Latest news with #Hopper100
Yahoo
6 days ago
- Business
- Yahoo
NVIDIA Stock Soars 19% in a Month: Time to Hold or Book Profits?
NVIDIA Corporation NVDA has seen its share price soar 18.7% over the past month. This surge has significantly outperformed the broader Zacks Computer and Technology sector, which gained 6.9% during the same period. Image Source: Zacks Investment Research This outperformance raises the question: Is it time to take profits, or should investors continue holding NVDA as the rally extends? NVIDIA's recent surge has been driven in part by improving sentiment around U.S.-China trade. The two countries have rolled back tariffs, with the United States reducing tariffs on Chinese imports to 30% from 145%, while China cut duties on U.S. goods from 125% to 10%. These new terms will be in place for 90 days. This 90-day reprieve has eased concerns about prolonged trade disruptions, improving market sentiment and lifting stocks across sectors, especially tech and semiconductors. This broader rally has also powered gains in major semiconductor players, including Advanced Micro Devices AMD, Micron Technology MU and Broadcom AVGO. Over the past month, shares of Advanced Micro Devices, Micron and Broadcom have risen 10%, 17.4% and 20.6%, respectively. For NVIDIA, this trade relief was just the catalyst needed to reignite buying interest in a stock already backed by strong fundamentals. Given its solid footing in AI and chip innovation, this rebound has legs, suggesting that holding the stock may still be the better call. NVIDIA's most powerful growth engine continues to be its Data Center business. In the first quarter of fiscal 2026, the segment brought in $39.1 billion in revenues, a staggering 89% of total company sales. This represents 73% year-over-year growth and a 10% sequential rise, primarily fueled by explosive demand for AI. The company's cutting-edge Hopper 200 and Blackwell GPU platforms are being rapidly adopted as cloud and enterprise customers race to scale up AI infrastructure. A large chunk of this growth is coming from hyperscalers, who are betting big on NVIDIA's GPUs to support their expanding AI workloads. With the Blackwell architecture promising up to 25x better AI inference performance than Hopper 100, NVIDIA continues to raise the bar. The upcoming Blackwell Ultra and Vera Rubin platforms are likely to strengthen its position further as global demand for AI computing accelerates. Despite some geopolitical setbacks, NVIDIA's financials remain rock solid. In the first quarter of fiscal 2026, revenues jumped 69% from the year-ago quarter, while non-GAAP earnings per share rose 33%. Even with an $8 billion expected revenue hit in the second quarter due to export restrictions on its H20 chips in China (after a $2.5 billion revenue loss in the first quarter), NVIDIA remains confident in its momentum. Its second-quarter guidance of $45 billion in revenues marks a 50% jump from the same quarter last year. Wall Street sees this trend continuing. The Zacks Consensus Estimate projects revenue growth of 51% in fiscal 2026 and 24% in 2027, with earnings growth of 40% and 32%, respectively. These numbers reinforce NVIDIA's position as a long-term growth story, one that remains intact despite near-term geopolitical hurdles. Image Source: Zacks Investment Research Valuation-wise, NVIDIA is overvalued, as suggested by the Zacks Value Score of D. In terms of forward 12-month Price/Earnings (P/E), NVDA shares are trading at 29.13X, higher than the sector's 25.52X. Image Source: Zacks Investment Research Compared with other major semiconductor players, NVIDIA is trading at a lower P/E multiple than Broadcom while at a higher multiple than Advanced Micro Devices and Micron Technology. At present, Broadcom, Advanced Micro Devices and Micron Technology are trading at P/E multiples of 32.91X, 23.49X and 9.61X, respectively. NVIDIA's strong fundamentals, dominant position in AI and impressive growth outlook make a compelling case for staying invested. While valuation is on the higher side, the company's momentum, both operationally and financially, supports holding the stock. NVIDIA carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Micron Technology, Inc. (MU) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
14-03-2025
- Business
- Yahoo
AI Powerhouses are Transforming Oil & Gas Space: Buy NVDA & PLTR Now
