Buy this ‘second-best' AI play amid its recent rally, Nations Indexes' Scott Nations says
Investors should consider getting bullish on Advanced Micro Devices following a slew of positive headlines surrounding the name, according to Scott Nations, president of Nations Indexes. Nations joined CNBC's " Power Lunch " on Wednesday to discuss this and two more of the trading day's biggest stock stories, and whether investors should take up or sell shares of those names. Advanced Micro Devices The artificial intelligence chip company gained more than 4% on Wednesday after it said its board of directors approved $6 billion in share buybacks . AMD 1D mountain AMD, 1-day Nations deemed AMD as a "buy," pointing out that President Donald Trump is planning to revoke U.S. chip export restrictions , which "is going to be good for the whole space." He also called AMD the "second-best play" as the company, as well as Nvidia, scored deals this week with Saudi company Humain to help expand its AI infrastructure. "If you want to be in the AI space, you get to buy this name at a 35% discount to its 52-week high," Nations said. Shares of AMD are up nearly 25% over the past month, but still off more than 2% in 2025. AbbVie Shares of biotech company AbbVie pulled back more than 5% in Wednesday's session. ABBV 1D mountain ABBV, 1-day On Wednesday, Citi downgraded the stock to neutral from buy and trimmed its price target by $5 to $205 a share, which implies more than 15% upside. Analyst Geoff Meacham thinks the company's constant "beat and raise" trend with its quarterly results could suggest a lightness in its late-stage product development pipeline when compared to its peers. "While current fundamentals are solid, we suspect that the share impact from quarterly surprises could diminish going forward, especially as investors increasingly shift more focus to the pipeline," Meacham wrote in a note to clients. Nations does not concur with that stance, however, saying the downgrade is "really goofy" and still regards AbbVie as a "buy." "The pipeline is critical for any pharma company, but this company beats on earnings expectations consistently, it raises dividends, has [a] nice dividend yield [at] 3.5%," he continued. "It's in a good space." Over the past three months, the stock has slid 8%. Tesla Tesla was up 4% Wednesday after Reuters, which cited a person with direct knowledge of the matter, reported that the electric vehicle maker will begin shipping components for its Cybercab and Semi trucks from China to the U.S. at the end of the month. That follows the U.S. and China earlier this week agreeing to temporarily cut tariffs on each other's goods for 90 days. The agreement came as the automaker has seen a decline in its China sales while facing increasing competition from local automakers in that country. "I think Tesla right now is a hold," Nations also said. "It's good that they're going to resume importing parts from China, but remember, there's still a pretty big, hefty tariff in place for Chinese imports. The potential exists that in about 85 days, that tariff is going to increase, maybe as much as triple." TSLA 1D mountain TSLA, 1-day While shares have soared nearly 26% over the past week, they are still negative this year, declining about 14% during the period.
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Yahoo
26 minutes ago
- Yahoo
Noah's Q1 2025 Earnings Show YoY and Sequential Growth in Profitability and Operating Margin Expansion
SHANGHAI, May 30, 2025 /PRNewswire/ -- Noah Holdings Limited ("Noah" or the "Company") (NYSE: NOAH and HKEX: 6686), a leading and pioneer wealth management service provider offering comprehensive one-stop advisory services on global investment and asset allocation primarily for global Chinese high-net-worth investors ("HNWIs"), reported unaudited financial results for the first quarter of 2025, highlighting a robust recovery in profitability as its CAPEX-light domestic restructuring and overseas expansion gain momentum. Non-GAAP net income rebounded 27.4% sequentially to RMB 168.8 million (US$23.3 million), while income from operations jumped 35.2% to RMB 186.0 million (US$25.6 million), driving operating margin to 30.3%. Noah continued to face broader headwinds driven by a volatile global macroeconomic environment and a low-interest rate environment in mainland China, impacting Chinese HNWI sentiment and topline growth. Despite these challenges, Noah continued to make significant progress in building out its sales teams and global infrastructure. Its CAPEX-light strategy ensures its business remains profitable and continues to generate solid cash flow during this restructuring. Zander Yin, Co-Founder, Director, and CEO of Noah, commented, "We are proud to deliver a strong rebound in profitability and operating margin this quarter, reflecting the success of our operational efficiency initiatives, CAPEX-light strategy, and