Spy Agency Ducks Questions About 'Back Doors' in Tech Products

FILE PHOTO: FILE PHOTO: An aerial view of the National Security Agency (NSA) headquarters in Ft. Meade, Maryland, US January 29, 2010. REUTERS/Larry Downing/File Photo/File Photo
FILE PHOTO: FILE PHOTO: An aerial view of the National Security Agency (NSA) headquarters in Ft. Meade, Maryland, US January 29, 2010. REUTERS/Larry Downing/File Photo/File Photo
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Spy Agency Ducks Questions About 'Back Doors' in Tech Products

FILE PHOTO: FILE PHOTO: An aerial view of the National Security Agency (NSA) headquarters in Ft. Meade, Maryland, US January 29, 2010. REUTERS/Larry Downing/File Photo/File Photo
FILE PHOTO: FILE PHOTO: An aerial view of the National Security Agency (NSA) headquarters in Ft. Meade, Maryland, US January 29, 2010. REUTERS/Larry Downing/File Photo/File Photo

The NSA has long sought agreements with technology companies under which they would build special access for the spy agency into their products, according to disclosures by former NSA contractor Edward Snowden, Reuters reported.

These so-called back doors enable the NSA and other agencies to scan large amounts of traffic without a warrant. Agency advocates said the practice has eased collection of vital intelligence in other countries, including interception of terrorist communications.

The agency developed new rules for such practices after the Snowden leaks in order to reduce the chances of exposure and compromise, three former intelligence officials told Reuters. But aides to Senator Ron Wyden, a leading Democrat on the Senate Intelligence Committee, say the NSA has stonewalled on providing even the gist of the new guidelines.

“Secret encryption back doors are a threat to national security and the safety of our families – it’s only a matter of time before foreign hackers or criminals exploit them in ways that undermine American national security,” Wyden told Reuters.

“The government shouldn’t have any role in planting secret back doors in encryption technology used by Americans.”

Three former senior intelligence agency figures also told Reuters that the NSA now requires that before a back door is sought, the agency must weigh the potential fallout and arrange for some kind of warning if the back door gets discovered and manipulated by adversaries.

The continuing quest for hidden access comes as governments in the United States, the United Kingdom and elsewhere seek laws that would require tech companies to let governments see unencrypted traffic. Defenders of strong encryption said the NSA’s sometimes-botched efforts to install back doors in commercial products show the dangers of such requirements.

Critics of the NSA’s practices said they create targets for adversaries, undermine trust in US technology and compromise efforts to persuade allies to reject Chinese technology that could be used for espionage, since US gear can also be turned to such purposes.

In at least one instance, a foreign adversary was able to take advantage of a back door invented by US intelligence, according to Juniper Networks Inc, which said in 2015 its equipment had been compromised.

In a previously unreported statement to members of Congress in July seen by Reuters, Juniper said an unnamed national government had converted the mechanism first created by the NSA. The NSA told Wyden staffers in 2018 that there was a “lessons learned” report about the Juniper incident and others, according to Wyden spokesman Keith Chu.

“NSA now asserts that it cannot locate this document,” Chu told Reuters. NSA and Juniper declined to comment on the matter.

The NSA has pursued many means for getting inside equipment, sometimes striking commercial deals to induce companies to insert back doors, and in other cases manipulating standards - namely by setting processes so that companies unknowingly adopt software that NSA experts can break, according to reports from Reuters and other media outlets.

The tactics drew widespread attention starting in 2013, when Snowden leaked documents referencing these practices.

Tech companies that were later exposed for having cut deals that allowed backdoor access, including security pioneer RSA, lost credibility and customers. Other US firms lost business overseas as customers grew wary of the NSA’s reach.

According to Reuters, all of that prompted a White House policy review.

“There were all sorts of ‘lessons learned’ processes,” said former White House cybersecurity coordinator Michael Daniel, who was advising then-president Barack Obama when the Snowden files erupted. A special commission appointed by Obama said the government should never “subvert” or “weaken” tech products or compromise standards.

