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Yahoo
12 minutes ago
- Yahoo
Veteran fund manager who predicted Nvidia stock rally resets forecast on China shock
Veteran fund manager who predicted Nvidia stock rally resets forecast on China shock originally appeared on TheStreet. The move off the early April lows is impressive. The S&P 500 dropped 10% following President Trump's tariff announcement on April 2, so-called "Liberation Day," but has since recaptured all its losses and made new highs. The S&P 500's spring sell-off was fast and unexpected, sparking fear that trade war uncertainty would serve as a catalyst for stagflation or outright recession. As a result, many investors sold top performers, including Nvidia, before a massive post-sell-off run higher. An 82% rally in Nvidia's stock price since its early April low likely surprised many, and investors who missed the buy-the-dip move are likely shaking their heads, wondering if it's too late to buy. 💵💰💰💵 One who wasn't caught flat-footed by Nvidia's move is veteran Wall Street fund manager Dan Niles. In late April, he said Nvidia shares would likely continue climbing, writing in a post on X, "$NVDA: While their quarter ends in April, four reasons make me optimistic on the stock in the near-term," citing surging AI inference demand, among other things. It wasn't Niles's first correct call this year. In December, he chose cash as his top holding for 2025 over worries that stocks would drop before the S&P 500's 19% drop beginning in February. In April, he suggested the market sell-off was overdone, setting stocks up for gains. Now that Nvidia has rallied sharply higher to become the US stock market's largest company, with an eye-popping $4 trillion market capitalization, Niles has updated his outlook in the wake of a surprising shift in US-China regulations. Nvidia rides tsunami of AI demand to record highs Nvidia's ascent over the past few years is one for the record books. OpenAI's launch of ChatGPT—the fastest app to reach one million users—uncorked a tidal wave of interest in artificial intelligence research and development, causing Nvidia's revenue, profit, and share price to everyone is getting in on the AI action. Banks are using AI to hedge risks on portfolios and loans, manufacturers are evaluating its use in quality control and automation, retailers are embracing it to stop retail theft and improve supply chains, and healthcare companies are seeing if it can improve drug development and treatment. Even the US military is considering its use on the battlefield. AI may seem like a new thing, given that talk of it is everywhere. But AI R&D has been happening for many decades. The mathematician and computer scientist Alan Turing investigated AI computer design in the 1950s, and Rand Corp. developed the first AI program in 1956. Over the years, many science-fiction books and movies, including Terminator, have examined the potential of machines someday thinking for themselves. ChatGPT's launch has been AI's biggest Main Street moment, though. The large language model's ability to quickly parse data has spawned many rivals, including Google's Gemini, China's DeepSeek, and Amazon-backed Anthropic. Microsoft has rolled out CoPilot, and Meta Platforms is in the mix too. There's also been a surge in agentic AI in the past 12 months as companies of all sizes look to find ways to leverage AI "agents" for productivity and cost savings. All this means there's a tremendous need for computing power, and unfortunately, most networks aren't optimized to handle AI's heavy workloads. More Nvidia: Analysts revamp forecast for Nvidia-backed AI stock Nvidia stock could surge after surprising Taiwan Semi news Nvidia CEO sends blunt 7-word message on quantum computing As a result, hyperscalers like Google Cloud, Amazon's AWS, and Microsoft's Azure, along with most hybrid and private enterprise networks, have rushed to replace clunky servers running on legacy CPUs with high-end solutions like liquid-cooled server racks powered by Graphics Processing Units (GPUs). This seismic shift in network infrastructure has created a tsunami of demand for Nvidia, the de facto leader in GPUs and the software necessary for running them efficiently. The company's latest Blackwell GPUs can cost $30,000 to $40,000 each, and fully equipped server racks can cost millions. Unsurprisingly, Nvidia's annual revenue has surged to over $130 billion from about $27 billion in 2022, and its profit has similarly skyrocketed thanks to juicy margins. Its net income was $73 billion last fiscal year, up from $9.8 billion in 2022. Over this period, Nvidia's share price has catapulted 1,080% higher. Nvidia regains footing as China headwind eases Nvidia's rapid growth and share gains have rewarded long-term investors, but stocks don't rise or fall in a straight line, and even the most successful companies suffer notching all-time highs in February this year, shares came under pressure as economic worries raised concerns that AI infrastructure spending is peaking, particularly in the wake of reports that DeepSeek's latest AI chatbot was developed for only $6 million on older, less costly hardware. Nvidia was also dealt a blow by ongoing US regulatory scrutiny over selling next-gen technology to China. Worry that China may use Nvidia's GPUs against the US someday prompted significant restrictions on Nvidia's ability to market chips in China, resulting in a ban on sales of its most popular chip in China, the H20. In response, Nvidia was forced to take a $5.5 billion write-off earlier this