Author

admin

Browsing

The White House will now oversee which news outlets will be part of the White House press pool, rather than the White House Correspondents Association (WHCA), the White House press secretary said Tuesday. 

While the WHCA customarily has had the authority to choose the rotation of news outlets that have access to the president in the Oval Office and other areas with limited access, the Trump administration is upending that policy. 

‘Legacy outlets who have participated in the press pool for decades will still be allowed to join, fear not,’ White House press secretary Karoline Leavitt told reporters during a briefing Tuesday. ‘But we will also be offering the privilege to well-deserving outlets who have never been allowed to share in this awesome responsibility.’ 

But President Donald Trump’s White House isn’t the only one to roll out controversial policies regarding press access. 

In 2023, more than 440 reporters lost press credentials after President Joe Biden’s White House modified its rules for eligibility for permanent passes.

Credentialed White House press members dropped from 1,417 members to 975 members after the White House unveiled new standards requiring an annual renewal of hard passes, Politico reported in 2023. Journalists without hard passes were still authorized to apply for day passes to the White House. 

The Biden White House policy was launched in May 2023 and required reporters to prove employment with ‘an organization whose principal business is news dissemination’ and show that they have ‘accessed the White House campus at least once during the prior six months for work, or have proof of employment within the last three months to cover the White House.’

The Biden White House defended its decision to cut off routine access to these reporters, claiming many of the journalists whose passes expired hadn’t accessed the White House in the previous three months. 

‘At the time we initiated this process in early May, roughly 40% of hard pass holders had not accessed the White House complex in the prior 90 days,’ the White House said in a 2023 statement to Politico. ‘We think this demonstrates we’ve led a thoughtful and thorough process that preserves robust media access to campus for everyone who needs it — whether that be with a hard pass or a day pass.’

Leavitt announced in January that the Trump White House would work to ‘restore the press passes of the 440 journalists whose passes were wrongly revoked by the previous administration.’ 

On Tuesday, Leavitt said the White House’s decision aimed to ‘give the power back to the people’ in an attempt to ensure that ‘all journalists, outlets and voices deserve a seat at this highly coveted table.’ 

In response, WHCA President Eugene Daniels said the WHCA did not receive any notice in advance of the White House’s decision and said the move ‘tears at the independence of a free press in the United States.’

‘It suggests the government will choose the journalists who cover the president,’ Daniels said. ‘In a free country, leaders must not be able to choose their own press corps.’

Fox News’ Gabriel Hays contributed to this report. 

This post appeared first on FOX NEWS

President Donald Trump signed an executive order on Wednesday requiring government payments and travel expenses to be justified and made public where possible.

The requirement is part of Trump’s executive order to implement the cost efficiency initiative for the Department of Government Efficiency (DOGE).

Using modern technology, the order aims to transform spending by putting all federal grants and contracts through rigorous standards to justify their existence. Trump’s order will have federal agencies acting immediately, reviewing all contracts and grants for waste, fraud and abuse.

Travel expenses and government payments are also being analyzed closely, as they must be justified and made public if possible.

The order also tells agencies to treat their credit cards as if they were frozen for 30 days.

‘To the maximum extent permitted by law, all credit cards held by agency employees shall be treated as frozen for 30 days from the date of this order, except for any credit cards held by employees engaged in, or charges related to employees utilizing such credit cards for, disaster relief or natural disaster response benefits or operations or other critical services as determined by the Agency Head, and subject to such additional individualized or categorical exceptions as the Agency Head, in consultation with the agency’s DOGE Team Lead, deems appropriate,’ Trump’s executive order reads.

Working with DOGE, agency heads will review and terminate any contracts deemed unnecessary.

Additionally, the executive order will look at how the government manages property, requiring the General Services Administration to submit a plan for disposing of unnecessary owned or leased properties.

Trump’s order is being implemented to add ‘discipline to a wasteful system.’

‘The existing system fails to safeguard taxpayer dollars or promote merit among contractors and grant recipients,’ White House officials said in a fact sheet, noting that the government spends large sums of money on contracts and grants.

The sheet also notes that in fiscal year 2023, the government committed about $759 billion in contracts.

‘This flood of spending historically had minimal safeguards,’ the fact sheet read. ‘In the Biden Administration, GSA directed its efforts to promoting diversity, equity, and inclusion (DEI) rather than merit and efficiency.’