The oil and gas industry, traditionally known for its reliance on heavy infrastructure and capital-intensive operations, is undergoing a technological revolution driven by artificial intelligence (AI). Companies in the sector are leveraging AI-driven solutions to optimize exploration, production and operational efficiencies. NVIDIA NVDA and Palantir Technologies PLTR are at the forefront of this transformation, providing the essential computing power and AI-driven analytics that energy giants need to thrive in a volatile market. NVIDIA is redefining the AI landscape with its Blackwell architecture, which provides industry-leading computing power for AI model training and inference. The company's GB200 GPUs are becoming integral to sectors demanding high-performance computing, including oil & gas. NVIDIA's Role in Oil & Gas AI Integration AI-Driven Seismic Analysis & Exploration: The oil and gas industry depends on extensive seismic data to identify potential reserves and optimize exploration efforts. NVIDIA's Blackwell supercomputers significantly enhance this process by enabling the rapid processing of vast datasets. With a 25x increase in token throughput and a 20x reduction in costs compared to Hopper 100, these supercomputers provide a more efficient and cost-effective solution for AI-driven seismic modeling. As a result, geological mapping and reservoir analysis can be conducted with greater accuracy and speed, reducing the time needed to make critical exploration decisions. AI for Predictive Maintenance & Asset Optimization: Leading energy companies, including BP plc BP and Shell plc SHEL, adopt AI-driven predictive maintenance to improve asset performance. NVIDIA's Grace Hopper Superchips power advanced AI models are capable of forecasting equipment failures before they occur. By analyzing vast amounts of operational data, these models help reduce unplanned downtime and optimize maintenance schedules, ultimately cutting costs and enhancing efficiency. This proactive approach ensures that critical infrastructure remains operational, minimizing risks associated with mechanical failures and extending the lifespan of essential equipment. Edge AI & IoT for Oil Rigs: Oil rigs often function in remote and extreme environments where real-time decision-making is crucial. NVIDIA's AI-powered edge computing, combined with NVLink and InfiniBand networking technologies, enables continuous monitoring and analysis of operational data directly at the site. By leveraging AI models to process sensor data from drilling rigs and pipelines, companies can enhance safety, detect anomalies and optimize efficiency. This capability ensures that potential issues are identified and addressed before they escalate, improving overall operational resilience and reducing the risks associated with offshore and onshore drilling operations. While NVIDIA provides the computational backbone, Palantir's AI-driven data platforms are making oil & gas operations smarter by integrating real-time analytics, predictive modeling and autonomous decision-making. Operational AI & Digital Twins for Energy Majors: Palantir is playing a significant role in the energy sector by enabling major oil and gas companies to leverage AI-driven digital twin models. These virtual replicas of physical operations allow firms like BP and Shell to simulate different scenarios, identify inefficiencies and optimize production flows. By integrating real-time data from drilling sites, refineries and supply chains, digital twins provide actionable insights that enhance decision-making and operational efficiency. Mining giant Rio Tinto has already expanded its partnership with Palantir to optimize resource extraction using similar AI-powered models, demonstrating the technology's impact across industries. AI for Supply Chain & Logistics in Energy Markets: Energy markets are highly volatile, with fluctuating prices and frequent supply chain disruptions. Palantir's AI-driven supply chain analytics help energy companies predict demand, optimize logistics and mitigate potential risks. By leveraging vast datasets and predictive modeling, firms like Shell and BP can ensure the seamless distribution of refined products and crude oil. AI-enhanced logistics reduce inefficiencies, cut costs and improve overall supply chain resilience, making it easier for companies to adapt to changing market conditions. Automating Drilling & Well Management: Palantir's Artificial Intelligence Platform (AIP) is revolutionizing drilling and well management by integrating real-time data from oil rigs and drilling sites. By automating decision-making for drill operators, the technology minimizes human error and enhances operational efficiency. AI-driven insights help detect bottlenecks, optimize drilling speeds and improve well performance, leading to safer and more cost-effective operations. As a result, energy companies can maximize output while reducing operational risks and downtime. With the global energy landscape becoming more AI-driven, NVIDIA and Palantir are uniquely positioned to capitalize on this transformation. Both the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BP p.l.c. (BP) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report Shell PLC Unsponsored ADR (SHEL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
07-03-2025
- Business
- Yahoo
3 Reasons Why I'm Buying Nvidia's Stock Like There's No Tomorrow