The White House did not publicly embrace that recommendation, instead beefing up review procedures for whether to use newly discovered software flaws for offensive cyber operations or get them fixed to improve defense, Daniel and others said.

The secret government contracts for special access remained outside of the formal review.

“The NSA had contracts with companies across the board to help them out, but that’s extremely protected,” said an intelligence community lawyer.

The starkest example of the risks inherent in the NSA’s approach involved an encryption-system component known as Dual Elliptic Curve, or Dual EC. The intelligence agency worked with the Commerce Department to get the technology accepted as a global standard, but cryptographers later showed that the NSA could exploit Dual EC to access encrypted data.

RSA accepted a $10 million contract to incorporate Dual EC into a widely used web security system, Reuters reported in 2013. RSA said publicly that it would not have knowingly installed a back door, but its reputation was tarnished and the company was sold.

Juniper Networks got into hot water over Dual EC two years later. At the end of 2015, the maker of internet switches disclosed that it had detected malicious code in some firewall products. Researchers later determined that hackers had turned the firewalls into their own spy tool by altering Juniper’s version of Dual EC.

Juniper said little about the incident. But the company acknowledged to security researcher Andy Isaacson in 2016 that it had installed Dual EC as part of a “customer requirement,” according to a previously undisclosed contemporaneous message seen by Reuters. Isaacson and other researchers believe that customer was a US government agency, since only the US is known to have insisted on Dual EC elsewhere.

Juniper has never identified the customer, and declined to comment for this story.

Likewise, the company never identified the hackers. But two people familiar with the case told Reuters that investigators concluded the Chinese government was behind it. They declined to detail the evidence they used.

The Chinese government has long denied involvement in hacking of any kind. In a statement to Reuters, the Chinese foreign ministry said that cyberspace is “highly virtual and difficult to trace. It is extremely irresponsible to make accusations of hacker attacks without complete and conclusive evidence. At the same time, we also noticed that the report mentioned that it was the US intelligence agency - the National Security Agency - that created this backdoor technology.”

Wyden remains determined to find out exactly what happened at Juniper and what has changed since as the encryption wars heat up.

This July, in previously unreported responses to questions from Wyden and allies in Congress, Juniper said that an unidentified nation was believed to be behind the hack into its firewall code but that it had never investigated why it installed Dual EC in the first place.

“We understand that there is a vigorous policy debate about whether and how to provide government access to encrypted content,” it said in a July letter.

“Juniper does not and will not insert back doors into its products and we oppose any legislation mandating back doors.”

A former senior NSA official told Reuters that many tech companies remain nervous about working covertly with the government. But the agencies’ efforts continue, the person said, because special access is seen as too valuable to give up.



Paris 2024 Gearing Up to Face Unprecedented Cybersecurity Threat

 A cybersecurity employee from the Paris 2024 flying squad manages a simulated cyber attack and pretends to resolve it from a computer on the Olympic site which will host the hockey events at Yves-du-Manoir Stadium in Colombes, near Paris, France, May 3, 2024. (Reuters)
A cybersecurity employee from the Paris 2024 flying squad manages a simulated cyber attack and pretends to resolve it from a computer on the Olympic site which will host the hockey events at Yves-du-Manoir Stadium in Colombes, near Paris, France, May 3, 2024. (Reuters)
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Paris 2024 Gearing Up to Face Unprecedented Cybersecurity Threat

 A cybersecurity employee from the Paris 2024 flying squad manages a simulated cyber attack and pretends to resolve it from a computer on the Olympic site which will host the hockey events at Yves-du-Manoir Stadium in Colombes, near Paris, France, May 3, 2024. (Reuters)
A cybersecurity employee from the Paris 2024 flying squad manages a simulated cyber attack and pretends to resolve it from a computer on the Olympic site which will host the hockey events at Yves-du-Manoir Stadium in Colombes, near Paris, France, May 3, 2024. (Reuters)

Paris 2024 is getting ready to face an unprecedented challenge in terms of cybersecurity, with organizers expecting huge pressure on the Games this summer.

