Latest news with #CUDA
Forbes
a day ago
- Business
- Forbes
How AMD Stock Falls To $80
AMD stock (NASDAQ:AMD) has had a strong run this year so far, rising nearly 35% since early January, driven by recovering CPU demand and investor enthusiasm around generative AI. But with the stock now trading at a lofty 42x forward earnings, investors may want to pause and ask: how much of this valuation is justified, and how much is riding on high expectations? Here's the thing, a 50% drawdown from current levels would not be unprecedented. It happened in 2022, when AMD stock lost over 60% of its value in just a few quarters. With the stock now around $163, a return to $80 levels isn't out of the question. And after a mixed Q2 earnings report and mounting macroeconomic pressures - including tariffs under President Donald Trump - a reality check may be in order. See our counter scenario on AMD Stock upside to $330. Indeed, we believe this broad range of upside and downside potential represents a simple fact, that AMD is a pretty volatile stock. Valuation Rests on AI Hope. But Are Things Going To Plan? A key driver of AMD's premium valuation is its potential in the AI chip space. However, Q2 revenues from the company's data center division, which houses its AI accelerator business, fell short of expectations with revenue rising just 14% to $3.2 billion. What's worse - AI chip sales appear to have declined year-over-year, held back by export restrictions to China and a pause as customers await the next-gen Instinct MI350. Compare this with Nvidia, which reported over 70% growth in its data center business to $39 billion last quarter. AMD's AI efforts remain a distant second, and it may be missing out on a significant chunk of the capital pouring into generative AI infrastructure. Should you buy or fear AMD stock? For perspective, Amazon, Meta, Microsoft, and Alphabet together spent roughly $222 billion in capex in 2024, projected to surge to $360 billion in 2025. AMD's inability to capture a larger share of that spend raises concerns about whether its AI narrative can continue to support such a high multiple. There are some positives as well. The Trump administration recently eased restrictions on AMD's MI308 chip shipments to China, which could provide a near-term revenue boost. However, Nvidia's entrenched position - bolstered by its proprietary CUDA software ecosystem - makes customer switching harder and limits AMD's upside. AI Spending Sustainability, Competition There are also broader risks to the AI story. Despite massive infrastructure spending, most companies have yet to figure out compelling monetization models for AI. Shareholder pressure could eventually mount to improve returns, and this could cause tech giants may slow their GPU spending. Meanwhile, many of the big tech companies are building their own custom AI chips. Google has its TPUs, Microsoft is rolling out Maia, Amazon has Trainium and Inferentia, and Meta is building in-house silicon optimized for its own AI workloads. These in-house efforts could reduce dependency on AMD (and Nvidia), and could meaningfully reduce their addressable market. Even if the GPU story stumbles, could AMD fall back on CPUs? Not without challenges. AMD's bread-and-butter PC and server CPU businesses could face pressure as the U.S. economy softens. Inflation remains elevated, job growth is moderating, and President Trump's new tariffs on key trading partners risk driving up costs, dampening consumer spending and business investment alike. That could impact PC sales and in turn hit CPU revenues. How resilient is AMD stock during a downturn? AMD stock has fared worse than the benchmark S&P 500 index during some of the recent downturns. Worried about the impact of a market crash on AMD stock? Our dashboard AMD Dropped 6.4% In A Day. Have You Fully Evaluated The Risk? has a detailed analysis of how the stock performed during and after previous market crashes. Inflation Shock (2022) • AMD stock fell 65.4% from a high of $161.91 on 29 November 2021 to $55.94 on 14 October 2022, vs. a peak-to-trough decline of 25.4% for the S&P 500 • The stock fully recovered to its pre-Crisis peak by 18 January 2024 • Since then, the stock has increased to a high of $211.38 on 7 March 2024 and currently trades at around $163. Covid Pandemic (2020) • AMD stock fell 34.3% from a high of $58.90 on 19 February 2020 to $38.71 on 16 March 2020, vs. a peak-to-trough decline of 33.9% for the S&P 500 • The stock fully recovered to its pre-Crisis peak by 22 July 2020 Global Financial Crisis (2008) • AMD stock fell 91.2% from a high of $20.35 on 1 January 2007 to $1.80 on 25 November 2008, vs. a peak-to-trough decline of 56.8% for the S&P 500 • The stock fully recovered to its pre-Crisis peak by 21 August 2018 Premium Valuation In summary, it also doesn't help that AMD stock is still expensive; it trades at almost 49x trailing earnings and 42x forward earnings. Sure, Advanced Micro Devices' Revenues have grown considerably over recent years, rising at an average rate of about 15% over the last 3 years (vs. 5% for S&P 500). However, this growth could fade quickly if the economy takes a turn for the worse and if the company fails to meaningfully capture share of the AI chip market. At current multiples, even modest disappointments could trigger an outsized correction in the stock. The rich valuation of AMD stock limits its upside potential in the near-to-mid term. As an alternative, the Trefis Reinforced Value (RV) Portfolio, which has outperformed its all-cap stocks benchmark (combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices) to produce strong returns for investors. Why is that? The quarterly rebalanced mix of large-, mid- and small-cap RV Portfolio stocks provided a responsive way to make the most of upbeat market conditions while limiting losses when markets head south, as detailed in RV Portfolio performance metrics.
