Latest news with #DanIves
Yahoo
8 hours ago
- Business
- Yahoo
What the China export easing means for Nvidia, AMD, and other chips stocks
Nvidia (NDVA) and AMD (AMD) may soon get the green light to sell AI chips to China again, potentially reviving a key growth market. The US government is reportedly considering loosening export restrictions, which could allow the tech giants to resume sales of some lower-end AI chips to China. This policy shift comes after April's export ban blocked chips such as Nvidia's H20 AI accelerator and AMD's MI308. 'This is a game changer,' Dan Ives, managing director of Wedbush Securities, told Yahoo Finance. 'Nvidia stands to gain billions in annual revenue from China, and every Nvidia supplier is going to benefit, as well as second and third derivative plays.' Bank of America (BAC) raised its price targets for Nvidia and AMD to $220 and $175, respectively, in anticipation of license approval. Favorable regulation could boost Nvidia's earnings per share by 5%-7% and AMD's by 3%-5%, its analysts estimate. But it's not just Nvidia and AMD that stand to gain. "It's a silver bullet positive for the AI buildout sector,' Ives said. If China's cloud and data center buildouts ramp back up, companies like Broadcom (AVGO) and Marvell Technology (MRVL), whose custom chips support AI infrastructure, could benefit. Credo Technology Group (CRDO), a high-speed interconnect supplier, may also see demand rise alongside broader server deployments. All three stocks carry a Buy rating from BofA. The clearest beneficiaries may be at the heart of chip manufacturing. Taiwan Semiconductor Manufacturing Company (TSMC), which produces Nvidia and AMD's chips, and Samsung Electronics (SSNLF), a key supplier of high-bandwidth memory, are well-positioned to capture a rebound. Read more: How does Nvidia make money? 'If I'm pointing to derivatives, I'm pointing to Samsung and TSMC,' Matt Bryson, managing director of research at Wedbush Securities, told Yahoo Finance. 'They're literally working on the parts Nvidia and AMD are shipping.' Bryson said that before April's export ban, Chinese server build activity was the 'number one positive inflection' the industry was watching. The momentum stalled in the second quarter, but could quickly return if policy changes are confirmed. The semiconductor market is rapidly expanding as AI advances. Gaining approval and reopening the key Chinese market, even partially, shifts sentiment across the sector. Nvidia CEO Jensen Huang estimated the Chinese AI market is worth $50 billion. Still, the exact effect on balance sheets will be hard to pin down in the near term. Nvidia's first quarter earnings reported a $2.5 billion drop in China revenue and a $4.5 billion inventory write-off. An additional $8 billion loss is anticipated in the second quarter. The semiconductor market is rapidly expanding as AI advances. Gaining approval and reopening the key Chinese market, even partially, shifts sentiment across the sector. Nvidia CEO Jensen Huang estimated the Chinese AI market is worth $50 billion. 'China is one of the best areas they [AMD] could break into,' Ives said. Bryson pointed out that even if the chipmakers get the green light to resume shipments and see some revenue bounce back, it's a big question mark whether the demand is even still there. Chinese customers might have already found other suppliers or simply moved on. Francisco Velasquez is a Reporter at Yahoo Finance. He can be reached on LinkedIn and X, or via email at 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
9 hours ago
- Business
- Yahoo
What the China export easing means for Nvidia, AMD, and other chips stocks
Nvidia (NDVA) and AMD (AMD) may soon get the green light to sell AI chips to China again, potentially reviving a key growth market. The US government is reportedly considering loosening export restrictions, which could allow the tech giants to resume sales of some lower-end AI chips to China. This policy shift comes after April's export ban blocked chips such as Nvidia's H20 AI accelerator and AMD's MI308. 'This is a game changer,' Dan Ives, managing director of Wedbush Securities, told Yahoo Finance. 