Organized crime, activists and states will be the main threats during the July 26-Aug. 11 Olympics and the Aug. 28-Sept. 8 Paralympics.

Paris 2024, who have been working hand in hand with the French national agency for information security (ANSSI), and cybersecurity companies Cisco and Eviden are looking to limit the impact of cyber attacks.

"We can't prevent all the attacks, there will not be Games without attacks but we have to limit their impact on the Olympics," Vincent Strubel, the director general of ANSSI, told reporters.

"There are 500 sites, competition venues and local collectives, and we've tested them all."

Strubel is confident that Paris 2024, who will operate from a cybersecurity operation center in a location that is being kept secret, will be ready.

"The Games are facing an unprecedented level of threat, but we've also done an unprecedented amount of preparation work so I think we're a step ahead of the attackers," he said.

To make sure they are in the game, Paris 2024 have been paying "ethical hackers" to stress test their systems and have been using artificial intelligence to help them do a triage of the threats.

"AI helps us make the difference between a nuisance and a catastrophe," said Franz Regul, managing director for IT at Paris 2024.

"We're expecting the number of cybersecurity events to be multiplied by 10 compared to Tokyo (in 2021)."

"In terms of cybersecurity, four years is the equivalent of a century," Eric Greffier, head of partnerships at CISCO, explained.

In 2018, a computer virus dubbed "Olympic Destroyer" was used in an attack on the opening ceremony of the Pyeongchang Winter Games.

While Moscow denied any involvement, the US Justice Department in 2020 said it has indicted six Russian intelligence agency hackers for a four-year long hacking spree that included attacks against the Pyeongchang Games.

"We would like to have one opponent but we're looking into everything and everyone. Naming the potential attackers is not our role, it is the role of the state," Strubel said.

Last month, French president Emmanuel Macron said he had no doubt Russia would malevolently target the Paris Olympics.

The Games will take place amid a complex global backdrop, including Russia's war in Ukraine and Israel's conflict with Hamas, which has been designated a terrorist organization by the United States and the European Union.


Foxconn Reiterates Q2 Revenue to Grow, Posts Record April Sales

Foxconn shareholders look at wafers on display after the annual shareholder meeting in New Taipei City, Taiwan May 31, 2023. REUTERS/Ann Wang/File Photo Purchase Licensing Rights
Foxconn shareholders look at wafers on display after the annual shareholder meeting in New Taipei City, Taiwan May 31, 2023. REUTERS/Ann Wang/File Photo Purchase Licensing Rights
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Foxconn Reiterates Q2 Revenue to Grow, Posts Record April Sales

Foxconn shareholders look at wafers on display after the annual shareholder meeting in New Taipei City, Taiwan May 31, 2023. REUTERS/Ann Wang/File Photo Purchase Licensing Rights
Foxconn shareholders look at wafers on display after the annual shareholder meeting in New Taipei City, Taiwan May 31, 2023. REUTERS/Ann Wang/File Photo Purchase Licensing Rights

Taiwan's Foxconn, the world's largest contract electronics maker and the biggest assembler of Apple's iPhone, reiterated on Sunday it expected a rise in second-quarter revenue, and reported record sales for the month of April. Foxconn (2317.TW), said in a statement that this year's second quarter "remains a traditional off-peak season, and major products are entering a period of transition between old and new products".

But it added: "The operations outlook for the second quarter is expected to show both quarter-on-quarter and year-on-year growth".

The statement did not elaborate and the company does not give numerical guidance, Reuters reported.

The company, formally called Hon Hai Precision Industry Co Ltd, said April revenue reached T$510.9 billion ($15.83 billion), which it said was the highest figure on record for the same period and represented an on-year rise of 19%.

