Latest news with #Ives
Yahoo
3 days ago
- Business
- Yahoo
Nvidia Wins Praise as Analysts Cheer 'Very Bullish' AI Guidance
May 29 Nvidia's (NASDAQ:NVDA) upbeat quarterly results and guidance drew positive reactions from analysts on Wednesday, who pointed to rising global demand for AI chips despite headwinds from China. Wedbush's Dan Ives described the performance as robust and said demand signals remain strong, even with export restrictions to China. Ives noted recent deals in the Middle East, including from Saudi Arabia and the UAE, as signs of growing interest from governments in AI infrastructure. Warning! GuruFocus has detected 4 Warning Signs with NVDA. Morgan Stanley's Joseph Moore said Nvidia's report helped ease concerns over slowing momentum, especially with signs of growth in all markets except China. He raised his price target to $170 from $160 and reaffirmed an Overweight rating. Jefferies analyst Blayne Curtis said earlier worries about supply mismatches have faded, with hyperscalers now deploying Nvidia's NVL72 systems at scale. He added that networking and gaming segments showed healthy recovery. Bank of America's Vivek Arya lifted his price target to $180 and said Nvidia's earnings potential could reach $10 per share as sovereign demand picks up. J.P. Morgan's Harlan Sur said the results reinforce Nvidia's position as a leader in the AI chip market. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Nvidia earnings live: Nvidia beats on Q1 revenue, sees $8 billion impact from China export rules
Nvidia (NVDA) has become the poster child for the AI boom that kicked off in late 2022 reported mixed first quarter results after the close on Wednesday. The AI hardware giant reported revenue of $44.1 billion for the quarter, topping analyst estimates of $43.3 billion, according to data compiled by Bloomberg. Nvidia reported $26 billion in the same period last year. Adjusted earnings per share, excluding the charge for the H20 chips, were $0.96, beating estimates for $0.93 and surpassing earnings per share of $0.61 last year. Data center revenue fell slightly short of estimates, coming in at $39.1 billion versus $39.2 billion estimated and $22.5 billion last year. The company also called out an $8 billion revenue hit related to China export rules in the second quarter. In an interview last week, Nvidia CEO Jensen Huang said the company had lost $15 billion in sales as a result of these rules. "The $50 billion China market is effectively closed to US industry," Nvidia CEO Jensen Huang said. "The H20 export ban ended our Hopper data center business in China. We cannot reduce Hopper further to comply." "We are exploring limited ways to compete, but Hopper is no longer an option," Huang continued. "China's AI moves on with or without US chips." Nvidia stock popped over 4% in after-hours trading. You can listen to a replay of the earnings call here. The company's results have been powered by chip investments from some of its Big Tech peers, including Microsoft (MSFT), Amazon (AMZN), and Meta Platforms (META). Here's the latest: Nvidia's post-earnings call with investors was highly focused on the chipmaker's billions in lost revenue from Trump's ban on its chip exports to China. Nvidia has made specialized chips called H20 — based on the company's prior-generation Hopper AI graphics processing units (GPUs) — for export to China to comply with ever-tightening US export controls. Huang said the company will "see if we can come up with interesting products that could continue to serve the Chinese market" but said "we don't have anything at the moment." The China market accounted for a smaller share of Nvidia's revenue in the first quarter than the prior two periods — 12.5% for the three months that ended on April 27, compared with roughly 14% and 15% in the prior two quarters, respectively. Read more about Nvidia's hit from the Trump administration's new export ban here. Nvidia's earnings call just wrapped up, and the stock remains solidly higher. Shares are up over 4% just after 6 p.m. ET. We have some early reaction to Nvidia's report from one of Wall Street's biggest tech bulls, Wedbush analyst Dan Ives. In a note titled, in part, "The Godfather of AI Delivers Again," Ives called the quarter "very robust" despite clear headwinds from US curbs on