Latest news with #IvanaDelevska
Yahoo
4 days ago
- Business
- Yahoo
Are investors reentering the AI trade after recent 'exodus'?
While Nvidia shares (NVDA) continue to see post-earnings gains after topping first quarter revenue estimates, Spear Invest Founder and CIO Ivana Delevska speaks with host Brad Smith about investor exits from the AI trade and their reentry into the play as they chase the new highs from chip stocks and tech leaders. To watch more expert insights and analysis on the latest market action, check out more Wealth here. Stocks higher after a US court struck down President Trump's tariffs, declaring them illegal. The Nasdaq also getting a boost after Nvidia topped first quarter results, revenue soaring 69% in the most recent quarter. Joining me now, we've got Ivana Delevska, who is the Spear Invest founder and CIO. You say that investors have abandoned the AI trade, and we'll have to come back and chase the high-quality stocks and AI stocks like Nvidia. Why is that? So that's right, Brett. Thank you for having me. Basically, as tariffs started getting announced, and the economy became a little more uncertain, investors sold what they own, and they were really overweight the AI trade. Specifically people that didn't quite understand what they were getting themselves into, so it was a real exodus coming out of names like Nvidia, but even more so in some of the smaller caps. And right now as we approach second half, we're seeing the Blackwell ramping really well. And that's going to drive the entire value chain up, so we are very positive on the second half. So we think as we get closer to that, investors will have to come back and and chase it. What type of flows back into Nvidia do we see, even leading up into this earnings print from what you were able to assess? Well, for Nvidia specifically, it was really people coming back to it given the cancellation of the diffusion rule and few other positive catalysts. Like people thought that deep seek was going to be a headwind. It's actually turning out to be a tailwind. So there's been several positives for Nvidia specifically. For some of the smaller caps, there's also been a lot of short covering that we've been seeing. So the first leg up, I would say, from the bottom was mostly short covering. I think institutions and hedge funds are still quite underweight. And as they come to the market, I think that's when you're going to see the next leg up for these stocks. What's the most underappreciated portion or sector of the AI trade if you will? Well, there's several sectors that are underappreciated. One example is power generation. This space basically came under a lot of pressure, but it's actually not even going to be negatively impacted by tariffs, right? So as you have more onshoring, there's going to be more build out in the US, and there's going to be more power demand. So I would say that one sector is pretty misunderstood. Another area is networking. You're seeing a lot of the networking names sell off today, like Arista Networks, like Marvell, and those stocks basically are positively impacted by the AI trade. Some of the comments that Jensen made regarding their entrance into networking is making people nervous about the rest of the networking space and they're thinking that maybe Nvidia will gain market share. But even if they do, the market is growing at such an exponential rate that there is some piece of the pie for everybody here.
Yahoo
27-02-2025
- Business
- Yahoo
Nvidia's forecast, while upbeat, generates another selloff
(Reuters) - Nvidia's upbeat quarterly forecast signaled that the AI boom is not over, but it failed to bring buyers back into the "Magnificent Seven" stocks that have dipped in the last three months. The stock lost about 4% to $125.81 in choppy trading, and other members of the group such as Microsoft and were lower on Thursday after Nvidia's earnings failed to inspire the kind of gains that became a hallmark of the AI rally through 2023 and 2024. Nvidia is viewed as a barometer of the health of AI spending and the two-year boom propelled its valuation to more than $3 trillion. Investors were hoping its results would restart a rally that has sputtered following the "Magnificent Seven" stocks' peaks in late 2024. See for yourself — The Yodel is the go-to source for daily news, entertainment and feel-good stories. By signing up, you agree to our Terms and Privacy Policy. In recent weeks, Chinese startup DeepSeek's low-cost AI model had fanned investor skepticism over the billions of dollars earmarked by Big Tech for AI infrastructure, with many of the stocks still struggling to recoup the losses. Fears of a pullback in spending on Nvidia's priciest AI chips vaporized more than half a trillion dollars of its stock-market value in a single day last month, a record on Wall Street. And more recently, an analyst report that Microsoft had cut back on data-center leases reignited concerns over tech companies' spending. Nvidia's report was eyed as a bellwether for chip spending on generative AI - and it indicated demand remains strong, though its margin outlook ebbed from previous quarters. Nvidia's "datapoints are very positive for the wider AI ecosystem," said Ivana Delevska, chief investment officer of Spear Invest, which holds Nvidia shares in an actively managed exchange-traded fund. CEO Jensen Huang on Wednesday said demand for its latest Blackwell chip was "amazing" and that it had already pulled in around $11 billion in revenue related to the processor in the fourth quarter. The world's second-most valuable company has been the top beneficiary of an AI-driven spending spree over the past two years, with its shares gaining more than 400% in that period. Nvidia expects total revenue of $43 billion, plus or minus 2% for the first quarter, compared with analysts' average estimate of $41.78 billion, according to LSEG. The massive revenue surges and beats that had become synonymous with Nvidia, however, are becoming a thing of the past. The company's January-quarter revenue of $39.33 billion beat estimates by a margin of 3.4%, compared with a beat of more than 7% in the year-ago period. Nvidia also expects its margin to dip in the current quarter to 71% from 73.5% as it ramps up Blackwell production, though finance chief Colette Kress said the company would return to the mid-70% gross margin range later in the fiscal year. Of the 63 analysts covering the stock, 33 have a "strong buy" rating, as per LSEG data. The median price target stood at $175, implying that analysts expect a 33% increase from the stock's Wednesday close. Nvidia shares recently traded at about 29 times their forward earnings, down from more than 80 two years ago, as rising earnings pull down the premium at which the stock trades. Rival Advanced Micro Devices trades at about 22 times its forward earnings. "At around 30x forward earnings the valuation still doesn't look overcooked," said Derren Nathan, head of equity research at Hargreaves Lansdown.
