Latest news with #HarlanSur
CNBC
2 days ago
- Business
- CNBC
Top Wall Street analysts believe in the potential of these stocks despite macro woes
Macro uncertainty is keeping the market volatile, but investors ought to keep their focus on stocks that can provide compelling long-term returns. Top Wall Street analysts' recommendations can help inform investors as they pick the right stocks that can weather short-term pressures with solid execution and generate impressive returns over the long term. With that in mind, here are three stocks favored by the Street's top pros, according to TipRanks, a platform that ranks analysts based on their past performance. Semiconductor giant Nvidia (NVDA) is this week's first stock pick. The company reported market-beating results for the first quarter of fiscal 2026. Despite chip export restrictions, Nvidia remains confident about the demand for its artificial intelligence infrastructure. Following the Q1 print, JPMorgan analyst Harlan Sur reiterated a buy rating on Nvidia stock with a price target of $170. The analyst noted that the company delivered solid revenue despite lost sales related to the H20 chip export restrictions on shipments to China. However, NVDA's margins and EPS were hit by the $4.5 billion write-down related to H20 inventory write-downs. Excluding H20 shipments, Sur projects that the July quarter data center revenue is growing at about 16% quarter over quarter, driven by continued robust spending by customers on their AI/accelerated compute projects and persistent strength in production and deployment ramp of Nvidia's Blackwell platform. The analyst added that the demand for Nvidia's Blackwell platform is very strong and is expected to continue to surpass supply for many quarters. Sur believes that management has good visibility for solid growth through calendar year 2026, backed by recent mega data center deals (including those with UAE, Saudi Arabia, and Taiwan) and the end of the diffusion rule. Overall, Sur concluded that Nvidia is staying ahead of competitors with its silicon, hardware and software platforms and an impressive ecosystem, "further distancing itself with its aggressive cadence of new product launches and more product segmentation over time." Sur ranks No. 38 among more than 9,600 analysts tracked by TipRanks. His ratings have been profitable 66% of the time, delivering an average return of 23.4%. See Nvidia Ownership Structure on TipRanks. We move to cybersecurity company Zscaler (ZS). The company's results for the fiscal third quarter surpassed expectations, fueled by the demand for its Zero Trust Exchange platform and the growing need for AI security. In reaction to the upbeat results, JPMorgan analyst Brian Essex reaffirmed a buy rating on Zscaler stock and boosted the price target to $292 from $275, saying, "We are encouraged by the strength in the quarter, particularly when off-calendar peers seemed to struggle with macro headwinds a bit more than expected." The analyst noted that Zscaler raised its full-year outlook for revenue, profitability and billings. He explained that the company's performance was backed by encouraging contributions from emerging products like Zero Trust Everywhere, Data Security Everywhere and Agentic Operations. In fact, these emerging products are approaching $1 billion in annual recurring revenue (ARR). Essex noted that large customer momentum continued to be solid in Q3 FY25, with the number of customers with over $1 million of ARR increasing 23% year over year, keeping Zscaler on track to exceed $3 billion of ARR in the fiscal fourth quarter. He emphasized that macro commentary was better than anticipated, as management stated that the company didn't witness a "softer April," though IT budgets remain tight. Commenting on Zscaler's Red Canary acquisition, Essex views this deal as encouraging, given that it is expected to enable the company to leverage the IP (intellectual property) and threat intel capabilities of Red Canary. Essex ranks No. 652 among more than 9,600 analysts tracked by TipRanks. His ratings have been successful 58% of the time, delivering an average return of 12.6%. See Zscaler Hedge Fund Trading Activity on TipRanks. Customer relationship management software provider Salesforce (CRM) recently reported better-than-projected revenue and earnings for the first quarter of fiscal 2026 and raised its full-year forecast. The company also announced the acquisition of data management company Informatica for $8 billion. Following the results, TD Cowen analyst Derrick Wood reiterated a buy rating on CRM stock with a price target of $375. Wood noted that the company's Q1 FY26 revenue and current remaining performance obligations surpassed expectations. "We think its renewed focus on accelerating sales capacity growth is a strong demand signal & should unlock higher growth next year," said Wood. The analyst highlighted that AI adoption is ramping for Salesforce, with Data Cloud and AI ARR rising more than 120% year over year and reflecting strong early traction for the company's Agentforce offering. Wood noted that 30% of net new Agentforce bookings came from existing customers expanding their usage. The analyst stated he is encouraged by the scale and velocity of Data Cloud, which he considers to be a leading indicator of Agentforce adoption as customers gear up to power agentic workflows. Wood contends that with margins now in the mid-30% range, Salesforce is focusing more on growth by re-deploying AI cost savings. Notably, the company is increasing its workforce more aggressively, following a flat sales headcount in the last two to three years. The analyst sees this as a signal of positive demand, with management indicating that pipelines are growing by the double-digits. Wood ranks No. 176 among more than 9,600 analysts tracked by TipRanks. His ratings have been profitable 62% of the time, delivering an average return of 14.8%. See Salesforce Technical Analysis on TipRanks.
