Latest news with #JensenHuang-led
Yahoo
21 hours ago
- Business
- Yahoo
The Zacks Analyst Blog Highlights NVIDIA, Microsoft, Taiwan Semiconductor Manufacturing Company, Alphabet and Amazon.com
Chicago, IL – June 6, 2025 – announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: NVIDIA Corp. NVDA, Microsoft Corp. MSFT, Taiwan Semiconductor Manufacturing Company Ltd. TSM, Alphabet Inc. GOOGL and Inc. AMZN. NVIDIA Corp. recently achieved a milestone, following double-digit revenue growth in the fiscal 2026 first quarter and a business boom. Let's explore this achievement and consider the NVDA stock's potential for investment. On Tuesday, NVIDIA surpassed Microsoft Corp. to regain the title of the world's most valuable company. NVIDIA's shares continued to rally on Wednesday, with the Jensen Huang-led company's market capitalization currently at $3.461 trillion. NVIDIA stock rose by over 50% from its low in April, leading to a market capitalization increase of over $1 trillion as investors showed renewed confidence. NVIDIA's shares have experienced periods of volatility this year due to investor concerns about the sustainability of artificial intelligence (AI) demand and the Trump administration's tariffs. However, better-than-expected first-quarter revenues, despite losing billions in sales due to the U.S. export ban on China, powered NVIDIA's shares. For the quarter, NVIDIA posted revenues of $44.1 billion, exceeding analysts' expectations of $43.3 billion and significantly more than $26 billion in the same period last year. NVIDIA successfully overcame supply-chain bottlenecks to deliver its cutting-edge Blackwell AI servers to big cloud customers, including Microsoft. NVIDIA's primary contract chip manufacturer, Taiwan Semiconductor Manufacturing Company Ltd., or TSMC, confirmed strong AI chip demand. All these developments also helped NVIDIA's shares trade in positive territory for the year, up 5.4% year to date. To enhance AI computing capabilities, cloud computing companies Alphabet Inc. and Inc., to name a few, are purchasing graphics processing units (GPUs), where NVIDIA has more than a 90% market share, according to IoT Analytics. This wide moat should continue to bolster growth. Moreover, the increase in popularity of the CUDA software platform among developers and the growing demand for the Blackwell chips due to their faster AI interface are expected to boost NVIDIA's growth. At the same time, NVIDIA stands to benefit from the AI revolution in autonomous robots and self-driving cars. Amazon employs NVIDIA's Isaac to train warehouse robots. NVIDIA's increasing value, rise in first-quarter revenues, growing AI data center spending, demand for its latest chip and GPU, and potential growth in automotive revenues should encourage stakeholders to stay invested in NVDA stock. Additionally, keeping NVDA stock due to its strong fundamentals makes sense as the company's net profit margin of 55.7% outperformed the Semiconductor - General industry's 49.5%. However, the U.S. government has restricted NVIDIA from selling its H20 chips to the Chinese market, which could impact the company's revenue growth vis-à-vis its stock performance in the future. Therefore, new entrants should wait and watch for any progress in this area before making a bet on NVDA stock. For now, NVIDIA has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here. Zacks Investment Research 800-767-3771 ext. 9339 support@ Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release. 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 Inc. (AMZN) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
CNBC
29-05-2025
- Business
- CNBC
Two bears remain on Nvidia after its strong results. What they are worried about
Although most analysts remain bullish on Nvidia following its latest strong earnings , other analysts are staying off to the sidelines when it comes to the chipmaker's stock. D.A. Davidson and HSBC reiterated their neutral and hold ratings, respectively, though they each raised their price targets on Nvidia shares. D.A. Davidson hiked its target to $135 from $120, which implies the stock won't do anything compared to Wednesday's close. HSBC increased its target by $5 to $125, implying the stock will fall more than 7% over the coming year. This comes as shares of the dominant artificial intelligence chipmaker rose more than 5% in early Thursday trading after net income and revenue in the latest quarter topped analyst estimates. Nvidia earned an adjusted 96 cents per share on revenue of $44.06 billion, while analysts surveyed by LSEG were looking for 93 cents per share on $43.31 billion in revenue. NVDA 1D mountain NVDA, 1-day The Jensen Huang-led company also called for about $45 billion in sales in the current quarter and said that its outlook