year. The combination of a weakening stock market, economic recession risks amid tariff-fueled trade wars, AI spending risks, and product bans contributed to Nvidia stock falling 41% from its January high to its April low. Nvidia's shares have since recovered lost ground, with investors broadly concluding that the worst is now behind it. Hyperscaler and enterprise AI spending has yet to wobble and recently, President Trump's administration cleared the way for Nvidia to resume H20 chip sales in China, removing a key overhang. The potential for agentic AI to fuel inference demand for chips has also accelerated. The backdrop for improving tailwinds isn't surprising to Niles, given his late April conclusion that Nvidia's stock could head higher. And now that the China chip freeze has thawed, Niles has rebooted his bullish outlook. "W/ export restriction coming off, expect an order surge from China for $NVDA given fears they could come back," wrote Niles on X. "China has half the AI researchers in the world & is at least 20% of AI chip demand. China rev was out of Nvidia estimates post write-down but is now coming back." In April, Niles said he didn't anticipate removing China restrictions, which could now allow Nvidia to eventually "get clearance to sell a detuned version of their latest Blackwell chip into the China market at some point." That possibility could lead to a rethink of analysts' forward revenue and earnings estimates, with increases potentially supporting stock prices. Gene Munster of Deepwater Asset Management thinks consensus revenue estimates could climb 10%. And, as for the risk that slowing AI R&D for training new AI chatbots and AI apps could ding demand for chips, Niles isn't convinced given token growth associated with using AI agents. "As agentic AI increasingly gets adopted and proliferates across the one device consumers always have with them, the smartphone, this token growth should remain strong," wrote Niles. "Hardware demand for inference should ultimately dwarf the demand for training." Todd Campbell has owned shares in Nvidia since fund manager who predicted Nvidia stock rally resets forecast on China shock first appeared on TheStreet on Jul 19, 2025 This story was originally reported by TheStreet on Jul 19, 2025, where it first appeared.
Yahoo
12 minutes ago
- Yahoo
Is Quantum Computing Stock a Buy for Less Than $20?
Key Points Quantum computing technology is forecast to be a multitrillion-dollar opportunity and has even received high praise from Nvidia CEO Jensen Huang. Quantum Computing trades for $18 per share, giving the appearance of a cheap stock in a hot market. More thorough valuation analysis is required in order to understand Quantum Computing's potential as a long-term investment. 10 stocks we like better than Quantum Computing › Over the last several months, artificial intelligence (AI) enthusiasts have become intrigued by an emerging technology known as quantum computing. Although quantum applications are not yet operating at scale, industry research suggests the technology could be a game changer. Management consulting firm McKinsey & Company forecasts that quantum computing could add trillions in economic value in the coming decades, signaling this technology could revolutionize the AI megatrend over the long run. One company that has received quite a bit of attention in the quantum arena is Quantum Computing (NASDAQ: QUBT). Quite an apropos name, if you ask me. With shares trading just below $20 as of this writing, is now a good time to scoop up shares of Quantum Computing stock? What's with all the hype around Quantum Computing stock? Over the last year, shares of Quantum Computing have risen by 2,480% -- handily outperforming the S&P 500 and Nasdaq Composite. With such tantalizing gains, Quantum Computing's business must be on a roll, right? Well, not quite. Over the last 12 months, Quantum Computing has only generated about $385,000 in revenue. To me, the meteoric rise in Quantum Computing's share price can be attributed to a number of macro-oriented narratives as opposed to anything company-specific. For example, Nvidia CEO Jensen Huang has spoken favorably about the prospects of quantum computing on multiple occasions. Considering how important Nvidia's technology stack is for the broader AI narrative, investors likely find it encouraging that the visionary CEO appears bullish on the quantum computing opportunity. On top of that, some economists think an interest rate cut from the Federal Reserve could be on the horizon. Diminishing rates could be viewed positively by investors, and growth stocks such as Quantum Computing would likely be particular beneficiaries of renewed investor enthusiasm. Assessing Quantum Computing's valuation Per the chart below, Quantum Computing boasts a price-to-sales (P/S) ratio over 5,200. When you assess Quantum Computing from this perspective, the company's nominal revenue levels really come into focus. How can a company generating only a few hundred thousand dollars in sales achieve a multibillion-dollar market cap? In my eyes, Quantum Computing stock is largely trading on a bullish narrative at the intersection of AI and quantum applications. To drive home how silly Quantum Computing's valuation really is, consider the following: Dot-com bubble: During the most euphoric days of internet hype during the late 1990s, companies such as Amazon, Microsoft, and Cisco witnessed peak P/S multiples in the range of 31 to 43. COVID-19 bubble: In more recent history, companies such as Zoom Communications and Peloton Interactive