Dan Niles Explains Why He Turned Bullish on NVIDIA (NVDA)
Dan Niles, Niles Investment Management founder and portfolio manager, said in a recent program on CNBC that he turned bullish on NVIDIA Corp (NASDAQ:NVDA) for two reasons. The first was the company's China write-down after the US government imposed new restrictions on AI chip sales. The second was related to the core dynamics of the AI industry fueling demand:
'So training spending is slowing down, but you finally had inference spending picking up. And so that means people are going to ChatGPT, OpenAI, Gemini, which is the one I use a lot. I probably use it 10 to 20 times a day. And you had inference demand really start to take off. Google talked about the fact that in the month of May, the tokens that they were generating were up 50 times year-over-year. And then Microsoft, which obviously was invested in OpenAI back in 2019 before any of us had even heard of ChatGPT in 2022, they came out and said, 'Hey, we have a 5x increase in the number of tokens we're generating. And so you put all that together, companies forecast derisks because of that massive write-down, some of the sovereign AI demand as President Trump went to the Middle East and you had all these deals, all of that stuff.'
NVDA is back in the game as even its skeptics are turning bullish amid strong demand for its chips. But Nvidia could face tough competition in the future. Major competitors like Apple, Qualcomm, and AMD are vying for TSMC's 3nm capacity, which could limit Nvidia's access to these chips. Why? Because Nvidia also uses TSMC's 3nm process nodes. Nvidia is also facing direct competition from other giants that are deciding to make their own chips. Amazon, with its Trainium2 AI chips, offers alternatives. Trainium2 chips could provide cost savings and superior computational power, which could shift AI workloads away from Nvidia's offerings.
Mar Vista Global Quality Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its second quarter 2025 investor letter:
'NVIDIA Corporation (NASDAQ:NVDA) shares rebounded from their calendar Q1 lows as investor concerns over DeepSeek's efficiency gains and U.S. government restrictions on advanced AI semiconductors, such as NVIDIA's H20 family of GPUs, proved overstated. Demand for NVIDIA's next-generation Blackwell platform remains strong, fueled by the growing complexity of large language models and the emergence of reasoning-based applications. As CEO Jensen Huang noted, reasoning tasks can require up to 10 times the compute power of training a conventional large language model. With the AI market still in the early stages of a multi-year infrastructure build-out, NVIDIA is well-positioned to capture significant value as the industry standard for accelerated computing.'
Photo by AlphaTradeZone
While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the .
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None. This article is originally published at Insider Monkey.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
21 minutes ago
- Yahoo
Last Chance to Get COSRX's Best-Selling Snail Duo on the House at Alfred Coffee -- This Wednesday Only
LOS ANGELES, July 28, 2025 /PRNewswire/ -- It's the glow-up everyone's been talking about. This July, cult K-beauty favorite COSRX joined forces with LA's iconic café Alfred Coffee for a month long campaign bringing together two of life's greatest pleasures, expertly brewed coffee and game-changing skincare. Fueled by COSRX's Amazon best-selling Advanced Snail line, the collaboration introduced skincare lovers and coffee connoisseurs alike to the brand's holy grail formulas, including the legendary Advanced Snail 96 Mucin Power Essence and Advanced Snail 92 All in One Cream. These products are so good, your skin might just scream "Snailed it!" louder than your first sip of morning caffeine. To spotlight the collaboration, COSRX and Alfred Coffee have turned midweek fatigue into a moment of joy by rebranding Wednesdays, the longest day of the week, as "Slow Wednesdays". Inspired by the brand's snail mucin hero ingredient, the campaign encourages Angelenos to pause, pamper, and perk up with a dose of skincare and coffee. Starting at 7 AM every Wednesday in July, early birds at participating Alfred Coffee locations were treated to a full-sized Snail Essence and Cream set with any drink purchase. Products flew off the shelves within hours, and what started as a six-store giveaway quickly turned into a citywide sensation. Now, as all good things must come to an end, COSRX and Alfred Coffee are going all out for the final Slow Wednesday. Due to overwhelming demand, the event has expanded to 11 Alfred Coffee locations across LA: Melrose Place, Marina del Rey, Ventura Place, Brentwood, Westwood, Coldwater, Arts District, Beverly Hills, Encino, Highland Park, and Silverlake. The final drop happens Wednesday, July 30 at 7 AM, so mark your calendars as this is the last chance to get the TikTok-famous Snail Duo free with any Alfred Coffee purchase. Supplies are limited, so get there early or risk missing out. Throughout the month, the collaboration has featured limited-edition coffee sleeves, influencer takeovers, a buzzing social giveaway, and nonstop excitement both online and off. At its core, the campaign reflects COSRX's mission to help Angelenos slow down and indulge in a little everyday self-care - because nothing pairs better than glowing skin and your favorite latte. So run, don't walk to grab you're favorite "Snailed It" set. About COSRX With its powerful yet affordable skincare solutions, COSRX has quickly become one of America's favorite skincare brands. Using a minimal number of highly effective natural extracts in concentrated doses, COSRX products deliver visible results by treating the skin with only the essentials it needs and nothing it doesn't. Find its best-selling skincare solutions at retailers nationwide, including Amazon, ULTA, Revolve, Dermstore, Nordstrom and Target. COSRX is also on Instagram + TikTok. About Alfred Coffee Alfred first opened in 2013 on Melrose Place with a singular vision: to become the neighborhood coffee shop of LA. Fueled by consistent innovation, everyday excellence, and creative partnerships, Alfred delivers a whole experience – all part of their ongoing mission to invite everyone into their world and give them every reason to stay. With more than 20 locations across Los Angeles and beyond, Alfred continues to set the bar for coffee culture worldwide. Discover more at View original content to download multimedia: SOURCE COSRX Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21 minutes ago
- Yahoo
Highlights of the Nike Deal, Broadcast Partnerships, Kit Sponsorships, and Stadium Naming Rights