Yahoo
27-02-2025
- Business
- Yahoo
Nvidia's upbeat forecast generates another selloff in shares
By Arsheeya Bajwa (Reuters) -Nvidia's upbeat quarterly forecast signaled that the AI boom is not over, but it failed to bring buyers back into the "Magnificent Seven" stocks that have dipped in the last three months. The stock lost about 3% to $127.10 in choppy trading, and other members of the group such as Microsoft and were lower on Thursday after Nvidia's earnings failed to inspire the kind of gains that became a hallmark of the AI rally through 2023 and 2024. Nvidia is viewed as a barometer of the health of AI spending and the two-year boom propelled its valuation to more than $3 trillion. Investors were hoping its results would restart a rally that has sputtered following the "Magnificent Seven" stocks' peaks in late 2024. In recent weeks, Chinese startup DeepSeek's low-cost AI model had fanned investor skepticism over the billions of dollars earmarked by Big Tech for AI infrastructure, with many of the stocks still struggling to recoup the losses. Fears of a pullback in spending on Nvidia's priciest AI chips vaporized more than half a trillion dollars of its stock-market value in a single day last month, a record on Wall Street. And more recently, an analyst report that Microsoft had cut back on data-center leases reignited concerns over tech companies' spending. Nvidia's report was eyed as a bellwether for chip spending on generative AI - and it indicated demand remains strong, though its margin outlook ebbed from previous quarters. Nvidia's "datapoints are very positive for the wider AI ecosystem," said Ivana Delevska, chief investment officer of Spear Invest, which holds Nvidia shares in an actively managed exchange-traded fund. CEO Jensen Huang on Wednesday said demand for its latest Blackwell chip was "amazing" and that it had already pulled in around $11 billion in revenue related to the processor in the fourth quarter. The world's second-most valuable company has been the top beneficiary of an AI-driven spending spree over the past two years, with its shares gaining more than 400% in that period. Nvidia expects total revenue of $43 billion, plus or minus 2% for the first quarter, compared with analysts' average estimate of $41.78 billion, according to LSEG. The massive revenue surges and beats that had become synonymous with Nvidia, however, are becoming a thing of the past. The company's January-quarter revenue of $39.33 billion beat estimates by a margin of 3.4%, compared with a beat of more than 7% in the year-ago period. Nvidia also expects its margin to dip in the current quarter to 71% from 73.5% as it ramps up Blackwell production, though finance chief Colette Kress said the company would return to the mid-70% gross margin range later in the fiscal year. Of the 63 analysts covering the stock, 33 have a "strong buy" rating, as per LSEG data. The median price target stood at $175, implying that analysts expect a 33% increase from the stock's Wednesday close. Nvidia shares recently traded at about 29 times their forward earnings, down from more than 80 two years ago, as rising earnings pull down the premium at which the stock trades. Rival Advanced Micro Devices trades at about 22 times its forward earnings. "At around 30x forward earnings the valuation still doesn't look overcooked," said Derren Nathan, head of equity research at Hargreaves Lansdown. Sign in to access your portfolio
Asharq Al-Awsat
24-02-2025
- Business
- Asharq Al-Awsat
Nvidia's Chip Demand Faces Scrutiny as DeepSeek Stirs Doubts on AI Spending
Demand for Nvidia's pricey artificial intelligence chips will be in focus when the company reports results on Wednesday as investors doubt the hefty spending on the technology after low-cost AI models from China's DeepSeek rattled the industry. The world's second most valuable company has been the top beneficiary of an AI-driven spending spree by big technology companies over the past two years. But claims that DeepSeek's AI models rival its Western counterparts at a fraction of the cost has led some investors to ask if Nvidia's cutting-edge chips are essential for gaining an edge in AI race. DeepSeek's sudden rise in January resulted in Nvidia losing $593 billion in market value, the largest one-day loss for any US company. Its shares were one of the best performers in 2023 and 2024, Reuters reported. "Investors have been very concerned about DeepSeek and the impact that it will have on demand," said Ivana Delevska, chief investment officer of Spear Invest, which holds Nvidia shares in an actively managed exchange-traded fund. "So if they (Nvidia) can show that they're still able to 'beat and raise', it would be pretty positive for the stock." Nvidia is expected to report a 72% surge in revenue to $38.05 billion in its fourth quarter, according to LSEG data, its slowest growth in seven quarters. It is likely to forecast a 60% jump in revenue for the first quarter ending April. In contrast, the company's revenue has seen five straight quarters of triple-digit growth until the quarter