its China sales. The report should be "music to the ears of tech bulls listening to this conference call," Ives wrote. Ives also highlighted recent Middle East deals as a growth catalyst despite the China headwinds. "There is one chip in the world fueling the AI Revolution and it's Nvidia. ... That narrative is clear from these results and the positive commentary from Jensen," he said. While Nvidia executives lamented lost revenue from China in the quarter, Nvidia CEO Jensen Huang offered support for President Trump's aim of building manufacturing capacity in the US. "In Houston, we're partnering with Foxconn to construct a million-square-foot factory to build AI supercomputers," he said. "Wistron is building a similar plant in Fort Worth, Texas. To encourage and support these investments, we've made substantial, long-term purchase commitments, a deep investment in America's AI manufacturing future." "Our goal, from chip to supercomputer, built in America within a year." Nvidia CEO Jensen Huang remarked on the Trump administration's ban on a less powerful version of its Hopper chips for China during a call with analysts following its first quarter earnings results: Listen live to the Nvidia earnings call here. The earnings call has begun, and Nvidia CFO Colette Kress noted that Big Tech companies continue to ramp up data center spending. "Major hyperscalers are each deploying nearly ... 72,000 Blackwell GPUs per week, and are on track to clear ramp output this quarter," Kress said. "Microsoft, for example, has already deployed tens of thousands of Blackwell GPUs and is expected to ramp to hundreds of thousands of GB200s with OpenAI as one of its key customers." Listen live to the Nvidia earnings call here Nvidia's (NVDA) latest quarterly earnings — which as a whole topped Wall Street's estimates — showed the company expects to see $8 billion in lost revenue from the Trump administration's ban on sales of its H20 AI chips to China in the second quarter (which ends in late July). That's on top of the $2.5 billion of revenue from the H20 ban the chipmaker said it lost in the first quarter (which ended April 27). That means Nvidia is set to lose $10.5 billion in revenue due to the ban in the first and second quarters of its 2026 fiscal year alone. The Trump administration effectively banned sales of Nvidia's chips to China in early April, weeks before the end of its first quarter. Nvidia's sales to China (including Hong Kong) during the period totaled $5.5 billion, less than the $6.2 billion expected, according to Bloomberg data. That means China accounted for more than 12% of the company's total revenue. Nvidia also said it took a $4.5 billion charge due to a write-down in inventory (chips it produced but now can't sell) in the first quarter due to the new export rules — less than the $5.5 billion hit expected. "We are still evaluating our limited options to supply data center GPU products compliant with the US government's revised export control rules," said CFO Colette Kress. "Losing access to the China AI accelerator market, which we believe will grow to nearly $50 billion, would have a material adverse impact on our business going forward, and benefit our foreign competitors in China and worldwide." Singapore was once again the second-largest market for Nvidia, which gets over half of its revenue (53%) from abroad. Revenue from the region was roughly $9 billion. Notably, Singapore has been a source of chip smuggling to China. Listen live to the Nvidia earnings call here. Hyperscalers, including Microsoft (MSFT), Amazon (AMZN), and Meta Platforms (META), continued to power Nvidia's results. "We saw our Blackwell architecture ramp expand to all customer categories, while large cloud service providers remained our largest at just under 50% of Data Center revenue," the company reported in its quarterly filing. Shares of Nvidia's "Magnificent Seven" Big Tech peers — Apple (AAPL), Alphabet (GOOGL, GOOG), Microsoft (MSFT), Amazon (AMZN), Meta (META), and Tesla (TSLA) — didn't swing significantly after Nvidia's earnings. Other than Nvidia, Tesla led after-hours gains in the tech stock complex, rising 1.3%, while Apple was roughly flat. The others were up less than 1%. Nvidia (NVDA) stock jumped more than 3%, as Wall Street saw strength in the chipmaker's quarter. 