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Yahoo
3 days ago
- Business
- Yahoo
The Zacks Analyst Blog Highlights NVIDIA, Amazon.com, Alphabet and Tesla
Chicago, IL – May 28, 2025 – announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: NVIDIA Corp. NVDA, Inc. AMZN, Alphabet Inc. GOOGL and Tesla, Inc. TSLA. NVIDIA Corp. will report its fiscal 2026 first-quarter results on Wednesday, after market close. Trade disputes and competition from Chinese counterparts may weigh on NVIDIA, but advances in the field of artificial intelligence (AI) could help the company generate another quarter of revenue and profit growth. Let's look at the possible first quarter outcome, and is NVIDIA stock a buy now? The fruitful launch of the Blackwell architecture helped NVIDIA's revenues jump 12% sequentially and 78% year over year to $39.3 billion in the last reported quarter. NVIDIA expects to deliver such strong performance in its fiscal 2026 first quarter as well. Management anticipates that the ongoing adoption of AI will enable revenues to reach $43 billion (plus or minus 2%), surpassing the Zacks Consensus Estimate of $42.7 billion. This is a 62% increase from last year. The Zacks Consensus Estimate for fiscal first-quarter earnings per share (EPS) is 85 cents, reflecting a 39.3% increase from the previous year. Also, NVIDIA has achieved an average positive earnings surprise of 7.9% over the last four quarters, indicating that it may meet the projected fiscal first-quarter earnings growth and drive its stock price higher. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Although the Trump administration's restriction on the sale of H20 chips to China might impact NVIDIA's fiscal first-quarter performance, the long-term outlook remains promising as the company stays committed to the Chinese market. NVIDIA is anticipated to sell a revised version of H20 chips to China soon and has opened a lab in Shanghai to provide strong competition to rivals such as Huawei. The increase in demand for Blackwell chips, known for their efficiency, along with the rising popularity of the CUDA software platform among developers, will likely drive NVIDIA's growth. NVIDIA also has a competitive edge in the graphics processing units (GPUs) space, with a more than 90% market share, according to IoT Analytics. This wide moat is expected to support growth further. Now, cloud computing stocks including Inc. and Alphabet Inc. are buying GPUs to boost computing power for AI workloads. These cloud computing stocks are spending billions of dollars on AI infrastructure, which would benefit NVIDIA as it provides processors used for AI. NVIDIA is also likely to gain from the upcoming phase of the AI revolution that includes self-driving cars and autonomous robots. NVIDIA's technology is used by self-driving car companies, such as Tesla, Inc. and Alphabet's Waymo, while NVIDIA's Isaac is used by Amazon to train warehouse robots. Management's optimism about better fiscal first-quarter results, an increase in demand for the latest chips, growing GPU acceptance, an uptick in AI data center spending, and a possible improvement in the company's automotive revenues should persuade stakeholders to remain invested in the NVIDIA stock. Moreover, it makes sense to hold onto NVIDIA stock because the company is fundamentally strong. It has been able to generate profits proficiently than the Semiconductor - General industry, with a net profit margin of 55.9%, which exceeds the industry's 49.5%. However, new entrants should adopt a wait-and-watch approach. NVIDIA's China business does face some grave risk, and investors may want to wait for its first-quarter results to shed light on the scenario before placing a bet on the stock. For now, NVIDIA has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here. Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Zacks Investment Research 800-767-3771 ext. 9339 support@ Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
3 days ago
- Business
- Yahoo
NVIDIA Corporation (NVDA) Tumbled on Uncertainty in the Technology World
Sands Capital, an investment management company, released its 'Sands Capital Technology Innovators Fund' Q1 2025 investor letter. A copy of the letter can be downloaded here. Technology Innovators focus on pioneering businesses worldwide that serve as key drivers or beneficiaries of significant long-term changes driven by technology. The fund returned -10.4% (net) in the first quarter compared to a 9.4% return for the benchmark, MSCI ACWI Info Tech and Communication Services Index. The choice of securities in the software sector was the primary factor negatively impacting relative performance. You can check the fund's top 5 holdings to know more about its best picks for 2025. In its first-quarter 2025 investor letter, Sands Capital Technology Innovators Fund highlighted stocks such as NVIDIA Corporation (NASDAQ: NVDA). NVIDIA Corporation (NASDAQ:NVDA) offers graphics and compute, and networking solutions. The one-month return of NVIDIA Corporation (NASDAQ:NVDA) was 24.40%, and its shares gained 18.01% of their value over the last 52 weeks. On May 27, 2025, the stock of NVIDIA Corporation (NASDAQ:NVDA) closed at $135.50 per share, with a market capitalization of $3.305 trillion. Sands Capital Technology Innovators Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2025 investor letter: "NVIDIA Corporation (NASDAQ:NVDA) is the market-leading provider of AI technology. As noted above, shares declined in the first quarter amid the investor debate over DeepSeek, AI return on investment, and broader demand trends. This uncertainty appears reflected in the stock's current valuation, which seems to be pricing in a down-cycle. Our research suggests this sentiment is misplaced, given demand durability and the company's competitive position—including the fungibility of its hardware across training and inference, the importance of its CUDA programming platform, and the breadth of its ecosystem. NVIDIA ended the quarter as the portfolio's top weight, reflecting our conviction and its fit with our investment criteria." NVIDIA Corporation (NASDAQ:NVDA) is in 5th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 212 hedge fund portfolios held NVIDIA Corporation (NASDAQ:NVDA) at the end of the first quarter, which was 223 in the previous quarter. While we acknowledge the potential of NVIDIA Corporation (NASDAQ:NVDA) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains. In another article, we covered NVIDIA Corporation (NASDAQ:NVDA) and shared the list of AI stocks on latest news and ratings. Polen Global Growth Strategy's Q1 2025 letter noted that NVIDIA Corporation's (NASDAQ:NVDA) stock fell nearly 20% due to concerns about GPU demand from geopolitical tensions and export bans to China, leading to a cautious long-term growth outlook. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
3 days ago
- Business
- Yahoo
Is Nvidia's slowing sales growth a warning for the AI trade?
