Daily business and finance update 25th August 2023
Nvidia’s bumper AI results
Good morning. Today we're talking about Nvidia’s bumper AI results, the end of Wilko and the sale of Subway.
Nvidia’s bumper AI results
Nvidia delivered another stunningly strong quarterly revenue forecast, fuelled by surging demand for its AI processors. The US chipmaker reported record sales of over $13.5bn in the three months to June, more than double the same period last year. The shares have risen over 200% in 2023 and continued to rise after Nvidia said sales will be about $16bn in the next quarter, outpacing analyst estimates of $12.5bn. The outlook underscores Nvidia’s role as the key beneficiary of the artificial intelligence computing boom. Faced with skyrocketing demand for chatbots and other tools, data centre operators are stocking up on the company’s processors, which are adept at handling the heavy workloads required by AI.
Wilko fate sealed
Wilko has announced that it will close a number of stores after failing to find a buyer. The homeware retailer, which has 400 stores in the UK, went into administration earlier this month. The administrators, PwC, said that they had held discussions with a number of potential buyers, but that none of them were interested in buying the whole business. As a result, a number of stores will be closed, with the exact number to be confirmed in the coming weeks. The closure of Wilko stores will affect around 12,500 jobs. The company said that it would be working with the administrators to support affected staff. The failure of Wilko to find a buyer is a sign of the tough times facing the British retail sector. The industry has been hit by a number of challenges in recent years, including rising costs, competition from online retailers and changing consumer habits.
Subway sold for billions
Subway, the world's largest fast food chain, has been sold to private equity firm Roark Capital in a deal worth $9.6bn. The sale is one of the biggest acquisitions in fast food history and brings to an end the sandwich chain's nearly 60-year run as a family-owned business. Roark already owns a number of other US fast food brands, including Arby's, Buffalo Wild Wings and Dunkin Donuts. In recent years, Subway has faced declining sales and a number of challenges, including food safety scandals and negative publicity about its unhealthy menu. The company’s new owner said that it plans to invest in subway's marketing and product development and to open new stores in international markets.
Gas relief: Wholesale gas prices in Europe have fallen after a planned strike at Australia's largest liquefied natural gas plant looked to have been averted.
Economic rivals: A group of trading nations known as BRICS, which is hoping to rival the G7, is set to grow in size after inviting six new countries to join - including Iran and Saudi Arabia.
Bumper payout: The owner of British adult content subscription service OnlyFans has collected almost half a billion dollars after the firm’s revenues topped $1bn for the first time in 2022.
How much the former boss of NatWest is set to receive this year, despite having quit in disgrace over her handling of the closure of Nigel Farage's bank account.
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