'I thought it was a really strong quarter, all things considered,' Benchmark Company managing director Cody Acree told Yahoo Finance (see video below). "Given all the issues with China and all of the concerns about slowing capital budgets, to see the company come in with an $8 billion loss for the Chinese revenue and still come within the marginal range of estimates, I think is a victory," Acree added. Nvidia reported record revenue of $44.1 billion in the first quarter. While that marks a 69% increase over the prior year, it pales in comparison to the 262% revenue growth the AI chip giant reported a year ago. Nvidia CEO Jensen Huang said Wednesday in the company's earnings release: Nvidia's first quarter results on Wednesday came in a bit shy of Wall Street estimates, with adjusted earnings per share and revenue in its data center business falling short of expectations. In the first quarter, Nvidia earned $0.96 per share on an adjusted basis, which excludes charges related to export controls and associated tax implications, with headline revenue coming in at $44.1 billion. Diluted earnings per share came in at $0.81. Wall Street expected the company to report adjusted earnings per share of $0.88 on revenue of $43.3 billion, according to estimates from Bloomberg. A year ago, Nvidia reported adjusted EPS of $0.61 on revenue of $26 billion. Nvidia's data center business — which captures spending on its AI chips — tallied revenue of $39.1 billion, just below the $39.22 billion forecasted by the Street. Shares of the company were up about 3% in extended trading in immediate reaction to the numbers. Nvidia (NVDA) stock has rallied hard in May, gaining 24% in the past month. That leaves many investors wondering if it's a good time to pile into the stock ahead of the chip giant's earnings report. We've pointed out here that Nvidia stock tends to swing 7% in either direction the day after it reports. My colleague Laura Bratton has also noted that Nvidia's earnings often surprise Wall Street. According to tastylive founder and CEO Tom Sosnoff, volatility in the stock is low, even heading into earnings, suggesting that "the expectations are for something rangebound to happen." Sosnoff outlined several key points investors should keep in mind when determining whether to invest in a popular name like Nvidia: Pros: "It's super liquid," Sosnoff said on Wealth. "It's got a very liquid derivatives marketplace. So you can do lots of different strategies and things like that." Sosnoff also pointed out that Nvidia remains a market leader. "It's the bluest of all blue chips right now," he said. Cons: A major con, according to Sosnoff, is that "it's a crowded trade. Nvidia is pretty fully priced." He added that "for the first time, we're not seeing any call skew in there, which means that the derivatives markets, which are pretty good at pricing upside expectations, are kind of mixed right now. They're saying, 'you know what, upside and downside, we have similar expectations.'" "So I think the con is that if Nvidia misses, there's pretty decent pot odds that the downside move could be greater than the upside move if they hit it," he explained. Yahoo Finance's Josh Schafer highlighted one chart that shows how Nvidia became the dominant chipmaker and one of the most valuable companies in the world, with a market capitalization of over $3 trillion: Check out more charts like this that show Nvidia's rise. Yahoo Finance's Laura Bratton reports: Read more here. The countdown to Nvidia's earnings has begun. Beyond the top and bottom line figures, which Wall Street expects to be solid, Yahoo Finance's Brian Sozzi and Brooke Sweeney have compiled three things that investors should watch out for: Read more here. Nvidia stock (NVDA) opened modestly higher ahead of its earnings report but fluctuated in early trading. At last check, shares were down 0.3%. While some volatility is expected, investors will be watching to see how Nvidia trades around earnings — and whether its "Magnificent Seven" tech peers and the broader market move in tandem, as AI is seen as an engine to the growth of the recent bull market. Nvidia's earnings will also create an important benchmark for other AI plays and stocks tied to the technology, such as utilities and companies involved in data center