Nvidia's (NVDA) sales growth has slowed, down sharply from over 250% a year ago. Yahoo Finance Markets and Data Editor Jared Blikre, who also hosts Yahoo Finance's Stocks In Translation podcast, breaks down what Nvidia's cooling momentum could mean for the broader artificial intelligence (AI) trade ahead of the company's earnings. Twice a week, Stocks In Translation cuts through the market mayhem, noisy numbers and hyperbole to give you the information you need to make the right trade for your portfolio. You can find more episodes here, or watch on your favorite streaming service. To watch more expert insights and analysis on the latest market action, check out more Wealth here. Nvidia sales growth, it is cooling fast down from, uh, down to 80% from over 250% just a year ago. Now, Nvidia is a poster child for the AI fueled bull market. So ahead of Wednesday's big earnings announcement, investors are asking, is this slowdown? Is it a warning sign for the entire AI trade? Let's take a look now at how Nvidia got to this point. I'm Jared Blikre, host of Stocks and Translation. So, in green bars behind me, you're going to see Nvidia's quarterly revenue in billions of dollars scaled on the right access. The white line is year-over-year sales growth as a percentage scaled on the left. And this chart goes all the way back to 1999, that's when they IPOed. Now, early on, Nvidia benefited from the first ever graphics chips, but growth cratered during the dotcom bust going negative by 2002. In 2006, Nvidia found new life with its parallel computing platform, CUDA, boosting sales growth back into positive territory until the global financial crisis hit, dragging sales deeply negative, negative again by 2009. But another growth spike came in 2016 to 18 with the Pascal chip launch and crypto mining boom. This pushed growth over 50%, but by early 2019, the crypto hangover hit hard with sales falling by as much as 31% year over year. Then came the pandemic, boosting sales growth back into double-digit territory once again by 2020 as gaming and data centers surge. But nothing compares to Nvidia's AI supercycle in 23 and 24. Early growth, or yearly growth spiked to record levels, peaking at an incredible 265% in April of last year, and this is as quarterly revenue hit $26 billion. So now the question is whether the recent drop to only 80% growth, does that signal the beginning of the end for this AI fueled run or does it accelerate once again? So, let's take a different look now at how Nvidia's market cap has grown since the end of the last century. Now market cap is simply the current stock price multiplied by all the shares outstanding. And another note, the chart is in log scale, meaning that the numbers increase quickly as you go up. Each identified level to the left is 10 times more than the prior number, so from $1 billion to $10 billion to $100 billion, then finally $1 trillion on the left. Now, starting after an initial, excuse me, after an initial surge during the dotcom boom, Nvidia hit $10 billion in market cap in December of 2001. And this is a level that acted like a magnet kind of, uh, holding the stock roughly in place for over a decade. But it wasn't until 2016, the launch of Pascal and that first big AI bet that the stock finally broke out, becoming a 10 bagger, multiplying in value 10 times in less than three years. But big drops hit again, getting cut in half in the 2018 crypto crash and 65% from 2022 from AI export controls and slowing demand. Then, finally, in May 23, one massive AI driven earnings beat added nearly a quarter trillion dollars in a single day, making Nvidia the first chip maker to join the trillion dollar club. By early 24, the company had hit $2 trillion again on another blowout earnings report. And in June 24, it peaked at $3 trillion, finally topping King Apple as the most valuable company in the world. And currently, that title is held by Microsoft. So, with Nvidia earnings right on investors' doorstep, Wall Street will see if the chipmaker's growth is simply cooling and set to accelerate again or if the AI boom is beginning to fade. Either way, it's not just Nvidia on the line. It might be the entire AI trade. Tune into Stocks and Translation for more jargon busting deep dives, new episodes on Tuesdays and Thursdays on Yahoo Finance's website or wherever you find your podcast.