accelerating overseas expansion. This clearly underscores the resilience of our business model during our ongoing restructuring and sets the stage for sustainable growth going forward. This restructuring still requires upfront investments and will take time to scale. While we are not yet at the finish line, these cost-effective foundational changes are clearly beginning to have an impact on our financials which leave us confident we are headed in the right direction." Financial Highlights Total net revenues for the quarter were RMB 614.6 million (US$84.7 million), down 5.7% from last quarter and down 5.4% year-over-year, primarily due to a decrease in distribution of insurance products and RMB-denominated private equity recurring service fees. However, net revenues from overseas continued to grow sequentially, expanding 5.0% to RMB 304.2 million (US$41.9 million) and now accounting for nearly 50% of total net revenues – showcasing the progress it continues to make in expanding overseas. Rigorous cost controls reduced operating costs and expenses by 16.7% sequentially and 18.8% year-over-year to RMB428.6 million (US$59.1 million), led by a 21.8% year-over-year cut in compensation and benefits and an 18.1% decline in selling expenses. Overseas Expansion Making Progress Noah's overseas expansion continued to gain momentum. Revenue from overseas investment products grew 20.3% year-over-year, offsetting a 22.8% decline in overseas insurance sales. USD-denominated assets under management climbed 14.2% year-over-year to US$5.9 billion, and USD-denominated assets under advisory rose 8.7% to US$9.1 billion. Noah's team of overseas relationship managers is driving this growth. The team expanded 44% year-over-year to 131, with its newly formed overseas commission-only insurance agent team also growing to 75 and already contributing approximately RMB 10 million in revenue during the quarter. The Company opened a new office in Japan and continues to explore opportunities in the US, Southeast Asia and Canada with large and underserved communities of Chinese HNWIs. Domestic Restructuring Domestic net revenues in the quarter were RMB 310.4 million, down 14.3% from last quarter and 9.4% from the same period last year, reflecting weaker insurance distribution under a low-interest environment and lower recurring service fees from private equity products. However, transaction value for RMB-denominated private secondary products surged 257.7% year-over-year to RMB 3.3 billion, up 34.6% sequentially, with associated revenue contribution rising 9.4% year-over-year. Noah's branch network has been consolidated to 10 cities in mainland China and has begun deploying online marketing and online services which will further reduce fixed costs and improve operational efficiency going forward. Driving Shareholder Returns Noah continues to prioritize shareholder interests and deliver sustained returns through its US$50 million share buyback program with the repurchase of more than 1.3 million ADSs to date. Subject to approval at its upcoming annual general meeting in June 2025, the Company plans to distribute RMB 550 million in annual and special dividends in July 2025—equal to 100% of 2024's non-GAAP net income attributable to Noah shareholders—delivering a 11% dividend yield at current prices and marking the second consecutive year of a full payout. As of March 31, 2025, cash and cash equivalents stood at RMB 4.1 billion, supplemented by RMB 1.3 billion in highly liquid short-term investments. The balance sheet remains robust, with US$11.4 per ADS in cash reserves, an improved current ratio of 4.8x, no interest-bearing debt, a price-to-book multiple of 0.5x and a price-to-earnings multiple of 11x, well below the industry average. Strategic Priorities and Outlook for 2025 Noah's priority in 2025 will be to build upon the solid progress it has made by carefully balancing the quality and quantity of growth overseas while ensuring full compliance with local regulations. Through its CAPEX-light strategy, the Company will drive its overseas expansion and build its local teams in the US, Japan, Southeast Asia and Canada. Investments in AI and technology will enhance online service capabilities, and the commission-only insurance agent network will scale to support overseas growth. It will also diversify its product suite with trusts, emigration advisory services and cross-border solutions to meet evolving client needs in volatile markets. Supported by streamlined operations, a fortified balance sheet and deepening overseas foothold, Noah is well positioned for sustainable, profitable growth throughout 2025 and beyond. About Noah Holdings Limited Noah Holdings Limited (NYSE: NOAH and HKEX: 6686) is a leading and pioneer wealth management service provider offering comprehensive one-stop advisory services on global investment and asset allocation primarily for global Chinese high-net-worth