Revenue in its smart consumer electronics products, including smartphones, in April showed "significant growth" year-on-year, it said.

Strong artificial intelligence (AI) server demand also delivered "strong growth" in April on-year for its cloud and networking products segment, the company added.

The monthly sales data comes ahead of Foxconn's first-quarter earnings call on May 14.

Foxconn has previously reported that for the first quarter, revenue slid 9.6% year-on-year to T$1.322 trillion, underperforming a T$1.401 trillion LSEG SmartEstimate, which gives greater weight to forecasts from analysts who are more consistently accurate.

The first quarter is traditionally quieter than the previous one, the season when Taiwan's tech companies race to supply smartphones, tablets and other electronics to major vendors such as Apple for Western markets' year-end holiday period.

Apple's (AAPL.O) quarterly results and forecast beat modest expectations on Thursday, and CEO Tim Cook said revenue growth would return in the current quarter.

In March, Foxconn adopted a far more bullish outlook for this year, saying on its fourth-quarter earnings call that it expected a significant rise in revenue driven by booming demand for AI servers.

Foxconn's shares have surged almost 50% so far this year, compared with a 13% gain for the broader market (.TWII.)


stc Group Named as 'Best Telecommunications and Digital Services Company' in the Middle East

stc Group logo
stc Group logo
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stc Group Named as 'Best Telecommunications and Digital Services Company' in the Middle East

stc Group logo
stc Group logo

Economy Middle East awarded stc Group the "Telecom & Digital Service Provider of the Year" at its 2024 summit.

Held in Abu Dhabi on May 1, Economy Middle East brings together a number of ministers and industry experts from across the private and public sectors under the theme "Accelerating Future Growth". The program focuses on addressing the key challenges and opportunities across banking, finance, technology, hospitality, tourism, and the future of mobility, according to an stc Group statement.

According to the statement, recognizing stc Group as the leading Telecom and digital Service Provider of the year across the region is a testament to the Kingdom of Saudi Arabia's progress in driving digital transformation, domestically and worldwide.

stc Group's focus on innovative technology expands across digital infrastructure, cloud computing, cybersecurity, the Internet of Things (IoT), digital payments, and digital entertainment.

The Economy Middle East Summit award adds to stc Group's exceptional start to 2024. The 2024 Brand Finance Report named stc Group as the leading telecom brand in the Middle East by revenue and ranked the Group as the 149th most valuable brand globally.


Apple Aims to Tell an AI Story Without AI Bills

FILED - 01 May 2023, Hamburg: The logo of the US technology company Apple can be seen at night at the Apple Store Jungfernstieg in the city center. Photo: Christian Charisius/dpa
FILED - 01 May 2023, Hamburg: The logo of the US technology company Apple can be seen at night at the Apple Store Jungfernstieg in the city center. Photo: Christian Charisius/dpa
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Apple Aims to Tell an AI Story Without AI Bills

FILED - 01 May 2023, Hamburg: The logo of the US technology company Apple can be seen at night at the Apple Store Jungfernstieg in the city center. Photo: Christian Charisius/dpa
FILED - 01 May 2023, Hamburg: The logo of the US technology company Apple can be seen at night at the Apple Store Jungfernstieg in the city center. Photo: Christian Charisius/dpa

