Latest news with #H20GPUs
Globe and Mail
6 days ago
- Business
- Globe and Mail
‘Take a Deep Breath,' Says Top Investor About Nvidia Stock
Seasons change, presidents are elected, and markets rise and fall – but Nvidia Corporation (NASDAQ:NVDA) continues to surpass expectations. Once again, the undisputed data center champion delivered top- and bottom-line beats with its Q1 Fiscal 2026 earnings report. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Nvidia's revenues grew 69% year-over-year to reach $44.1 billion, nicely outpacing projections by a cool $810 million. The company's lucrative data center segment is a particular point of pride, and its revenues grew even faster by 73% year-over-year to $39 billion. While the overall numbers continue to impress, it was not all sunshine and rainbows. Revenue growth – while the envy of many – is slowing, and margins – while north of 60% – also declined. Of course, a fair amount of the shrinking margins can be blamed on a $4.5 billion charge related to H20 GPUs that the company was not allowed to ship to China. The big question, however, is how the share price will react going forward. NVDA has been up-and-down quite a bit in 2025 – and all told its share price is roughly even year-to-date. That being said, since hitting a low point in early April, NVDA has risen over 40%. While top investor Jonathan Weber applauds Nvidia's revenue growth, he is not so sure that now is the time to jump on board. 'With Nvidia trading at more than 30x forward earnings again, following huge gains over the last couple of weeks, it is not as attractive as it was during the spring selloff,' explains the 5-star investor, who is in the top 2% of TipRanks' stock pros. While Weber deems that revenue growth is excellent indeed, it is not exactly 'extraordinary' for a company that has delivered growth rates up to 270% in the recent past. Moreover, it represents a declining trend. 'Momentum is thus not on Nvidia's side, which can be explained by factors such as tough comparisons and the law of large numbers — no company can grow at an extremely high growth rate forever, not even Nvidia,' adds Weber. Acknowledging that NVDA has been quite 'volatile' this year, Weber still sees plenty of growth up ahead. Whether or not that justifies buying NVDA at present is another story, however. 'Overall, I do not think that NVDA is a bad investment right here at all, but I also do not believe that it's a must-own,' concludes Weber, who assigns NVDA a Hold (i.e. Neutral) rating. (To watch Jonathan Weber's track record, click here) Wall Street, on the other hand, is 'all in' on Nvidia. With 33 Buys, 4 Holds, and 1 Sell, NVDA enjoys a Strong Buy consensus rating. Its 12-month average price target of $165.29 has an upside north of 20%. (See NVDA stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Yahoo
26-05-2025
- Business
- Yahoo
Investors hope Nvidia makes a statement
To say 2025 started badly for chip giant Nvidia () is an understatement. The shares opened the year rising to an all-time high of $153.13 on Jan. 7. And then DeepSeek, the Chinese artificial intelligence pricked the bubble, saying it could develop large language models for artificial intelligence at lower costs than Nvidia. Tariffs became a really big problem. 💵💰 💰💵 There were administration crackdowns on sales of Nvidia's not-quite top of the line H20 Graphic Processing Units to Chinese customers. And, suddenly, Nvidia hit a closing of low of $96.30 on April 8, down 28.3% on the year. The slump probably had more to do with the market reaction to President Trump's tariff plan than anything Nvidia had almost six weeks later, Nvidia shares are back up to $131.29. That's up 36% in a bit more than a month but still down 2.2% since Dec. 31 and 14.3% from the Jan. 7 high. After Wednesday's close, Nvidia, a component of the Dow Jones Industrial Average, will report fiscal-first-quarter results, and they will get plenty of attention. The consensus estimate is Nvidia will report earnings of 73 cents a share, up 16% from a year ago, and revenue of $43.4 billion, up 66% from a year ago. The earnings estimate has come down from 93 cents 60 days ago. But many investors are hopeful that Nvidia has weathered the DeepSeek storm, maybe found a way to create products that will win U.S. government export licenses necessary to sell to customers in China and can get stock moving again. The company's market capitalization is back to $3.2 trillion, behind Microsoft () at $3.25 trillion and ahead of Apple () at $2.92 trillion. Maybe Nvidia will deliver, as the company basically did in the last quarter. And maybe investors will reward their efforts. Futures trading late Sunday suggests U.S. stocks will rebound from Friday's slump when trading reopens on Tuesday. U.S. financial markets will be closed Monday for Memorial Day. The uptick looks like a relief rally after President Trump disclosed Sunday he had agreed to a European request to delay 50% tariffs until at least July 9. (There is a school of thought making its way through Wall Street that July 9 might not be a hard deadline.)In a holiday-shortened week, investors will deal with a broad swath of earnings reports. Among other tech companies expected to report are: Salesforce () , the big customer relations management company (and a Dow component, like Nvidia), due after Wednesday's close. Dell Technology () , after Thursday's close. Marvell Technology () , after Thursday's close. Cloud security company Zscaler () after Thursday's close. Software company Synopsys () . HP Inc. () , after Wednesday's close. The week includes a heavy dose of tech earnings and results from one giant retailer: Costco Wholesale () , due after Thursday's close. Costco is the third largest retailer by market cap (at $448 billion), behind AMZN (at $2.13 trillion) and Walmart () (at $771 billion). Costco is expected to report earnings of $4.21 a share, up 11.4% from a year ago. The revenue projection is $62.9 billion, up 7.4% from a year. The shares are up 10.1% in 2025. Fund manager buys and sells Fund manager who forecast stock drop and pop talks what's next Fund manager sends blunt message on S&P 500 bear market risk Fund manager resets stock market forecast after oversold rally In addition to Costco, retailers reporting this week include: AutoZone () , before Tuesday's open. DICK's Sporting Goods () , before Wednesday's open. Macy's () , before Wednesday's open. The Gap () , after Thursday's close. Burlington Stores () , before Thursday's open. Ulta Beauty () , after Thursday's close. Shoe retailer Foot Locker () , before Thursday's open. If the tariff rhetoric can be toned down from last week, it might be a decent week. The S&P 500 was off 2.5% on the week. The Dow and Nasdaq Composite fell 2.5%, and the Russell 2000 Index fell 3.5%. Interest rates will be a big question. The 10-year Treasury yield ended last week at 4.52%. That keeps mortgage rates relatively high and consumer confidence on hope Nvidia makes a statement first appeared on TheStreet on May 26, 2025