infrastructure. FT reports: Read more here. Reuters reports: Read more here. It's pretty commonplace to see any chart that has to do with Nvidia's (NVDA) business over the past several years looking like a hockey stick. From a more than 700% growth in the company's market and share price since the launch of ChatGPT in late November 2022, the charts are eye-catching. But in our Chart of the Day today, we wanted to highlight how the growth of Nvidia's actual products is just as astonishing. The AI chip leader uses a metric called "AI FLOPS," which stands for floating-point calculations per second. The company provided Yahoo Finance's Laura Bratton with a breakdown of how many FLOPS each of its GPUs over the past several years has been able to hit. Hopper, first launched in 2022, maxed out at 2,958 FLOPs. Nvidia's new Blackwell chip hits about 20,000 FLOPS. You don't have to understand the granular parts of AI computing, or even what FLOPS means, to see this chart and comprehend why Nvidia is winning the AI race by a landslide right now. The productivity of the product they're selling to end users has skyrocketed just like their stock price. Nvidia's post-earnings call with investors was highly focused on the chipmaker's billions in lost revenue from Trump's ban on its chip exports to China. Nvidia has made specialized chips called H20 — based on the company's prior-generation Hopper AI graphics processing units (GPUs) — for export to China to comply with ever-tightening US export controls. Huang said the company will "see if we can come up with interesting products that could continue to serve the Chinese market" but said "we don't have anything at the moment." The China market accounted for a smaller share of Nvidia's revenue in the first quarter than the prior two periods — 12.5% for the three months that ended on April 27, compared with roughly 14% and 15% in the prior two quarters, respectively. Read more about Nvidia's hit from the Trump administration's new export ban here. Nvidia's earnings call just wrapped up, and the stock remains solidly higher. Shares are up over 4% just after 6 p.m. ET. We have some early reaction to Nvidia's report from one of Wall Street's biggest tech bulls, Wedbush analyst Dan Ives. In a note titled, in part, "The Godfather of AI Delivers Again," Ives called the quarter "very robust" despite clear headwinds from US curbs on its China sales. The report should be "music to the ears of tech bulls listening to this conference call," Ives wrote. Ives also highlighted recent Middle East deals as a growth catalyst despite the China headwinds. "There is one chip in the world fueling the AI Revolution and it's Nvidia. ... That narrative is clear from these results and the positive commentary from Jensen," he said. While Nvidia executives lamented lost revenue from China in the quarter, Nvidia CEO Jensen Huang offered support for President Trump's aim of building manufacturing capacity in the US. "In Houston, we're partnering with Foxconn to construct a million-square-foot factory to build AI supercomputers," he said. "Wistron is building a similar plant in Fort Worth, Texas. To encourage and support these investments, we've made substantial, long-term purchase commitments, a deep investment in America's AI manufacturing future." "Our goal, from chip to supercomputer, built in America within a year." Nvidia CEO Jensen Huang remarked on the Trump administration's ban on a less powerful version of its Hopper chips for China during a call with analysts following its first quarter earnings results: Listen live to the Nvidia earnings call here. The earnings call has begun, and Nvidia CFO Colette Kress noted that Big Tech companies continue to ramp up data center spending. "Major hyperscalers are each deploying nearly ... 