'Nvidia stands to gain billions in annual revenue from China, and every Nvidia supplier is going to benefit, as well as second and third derivative plays.' Bank of America (BAC) raised its price targets for Nvidia and AMD to $220 and $175, respectively, in anticipation of license approval. Favorable regulation could boost Nvidia's earnings per share by 5%-7% and AMD's by 3%-5%, its analysts estimate. But it's not just Nvidia and AMD that stand to gain. "It's a silver bullet positive for the AI buildout sector,' Ives said. If China's cloud and data center buildouts ramp back up, companies like Broadcom (AVGO) and Marvell Technology (MRVL), whose custom chips support AI infrastructure, could benefit. Credo Technology Group (CRDO), a high-speed interconnect supplier, may also see demand rise alongside broader server deployments. All three stocks carry a Buy rating from BofA. The clearest beneficiaries may be at the heart of chip manufacturing. Taiwan Semiconductor Manufacturing Company (TSMC), which produces Nvidia and AMD's chips, and Samsung Electronics (SSNLF), a key supplier of high-bandwidth memory, are well-positioned to capture a rebound. Read more: How does Nvidia make money? 'If I'm pointing to derivatives, I'm pointing to Samsung and TSMC,' Matt Bryson, managing director of research at Wedbush Securities, told Yahoo Finance. 'They're literally working on the parts Nvidia and AMD are shipping.' Bryson said that before April's export ban, Chinese server build activity was the 'number one positive inflection' the industry was watching. The momentum stalled in the second quarter, but could quickly return if policy changes are confirmed. The semiconductor market is rapidly expanding as AI advances. Gaining approval and reopening the key Chinese market, even partially, shifts sentiment across the sector. Nvidia CEO Jensen Huang estimated the Chinese AI market is worth $50 billion. Still, the exact effect on balance sheets will be hard to pin down in the near term. Nvidia's first quarter earnings reported a $2.5 billion drop in China revenue and a $4.5 billion inventory write-off. An additional $8 billion loss is anticipated in the second quarter. The semiconductor market is rapidly expanding as AI advances. Gaining approval and reopening the key Chinese market, even partially, shifts sentiment across the sector. Nvidia CEO Jensen Huang estimated the Chinese AI market is worth $50 billion. 'China is one of the best areas they [AMD] could break into,' Ives said. Bryson pointed out that even if the chipmakers get the green light to resume shipments and see some revenue bounce back, it's a big question mark whether the demand is even still there. Chinese customers might have already found other suppliers or simply moved on. Francisco Velasquez is a Reporter at Yahoo Finance. He can be reached on LinkedIn and X, or via email at
Business Insider
17 hours ago
- Business
- Business Insider
‘NVDA, META, GOOGL, and MSFT Need to Prove That Their Valuations Are Justified,' Say Analysts
Big tech stocks may soon have to prove that their recent rally is justified. After three months of surging share prices, investors are now watching closely to see if companies like Nvidia (NVDA), Meta (META), Alphabet (GOOGL), and Microsoft (MSFT) can deliver strong earnings and solid guidance. Lauren Goodwin, chief market strategist at New York Life Investments, told Yahoo Finance that while these companies may continue to post strong results, their ability to keep pushing valuations even higher will likely be challenged in the coming quarters. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Indeed, many of these tech giants have seen massive gains recently, with Nvidia and Meta up 52% and 41%, respectively, over the past three months. As a result, the average forward price-to-earnings (P/E) ratio for these four companies now stands at 30, which is far above the broader S&P 500 's (SPY) ratio of 22. This valuation surge is most extreme with Nvidia, as its market cap nearly hit $4.2 trillion due to optimism that its AI chips could soon flow back into China. This excitement has led some analysts, like Wedbush's Dan Ives, to declare that the AI revolution is entering a new growth phase. However, not everyone is convinced that tech stocks can keep climbing on hype alone. In fact, UBS' Ulrike Hoffmann-Burchardi warned that recent gains have mostly come from increasing valuation multiples rather than actual earnings growth. Therefore, she made it clear that future earnings-per-share upgrades are needed in order to justify higher stock prices. For this reason, along with lingering geopolitical risks, she recommends a diversified approach instead of betting heavily on a single company or sector. Which Tech Stock Is the Better Buy? Turning to Wall Street, out of the four tech stocks mentioned above, analysts think that GOOGL stock has the most room to run. In fact, GOOGL's average price target of $202.56 per share implies more than 10% upside potential. On the other hand, analysts expect the least from META stock, as its average price target of $737.86 equates to a gain of 4.9%.