Yahoo
3 days ago
- Business
- Yahoo
Nvidia (NVDA) to Launch Cheaper AI Chip in China to Bypass Export Curbs
Nvidia (NVDA, Financials) is preparing to launch a lower-cost AI chip for the Chinese market, with mass production expected as early as June, according to a Reuters report citing unnamed sources. The new Blackwell-architecture GPU will be priced between $6,500 and $8,000significantly cheaper than the recently banned H20 model, which sold for $10,000 to $12,000. Warning! GuruFocus has detected 3 Warning Signs with NVDA. The upcoming chip will use conventional GDDR7 memory and omit advanced packaging from Taiwan Semiconductor Manufacturing Co., allowing it to comply with tightened U.S. export restrictions that limit GPU memory bandwidth. The updated design aims to deliver around 1.7 terabytes per second of bandwidth, just under the regulatory cap. China accounted for 13% of Nvidia's revenue last fiscal year, but its local market share has dropped from 95% in 2022 to roughly 50% after U.S. sanctions. Nvidia's CEO Jensen Huang said further restrictions could drive more customers to Chinese rivals like Huawei, which produces the Ascend 910B chip. Despite reduced performance compared to the H20, Nvidia's software stack and CUDA platform may help preserve its edge. A second Blackwell-based chip for China is also in development and could enter production by September. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
Should You Buy, Hold, or Sell NVIDIA Stock Ahead of Q1 Earnings?
NVIDIA Corporation NVDA will report its fiscal 2026 first-quarter results on Wednesday, after market close. Trade disputes and competition from Chinese counterparts may weigh on NVIDIA, but advances in the field of artificial intelligence (AI) could help the company generate another quarter of revenue and profit growth. Let's look at the possible first quarter outcome, and is NVIDIA stock a buy now? The fruitful launch of the Blackwell architecture helped NVIDIA's revenues jump 12% sequentially and 78% year over year to $39.3 billion in the last reported quarter. NVIDIA expects to deliver such strong performance in its fiscal 2026 first quarter as well. Management anticipates that the ongoing adoption of AI will enable revenues to reach $43 billion (plus or minus 2%), surpassing the Zacks Consensus Estimate of $42.7 billion. This is a 62% increase from last year. The Zacks Consensus Estimate for fiscal first-quarter earnings per share (EPS) is 85 cents, reflecting a 39.3% increase from the previous year. Also, NVIDIA has achieved an average positive earnings surprise of 7.9% over the last four quarters, indicating that it may meet the projected fiscal first-quarter earnings growth and drive its stock price higher. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Image Source: Zacks Investment Research Although the Trump administration's restriction on the sale of H20 chips to China might impact NVIDIA's fiscal first-quarter performance, the long-term outlook remains promising as the company stays committed to the Chinese market. NVIDIA is anticipated to sell a revised version of H20 chips to China soon and has opened a lab in Shanghai to provide strong competition to rivals such as Huawei. The increase in demand for Blackwell chips, known for their efficiency, along with the rising popularity of the CUDA software platform among developers, will likely drive NVIDIA's growth. NVIDIA also has a competitive edge in the graphics processing units (GPUs) space, with a more than 90% market share, according to IoT Analytics. This wide moat is expected to support growth further. Now, cloud computing stocks including Inc. AMZN and Alphabet Inc. GOOGL are buying GPUs to boost computing power for AI workloads. These cloud computing stocks are spending billions of dollars on AI infrastructure, which would benefit NVIDIA as it provides processors used for AI. NVIDIA is also likely to gain from the upcoming phase of the AI revolution that includes self-driving cars and autonomous robots. NVIDIA's technology is used by self-driving car companies, such as Tesla, Inc. TSLA and Alphabet's Waymo, while NVIDIA's Isaac is used by Amazon to train warehouse robots. Management's optimism about better fiscal first-quarter results, an increase in demand for the latest chips, growing GPU acceptance, an uptick in AI data center spending, and a possible improvement in the company's automotive revenues should persuade stakeholders to remain invested in the NVIDIA stock. Moreover, it makes sense to hold onto NVIDIA stock because the company is fundamentally strong. It has been able to generate profits proficiently than the Semiconductor - General industry, with a net profit margin of 55.9%, which exceeds the industry's 49.5%. Image Source: Zacks Investment Research However, new entrants should adopt a wait-and-watch approach. NVIDIA's China business does face some grave risk, and investors may want to wait for its first-quarter results to shed light on the scenario before placing a bet on the stock. For now, NVIDIA has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