Miami Herald
2 days ago
- Business
- Miami Herald
Nvidia tops list of veteran analyst's best stocks for rest of 2025
Wall Street's still bullish on AI, and Wedbush just named its five must-watch tech stocks to scoop up for the rest of 2025. Nvidia's (NVDA) was perhaps a no-brainer, with its mission-critical role as the engine behind nearly every noteworthy AI deployment. Don't miss the move: Subscribe to TheStreet's free daily newsletter But the other four? They spread their tentacles across multiple sectors and strategies, each offering something unique in what Wedbush calls the "golden age of tech." The common thread: They're all tied to the fast-evolving real-world scaling of AI. Image source: Chesnot/Getty Images Nvidia's the ultimate juggernaut in the AI realm, with a chokehold on the AI accelerator space and a pace of innovation that's second to none. Today, Nvidia controls north of 90% of the global AI accelerator market, led by the explosive demand for its H100 and H20 GPUs. Even with the escalating tensions between the U.S. and China, Nvidia managed to maintain export licenses, enabling it to cater to its Chinese clients. Related: Jim Cramer drops jaw-dropping price target on Palantir stock post-earnings Also, earlier this year, Nvidia crossed a $4 trillion market cap, a rare feat that's indicative of its critical role in every major cloud provider's AI strategy. Whether it's Amazon, Microsoft (MSFT) , or Google, they're all running Nvidia chips, for both model training and high-throughput inferencing. But hardware is just part of the story. Nvidia's real moat is arguably its robust software stack. CUDA, launched over a decade ago, has become the backbone for the bulk of AI development today. Add in cuDNN, TensorRT, and other optimized libraries, and the result is impeccable speed and developer efficiency. Its powerful new Blackwell architecture, successor to Hopper, adds next-level performance-per-watt, setting the stage for swifter large-language-model training with specialized tensor cores. Also, at the COMPUTEX event this year, CEO Jensen Huang doubled down. Nvidia will be involved in building a massive $500 billion worth of AI infrastructure in the U.S. over four years, while expanding its sovereign-cloud partnerships across Europe and the Middle East. Tech heavyweights are just a huge vote of confidence from the veteran analyst team at Wedbush. In a new note, popular tech analyst Daniel Ives and his team doubled down on their top five picks for the second half of 2025. These included Nvidia, Meta Platforms (META) , Microsoft, Palantir Technologies (PLTR) , and Tesla (TSLA) . The first four in particular, though, "paint a bullish story for the AI revolution." Related: Cathie Wood splurges $4.1 million on popular AI stock "The Street is still underestimating the AI-driven growth wave coming," Wedbush said, pointing to healthier Q2 earnings that effectively "validated" the bull case across the board. Palantir in particular killed it with a "blowout quarter," cementing its place as the "poster child" for AI's next phase. Wedbush believes the AI market is still in its early stages, and the firm is tracking $2 trillion in enterprise and government AI spending over the next three years. "We've barely scratched the surface of this fourth industrial revolution," Ives wrote, adding that tech leaders like Nvidia, Microsoft, Palantir, Meta, and Alphabet are setting new benchmarks. More News: Warren Buffett's stock sends louder signals than Berkshire's earnings beatVeteran analyst spots unexpected star in Apple's earnings reportNvidia avoids White House crackdown; Trump softens on AI giant Additionally, he talked about the strength in the broader software sector as the next big wave. As more companies move from AI experimentation to full-scale adoption, Wedbush sees the incredible momentum accelerating into year-end. Big tech's AI leaders stay hot, with one notable exception Nvidia is arguably the undisputed king in the AI momentum trade. The chipmaker is still climbing, up more than 31.72% year-to-date and a whopping 55.8% over the past three months alone. Investor optimism is centered around robust data-center demand and easing tensions between the U.S. and China. What's most surprising is that even with export-license delays and geopolitical pressure, institutions continue to pour into the AI behemoth. Meta Platforms isn't far behind. A strong Q2 showing triggered an 11% post-earnings jump, with revenue growth coming in at an impressive 22%. CEO Mark Zuckerberg's AI-led ad upgrades and ramp-up in AI hardware hiring have helped push the stock to roughly 31% higher YTD, and 30.43% over three months. Reality Labs continues to bleed cash, but the core business looks stronger than ever. Microsoft, now a $4 trillion club member, leans on its cloud giant Azure's mid-30% year-over-year growth and a deepening OpenAI partnership. Also, with Windows 10 support ending in October, a PC upgrade cycle looms. Also, a massive $80 billion AI infrastructure spend planned for 2025 could supercharge its lead. Consequently, the stock is up more than 25% YTD and 21% in three months. Palantir is perhaps the dark horse. It recently posted powerful Q2 results, where revenue surged 48% YOY to over $1 billion, and retail enthusiasm hasn't cooled off, either. Shares are up a staggering 128% YTD, including 58.45% over the past three months. EV giant Tesla, meanwhile, is the clear laggard, down 22.37% YTD, despite a short-term 20.5% bump in recent months. European EV sales have cratered, and CEO Elon Musk's political presence continues to stir the pot. Related: Morgan Stanley slaps eye-popping price target on Nvidia stock The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
