Latest news with #Chipmakers


Bloomberg
4 days ago
- Business
- Bloomberg
Chipmakers Slide as Outlooks Point to Uncertainty in Market
Good morning. Chipmakers slumped after earnings didn't inspire investor confidence. International students are struggling to get visas for the US. And don't freak out, but this is a sequel worth seeing. Listen to the day's top stories. Chipmakers had a rough day. Super Micro sank in extended trading after lowering its fiscal year sales forecast, suggesting the company continues to face an uneven uptake of servers amid a shift to products based on rival Nvidia chips. Advanced Micro Devices didn't fare much better, warning that its access to the crucial China market remains uncertain even as it gave a strong outlook for the current period.


Globe and Mail
09-07-2025
- Business
- Globe and Mail
Think Nvidia Stock Is Expensive? These 3 Charts Might Change Your Mind.
Key Points Nvidia's valuation looks excessive by some metrics. The chipmaker's shares are cheaper than they appear. 10 stocks we like better than Nvidia › Nvidia (NASDAQ: NVDA) remains one of the best artificial intelligence (AI) stocks on the market. But with the chipmaker now trading at a price-to-sales multiple of 26.4, many investors may wonder if shares have gotten too expensive to buy. Don't be fooled: Nvidia stock is still reasonably priced. Nvidia stock isn't as expensive as it seems Nvidia designs graphics processing units (GPUs) that provide the processing power required to support modern AI and machine-learning software. The company's gross margins are around 60% -- nearly twice those of competitors like Intel -- a reflection of how superior its cutting-edge chips are compared to the offerings of rivals. Nvidia can simply charge more for its products due largely to their performance superiority, as well as the value of its widely used software platform, which makes it easier for developers to program chips for specific tasks. Nvidia's hardware is essentially powering the AI revolution: Most analysts believe it has an 85% to 90% market share in AI accelerator chips right now. Because AI infrastructure spending is expected to grow by more than 30% annually through 2033, Nvidia has the potential to grow its sales base aggressively over at least the next decade, and likely beyond. Due to investors' optimism about all of this, its shares trade at a pricey 26.4 times sales. But when you measure the stock against the company's profits and bottom-line outlook, the valuation picture improves considerably. Data by YCharts. Nvidia shares currently trade at roughly 51 times earnings. That's still quite a premium. But because earnings are growing so fast, shares trade at just 36.9 times next year's earnings. If it can maintain its high gross margins, the stock's valuation could continue to improve dramatically year after year due to its rapid sales growth. Compared to a competitor like Intel, which lost money in each of the last three quarters, Nvidia's valuation looks quite reasonable. To be sure, shares aren't cheap, and the stock just hit the $4 trillion market cap threshold. But for patient investors willing to pay an up-front premium, they could still prove profitable. Should you invest $1,000 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 10 best stocks 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 $687,764!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $980,723!* Now, it's worth noting Stock Advisor 's total average return is1,048% — a market-crushing outperformance compared to179%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 7, 2025


Globe and Mail
09-07-2025
- Business
- Globe and Mail
Chipmaker Nvidia becomes most valuable company in the world at $4 trillion
NEW YORK (AP) — Chipmaker Nvidia became the first public company to top $4 trillion in value on Wednesday after two-year investor frenzy. Nvidia shares rose 2.5%, or $3.97, in early trading Wednesday, topping $164 each. At the beginning of 2023, Nvidia shares were around $14 each. The poster child of the AI boom, Nvidia has grown into the most valuable company in the world, surpassing Microsoft, Apple, Amazon and Google parent Alphabet. The stock's movement carries more weight on the S&P 500 and other indexes than every company except Apple. Two years ago, Nvidia's market value was below $600 billion. In its most recent quarter, Nvidia overcame tariff-driven turbulence to deliver another quarter of robust growth amid feverish demand for its high-powered AI chips. Nvidia earned $18.8 billion, or 76 cents per share, in the period, a 26% increase from the same time last year. Revenue surged 69% from a year ago to $44.1 billion. If not for a $4.5 billion charge that Nvidia absorbed to account for the U.S. government's restrictions on its chip sales to China, Nvidia would have made 96 cents per share, far above the 73 cents per share envisioned by analysts. Nvidia reports its second-quarter results next month. Wall Street is expecting another quarter of record sales and profit for the Santa Clara, California, company. Nvidia and other companies benefiting from the AI boom have been a major reason the S&P 500 has climbed to record after record recently. Their explosion of profits has helped to propel the market despite worries about stubbornly high inflation and possible pain coming for the U.S. economy from tariffs and other policies of President Donald Trump.