Since his return to the Oval Office, Trump has set sort of a wildfire on federal government spending, unleashing DOGE, which is led by billionaire Elon Musk.

According to the DOGE website, the total estimated savings as of Tuesday were $65 billion, which is a combination of fraud detection and deletion, contract and lease cancelations, contract and lease renegotiation, asset sales, grant cancelations, workforce reductions, programmatic changes and regulatory savings. The site is updated two times a week.

The DOGE site also has a ‘Wall of Receipts,’ showing a breakdown of how much was saved and where the savings were found.

This post appeared first on FOX NEWS

Hamas released four dead hostages to the Red Cross on Thursday, marking another step in the first phase of the cease-fire between the terrorist group and Israel.

The exchange, which took place in the Gaza Strip, was confirmed by an Israeli security official. Egyptian mediators assisted in the delivery of the caskets, which Israeli officials have begun to identify.

At the same time, Israel released hundreds of Palestinian prisoners in a move that was previously delayed. Red Cross convoys assisted with the transport of the detainees.

Israeli Prime Minister Benjamin Netanyahu’s office previously confirmed the exchange on Wednesday, noting that it was likely to take place without the humiliating ‘ceremonies’ that Hamas has engaged in prior.

On Saturday, Netanyahu temporarily delayed the seventh hostage-prisoner exchange in protest of Hamas’s release ceremonies, which were used to generate propaganda. In one ceremony, hostages were forced to pose with Hamas fighters and kiss militants on the head.

‘In light of Hamas’s repeated violations, including the ceremonies that humiliate our hostages and the cynical exploitation of our hostages for propaganda purposes, it has been decided to delay the release of terrorists that was planned for yesterday until the release of the next hostages has been assured, and without the humiliating ceremonies,’ Netanyahu’s statement said.

Hamas had called the delay a ‘serious violation,’ though the militant group’s treatment of prisoners was condemned by international groups, including the United Nations.

‘Under international law, any handover of the remains of [the] deceased must comply with the prohibition of cruel, inhuman or degrading treatment, ensuring respect for the dignity of the deceased and their families,’ the United Nations Geneva said on X last week, attributing the quote to High Commissioner for Human Rights Volker Türk.

Israeli United Nations Ambassador Danny Danon told Fox News Digital that Hamas’ ‘ceremonies’ were ‘evil and depraved.’

‘For 16 months, Israel has been fighting a deranged terrorist organization that places no value on human life, especially if it is Israeli or Jewish — all while international institutions like the U.N. refrained from condemning Hamas and formally demanding the immediate return of our hostages,’ Danon said.

The Associated Press and Fox News’ Rachel Wolf and Yael Rotem-Kuriel contributed to this report.

This post appeared first on FOX NEWS

U.S. Supreme Court Justice John Roberts on Wednesday paused a federal judge’s order that required the Trump administration to pay around $2 billion in foreign aid funds to contractors by midnight. 

The ruling comes after the Trump administration asked the Supreme Court for an emergency order to block the release of U.S. Agency for International Development (USAID) funding, which the federal judge had required by midnight. Officials had said they would not be able to comply with the judge’s order.

The Trump administration said U.S. District Judge Amir H. Ali’s order had created ‘an untenable payment plan at odds with the President’s obligations under Article II to protect the integrity of the federal fisc and make appropriate judgements(sic) about foreign aid – clear forms of irreparable harm.’

Any response from the groups that are fighting the Trump administration is due before Friday at 12 p.m., meaning the pause could potentially be relatively short-lived. 

The Trump administration said it was eliminating more than 90% of USAID’s foreign aid contracts and $60 billion in overall U.S. assistance around the world, putting numbers on its plans to eliminate the majority of U.S. development and humanitarian help abroad.

The cuts detailed by the administration would leave few surviving USAID projects for advocates to try to save in what are ongoing court battles with the administration.

Wednesday’s disclosures also give an idea of the scale of the administration’s retreat from U.S. aid and development assistance overseas, and from decades of policy that foreign aid helps American interests by stabilizing other countries and economies and building alliances.

The memo said officials were ‘clearing significant waste stemming from decades of institutional drift.’ More changes are planned in how USAID and the State Department deliver foreign assistance, it said, ‘to use taxpayer dollars wisely to advance American interests.’