72,000 Blackwell GPUs per week, and are on track to clear ramp output this quarter," Kress said. "Microsoft, for example, has already deployed tens of thousands of Blackwell GPUs and is expected to ramp to hundreds of thousands of GB200s with OpenAI as one of its key customers." Listen live to the Nvidia earnings call here Nvidia's (NVDA) latest quarterly earnings — which as a whole topped Wall Street's estimates — showed the company expects to see $8 billion in lost revenue from the Trump administration's ban on sales of its H20 AI chips to China in the second quarter (which ends in late July). That's on top of the $2.5 billion of revenue from the H20 ban the chipmaker said it lost in the first quarter (which ended April 27). That means Nvidia is set to lose $10.5 billion in revenue due to the ban in the first and second quarters of its 2026 fiscal year alone. The Trump administration effectively banned sales of Nvidia's chips to China in early April, weeks before the end of its first quarter. Nvidia's sales to China (including Hong Kong) during the period totaled $5.5 billion, less than the $6.2 billion expected, according to Bloomberg data. That means China accounted for more than 12% of the company's total revenue. Nvidia also said it took a $4.5 billion charge due to a write-down in inventory (chips it produced but now can't sell) in the first quarter due to the new export rules — less than the $5.5 billion hit expected. "We are still evaluating our limited options to supply data center GPU products compliant with the US government's revised export control rules," said CFO Colette Kress. "Losing access to the China AI accelerator market, which we believe will grow to nearly $50 billion, would have a material adverse impact on our business going forward, and benefit our foreign competitors in China and worldwide." Singapore was once again the second-largest market for Nvidia, which gets over half of its revenue (53%) from abroad. Revenue from the region was roughly $9 billion. Notably, Singapore has been a source of chip smuggling to China. Listen live to the Nvidia earnings call here. Hyperscalers, including Microsoft (MSFT), Amazon (AMZN), and Meta Platforms (META), continued to power Nvidia's results. "We saw our Blackwell architecture ramp expand to all customer categories, while large cloud service providers remained our largest at just under 50% of Data Center revenue," the company reported in its quarterly filing. Shares of Nvidia's "Magnificent Seven" Big Tech peers — Apple (AAPL), Alphabet (GOOGL, GOOG), Microsoft (MSFT), Amazon (AMZN), Meta (META), and Tesla (TSLA) — didn't swing significantly after Nvidia's earnings. Other than Nvidia, Tesla led after-hours gains in the tech stock complex, rising 1.3%, while Apple was roughly flat. The others were up less than 1%. Nvidia (NVDA) stock jumped more than 3%, as Wall Street saw strength in the chipmaker's quarter. 'I thought it was a really strong quarter, all things considered,' Benchmark Company managing director Cody Acree told Yahoo Finance (see video below). "Given all the issues with China and all of the concerns about slowing capital budgets, to see the company come in with an $8 billion loss for the Chinese revenue and still come within the marginal range of estimates, I think is a victory," Acree added. Nvidia reported record revenue of $44.1 billion in the first quarter. While that marks a 69% increase over the prior year, it pales in comparison to the 262% revenue growth the AI chip giant reported a year ago. Nvidia CEO Jensen Huang said Wednesday in the company's earnings release: Nvidia's first quarter results on Wednesday came in a bit shy of Wall Street estimates, with adjusted earnings per share and revenue in its data center business falling short of expectations. In the first quarter, Nvidia earned $0.96 per share on an adjusted basis, which excludes charges related to export controls and associated tax implications, with headline revenue coming in at $44.1 billion. Diluted earnings per share came in at $0.81. Wall Street expected the company to report adjusted earnings per share of $0.88 on revenue of $43.3 billion, according to estimates from Bloomberg. A year ago, Nvidia reported adjusted EPS of $0.61 on revenue of $26 billion. Nvidia's data center business — which captures spending on its AI chips — tallied revenue of $39.1 billion, just below the $39.22 billion forecasted by the Street. Shares of the company were up about 3% in extended trading in immediate reaction to the numbers. Nvidia (NVDA) stock has rallied hard in May, gaining 24% in the past month. That leaves many investors wondering if it's a good time to pile into the stock ahead of the chip giant's earnings report. We've pointed out here that Nvidia stock tends to swing 7% in either direction the day after it