This fast-casual restaurant stock is worth buying, says KeyBanc
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Yahoo
2 hours ago
- Yahoo
Top analyst resets Nvidia price target for one surprising reason before earnings
Top analyst resets Nvidia price target for one surprising reason before earnings originally appeared on TheStreet. Nvidia () stock just got a major price target reset ahead of earnings, but the twist isn't more AI hype. KeyBanc Capital Markets John Vinh's call is built around a factor effectively hiding in plain sight, something investors haven't fully priced in. It's not about demand, nor is it about China, or even the usual AI narrative. 💵💰💰💵 Instead, it's a potential shift that could change how quickly Nvidia is able to ramp up sales, while fattening up its margins in the process. Moreover, with expectations sky-high already, this quiet revamp could be an overlooked driver, making Nvidia's Q2 earnings print one to watch more closely. Who is analyst John Vinh? John Vinh, managing director and equity research analyst at KeyBanc Capital Markets, has a keen eye on the chip space and AI-infrastructure supply chains. Among the stocks he covers closely is Nvidia, along with other chip names, and he has become a trusted voice on the sector. On TipRanks, he attracts a 5-star rating, with an impressive 60% success rate and an 18.9% average return per rating. This makes him one of the top-ranked tech analysts tracked on the platform. For perspective, Dan Ives of Wedbush fame has just a 49% success rate on the platform. KeyBanc's John Vinh raises Nvidia target ahead of earnings on "yields," not just AI Ahead of Nvidia's Q2 earnings report on August 27, KeyBanc's John Vinh lifted his Nvidia price target to $215 from $190, on the back of better manufacturing yields. Specifically, Vinh cites the GB200 server rack yields nearing an incredible 85%, which means that more systems are breezing through QA and shipping improved throughput has him raising his full-year rack shipment forecast to 30,000 units, up from 25,000. Simply put, Nvidia's backlog is being converted into sales at a much quicker pace, on the back of more efficient execution at the factory level. Supply is catching up, too. Blackwell B200 availability has surged at an eye-catching 40% in Q2, and it's set to climb another 20% in Q3. The rollout of Blackwell Ultra is also accelerating, potentially making up 50% of Blackwell shipments by October, resulting in a more diverse product mix. On numbers, Vinh now sees Q2 sales at $47.1 billion (consensus estimate at $45.7 billion) but trims Q3 to $50.4 billion (consensus estimate at $53.5 billion), excluding China due to license uncertainty. If we include China, he sees even greater upside of $2 billion to $3 billion, driven by H20 and RTX6000D (B40) shipments. Why Nvidia is an AI juggernaut Nvidia dominates the AI hardware stack with a whopping 80% market share, covering chips, systems, networking, and sticky CUDA software. That grip naturally shows up in its financials. Nvidia posted $130.5 billion in FY2025 sales, more than 50% from last year, with U.S. hyperscalers deploying millions of accelerators in training and running their AI models. Blackwell is a big part of that impressive lead. Nvidia's new Blackwell B200/GB200 platform is a beast, packing 208 billion transistors, a fresh Transformer Engine, and NVLink 'super-highways' that let 576 GPUs act like one giant result is that it efficiently delivers 30-times quicker inference and much speedier AI responses, like almost instantaneous chatbot replies. Memory is another massive leap. Blackwell uses HBM3e (High Bandwidth Memory 3e special stacked DRAM right next to a potent processor for ultra-fast data access), handling up to 288GB per GPU. Analysts feel Blackwell could contribute 80% of Nvidia's high-end shipments in 2025, while Nvidia is set to control north of 70% of HBM supply. Nvidia Q2 preview: what to watch Nvidia is set to report its fiscal year 2026 Q2 results Aug. 27, and here's what Wall Street expects: Revenue: $45.7 billion to $45.9 billion (management guided for around $45 billion in sales) EPS: Roughly $1 Gross margin: 71.8% (marker); 5-year average is 66.2%. The big swing factors? The first is Data Center momentum, which has been massive over the past several quarters, particularly at $39.1 billion in Q1. Second, there's the early Blackwell ramp with