ended October. So far, demand for Nvidia's AI chips has not faltered. Big customers such as Microsoft and Meta have said they plan to plow ahead with their steep data-center spending. "The CapEx plans communicated by Meta, Microsoft, Google and Amazon ..... paint a very positive picture of the near-term demand backdrop for Nvidia," said John Belton, a portfolio manager at Gabelli Funds which holds Nvidia shares. Meanwhile, shipments of Nvidia's powerful Blackwell chips are expected to have accelerated in the fourth quarter, boosting its revenue but squeezing its margin due to the cost of ramping a new and complex chip. Analysts expect Nvidia's adjusted gross margin to shrink by more than three percentage points to 73.5% in the fourth quarter. With Blackwell series, Nvidia is shifting from selling individual chips to full AI computing systems such as the GB200 NVL72, which bundle GPUs, CPUs and networking equipment. That has further complicated a costly and time-consuming production ramp-up. Its contract manufacturer, Taiwan's TSMC, scrambled to expand capacity for advanced packaging - a complex process that glues together chips and is the main bottleneck in AI semiconductor supply chains. Blackwell's rollout was also hampered by design flaws and low chip yields — although Nvidia has since fixed the issues. In November, it said Blackwell would exceed initial revenue projections of several billion dollars in the fourth quarter. "Blackwell has been a complicated set of products to launch," said . "With the magnitude of out-performance that investors have become used to - Nvidia's delivery could be smaller this time around, just given some of these dynamics with the Blackwell launch."
Yahoo
24-02-2025
- Business
- Yahoo
Nvidia's chip demand faces scrutiny as DeepSeek stirs doubts on AI spending
By Arsheeya Bajwa (Reuters) - Demand for Nvidia's pricey artificial intelligence chips will be in focus when the company reports results on Wednesday as investors doubt the hefty spending on the technology after low-cost AI models from China's DeepSeek rattled the industry. The world's second most valuable company has been the top beneficiary of an AI-driven spending spree by big technology companies over the past two years. But claims that DeepSeek's AI models rival its Western counterparts at a fraction of the cost has led some investors to ask if Nvidia's cutting-edge chips are essential for gaining an edge in AI race. DeepSeek's sudden rise in January resulted in Nvidia losing $593 billion in market value, the largest one-day loss for any U.S. company. Its shares were one of the best performers in 2023 and 2024. "Investors have been very concerned about DeepSeek and the impact that it will have on demand," said Ivana Delevska, chief investment officer of Spear Invest, which holds Nvidia shares in an actively managed exchange-traded fund. "So if they (Nvidia) can show that they're still able to 'beat and raise', it would be pretty positive for the stock." Nvidia is expected to report a 72% surge in revenue to $38.05 billion in its fourth quarter, according to LSEG data, its slowest growth in seven quarters. It is likely to forecast a 60% jump in revenue for the first quarter ending April. In contrast, the company's revenue has seen five straight quarters of triple-digit growth until the quarter ended October. So far, demand for Nvidia's AI chips has not faltered. Big customers such as Microsoft and Meta have said they plan to plow ahead with their steep data-center spending. "The CapEx plans communicated by Meta, Microsoft, Google and Amazon ..... paint a very positive picture of the near-term demand backdrop for Nvidia," said John Belton, a portfolio manager at Gabelli Funds which holds Nvidia shares. Meanwhile, shipments of Nvidia's powerful Blackwell chips are expected to have accelerated in the fourth quarter, boosting its revenue but squeezing its margin due to the cost of ramping a new and complex chip. Analysts expect Nvidia's adjusted gross margin to shrink by more than three percentage points to 73.5% in the fourth quarter. With Blackwell series, Nvidia is shifting from selling individual chips to full AI computing systems such as the GB200 NVL72, which bundle GPUs, CPUs and networking equipment. That has further complicated a costly and time-consuming production ramp-up. Its contract manufacturer, Taiwan's TSMC, scrambled to expand capacity for advanced packaging - a complex process that glues together chips and is the main bottleneck in AI semiconductor supply chains. Blackwell's rollout was also hampered by design flaws and low chip yields — although Nvidia has since fixed the issues. In November, it said Blackwell would exceed initial revenue projections of several billion dollars in the fourth quarter. "Blackwell has been a complicated set of products to launch," said Gabelli's Belton. "With the magnitude of out-performance that investors have become used to - Nvidia's delivery could be smaller this time around, just given some of these dynamics with the Blackwell launch." Sign in to access your portfolio
