Morgan Stanley maintains bullish stance on Nvidia heading into earnings, raises price target
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CNBC
34 minutes ago
- CNBC
CNBC Daily Open: Not even fire extinguishers can escape the Trump administration's tariffs
Even as tariff-related ruction appears to be settling down for the summer, U.S. President Donald Trump's administration is still reshaping global trade and industry. After the Trump administration hinted it could be open to Nvidia exporting more powerful chips to China after their revenue-sharing agreement, the semiconductor darling was reported to be developing a new chip for Beijing. And Intel's bounty from the CHIPS Act, formalized by the previous administration under Joe Biden, might come with a price tag of giving the current U.S. government a stake in the company. Meanwhile, the effects of tariffs continue to creep into everyday life. The costs incurred by fires in the U.S. — think of the tragic Los Angeles wildfires in January or the one near the Grand Canyon just last month — are already growing, not just in terms of the physical damage but also the price of insurance premiums. And now that Trump has added fire extinguishers to a list of steel products that will face a 50% import tariff, even the price of relatively more benign and contained fires, such as those you start to burn photographs of your ex-partner, will be more expensive to put out. That's a truly protest-worthy tariff. Trump expands reach of steel and aluminum tariffs. The duties, which impose a 50% charge on imports, will include more than 400 additional product categories, such as fire extinguishers, machinery and construction materials. Nvidia says it is evaluating 'a variety of products.' The chipmaker is working on a new artificial intelligence chip for China that will be based on its Blackwell architecture, making it more powerful than the currently available H20, reported Reuters. Intel equity in return for U.S. government funding. U.S. Commerce Secretary Howard Lutnick said Tuesday that the White House will provide the chipmaker with cash, which was promised under the CHIPS Act, in exchange for "an equity stake for our money." Technology stocks weigh down U.S. markets. The Nasdaq Composite fell 1.46% on Tuesday as shares of Palantir sank more than 9%. The Stoxx Europe 600 rose 0.69% even though European defense stocks tumbled. The U.K.'s FTSE 100 hit a record close. [PRO] UBS raises its forecast for gold — again. Despite the rally for gold stalling since the middle of the year, the Swiss banking giant hiked its 2025 and 2026 target for gold prices. Trump promised Ukraine 'security guarantees': Here's what they could look like The most significant development from Monday's talks between U.S. President Donald Trump, Ukraine's President Volodymyr Zelenskyy and European leaders was Trump's statement that security guarantees for Ukraine would be "provided" by European countries in "coordination with the U.S." French President Emmanuel Macron hinted Tuesday that the "first security guarantee we are working on — and it is the most important — is a strong Ukrainian army, composed of several hundred thousand men, well equipped, with defense systems and higher standards."
Yahoo
2 hours ago
- Yahoo
Stock market today: Dow, S&P 500, Nasdaq futures trade flat after bruising day for tech
US stock futures traded mostly flat after a bruising day for tech stocks. Futures attached to the Dow Jones Industrial Average (YM=F) rose 0.1%. Futures attached to the benchmark S&P 500 (ES=F) wavered around the flatline. Futures attached to the tech-heavy Nasdaq 100 (NQ=F) held steady. Stocks mostly fell on Tuesday as Palantir (PLTR), AMD (AMD), and Nvidia (NVDA) dragged down the Nasdaq by more than 1%. The drop was the latest sign investor interest in Big Tech is waning as previously lagging sectors are showing signs of new life. Home Depot (HD) also reported earnings, with its stock getting a boost from rising US sales. Two more retail giants, Target (TGT) and Walmart (WMT), are set to report their results on Wednesday and Thursday, respectively. How the group fares will offer a snapshot into how companies and consumers are handing President Trump's tariffs. Walmart's last earnings report took a dramatic turn over trade policy after it warned of price hikes, and Trump responded by telling the company to "eat the tariffs." Read more: The latest on Trump's tariffs The main event for Wall Street this week, however, lands Friday, when Federal Reserve Chair Jerome Powell will deliver remarks at the Jackson Hole symposium in Wyoming. Investors are eager for a sense of where policymakers stand on the question of interest rate cuts after economic data this month showed they face a tricky dilemma between a weakening labor market and stubborn inflation. The release of minutes from the Fed's July's meeting on Wednesday will serve as a curtain-raiser to Powell's speech. Policymakers held interest rates steady at that meeting and stressed no decisions had been made about September, despite Trump suggesting otherwise.