For most of the past year and a half, Apple Chief Executive Tim Cook has fielded questions from Wall Street analysts about his plans for artificial intelligence amid grumbling that the iPhone maker has no AI story to tell.
After the company reported quarterly earnings on Thursday, Cook insisted that Apple will have concrete details about its plans for AI to talk about very soon.
"We continue to feel very bullish about our opportunity in generative AI and we're making significant investments," Cook told Reuters in an interview, noting the company has spent $100 billion over the past five years on research and development.
Apple's Big Tech rivals have spent comparable or even greater amounts on R&D over the same period, but they have also been spending heavily to build data centers to host AI services.
Microsoft shelled out $14 billion in the most recent quarter on capex, with Alphabet's Google not far behind, at $12 billion. Meta Platforms told investors last week to expect as much as $40 billion in capital expenditures this year.
Apple thinks different. Its capital expenditure for all of 2023 was just over $10 billion.
Apple, which makes most of its money selling consumer devices, has paid a price for that stance most of this year, with its shares falling 10% as investors worried the company was falling behind in the AI race. Shares of Meta, Google and Microsoft -- all of which make money selling software or advertising services -- have all soared to record highs as the companies grapple to dominate the emerging AI landscape, though investors have also flinched at skyrocketing price tags for data centers and specialized processors required to train AI models.
Apple hinted Thursday it won't take the same tack. While Apple is expected to unveil new AI features at its annual software conference next month and overhaul its product lines with AI-ready chips, Chief Financial Officer Luca Maestri said Apple investors should not expect a huge change in how the company handles capital expenditures.
Responding to an analyst's question, Maestri noted the company's longstanding practice of splitting the cost of manufacturing tools with its suppliers, which has kept Apple's costs down and its cash generation up for more than a decade.
"We do something similar on the data center side," Maestri said. "We have our own data center capacity, and then we use capacity from third parties. It's a model that has worked well for us historically, and we plan to continue along the same lines going forward."
That could be just as well for Apple, because it remains unclear whether AI features such as chatbots that run directly on a device will spur users to buy new phones, tablets or laptops, which remain Apple's biggest source of revenue and profits.
Ben Bajarin of Creative Strategies said that while better processors could serve as a "line in the sand" for some users who need AI tools for professional use, those features may not ignite a sales boom.
"It'll be something that helps lift sales, but I don't expect it to be super cycle," Bajarin said. "You have to be careful to temper expectations."


Japan’s Kishida Unveils a Framework for Global Regulation of Generative AI

 Japanese Prime Minister Fumio Kishida delivers his speech during the Organization for Economic Cooperation and Development (OECD) Ministerial Council Meeting (MCM) in Paris, France, 02 May 2024. (EPA)
Japanese Prime Minister Fumio Kishida delivers his speech during the Organization for Economic Cooperation and Development (OECD) Ministerial Council Meeting (MCM) in Paris, France, 02 May 2024. (EPA)
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Japan’s Kishida Unveils a Framework for Global Regulation of Generative AI

 Japanese Prime Minister Fumio Kishida delivers his speech during the Organization for Economic Cooperation and Development (OECD) Ministerial Council Meeting (MCM) in Paris, France, 02 May 2024. (EPA)
Japanese Prime Minister Fumio Kishida delivers his speech during the Organization for Economic Cooperation and Development (OECD) Ministerial Council Meeting (MCM) in Paris, France, 02 May 2024. (EPA)

Japanese Prime Minister Fumio Kishida unveiled an international framework for regulation and use of generative AI on Thursday, adding to global efforts on governance for the rapidly advancing technology.

Kishida made the announcement in a speech at the Paris-based Organization for Economic Cooperation and Development.

“Generative AI has the potential to be a vital tool to further enrich the world,” Kishida said. But “we must also confront the dark side of AI, such as the risk of disinformation."

When Japan chaired the Group of Seven leading industrialized nations last year, it launched a Hiroshima AI process to draw up international guiding principles and a code of conduct for AI developers.

Some 49 countries and regions have signed up to the voluntary framework, called the Hiroshima AI Process Friends Group, Kishida said, without naming any.

They will work on implementing principles and code of conduct to address the risks of generative AI and “promote cooperation to ensure that people all over the world can benefit from the use of safe, secure, and trustworthy AI,” he said.

The European Union, the United States, China and many other nations have been racing to draw up regulations and oversight for AI, while global bodies such as the United Nations have been grappling with how to supervise it.