would have been about $8 billion higher if it weren't for lost sales from an export restriction on its H20 chips to China. "It is our belief that the Street is under-accounting Chinese contribution to Nvidia revenue and that this topic represents the largest overhang on the stock, which will continue until we have an official position from the Trump administration that will give us resolution on the matter in one direction or the other," D.A. Davidson analyst Gil Luria wrote in a note in reaction to Nvidia's latest results. Nvidia estimates that the China accounts for about $50 billion in total addressable market , Luria noted. He added that the company is "handing the entire Chinese opportunity to homegrown manufactures such as Huawei" by not having a product that can serve what customers need. While HSBC analyst Frank Lee sees the potential for an AI graphics processing unit (GPU) comeback in China despite the recent H20 restriction, he's concerned that supply chain mismatches could continue to weigh on Nvidia even with an improving ramp up of its Blackwell chips. "We continue to believe that a growing supply chain mismatch between upstream AI GPU shipments and downstream ODM NVL server rack shipments is likely to increase into 2HFY26e despite improving downstream Blackwell rack yields," the analyst wrote in a Thursday note, referring to original design manufacturers and a specific Nvidia chip. "Hence, we still see potential for slower 2HFY26 GPU order momentum." Lee and Luria are two of only six analysts who are neutral on Nvidia, according to LSEG. Most are bullish, with 57 of 64 analysts on Wall Street rating Nvidia the equivalent of a buy.
New York Post
28-05-2025
- Automotive
- New York Post
Nvidia shares pop on strong AI demand despite hit from China chip restrictions
Nvidia reported strong demand for its AI chips and solid first-quarter results on Wednesday, providing some relief to anxious investors who have come to see the world's leading chip supplier as a bellwether for the overall tech industry. The Jensen Huang-led company reported earnings of 96 cents per share on sales of $44.06 billion for the quarter ending in April. Both numbers came in higher than Wall Street's expectations, with revenue up 69% compared to one year ago. according to data compiled by LSEG. However, President Trump's move to slap fresh export controls on Nvidia's shipments to China weighed on its guidance. Nvidia expects revenue of about $45 billion in the fiscal second quarter – with a loss of $8 billion in expected sales of H20 chips that would have been shipped to China. Advertisement 3 Nvidia CEO Jensen Huang touted strong demand for AI products. AFP via Getty Images Nonetheless, the stock jumped 4% in after-hours trading following the better-than-expected earnings, which were released after the closing bell. The restrictions on the sale of Nvidia's H20 chips to China, the only AI processors it could legally export to the country, prompted Nvidia to disclose in April that it expected a $5.5 billion charge — temporarily sending the markets into a tailspin. Advertisement On Wednesday, Nvidia said the actual first-quarter charge due to the H20 restrictions was $1 billion less than expected because it was able to reuse some materials. Huang put a positive spin on the results and described demand for Nvidia's AI infrastructure as 'incredibly strong.' 'Global demand for Nvidia's AI infrastructure is incredibly strong,' Huang said in a statement. 'AI inference token generation has surged tenfold in just one year, and as AI agents become mainstream, the demand for AI computing will accelerate.' 'Countries around the world are recognizing AI as essential infrastructure — just like electricity and the internet — and Nvidia stands at the center of this profound transformation,' Huang added. Advertisement 3 Nvidia warned of an $8 billion hit from lost China sales in the second quarter. AFP via Getty Images Nvidia said it took a $4.5 billion charge on excess H20 inventory in the first quarter. The company said it would have sold $2.5 billion in additional chips if not for the restrictions. Nvidia's data center business was a bright spot for the quarter, with proceeds jumping 73% to $39.1 billion. Nvidia is at the forefront of the current AI boom, with Google, Microsoft, Meta, Amazon, OpenAI and Elon Musk's xAI among the firms that rely on its chips to power the increasingly complex large language models that underpin their AI tools. Advertisement 3 Huang put a positive spin on the results and described demand for Nvidia's AI infrastructure as 'incredibly strong.' REUTERS Microsoft, Amazon, Meta and Google alone are expected to spend a combined $345 billion this year as they pour resources into the AI race, according to Visible Alpha estimates.