CNBC
4 days ago
- Business
- CNBC
Here's what Wall Street has to say about Broadcom's second-quarter results
Analysts from several major Wall Street banks walked away from Broadcom 's latest quarterly report with more conviction on the stock. The chipmaker reported fiscal second-quarter revenue and profits on Thursday that exceeded analysts' estimates, and also gave strong guidance for the current quarter. Broadcom's adjusted earnings per share of $1.58 on revenue of $15 billion beat the expected $1.56 per share and $14.99 billion from analysts polled by LSEG. Broadcom saw $4.4 billion in AI revenue during the quarter and said it expects $5.1 billion in AI chip sales in its fiscal third quarter. Shares dipped 2% in premarket trading as the company gave a weaker forecast for its non-AI semiconductor revenue, where analysts were hoping to see signs of a cyclical recovery. The stock has soared 45% in the past three months. Analysts held to a long-term bullish outlook on Broadcom and praised what they called strong growth visibility heading into its next fiscal year, confident in management reaffirming its hyperscale customers and highlighting a well-positioned networking business amid continued AI demand. Bank of America, for example, said to "ignore quarterly noise" and focus on Broadcom's strong AI growth targets. Take a look at what some had to say: JPMorgan: overweight, price target $325 from $250 Analyst Harlan Sur said Broadcom remains his top pick in semiconductors. His bullish price target indicates roughly 25% upside ahead for the stock over the next year. "We are encouraged by team's strong line of sight to FY26 AI revenue profile driven by strong cloud/hyperscaler capex spending trends with continued focus on AI training combined with accelerating AI inference workloads, continued ramp of Google's next-gen TPU v6/v7 3nm AI accelerator ASICs, ramp up of Meta 3nm, and continued strong adoption of ethernet networking," he wrote in a note to clients. Overall, the team continues to drive a solid revenue growth profile even in a period of macro volatility given its portfolio breadth/diversification/product cycles." UBS: buy, lifts price target to $290 Analyst Timothy Arcuri bumped up his price target on Broadcom and called it "a clear AI winner." But the stock could consolidate some of its recent gains in the near term given already high investor expectations, he said. "Beyond the near-term, AVGO is likely to win on multiple fronts as hyperscaler customers look to create large heterogeneous compute clusters using either custom ASIC (the vast majority of which we think will be made by AVGO) or AMD alongside NVDA GPUs," Arcuri said in a Friday note. "AVGO's opportunity to link this all together using Ethernet should also scale alongside these solutions and AVGO also benefits from scaling out from cluster to cluster given its existing dominance in this market." Wells Fargo: equal weight, price target to $255 Analyst Aaron Rakers' price target implies Broadcom shares are expensive, and could fall about 2% from Thursday's close. Rakers highlighted Broadcom's "sustained AI momentum" into fiscal year 2026. "We continue to see shares representing a balanced risk/reward at current levels with significant leverage and an expectation that future acquisitions will remain a use of capital keeping us on the sidelines," Rakers said in a Thursday note. Deutsche Bank: buy, price target to $270 from $205 Analyst Ross Seymore expects the lack of recovery in Broadcom's non-AI business to remain a headwind heading into the fiscal fourth quarter, but expects greater focus on the growth trajectory of the company's AI business in the future. "Overall, the combination of secular growth (AI), continued software integration and execution (Vsphere contract conversions), and a potential cyclical rebound in the non-AI semis components should set the company up well for both the short- and longterm," Seymore said in a note. "Consequently, with our increased confidence in AVGO's ability maintain its AI growth in FY26 leading to a nearly +10% rise in our CY26 EPS ests, we maintain our buy rating." Bank of America: buy, price target to $300 from $240 Analyst Vivek Arya's new price target suggests the stock could gain another 15% in the coming year. A risk is that Broadcom is trading at the upper end of its historical range and at a premium to market leader Nvidia, he said. "While some might be disappointed AVGO did not update its FY27 $60-$90bn AI TAM, we believe it's only a matter of time especially as FY27 sell-side AI revenue cons. ests. is still well below $45bn, so plenty of headroom for upgrades," Arya wrote in a note. "Reit. Buy, a top computing and top-5 sector pick on unique mix of capital appreciation and consistent dividend growth with a blend of recurring (50% software), secular (AI) and cyclical (non-AI) profiles."
