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Hyunsoo Rim

Nvidia rises on report that the US has cleared H200 chip sales in China for 10 firms, Foxconn's profit beat adds to the optimism

Nvidia rose ~2% in premarket trading Thursday after two early-morning developments added to optimism around the chipmaker’s AI business: a report that the US has cleared H200 chip sales to around 10 Chinese firms, and a profit beat from its key server partner Hon Hai (also known as Foxconn).

The Taiwanese company, which is Nvidia’s major server assembler as well as Apple’s top iPhone assembler, posted first-quarter net profit of NT$49.92 billion, up 19% from a year earlier and ahead of the NT$48.88 estimate. The company also maintained its previous full-year outlook of "strong" revenue growth, driven by surging AI server demand.

Separately, Reuters reported early Thursday that the US Commerce Department has approved roughly 10 Chinese companies, including Alibaba, Tencent, ByteDance, and JD.com, to buy Nvidia’s H200 chips. Each approved customer can reportedly buy up to 75,000 chips under the US licensing terms.

Despite US approvals, however, no deliveries have been made so far, as Beijing reportedly remains hesitant amid concerns over supply-chain security, foreign tech dependencies, and support for its own domestic AI chip industry.

Complicating factors remain on the US side, too, as Chinese buyers need to certify that the chips will not be used for military purposes; Nvidia must certify sufficient US inventory; and the chips must physically pass through US territory under an arrangement negotiated by Trump, raising Chinese fears of tampering.

Before US export curbs tightened, Nvidia held ~95% of China’s advanced chip market, per Reuters. Huang has said its share of the country’s AI accelerators market has now effectively fallen to zero.

Exclusive: US clears H200 chip sales to 10 China firms as Nvidia CEO looks for breakthrough

Exclusive: US clears H200 chip sales to 10 China firms as Nvidia CEO looks for breakthrough

The Taiwanese company, which is Nvidia’s major server assembler as well as Apple’s top iPhone assembler, posted first-quarter net profit of NT$49.92 billion, up 19% from a year earlier and ahead of the NT$48.88 estimate. The company also maintained its previous full-year outlook of "strong" revenue growth, driven by surging AI server demand.

Separately, Reuters reported early Thursday that the US Commerce Department has approved roughly 10 Chinese companies, including Alibaba, Tencent, ByteDance, and JD.com, to buy Nvidia’s H200 chips. Each approved customer can reportedly buy up to 75,000 chips under the US licensing terms.

Despite US approvals, however, no deliveries have been made so far, as Beijing reportedly remains hesitant amid concerns over supply-chain security, foreign tech dependencies, and support for its own domestic AI chip industry.

Complicating factors remain on the US side, too, as Chinese buyers need to certify that the chips will not be used for military purposes; Nvidia must certify sufficient US inventory; and the chips must physically pass through US territory under an arrangement negotiated by Trump, raising Chinese fears of tampering.

Before US export curbs tightened, Nvidia held ~95% of China’s advanced chip market, per Reuters. Huang has said its share of the country’s AI accelerators market has now effectively fallen to zero.

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David Crowther

Micron has unseated Nvidia and Tesla as the market’s most heavily traded stock

The breathless rally in memory stocks, driven by optimism about the magnitude and longevity of the data center buildout creating a continued supply crunch across the AI supply chain, has put Micron within spitting distance of the $1 trillion market cap mark and given Sandisk a shot at doing something remarkable — topping the S&P 500 two years in a row.

It’s also reshaped where liquidity is deepest on Wall Street, with MU having taken the place of Nvidia as the most-traded stock, while Sandisk, despite being a fraction of the size, isn't far behind.

Technically, Micron’s daily volumes first exceeded Nvidia’s in a single session back on March 19th, but one session isn’t really conclusive evidence to crown Micron king. However, over the last 9 trading days, Micron’s volumes have eclipsed Nvidia’s on 6 of them — and the rolling 5-day average of their turnover now shows clear daylight between the two, with $47 billion changing hands in Micron, compared to just $34 billion in Nvidia, per data from Bloomberg.

Sandisk — which, with a market cap of close to $200 billion, really has little business being in the conversation — is also picking up heat. The stock’s turnover even briefly surpassed that of Tesla, which swapped the crown back-and-forth with Nvidia for much of 2025.

Indeed, when compared to its peers of a similar size (members of the S&P 500 with a market cap less than $250 billion), Sandisk is quite the exception. The company is turning over more than 10% of its market cap on most trading days. The only stock that comes anywhere close to that level is Lumentum, another AI winner.

markets
J. Edward Moreno

Doximity sinks on gloomy full-year revenue outlook, says AI compute costs are weighing on margins

Doximity plunged in premarket trading after it reported quarterly earnings results that missed Wall Street expectations and gave a disappointing full-year outlook as high AI costs weigh on margins.

