Latest news with #JensenHuang-led
Yahoo
31-07-2025
- Business
- Yahoo
Is This Under-the-Radar Chip Stock a Buy as It Lands Nvidia Partnership?
The artificial intelligence trade is in full force, as enterprises across a range of industries worldwide recognize that AI not only increases productivity, but also boosts profitability. And if there is one company that defines the AI megatrend, it is Nvidia (NVDA). The California-based chipmaker powers the AI revolution globally, and with a mammoth market cap of $4.3 trillion, it is the world's most valuable company now. Thus, any association with the Jensen Huang-led company is always looked upon as a positive development, rewarded by the market with a share price appreciation. That is exactly what happened with the shares of ON Semiconductor (ON), which witnessed a jump of about 3% in yesterday's pre-market trade following an announcement that it will be partnering with Nvidia to accelerate the adoption of 800-Volt Direct Current power solutions for next-generation artificial intelligence data centers. More News from Barchart Morgan Stanley Says Nvidia Has 'Exceptional' Strength. Should You Buy NVDA Stock Here? 2 Growth Stocks Wall Street Predicts Will Soar 74% to 159% Dear MicroStrategy Stock Fans, Mark Your Calendars for July 31 Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! About ON Semiconductor Founded in 1999 as a spinoff of Motorola's Semiconductor Components Group, ON Semiconductor designs and manufactures intelligent power and sensing technologies. Essentially, it builds chips and modules that help in power management, environment sensing, and automation enablement. It also licenses technology, provides design support, and offers long-term supply agreements. Valued at a market cap of $24.4 billion, ON stock is down 9% on a YTD basis. On Reports Decent Q1 Results ON's results for the most recent quarter were marked by a beat on both the revenue and earnings front, even after reporting a YOY decline. In fact, over the past nine quarters, ON's bottom line has missed expectations on just one occasion. In Q1 2025, ON's revenues were at $1.4 billion, which denoted a yearly fall of 22.4%. All revenue segments witnessed a drop from the previous year, with the PSG, AMG, and ISG segments reporting revenues of $645.1 million (-26% YOY), $566.4 million (-19% YOY), and $234.2 million (-20% YOY), respectively. Earnings for the quarter came in at $0.55 per share, lower than the prior year's figure of $1.08 but higher than the consensus estimate of $0.50 per share. Overall, over the past 10 years, ON's revenue and earnings have clocked compound annual growth rates (CAGRs) of 7.20% and 12.72%, respectively. Coming to cash flows, the picture here is a bit better for ON. Net cash from operating activities in Q1 2025 stood at $602.3 million, higher than the $498.7 million reported in the year-ago period. Free cash flow increased as well to $454.7 million from $264.8 million in Q1 2024. Overall, the company closed the quarter with a cash and equivalents balance of about $3 billion, exceeding its short-term debt levels of $496.6 million. For Q2 2025, ON is projecting revenues to be in the range of $1.4 billion to $1.5 billion and earnings to be between $0.48 and $0.58 per share. ON will report its Q2 figures on Aug. 4. Strategic Drivers (With Some Headwinds) ON's products quietly power a broad array of systems encompassing electric vehicles, smart industrial equipment, advanced computing platforms, and energy infrastructure. This spread across industries helps insulate it from the sharp swings seen in any single market. Notably, its strength lies in a few distinct areas. One of them is intelligent sensing, where ON is pushing forward with radar and lidar technologies for vehicles and factory automation. Another major segment is power management, chips that regulate and distribute energy efficiently. This business, in fact, brings in nearly half of ON's revenue. Then there's its analog and mixed-signal division, contributing around 37% to the top line. These chips serve critical roles in harsh environments, like auto systems or manufacturing setups, where reliability is non-negotiable. Overall, the focus is on long-cycle, high-dependability products that offer steady, recurring demand. Meanwhile, ON has also made a big bet on silicon carbide (SiC). These chips are built to handle higher voltages and temperatures than standard silicon, making them ideal for electric vehicles. As the EV space scales up, SiC adoption is picking up momentum. ON has already landed several notable design wins and is gaining traction with automakers, especially in the rapidly growing Chinese market. Then, the company's M&A moves also reflect strategic agility. Its $115 million acquisition of United Silicon Carbide subsidiary from Qorvo (QRVO) underscores how serious ON is about becoming a major player in this emerging field. That acquisition came not long after Qorvo itself had absorbed the same unit in 2021. However, headwinds remain. First up, the company's automotive segment, a key revenue contributor, saw sales dip in the last quarter, and leadership has hinted that more softness could follow. ON's manufacturing footprint also presents some