for her roles on the TV series "Buffy the Vampire Slayer", "Gossip Girl" and "Buffy the Vampire Slayer". Her public relations team confirmed this. It is with deep regret that we confirm the death of Michelle Trachtenberg. The family asks for privacy in their grief. "At this time, there are no additional details," said the statement. Trachtenberg’s cause of death is unknown. Born in New York City on October 11, 1986, to Jewish immigrants. Trachtenberg began her career in Hollywood at the age of three, when she appeared in television commercials. Her debut on TV was in "The Adventures of Pete & Pete", a Nickelodeon show that aired in 1994. She landed her first major role at the age of 10 in the 1996 film "Harriet the Spy." She played in many Nickelodeon shows before being cast in "EuroTrip", a cult classic, in 2004, when she was still in her early 20s. She then played the most famous roles, such as Dawn Summers from the WB supernatural drama series "Buffy the Vampire Slayer", in 2000, and Georgina Sparks in the CW TV series "Gossip Girl", in 2007. Her other roles include the television films "Killing Kennedy," Sister Cities, and the science-fiction film "The Scribbler". Trachtenberg has also been seen in the music videos of the emo rock band Fall Out Boy, for their song "This Ain't a Scene It's An Arms Race" and Ringside's "Tired Of Being Sorry", directed by Joaquin Phoenix. (Reporting and editing by Danielle Broadway, Mary Milliken, Sandra Maler).
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US Fund Firms Face New Probe by Legislators over Climate Group Roles
Republican lawmakers have asked leading asset managers in the United States to explain their role in the planned overhaul of climate coalition, a top sectoral group. They are concerned that the efforts could be construed as collusion. Letters to the firms were seen by. The request for documents by companies such as Capital Group, State Street Global Advisors, and JPMorgan Asset Management is part of a planned evaluation within the Net Zero Asset Managers Initiative. NZAM, after previous pressures led BlackRock out of the group in January, asked its members to contribute via a series of meeting that U.S. House of Representatives Judge Jim Jordan stated in the letters might lead to "uncompetitive behavior." This material is just the latest in Jordan's and his committee's series of requests for information, and reports that suggest collusion between financial companies. Jordan has not charged any of the financial companies he named with violating federal antitrust laws over their climate initiatives, but several are facing litigation in Texas. The political challenges continue to deter corporate boards from joining global efforts against climate change. Some have even left coalitions in which they might be targeted. Since the election of Donald Trump who called climate change a hysteria, attacked a number green policies implemented by his predecessor, and pulled the country out from global efforts to combat climate change, the trend has increased. (Editing by Leslie Adler).
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Trump terminates oil deal with Venezuela
On Wednesday, U.S. president Donald Trump announced that he was reversing concessions made to Venezuela more than two-years ago by his predecessor Joe Biden. In a post published on Truth Social, Trump said that he would "reverse the concessions" made in the "oil transactions agreement, dated 26 November 2022." On that day in 2022, the Biden Administration granted Chevron the license to expand production in Venezuela. The company would then bring Venezuela's crude oil into the United States. The only license the Venezuelan government issued that day was this one. Trump didn't mention Chevron on the post. The White House or the U.S. State Department didn't immediately respond to questions about whether Trump meant Chevron’s license. Chevron didn't immediately respond to an inquiry for comment. Venezuelan President Nicolas Maduro, and his government, have always rejected the sanctions imposed by the United States. They claim that they are illegal measures that amount an "economic warfare" intended to cripple Venezuela. Maduro, his allies and the government have praised the resilience of the country despite the sanctions. However, they have in the past blamed the sanctions for some economic hardships. (Reporting and editing by Brendan O'Boyle, Rosalba O'Brien and Timothy Gardner)
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NRG Energy exceeds profit expectations for the fourth quarter on increased demand for electricity