CNBC
29-05-2025
- Business
- CNBC
3 key takeaways from Nvidia's earnings: China blow, cloud strength and AI future
Nvidia reported strong fiscal first-quarter earnings on Wednesday. Wall Street was pleased with Nvidia's continued sales growth, which hit 69% during the quarter. The company's data center division continues to surge as companies, countries, and cloud providers snap up Nvidia graphics processors, or GPUs, for artificial intelligence software. "The team continues to maintain a 1- 2 step lead ahead of competitors with its silicon/hardware/software platforms and a strong ecosystem, and the team is further distancing itself with its aggressive cadence of new product launches and more product segmentation over time," wrote JPMorgan analyst Harlan Sur. Here are three big takeaways from the company's earnings call: Nvidia expects to sell about $45 billion in chips during the July quarter, it revealed on Wednesday, but that's missing about $8 billion in sales that the company would have recorded if not for the U.S. restricting exports of its H20 chip without a license. Nvidia also said that it missed out on $2.5 billion in sales during the April quarter thanks to the export restrictions on H20. In prepared remarks, Nvidia CEO Jensen Huang said that China represented a $50 billion market that had effectively been closed to Nvidia. He also said that the export controls were misguided, and would merely encourage Chinese AI developers to use homegrown chips, instead of making an American platform the world's choice for AI software. "The U.S. has based its policy on the assumption that China cannot make AI chips. That assumption was always questionable, and now it's clearly wrong," Huang said. He said that export controls were driving AI talent to use chips from homegrown Chinese rivals, such as Huawei. Nvidia said it didn't have a replacement chip for China ready, but that it was considering options for "interesting products" that could be sold in the market. Strength in the company's Blackwell business balanced out some concerns over the China impact. "NVIDIA is putting digestion fears fully to rest, showing acceleration of the business other than the China headwinds around growth drivers that seem durable. Everything should get better from here," said Morgan Stanley analyst Joseph Moore. Nvidia says that it has many customers ranging from sovereign nations to universities to enterprises that want to research AI. But it confirmed again on Wednesday that cloud providers — companies like Microsoft Azure, Google Cloud, Oracle Cloud Infrastructure, and Amazon Web Services — still make up about half of its data center revenue, which reported $39.1 billion in sales during the quarter. These companies tend to buy the fastest and latest Nvidia chips, including Blackwell, which comprised 70% of Nvidia's data center sales during the quarter, CFO Colette Kress said. Microsoft, for example, had already deployed "tens of thousands" of Blackwell GPUs, the company said, processing "100 trillion tokens" in the first quarter. Tokens are a measure of AI output. And they'll be first in line to get Blackwell Ultra, an updated version of the chip with additional memory and performance. Nvidia said shipments of those systems will start during the current quarter. Bernstein's Stacy Rason said the " general outlook and environment overall seems very encouraging" as the company ramps up its Blackwell rollout and compute requirements grow. "Amid a messy quarter, NVIDIA is comporting themselves extremely well," he said. For the past few years, many Nvidia GPUs were used for a resource-intensive process called training, where data is processed through an AI model until it gains new abilities. Now, Huang is talking up the potential for Nvidia's GPUs to serve the AI models to millions of customers, a process called inference in the industry. He said that is where new surging demand is coming from. "Overall, we believe NVDA's technology leadership remains strong, with growth in Blackwell shipments benefitting from exponential growth in reasoning AI and the achievement of economies of scale," said Deutsche Bank's Ross Seymore. Huang says that the latest AI models need to generate more tokens — or create more output — in order to do "reasoning," which improves AI answers. Of course, Nvidia's latest Blackwell chips are designed for this, Huang said. "We are witnessing a sharp jump in inference demand," Huang said. "OpenAI, Microsoft, and Google are seeing a step-function leap in token generation." Huang compared modern AI models to the "one-shot" approach that ChatGPT used when it first debuted in 2022, and said that the new models need "a hundred, a thousand times more" computing. "It's essentially thinking to itself, breaking down a problem step by step," Huang said. "It might be planning multiple paths to an answer. It could be using tools, reading PDFs, reading web pages, watching videos, and then producing a result." Huang struck a notably more somber tone during the earnings call, focusing heavily on the impact of export controls rather than his usual evangelizing about AI's world-changing potential. He spoke at length on the earnings call about U.S. chip restrictions and clearly stated how much of an impact the limits have on current and future business. "The AI race is not just about chips," he said. "It's about which stack the world runs on. As that stack grows to include 6G and quantum, U.S. global infrastructure leadership is at stake."