reports. My colleague Laura Bratton has also noted that Nvidia's earnings often surprise Wall Street. According to tastylive founder and CEO Tom Sosnoff, volatility in the stock is low, even heading into earnings, suggesting that "the expectations are for something rangebound to happen." Sosnoff outlined several key points investors should keep in mind when determining whether to invest in a popular name like Nvidia: Pros: "It's super liquid," Sosnoff said on Wealth. "It's got a very liquid derivatives marketplace. So you can do lots of different strategies and things like that." Sosnoff also pointed out that Nvidia remains a market leader. "It's the bluest of all blue chips right now," he said. Cons: A major con, according to Sosnoff, is that "it's a crowded trade. Nvidia is pretty fully priced." He added that "for the first time, we're not seeing any call skew in there, which means that the derivatives markets, which are pretty good at pricing upside expectations, are kind of mixed right now. They're saying, 'you know what, upside and downside, we have similar expectations.'" "So I think the con is that if Nvidia misses, there's pretty decent pot odds that the downside move could be greater than the upside move if they hit it," he explained. Yahoo Finance's Josh Schafer highlighted one chart that shows how Nvidia became the dominant chipmaker and one of the most valuable companies in the world, with a market capitalization of over $3 trillion: Check out more charts like this that show Nvidia's rise. Yahoo Finance's Laura Bratton reports: Read more here. The countdown to Nvidia's earnings has begun. Beyond the top and bottom line figures, which Wall Street expects to be solid, Yahoo Finance's Brian Sozzi and Brooke Sweeney have compiled three things that investors should watch out for: Read more here. Nvidia stock (NVDA) opened modestly higher ahead of its earnings report but fluctuated in early trading. At last check, shares were down 0.3%. While some volatility is expected, investors will be watching to see how Nvidia trades around earnings — and whether its "Magnificent Seven" tech peers and the broader market move in tandem, as AI is seen as an engine to the growth of the recent bull market. Nvidia's earnings will also create an important benchmark for other AI plays and stocks tied to the technology, such as utilities and companies involved in data center infrastructure. FT reports: Read more here. Reuters reports: Read more here. It's pretty commonplace to see any chart that has to do with Nvidia's (NVDA) business over the past several years looking like a hockey stick. From a more than 700% growth in the company's market and share price since the launch of ChatGPT in late November 2022, the charts are eye-catching. But in our Chart of the Day today, we wanted to highlight how the growth of Nvidia's actual products is just as astonishing. The AI chip leader uses a metric called "AI FLOPS," which stands for floating-point calculations per second. The company provided Yahoo Finance's Laura Bratton with a breakdown of how many FLOPS each of its GPUs over the past several years has been able to hit. Hopper, first launched in 2022, maxed out at 2,958 FLOPs. Nvidia's new Blackwell chip hits about 20,000 FLOPS. You don't have to understand the granular parts of AI computing, or even what FLOPS means, to see this chart and comprehend why Nvidia is winning the AI race by a landslide right now. The productivity of the product they're selling to end users has skyrocketed just like their stock price.
Yahoo
4 days ago
- Business
- Yahoo
Nvidia beats on earnings again — even while it's locked out of China
Nvidia (NVDA) continues to soar beyond expectations — even if things are a little more complicated this time around. Its strong first-quarter headline numbers show that Nvidia's AI thesis is as strong as ever and that its margins remain elite, despite facing significant headwinds due to U.S. export restrictions on its H20 processors to China and other geopolitical concerns. After the bell on Wednesday, the $3.3 trillion chipmaker reported $44.1 billion in revenue for the fiscal first quarter, up 69% from the same period a year ago, and the company reported a $18.78 billion profit. Analysts had forecasted a revenue surge to $43.26 billion. The H20 restrictions