Google Defends App Store, Fighting Epic Games’ Bid for Major Reforms

The Google logo is seen on the Google house at CES 2024, an annual consumer electronics trade show, in Las Vegas, Nevada, US, January 10, 2024. (Reuters)
The Google logo is seen on the Google house at CES 2024, an annual consumer electronics trade show, in Las Vegas, Nevada, US, January 10, 2024. (Reuters)
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Google Defends App Store, Fighting Epic Games’ Bid for Major Reforms

The Google logo is seen on the Google house at CES 2024, an annual consumer electronics trade show, in Las Vegas, Nevada, US, January 10, 2024. (Reuters)
The Google logo is seen on the Google house at CES 2024, an annual consumer electronics trade show, in Las Vegas, Nevada, US, January 10, 2024. (Reuters)

Google has asked a US judge not to impose sweeping changes to the Alphabet unit's app store Play that were proposed by "Fortnite" maker Epic Games in the companies' closely-watched antitrust fight.

Google made its filing late on Thursday in San Francisco federal court, where Epic last year persuaded a jury that the tech giant unlawfully stifled competition with its controls over apps downloads on Android devices and payments to developers for in-app transactions.

Epic's proposal "would make it nearly impossible for Google to compete," Google's filing said.

The gaming company in March asked US District Judge James Donato in San Francisco to force Google to make it easier for users to download apps from other sources and to allow developers more flexibility in offering and charging for purchases.

The Cary, North Carolina-based company also said it should be allowed to bring its Epic Games Store to Android "without delays and barriers."

A hearing on the proposed injunction is scheduled for May 23.

Epic did not immediately respond to a request for comment.

Wilson White, Google's head of government affairs and public policy, said in a statement that "Epic’s demands would harm the privacy, security, and overall experience of consumers, developers, and device manufacturers."

In its filing, Google said a related Play store settlement with states and consumers made Epic's bid for an injunction unnecessary. The remedies in that settlement, Google said, "fully address" the alleged anticompetitive conduct Epic presented at trial.

In December, Google agreed to pay $700 million to resolve the states' case and, among other reforms, will allow more alternative billing options for in-app purchases.

In another even more far-reaching antitrust case, Google on Thursday squared off for closing trial arguments with the Justice Department and a group of states in a Washington, DC courtroom over claims that it unfairly dominates the market for mobile web search.


Nvidia Supplier SK Hynix Says HBM Chips Almost Sold Out for 2025 

Employees walk past identification systems bearing the logos of SK Hynix at its headquarters in Seongnam, South Korea, April 25, 2016. (Reuters) 
Employees walk past identification systems bearing the logos of SK Hynix at its headquarters in Seongnam, South Korea, April 25, 2016. (Reuters) 
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Nvidia Supplier SK Hynix Says HBM Chips Almost Sold Out for 2025 

Employees walk past identification systems bearing the logos of SK Hynix at its headquarters in Seongnam, South Korea, April 25, 2016. (Reuters) 
Employees walk past identification systems bearing the logos of SK Hynix at its headquarters in Seongnam, South Korea, April 25, 2016. (Reuters) 

South Korea's SK Hynix said on Thursday that its high-bandwidth memory (HBM) chips used in AI chipsets were sold out for this year and almost sold out for 2025 as businesses aggressively expand artificial intelligence services.

The Nvidia supplier and the world's second-largest memory chipmaker will begin sending samples of its latest HBM chip, called the 12-layer HBM3E, in May and begin mass producing them in the third quarter.

"The HBM market is expected to continue to grow as data and (AI) model sizes increase," Chief Executive Officer Kwak Noh-Jung told a news conference. "Annual demand growth is expected to be about 60% in the mid-to long-term."

SK Hynix which competes with US rival Micron and domestic behemoth Samsung Electronics in HBM was until March the sole supplier of HBM chips to Nvidia, according to analysts who add that major AI chip purchasers are keen to diversify their suppliers to better maintain operating margins. Nvidia commands some 80% of the AI chip market.

Micron has also said its HBM chips were sold out for 2024 and that the majority of its 2025 supply was already allocated. It plans to provide samples for its 12-layer HBM3E chips to customers in March.