CBS News
09-07-2025
- Business
- CBS News
Nvidia becomes first company to surpass $4 trillion in market valuation
Chipmaker Nvidia became the first public company to top $4 trillion in value on Wednesday after two-year investor frenzy. Nvidia shares rose 2.5%, or $3.97, in early trading Wednesday, topping $164 each. At the beginning of 2023, Nvidia shares were around $14 each. The poster child of the AI boom, Nvidia has grown into the most valuable company in the world, surpassing Microsoft, Apple, Amazon and Google parent Alphabet. The stock's movement carries more weight on the S&P 500 and other indexes than every company except Apple. Two years ago, Nvidia's market value was below $600 billion. In its most recent quarter, Nvidia overcame tariff-driven turbulence to deliver another quarter of robust growth amid feverish demand for its high-powered AI chips. Nvidia earned $18.8 billion, or 76 cents per share, in the period, a 26% increase from the same time last year. Revenue surged 69% from a year ago to $44.1 billion. If not for a $4.5 billion charge that Nvidia absorbed to account for the U.S. government's restrictions on its chip sales to China, Nvidia would have made 96 cents per share, far above the 73 cents per share envisioned by analysts. Nvidia reports its second-quarter results next month. Wall Street is expecting another quarter of record sales and profit for the Santa Clara, California, company. Nvidia and other companies benefiting from the AI boom have been a major reason the S&P 500 has climbed to record after record recently. Their explosion of profits has helped to propel the market despite worries about stubbornly high inflation and possible pain coming for the U.S. economy from tariffs and other policies of President Donald Trump.
Yahoo
06-07-2025
- Business
- Yahoo
Nvidia, Intel, Broadcom, Micron, AMD And Other Chipmakers Stand To Benefit As Trump's Tax Bill Increases Incentives To Make Semiconductors In US
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Chipmakers are likely to benefit from the 'One Big Beautiful Bill Act' passed by the Senate on Tuesday, as they will be eligible for an investment tax credit that can incentivize the semiconductor business. What Happened: According to the provisions of the tax cut bill proposed by President Donald Trump, the Big Beautiful Bill aims to temporarily increase an investment tax credit for semiconductor manufacturers till the end of 2026. It would raise the tax credit to 30% of investments in manufacturing facilities, from the current 25%, providing stronger incentives for companies to expand domestic production. Trump was initially critical of the Chips and Science Act, which granted awards worth $32.5417 billion and provided loans up to $5.85 billion to 32 companies, as per the Semiconductor Industry Association. Trending: GoSun's Breakthrough Rooftop EV Charger Already Has 2,000+ Units Reserved — However, Trump set up a new entity, the United States Investment Accelerator, within the Commerce Department, which now oversees the CHIPS Act program, as established by an executive order signed by him. The Big Beautiful Bill has now gone back to the House after narrowly passing in the Senate, before the President could finally sign it to make it into a law. These are the top chipmakers and the existing beneficiaries of the Chips Act that will benefit from this investment tax credit mentioned within the tax cut Stocks YTD Performance One-Year Performance Nvidia Corp. (NASDAQ:NVDA) 13.69% 22.58% Broadcom Inc. (NASDAQ:AVGO) 16.35% 56.08% Intel Corp. (NASDAQ:INTC) 8.21% -29.94% Qualcomm Inc. (NASDAQ:QCOM) 5.65% -20.36% Advanced Micro Devices Inc. (NASDAQ:AMD) 14.83% -15.49% Applied Materials Inc. (NASDAQ:AMAT) 15.95% -21.91% Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM) 2.35% 11.34% Intel Corp. (NASDAQ:INTC) 8.21% -29.94% Texas Instruments Inc. (NASDAQ:TXN) 15.32% 8.37% Micron Technology Inc. (NASDAQ:MU) 39.40% -11.02% Microchip Technology Inc. (NASDAQ:MCHP) 28.62% -21.82% Analog Devices Inc. (NASDAQ:ADI) 15.99% 6.58% Coherent Corp. (NYSE:COHR) -12.16% 19.63% Corning Inc. (NYSE:GLW) 12.87% 37.22% Entegris Inc. (NASDAQ:ENTG) -11.08% -38.54% Globalfoundries Inc. (NASDAQ:GFS) -6.90% -22.05%Why It Matters: On March 4, during his joint address to Congress, Trump said, "Your Chips Act is a horrible, horrible thing." He also urged U.S. House Speaker Mike Johnson to "get rid" of it and use "whatever is left over" to "reduce debt or any other reason you want to." However, the Trump administration has skipped repealing the act with the Investment Accelerator entity and even managed to get the semiconductor firms to invest in the U.S. over and above the Chips Act this year. In early March, Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) revealed its plans to inject $100 billion into U.S. advanced semiconductor manufacturing, significantly expanding its ongoing $65 billion Arizona initiative under the Chips Act and bringing total investment to $165 billion. Apple Inc. (NASDAQ:AAPL) has committed over $500 billion to U.S. investments, focusing on AI, silicon engineering, and expanding advanced manufacturing. Read Next: $100k+ in investable assets? Match with a fiduciary advisor for free to learn how you can maximize your retirement and save on taxes – no cost, no obligation. Arrived Home's Private Credit Fund's has historically paid an annualized dividend yield of 8.1%*, which provides access to a pool of short-term loans backed by residential real estate with just a $100 minimum. Photo courtesy: Shutterstock This article Nvidia, Intel, Broadcom, Micron, AMD And Other Chipmakers Stand To Benefit As Trump's Tax Bill Increases Incentives To Make Semiconductors In US originally appeared on Sign in to access your portfolio