Investors will be rewarded if they believe in Starbucks' turnaround story, CIO says
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
a few seconds ago
- Yahoo
Here's Why Nvidia Outperforms Out to 2028
Key Points Nvidia's data center revenue hit $39.1 billion in Q1 FY26 alone, with Blackwell shipments ramping and Rubin systems coming before 2028. AMD and Intel are winning share at the margins but can't break Nvidia's CUDA ecosystem and supply chain advantages by 2028. Even with a potential government stake in Intel, the AI infrastructure buildout measured in trillions supports Nvidia's pricing power through the decade. 10 stocks we like better than Nvidia › Wall Street is increasingly wary of growing competition in the artificial intelligence (AI) chip market. While Nvidia (NASDAQ: NVDA) continues to dominate with more than 80% of the AI training and deployment market, rivals are starting to score meaningful design wins. Advanced Micro Devices (NASDAQ: AMD) has secured adoption of its MI300X chips at Meta Platforms, Microsoft, and OpenAI. Meanwhile, Intel (NASDAQ: INTC) is in talks with the U.S. government about potential investment support to accelerate its manufacturing and foundry expansion. Bears argue that Nvidia's market share is unsustainably high, especially in an industry prone to disruption, but that view misses the bigger picture. The AI hardware market is growing from hundreds of billions into the trillions, so even a smaller share of a much larger pie can drive enormous profit. More importantly, Nvidia retains a full-stack advantage that integrates hardware, Compute Unified Device Architecture (CUDA) software, ecosystem support, and developer adoption, creating a moat competitors have yet to match. The trillion-dollar tailwind nobody's calculating correctly Forget the hand-wringing about market saturation. The numbers tell a different story. The big four hyperscalers alone are on track to spend $300 billion on AI infrastructure in 2025, according to Morgan Stanley. Backend AI network switching, a direct proxy for graphics processing unit (GPU) cluster scale, will top $100 billion between 2025 and 2029, per Dell'Oro Group. Omdia forecasts that the cloud and data center accelerator market will reach $151 billion by 2029, with growth merely moderating, not reversing, after 2026. Nvidia's first-quarter results of fiscal 2026 put this opportunity in perspective. Total revenue hit $44.1 billion for the quarter, with data center revenue alone generating $39.1 billion. That's not a typo -- $39.1 billion in three months from data centers. At this scale, even if Nvidia loses 10 points of market share, the absolute dollar opportunity keeps growing. When your addressable market is expanding by hundreds of billions annually, you don't need a monopoly share to compound revenue. The moat everyone underestimates Nvidia dominates not because it builds the fastest chips but because it owns the stack. CUDA has become the default environment for training large models, anchoring developers, frameworks, and tooling to Nvidia's ecosystem. NVLink and NVSwitch give its GPUs the ability to communicate at bandwidths PCI Express cannot match, allowing training to scale seamlessly across entire racks. Upstream, the bottlenecks are even more decisive. Advanced packaging capacity for CoWoS at Taiwan Semiconductor is limited, even with output expected to roughly double in 2025 and expand again in 2026. Industry reports indicate that Nvidia has secured the majority of that allocation, leaving rivals with less room to ship at scale. High-bandwidth memory is the second choke point. SK Hynix remains Nvidia's lead supplier, with Micron and Samsung Electronics still ramping up capacity. Priority access to next-generation High Bandwidth Memoty nodes ensures Nvidia's accelerators hit volume while others wait in line. This combination of software lock-in, interconnect scale-out, and privileged supply allocation is not a fleeting edge. It is a structural moat measured in years. Even if competitors design strong alternatives, they can't reach meaningful volume without access to these same resources. That's why Nvidia's premium valuation is not just about market share. It's about owning the rails on which the AI economy runs. Why AMD and Intel can't break the kingdom AMD is real competition -- let's not pretend otherwise. Azure's ND MI300X instances are generally available, Meta publicly uses MI300-class chips for Llama inference, and OpenAI has signaled it will use AMD's latest chips alongside others. ROCm 7 and the AMD Developer Cloud have genuinely improved software support. But here's the reality check: AMD's entire data center revenue was $3.2 billion last quarter, driven largely by EPYC central processing units, not GPUs. Nvidia does that in about a week. AMD wins on price-performance for specific workloads, especially inference. It gives hyperscalers negotiating leverage and caps Nvidia's pricing at the margin. But breaking CUDA's gravity requires more than competitive hardware -- it needs a software revolution that won't happen by 2028. Intel's situation is even more interesting with reports that the Trump administration is considering a government stake. If that happens, Intel gets cheaper capital, stabilized fabs, and preferential treatment for government contracts. But it doesn't solve CUDA lock-in, NVLink scale, or Nvidia's platform cadence. Gaudi 3 is shipping through Dell Technologies' AI Factory and IBM Cloud, targeting better price performance than H100 on selected workloads. But it's still behind H200 and Blackwell in absolute performance and ecosystem support. The path to 2028 The base case through 2028 is straightforward: demand growth plus platform innovation keep Nvidia atop training workloads while AMD and Intel expand as cost-optimized alternatives. Nvidia maintains 70% to 80% share in training and loses some inference share to cheaper alternatives but grows absolute revenue on market expansion. The bears worry about customized chips, power constraints, or supply shocks, but none of these threats materialize fast enough to derail the story before 2028. Should you invest $1,000 in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,106,071!* Now, it's worth noting Stock Advisor's total average return is 1,070% — a market-crushing outperformance compared to 184% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 18, 2025 George Budwell has positions in Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Advanced Micro Devices, Intel, International Business Machines, Meta Platforms, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft, short August 2025 $24 calls on Intel, and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Here's Why Nvidia Outperforms Out to 2028 was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
