Latest news with #AIcomputing
Yahoo
a day ago
- Business
- Yahoo
3 Genius Artificial Intelligence (AI) Stocks I Wouldn't Hesitate Investing $10,000 Into Right Now
Key Points Nvidia and Taiwan Semiconductor Manufacturing are both benefiting from massive data center capital expenditures. Alphabet's stock is getting no respect from the market. 10 stocks we like better than Nvidia › Although the market has had a sharp recovery from its lows in April and May, there are still plenty of stocks worth buying here. The long-term outlook of the economy seems to be strong, and as more tariff deals get struck, the uncertainty about future tariff policy decreases. Regardless of what happens, I still think these three stocks are excellent choices to buy right now, as there are secular trends that can push them higher, beating the market along the way. Nvidia and Taiwan Semiconductor Manufacturing Nvidia (NASDAQ: NVDA) and Taiwan Semiconductor Manufacturing (NYSE: TSM) are benefiting from the same tailwind: data center buildouts. The demand for AI computing power is massive, which requires companies to heavily invest in data center infrastructure to meet the demand. Nvidia graphics processing units (GPUs) are the gold standard for computing devices in these data centers, and any competition that arises will be directly compared to these units. Furthermore, Nvidia recently got another boost with the announcement that the U.S. government will approve its export license for H20 chips, a product specifically designed to meet export regulations to China. The return of this market for Nvidia can't be overstated, as the second quarter of fiscal year 2025's forecasted revenue growth would have been 77% if it could have sold H20 chips in the quarter, instead of the 50% management guided for. Looking forward, Nvidia expects massive data center growth, citing one projection that expects data center capital expenditures to rise from $400 billion in 2024 to $1 trillion by 2028. That's huge growth and is a big reason why Nvidia is an excellent stock to buy right now. Taiwan Semiconductor benefits from this same tailwind and is also Nvidia's primary chip supplier. Nvidia is a fabless design company, which means that it designs chips, then outsources production to a company like TSMC. I like Taiwan Semiconductor in addition to Nvidia because there are competing technologies with GPUs arising (namely custom-designed AI accelerators) that could be a challenge to Nvidia in the future. While Nvidia is still strong and all indications point toward impressive growth, Taiwan Semiconductor is a hedge against Nvidia losing market share, as it's highly likely that TSMC will still be the chip foundry for new technology. Taiwan Semiconductor's management team expects monster growth from its AI-related business, with revenue expected to rise at a 45% compound annual growth rate (CAGR) over the next five years. Companywide, it expects nearly 20% growth. That's huge growth, and the balance of investing in both Taiwan Semiconductor and Nvidia is an excellent way to generate strong returns. Alphabet Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is a competitor in the AI race, but it is also a target. Investors are worried that Alphabet's primary revenue driver, the Google Search engine, will be significantly disrupted by generative AI products. While there have been some instances of users switching to generative AI models alone, the vast majority of the population still uses Google, and the launch of AI search overviews helps bridge the gap between a full-on generative AI experience and a traditional Google Search. This will likely be enough to keep Google on top, and its latest results support that claim. In Q2, Google Search's revenue rose 12% year over year. That's an acceleration from Q1's 10% revenue growth, so it's fairly clear that generative AI hasn't caused significant headwinds toward Google's business yet. Despite that, Alphabet's stock still trades at a significant discount to the broader market. With Alphabet at 21 times trailing earnings and 20 times forward earnings, the market isn't forecasting strong growth. Yet, Alphabet's diluted earnings per share (EPS) rose 22% in Q2, showcasing that the analysts are being far too pessimistic about Alphabet's future. With the S&P 500 index trading at 25 times trailing earnings and 24 times forward earnings, Alphabet trades at a deep discount to the market. As a result, I think it's an excellent stock to buy here, as it represents a great trade-off between value and growth. Should you buy stock in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,820!* Now, it's worth noting Stock Advisor's total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. 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 29, 2025 Keithen Drury has positions in Alphabet, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Alphabet, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy. 3 Genius Artificial Intelligence (AI) Stocks I Wouldn't Hesitate Investing $10,000 Into Right Now was originally published by The Motley Fool
Yahoo
6 days ago
- Business
- Yahoo
KLA: Semiconductor Inspection Market Leader