geopolitical concerns, especially since much of it relies on Taiwan. Moreover, the specialized gases and materials it needs, many of which are sourced from China or Ukraine, could be at risk due to political instability or supply chain issues. Analyst Opinions on ON Stock Considering all of this, analysts have deemed ON stock a 'Moderate Buy,' with a mean target price of $57.52 that has already been surpassed. The high target price of $75 indicates upside potential of 29% from current levels. Out of 32 analysts covering the stock, 13 have a 'Strong Buy' rating, two have a 'Moderate Buy' rating, 16 have a 'Hold' rating, and one has a 'Strong Sell' rating. On the date of publication, Pathikrit Bose did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on 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
The Star
19-07-2025
- Business
- The Star
Nvidia is the first US$4 trillion company. Here are three things to know
Nvidia is already the world's most valuable company being one of the biggest beneficiaries of the global artificial intelligence boom. This week, the Santa Clara, California-based chip maker got another windfall. The Jensen Huang-led technology giant on Monday received approval from the US government to sell some of its AI chips in China, boosting Nvidia's stock price by 4% to US$170.70 (RM724) a share on Tuesday. Rival Advanced Micro Devices Inc has received similar assurances from the government. Nvidia's valuation has risen dramatically over the last two years since generative artificial intelligence became a mainstream topic. Last week, the 32-year-old company became the first publicly traded firm to reach US$4 trillion (RM17 trillion) in market capitalisation, beating tech titans including Microsoft and Apple. Though it's a largely symbolic moment, the milestone raised the stakes for competition in the AI space, which has attracted enormous amounts of capital from established tech players and start-up investors. "Once you reach that level of market cap, everybody and their brother wants to be you," said Rob Enderle, principal analyst with advisory services firm Enderle Group. "So that means that there's going to be a huge focus on creating competitive technologies to Nvidia because it looks incredibly lucrative." Nvidia has become a primary force in the growth of AI technology, as many applications are built with Nvidia's chips. Prior to the AI boom, Nvidia was mostly known for creating premium graphics cards that were attractive to gamers in rendering high-speed visuals. Most recently, the company is known for selling powerful chips that help chatbots such as OpenAI's ChatGPT and self-driving cars process information quickly enough to make the technology useful. Nvidia said in its 2025 annual report that it powers more than 75% of the supercomputers on the TOP500 list, which ranks the 500 most powerful computer systems in the world. What is powering Nvidia's rise? Founded in 1993, Nvidia has ridden many technology waves, including the crypto frenzy. But lately, Nvidia has seen tremendous growth thanks to worldwide investor interest – and competition for dominance – in artificial intelligence. Companies are eager to explore how AI can make processes more efficient and figure out complex problems. But getting the computing power behind AI can be expensive if companies are building hardware on their own. That's where Nvidia comes in. Nvidia's sales increased 69% to US$44.1bil (RM187.20bil) in its fiscal first quarter compared to a year ago. Net income was nearly US$18.8bil (RM80bil), up 26% from a year ago. In its fiscal year 2025, the company's revenue more than doubled to about US$130.5bi (RM554bil) compared to a year earlier, and net income increased 145% to nearly US$72.9bil (RM309bil) compared to fiscal year 2024. In the last 12 months, Nvidia's shares have increased more than 30%. Since five years ago, the stock has risen more than 16-fold. "It is clear AI is going to change the world and people want to get on that train, and Nvidia is the easiest entry point," wrote Berna Barshay, a partner at online investment platform Wall Street Beats, in an email. Over time, new winners and formidable rivals may emerge, Barshay said. "But during this foundational period of infrastructure creation, Nvidia has certainly been king." Other companies were slower to innovate in AI, including Apple and Intel, and underestimated how quickly AI technology would advance, analysts said. Who is Jensen Huang? Huang, a former microprocessor designer, discussed the idea behind Nvidia inside a Denny's in San Jose with fellow entrepreneurs Chris Malachowsky and Curtis Priem. The company's name is partly based on the Latin word "invidia" – which means envy, according to the Wall Street Journal . Many businesses are certainly jealous of Nvidia's success now, but in the 1990s, the company almost went out of business when its first chip, NV1, failed, according to media reports. Huang has said in public comments, including commencement speeches, that adversity can help people become better leaders. Born in Tainan, Taiwan, in 1963, the onetime Denny's dishwasher has become one of the industry's most recognisable names, on par with Apple chief Tim Cook and Meta's Mark Zuckerberg. Thousands