led to a $4.5 billion write-down related to excess inventory and a $2.5 billion revenue shortfall, affecting the company's gross margins. Adjusted earnings per share came in at $0.81, ahead of Wall Street estimates of $0.75. Nvidia took a $4.5 billion charge related to exports of its H20 chips to China; without that charge and the related tax impact, first quarter non-GAAP diluted earnings per share would have been $0.96. Stock soared over 5% in after-hours trading. With demand for generative AI infrastructure still booming and competitors struggling to catch up, Nvidia's performance exceeded expectations. In a Tuesday note, Wedbush analysts led by Dan Ives said that Nvidia's earnings would likely be a 'bright green light' for the tech sector — especially companies heavily invested in the 'AI Revolution.' And it was. The company's Data Center division brought in an almost unreal $39.1 billion in the first quarter, up 10% from the previous quarter and up 73% from a year ago. That means Nvidia's fastest-growing segment is now responsible for nearly 89% of all revenue — a sign of how deeply embedded its chips are in the AI build-out. Analysts had expected this division to generate $21.27 billion in Q1 revenue. Looking ahead, Nvidia projects Q2 revenue around $43 billion, slightly below Q1 figures, with gross margins expected to remain in the low 70% range. In his note, Ives wrote that, over the past several years, Nvidia's set-up has been about by how much the company would beat Wall Street's expectations, but this quarter, the earnings were 'more about strong numbers and the ability to maintain guidance despite the China blockade. Investors are more laser focused on the medium term and long-term outlook.' Nvidia has long relied on the Chinese market for a sizable chunk of its revenue, but that has changed dramatically in the wake of tightening U.S. export controls and tariffs. To maintain its foothold, Nvidia is pursuing R&D efforts in Shanghai and developing China-specific downgraded chips that comply with current restrictions. The company is ground zero in the U.S.-China tech rivalry — its GPUs might just be the most valuable components in the AI arms race, and its position is increasingly shaped by policy, not just engineering. Nvidia has beat analysts' earnings expectations in 14 of the past 16 quarters. So can anything slow Nvidia down? Maybe. Competition is heating up. AMD (AMD) and Intel (INTC) are sharpening their AI chip offerings, while hyperscalers are continuing to invest in custom silicon. And export restrictions remain a geopolitical wild card. Still, as the first-quarter earnings show, Nvidia's moat is wide. Its software ecosystem, deep relationships with cloud providers, and product cadence make it more than just a chipmaker. It's the AI era's platform company. For the latest news, Facebook, Twitter and Instagram.
Yahoo
5 days ago
- Business
- Yahoo
Palantir Wins Big with $795M Army Deal, Wedbush Upgrades to 'Outperform'
May 27 - Palantir (NASDAQ:PLTR) won a $795 million contract modification from the U.S. Army for its Maven Smart System, boosting the total award to about $1.3 billion. The deal will run through May 2029, with funding and work sites set by individual orders. Wedbush analyst Daniel Ives sees the contract as a fresh catalyst for the big-data firm, moving his rating to Outperform with a $140 price target, about 13% above current levels. Ives noted that federal AI spending may accelerate under new defence priorities, positioning Palantir to benefit from a wave of government contracts. Ives also pointed to prospective work on the Golden Dome air and missile defence project, a Trump-era initiative budgeted at $175 billion over three years, with $25 billion proposed for 2026. He suggested that Palantir could play a key role if it secures part of that funding. As Palantir gears up for more government AI ventures, investors will be watching whether this latest Army award can translate into sustained revenue growth. Based on the one year price targets offered by 20 analysts, the average target price for Palantir Technologies Inc is $99.81 with a high estimate of $150.00 and a low estimate of $40.00. The average target implies a downside of -19.06% from the current price of $123.31. This article first appeared on GuruFocus.