For its fiscal Q4 2026, which represents the first three months of this year, the company reported adjusted earnings per share of $0.26, below the $0.28 analysts polled by FactSet were penciling in. Doximity said the profit miss was “driven by AI compute costs.”

And those higher AI costs will follow them into the current fiscal year, which ends next March. For FY 2027, it expects adjusted EBITDA to hit between $323 million and $335 million, lower than the $349.5 million analysts were expecting. Doximity expects FY 2027 revenue to come in between $664 million and $676 million — also below the $682 million that analysts had forecasted.

Doximity, which makes digital tools for healthcare professionals, is building AI products for tasks like medical scribing. Last year, Doximity acquired Pathway Medical, a medical AI startup, for $63 million “and now we're spending against the opportunity it unlocked,” CEO Jeffrey A. Tangney told analysts.

Tangney said the company has “forecasted minimal AI revenue contribution this fiscal year, while allowing for a wider range of AI investments and related expenses, meaning higher R&D, compute and marketing spend, that will weigh on near-term margins.”

“We think that's the right trade,” Tangney said. “This is our AI investment year.”

markets
Paige Oamek

Lightwave Logic drops following Q1 earnings

Lightwave Logic released its Q1 earnings report Wednesday postmarket. The company reported increasing shortfalls as the photonics company continues to scale. Investors reacted by pushing the stock slightly down after-hours.

Here are the numbers: 

  • Revenue of $29,000, 27% growing year-over-year.

  • Net loss of $6.3 million, widening 34% year-over-year.

The material photonics company, which designs and provides polymers to speed the flow of information from chip to chip, hit a four-year high this week and has risen nearly 400% since January. Daily options volumes on the stock hit a record high ahead of this release.

The stock has been boosted by an explosion of AI data center demand and interest in the growing industry of photonic integrated circuits for data center connectivity.

On their afternoon earnings call, Lightwave Logic CEO Yves LeMaitre reiterated that he believes the company is "positioned to help address some of the most important challenges facing AI infrastructure over the coming decade."

markets
Helena Cheng

USA Rare Earth gains after delivering better-than-expected quarterly results

USA Rare Earth is rising in postmarket trading after releasing better-than-expected Q1 results.

Key numbers:

  • Revenue of $5.67 million (compared to analyst estimates of $4.22 million).

  • An adjusted loss per share of $0.12 (estimate: a $0.14 loss).

Management aims to achieve 3,000 metric tons per annum of run rate for metal-making and alloy capacity by year-end, along with 600 MTPA of run rate for magnet manufacturing capacity.

The results come during a period of unease in the global rare earth market. China previously moved to drastically curb critical mineral access in October, adding five new elements to its export controls and freezing supplies to semiconductor manufacturers. These materials may be on the agenda during discussions between US and Chinese leadership this week.

In response, the US has scrambled to build domestic production buffers. In January 2026, USA Rare Earth secured a landmark $1.6 billion government-backed package from the Department of Commerce, which included a $1.3 billion senior secured loan under the CHIPS and Science Act and $277 million in direct incentives in exchange for a 10% federal equity stake.

The company also announced a definitive agreement to acquire Serra Verde Group, owner of the Pela Ema rare earth mine and processing plant in Goiás, Brazil. The $2.8 billion acquisition is expected to close in the third quarter of 2026, subject to customary closing conditions and regulatory approvals.

markets
Paige Oamek

Cisco surges on Q3 earnings beat and better-than-expected Q4 outlook

Cisco rose double digits after beating Q3 revenue and earnings estimates and giving optimistic projections due to increasing demand from the AI industry.

Shares were 13% higher in after-hours trading.

The tech company reported: 

  • Q3 revenue of $15.8 billion (compared to analyst estimates of $15.6 billion).

  • Q3 adjusted earnings per share of $1.06 (estimate: $1.04).

  • Q4 revenue guidance between $16.7 billion and $16.9 billion (estimate: $15.8 billion).

  • Q4 adjusted earnings guidance of $1.16 to $1.18 (estimate: $1.07).

Management upped its outlook for expected orders from hyperscalers this fiscal year to $9 billion from $5 billion.

Shares in the company have climbed more than 60% over the past calendar year and traded at record highs this week — surpassing $100 on Wednesday afternoon — fully riding the AI infrastructure wave. All these data centers need Cisco’s networking equipment as well as more from the likes of Arista Networks and HP Enterprise, both of which are being boosted postmarket from these results.

Chuck Robbins, chair and CEO of Cisco, said:

“Cisco is well positioned as the critical infrastructure for the AI era, building on our technology leadership and customer trust, while innovating at the speed and scale that our dynamic world demands.”

While demand for Cisco’s products has been climbing, the price of memory also remains elevated — which can create tension between booming sales and pressure on profitability.

Looking toward the full year, the company updated its outlook to expect revenue ranging between $62.8 billion and $63.0 billion, ahead of analysts’ estimates of $61.1 billion.

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