witnessed stratospheric valuations as investors bought into the narrative that these companies would capitalize on remote work trends and the at-home economy. Zoom's P/S peaked at around 124 while Peloton's high was roughly 20. Is Quantum Computing stock a buy right now? According to recent company filings, Quantum Computing recently issued 14,035,089 shares at a purchase price of $14.25 in an effort to raise capital. Considering the company barely generates revenue and is unprofitable, it was only a matter of time before Quantum Computing faced a liquidity crunch. I see this share issuance as a sign that management understands how stretched the company's valuation has become; therefore, it took strategic advantage of current inflated prices. While Quantum Computing stock might appear cheap at $18 per share, the valuation analysis explored above underscores that the company is trading well past the point of a bubble. Furthermore, the recent stock issuance could subtly imply that management does not believe the current valuation is sustainable. To me, Quantum Computing is a highly speculative opportunity that is best avoided for now. Do the experts think Quantum Computing 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 Quantum Computing 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 1,048% vs. just 180% for the S&P — that is beating the market by 867.59%!* 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 $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* 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 July 15, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adam Spatacco has positions in Amazon, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Amazon, Cisco Systems, Microsoft, Nvidia, Peloton Interactive, and Zoom Communications. The Motley Fool 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. Is Quantum Computing Stock a Buy for Less Than $20? was originally published by The Motley Fool
Yahoo
17 minutes ago
- Yahoo
Indian crypto exchange CoinDCX gets reportedly hacked for $44M
Indian crypto exchange CoinDCX gets reportedly hacked for $44M originally appeared on TheStreet. The Indian centralized exchange CoinDCX has reportedly been drained for nearly $44.2 million almost 17 hours ago, the on-chain sleuth ZachXBT claimed on July 19. The attacker address was funded with 1 Ethereum from Tornado Cash and later bridged a portion of the stolen funds from Solana to Ethereum, the sleuth said. Tornado Cash is a non-custodial cryptocurrency mixer. "The affected CoinDCX hot wallet is not publicly tagged or in current proof of reserves so I had to manually attribute it via reviewing counterparties," ZachXBT added. They also identified the theft address on their Telegram channel, "Investigations by ZachXBT." ZachXBT credited Cyvers Alerts for flagging the suspicious withdrawals. Customer funds not impacted, CEO claims CoinDCX co-founder and CEO Sumit Gupta responded on X, "Today, one of our internal operational accounts - used only for liquidity provisioning on a partner exchange - was compromised due to a sophisticated server breach." Gupta added, "I confirm that the CoinDCX wallets used to store customer assets are not impacted and are completely safe." Gupta told CoinDCX users that the exploit didn't impact any customer funds, and customer assets remain completely safe and protected in their secure cold wallet infrastructure. All trading activity and INR withdrawals are fully operational on the exchange, he CoinDCX CEO also claimed that the incident was quickly contained by isolating the affected operational account. The exchange's operational accounts are segregated from customer wallets, so the exposure is only limited to this specific account and is being fully absorbed from CoinDCX's own treasury reserves, he said to reassure the exchange's customers. Gupta also said that CoinDCX is collaborating with its exchange partner to block and recover stolen assets and will soon launch a bug bounty program. Co-founder confirms $44M loss CoinDCX co-founder Neeraj Khandelwal said the exchange's treasury assets have lost around $44 million; the amount, he said, has been ascertained both internally and externally. When a user asked about the delay in releasing a statement, Khandelwal said the platform's priority was to first secure the assets before making any public users complained about not being able to view their portfolio pages or the app acting abnormal. Khandelwal blamed "excessive load on the platform" for portfolio APIs getting jammed. After some time, Khandelwal said the portfolio is back. However, the comment section had users complaining about CoinDCX showing lower returns than other exchanges and even losing funds. Web3 trading halted Khandelwal also said the exchange is working with multiple crypto forensics agencies to recover lost funds from their treasury. Khandelwal added: "Coindcx Web3 is not functional at the moment out of abundance of precaution. Customers funds in the Web3 section are also safe. Web3 trading will resume shortly and we will keep you updated." Not the first crypto hack in India CoinDCX isn't the first Indian crypto exchange to suffer an exploit. WazirX, another Indian crypto exchange, was hacked for $234 million a year ago on July 18, 2024. The exploit was attributed to the notorious North Korea-linked Lazarus group. Indian crypto exchange CoinDCX gets reportedly hacked for $44M first appeared on TheStreet on Jul 19, 2025 This story was originally reported by TheStreet on Jul 19, 2025, where it first appeared. Sign in to access your portfolio