Yahoo
18 hours ago
- Business
- Yahoo
Veteran trader surprises with Palantir price target and comments
Veteran trader surprises with Palantir price target and comments originally appeared on TheStreet. It's not every day that a company gets compared with a soccer phenom and a legacy tech outfit, but then Palantir () isn't your everyday company. The Denver data-analytics-software company's stock price touched a record $149.57 on July 14, sparked by growing demand for its artificial intelligence tools. 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰 Government contracts accounted for roughly 55% of Palantir's total revenue in 2024, and its software is used across several federal agencies, including the Department of Defense, the CIA, and the Department of Homeland Security. On July 10, Wedbush analyst Dan Ives raised the investment firm's price target on Palantir to $160 from $140 while affirming an outperform rating on the shares. Ives said recent checks and growing confidence in the company's AI strategy are key to the bull thesis on Palantir playing out for the next 12 to 18 months. Analyst: Palantir is core winner in AI outlays Wedbush says Palantir has a "golden path to become the next Oracle" over the coming years, referring to the legacy tech company. While PLTR's valuation is expensive today, Ives said, he sees "the Messi of AI" as a core winner in the trillions of AI spending over the next few years, a nod to Argentine soccer sensation Lionel Messi. More Palantir Veteran fund manager reboots Palantir stock price target As Palantir stock soars, veteran trader makes surprising call Palantir reacts to controversial New York Times allegations Palantir remains one of its top names to own in the "Ives AI 30," the analyst said. Its game-changing AIP strategy is quickly becoming a key foundational platform for enterprises developing uses for artificial intelligence in their operations and offerings. The company's government work has also made Palantir a source of controversy. Palantir is building a new tool to provide Immigration and Customs Enforcement with enhanced capabilities to support deportation efforts, Axios reported in May Protesters across the U.S. have targeted Palantir due to its work with ICE, and demonstrators protested outside the company's offices in several locations. In the past Alex Karp, Palantir's co-founder and chief executive, has said that Palantir is "proud to be working with the U.S. government" and that American companies have a "moral obligation" to support the country. TheStreet Pro's Stephen Guilfoyle has strong feelings about Palantir as well. While he's fond of his holdings in Rocket Lab () and SoFi Technologies () — "those two are almost like children to me" — the veteran trader said "they pale in comparison to the greatest trade I have made in my now almost 40-year career as a professional trader and almost 50 years since I started trading." TheStreet Pro's Guilfoyle: Palantir indispensable to key sectors "Probably one of the real winners when it comes to monetizing their AI services platform," he said. "The firm has made itself indispensable as a U.S. and allied defense contractor, and to nondefense government agencies and the corporate world as well." Guilfoyle, whose career dates back to the floor of the New York Stock Exchange in the 1980s, said he'd been waiting for someone else to compete effectively in this space."I once thought perhaps Snowflake () would be the one, but still, as far as I can tell, nobody is even close," he said, Palantir is the only stock that Guilfoyle has named as his stock of the year two years in a row. "From the time I initiated PLTR for Real Money Pro (now TheStreet Pro), PLTR is up a mere 2,192%," Guilfoyle said. "Rock and roll, kids. Just for the record, I still get fired up about 10% and 20% gains in the stocks I trade." Guilfoyle cited the recent NATO 2025 Summit at the Hague that wrapped up in June, where the group approved an increase in defense spending for member nations to 5% of GDP, as demanded by President Donald Trump, "Tanks, artillery, aircraft, naval craft, missiles and missile defense technology will all be in demand, though some of those technologies might have something in common with yesterday's roast beef," he said. Guilfoyle said that intelligence produced through data-based and AI-assisted analysis will only grow in significance. And not just for strategic purposes, "but because it is cost-effective relative to purchasing submarines and fighter aircraft." "This plays straight into the hands of a firm like Palantir," he said. These nations have pledged to upspend on defense, yet most of them are also fiscally strapped. They, in my opinion, are going to spend where they get the most bang for their expense." Guilfoyle reiterated his price target for Palantir at $181, noting that "our current target is the high target on Wall Street and as usual most of Wall Street is still playing catchup."Veteran trader surprises with Palantir price target and comments first appeared on TheStreet on Jul 15, 2025 This story was originally reported by TheStreet on Jul 15, 2025, where it first appeared.