President Donald Trump and ally Elon Musk have hit foreign aid harder and faster than almost any other target in their push to cut the size of the federal government. Both men say USAID projects advance a liberal agenda and are a waste of money.

The administration has filed an emergency appeal to the Supreme Court in one other case so far, arguing that a lower court was wrong to reinstate the head of a federal watchdog agency after Trump fired him.

The Associated Press contributed to this report. 

Fox News’ Bill Mears and Shannon Bream contributed to this report.

This post appeared first on FOX NEWS

Sen. Marsha Blackburn, R-Tenn., advocated for the Trump administration to release the full, unredacted records related to sexual predator and financier Jeffrey Epstein as Attorney General Pam Bondi now says the Department of Justice could release the records Thursday. 

‘I think tomorrow…breaking news. Right now, you’re going to see some Epstein information being released by my office. What you’re going to see, hopefully tomorrow, is a lot of flight logs, a lot of names, a lot, a lot of information. But it’s pretty sick what that man did,’ Bondi told Fox News’ Jesse Watters Wednesday night.

Her comments came hours after Fox News Digital spoke with Blackburn, who has been among the most vocal Capitol Hill lawmakers calling to release the Epstein records.

‘For me, this is not about the celebrity. And I know that there are many people that want to see who all flew on his planes and guested at his Caribbean island,’ she told Fox News Digital on Tuesday. ‘But let’s break these human trafficking rings apart. Let’s get these people apprehended. Let’s get them prosecuted. Let’s get them jailed. Let’s put an end to this and save lives.’

On Monday, Blackburn sent a letter to newly sworn-in FBI Director Kash Patel calling for the complete flight logs from Epstein’s private jet and helicopter, records belonging to Epstein’s partner Ghislaine Maxwell, and video footage from Epstein’s Palm Beach, Florida residence.

The Tennessee Republican has long advocated for the release of the Epstein documents, arguing that making the full set of records public will expose the complex network behind global human and sex trafficking.

‘This will give us insight into this web of human and sex traffickers that has just spread like wildfire across the globe, and it will help us to begin to get accountability for the victims of this horrendous trade,’ she said.

Blackburn said that viewing the intricacies of Epstein’s ring will help elected officials uncover the truth and get to the ‘bottom of this.’

‘At the time I started this, I was the top Republican on the Senate Judiciary Subcommittee on Human Rights and the Law,’ she said. ‘So to get this information, we can begin to break these rings apart and find out who he [Epstein] was in business with, who his associates and affiliates were.’

Blackburn said that the sex trafficking web – a $150 million per year business – needs government accountability.

‘Law enforcement tells me regularly, we need to figure out who constructed this network, who is all involved in this web, [and] how it tied into other countries,’ she said. ‘And to get information and insight to help us begin to break apart the network and get accountability is going to be vitally important.’

The senator noted that the mystery surrounding Epstein’s unexpected death prior to his 2019 trial feeds into the public’s curiosity and skepticism.

‘I do find it very interesting that the French human trafficker and then Epstein both died in jail while they were awaiting trial,’ she said. ‘This speaks to the curiosity that people have, and the concern that this was much larger than just flights to an island. That this was a part of a global human trafficking and sex trafficking ring.’

Attorney General Pam Bondi said Friday that Epstein’s client list was awaiting review, and that she was also looking over the President Kennedy and Martin Luther King assassination files.

‘It’s sitting on my desk right now to review,’ Bondi told ‘America Reports’ host John Roberts Friday about the Epstein files. ‘That’s been a directive by President Trump.’

During his campaign, President Donald Trump promised the declassification of the files. The House’s Task Force on the Declassification of Federal Secrets is scheduled to hold its first public hearing on March 26.  

The White House and the FBI did not immediately respond to a request for comment from Fox News Digital.

This post appeared first on FOX NEWS

U.K. Prime Minister Keir Starmer is staring down a geopolitical tightrope ahead of his meeting with President Donald Trump on Thursday as he looks to stay strong on support for Ukraine, as well as maintaining relations with the U.S. — London’s chief ally. 

But the tense international atmosphere is not the only hurdle Starmer is facing following his waning approval ratings at home.

The U.K. saw a massive political shake-up in July 2024 after voters ended the Conservative Party’s 14-year reign and voted in the Labour Party under Starmer. But in the months following his election, Starmer’s approval ratings reportedly took a historic dip.

