Nvidia, Tesla, SoftBank, C3.ai, Bitmine and Ørsted

Nvidia shares dipped in pre-market trading on Monday following reports that the chipmaker has agreed to an unprecedented arrangement to pay the US government 15% of its China-derived revenues in exchange for export licences.

The revenue share applies to Nvidia’s H20 chips, according to the Financial Times, citing a US official, noting that the Trump administration had yet to determine how to use the money.

The chipmakers agreed to the quid pro quo arrangement as a condition for obtaining export licenses for the Chinese market that were granted last week, according to the unnamed official.

According to export control experts, no US company has ever agreed to pay a portion of their revenues to obtain export licenses, the newspaper said.

Donald Trump has encouraged firms, and countries, to make investments in the US to, in his words, “buy down” the tariff rates he imposes.

AMD (AMD) has also reportedly agreed to pay 15% of its revenue to the US government, in sales of its MI308 chip.

Shares in Tesla rose in pre-market trading after chief executive Elon Musk said the company would increase its focus on autonomous driving systems, including Full Self-Driving (FSD) and Autopilot.

In a post on X, Musk confirmed the disbanding of the entire Dojo supercomputer team. The group had been tasked with developing Tesla’s in-house artificial intelligence (AI) chips to support its self-driving technologies and the Optimus humanoid robot.

He added that Tesla’s AI5 and AI6 chips would assume the role previously held by the Dojo team. “It doesn’t make sense for Tesla to divide its resources and scale two quite different AI chip designs,” Musk said in the post.

The company plans to use its AI5 and AI6 chips for both training and inference of its autonomous driving systems, such as FSD and Autopilot. The same chips will also be deployed in Tesla’s consumer product line, including the Optimus robot, the Cybercab, and the next-generation Roadster.

SoftBank has selected several leading investment banks to assist with a potential initial public offering in the United States for PayPay, its Japanese payments app operator, two people familiar with the matter told Reuters.

Goldman Sachs (GS), JPMorgan Chase & Co, Mizuho Financial Group (MFG), and Morgan Stanley are leading preparations for the listing, the sources said.

The PayPay offering may raise more than $2bn (£1.48bn) from investors when it takes place, which the sources said could be as soon as the final quarter of this year.

The individuals cautioned that factors including timing and the amount the IPO could raise are subject to market conditions.

The potential listing comes on the heels of a strong earnings report from the Tokyo-based tech conglomerate. Last week, SoftBank revealed it made a net profit of $2.9bn in its first quarter, boosted by its investment in Nvidia (NVDA). It reported net income of ¥422bn ($2.9bn) in its fiscal first quarter ending in June, beating analysts’ expectations of closer to ¥128bn, according to LSEG (LSEG.L) data.

Shares in C3.ai fell by around 20% in pre-market trading after the enterprise AI software company released preliminary fiscal first-quarter results that came in well below expectations.

The California-based artificial intelligence software maker forecast revenue of $70.2m to $70.4m for the quarter ended in July, around 33% below the midpoint of its previous guidance range of $100m to $109m. The figure also represents a 19% year-on-year decline.

Adjusted operating losses are expected to range between $57.7m and $59.9m, roughly double the $23.5m to $33.5m loss the company had originally projected.

“The good news is we have completely restructured the sales and services organisation… The bad news is that sales results in Q1 were completely unacceptable,” Thomas Siebel, chairman and CEO of C3.ai, said.

In July, the company announced that Siebel would step down for health reasons. In a company release, Siebel said he had been diagnosed with an autoimmune disease that has caused “significant visual impairment.”

DA Davidson downgraded C3.ai from Neutral to Underperform and reduced its price target to $13.00 from $25.00 following the company’s preliminary results announcement.

Shares in BitMine were up 14% ahead of the US opening bell on Monday, extending Friday’s 25% surge, after Ethereum (ETH-USD) crossed the $4,000 threshold for the first time this year.

The crypto mining firm has carved out a unique position by amassing and holding more than 833,000 ETH tokens, a stash worth nearly $3bn, making it the largest public holder of Ethereum.

As a result, BitMine’s share price tends to closely track the price of Ethereum. The latest rally in ETH has once again driven gains in BitMine’s stock, with the cryptocurrency’s break above $4,000 seen as a significant technical and psychological milestone for investors.

Because of this, the company’s stock tends to move in tandem with Ethereum’s price: when ETH rises, BitMine’s value typically follows. This close connection was a key driver behind the recent rally.

Crossing the $4,000 level is widely regarded as a significant milestone, with many investors expecting Ethereum to climb past $6,000 later this year. At the time of writing, the cryptocurrency was trading at $4.278.

Shares in the Danish offshore wind developer crashed by over 27% in early trading in Copenhagen as its aggressive US expansion appears to have backfired under Trump.

The company, which is the world's biggest offshore wind developer, said it is planning a 60bn Danish Kroner (£.6.98bn/$9.4bn) rights issue, following a “material adverse development” in the US market that scuppered efforts to sell a stake in its Sunrise Wind project off the New York coast.

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The Trump administration has been vocal against the offshore wind industry, which was championed by Joe Biden, which has hit the valuation of Ørsted's projects. The company relies on selling stakes in projects to help fund its portfolio.

Orsted will be offering existing shareholders first refusal on the new shares under the planned move.

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