Nvidia's China sales would be better than nothing hence price target raise: Wells Fargo's Rakers
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30 minutes ago
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Prediction: Nvidia Stock Will Be Worth This Much by the End of 2025
Key Points Nvidia stock experienced an intense sell-off earlier this year, driven by uncertainty around tariffs and competition in China. Rising infrastructure spending by its largest customers suggests that demand remains strong across the artificial intelligence (AI) landscape. Despite a strong rebound over the last few months, valuation trends suggest that emerging AI opportunities may not be fully reflected in the share price yet. 10 stocks we like better than Nvidia › This year has been an emotional roller coaster for shareholders of Nvidia (NASDAQ: NVDA). Following the news of new tariffs, in combination with intensifying competition in China, the company's shares plummeted by as much as 30% earlier this year, wiping out nearly $1 trillion in market value. Such precipitous declines may have suggested that Nvidia's best days were in the rearview mirror, but the stock's more recent performance says otherwise. As of Aug. 7, it had rebounded by 93% from its 2025 lows and now has a market capitalization of $4.4 trillion, making it the most valuable company in the world. With such strong momentum fueling the stock to new highs, is it too late to invest in Nvidia? Read on to find out. Big tech is spending big bucks on Nvidia's chips Nvidia's largest source of revenue is its computing and networking business. This segment comprises the company's data center services and highly coveted graphics processing units (GPUs). A good way to gauge the health of its business is to look at spending on artificial intelligence (AI). The chart below illustrates capital expenditures over the last three years for cloud hyperscalers Amazon, Microsoft, and Alphabet, along with social media company Meta Platforms. These "Magnificent Seven" companies prove that accelerating AI infrastructure spending is a powerful tailwind for Nvidia's chip empire. Beyond the usual tech titan suspects, rising adoption of cloud infrastructure services from Oracle -- as well as neocloud platforms such as Nebius Group and CoreWeave -- offer another source for GPU demand, especially for Nvidia's latest Blackwell architecture. Neoclouds are gaining interest at the moment as they offer flexible software-hardware stacks in the form of high-performance computing (HPC) services and access to GPU clusters via cloud-based infrastructures. New opportunities are emerging Over the last few years, investors have repeatedly heard pundits chirp about the importance of data centers in powering generative AI development. This point is valid, but I think many investors are missing the broader picture when it comes to the evolution of AI infrastructure spending. A new phase of AI adoption involves sophisticated workloads across robotics, autonomous driving, and quantum computing. Companies such as Alphabet and Tesla are beginning to monetize their autonomous vehicles, while Microsoft, Alphabet, and Amazon are all developing their own custom quantum computing chips. Nvidia has just started to scale up its chips and CUDA software platform across these emerging opportunities. Given the company's existing deep integration with big tech, I'm optimistic that its product suite will still be crucial in future, more-advanced AI development. What will Nvidia stock be worth by the end of 2025? The chart below illustrates the company's forward price-to-earnings (P/E) multiple throughout the AI revolution. Given the trends cited above, the forward P/E range between 24 and 30 could be seen as a support zone or valuation floor for Nvidia. Each time its forward P/E dipped into this range, the stock has rebounded strongly. To me, this suggests that investors still see robust long-term growth for the company despite occasional fleeting periods of souring sentiment. I think these valuation trends subtly imply that the market could be underestimating the full breadth of Nvidia's ubiquitous platform. Despite the company's influence across AI infrastructure, many investors still view it purely through the lens of a semiconductor business. As these new opportunities are realized, I think the stock is well positioned for a prolonged breakout -- similar to the initial wave of AI-driven enthusiasm a couple of years ago. Although its forward P/E is fast-approaching prior highs, I think there is a solid case to be made that the company is positioned for further valuation expansion and could reach or exceed historical levels. My logic is that the monetization potential of future opportunities in robotics, autonomous vehicles, and quantum computing is still taking shape and not yet fully priced into the stock by investors. If Nvidia's current forward P/E expands to levels congruent with prior highs by the end of the year, the stock could blow past the $200 price point and reach closer to $220 -- implying an increase between 10% and 20% over current price levels. For this reason, I think Nvidia stock will be trading significantly higher by the end of the year than where it is today. Do the experts think Nvidia is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Nvidia make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,060% vs. just 182% for the S&P — that is beating the market by 877.59%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* The 10 stocks that made the cut could produce monster returns in the coming years. 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 11, 2025 Adam Spatacco has positions in Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, Oracle, and Tesla. The Motley Fool recommends Nebius Group and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Prediction: Nvidia Stock Will Be Worth This Much by the End of 2025 was originally published by The Motley Fool
Yahoo
an hour ago
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Dell, Nvidia, and Elastic Join Forces to Supercharge AI Workloads
Aug 12 - Dell Technologies (NYSE:DELL) is teaming up with Nvidia (NASDAQ:NVDA) and Elastic (NYSE:ESTC) to supercharge its AI Data Platform, designed for industries from media and entertainment to finance. The goal is to make it easier for enterprises to build, deploy, and scale AI at lightning speed. Dell's Vrashank Jain calls the platform built for a world where data is gold, pointing to its ability to break down data silos, accelerate workflows, and create richer AI-enabled experiences. Under the hood, Dell PowerEdge R7725 servers paired with Nvidia's RTX PRO 6000 Blackwell Server Edition GPUs deliver serious computing muscle. Warning! GuruFocus has detected 5 Warning Signs with NVDA. Elastic brings its Elasticsearch tech to the table, enabling natural language and vector search. Editors can now pinpoint a scene instantly without digging through endless folders. Nvidia's Omniverse libraries and AI models take it further, streamlining searches through massive 3D asset libraries. Whether in film production or real-time financial analytics, Dell claims the platform accelerates processing, communication and storage of low-latency, high-performance AI workloads. This tripartite co-operation could be a shortcut to greater AI-based efficiency that companies crave. This article first appeared on GuruFocus.