more B200 chips flowing in and GB200 racks passing quality checks a lot quicker, pulling revenue there's the plumbing, where networking gear like NVLink switches and full racks are moving abroad with memory (HBM) and packaging bottlenecks. Wall Street models expect Nvidia to beat Q2 numbers, where some see Q2 revenue hitting closer to $47 billion, but Q3 staying near $50 billion to $52 billion, depending on geopolitics. China is still the wild card Investors shouldn't expect a clean boost from China in Nvidia's guidance just yet. The U.S. only started issuing H20 licenses on August 8, and reports surfaced from Beijing, where it discouraged its use for sensitive work. Meanwhile, Nvidia is cooking up a more robust Blackwell-based 'B30A,' but still needs customer testing and volume. More News: Billionaire George Soros supercharges Nvidia stake, loads up on AI plays Tesla just got its biggest break yet in the robotaxi wars with a key permit Bank of America drops shocking price target on hot weight-loss stock post-earnings On top of that, Washington is weighing a 15% revenue-share tax on China's AI-chip sales from Nvidia and AMD. According to White House press secretary Karoline Leavitt, despite the hurdles, the Commerce Department is still focused on getting the deal done. 'The legality of it, the mechanics of it, is still being ironed out by the Department of Commerce, and I would defer you to them for any further details on how it will actually be implemented.'Top analyst resets Nvidia price target for one surprising reason before earnings first appeared on TheStreet on Aug 21, 2025 This story was originally reported by TheStreet on Aug 21, 2025, where it first appeared. Sign in to access your portfolio
Yahoo
3 hours ago
- Yahoo
CAVA Group, Inc. (CAVA) 'Just Costs Too Much,' Says Jim Cramer
We recently published . CAVA Group, Inc. (NYSE:CAVA) is one of the stocks Jim Cramer recently discussed. CAVA Group, Inc. (NYSE:CAVA)'s shares are among the worst performers on the market as they have lost 40% year-to-date. The stock fell by 16.6% in August after the firm's second quarter earnings report saw its revenue miss estimates by $5 million, and it slashed its full-year midpoint same-store sales guidance to 5% from an earlier 7%. Cramer remarked that one reason CAVA Group, Inc. (NYSE:CAVA) is suffering because its prices are too high: '[On recent earnings] Yeah and I do think that when we look at Cava, not mentioned on the call, it's expensive. You're talking about 15 smackers versus go and get a smash burger a couple of drinks, a diet coke. Yeah but Chilli's is ten dollars. Photo by Syed Ahmad on Unsplash Later during the day, Cramer commented on CAVA Group, Inc. (NYSE:CAVA)'s pricing in detail: 'Brett Schulman, who's a very perceptive man, the CEO of CAVA said, 'We have a fluid… macroeconomic climate.' He told Restaurant Business, which is an excellent trade publication, that the macro climate was like a fog, a fog that the consumer's trying to find her way through… He goes on to say, 'I think the consumer is less firm-footed, less ebullient than they were last year… To me, it's pretty clear what's going on. CAVA and Sweetgreen have to lower their prices or give us a couple of much lower-priced dishes if they want to turn things around. For now, they're pricing themselves out of this American market. I get why they're reluctant to cut prices. What business wants to lower margins?… While we acknowledge the potential of CAVA 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.
Bloomberg
7 hours ago
- Bloomberg
As Cava, Chipotle Sink, Left-for-Dead Rivals Stage a Comeback
As inflation and a slowing economy start taking their toll on the US consumer, the pain is mounting across the restaurant industry. Shares of Chipotle Mexican Grill Inc., Cava Group Inc. and Sweetgreen Inc. — hot names in what had been a booming fast-casual segment — have each sunk around 20% or more since reporting lackluster second-quarter earnings. Even McDonald's Corp., among the most resilient of fast-food standbys, is barely keeping pace with the broader market. All of which makes the robust earnings and stock rallies coming from a slightly more expensive segment of the restaurant world surprising. Casual-dining chains are posting strong sales growth that is suddenly rekindling investor interest in a business that many had condemned in recent years to a slow demise.