investors. Noah's American depositary shares, or ADSs, are listed on the New York Stock Exchange under the stock ticker "NOAH", and its shares are listed on the main board of the Hong Kong Stock Exchange under the stock code "6686." One ADS represents five ordinary shares, par value $0.00005 per share. In the first quarter of 2025, Noah distributed RMB 16.1 billion (US$2.2 billion) of investment products. Through Gopher Asset Management and Olive Asset Management, Noah had assets under management of RMB149.3 billion (US$20.6 billion) as of March 31, 2025. Noah's domestic and overseas wealth management business primarily distributes private equity, public securities and insurance products denominated in RMB and other currencies. Noah's network covers major cities in mainland China, as well as Hong Kong (China), New York, Silicon Valley, Singapore, Los Angeles and Japan. The Company's wealth management business had 463,161 registered clients as of March 31, 2025. Through its domestic and overseas asset management business operated by Gopher Asset Management and Olive Asset Management, Noah manages private equity, public securities, real estate, multi-strategy and other investments denominated in RMB and other currencies. The Company also provides other businesses. For more information, please visit Noah at Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Noah may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in announcements, circulars or other publications made on the website of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange"), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Noah's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. These statements include, but are not limited to, estimates regarding the sufficiency of Noah's cash and cash equivalents and liquidity risk. A number of factors could cause Noah's actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: its goals and strategies; its future business development, financial condition and results of operations; the expected growth of the wealth management and asset management market in China and internationally; its expectations regarding demand for and market acceptance of the products it distributes; investment risks associated with investment products distributed to Noah's investors, including the risk of default by counterparties or loss of value due to market or business conditions or misconduct by counterparties; its expectations regarding keeping and strengthening its relationships with key clients; relevant government policies and regulations relating to its industries; its ability to attract and retain qualified employees; its ability to stay abreast of market trends and technological advances; its plans to invest in research and development to enhance its product choices and service offerings; competition in its industries in China and internationally; general economic and business conditions in China; and its ability to effectively protect its intellectual property rights and not to infringe on the intellectual property rights of others. Further information regarding these and other risks is included in Noah's filings with the U.S. Securities and Exchange Commission and the Hong Kong Stock Exchange. All information provided in this press release and in the attachments is as of the date of this press release, and Noah does not undertake any obligation to update any such information, including forward-looking statements, as a result of new information, future events or otherwise, except as required under the applicable law. View original content: SOURCE Noah Holdings Limited Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
35 minutes ago
- Yahoo
Elon Musk is not leaving Washington quietly
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Yahoo
40 minutes ago
- Yahoo
Nvidia (NVDA) Flags China Risks, Holds Firm on $45B Sales Outlook
Nvidia (NVDA, Financials) says it'll pull in $45 billion this quarter, even after U.S. export curbs shaved $2.5 billion off Q1 sales and could cost another $8 billion in Q2. The stock jumped 4%, adding $130 billion in market value. Warning! GuruFocus has detected 4 Warning Signs with NVDA. China was 12.5% of Q1 revenue, as buyers rushed to grab Nvidia's H20 chip before the ban kicked in. But new U.S. rules targeting Chinese AI models and connected-car tech are now clouding the outlook. CEO Jensen Huang praised Trump for scrapping one export rule, but slammed another for blocking H20 sales. His pitch: let Chinese AI run on U.S. chips it's better for America. Senators raised concerns over a new Nvidia lease in Shanghai. The company says it's just more space for existing staff. Huang's betting on new deals in the Middle East and sees a future built on U.S. robotics. The China risk is real, but he's not slowing down. See insider trades for NVDA. Explore Peter Lynch chart. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data
