Key Takeaways
- Universal Music Group (UMG) reported Q2 2025 revenue of €2.98 billion, slightly below estimates, but revenue excluding currency impacts grew by 4.5%, surpassing expectations.
- Nvidia (NVDA) is facing a security inquiry from China's Cyberspace Administration (CAC) regarding potential "backdoors" in its H20 AI chips, raising concerns about data privacy and user rights amid escalating U.S.-China tech rivalry.
- Israeli Defense Minister stated that Israel is actively striking Hezbollah infrastructure in Lebanon, with recent targets including Al-Mahmoudiya and Al-Jarmaq in Southern Lebanon.
- Morgan Stanley upgraded Teradyne (TER) to "Equal Weight" from "Underweight," citing optimism regarding Teradyne's potential to expand its business with Nvidia (NVDA).
Universal Music Group (UMG) released its second-quarter and first-half 2025 financial results, with Q2 revenue reaching €2.98 billion, slightly missing the estimated €2.99 billion. However, revenue excluding the impact of foreign exchange saw a robust 4.5% increase, outperforming the estimated 3.75% growth. The company's Q2 EBITDA was €611 million, falling short of the €622.9 million estimate. For the first half of 2025, total revenue was €5.881 billion, aligning closely with the €5.872 billion estimate. Recorded Music subscription revenue grew by 5.3% year-over-year, and overall streaming revenue increased by 4.4% year-over-year.
In the technology sector, Nvidia (NVDA) is under scrutiny from Chinese regulators. The Cyberspace Administration of China (CAC) summoned Nvidia to address claims of potential "backdoors" in its H20 AI chips, which could compromise data security and user privacy. This inquiry comes amidst U.S. proposals for advanced chips sold abroad to include tracking capabilities, further fueling the ongoing U.S.-China tech rivalry. Nvidia has denied these claims, asserting that it will not permit unauthorized access to its systems. The H20 chip was developed by Nvidia specifically for the Chinese market following U.S. export restrictions on advanced AI chips in late 2023. Despite the regulatory hurdles, Nvidia recently placed orders for 300,000 H20 chipsets with Taiwan Semiconductor Manufacturing, indicating strong Chinese demand. Separately, Teradyne (TER) saw its rating upgraded by Morgan Stanley to "Equal Weight" from "Underweight" with a price target of $100, up from $74. This upgrade was driven by optimistic commentary on Teradyne's prospects of expanding its penetration with Nvidia (NVDA).
Geopolitical tensions remain high, as the Israeli Defense Minister confirmed active strikes against Hezbollah infrastructure in Lebanon. Recent targets include Al-Mahmoudiya and Al-Jarmaq in Southern Lebanon. These actions are part of ongoing efforts to counter Hezbollah's attempts to rebuild and re-establish its capabilities, which Israel views as a threat.
In other news, New Jersey Acting Governor Tahesha Way declared a State of Emergency across all 21 counties, effective at 2:00 p.m. ET on Thursday, July 31, 2025, in anticipation of intense marathon storms. Additionally, Goldman Sachs (GS) CEO David Solomon is scheduled to meet with President Trump at the White House. This meeting follows previous instances where Solomon has commented on the business community's views on Trump's policies, including tariffs. European markets showed mixed performance, with Britain's FTSE 100 remaining flat, Germany's DAX down 0.7%, France's CAC 40 down 1%, and Spain's IBEX up 0.1%.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.