Yahoo
5 days ago
- Business
- Yahoo
Veteran stock trader takes hard look at Nvidia ahead of earnings
Talk about waiting to exhale. As AI chipmaking T-Rex Nvidia gears up to post first-quarter results on May 28, the stock market is holding its collective breath. 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰💵 Nvidia has had a volatile year, what with the January announcement by Chinese AI company DeepSeek that it could develop large language models at lower costs than American AI models. DeepSeek took a deep bite out of Nvidia, which lost nearly $600 billion in market cap in a single day. The company's shares were also battered by President Donald Trump's ever-changing tariff program. Chris Versace, lead portfolio manager for TheStreet Pro Portfolio, said in a May 27 video that "despite the stock's trials and tribulations of the last several weeks, let's say it's still been a very strong position for us." "However, it is also, as we know, one of the most heavily traded stocks in both the S&P 500 and the Nasdaq 100," he said. "What this means very simply is that its earnings report this week and the company's guidance will likely move the market." Wedbush analyst Dan Ives said didn't hold back when he discussed the power of Nvidia's results. "There is no company in the world more important to the markets and global investor sentiment than Nvidia with the Street laser-focused tomorrow after the bell when we hear April results/guidance from the Godfather of AI Jensen," he said, referring to CEO Jensen month, Nvidia revealed it could no longer export its H20 chips to Chinese customers and announced that it would take a $5.5 billion charge as a result. The H20 is the most cutting-edge AI chip U.S. companies can legally sell to China, which accounted for 13% of Nvidia's sales in the past financial year. The White House reportedly put the plan on hold after Huang attended a $1 million-a-head dinner at Trump's Mar-a-Lago. But later reports revealed that the Trump administration had told Nvidia that the H20 chips would be subject to licensing for China. "We believe overall AI chip demand around Blackwell continues to significantly outstrip supply," said Ives, referring to Nvidia's GPU architecture designed for AI. "Although the big question for tomorrow is what type of dent has the Trump H20/China business played in Nvidia's global demand and outlook going forward," he added. Ives, who has a $175 price target on the company's shares and an outperform rating, said China business and demand were robust before the Nvidia-Trump chip blockade began. "In our view the US Big Tech stalwarts are on pace to likely exceed the $325 billion of cap-ex this year with Nvidia playing a major foundational role in the AI build-outs globally," he said. Nvidia is preparing to launch a lower-cost AI chip for the Chinese market, with mass production expected as early as June, according to Reuters. "We view Nvidia's results/guidance tomorrow as a clear positive catalyst and 'bright green light' for the broader tech sector and especially the AI Revolution names," Ives said. Ives said that the Middle East is a major factor adding to the global demand for Nvidia chips, following Trump's recent four-day visit to the region. Huang was one of several top tech executives who joined Trump, along with Tesla () CEO and top Trump contributor Elon Musk and Amazon () chief executive Andy Jassy."We believe the market opportunity in Saudi Arabia and UAE alone could over time add another $1 trillion to the broader global AI market in the coming years and this dynamic is not being priced into the market and tech names led by Nvidia," Ives said. Stephen Guilfoyle has been running Nvidia's numbers and he said that Wall Street doesn't seem sure how to respond to the upcoming earnings report. "Of the 40 or so sell-side analysts that cover Nvidia, six have increased their earnings estimates since the start of the quarter to be reported, while eight have decreased those estimates," said the veteran trader. "The rest? Guess some of them are probably confident. The rest may just be like deer in the headlights." Guilfoyle, whose career dates back to the floor of the New York Stock Exchange in the 1980s, said that Nvidia's decelerating year-over-year growth is not a negative." "This is simply the law of large numbers as this is now the eighth quarter to be reported since Nvidia simply shocked the world with that first AI-inspired quarterly release for its fiscal second quarter of 2023," he said. "The stock entered the week trading at 31-times 12 months' forward-looking earnings," Guilfoyle said. "This, in my opinion, is not expensive." Though the S&P 500 currently trades at 21 times, and the tech sector currently trades at 27 times, there is almost nowhere else where investors can find this kind of sustained growth, with numbers this large," he said. Microsoft () still trades at 33-times forward-looking earnings despite six consecutive quarters of sub 15% sales growth, he said. The company had no shorter-term debt on the books, Versace said, and Nvidia's current and quick ratios stood at 4.44 and 3.67, respectively, 'which is simply outstanding," said Guilfoyle, who has a $165 price target on Nvidia's stock trader takes hard look at Nvidia ahead of earnings first appeared on TheStreet on May 27, 2025 Sign in to access your portfolio
