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$NVDA ACCUSED OF BEING ‘TOO CLOSE TO CHINA'
In a letter seen by WSJ, Sens. Jim Banks and Elizabeth Warren told Nvidia CEO Jensen Huang the company’s planned Shanghai office “raises significant national security and economic security issues.” They said the move could give China access to sensitive AI tech.
An Nvidia spokesperson responded, saying the company is “simply leasing a new space for existing employees” and that “the scope of work will remain unchanged,” with no advanced chip designs sent to the site.
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$NVDA ACCUSED OF BEING ‘TOO CLOSE TO CHINA'
In a letter seen by WSJ, Sens. Jim Banks and Elizabeth Warren told Nvidia CEO Jensen Huang the company’s planned Shanghai office “raises significant national security and economic security issues.” They said the move could give China access to sensitive AI tech.
An Nvidia spokesperson responded, saying the company is “simply leasing a new space for existing employees” and that “the scope of work will remain unchanged,” with no advanced chip designs sent to the site.
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Wall St Engine
Goldman Sachs’ summary of the recent U.S. Court of International Trade ruling: https://t.co/Uas5KAunVn
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Goldman Sachs’ summary of the recent U.S. Court of International Trade ruling: https://t.co/Uas5KAunVn
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RT @wallstengine: The TACO trade is the new Trump trade
TACO = "Trump Always Chickens Out." https://t.co/vWrduDdxV6
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RT @wallstengine: The TACO trade is the new Trump trade
TACO = "Trump Always Chickens Out." https://t.co/vWrduDdxV6
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Wall St Engine
U.S TRADE TEAM VISITING INDIA 🇮🇳 ON JUNE 5 - 6; INDIA, US TRADE NEGOTIATIONS ARE ON TRACK SAYS INDIA OFFICIAL
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U.S TRADE TEAM VISITING INDIA 🇮🇳 ON JUNE 5 - 6; INDIA, US TRADE NEGOTIATIONS ARE ON TRACK SAYS INDIA OFFICIAL
INDIA TRADE MINISTRY OFFICIAL: INDIA AND US TRADE TALKS ARE PROGRESSING WELL, EXPECTS GOOD OUTCOME SOON tweet
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Wall St Engine
Bernstein Lowers PT on $S to $25 from $27 - Outperform
Analyst comments: "SentinelOne’s FQ1’26 earnings were negatively impacted by macro weakness in April, slipping deals out of the quarter and leaving their guidance beat at just more than 0% (+$1 million) relative to last year’s quarters at 1–3% beats. This was consistent with our channel checks into the quarter. We impute the April weakness primarily impacted their new customer lands, while existing customer expansion remained more consistent. The company reported more of an issue with larger enterprises than smaller.
Our model tweaks up quarter-over-quarter ARR growth in Q2 and lowers second-half revenue as a whole considering DOGE headwinds. Applying a 50/50 ~9x price-to-next-twelve-months revenue multiple from our Rule-of-40 regression, and our DCF model (13% WACC, 3% terminal growth), we reduce our price target to $25 and maintain our Outperform rating."
Analyst: Peter Weed
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Bernstein Lowers PT on $S to $25 from $27 - Outperform
Analyst comments: "SentinelOne’s FQ1’26 earnings were negatively impacted by macro weakness in April, slipping deals out of the quarter and leaving their guidance beat at just more than 0% (+$1 million) relative to last year’s quarters at 1–3% beats. This was consistent with our channel checks into the quarter. We impute the April weakness primarily impacted their new customer lands, while existing customer expansion remained more consistent. The company reported more of an issue with larger enterprises than smaller.
Our model tweaks up quarter-over-quarter ARR growth in Q2 and lowers second-half revenue as a whole considering DOGE headwinds. Applying a 50/50 ~9x price-to-next-twelve-months revenue multiple from our Rule-of-40 regression, and our DCF model (13% WACC, 3% terminal growth), we reduce our price target to $25 and maintain our Outperform rating."
Analyst: Peter Weed
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JPMorgan Lowers PT on $AI to $23 from $27 - Neutral
Analyst comments: "C3 .ai reported a slightly mixed quarter, with total revenue landing slightly ahead of expectations, although the outperformance was entirely driven by professional services, while subscription revenue landed 9% below consensus estimates. While total revenue grew 26% year-over-year, steady versus last quarter, subscription revenue grew only 9% year-over-year, marking a deceleration from 22% growth last quarter. Additionally, subscription revenue includes demo licenses, which are perpetual, non-recurring software licenses sold to partners and strategic customers, and represent approximately 40% of subscription revenue, with the strength in those licenses partially masking the softness in core subscription growth. For instance, demo licenses accounted for all of the sequential growth in subscription revenue, excluding which subscription revenue continued to decline sequentially.
Prioritized Engineering Services (PES) revenue—i.e., revenue from customers for custom engineering work to accelerate delivery of features that were already on the product roadmap—came in well ahead of expectations, driving professional services to beat consensus by over 75%, making up for the subscription shortfall. Profitability in the quarter was better than expected, although still in deeply negative territory for operating margins.
Overall, while we believe that C3. ai is going after a massive and rapidly evolving opportunity around Artificial Intelligence, and acknowledge the company has forged a number of solid strategic partnerships, we expect shares to continue to underperform our coverage given the lack of core subscription growth (excluding demo licenses), the lumpiness of the professional services revenue stream, in addition to a relatively poor profitability profile."
Analyst: Pinjalim Bora
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JPMorgan Lowers PT on $AI to $23 from $27 - Neutral
Analyst comments: "C3 .ai reported a slightly mixed quarter, with total revenue landing slightly ahead of expectations, although the outperformance was entirely driven by professional services, while subscription revenue landed 9% below consensus estimates. While total revenue grew 26% year-over-year, steady versus last quarter, subscription revenue grew only 9% year-over-year, marking a deceleration from 22% growth last quarter. Additionally, subscription revenue includes demo licenses, which are perpetual, non-recurring software licenses sold to partners and strategic customers, and represent approximately 40% of subscription revenue, with the strength in those licenses partially masking the softness in core subscription growth. For instance, demo licenses accounted for all of the sequential growth in subscription revenue, excluding which subscription revenue continued to decline sequentially.
Prioritized Engineering Services (PES) revenue—i.e., revenue from customers for custom engineering work to accelerate delivery of features that were already on the product roadmap—came in well ahead of expectations, driving professional services to beat consensus by over 75%, making up for the subscription shortfall. Profitability in the quarter was better than expected, although still in deeply negative territory for operating margins.
Overall, while we believe that C3. ai is going after a massive and rapidly evolving opportunity around Artificial Intelligence, and acknowledge the company has forged a number of solid strategic partnerships, we expect shares to continue to underperform our coverage given the lack of core subscription growth (excluding demo licenses), the lumpiness of the professional services revenue stream, in addition to a relatively poor profitability profile."
Analyst: Pinjalim Bora
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Piper Sandler: "Yesterday’s decision is a comprehensive defeat for the administration. Its legal arguments were roundly rejected. ...To side with the White House in this case is to argue the president can declare a bogus national emergency and do almost anything he wants. The CIT was having none of it and we believe it is very likely a comfortable majority of the Supreme Court will take the same position as the three-judge panel."
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Piper Sandler: "Yesterday’s decision is a comprehensive defeat for the administration. Its legal arguments were roundly rejected. ...To side with the White House in this case is to argue the president can declare a bogus national emergency and do almost anything he wants. The CIT was having none of it and we believe it is very likely a comfortable majority of the Supreme Court will take the same position as the three-judge panel."
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