of people watch Huang's keynote at Nvidia's developer conference, as his vision could provide a road map for companies eager to expand investments in AI. Some analysts regularly refer to him as the "godfather of AI." What challenges lie ahead? The biggest challenges facing Nvidia are trade wars and competition, analysts say. Tariffs in the semiconductor industry could hurt companies like Nvidia, which manufacture and sell countless chips abroad. The company said in its annual report that 53% of its revenue in its 2025 fiscal year came from outside the US. The company said that worldwide geopolitical tensions and conflicts in countries like China, Hong Kong, Israel, Korea and Taiwan, where the manufacturing of its product components and final assembly are concentrated, could disrupt its operations, product demand and profitability. Nvidia has worked with its production partners to increase US manufacturing of its chips. Several years ago, the US restricted Nvidia's sales of its chips in China due to concerns that its AI technology could be used to help the Chinese military. Huang has said that since the US government could choose to apply restrictions, he didn't think policymakers needed to be concerned about that and warned that allowing Nvidia to lose market share in China would cede a major advantage to Chinese tech company Huawei, according to Bloomberg. While many analysts say Nvidia has a significant lead on competitors, it is possible over time they could catch up. OpenAI, which uses Nvidia products for ChatGPT, is developing its own chip design, according to Reuters. There's also the question of whether the power grid is robust enough to support the infrastructure needs of the fast-growing technology, which could slow down not just Nvidia but the larger AI ecosystem. Despite the challenges, Thomas Monteiro, senior analyst at is bullish on Nvidia, saying it is possible that the company could reach US$5 trillion (RM21 trillion) in market cap during the next 18 months. "The world's still catching up and the thing is, it's going to take years for them to catch up," he said. "As long as we're looking at the AI revolution as a multidecade transformation, it's going to be really hard to take Nvidia out of that position." – Los Angeles Times/Tribune News Service
Los Angeles Times
16-07-2025
- Business
- Los Angeles Times
Nvidia is the first $4-trillion company. Here are three things to know
SAN FRANCISCO — Nvidia is already the world's most valuable company being one of the biggest beneficiaries of the global artificial intelligence boom. This week, the Santa Clara-based chip maker got another windfall. The Jensen Huang-led technology giant on Monday received approval from the U.S. government to sell some of its AI chips in China, boosting Nvidia's stock price by 4% to $170.70 a share on Tuesday. Rival Advanced Micro Devices Inc. has received similar assurances from the government. Nvidia's valuation has risen dramatically over the last two years since generative artificial intelligence became a mainstream topic. Last week, the 32-year-old company became the first publicly traded firm to reach $4 trillion in market capitalization, beating tech titans including Microsoft and Apple. Though it's a largely symbolic moment, the milestone raised the stakes for competition in the AI space, which has attracted enormous amounts of capital from established tech players and start-up investors. 'Once you reach that level of market cap, everybody and their brother wants to be you,' said Rob Enderle, principal analyst with advisory services firm Enderle Group. 'So that means that there's going to be a huge focus on creating competitive technologies to Nvidia because it looks incredibly lucrative.' Nvidia has become a primary force in the growth of AI technology, as many applications are built with Nvidia's chips. Prior to the AI boom, Nvidia was mostly known for creating premium graphics cards that were attractive to gamers in rendering high-speed visuals. Most recently, the company is known for selling powerful chips that help chatbots such as OpenAI's ChatGPT and self-driving cars process information quickly enough to make the technology useful. Nvidia said in its 2025 annual report that it powers more than 75% of the supercomputers on the TOP500 list, which ranks the 500 most powerful computer systems in the world. Founded in 1993, Nvidia has ridden many technology waves, including the crypto frenzy. But lately, Nvidia has seen tremendous growth thanks to worldwide investor interest — and competition for dominance — in artificial intelligence. Companies are eager to explore how AI can make processes more efficient and figure out complex problems. But getting the computing power behind AI can be expensive if companies are building hardware on their own. That's where Nvidia comes in. Nvidia's sales increased 69% to $44.1 billion in its fiscal first quarter compared to a year ago. Net income was nearly $18.8 billion, up 26% from a year ago. In its fiscal year 2025, the company's revenue more than doubled to about $130.5 billion compared to a year earlier, and net income increased 145% to nearly $72.9 billion compared to fiscal year 2024. In the last 12 months, Nvidia's shares have increased more than 30%. Since five years ago, the stock has risen more than 16-fold. 