NRG Energy, a leading energy company, beat Wall Street's expectations for the fourth quarter adjusted profit on Tuesday, thanks to a growing demand for electricity and lower fuel prices. It also announced its plans to serve more data centers over the next few years. The shares of the company increased by over 11% during morning trading. Utility companies benefit from the rising electricity consumption, mostly from the energy-guzzling, data-intensive data centers that are needed to scale Big Tech’s artificial intelligence technologies (AI). This has led NRG and its peers to increase their spending plans by tens or hundreds of millions of dollars. Robert Gaudette is the president of NRG’s Business and Wholesale operations. He said, "Growing electricity demand due to GenAI, and the construction of data centers, means that we need to create new, innovative partnerships in order to increase America's dispatchable generator quickly." In the first phase, the company signed Letters of Intent with PowLan, a data center developer, and Menlo Equities. The power targets were 500 Megawatts (MW). The work is expected to begin in 2026. Analysts said that the deals could scale up to as much as 6.5 gigawatts, which bodes well for the firm. NRG signed a similar agreement with GE Vernova, a maker of power equipment, and TIC, whose subsidiary is Kiewit, on Wednesday to develop new natural gas projects up to 5.4 GW. NRG's quarterly fuel costs decreased marginally compared to a year earlier, falling from $4.89 billion to $4.89. The company's Texas business unit, which is the biggest contributor to its profit, saw quarterly adjusted core earnings fall 14.4% from a year earlier to $327 millions, due to warmer weather. The gains were offset by the East and West segments. The Houston-based utility beat analysts' expectations by posting an adjusted profit per share of $1.56 in the fourth quarter. (Reporting and editing by Sahal Muhammad in Bengaluru, with Pooja Menon reporting from Bengaluru)
The US-Ukrainian Draft Minerals Deal: Key Provisions
Here are the key details from a draft framework agreement on minerals between Ukraine and United States. A copy of this document, dated February 25, has been reviewed.
RECONSTRUCTION FUND
The document's title is "BILATERAL AGREEEMENT ESTABLISHING THE TERMS AND CONDITIONS OF A RECONSTRUCTION FUND".
- Both countries will create a Reconstruction Investment Fund for the purpose of collecting and reinvesting revenues generated by Ukrainian resources. The fund will be managed by representatives from both countries.
After the conclusion of the current agreement, a subsequent agreement regarding the fund will "be promptly negotiated".
- Ukraine will contribute 50% of the revenues from the development in future of natural resources owned by the Ukrainian state.
- The agreement does not specify the assets, but says that they will be specified in a subsequent agreement which will go before parliament for a vote.
- Assets are defined as "minerals, hydrocarbons (oil, gas, etc.) and other materials that can be extracted, as well as other infrastructure related to natural resources assets, such as terminals for liquefied gas and port infrastructure."
"For the sake of clarity, these future sources of revenue do not include current sources of revenue which are already included in the general budget of Ukraine."
- The fund aims to invest in Ukrainian project and attract investments in public and privatized assets, including natural resources and infrastructure, ports, and state-owned companies.
Contributions will be reinvested in Ukraine for "the safety, the security and the prosperity of Ukraine".
SECURITY GUARANTEES
The U.S. Government will support Ukraine in its efforts to secure the security guarantees necessary to achieve a lasting peace. The U.S. government has not mentioned any concrete security guarantees that Kyiv is hoping to obtain.
"The Government of United States of America is supporting Ukraine's efforts in obtaining the security guarantees necessary to establish a lasting peace."
The United States has committed to a long-term commitment of financial support for the development and growth of an "economically prosperous Ukraine".
- The agreement includes "concrete measures to establish lasting peace and to strengthen economic resilience."
According to the draft, both U.S. Treasury Sec. Scott Bessent and Ukrainian Minister of Foreign Affairs Andrii Sybiha will sign the agreement. (Reporting and editing by PhilippaFletcher; YuliiaDysa, Tom Balmforth)
(source: Reuters)