"As AI functions and performance are being upgraded faster than expected, customer demand for ultra-high-performance chips such as the 12-layer chips appear to be increasing faster than for 8-layer HBM3Es," said Jeff Kim, head of research at KB Securities.

Samsung Electronics, which plans to produce its HBM3E 12-layer chips in the second quarter, said this week that this year's shipments of HBM chips are expected to increase more than three-fold and it has completed supply discussions with customers. It did not elaborate further.

Last month, SK Hynix announced a $3.87 billion plan to build an advanced chip packaging plant in the US state of Indiana with an HBM chip line and a 5.3 trillion won ($3.9 billion) investment in a new DRAM chip factory at home with a focus on HBMs.

Kwak said investment in HBM differed from past patterns in the memory chip industry in that capacity is being increased after making certain of demand first.

By 2028, the portion of chips made for AI, such as HBM and high-capacity DRAM modules, is expected to account for 61% of all memory volume in terms of value from about 5% in 2023, SK Hynix's head of AI infrastructure Justin Kim said.

Last week, SK Hynix said in a post-earnings conference call that there may be a shortage of regular memory chips for smartphones, personal computers and network servers by the year's end if demand for tech devices exceeds expectations.


AMD, Super Micro Tumble as Earnings Fall Short of Lofty AI Expectations

A smartphone with a displayed AMD logo is placed on a computer motherboard in this illustration taken March 6, 2023. (Reuters)
A smartphone with a displayed AMD logo is placed on a computer motherboard in this illustration taken March 6, 2023. (Reuters)
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AMD, Super Micro Tumble as Earnings Fall Short of Lofty AI Expectations

A smartphone with a displayed AMD logo is placed on a computer motherboard in this illustration taken March 6, 2023. (Reuters)
A smartphone with a displayed AMD logo is placed on a computer motherboard in this illustration taken March 6, 2023. (Reuters)

Advanced Micro Devices and Super Micro Computer led a selloff in chip stocks on Wednesday after their earnings disappointed investors, who had piled into the sector on hopes rising AI investments would boost demand.

AMD was down 5.4% and is on course to lose more than $13 billion in market value.

Its forecast of $4 billion in AI chip sales for 2024 fell short of Wall Street's lofty expectations, having been used to Nvidia's massive forecasts over the past year.

Super Micro Computer, whose near-200% stock jump this year has outpaced even gains in Nvidia, tumbled over 11% as its third-quarter revenue missed estimates amid questions over the profitability of a new line of servers.

"As the market is shifting more towards risk-off over the last couple of days, it's not shocking that unless these companies are beating earnings by a mile that some of the hot air is coming out of them for now," said Russell Hackmann, president of Hackmann Wealth Partners.

Executives of both AMD and Super Micro Computer said supply constraints were hampering their efforts to capitalize on demand for equipment powering the boom in generative AI.

"Stepping back, AMD has several customers who are all trying to ramp MI300 (AI chip) very quickly. This is stressing the supply chain to a certain extent," said analysts at TD Cowen.

"However, from a demand perspective, customer engagement is in fact increasing, not only for MI300X but its successor products."

Other AI-linked chip firms also traded lower, with Marvell Technology down 1.5% and Nvidia falling 1.7%.

The stocks have widely outperformed the benchmark S&P 500 index this year and powered a 11% jump in the Philadelphia Semiconductor Index.

Several analysts were still positive on AMD, saying easing supply chain constraints should allow the company to increase its share of the AI chip market and potentially reap billions of dollars in revenue.

At least 10 analysts lowered their price target on AMD, while eight raised their view, according to LSEG data. Super Micro saw three price target increases and two cuts.