Yahoo
28-05-2025
- Business
- Yahoo
This AI Stock Could See Big Gains – Why JPMorgan Is Bullish on Marvell (MRVL)
We recently published a list of . In this article, we are going to take a look at where Marvell Technology Inc. (NASDAQ:MRVL) stands against other AI stocks that are on analyst's radar today. On May 27, JPMorgan analyst Harlan Sur reiterated an 'Overweight' rating on Marvell Technology, Inc. (NASDAQ:MRVL) with a $130.00 price target. Heading into Thursday's earnings report, analyst Harlan Sur is optimistic about the company's quarterly performance. In particular, Sur anticipates a steady uptick in volume for its AI ASIC programs, robust demand for 800G products, and the initial ramp of 1.6T optical DSPs. These trends are in turn expected to drive cyclical recovery in its enterprise and carrier segments. April quarter results are projected to reach around $1.875 billion, and guidance for the July quarter is estimated to exceed $2.00 billion; both aligning with the firm's consensus estimates. One particular segment anticipated to demonstrate solid growth is the datacenter segment. Cyclical improvements and new product cycles will also positively benefit Marvell. An assembly line in a semiconductor factory, with workers at their stations. Sur also noted momentum in Marvell's custom ASIC partnerships. He highlighted Amazon's ongoing production ramp with the Trainium 2 AI XPU ASIC, the expected high-volume ramp of the Trainium 3 program in 2026, and also Marvell's Microsoft AI ASIC MAIA Gen 2 program, which is expected to ramp in the same year. The firm noted how the company's AI ASICs and networking revenues could reach $4 billion this year. Last but not least, Sur anticipates that Marvell's custom datacenter and AI ASIC pipeline, including SmartNIC/DPU ASIC chips and eSSD controller ASICs, will be key contributors to long-term growth. Overall, MRVL ranks 7th on our list of AI stocks that are on analyst's radar today. While we acknowledge the potential of MRVL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MRVL and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
27-05-2025
- Business
- Yahoo
Why Marvell's AI Revenue Could Top $4 Billion By 2025, Analyst Explains
JP Morgan analyst Harlan Sur maintained an Overweight rating on Marvell Technology, Inc. (NASDAQ:MRVL) with a price forecast of $130 on Tuesday. This price forecast is based on Marvell's strong market leadership in optical connectivity, synergies with its Storage, Networking, and embedded processing franchises, and its solid growth outlook in AI/Networking, Sur asserted. Marvell will report earnings on Thursday, and Sur expects a continued volume ramp of Inc. (NASDAQ:AMZN) Trainium 2 ASIC and Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) Google Axion ARM CPU programs, strong demand for its 800G products, and the initial ramp of 1.6T optical DSPs, combined with a continued cyclical recovery in its enterprise and carrier the analyst expects April quarter results ($1.875 billion, up 3% Q/Q) and July quarter guidance ($2.00 billion+, 7% Q/Q) to be in line with Sur and consensus estimates, with solid data center growth led by its AI ASIC ramps, growth in 800G/1.6T AI optical shipments, 400ZR shipments, and HDD/SSD controllers. He noted that the remainder of its business should drive a Q/Q growth profile on cyclical improvements/new product cycles. Sur noted that Marvell's Microsoft Corp. (NASDAQ:MSFT) AI ASIC MAIA Gen 2-3nm program is on track to ramp in calendar year 2026. Marvell has also won the Gen 3 MAIA program and has already commenced early chip design activity, he stated. The analyst said that 800G PAM4 optical DSP orders and shipments remain solid within Marvell's optical business, with an increasing ramp of next-gen 1.6T DSP into the second half. Sur noted that Marvell is tracking to drive $4 billion in AI revenues this year (ASICs + networking), up 2x+ Y/Y, with a strong growth profile into calendar year 2026. In cyclical business, demand from enterprise networking (Cisco Systems, Inc. (NASDAQ: CSCO)) remains healthy, and demand for carrier infrastructure is stabilizing, as per Sur. In automotive, the divestiture of the auto business, expected to close in the calendar year 2025 ($225-$250 million revenue in the fiscal year 2026), is a revenue headwind but should be overall accretive to the Marvell's earnings power by $0.05-$0.10, the analyst said. More importantly, he noted the custom data center and AI ASIC pipeline are continuing to expand. Price Action: MRVL stock was trading higher by 5.69% to $64.15 at last check Tuesday. Read Next:Photo by JHVEPhoto via Shutterstock Date Firm Action From To Mar 2022 Susquehanna Maintains Positive Mar 2022 Summit Insights Group Downgrades Buy Hold Mar 2022 Morgan Stanley Maintains Equal-Weight View More Analyst Ratings for MRVL View the Latest Analyst Ratings Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? MARVELL TECH (MRVL): Free Stock Analysis Report This article Why Marvell's AI Revenue Could Top $4 Billion By 2025, Analyst Explains originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
