Latest news with #Hopper200
Yahoo
7 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
Globe and Mail
17-03-2025
- Business
- Globe and Mail
Big Tech Selloff: 2 ‘Strong Buy' Stocks Down 19% and 21% to Buy on the Dip Now
The recent selloff in big tech stocks has erased billions from their market valuations, rattling investor confidence. Economic concerns tied to President Donald Trump's policies — from tariffs and immigration to federal spending cuts — have added to the unease, pulling the broader market lower. Even the most dominant players in the sector, often referred to as the ' Magnificent Seven,' have seen double-digit declines from their peaks. Despite this pullback, these tech giants remain at the forefront of innovation. They will benefit from significant tailwinds such as the adoption of artificial intelligence (AI) and the ongoing digital shift. Thus, this pullback presents an opportunity to buy quality stocks at a discounted price. With that in mind, let's take a closer look at two big tech stocks rated as 'Strong Buys' by analysts — both of which have retreated from their highs but are well-positioned for strong future growth. Big Tech Stock #1: Nvidia Nvidia (NVDA) stock has taken a hit, sliding over 20.5% from its recent peak. Investors are growing uneasy over the potential slowdown in AI infrastructure spending and broader macroeconomic uncertainty. While these concerns are valid, Nvidia's core business — its AI-focused GPUs — remains in high demand, with no signs of cooling off. In fact, demand continues to outstrip supply, suggesting that the company could continue to deliver solid financials. Notably, Nvidia has been delivering impressive growth quarter after quarter. Further, its management remains optimistic about the future, which indicates that demand for its AI chips isn't going anywhere. The company's data center segment, a key driver of its growth, has been surging thanks to its Hopper platform and now the latest Blackwell chips. In fiscal 2025, Nvidia's data center revenue more than doubled, hitting an impressive $115.2 billion. This momentum will sustain, with the adoption of Blackwell accelerating and Hopper 200 maintaining its strength. These strong numbers show that Nvidia's AI chips are more in demand than ever. Nvidia's latest earnings report reflects its dominance in the AI space. Nvidia generated $11 billion in revenue from Blackwell in Q4 alone, marking the fastest product ramp in its history. Production is in full swing, with supply increasing to meet the overwhelming demand. Looking ahead, Nvidia expects another strong quarter, with Blackwell seeing a significant ramp-up in Q1 of FY26. Growth in both the data center and gaming divisions is anticipated. Within the data center segment, strength in computing and networking will support its growth. These factors suggest that Nvidia is well-positioned for sustained growth, which could support a solid rebound in its share price. The dip has made its valuation more attractive, and Wall Street analysts remain bullish. The stock currently holds a 'Strong Buy' consensus rating and an average price target of $176.56, suggesting nearly 50% potential upside from current levels. Big Tech Stock #2: Amazon Amazon (AMZN) stock has dropped about 19.4% from its recent high, despite the company firing on all cylinders. This pullback could be a chance for long-term investors to buy into one of the most dominant players in high-growth industries like cloud computing, e-commerce, digital advertising, and AI. The tech giant is gearing up for another strong year, with multiple business segments driving its momentum. One of its biggest strengths is Amazon Web Services (AWS) — the company's cloud computing division. AWS is booming, with an annualized revenue run rate of $115 billion. With businesses increasingly migrating to the cloud and embracing AI-driven solutions, AWS is perfectly positioned to ride this wave. Beyond the cloud, Amazon's digital advertising business is another powerhouse. The company pulled in $17.3 billion in ad revenue in Q4 alone, marking an 18% year-over-year increase. To put that into perspective, Amazon's annual advertising revenue run rate now stands at $69 billion — more than double what it was just four years ago. On the operational front, Amazon is making moves to improve efficiency and cut costs. The company's shift toward a regional fulfillment network is optimizing its delivery operations, supporting its margins, driving its e-commerce growth, and making Amazon even more competitive in retail. Wall Street remains bullish on Amazon stock, with analysts overwhelmingly giving it a 'Strong Buy' rating. The stock's average price target of $268.66 suggests potential upside of roughly 37.5% from current levels.
Yahoo
27-02-2025
- Business
- Yahoo
NVIDIA Corp (NVDA) Q4 2025 Earnings Call Highlights: Record Revenue and Data Center Growth Amid ...