Explore the "Business of the NWSL 2025," a detailed report on the women's soccer league's media and sponsorship landscapes. Discover insights on $39.5M in league sponsorship, $60M in media rights, and $66.46M in team sponsorship. Learn about market viewership, team profiles, and social media metrics. Dublin, July 28, 2025 (GLOBE NEWSWIRE) -- The "The Business of the National Women's Soccer League 2025" report has been added to offering. The main aims of this report is to highlight commercial landscape across NWSL. The report aims to break down the key commercial revenue streams for the league and its affiliated teams. It goes into detail on the key partnerships including its centralized rights with Nike, its four main US broadcasters, front-of-shirt rights, sleeve partnerships and stadium naming "Business of the NWSL 2025" report is part of the the analyst's 'Business of' series of sport competition profiles. The report takes a deep dive into the premier competition for women's domestic soccer in the United States. The report explores the biggest rights across the league, specifically looking at the main media and sponsorship rights attached to the NWSL, as well the main sponsorship rights and annual values of the 14 competing teams. The report also looks at market viewership, profiles individual teams and offers social media following comparisons against teams, other American sports leagues and other soccer NWSL stands to generate $39.5 million from league sponsorship this season. Home market media rights worth $60 million across four main broadcaster deals. Team sponsorship in the league worth $66.46 million in Highlights Overview of the media rights landscape. Global media and sponsor partners explored. Breakdown of the sponsorship deals including annual values. Individual team profiles. Team market comparison by sponsorship. Connected social media followers. Reasons to Buy Soccer is a growing sport in the United States as the country build towards jointly hosting (with Canada and Mexico) the 2026 men's FIFA World Cup . The NWSL, alongside the WNBA (basketball) is the most popular women's sports leagues in the United States and has produced many of the best players in the world over the past decade. Key Topics Covered: 1. Overview2. Media landscape3. League sponsorship landscape4. Kit supplier landscape5. Front-of-shirt landscape6. Sleeve landscape7. Back-of-shirt landscape8. Stadium naming rights landscape9. Team sponsorship overview10. Additional revenue & social media11. AppendixKey Data Tables Home market broadcasters Regional broadcasters International broadcasters NWSL ticket revenue For more information about this report visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. CONTACT: CONTACT: Laura Wood,Senior Press Manager press@ For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900Sign in to access your portfolio
Yahoo
21 minutes ago
- Yahoo
Europe Inc swerves Trump trade war 'hurricane' but laments higher tariffs
LONDON (Reuters) -European companies were left wondering on Monday whether to cheer a hard-won U.S. trade deal or lament a still sharp jump in tariffs versus those in place before President Donald Trump's second term. A day earlier, European leaders heralded a framework trade deal with the United States that would impose a 15% import tariff on most EU goods, averting a spiralling battle between two allies which account for almost a third of global trade. Although the deal is better than the 30% rate threatened by Trump and will bring clarity for European makers of cars, planes and chemicals, the 15% baseline tariff is well above initial hopes of a zero-for-zero agreement. It is also higher than the U.S. import tariff rate last year of around 2.5%. "Those who expect a hurricane are grateful for a storm," said Wolfgang Große Entrup, head of the German Chemical Industry Association VCI, calling for more talks to reduce tariffs that he said were "too high" for Europe's chemical industry. "Further escalation has been avoided. Nevertheless, the price is high for both sides. European exports are losing competitiveness. U.S. customers are paying the tariffs." The deal, which also includes $600 billion of EU investments in the United States and $750 billion of EU purchases of U.S. energy over Trump's second term, includes some exemptions, even if details are still to be ironed out. Carmakers Volkswagen and Stellantis, among others, will face the 15% tariff, down from 25% under the global levy imposed by Trump in April. Stellantis shares rose 3.5% and car parts maker Valeo was up 4.7% in early trade. German pharma group Merck KGaA gained 2.9%. Aircraft and aircraft parts will be exempt - good news for French planemaker Airbus - as will certain chemicals, some generic drugs, semiconductor equipment, some farm products, natural resources and critical raw materials. Shares in the world's biggest chip maker ASML rose more than 4%, among the biggest gainers on the pan-European STOXX 600 index. STILL TO BE NEGOTIATED Dutch brewer Heineken cheered the deal, with CEO Dolf van den Brink welcoming the certainty it brought. The world's No.2 brewer sends beer, especially its namesake lager, to the U.S. from Europe and Mexico, and has also suffered from the indirect effect on consumer confidence in important markets like Brazil. The rate on spirits that could impact firms such as Diageo, Pernod Ricard and LVMH, is still being negotiated though. "It seems that in coming days there could be negotiations for certain agricultural products, zero for zero, which is what the European and U.S. sectors have been calling for," said Jose Luis Benitez, director of the Spanish Wine Federation. Benitez added that a 15% rate could put Europe at a disadvantage versus other wine exporting regions subject to 10% tariffs. "If there are any exceptions, we hope that the (European) Commission understands that wine should be one of them." Lamberto Frescobaldi, the president of Italian wine body UIV, said on Sunday that 15% tariffs on wine would result in a loss of 317 million euros ($372.63 million) over the next 12 months, though the group was waiting to see the final deal text. Others said that the agreement- which followed on the heels of a similar one with Japan - helped bring greater clarity for company leaders, but still threatened to make European firms less competitive. "While this agreement puts an end to uncertainty, it poses a significant threat to the competitiveness of the French cosmetics industry," said Emmanuel Guichard, secretary general of French cosmetics association FEBEA, which counts L'Oreal, LVMH and Clarins among its members. ($1 = 0.8507 euros)