Nvidia (NASDAQ: NVDA) has been the artificial intelligence (AI) stock to own since 2023. Its performance over this time frame has been incredible, and its latest results were no exception. However, Wall Street seems to be getting bored with the stock. Similar to how a sports franchise may be loved at the start of a dynasty run, then hated by the end of it, Nvidia seems not to capture the attention of the market anymore. It reported fantastic fourth-quarter results for its fiscal 2025 year (ended Jan. 26), and yet the stock sold off. So is this an excellent time to load up on the stock? I've got three reasons why investors should be bullish on Nvidia's stock, not bearish. Nvidia's graphics processing units (GPUs) have powered the AI revolution because they can compete in parallel. This makes them perfectly suited to take on complex computing tasks like training AI models. Most of the AI training that we've seen to date has occurred on Nvidia's Hopper architecture, but that's being replaced by its latest design: Blackwell. Blackwell GPUs provide significant performance boosts over the previous Hopper design, including four times faster AI training. Furthermore, AI inference (which is when an AI model is given an input and a user expects an output) is 20 times cheaper than the Hopper 100 (H100) GPU. Blackwell GPUs will unlock a new phase of AI innovation that we haven't experienced yet, and this will continue to be a boost for Nvidia throughout the year. Although Blackwell chips made up $11 billion of Nvidia's $35.6 billion in data center revenue, they're still ramping up production on this game-changing product. However, this ramp-up also caused the one negative thing Wall Street focused on during Q4: falling gross margins. Nvidia's management was aware of this, as its gross margins fell from the mid-to high-70% range to 73% in Q4. This pattern should persist through Q1 but recover by the year's end as they become more efficient in producing Blackwell GPUs. The big item here is to know that these margins will recover, and Nvidia is putting the customer first by getting out as many of its innovative Blackwell chips as possible. This ramp-up will continue to cause Nvidia's revenue to rise, and investors should be very bullish about that, even if its gross margins take a short-term dip. There has never been a company of Nvidia's size that has sustained growth rates as strong as it has during its recent run. In Q4, revenue was up 78% year over year and up 12% over Q3. For Q1, management expects $43 billion in revenue, indicating 65% year over year growth and 9% quarter over quarter growth. However, Nvidia's management has a track record of under-guiding and overdelivering, so the real figures may be a few percentage points higher. That's stunning growth for a company of Nvidia's size, and Wall Street expects that growth to persist throughout this year and next. For the current fiscal year and next year, Wall Street analysts expect 57% revenue growth and 22% growth, far exceeding what many of Nvidia's big tech peers are putting up. There is still plenty of growth left in the AI space and other industries that Nvidia supports. The growth is far from over for Nvidia, and it's another bullish reason to purchase the stock. Nvidia shares have sometimes looked rather expensive throughout their run-up over the past few years, but I'd say they're starting to look rather cheap. NVDA PE Ratio data by YCharts. Nvidia now trades for about 43 times trailing earnings and 28 times forward earnings and is posting phenomenal growth figures. Let's contrast that with other common big tech companies (like some of the Magnificent Seven). NVDA PE Ratio data by YCharts. While Nvidia is still the most expensive by its trailing P/E ratio, it's not by much. When forward earnings are considered, Nvidia is the cheapest of these other big tech companies. So, why would you buy any of these other three when you can buy the company with the most to benefit from the most important innovation since the Internet? That's exactly why Nvidia is a screaming buy right now, and investors should be loading up on the stock after the weakness from its latest earnings report. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 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 Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $677,631!* Now, it's worth noting Stock Advisor's total average return is 822% — a market-crushing outperformance compared to 166% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of March 3, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Keithen Drury has positions in Amazon and Nvidia. The Motley Fool has positions in and recommends Amazon, Apple, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. 3 Reasons Why I'm Buying Nvidia's Stock Like There's No Tomorrow was originally published by The Motley Fool Sign in to access your portfolio
