In today’s briefing:
- Global Emerging Markets: Reporting Season Summary, 2Q2022
- How New U.S. Chip Restrictions Could Hit China’s Smart Car and Cloud Firms
Global Emerging Markets: Reporting Season Summary, 2Q2022
- The 200 largest weighted companies in the GEM index reported average EPS growth of +32.6%y/y for 2Q22, an acceleration from what was reported for 1Q22.
- 61% of companies delivered positive sales surprise, up from 58% in 1Q22, whilst 56% delivered positive EPS surprise, down from 64% in 1Q22.
- Historically, there has been a massive difference in relative share price performance between the largest positive versus negative surprise generators, for 3 months after the reporting date.
How New U.S. Chip Restrictions Could Hit China’s Smart Car and Cloud Firms
- New U.S. export restrictions on certain microchips used for machine learning could distrupt China’s development of autonomous driving technology and data centers, market insiders fear
- The export restrictions on Nvidia’s A100 and forthcoming H100 graphics processing units (GPU) will affect Chinese carmakers’ research into autonomous driving
- The Nvidia A100 is a GPU chip with 7-nanometer nodes while the H100 is a model with 4-nanometer nodes that is expected to hit the market this quarter
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