Yahoo
a day ago
- Business
- Yahoo
Microsoft analysts reboot stock price targets ahead of Q4 earnings
Microsoft analysts reboot stock price targets ahead of Q4 earnings originally appeared on TheStreet. Hey, good news, Microsoft () , you made the list. The software giant got some high praise indeed from Wedbush analyst Dan Ives, who included the Redmond, Wash., company on the investment firm's list of five top tech picks for the second half. 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰 The other names were AI-chip heavyweight Nvidia () , Facebook parent Meta Platforms () , data-analytics-software company Palantir () , and electric-vehicle maker Tesla () . "The poster childs for the AI Revolution are led by Nvidia and Microsoft as both are foundational pieces of building on the biggest tech trend we have seen in our 25 years covering tech stocks" on Wall Street, Ives said. The analyst said in a research note that he was expecting a very strong June quarter from Microsoft, "as Azure and Intelligent Cloud upside remain the core drivers of this tech stalwart with AI driving the show." "With over 15% of cloud services now including some form of AI, this technology has become a driver for cloud projects, with more integrations of models into cloud products and services to further drive the top line at lower costs," he said. "[We] believe AI and cloud driven spending will be a high priority area and software should outperform other subsectors of tech." Analyst sees Microsoft in the driver's seat This dynamic clearly benefits the hyperscalers — the giant providers of cloud services and infrastructure, such as Microsoft, Google () and Amazon () — front and center, the analyst said. In "a world of tariff uncertainty, these cloud and AI projects are being greenlighted, as C- level management know [that] if they slow down these projects, the strategic impact could be hard to recover from." Ives said that over the past month, in numerous conversations with Microsoft customers and partners, "it has become crystal clear to us that the monetization opportunities around deploying AI in the cloud is a transformational opportunity across the industry, with Redmond in the driver's seat."The analyst, who has an outperform rating and $600 stock price target on MSFT, said his thesis remained that cloud and AI monetization is going to comprise a bigger and bigger piece of Microsoft going forward and will ultimately spur growth and margins over the coming years. Microsoft "is just hitting its next phase of monetization on the AI front, and more enterprises are accelerating their AI budgets and strategic footprint with Redmond into fiscal 2026," Ives said. Wall Street is "not fully appreciating the growth story." Microsoft CEO Satya Nadella touted the allure of Azure during the company's third-quarter earnings call in April. 'When it comes to cloud migrations, we saw accelerating demand, with customers in every industry, from Abercrombie & Fitch to Coca-Cola and ServiceNow, expanding their footprints on Azure, ' he said. "And we remain the cloud of choice for customers' mission critical VMWare, SAP and Oracle workloads, with more regional availability than any other hyperscaler." Azure is a key driver of Microsoft's Intelligent Cloud segment, which also includes server products and other cloud services. The Intelligent Cloud segment's fiscal-Q3 revenue surged 21% to $26.8 billion. The tech giant said in April that it was expecting Azure's fourth-quarter revenue to grow between 34% and 35%. driven by strong demand for the portfolio of services. Cantor sees momentum for Microsoft Microsoft is scheduled to report quarterly results on July 30. The shares are up nearly 20% this year and up 12% from this time in 2024. More Tech Stocks: Amazon tries to make AI great again (or maybe for the first time) Veteran portfolio manager raises eyebrows with latest Meta Platforms move Google plans major AI shift after Meta's surprising $14 billion move Mizuho analyst Gregg Moskowitz raised the investment firm's price target on Microsoft to $540 from $500 and affirmed an outperform rating as part of an earnings preview for the group. Moskowitz said its quarter checks were good overall, with cybersecurity demand "generally healthy" and AI adoption "very strong.' But several contacts noted slightly more deal pushouts than expected, which could constrain fundamental upside in the quarter, the analyst said. Moskowitz's favorite stocks to own ahead of the print are Cyberark Software () and Microsoft Cantor Fitzgerald raised its price target on Microsoft to $581 from $512 and maintained an overweight rating on the shares. The investment firm said it didn't expect the same positive surprise from last quarter regarding accelerated Azure growth since the economic backdrop in April was tepid, The Fly reported. Cantor said, however, that it saw overall momentum continuing, with its channel checks mostly positive in the near term and for the second half of analysts reboot stock price targets ahead of Q4 earnings first appeared on TheStreet on Jul 16, 2025 This story was originally reported by TheStreet on Jul 16, 2025, where it first appeared. Sign in to access your portfolio