Yahoo
2 hours ago
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Stocks Rally on Higher Odds for Fed Rate Cut after CPI Report
The S&P 500 Index ($SPX) (SPY) on Tuesday rose by +1.14%, the Dow Jones Industrials Index ($DOWI) (DIA) rose by +1.10%, and the Nasdaq 100 Index ($IUXX) (QQQ) rose by +1.33%. September E-mini S&P futures (ESU25) rose by +1.06%, and September E-mini Nasdaq futures (NQU25) rose by +1.25%. Stocks rallied after Tuesday's CPI report was largely in line with market expectations, thus strengthening expectations for a Fed rate cut at the September meeting. On a year-on-year basis, the July headline CPI of +2.7% y/y was slightly weaker than expected, but the core CPI of +3.1% y/y was slightly stronger than expected. The chances for a Fed rate cut at its Sep 16-17 meeting improved to 94% after Tuesday's CPI report from 88% on Monday. More News from Barchart This High-Yield (7%) Dividend Stock Is Down Significantly in 2025. Should You Buy the Dip? Dear CoreWeave Stock Fans, Mark Your Calendars for August 14 Tesla Is Axing Its Dojo Supercomputer Plans. What Does That Mean for TSLA Stock Here? Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! The 2-year T-note yield fell -4.0 bp to 3.729% on the CPI news. However, the 10-year T-note yield closed the day little changed and saw upward pressure after a new attack by President Trump on Fed Chair Powell. Mr. Trump said in a Truth Social post Tuesday morning that he is considering allowing a lawsuit against Mr. Powell related to construction work at Fed buildings. The markets are concerned about the inflation risks involved with the attempt by the Trump administration to push Mr. Powell out of the Fed as a means to push interest rates lower. The July US CPI report of +0.2% m/m was in line with market expectations. The July CPI year-on-year figure of +2.7% y/y was unchanged from June and was slightly weaker than expectations for a +0.1 point increase to +2.8%. The July US core CPI report of +0.3% m/m was in line with expectations. The July year-on-year core CPI figure of +3.1% y/y was up from June's +2.9% and was slightly stronger than market expectations of +3.0%. July's headline CPI of +2.7% y/y and core CPI of +3.1% y/y were up from the post-Covid 4.25-year lows of +2.3% and +2.8%, respectively, posted earlier this year. President Trump signed an executive order overnight extending the US-China tariff truce by 90 days through November 10 to allow more time for negotiators to reach a final deal. That was in line with reporting yesterday by CNBC. The executive order postponed Tuesday's original deadline. That followed previous news that Nvidia and AMD agreed to pay the US government 15% of their revenues on sales of certain lower-powered AI chips sold to China in exchange for export licenses to allow those sales. However, Bloomberg reported today that China's government urged Chinese companies to avoid using Nvidia's H20 processors, particularly for government-related purposes. The markets are awaiting this Friday's Trump-Putin summit in Alaska for any progress in ending the Russian-Ukrainian war. President Trump on Monday downplayed expectations of a breakthrough, saying the summit is a "feel-out meeting" to end the war in Ukraine. Also, recent comments from Ukrainian President Zelenskiy dampened hopes for a quick end to the war when he rejected any talk of Ukraine ceding territory to Russia. In recent tariff news, President Trump early Tuesday extended the tariff truce with China, which was to expire on Tuesday, for another 90 days. Last Wednesday, President Trump announced that he will impose a 100% tariff on semiconductor imports. Still, companies would be eligible for exemptions if they demonstrate a commitment to building their products in the US. However, the US will levy a separate tax on imports of electronic products that employ semiconductors. Also, President Trump announced last Wednesday that he will double tariffs on US imports from India to 50% from the current 25% tariff, due to India's purchases of Russian oil. Last Tuesday, Mr. Trump said that US tariffs on pharmaceutical imports would be announced "within