USA Today
2 hours ago
- USA Today
How Nvidia could become the first $5 trillion company by the end of 2025
Just because it's already the biggest company in the world by market cap doesn't mean the GPU leader doesn't have a lot of room to grow. Nvidia (NASDAQ: NVDA) recently made history by becoming the first company to reach a market capitalization of $4 trillion — and it's quickly racing toward the $5 trillion milestone. That one may even be easier to achieve, as Nvidia's stock needed to rise by 33% to go from $3 trillion to $4 trillion, but would only have to gain 25% to go from $4 trillion to $5 trillion. Indeed, Nvidia is currently valued at around $4.2 trillion, so it only needs to rise an additional 19% to hit the next trillion-dollar valuation threshold. I think it could achieve that by the end of 2025. Here's the path it could take to do so. Nvidia getting approval to sell chips to China again will be a huge deal Nvidia designs graphics processing units (GPUs), as well as a range of hardware and software that support its chips. The Nvidia ecosystem in the GPU and AI-accelerator sphere is second to none, and has enabled it to gain a 90% market share in the data center GPU space. GPU demand has risen massively over the past few years due to unprecedented new demand for processing power to train and operate artificial intelligence software. Because GPUs are parallel processors, they are capable of rapidly handling the specific types of computing that make up the largest share of AI workloads. They are, simply, the right tools for the job. While Nvidia has put up jaw-dropping growth numbers for a few years, there are still plenty of growth catalysts on the horizon. First, Nvidia is likely going to be allowed to sell its H20 chips in China again. The company specifically designed those Hopper architecture chips to be less powerful than the H100 design they were based on to avoid running into U.S. restrictions on exporting high-powered GPUs to China. Then, President Trump revoked Nvidia's licenses to sell H20s to China in April. However, thanks to CEO Jensen Huang's lobbying efforts, Nvidia is reapplying for an export license and has been given assurances from the U.S. government that it will be approved. This is a bigger deal than most investors realize, as it would allow Nvidia's already fast growth to reaccelerate. For its fiscal 2026 second quarter (which ends late in July), Nvidia is projecting 50% year-over-year revenue growth to $45 billion. However, the company indicated that $8 billion in revenue would not be realized due to export restrictions. If it had been able to make those sales, that would have given Nvidia a projected 77% growth rate for the second quarter. That would have surpassed what it experienced in Q1 or nearly matched the result from Q4 of fiscal 2025. NVDA Operating Revenue (Quarterly YoY Growth) data by YCharts. While there isn't any time left for sales and exports of H20 chips to make an impact on its fiscal Q2, they could benefit the company in its fiscal Q3. If Nvidia's revenue growth reaccelerates through the end of the year, this could cause the stock to skyrocket at least the remaining 19% to cross the $5 trillion threshold. But Nvidia's growth won't stop there. Data center growth will drive Nvidia's stock higher for years For 2025, AI data center hyperscalers announced record-setting capital expenditures — money that will primarily go toward expanding their data center capacity. Building a data center is a multiyear process, so investors shouldn't be surprised if these companies announce further increased capital expenditures next year, or at least match 2025's levels. This bodes well for the company, but the wins won't stop in 2026. During its 2025 GTC event, Nvidia execs cited a third-party analysis that looked at data center capital expenditure trends. In 2024, data center capital expenditures globally were about $400 billion. That figure is expected to rise to $1 trillion by 2028. Clearly, the data center buildout trend can be expected to continue driving Nvidia's revenue higher, as many of these data centers will house enormous numbers of its GPUs. So even if its market cap doesn't hit the $5 trillion mark by the end of this year, it's well on its way to achieving it sometime in 2026. With the long-term annualized average gain in the market at about 10%, Nvidia is a no-brainer buy right now. Keithen Drury has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy. The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY. Should you invest $1,000 in Nvidia right now? 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