Controversial topics like axing a winter fuel repayment program, policy reversals relating to political donations, and partisan uproar over issues like immigration, knife crime and a deal that could hand over the Chagos Islands to Mauritius along with more than $11 billion, have reportedly contributed to Starmer’s tanking support. 

Colin Brazier, an award-winning retired English journalist and veteran observer of the U.K.’s culture wars, told Fox News Digital that with some eight months in power, there’s a reason why Starmer’s approval ratings have ‘fallen faster than almost any previous incumbent.’

‘Why?’ he asked. ‘New taxes on everything from schools to farms and a sense that Britain is ‘undeveloping’ before our very eyes. Immigration on a scale never before seen is testing the Welfare State, transport network, housing stock and National Health Service to destruction. Starmer’s Labour Party detests MAGA at a cellular level. But their beleaguered leader needs to show statesmanship, and a picture with the president does that.’

But one foreign policy expert believes that the Starmer-Trump meeting could be an opportunity for the prime minister to gain some points at home while also soothing diplomatic ties. 

‘I think what he’s obviously been doing is trying to take the edge off some of President Trump’s sort of more surprising statements… then trying to put Britain in the best positive light when it comes to the president’s considerations,’ Alan Mendoza, Executive Director of the Henry Jackson Society, a non-partisan U.K.-based think tank told Fox News Digital.

‘The polling tells you that President Trump is very unpopular in Britain,’ Mendoza said. ‘But that doesn’t mean that the British government is going to listen to those opinion polls. The British government has to govern.

‘British people may have a certain view of President Trump, but the British government, the British political class, may well have a very different view of what he’s trying to achieve and where they should be positioning themselves,’ he added.

Despite Starmer’s waning ratings and low favorability of Trump among Brits, Mendoza doesn’t think these factors will shape how Starmer approaches his meeting with Trump on Thursday.

Instead, Mendoza pointed to the successful meeting between Trump and French President Emmanuel Macron, as an indicator of how Starmer’s discussions could go.

‘I think there would be a path to great popularity if he’s able to shape President Trump’s thinking on certain subjects,’ Mendoza said. 

Starmer’s ability to make inroads with Trump could have immediate implications as issues that directly impact Brits’ pockets are expected to be top agenda items — including the looming U.S. tariffs on U.K. steel.

The British embassy confirmed to Fox News Digital that while topics involving U.S.-U.K. defense alliances and support for Ukraine are expected to be addressed, topics involving shared economic and trade-based partnerships will also be prioritized. 

Trump’s threat to slap 25% tariffs on U.K. and EU imports is a topic Britain hopes it is uniquely positioned to address given its ‘very specialized’ trading position on steel and aluminum, U.K. secretary for business and trade, Jonathan Reynolds, told the BBC this month.  

A British embassy spokesperson said Starmer will look to highlight the economic ‘synergies’ shared between the U.K. and U.S. when it comes to tech, AI, trade and investments.

‘That’s going to be a big priority,’ spokesman Ed Roman said. 

This post appeared first on FOX NEWS

President Donald Trump’s nominee for labor secretary is expected to pass a key vote before the Senate Committee on Health, Education, Labor and Pensions (HELP) on Thursday after picking up Democrat support from Sen. Maggie Hassan, D-N.H. 

Lori Chavez-DeRemer’s past support for the Protecting the Right to Organize (PRO) Act jeopardized her confirmation last week, when Sen. Rand Paul, R-Ky., said he would not vote for her if she continued to support the PRO Act. Paul’s reluctance meant Chavez-DeRemer would likely need a Democrat’s vote to pass a key confirmation hurdle. 

Hassan’s support, as a Democrat on the HELP Committee, all but confirms Chavez-DeRemer will pass through her committee vote.

‘The Department of Labor plays an integral role in supporting workers and small businesses alike, and after hearing significant support from constituents, including members of labor unions in New Hampshire, I will support Representative Chavez-DeRemer’s nomination as Secretary of Labor,’ Hassan shared in a statement to Fox News Digital. 

Hassan admitted that she ‘may not agree on everything’ with Chavez-DeRemer, but she is ‘qualified’ to serve and earned ‘significant support’ from New Hampshire voters.

