CNBC’s Jim Cramer on Friday told investors what to follow next week as earnings season kicks off, highlighting reports from JPMorgan, Netflix, Goldman Sachs and PepsiCo.

“Once we process the new tariffs, we’ve got a ton of earnings reports coming next week, so you better keep your eyes open,” he said.

Tuesday brings earnings from financial giants JPMorgan, Wells Fargo, Citigroup and BlackRock, and Cramer said he’ll be waiting to hear whether there has been any slowdown in spending or pick up in loan losses. While he said JPMorgan is “the star of the show,” he also cares about Wells Fargo, which is no longer subject to a punitive asset cap. Cramer predicted Citigroup’s report would be well-received, but he said BlackRock might tell “the most exciting story.” The Labor Department will release the consumer price index report on Tuesday, Cramer added, an important metric for the Federal Reserve when it makes decisions about interest rates.

On Wednesday, Goldman Sachs and Morgan Stanley are set to report, and Cramer said he’s optimistic both outfits will post strong quarters as mergers and acquisitions heat up. He said there could be “another round of semi buying” if semiconductor capital equipment company ASML releases a solid report. Bank of America and Johnson & Johnson will report on Wednesday as well. Cramer said Bank of America has put up consistently good earnings and suggested the stock was cheap because Berkshire Hathaway has been selling shares. Cramer said the pharmaceutical giant still has litigation hanging over its head.

Retail sales figures will come out Thursday, and Cramer said he’s worried about a slowdown as political chaos affects consumers. Abbott Laboratories, PepsiCo and Netflix are set to report Thursday. Cramer said Abbott’s quarter tends to be “misinterpreted in a negative way,” saying the healthcare name is one of his favorite companies. Cramer called PepsiCo “too cheap relative to its growth rate,” and he noted different factors that could be weighing on the stock, like the rise of GLP-1 weight loss drugs and scrutiny on junk food from Health and Human Services Secretary Robert F. Kennedy Jr. Cramer said he bets Netflix will report a great quarter, but he said the bar for the streaming giant is high.

On Friday, American Express, 3M and Charles Schwab will report earnings. According to Cramer, American Express tends to sell off even when the report is good. The industrial sector has been doing well lately, and Cramer said 3M might report one of the best quarters of the group. He was also optimistic about Charles Schwab, but said “the short-sellers like to come out and color the opening of trading when Schwab opens,” advising investors to be careful before they buy.

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China’s AI Chip Race: Can Domestic Alternatives Overtake Nvidia Amid US Restrictions?

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China’s AI Chip Race: Can Domestic Alternatives Overtake Nvidia Amid US Restrictions?

As the U.S. government tightens restrictions on China’s access to advanced semiconductors crucial for artificial intelligence (AI) development, Beijing is doubling down on its efforts to foster a self-reliant domestic AI chip industry. This ambition faces meaningful hurdles, including limitations on acquiring essential chip design and manufacturing technologies.Despite investing tens of billions of dollars, China’s AI chip capabilities still lag behind global leaders like Nvidia, but progress is being made, especially by companies like Huawei. According to SemiAnalysis, Huawei’s Ascend 910C GPU is now only about a year behind Nvidia’s export-restricted H20 chip in performance, signaling a narrowing gap.

The Four Pillars of China’s AI Chip Ecosystem

Building a competitive AI chip ecosystem requires strength across four key areas: chip design, fabrication, equipment, and memory. Hear’s a breakdown of China’s current standing in each:

1. AI Chip Design: Closing the Gap

Nvidia, an american company, dominates the AI chip design landscape with its graphics processing units (gpus). While competitors like AMD exist, Nvidia’s GPUs are the industry benchmark. China’s Huawei, through its HiSilicon division, is emerging as a strong contender. Its Ascend 910B GPU is already in mass production,and the next-generation Ascend 910C is anticipated to further reduce the performance gap with Nvidia. semianalysis estimates the 910C is only a year behind Nvidia’s H20.

Did You know? Nvidia doesn’t manufacture its own chips; it outsources production to foundries like TSMC.