2 days ago
- Business
- Yahoo
5 No-Brainer Growth Stocks to Buy Right Now
Key Points Nvidia and Alphabet are two tech titans benefiting from AI. GitLab has a strong growth opportunity in front of it as AI accelerates software development. Dutch Bros and e.l.f. are two of the most exciting growth stories in the consumer space. 10 stocks we like better than Nvidia › Growth stocks have been leading the market higher for several years, and right now there are no signs of this trend slowing down. While growth stocks can be found in any sector, two of the most common places to find them are in technology and the consumer spaces. Let's look at five no-brainer growth stocks to buy now. Nvidia Nvidia (NASDAQ: NVDA) is the clear-cut artificial intelligence (AI) leader, and it's not even close. The company captured an absurd 92% share of the graphics processing unit (GPU) market in the first quarter, and yet it's still in full-on growth mode. Despite topping a $4 trillion market cap, Nvidia continues to expand rapidly, driven by demand for its data center chips. Its real moat, though, is its CUDA software platform. Nvidia got CUDA into the hands of researchers and academics way before AI went mainstream, and now it has a dominant developer ecosystem built on its tools and libraries. If you listen to any of the commentary from cloud computing companies, AI infrastructure spending is only increasing. Meanwhile, the company just got the green light to resume H20 chip sales in China. While the Chinese government wants Nvidia to provide security proofs, demand is already reported to be robust. At the same time, its automotive segment is well positioned for a robotaxi future. Given the growth opportunities still in front of Nvidia, it looks like a no-brainer long-term winner. Alphabet Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) continues to be wildly underappreciated. With Alphabet trading at just 19 times forward earnings with a forward price/earnings-to-growth ratio (PEG) of 0.8, the market is treating it like its best days are behind it. However, nothing could be further from the truth. Google Search isn't going anywhere -- it's evolving -- and Alphabet is steering that evolution with AI Overviews, its Gemini model, and multimodal search tools like Circle to Search and Google Lens. In Q2, its search revenue accelerated to 12% growth, and over 2 billion people are already using AI Overviews. Its cloud computing unit, Google Cloud, is also firing on all cylinders, with revenue up 32% and segment profit more than doubling last quarter. AI is the big driver, as customers create AI models and tools through its Vertex platform and then deploy them on its infrastructure. Its custom-built Tensor Processing Units (TPUs), meanwhile, have been designed specifically to optimize AI workloads within Google Cloud's TensorFlow framework, leading to increased efficiency and a cost advantage. At the same time, YouTube is holding its own with ad revenue up 13% in Q2, and its Waymo robotaxi is expanding into more cities. All in all, Alphabet is a great mix of leading and emerging businesses. GitLab GitLab (NASDAQ: GTLB) is no longer just a code repository -- it's turning into the software development backbone for the AI era. With GitLab 18, the company introduced more than 30 new features, including its Duo Agent, which enables AI-driven testing, deployment, security, and monitoring. That's important, since only about 20% of a developer's time is spent writing code. GitLab is now helping with the drudgery of the other 80%, helping developers become more efficient. The company has already been a strong revenue grower, consistently growing its revenue by 25% or more since its stock debuted in 2021. AI, meanwhile, has only accelerated software development. While some fear that AI will lead to fewer coders, given the value of its platform, there is a good chance the company could eventually shift from a seat-based model to consumption-based pricing, giving the increasing value proposition of its platform In a world where AI is changing how software gets built, GitLab's end-to-end platform is becoming vitally important. That puts it in a very strong spot going forward. Dutch Bros Dutch Bros (NYSE: BROS) might not be a household name outside the western U.S., but it's one of the most promising restaurant growth stories out there. The company just passed 1,000 locations and has a clear path to achieve its goal of 2,029 locations by 2029. Its model is capital-light, with a small drive-thru-only footprint that makes expansion quick and cost effective. Its long-term goal, meanwhile, is to have around 7,000 locations nationwide. But there's more to the Dutch Bros story than just expansion. Its same-store sales have been strong, and the company is still in the early stages of rolling out mobile ordering, which should speed up throughput and help drive peak-hour volumes. It's also testing hot breakfast items, which could unlock a major new revenue stream. Dutch Bros has been getting less than 2% of its sales from food items, compared to nearly 