Flagship

Nvidia revenue forecast disappoints

US chip giant Nvidia reported record second-quarter sales Wednesday, but gave a lackluster revenue forecast, fueling concerns on Wall Street. The earnings report for the world’s most valuable corporation was seen as a bellwether for whether massive investments in AI are paying off; Nvidia’s 56% quarterly sales gain was its smallest in more than two years. Analysts were also watching for signals on Nvidia’s China business: Beijing told local companies last month to stop buying Nvidia’s chips, after the company struck a deal with the US government to take a 15% cut of its China revenue. Nvidia didn’t record any recent sales of its H20 AI chip to China, and its forecast excluded data center revenue from the country.

China pushes for chip independence

China is boosting its homegrown artificial intelligence chip industry, but analysts argue it won’t be enough to compete with the US. Beijing aims to triple the number of AI chips it makes next year, the Financial Times reported, seeking to reduce reliance on US chipmaker Nvidia. Chinese tech giants like Huawei are racing to develop the next generation of processors that power advanced AI, and smaller players like Cambricon reported record profits this year thanks to surging domestic demand. Beijing may have “made notable progress toward independence,” The Diplomat wrote, but it still needs Nvidia: “China’s greatest weakness in the AI race is in hardware,” two US experts argued, and even its most advanced chips can’t outperform Nvidia’s China-specific one.

China fights delivery price war

China’s food delivery price war is denting company margins despite government pressure to reverse the competitive spiral. Rival apps have offered steep discounts and promises of hyper-fast delivery to get a leg up in the growing but low-margin market. Meituan’s profit fell 97% in the second quarter of this year, while JD.com’s new delivery businesses incurred an operating loss, Nikkei reported. Beijing regulators have summoned the companies several times to warn them against “vicious competition.” China is fighting what it calls “involution” across the economy, as aggressive price wars over items like cars and solar panels fuel deflation.

US Fed credibility damaged

US President Donald Trump’s attempt to fire a Federal Reserve governor threatens the central bank’s long-term credibility, regardless of the outcome, analysts and policymakers argued. Markets were subdued after Trump moved to dismiss Lisa Cook, partly because investors “have no historical template for a politicized Fed,” The Wall Street Journal’s Greg Ip noted, but they should assume that “in the next nine months, the Fed will set rates according to Trump’s preferences.” A former New York Fed president warned that Trump’s effort to control the Fed “is disruptive and the consequences of success would be dire.” It also sends a “chilling message” to monetary policymakers, former Fed Chair Janet Yellen wrote: “express disagreement with the president’s views and you are next.”

Trump hosts post-war Gaza meeting

US President Donald Trump on Wednesday presided over a meeting to discuss post war-Gaza plans, with a push to end the conflict this year. The White House said the “policy meeting” covered a range of issues including aid deliveries and hostage release. It comes as international mediators have complained that Israel is ignoring a US-backed ceasefire and hostage deal accepted by Hamas earlier this month. But the US and Israel are now focused only on a comprehensive agreement to end the two-year conflict, The New York Times reported, and Trump’s Middle East envoy on Tuesday appeared to rule out the prospect of a temporary truce.

SK bans phones in classrooms

South Korea passed a bill banning cell phones in schools nationwide, following similar moves by countries like Italy and France as governments hope to combat smartphone addiction among young people. Some studies have shown eliminating phones from classrooms has helped students learn better and reduced their anxiety, but other experts have questioned whether bans are the answer: One scholar postured that such punitive measures sidestep opportunities to encourage “technoskeptical thinking; that is, questioning our relationship with technology.” Korean teachers are divided over the new law; some said the country’s ultra-competitive college entrance exam is the real source of students’ mental health struggles.

Domestic travel blunts US tourism slump

A steep decline in foreign tourists to the US during the first months of Donald Trump’s presidency was at least partly offset by an increase in domestic travel, analysts said. Hotel bookings remain strong thanks to wealthier Americans who “never stopped traveling,” a Barclays analyst said, even as foreign travel to the US fell nearly every month in 2025. Europe’s largest trip operator told The Guardian that tighter US border controls were redirecting tourists elsewhere, while the sharpest downturn coincided with the onset of Trump’s trade war. Strong demand at the higher end of the market could be masking future pain, The Economist noted: “For a president obsessed with trade imbalances, more Americans spending money overseas, while fewer foreigners spend in America, should be troubling.”

AI is already reshaping the energy sector. The grid is its next frontier. New technology is enabling utilities to transform customer experiences, unlocking new ways to optimize the grid, and elevating service quality and resilience. But bringing these innovations to scale will present real challenges.

On the sidelines of Climate Week NYC, Semafor will sit down with Brookfield Managing Partner and COO of Renewable Power & Transition Natalie Adomait, Duke Energy SVP & CAO Bonnie Titone, and Kraken Chief Corporate Development and AI Officer Assaf Biderman to explore the opportunities and challenges of deploying AI solutions in the energy sector.

A central AI puzzle becomes clearer

Researchers are finding more evidence that artificial intelligence is damaging job prospects for young people. Since the advent of ChatGPT, a central question is whether AI is eliminating entry-level jobs; as the journalist Derek Thompson wrote, the consensus has wavered from “possibly, to definitely, to almost certainly no.” A new Stanford study, though, analyzed US payroll data from ADP and found that there were fewer job opportunities for young people in sectors deemed especially AI-exposed, such as software development. But as Wired noted, “the story isn’t that simple”: The study showed that the skills of more experienced workers in those industries insulated them from the AI-fueled disruption, and some new grads are finding tech jobs because of their AI know-how.

US fighter jets test AI systems

US fighter pilots took directions from an AI system for the first time in a test that could drastically change combat tactics. Top guns typically communicate with ground support staff who monitor radar and tell pilots where to fly. During the Air Force and Navy’s test this month, pilots instead consulted with an “air battle manager” technology to receive reports of nearby enemy aircraft, Fox News reported. Defense tech companies are increasingly building software that can change how wars are fought and won, changing the pace at which critical decisions are made. While the tech can help pilots intercept threats faster, experts say it also risks removing strategic, human judgment from the loop.