Apple Faces Calls to Reboot AI Strategy With Shares Slumping
Alarmed by a share slump that's erased more than $630 billion in market value this year and frustrated with delays in rolling out AI features, investors are calling for Apple to break with long-standing traditions to make a big acquisition and more aggressively pursue talent.
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32 minutes ago
- Yahoo
Unsung AI stock pops after joining S&P 500
Unsung AI stock pops after joining S&P 500 originally appeared on TheStreet. Though smaller-cap indexes swung wildly, the S&P 500 has been a lot more confident, continuing to grind higher in 2025. Unsurprisingly, Big Tech is pulling its weight, and AI momentum has shown no signs of fading. 💵💰💰💵 That said, one rising AI stock just cleared a massive milestone, and it's quietly stepping onto a bigger stage that will usher in a new growth phase for its business. For companies, getting into the S&P 500 isn't just a flex; it's a monumental event. It's like hitting the jackpot, as you're not only thrown into the spotlight, but also unleashing billions in passive inflows from index funds. Once companies get the green light from the S&P Dow Jones Indices committee, it's game on, as traders, fund managers, and analysts don't wait need a minimum market cap of roughly $22.7 billion, robust liquidity (dollar volume to float above 0.75), and a minimum of 250,000 monthly trading volume. On top of that, companies need at least a 10% public float, a U.S. headquarters, a major exchange listing, and yes, genuine profits in the last quarter and over the past year. An S&P 500 inclusion doesn't just mean a stock bump for companies. It brings more analyst coverage, attractive corporate optics, and even a lower financing structure. In simple terms, the company hits the big leagues, which shows investors that the business has genuine staying power. The index is up 6.6% so far in 2025; it's comfortably outpaced the Dow, while tracking slightly behind the Nasdaq. Generative AI and tech giants are doing all the heavy lifting, but consumer names haven't dropped the ball, either. More Tech Stock News: Veteran analyst drops massive call on AMD stock Bank of America drops shocking call on Super Micro stock Cathie Wood drops bold message on Apple, Tesla stock Despite the inflationary pressures and Fed uncertainty, pullbacks have been mostly shallow. Dips get snapped up quickly by investors who are hunting for value in places such as health care and utilities. Compared to the chaos in smaller-cap names, the S&P's healthy rise feels much more reliable. That's exactly the backdrop one 'sleeper' stock just stepped into. The Trade Desk () just staked its claim to the S&P 500. Trade Desk stock surged 14% on Monday after the digital adtech platform was tapped to join the S&P 500. It replaced ANSYS ahead of its much-talked-about acquisition by Synopsys, with the move becoming official before markets open Friday, July 18. For investors, that upgrade means fresh new capital will be funneling into The Trade Desk, whether markets like it or not. The California-based company operates one of the most advanced AI-powered demand-side platforms (DSPs) in the market. The platform enables advertisers to buy across multiple digital channels, from mobile and desktop to streaming TV in real it gives brands full visibility into where every dollar goes, and users can efficiently target, measure, and optimize campaigns. The real kicker? AI. At the core of its platform is Koa, a tailor-made AI engine that crunches bid signals to predict which ads are likely to perform well. It doesn't just automate bidding — it adapts in real time to efficiently maximize return on investment. And it's not stopping there. The Trade Desk recently launched cutting-edge new tools in tracking viewer behavior across screens, partnering with the leading streaming platforms while rolling out privacy-first identity tech with Unified ID 2.0. What's amazing is that despite the sluggishness in the ad market, The Trade Desk is growing. And now, with its S&P 500 inclusion, it's now finally playing at a tremendous AI stock pops after joining S&P 500 first appeared on TheStreet on Jul 15, 2025 This story was originally reported by TheStreet on Jul 15, 2025, where it first appeared. 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
32 minutes ago
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Nvidia Stock Is at a Peak - What's the Best Play Here for NVDA?
Three weeks ago, we recommended Nvidia Inc. (NVDA) stock in a June 22 Barchart article and shorting out-of-the-money puts. Now, NVDA is near its target prices, and the short play is successful. What is the best play here? NVDA is at $171.30, up over 4.5% today. Trump OK'd an export license to sell its powerful H20 AI chips to China after Nvidia's CEO, Jensen Huang, met with President Trump. The Wall Street Journal said this has been a top seller for Nvidia in China and was specially designed for the Chinese market. How to Buy Tesla for a 13% Discount, or Achieve a 26% Annual Return Alibaba Stock is Well Off Its Highs - What is the Best Way to Play BABA? Generate Income on MSTR Without Owning The Stock (Yet) Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! My prior price target was $178 per share using an estimated 55% forward free cash flow (FCF) margin (i.e., FCF/sales), as well as a 2.85% FCF yield valuation metric (i.e., 35x FCF multiple). Last quarter, Nvidia made a 59% FCF margin. So, if this continues over the coming year, NVDA stock could have further to go. Moreover, analysts have lifted their price targets. Let's look at this. In Q1 ending April 27, Nvidia generated $26.1 billion in FCF on $44.06 billion in sales. That represents a 59.2% FCF margin. Over the trailing months, according to Stock Analysis, it's generated $72.06 billion FCF on $148.5 billion in sales, or a 48.5% FCF margin. So, it seems reasonable to assume Nvidia could make at least a 57% FCF margin going forward. Here's how that would work out. Analysts expect sales to rise to a range between $199.89 billion this year ending Jan. 2026 and $251.2 billion next year. That puts it on a next 12 months (NTM) run rate of $225.5 billion. Moreover, now that it will be able to sell to China again, let's assume this pushes sales at least 5% higher to $236.8 billion: $236.8b NTM sales x 57% FCF margin = $135 billion FCF Just to be conservative, let's use a 55% margin on the lower NTM sales estimates: $225.5 billion x 55% margin = $124 billion FCF So, our estimate is that FCF over the next 12 months could range between $124 billion and $135 billion, or about $130 billion on average Therefore, using a 30x FCF multiple (i.e., the same as dividing by 3.33% FCF yield): $230b x 30 = $6,900 billion market cap (i.e., $6.9 trillion) That is 65% over today's market cap of $4.178 trillion, according to Yahoo! Finance (i.e., at $171.35 p/sh). In other words, NVDA stock could be worth 65% more, or $291.55 per share. $171.35 x 1.65 = $282.73 price target That is what might happen over the next 12 months (NTM) if analysts' revenue targets are hit and its FCF margin averages 56%. Analysts have closer price targets. The average of 66 analysts surveyed by Yahoo! Finance is $173.92. However, that is higher than three weeks ago, when I reported that the average was $172.60. Moreover, which tracks recent analyst recommendations, now reports that 39 analysts have a $200.71 price target, up from $179.87 three weeks ago. One way to play this is to sell short out-of-the-money puts. That way, an investor can set a lower buy-in price and still get paid extra income. In my last Barchart article on June 22 ("Make Over a 2.4% One-Month Yield Shorting Nvidia Out-of-the-Money Puts"), I suggested shorting the $137 strike price put option expiring July 25. The yield was 2.48% over the next 34 days (i.e., $3.40/$137.00). Today, that contract is almost worthless, as it's trading for just 8 cents. In other words, the short seller of these puts has made almost all the money (i.e., the stock has risen, making the short-put play successful). The investor's account has little chance of getting assigned to buy 100 shares per put contract at $137.00 on or before July 25. It makes sense to roll this over by doing a 'Buy to Close" and entering a new trade to 'Sell to Open' at a later expiry period and higher strike price. For example, the Aug. 29 expiry period, 45 days to expiry or DTE (which is after the expected Aug. 27 Q2 earnings release date), shows that $155.00 strike price put has a midpoint premium of $3.93. So, the short-put yield is: $393/$155.00 = 0.2535 = 2.535% over 45 days That works out to an annualized expected return (ER) of +20.28% (i.e., 2.535% x 8). So, even if NVDA stock stays flat, the investor stands to make good money here shorting these puts every 45 days (assuming the same yield occurs). There seems to be a low risk here, given that the delta ratio is just 23%. But, given how volatile NVDA has been, and that the stock is at a peak, it might make sense to use some of the income received to buy puts at lower strike prices. Keep in mind that the breakeven point, i.e., the price where an unrealized loss could occur, is $151.07: $155-$3.93 = $151.07 That is 11.8% below today's price. But it is not uncommon for a stock like NVDA to fall 20% from its peak. That would put it at $137.00. So, using some of the income to buy long puts at $140 or $145 is not unreasonable. That would cost between $144 and $204 ($174 on average) for the $15,500 investment (net of $393 already received): $393 income - $174 long hedge = $219, or $219 / $15,500 invested in short put play = 1.41% New Breakeven = $15,500 = $174 = $15,326 or $153.26 per put contract This means that the investor's potential (unrealized) loss is between $14,250 and $15,326, or -$1,076 net on the $15,326 net investment, or -7%. But keep in mind that this is only an unrealized loss. The investor would have protected himself from a much lower downside by buying long puts from the income received. And, after all, the price target is substantially higher, so the investor might be willing to hold on or even sell out-of-the-money call options to recoup some of the unrealized loss. The bottom line here is that NVDA has room to move higher. Shorting OTM puts with a lower strike price long put hedge is one good way to play this. On the date of publication, Mark R. Hake, CFA 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 Sign in to access your portfolio
Yahoo
36 minutes ago
- Yahoo
Top Stock Movers Now: Nvidia, AMD, Newmont, BlackRock, and More
Major U.S. equities indexes were mixed at midday Tuesday while China trade developments in the semiconductor sector boosted tech stocks. Shares of MP Materials soared after Apple said it would invest $500 million in the owner of America's only operational rare earths mine. Gold miner Newmont's CFO suddenly resigned, and shares U.S. equities indexes were mixed at midday Tuesday as tech stocks got a boost from semiconductor stocks. The tech-heavy Nasdaq climbed, while the S&P 500 and Dow dropped. Nvidia (NVDA) and Advanced Micro Devices (AMD) shares surged after the Trump administration reversed course and said it will allow the companies to sell key AI chips to China again. Shares of MP Materials (MP) soared after Apple (AAPL) said it would invest $500 million in the owner of America's only operational rare earths mine. Apple shares rose as well. Shares of medical equipment provider Steris (STE) gained on an upgrade from Morgan Stanley, which pointed to positive developments in its sterilization operations and market trends. Newmont (NEM) was the worst-performing stock in the S&P 500 as the gold miner's CFO, Karyn Ovelmen, suddenly resigned. Shares of BlackRock (BLK) dropped after the investment manager missed quarterly revenue estimates, even as it posted a record $12.5 trillion in assets under management. Wells Fargo (WFC) shares declined after the bank's net interest income came in below forecasts, and it lowered its guidance. Oil and gold futures declined. The yield on the 10-year Treasury note fell. The U.S. dollar was up on the euro, pound, and yen. The rally in cryptocurrencies stalled, with prices for most major digital coins lower. Read the original article on Investopedia 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