KLA Corporation is a unique investment opportunity as it holds the No.1 position in semiconductor process control and yield management solutions. Its mission-critical inspection and measurement machines are indispensable to advanced semiconductor manufacturing, positioning the company to benefit from secular trends in AI computing, data centers, and automotive electrification. With industry-leading margins, strong cash generation, and technological moats that protect its market share, KLA offers a more stable exposure to the semiconductor sector than traditional equipment peers. Warning! GuruFocus has detected 7 Warning Signs with REG. KLA commands approximately 50-60% of the wafer inspection market and 40-50% in metrology equipment. These dominant positions are the result of decades of investment in optical inspection technologies, advanced algorithms, and long-standing customer relationships with major foundries and memory manufacturers. KLA's market leadership spans several critical process control categories. In wafer inspection, it controls around 60% of the brightfield segment and over 50% of the darkfield segment. The company is especially strong in patterned wafer inspection, where defect detection complexity is highest. Its metrology business, covering critical dimension measurement and overlay metrology, commands 45% and 40% market shares, respectively, helping maintain transistor dimensions and layer alignment. In reticle (photomask) inspection, KLA holds an 80%+ market share. This near-monopoly reflects the extreme complexity of identifying defects that will be replicated across wafer production millions of times. KLA's electron beam reticle inspection systems deliver high-resolution imaging and pattern recognition that competitors have struggled to match. KLA's inspection systems detect defects at the nanometer scale using highly advanced optical systems, electron beam technologies, and machine learning algorithms. Its systems can identify imperfections smaller than 10 nanometers, critical for advanced node production. Different inspection modes are tailored to each manufacturing phase. Broadband plasma systems detect particles and surface defects, while laser scattering systems identify microscopic contamination and surface roughness. The combination of multiple wavelengths, precision optics, and proprietary algorithms ensures best-in-class defect sensitivity that often exceeds customer specifications. Mission-Critical Economics Process control is a vital step in semiconductor fabrication. A single wafer can be worth $5,00015,000, and undetected defects can lead to millions in yield loss or reliability issues. KLA's systems routinely detect defects that would otherwise cause 25% yield loss, delivering $50100 million in annual value to a typical advanced fab. This economic impact supports KLA's pricing power and continued reinvestment in innovation, even during downcycles. The installed base has grown steadily from 14,000 to 18,000 units over five yearsa 29% increase. Yet KLA's valuation has swung far more dramatically, suggesting that investor sentiment and semiconductor cycles influence its stock more than underlying operational expansion. Market cap per installed base, a key efficiency metric, has fluctuated from $4.3 million per unit in 2021 to $2.7 million in 2022, recovering to $3.9 million in 2024. This implies that investors expect continued high returns on capital, technological leadership, and pricing power to justify premium multiples. Compared to peers like Applied Materials (AMAT), Lam Research (LRCX), Tokyo Electron (TEL), and Disco, KLA consistently delivers strong margins and return on invested capital. While companies like TEL may achieve comparable or even superior margins, especially when adjusting for regional tax differences, KLA distinguishes itself through its specialization in process control and its consistently high ROIC. Whereas peers often benefit directly from capital expenditure surges in wafer fabrication, KLA's tools are embedded in every phase of yield management, creating a steadier, mission-critical role in the semiconductor supply chain. Its gross margins typically exceed 60%, and ROIC has averaged above 35% over the past five years, compared to 2030% for most competitors. TEL is particularly notable among these for its excellent cost structure and execution, but it competes more directly with AMAT and LRCX in deposition and etch, not KLA's core focus of metrology and inspection. This unique position makes KLA an essential partner to advanced fabs, not just during build-outs, but across ongoing production cycles. Cyclical Industry Exposure: KLA remains subject to semiconductor capital spending cycles. Prolonged downturns could pressure revenue and margins, despite its leadership position. Customer Concentration: A significant portion of KLA's revenue comes from a few major clients. Changes in their capex plans could impact KLA materially. Technology Disruption: KLA must continuously innovate to defend its market share. Breakthroughs from competitors could pose a threat. Dakota Wealth Management is showing evident signs of ineffective position management, despite holding a considerable stake. With 878,017 shares exchanged for nearly $597 million, it is obviously a notable conviction play that encumbers 13.96% of their portfolio. The estimated average price of $623.50 indicates they may be sitting on substantial gains, making the