‘Though we may not agree on everything, after meeting with Representative Chavez-DeRemer and listening to her testimony during her confirmation hearing, I believe that she is qualified to serve as the next secretary of labor, and I look forward to working with her to support New Hampshire’s workers and small businesses,’ Hassan added. 

Chavez-DeRemer supported the PRO Act as a representative for Oregon’s 5th Congressional District but told senators during her confirmation hearing that she no longer supports overturning Republican-supported right-to-work laws under the PRO Act.

The PRO Act would effectively kill state-level laws that prevent employers and unions from requiring workers to pay union dues as a condition of their employment. Republicans oppose the PRO Act for overturning right-to-work laws. 

Chavez-DeRemer could still earn back Paul’s vote after she distanced herself from the PRO Act during her Senate hearing. With Hassan’s support, Chavez-DeRemer is no longer reliant on Paul for confirmation. 

‘If she wanted to make a public statement saying that her support for the PRO Act was incorrect and she no longer does, then I’d think about her nomination,’ Paul told Fox News Digital in a statement ahead of Chavez-DeRemer’s hearing. 

‘So you no longer support the aspect of the PRO Act that would have overturned state right-to-work laws?’ Paul asked during the hearing. 

‘Yes, sir,’ she replied. 

Paul’s office did not respond to Fox News Digital’s request for comment on how he will vote in committee today.

Chavez-DeRemer testified before the HELP Committee on Feb. 19. If the committee votes to send Chavez-DeRemer’s nomination before the full Senate, Majority Leader John Thune, R-S.D., can file a motion to end Senate floor debate on the nominee, triggering a cloture vote to halt deliberations. Once debate closes, senators cast their final confirmation vote. 

During her hearing, Chavez-DeRemer advocated for trade school investments to expand ‘educational pathways beyond the traditional four-year degree’ to strengthen the American workforce. She said she is committed to leveling the playing field for American businesses, workers and unions. 

Chavez-DeRemer also thanked Trump and credited him with the ‘single greatest political achievement of our time’ in building a ‘new coalition of working-class Americans.’

‘President Trump has united a new coalition of working-class Americans like never before. With 59.6% of Teamsters backing him, historic support from African-American and Latino voters, and record-breaking turnout in once-solid blue cities and states, Americans are speaking loud and clear. They are calling for action, progress and leadership that puts the American worker first,’ Chavez-DeRemer said.

Trump nominated Chavez-DeRemer for secretary of labor less than three weeks after he was elected president.

‘Lori has worked tirelessly with both Business and Labor to build America’s workforce, and support the hardworking men and women of America,’ Trump wrote.

‘I look forward to working with her to create tremendous opportunity for American Workers, to expand training and apprenticeships, to grow wages and improve working conditions, to bring back our manufacturing jobs. Together, we will achieve historic cooperation between Business and Labor that will restore the American Dream for Working Families,’ he added.

Fox News Digital’s Julia Johnson contributed to this report.

This post appeared first on FOX NEWS

Home Depot on Tuesday topped Wall Street’s quarterly sales expectations, even as elevated interest rates and housing prices dampened consumer demand for large remodels and pricier projects.

For the full year ahead, the company said it expects total sales to grow by 2.8% and comparable sales, which take out the impact of one-time factors like store openings and calendar differences, to increase by about 1%. Home Depot projected adjusted earnings per share will decline about 2% compared with the prior year.

In an interview with CNBC, Chief Financial Officer Richard McPhail said “housing is still frozen by mortgage rates.” Yet he said Home Depot saw broad-based growth, as sales increased in about half of its merchandise categories and 15 of its 19 U.S. geographic regions.

Home Depot anticipates consumers will stop putting off projects as they gradually get used to higher interest rates, rather than waiting for them to fall, McPhail said. 

“They tell us their lives are moving on,” he said. “Their families are growing. They’re moving for a new job. They’re upsizing their home. They want to upgrade their standard of living. Home improvement always persists, and so the question, I think, will be around the mindset of whether long-term rates have gotten to a new normal.”

Here’s what the company reported for the fiscal fourth quarter compared with Wall Street’s estimates, according to a survey of analysts by LSEG:

Home Depot shares were up nearly 5% in midday trading. The company was holding an earnings call on Tuesday morning.