a few seconds ago
- Yahoo
XPeng Q2 Earnings Preview: What to Expect From Upcoming Report
Aug 18 - Chinese electric vehicle maker XPeng (NYSE:XPEV) will release its second-quarter 2025 results before markets open on Tuesday, August 19. Analysts expect a per-share loss of $0.11, an improvement from the $0.19 loss in the same quarter last year. Revenue is projected at $2.50 billion, up 123% year-over-year, highlighting continued momentum in the company's sales. Warning! GuruFocus has detected 1 Warning Sign with XPEV. XPeng stock has surged more than 70% year-to-date and 173% over the past 12 months, supported by robust vehicle deliveries, rising revenue, and new model launches. The company has outperformed consensus EPS estimates in six of its last eight quarters, keeping investor expectations elevated heading into this release. Recent delivery updates also point to strong demand. On August 2, XPeng reported 36,717 vehicles delivered in July, a 229% jump from a year earlier and a 6.1% increase from June. The affordable Mona 03 sedan has played a key role in accelerating sales, alongside ongoing international expansion and fresh model rollouts. The earnings release will provide investors with clearer visibility into XPeng's margin trajectory and how it plans to navigate China's highly competitive EV landscape. Is XPEV Stock a Buy? Based on the one year price targets offered by 24 analysts, the average target price for XPeng Inc is $24.31 with a high estimate of $29.97 and a low estimate of $11.99. The average target implies a upside of +23.39% from the current price of $19.70. Based on GuruFocus estimates, the estimated GF Value for XPeng Inc in one year is $32.59, suggesting a upside of +65.43% from the current price of $19.70. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
a few seconds ago
- Yahoo
Wedderspoon Organic owner Florenz strikes deal to buy fellow honey firm Comvita
New Zealand's Comvita has agreed to a takeover bid from fellow Mānuka honey supplier Florenz. Florenz, which owns honey brand Wedderspoon Organic, has offered NZ$0.8 ($0.48) a share for Comvita. In a stock-exchange filing today (18 August), Comvita said its board "unanimously" recommended shareholders vote in favour of the bid. The offer represents a 67% premium to Comvita's closing share price on 15 August, values the company's equity at approximately NZ$56m and giving it an enterprise value of around NZ$119m. "Recent years have been challenging for Comvita and its shareholders, with sustained sector pressures, softer market conditions and the demands of a complex turnaround weighing on performance," Comvita chair Bridget Coates said. "Comvita has faced ongoing pressure from structural changes in the Mānuka honey sector, which continues to face oversupply, price and demand volatility, and intense competition, including online. Florenz is a subsidiary of Christchurch-based Masthead Limited and was set up to develop New Zealand's largest health and wellness export business. Its portfolio also includes supplements exporter Xtend-Life and sports-nutrition brand 2before Performance Nutrition. Coates added: "The environment is fragmented, with several participants under financial strain. Industry dynamics require consolidation at pace but sector leadership demands capital strength, scale and speed, which are not available to Comvita under its current capital structure." In June, Comvita has appointed Karl Gradon, a former CEO of a rival Manuka honey producer, as its new chief executive. From December 2015 to June 2018, he was CEO of New Zealand Mānuka Group. More recently, he was CEO of New Zealand dairy processor Miraka for three years up to this April. The company has focused on repositioning itself as a premium brand, investing in marketing, distribution, supply security and scientific credibility. Coates said: "Significant capital was invested in brand equity, distribution reach, supply security and scientific credibility to position Comvita for this opportunity. A number of these investments did not meet their objectives or deliver expected returns. In parallel, market growth did not materialise at the expected pace, competition intensified and oversupply created additional headwinds, reducing profitability. "Comvita has taken urgent steps to reduce costs, simplify operations, and protect long-term brand strength – which are delivering early results – and the brand remains the category leader in key markets. However, these factors alone are not sufficient to strengthen the balance sheet or position the business for long-term sustainability." June also saw Comvita warn it could book a 'material' impairment charge for the 2025 financial year, which closed at the end of the month. Commenting on trading conditions Coates said today they 'remained challenging', with the group expecting a 'significant loss' as well as a 'material write-down' of net assets as a result of impairment tests against inventories. She added: "Comvita's lenders are providing short-term accommodation but have signalled that a longer-term solution – through debt repayment or potential strategic transactions – is required." Comvita will present its full-year results on 29 August. "Wedderspoon Organic owner Florenz strikes deal to buy fellow honey firm Comvita " was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. 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