'It is clear AI is going to change the world and people want to get on that train, and Nvidia is the easiest entry point,' wrote Berna Barshay, a partner at online investment platform Wall Street Beats, in an email. Over time, new winners and formidable rivals may emerge, Barshay said. 'But during this foundational period of infrastructure creation, Nvidia has certainly been king.' Other companies were slower to innovate in AI, including Apple and Intel, and underestimated how quickly AI technology would advance, analysts said. Huang, a former microprocessor designer, discussed the idea behind Nvidia inside a Denny's in San Jose with fellow entrepreneurs Chris Malachowsky and Curtis Priem. The company's name is partly based on the Latin word 'invidia' — which means envy, according to the Wall Street Journal. Many businesses are certainly jealous of Nvidia's success now, but in the 1990s, the company almost went out of business when its first chip, NV1, failed, according to media reports. Huang has said in public comments, including commencement speeches, that adversity can help people become better leaders. Born in Tainan, Taiwan, in 1963, the onetime Denny's dishwasher has become one of the industry's most recognizable names, on par with Apple chief Tim Cook and Meta's Mark Zuckerberg. Thousands of people watch Huang's keynote at Nvidia's developer conference, as his vision could provide a road map for companies eager to expand investments in AI. Some analysts regularly refer to him as the 'godfather of AI.' The biggest challenges facing Nvidia are trade wars and competition, analysts say. Tariffs in the semiconductor industry could hurt companies like Nvidia, which manufacture and sell countless chips abroad. The company said in its annual report that 53% of its revenue in its 2025 fiscal year came from outside the U.S. The company said that worldwide geopolitical tensions and conflicts in countries like China, Hong Kong, Israel, Korea and Taiwan, where the manufacturing of its product components and final assembly are concentrated, could disrupt its operations, product demand and profitability. Nvidia has worked with its production partners to increase U.S. manufacturing of its chips. Several years ago, the U.S. restricted Nvidia's sales of its chips in China due to concerns that its AI technology could be used to help the Chinese military. Huang has said that since the U.S. government could choose to apply restrictions, he didn't think policymakers needed to be concerned about that and warned that allowing Nvidia to lose market share in China would cede a major advantage to Chinese tech company Huawei, according to Bloomberg. While many analysts say Nvidia has a significant lead on competitors, it is possible over time they could catch up. OpenAI, which uses Nvidia products for ChatGPT, is developing its own chip design, according to Reuters. There's also the question of whether the power grid is robust enough to support the infrastructure needs of the fast-growing technology, which could slow down not just Nvidia but the larger AI ecosystem. Despite the challenges, Thomas Monteiro, senior analyst at is bullish on Nvidia, saying it is possible that the company could reach $5 trillion in market cap during the next 18 months. 'The world's still catching up and the thing is, it's going to take years for them to catch up,' he said. 'As long as we're looking at the AI revolution as a multidecade transformation, it's going to be really hard to take Nvidia out of that position.'
CNBC
15-07-2025
- Business
- CNBC
Analysts raise Nvidia price targets after Trump's China chip decision. One sees $5 trillion market cap ahead
Nvidia cleared a key hurdle that restricted the sale of its H20 chips to China, a move that gave some analysts on Wall Street room to raise their forecasts for the stock. The Jensen Huang-led company whose chips power artificial intelligence said earlier Tuesday that it hopes to soon resume shipping H20 general processing units to China after the U.S. lifted restrictions placed on their sale to Beijing in April. "The U.S. government has assured Nvidia that licenses will be granted, and Nvidia hopes to start deliveries soon," the company said in a Tuesday blog post . The statement helped lift an array of other semiconductor manufacturers as well. The news helped ignite a wave of optimism from analysts, with one going so far as to forecast that Nvidia could reach a $5 trillion market value, after only recently having achieved a $4 trillion capitalization for the first time. NVDA YTD mountain Nvidia stock in 2025. Shares have advanced almost 28% so far in 2025, while the S & P 500 has risen less than 7%, according to FactSet data. Here's the latest analyst commentary and forecasts on Nvidia. Melius Research raises price target to $235 per share Analyst Ben Reitzes said that Nvidia could be headed for a $5 trillion market cap, and said "getting back in China after a mid-April ban is a huge tailwind" for the company. Reitzes' forecast calls for more than 43% upside from Monday's $164.07 close. "The news not only means that Nvidia's revenues accelerate even more