In the three-month period that ended Feb. 2, Home Depot’s net income climbed to $3.0 billion, or $3.02 per share, from $2.80 billion, or $2.82 per share, in the year-ago period. Revenue rose 14% from $34.79 billion in the year-ago period.

Comparable sales, a metric also known as same-store sales, increased 0.8% across the company. Those results ended eight consecutive quarters of falling comparable sales. They also exceeded analysts’ expectations of a decline of 1.7%, according to StreetAccount. Comparable sales in the U.S. increased 1.3% year over year.

Regions hit by hurricanes Helene and Milton contributed about 0.6% to comparable sales, McPhail said.

Customers spent more and visited Home Depot’s stores and website more in the quarter compared with the year-ago period. Transactions rose to 400.4 million, up nearly 8% from the year-ago period. The average ticket was $89.11 in the quarter, up slightly from $88.87 in the prior-year quarter.

Home Depot has faced a more difficult backdrop for selling supplies for home improvement projects. Sales growth slowed in 2023, after consumers’ huge appetite for home renovations during the Covid pandemic returned to more typical patterns. Inflation and a shift back to spending on services like vacations and restaurants also dinged consumer demand for larger projects and pricier items.

Since roughly the middle of 2023, Home Depot’s leaders have pinned the company’s problems on a tougher housing market. McPhail told CNBC that the same challenge persisted in the fourth quarter, as consumers still showed reluctance to splurge on bigger projects, such as redoing a kitchen or installing new flooring.

Mortgage rates have remained high, despite interest rate cuts by the Federal Reserve. The median price of a home sold in January was $396,900, up 4.8% from the year before and the highest price ever for the month of January, according to the National Association of Realtors.

Tougher weather also hurt the company’s sales in January, and that’s carried into February in some parts of the country, McPhail said.

“Where weather is good, we continue to see engagement,” he said. “Where weather is tough, projects get put on the shelf.”

Even so, he said Home Depot has focused on ways it can move the needle, such as opening new stores and investing in its e-commerce business. 

Online sales rose 9% in the fourth quarter compared with the year-ago period, McPhail said, the strongest quarter of the year for Home Depot’s digital business. He chalked that up to the company’s investments in faster deliveries, particularly with getting appliances and power tools to customers.

McPhail said Home Depot opened 12 new stores in 2024, and it plans to open 13 new locations in the coming year. 

Home Depot has also looked to home professionals as one of its major sales drivers. It bought SRS Distribution, a Texas-based company that sells supplies to professionals in the roofing, pool and landscaping businesses, for $18.25 billion last year. It marked the largest acquisition in the company’s history.

Some pro-heavy categories, such as roofing, drywall and lumber, saw sales increases in the quarter because of Home Depot’s push to serve contractors and other home pros better, McPhail said.

Shares of Home Depot closed Monday at $382.42. As of Monday’s close, the company’s shares have fallen about 2% so far this year. That trails behind the S&P 500′s approximately 2% gains during the same period.

This post appeared first on NBC NEWS

McDonald’s is leaning into its reputation as a breakfast value offering, vowing to reject a surcharge on meals with eggs while announcing a special one-day discount on Egg McMuffins.

The fast-food giant said in a release that to mark the 50th anniversary of its breakfast-menu cornerstone, customers on Sunday would be able to purchase an Egg McMuffin sandwich, as well as a Sausage McMuffin With Egg sandwich, through the McDonald’s app for just $1.

“At McDonald’s, breakfast isn’t just a meal; it’s a cherished tradition and cornerstone of our brand,” McDonald’s USA President Joe Erlinger said Tuesday. “Every morning when we open our doors, we are a breakfast restaurant.”

Coinciding with the release, a McDonald’s executive emphasized in a LinkedIn post that the chain had no intention to charge customers extra for meals featuring eggs amid a nationwide shortage that has sent prices soaring and prompted at least two other national chains to do so.

‘Unlike others making news recently, you definitely WON’T see McDonald’s USA issuing surcharges on eggs, which are 100% cage-free and sourced in the U.S.,’ wrote Michael Gonda, McDonald’s chief impact officer for North America.

The announcements come as McDonald’s tries to leave a recent slump behind: Earlier this month, it reported its worst quarterly sales drop since the pandemic — but forecast improving results for 2025.

Year to date, its shares are up some 6%, outperforming broader market indexes.

This post appeared first on NBC NEWS

Nvidia is scheduled to report fourth-quarter financial results on Wednesday after the bell.