2. AI Chip Fabrication: SMIC’s Progress and Challenges

Taiwan Semiconductor Manufacturing Company (TSMC) is the world’s leading chip foundry, producing the majority of advanced semiconductors. However, TSMC adheres to U.S. export controls, preventing it from taking orders from blacklisted companies like Huawei. This forces Chinese designers to rely on domestic foundries, primarily Semiconductor Manufacturing International Corporation (SMIC).SMIC can produce 7-nanometer chips, but lags behind TSMC’s more advanced 3-nanometer technology. Smaller nanometer sizes generally equate to greater processing power and efficiency. Despite this, SMIC is suspected of producing a 5-nanometer chip for Huawei’s Mate 60 Pro in 2023, demonstrating progress. TechInsights provides in-depth analysis of SMIC’s technological advancements.

3. Advanced Chip Equipment: the Lithography Bottleneck

SMIC’s ability to meet Huawei’s GPU demands is constrained by export controls, particularly from the Netherlands.ASML, a Dutch company, is the world’s leading supplier of advanced chipmaking equipment, specifically lithography machines. These machines are essential for transferring intricate patterns onto silicon wafers. The Netherlands, complying with U.S. regulations, blocks the sale of ASML’s most advanced extreme ultraviolet (EUV) lithography machines to China. Jeff Koch, an analyst at SemiAnalysis, notes that EUV lithography is the most significant barrier to China’s advanced chip production. ASML’s website offers details on their lithography technology.

4. AI Memory Components: Catching Up in HBM

high Bandwidth Memory (HBM) is a critical component for AI applications, working alongside GPUs to store data. South Korea’s SK Hynix, Samsung, and U.S.-based Micron are the leading HBM manufacturers.South Korea also adheres to U.S. chip restrictions,limiting HBM sales to China. In response, Chinese memory chip maker ChangXin Memory Technologies (CXMT) is developing HBM in partnership with Tongfu Microelectronics. However, analysts estimate that CXMT is still several years behind the global leaders in HBM technology. SK Hynix is a major player in the HBM market.

china’s AI Chip ambitions: A Summary

Area	Global Leader	China’s Status	Key Players
Chip Design	Nvidia (US)	Closing the gap	Huawei (HiSilicon), Enflame Technology, Biren Technology
Chip Fabrication	TSMC (Taiwan)	Lagging behind	SMIC
Chip Equipment	ASML (Netherlands)	Major bottleneck	SiCarrier Technologies
Memory (HBM)	SK Hynix (South Korea)	Early stages of development	CXMT, Wuhan Xinxin Semiconductor Manufacturing

Pro Tip: Monitor industry publications and analyst reports for the latest developments in China’s AI chip industry.

Evergreen Insights: The Broader Context

China’s push for domestic AI chip production is part of a broader strategy to achieve technological self-sufficiency and reduce reliance on foreign suppliers. This strategy is driven by concerns over national security and the potential for disruptions to supply chains. The U.S. export controls are intended to slow China’s technological advancement,but they also incentivize domestic innovation. The long-term impact of these policies on the global semiconductor industry remains to be seen.

Frequently Asked Questions About China’s AI Chip Industry

Why is China investing heavily in domestic AI chip development?: China aims to achieve technological self-sufficiency and reduce reliance on foreign suppliers due to national security concerns and potential supply chain disruptions.
How do U.S. export restrictions affect China’s AI chip industry?: U.S. export restrictions limit China’s access to advanced chip design and manufacturing technologies, hindering its progress but also incentivizing domestic innovation.
What are the main challenges facing China’s AI chip manufacturers?: The main challenges include lagging behind in chip fabrication technology, limited access to advanced chipmaking equipment, and catching up in the development of high-bandwidth memory (HBM).
Which Chinese companies are leading the charge in AI chip development?: Huawei (HiSilicon) is a leading chip designer, SMIC is the primary chip foundry, and CXMT is developing HBM memory chips.
How far behind is China compared to global leaders in AI chip technology?: while progress is being made,China still lags behind global leaders like Nvidia and TSMC in several key areas,particularly in chip fabrication and HBM memory.
What role does lithography play in AI chip manufacturing, and why is it a bottleneck for China?: Lithography is essential for transferring intricate patterns onto silicon wafers, and China’s access to advanced EUV lithography machines is restricted, limiting its ability to produce cutting-edge chips.

What are your thoughts on China’s ability to overcome these challenges? How will this impact the global tech landscape?

Disclaimer: This article provides general information and should not be considered as professional financial or investment advice.

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