20% for Starbucks, so this is a huge opportunity. Meanwhile, the brand resonates with younger consumers; it doesn't spend heavily on marketing, its prices are generally cheaper than rival Starbucks', and its overhead is pretty low given its drive-thru model. All in all, Dutch Bros is one of the best growth stories in the restaurant space. e.l.f. Beauty e.l.f. Beauty (NYSE: ELF) already disrupted the mass cosmetics market, and now it's looking to do the same in prestige beauty with its Rhode acquisition. Rhode is already generating over $200 million in sales with no retail footprint, but that's about to change. Rhode is rolling out at Sephora in the fall, and it will benefit from e.l.f.'s strong retail relationships in the future. Rhode founder Hailey Bieber will stay on to help run the creative side and brings a lot of clout to the brand. Meanwhile, e.l.f.'s influencer strategy has helped it take a huge share in the mass cosmetics market over the past few years, so expect this marketing network to help drive growth at Rhode as well. In addition, with Rhode having only a modest product lineup, an increased product assortment is also likely in the cards. e.l.f. has a huge runway to grow the already viral Rhode brand -- from increasing distribution, to adding marketing, to expanding the number of Rhode SKUs it sells. After e.l.f. hit a recent bump in the road in terms of growth, expect Rhode to become a huge growth driver for the company in the coming years. Do the experts think Nvidia 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 Nvidia 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 1,019% vs. just 178% for the S&P — that is beating the market by 841.12%!* 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 $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!* 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 August 4, 2025 Geoffrey Seiler has positions in Alphabet, GitLab, and e.l.f. Beauty. The Motley Fool has positions in and recommends Alphabet, GitLab, Nvidia, Starbucks, and e.l.f. Beauty. The Motley Fool recommends Dutch Bros. The Motley Fool has a disclosure policy. 5 No-Brainer Growth Stocks to Buy Right Now was originally published by The Motley Fool
Reuters
2 days ago
- Business
- Reuters
Chip startup Oxmiq launches GPU tech for license
SAN FRANCISCO, Aug 5 (Reuters) - Oxmiq Labs said on Tuesday that it planned to launch licensable graphics processor tech geared for artificial intelligence data crunching. Founded by Intel's (INTC.O), opens new tab former chief architect, Raja Koduri, Oxmiq said that it has raised $20 million in seed capital to help launch the new GPU intellectual property. The funding round includes investments from angel investors, and corporate strategic investors, including MediaTek ( opens new tab, Oxmiq said. The company did not disclose its valuation. Oxmiq's GPU technology is capable of scaling from a single core for physical AI applications such as robotics, to thousands of cores that would be useful in a cloud computing company's data center. The company said it can customize the GPU architecture for specific types of computing. "We want to be Arm for the next generation," Koduri told Reuters. The Campbell, California-based company said it was taking a software-first approach to constructing its chip designs and has built a tool to allow software programs written for Nvidia's (NVDA.O), opens new tab CUDA to work on non-Nvidia hardware "without code modification of recompilation." The company said it opted to pursue building intellectual property instead of a complete chip design because it would avoid the high costs. A cutting-edge chip can cost more than $500 million to design. At Intel, Koduri oversaw the development of the company's graphics chips. Koduri has held senior positions at Advanced Micro Devices (AMD.O), opens new tab and Apple (AAPL.O), opens new tab.
Time of India
3 days ago
- Business
- Time of India
Chip startup Oxmiq launches GPU tech for license
Oxmiq Labs said on Tuesday that it planned to launch licensable graphics processor tech geared for artificial intelligence data crunching. Founded by Intel's former chief architect, Raja Koduri, Oxmiq said that it has raised $20 million in seed capital to help launch the new GPU intellectual property. The funding round includes investments from angel investors, and corporate strategic investors, including MediaTek, Oxmiq said. The company did not disclose its valuation. Oxmiq's GPU technology is capable of scaling from a single core for physical AI applications such as robotics, to thousands of cores that would be useful in a cloud computing company's data center. The company said it can customize the GPU architecture for specific types of computing. "We want to be Arm for the next generation," Koduri told Reuters. The Campbell, California-based company said it was taking a software-first approach to constructing its chip designs and has built a tool to allow software programs written for Nvidia's CUDA to work on non-Nvidia hardware "without code modification of recompilation." The company said it opted to pursue building intellectual property instead of a complete chip design because it would avoid the high costs. A cutting-edge chip can cost more than $500 million to design. At Intel, Koduri oversaw the development of the company's graphics chips. Koduri has held senior positions at Advanced Micro Devices and Apple.