It’s expected to put the finishing touches on one of the most remarkable years from a large company ever. Analysts polled by FactSet expect $38 billion in sales for the quarter ended in January, which would be a 72% increase on an annual basis.

The January quarter will cap off the second fiscal year where Nvidia’s sales more than doubled. It’s a breathtaking streak driven by the fact that Nvidia’s data center graphics processing units, or GPUs, are essential hardware for building and deploying artificial intelligence services like OpenAI’s ChatGPT. In the past two years, Nvidia stock has risen 478%, making it the most valuable U.S. company at times with a market cap over $3 trillion.

But Nvidia’s stock has slowed in recent months as investors question where the chip company can go from here. 

It’s trading at the same price as it did last October, and investors are wary of any signs that Nvidia’s most important customers might be tightening their belts after years of big capital expenditures. This is particularly concerning in the wake of recent breakthroughs in AI out of China. 

Much of Nvidia’s sales go to a handful of companies building massive server farms, usually to rent out to other companies. These cloud companies are typically called “hyperscalers.” Last February, Nvidia said a single customer accounted for 19% of its total revenue in fiscal 2024.

Morgan Stanley analysts estimated this month that Microsoft will account for nearly 35% of spending in 2025 on Blackwell, Nvidia’s latest AI chip. Google is at 32.2%, Oracle at 7.4% and Amazon at 6.2%.

This is why any sign that Microsoft or its rivals might pull back spending plans can shake Nvidia stock.

Last week, TD Cowen analysts said that they’d learned that Microsoft had canceled leases with private data center operators, slowed its process of negotiating to enter into new leases and adjusted plans to spend on international data centers in favor of U.S. facilities.

The report raised fears about the sustainability of AI infrastructure growth. That could mean less demand for Nvidia’s chips. TD Cowen’s Michael Elias said his team’s finding points to “a potential oversupply position” for Microsoft. Shares of Nvidia fell 4% on Friday.

Microsoft pushed back Monday, saying it still planned to spend $80 billion on infrastructure in 2025.

“While we may strategically pace or adjust our infrastructure in some areas, we will continue to grow strongly in all regions. This allows us to invest and allocate resources to growth areas for our future,” a spokesperson told CNBC.

Over the last month, most of Nvidia’s key customers touted large investments. Alphabet is targeting $75 billion in capital expenditures this year, Meta will spend as much as $65 billion and Amazon is aiming to spend $100 billion.

Analysts say about half of AI infrastructure capital expenditures ends up with Nvidia. Many hyperscalers dabble in AMD’s GPUs and are developing their own AI chips to lessen their dependence on Nvidia, but the company holds the majority of the market for cutting-edge AI chips.

So far, these chips have been used primarily to train new age AI models, a process that can cost hundreds of millions dollars. After the AI is developed by companies like OpenAI, Google and Anthropic, warehouses full of Nvidia GPUs are required to serve those models to customers. That’s why Nvidia projects its revenue to continue growing.

Another challenge for Nvidia is last month’s emergence of Chinese startup DeepSeek, which released an efficient and “distilled” AI model. It had high enough performance that suggested billions of dollars of Nvidia GPUs aren’t needed to train and use cutting-edge AI. That temporarily sunk Nvidia’s stock, causing the company to lose almost $600 billion in market cap. 

Nvidia CEO Jensen Huang will have an opportunity on Wednesday to explain why AI will continue to need even more GPU capacity even after last year’s massive build-out.

Recently, Huang has spoken about the “scaling law,” an observation from OpenAI in 2020 that AI models get better the more data and compute are used when creating them.

Huang said that DeepSeek’s R1 model points to a new wrinkle in the scaling law that Nvidia calls “Test Time Scaling.” Huang has contended that the next major path to AI improvement is by applying more GPUs to the process of deploying AI, or inference. That allows chatbots to “reason,” or generate a lot of data in the process of thinking through a problem.

AI models are trained only a few times to create and fine-tune them. But AI models can be called millions of times per month, so using more compute at inference will require more Nvidia chips deployed to customers.

“The market responded to R1 as in, ‘oh my gosh, AI is finished,’ that AI doesn’t need to do any more computing anymore,” Huang said in a pretaped interview last week. “It’s exactly the opposite.”

This post appeared first on NBC NEWS