the next week or so." According to Bloomberg Economics, the average US tariff will rise to 15.2% if rates are implemented as announced, up from 13.3% earlier, and significantly higher than the 2.3% in 2024 before the tariffs were announced. The market's focus this week is on corporate earnings results and any new trade or tariff news. On Thursday, weekly initial unemployment claims are expected to fall by -1,000 to 225,000. Also on Thursday, the July final-demand PPI is expected to increase to +2.5% y/y from +2.3% y/y in June, and the July PPI ex-food and energy is expected to rise to +2.9% y/y from +2.6% y/y in June. On Friday, July US retail sales are expected to climb +0.5% m/m and retail sales ex-autos are expected to rise +0.3% m/m. Also on Friday, July manufacturing production is expected to remain unchanged m/m. Finally, the University of Michigan's Aug US consumer sentiment index is expected to climb by +0.3 to 62.0. Federal funds futures prices are discounting the chances for a -25 bp rate cut at 94% at the September 16-17 FOMC meeting and 62% at the following meeting on October 28-29. Earnings reports indicate that S&P 500 earnings for Q2 are on track to rise +9.1% y/y, much better than the pre-season expectations of +2.8% y/y and the most in four years, according to Bloomberg Intelligence. With over 82% of S&P 500 firms having reported Q2 earnings, about 82% of companies exceeded profit estimates. Overseas stock markets on Tuesday closed the day higher. The Euro Stoxx 50 closed the day up +0.08%. China's Shanghai Composite rallied to a 10-month high and closed up +0.50%. Japan's Nikkei Stock 225 today closed up +2.15% and posted a new record high. Interest Rates September 10-year T-notes (ZNU25) on Tuesday fell by -2 ticks, and the 10-year T-note yield ended the day unchanged at 4.285%. T-note prices received an initial boost from the CPI report but then fell back after President Trump launched another broadside against Fed Chair Powell regarding construction costs on Fed buildings. T-note prices had support from Tuesday's -1.4 bp decline in the 10-year inflation expectations rate to 2.386%. European government bond yields rose on Tuesday. The 10-year German bund yield rose +4.8 bp to 2.744%. The 10-year UK gilt yield rose +6.1 bp to 4.626%. Swaps are discounting the chances at 5% for a -25 bp rate cut by the ECB at the September 11 policy meeting. US Stock Movers The Magnificent Seven all closed higher on Tuesday, with Meta (META) leading the bunch with a gain of +3.15%. Nvidia (NVDA) closed the day up +0.57% despite a report that the Chinese government is discouraging Chinese companies from buying Nvidia AI chips, even if the US government allows the sale. Chip stocks led the Nasdaq 100 index higher, with gains of 5% or more in NXP Semiconductors (NXPI), ON Semiconductors (ON), Microchip Technology (MCHP), and Texas Instruments (TXN). United Airlines (UAL) was the biggest gainer in the S&P 500 index with a gain of more than +10%. Airlines were boosted by lower oil prices. American Airlines (AAL) rallied nearly +12% and Delta Airlines (DAL) rallied by +9%. However, Spirit Aviation (FLYY) plunged -41% after its subsidiary Spirit Airlines issued a going-concern warning. Hanesbrands (HBI) rallied +28% after the Financial Times reported that a deal is nearing for Gildan Activewear to acquire Hanesbrands for as much as $5 billion in enterprise value. Paramount Skydance (PSKY) rallied by more than +8% after Guggenheim started coverage on the company with a buy rating and a $13 price target due to a positive outlook for the merged entities of Paramount Global and Skydance Media. Starbucks (SBUX) closed the day up +1.8% on an upgrade to outperform from neutral from Baird. Cardinal Health (CAH) fell by -7.2% after its fiscal Q4 operating income was below market expectations. Getty Images (GETY) fell by -2.3% on disappointment after releasing Q2 earnings and guidance. Earnings Reports (8/13/2025) Loar Holdings Inc (LOAR), Performance Food Group Co (PFGC), StandardAero Inc (SARO), Coherent Corp (COHR), Cisco Systems Inc (CSCO). On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
