BYD Bests Tesla as Tariffs Kick In

BYD Bests Tesla as Tariffs Kick In

This week, the EU enacted tariffs of up to 45.3% on Chinese-made electric vehicles (EV), amid a global surge in sales for China’s EV giant BYD [BYDDY]. BYD reported a record-breaking quarterly revenue of over RMB200bn, surpassing Tesla’s [TSLA] $25.2bn for the first time, although Tesla still led in EV units sold for the quarter. The rise in Warren Buffett-backed BYD’s revenue aligns with robust government subsidies in China, incentivizing consumers to adopt EVs. 

Meta + Microsoft: Earnings Round-up

Microsoft [MSFT] and Meta [META] both reported solid quarterly growth, with Microsoft posting a 16% revenue increase to $65.6bn, surpassing estimates, and net income up by 11% to $24.7bn. However, Microsoft shares dipped following a warning on cooling growth and rising artificial intelligence-related (AI) expenses. Meta also beat expectations with a 19% rise in revenue to $40.6bn and a 35% jump in net income to $15.7bn. CEO Mark Zuckerberg noted strong AI momentum but forecast that the company’s AI investments would ramp up further into next year.

Samsung: Progress on NVDA Chips

Samsung Electronics [SSNLF] announced progress in supplying its advanced HBM3E AI memory chips to Nvidia [NVDA], aiming to ease investor concerns about lagging behind SK Hynix [HXSCL] in the booming AI memory market. Executive VP Jaejune Kim stated Samsung anticipates HBM3E deliveries by Q4. South Korea’s semiconductor production contracted 3% in September, according to Bloomberg, marking the first year-over-year decline in over a year and signaling a possible slowdown in AI-driven semiconductor demand.

BL Stock: Is BlackLine’s Top Line Set to Grow?

An enterprise software company specializing in cloud-based solutions for automating and streamlining financial close, accounting and compliance processes, BlackLine [BL] has drawn mixed reviews from analysts in recent months. High customer churn and low revenue retention growth point to limited potential for expansion; consistent earnings beats, meanwhile, hint at improvements to come. OPTO explores why BlackLine risks falling behind its competitors, and examines its fundamentals to explain the bull and bear cases for this stock.

AMD: Record Revenue Fails to Impress Investors 

Advanced Micro Devices [AMD] reported record quarterly revenue in its data center segment, boosted by surging demand for AI chips, and raised its full-year guidance for data center GPU revenue to $5bn, up from $4.5bn in July. However, shares tumbled to a one-year low as Q4 revenue projections fell slightly below estimates of $7.54bn. Weak performance in AMD’s gaming and embedded segments highlighted the challenge of competing with pure GPU players like Nvidia.

¥500bn Autonomous Driving Plan

Toyota [TM] and Nippon Telegraph and Telephone [NTTYY] have announced a ¥500bn investment in AI-based autonomous-driving software, targeting completion by 2028. The collaboration aims to leverage AI to enhance a network that can predict and respond to traffic accidents, potentially boosting road safety. Toyota CEO Koji Sato emphasized the importance of data transmission as software-defined vehicles grow in prevalence, indicating plans to make the technology accessible to other companies.

SMCI Craters on EY Resignation

Super Micro Computer [SMCI], whose stock had soared amid AI excitement, saw shares plummet over 30% on Wednesday following Ernst and Young’s (EY) resignation as its auditor. According to a Securities and Exchange Commission filing, EY cited recent information that impacted its confidence in the company’s governance and financial transparency. Back in September, OPTO detailed how a recent short-selling report had given many investors pause for thought when it came to SMCI stock.