sequentially in the back half of FY26, but it also adds a huge tailwind to growth in F1H27 - making FY27 a much bigger growth year than the previous consensus of just 26%," the analyst said. "We wouldn't be surprised if all or most of the $8B run rate/quarter in lost China sales came back completely by F4Q26 given pent up demand and boosted FY27 overall revenue growth to 38% y/y after 59% growth in FY26." Oppenheimer hikes price target to $200 per share Analyst Rick Schafer's forecast implies about 22% upside for Nvidia stock. "We see several structural tailwinds driving sustained outsized top-line growth including generative AI, DC/AI accelerators and autonomous vehicles. We believe these factors justify its valuation," the analyst said. Bernstein reiterates outperform rating and $185 per share price target Analyst Stacy Rasgon's outlook implies nearly 13% upside for Nvidia stock. Rasgon said that while Nvidia's second-quarter results likely won't see the company ship enough chips to catch up on lost revenue, the chipmaker is likely to see benefits in the second half that ends next January. "Beyond the revenue/earnings recovery, we are glad to see NVDA able to compete at least somewhat in China as it limits potential for more structural risks," Rasgon wrote. "We always saw the H20 ban as unnecessary and, frankly, somewhat nonsensical as performance of the part is already low, and well below already-available Chinese alternatives; a ban would simply hand the AI market in China over to Huawei as well as encourage the growth of local ecosystem alternatives (with a risk that they filter out of China over time)." "[E]very ~$10B of recovered NVDA China revenues would drive roughly 25 cents in additional EPS," the analyst added. "Therefore, capturing an incremental $15-$20B in China revenue through the rest of the fiscal year would provide 40-50 cents in EPS upside for FY2026, all else being equal (10%+ or so accretion on current consensus?)." Evercore ISI reiterates Nvidia as top pick The firm's $190 per share price target calls for about 16% upside. Analyst Mark Lipacis forecast that Nvidia could see as much as $10 billion in near-term revenue if all the restrictions on H20 chip sales to China are removed. "Assuming 70-75% [gross margins] on $2.75bn of inventories would imply about $10bn in revenues anticipated from those written down inventories on hand, but since the product was written down, that would suggest much higher gross margins on that $10bn of revenues," the analyst said. Citigroup cautiously optimistic Analyst Atif Malik's also has a $190 per share price target on Nvidia. "We believe investors should take a 'wait and see' approach before adding China contribution back to their models," the analyst said. "That said, China is an important market for Nvidia in gaming and networking and it helps to sell some compute chips."
Time of India
15-07-2025
- Business
- Time of India
Nvidia to resume H20 chip sales to China, CEO Jensen Huang says civil AI models should run on American tech stack
Jensen Huang-led chipmaker Nvidia has announced plans to resume sales of its H20 artificial intelligence accelerator to China. According to a Bloomberg report, the development comes after assurance from the US government that such shipments will be approved, a deviation from the Trump administration's previous stance. Nvidia has shared a blog post where the company revealed that CEO Jensen Huang met with President Trump and US policymakers last month, 'reaffirming NVIDIA's support for the Administration's effort to create jobs, strengthen domestic AI infrastructure and onshore manufacturing, and ensure that America leads in AI worldwide.' The chip maker further stated that it has filed 'applications to sell the NVIDIA H20 GPU again' adding 'The US government has assured NVIDIA that licenses will be granted, and NVIDIA hopes to start deliveries soon.' 'General-purpose, open-source research and foundation models are the backbone of AI innovation,' Huang explained to reporters in D.C. 'We believe that every civil model should run best on the U.S. technology stack, encouraging nations worldwide to choose America.' The restart of H20 chip sales is an important step for NVIDIA's business in China. U.S. export rules have blocked chip companies from selling high-end AI chips to China, so NVIDIA had to create special versions for the Chinese market. CNBC's Mad Money host Jim Cramer reacted to the news on X, calling it 'so huge' that it might boost Nasdaq futures. Following the news, Nasdaq-100 futures went up by 12.50 points to 23,048.00, and the Dow Jones gained 88.14 points to reach 44,459.65 today. The Bloomberg report quoted Vey-Sern Ling, managing director at Union Bancaire Privee, who said 'Nvidia resuming the sale of H20 to China is obviously positive. Not just for the company but also the AI semiconductor supply chain, as well as China tech platforms that are building AI capabilities. This is also a good development for US-China relations.' Additionally, Huang also announced a new, fully compliant NVIDIA RTX PRO GPU that 'is ideal for digital twin AI for smart factories and logistics.' How AI gets smart: Unlocking LLMs AI Masterclass for Students. Upskill Young Ones Today!– Join Now