Revenue: $39.3 billion for Q4, up 12% sequentially and 78% year on year; fiscal 2025 revenue was $130.5 billion, up 114% from the prior year. Data Center Revenue: $35.6 billion for Q4, up 16% sequentially and 93% year on year; fiscal 2025 data center revenue was $115.2 billion, more than doubling from the prior year. Gaming Revenue: $2.5 billion for Q4, decreased 22% sequentially and 11% year on year; full-year revenue was $11.4 billion, up 9% year on year. Professional Visualization Revenue: $511 million for Q4, up 5% sequentially and 10% year on year; full-year revenue was $1.9 billion, up 21% year on year. Automotive Revenue: $570 million for Q4, up 27% sequentially and 103% year on year; full-year revenue was $1.7 billion, up 55% year on year. Gross Margins: GAAP gross margin was 73%, and non-GAAP gross margin was 73.5% for Q4. Operating Expenses: GAAP operating expenses up 9% sequentially; non-GAAP operating expenses up 11% sequentially. Shareholder Returns: $8.1 billion returned to shareholders in Q4 through share repurchases and cash dividends. Q1 Outlook: Expected revenue of $43 billion, plus or minus 2%; GAAP and non-GAAP gross margins expected to be 70.6% and 71%, respectively. Warning! GuruFocus has detected 3 Warning Signs with NVDA. Release Date: February 26, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. NVIDIA Corp (NASDAQ:NVDA) reported a record revenue of $39.3 billion for Q4, up 12% sequentially and 78% year-on-year, surpassing their outlook. Data center revenue for fiscal 2025 was $115.2 billion, more than doubling from the prior year, driven by strong demand for Blackwell and Hopper 200 products. The Blackwell product ramp is the fastest in the company's history, with $11 billion in revenue generated in Q4 alone. NVIDIA's inference demand is accelerating, with Blackwell offering up to 25x higher token throughput and 20x lower cost compared to previous models. Enterprise revenue increased nearly 2x year-on-year, driven by demand for model fine-tuning and AI workflows. Networking revenue declined 3% sequentially, although it is expected to return to growth in Q1. Gaming revenue decreased 22% sequentially and 11% year-on-year, impacted by supply constraints. GAAP gross margins were down sequentially due to the initial deliveries of the Blackwell architecture. China's data center sales remain well below previous levels due to export controls, with no expected change in the near future. The complexity and customization of Blackwell systems present challenges in manufacturing and gross margin improvements. Q: As test-time compute and reinforcement learning show promise, how does this impact the potential for inference-dedicated clusters and NVIDIA's strategy? A: Jensen Huang, CEO, explained that there are multiple scaling laws, including pre-training, post-training, and test-time compute. The demand for post-training and reasoning AI is increasing, requiring more compute power. NVIDIA's architecture is designed to handle these demands, making it versatile for various AI models and ensuring a unified architecture for data centers. Q: Can you discuss the ramp-up of the GB200 systems and any bottlenecks at the systems level? A: Jensen Huang, CEO, stated that the ramp-up of Grace Blackwell systems has been successful, with significant shipments since CES. Despite the complexity, NVIDIA has managed to scale production effectively, meeting high demand from customers like CoreWeave and Microsoft. Q: Is Q1 the bottom for gross margins, and what gives you confidence in sustaining strong demand into next year? A: Colette Kress, CFO, noted that gross margins will be in the low 70s during the Blackwell ramp, with improvements expected later in the year. Jensen Huang, CEO, highlighted the ongoing capital investment in data centers and the shift towards AI-based software, which supports sustained demand. Q: How do you manage the simultaneous ramps of Blackwell and Blackwell Ultra, and is the launch on track? A: Jensen Huang, CEO, confirmed that Blackwell Ultra is set for the second half of the year. The transition from Blackwell to Blackwell Ultra will be smoother due to similar system architectures, and NVIDIA is working closely with partners to ensure a successful rollout. Q: Can you discuss the balance between custom ASICs and merchant GPUs, and the potential for heterogeneous superclusters? A: Jensen Huang, CEO, emphasized that NVIDIA's architecture is general and flexible, supporting a wide range of AI models and applications. The performance, software ecosystem, and rapid deployment capabilities make NVIDIA's GPUs a preferred choice over custom ASICs. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