modest trimming even more puzzling from a tax-efficiency and momentum perspective. Oaktop Capital Management II, L.P. depicts an even more alarming scenario as it seems to have an undermined investment thesis. Their position has made an imprint of 30.07% to 32.97% of their portfolio, thus representing almost $248 million, but they have also reduced their share count by 17,964 shares (-4.70%). This almost unlikely combo indicates that the stock has significantly underperformed their other assets, and they're trying intentionally to adjust it. They have been this way since Q4 2016, showcasing a nearly eight-year investment voyage that is possibly seeing a critical turn. With a 0.27% holding, they have considerable power but not the control, yet the recent movements seem to reduce belief in the long-term project. KLA is a dominant force in semiconductor process control with robust technological moats, recurring value to customers, and an attractive financial profile. While not immune to industry cycles, its leadership in high-value inspection and metrology tools positions it well for secular growth. For investors seeking quality compounders with exposure to the semiconductor megatrend, KLA offers a differentiated and enduring opportunity. This article first appeared on GuruFocus. 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
South China Morning Post
22-07-2025
- Business
- South China Morning Post
Nvidia to support RISC-V processors in latest boost to China's chip self-sufficiency drive
Nvidia said it was working to support the RISC-V chip architecture on its CUDA software platform, a move expected to boost the open-source movement that China is betting on as part of its tech self-sufficiency drive. 'We are porting CUDA to the RISC-V architecture,' Frans Sijsterman, vice-president of hardware engineering at Nvidia, said at the 2025 RISC-V Summit in Shanghai last week. RISC-V central processing units (CPUs) could then be used as the main application processor in Nvidia systems, Sijsterman said, although he did not give a timeline for the plan. RISC-V, the fifth generation of the open-sourced Reduced Instruction Set Computer architecture for CPUs, is free for anyone to use and modify. First developed in 2010 by researchers at the University of California, Berkeley, RISC-V is now managed by RISC-V International, a Zurich-based non-profit organisation. The move represents a major step by Nvidia to boost the development of the open-source chip architecture in AI computing. CUDA previously only supported two mainstream chip platforms: x86, a complex instruction set that dominates personal computers, and the eponymous architecture of British firm Arm Holdings , which is widely used in the smartphone sector.
Bloomberg
21-07-2025
- Business
- Bloomberg
CoreWeave Plans to Sell $1.5 Billion of Bonds to Refinance Debt
CoreWeave Inc., a provider of AI computing power, plans to offer $1.5 billion of senior notes that will be used in part to refinance debt, according to a release. Proceeds from the unsecured notes due 2031 will also go toward general corporate purposes.
Yahoo
20-07-2025
- Business
- Yahoo
Tag along with Jay at CISCE: The future of digital tech is here!
BEIJING, July 20, 2025 /PRNewswire/ -- This is a report from British visitor Jay Ian Birbeck explored the digital technology section of the third China International Supply Chain Expo, an event showcasing the full breadth of the global supply chain in Beijing from July 16 to 20. At NVIDIA's debut booth, Jay witnessed the U.S. chip giant's latest innovations, including laptops powered by the GeForce RTX 5090 GPU and DLSS 4 neural rendering technology. NVIDIA's presence underscored the company's commitment to advancing AI computing, with local Chinese brands demonstrating how these technologies enhance gaming, creativity, and productivity. Moving to Lenovo's exhibit, Jay learned about its pioneering Hybrid AI concept, integrating personal, enterprise, and public intelligence. With a global network of over 2,000 suppliers and more than 30 manufacturing bases, Lenovo showcased its leadership in driving green, smart, and digital transformations across its ecosystem. Jay was particularly amazed by futuristic prototypes such as transparent screens and rollable displays. At TCL CSOT's display, Jay was introduced to the industry's first borderless quantum-dot Mini LED TV, which offered highly immersive visuals. TCL also displayed inkjet-printed foldable screens, further underscoring China's global leadership in advanced display technologies. The company currently accounts for 30% of the global high-end television market. Rounding out his visit, Jay stopped by Newegg, which demonstrated its role as a "global connector" for Chinese brands. The company showcased AI-powered logistics and marketing tools via its SellingPilot platform. Jay humorously noted that the once-stressful journey of going global has now become a streamlined and rewarding process. "Made in China is seriously stepping up its game," Jay said. But what impressed him most wasn't the products—it was the way companies connected. "Supply chain? More like supply WIN," he concluded. Tag along with Jay at CISCE: The future of digital tech is here! View original content to download multimedia: SOURCE Sign in to access your portfolio