Nepalis Fight TikTok Ban in Court, or Ignore It Entirely

After joining TikTok in 2018, twin sisters Prisma and Princy Khatiwada built a following of nearly eight million on TikTok with videos of their synchronised dance routines. PRAKASH MATHEMA / AFP
After joining TikTok in 2018, twin sisters Prisma and Princy Khatiwada built a following of nearly eight million on TikTok with videos of their synchronised dance routines. PRAKASH MATHEMA / AFP
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Nepalis Fight TikTok Ban in Court, or Ignore It Entirely

After joining TikTok in 2018, twin sisters Prisma and Princy Khatiwada built a following of nearly eight million on TikTok with videos of their synchronised dance routines. PRAKASH MATHEMA / AFP
After joining TikTok in 2018, twin sisters Prisma and Princy Khatiwada built a following of nearly eight million on TikTok with videos of their synchronised dance routines. PRAKASH MATHEMA / AFP

When Nepal suddenly announced a ban on TikTok last year, lawyer Sunil Rajan Singh was determined to fight what he said was a government effort to hide its wrongdoings.
The hugely popular video-sharing platform has faced restrictions in several countries for allegedly breaking data rules and for its supposed harmful impact on youth.
Last week the United States became the latest nation poised to ban the app outright, unless Chinese parent company ByteDance agrees to divest it.
Efforts to restrict access to TikTok have prompted vocal opposition wherever they have been attempted but especially so in Nepal, where the platform had been used to mobilize anti-government demonstrations.
Some Nepalis have skirted the ban entirely by accessing TikTok via virtual private networks (VPNs), which use a remote connection that obscures their location. Others like Singh are determined to fight.
"The government's move is against freedom of speech and expression guaranteed by Nepal's constitution," said the attorney, who is leading a legal challenge to the ban in the Himalayan republic's top court.
"On TikTok the public would learn about corruption, financial embezzlement and other immoral activities of leaders," he told AFP. "That was not helpful for the government."
Nepal's communications minister justified last November's ban by accusing the platform of spreading content that damaged the country's "social harmony".
The announcement came days before a huge rally called by a prominent businessman who was using TikTok to organize a campaign demanding the reinstatement of Nepal's monarchy.
The hugely popular video-sharing platform has faced restrictions in several countries for allegedly breaking data rules and for its supposed harmful impact on youth.
Last week the United States became the latest nation poised to ban the app outright, unless Chinese parent company ByteDance agrees to divest it.
Efforts to restrict access to TikTok have prompted vocal opposition wherever they have been attempted but especially so in Nepal, where the platform had been used to mobilize anti-government demonstrations.


KAUST Paves the Way for Breakthroughs with Simulated Reality

Photo by SPA
Photo by SPA
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KAUST Paves the Way for Breakthroughs with Simulated Reality

Photo by SPA
Photo by SPA

King Abdullah University of Science and Technology (KAUST) is applying modern technology in all its field of studies, preparing students to tackle real-world issues.
It applies modeling and simulation in physical, chemical, biological and environmental processes, materials science, exploration and management of oil reservoirs, in the mathematical analyses carried out by the Department of Computer, Electrical and Mathematical Sciences and Engineering Division (CEMSE), and in the field of computer science and large data processing, including biological information, statistics, and visual and supercomputing, SPA reported.
CEMSE's research areas include electrical engineering, communication networks, Complementary metal–oxide–semiconductor (CMOS) integrated circuits, optoelectronic and optical devices, micro-electromechanical system (MEMS), various types of sensors, measurement and detection devices, and functional and nano-materials.
KAUST's Applied Mathematics and Computational Sciences program trains students to build mathematical and computational models to solve real-world issues. This program gives the opportunity to obtain two degrees: a master's degree (with or without a research thesis) and a PhD degree. The Computer Science program trains to create computer models and apply various computational methods in different fields.
Electrical and Computer Engineering plays an important role in the field of engineering, applied physics, and computational science.
The Electrical Engineering program prepares students for a variety of career paths, advanced global research, and research-based education through interdisciplinary engineering and science. The Statistics program teaches and trains students to analyze and model real-world situations.