Yahoo
28-05-2025
- Business
- Yahoo
'Full hit from China': Analysts are staying bullish on Nvidia ahead of earnings, but tariffs loom large
Nvidia will deliver its first-quarter earnings report after the closing bell on Wednesday. Wall Street is upbeat on the premier AI chip maker, but is cautious on guidance. Analysts see a potential hit from tariffs, with activity in China in focus for analysts. Investors are gearing up for Nvidia to report earnings for the first quarter this week, with questions hanging over the chip maker related to the impact of tariffs and its business in China. The Jensen Huang-led firm will report financial results for the first three months of the year after the closing bell on Wednesday. Analysts expect the chip giant to report $43.2 billion in revenue and earnings per share of $0.75 The outlook for Nvidia's earnings on Wall Street is generally upbeat while uncertainty is brewing for the latter part of this year, particularly as tariffs and trade policy restrictions hang in the balance. Nvidia recently warned of a $5.5 billion hit from trade restrictions after the Trump administration banned sales of its H20 chip in the nation. At a recent news conference in Taiwan, CEO Jensen Huang said the company's market share in China was around 50%, down from 95% four years ago. Here's what analysts see ahead for the mega-cap tech firm: Nvidia should post a "modest" sales beat in the first quarter, but analysts at Bank of America said the guidance for the second quarter could be "messy. " They pointed to the impact of tariffs on Nvidia's shipments from China. The bank estimated that Nvidia could see a $4 billion to $5 billion headwind on shipments from China in the second quarter. Sales guidance for the second quarter could be revised down to $41 billion, down from the $46 billion consensus estimate. Nvidia could also lower its guidance on returns related to its partnership with GM, analysts said. They also pointed to the firm's recent $5.5 billion hit from export controls. Nvidia's total sales for the 2026 fiscal year could come in around 6% below consensus, while earnings could come in around 10% below consensus, BofA estimated. "Despite these near-term headwinds, we maintain Buy on NVDA, a top sector pick given its unique leverage to the global AI deployment cycle and possibility for China sales recovery on new redesigned/compliant products later in the year," analysts wrote. The bank has a price target of $160 a share, implying 18% upside from current levels. Morgan Stanley said it is eyeing challenges ahead for Nvidia, though the company remains its "top pick" in the semiconductor industry. Analysts recently cut their estimates after Nvidia was banned from selling its H20 chips in China. The restrictions will likely hold back revenues for the quarter, even as Nvidia saw "significant improvements" in shipments for its GB200 chip in April, the bank wrote in a recent note. "With all that said, we would continue to keep near term expectations in check," analysts wrote. The bank has an"overweight" rating on the stock and a $160 price target, implying 18% upside from current levels. Piper Sandler said it expects Nvidia to miss on revenue for the first quarter. That's due to uncertainties related to the US economy, tariffs, and the ban on its H20 chip in China. "All in all, we think that NVDA is poised to be flat to down into the print this week," analysts wrote. Still, the firm sees Nvidia benefiting from a strong second half of the year. That's due to strong capital expenditures from other tech firms and an improving macroeconomic backdrop. Nvidia's recent deal with a Saudi Arabian tech firm could also provide a tailwind in the second half, analysts said. "We advise investors to weather the uncertainty and stay long the stock as this is likely largely the last wave of negative news for NVDA this year." The firm reiterated its "overweight" rating on Nvidia and issued a $150 price target, implying 11% upside from current levels. Restrictions on chip sales in China will likely remain an "overhang" on Nvidia until new rules are implemented, analysts at DA Davidson wrote. New restrictions on chips sold in China could also come "any day," they added, despite the Trump administration recently rolling back Biden's AI diffusion rule. "Core Hyperscalers" — firms like Microsoft and Amazon that make up nearly half of Nvidia's business — also look like they're starting to stabilize their demand for Nvidia products. Demand from Nvidia's other customers, like neocloud firms, looks like it could hinge on debt dynamics at the individual companies, as well as new regulations imposed on chip sales in China. The firm reiterated its "neutral" rating on the stock and issued a $120 price target, which they said was dependent on factors like how regulation in China will shake out and if some of Nvidia's neocloud customers face borrowing challenges. The price target implies 11% downside from the current levels. While earnings for Nvidia should be "fine" for the first quarter, guidance will likely be lowered in the second quarter to account for a hit to the company's revenue in China, analysts estimated. "With regard to the F2Q26 we are slightly lowering estimates to account for a full hit from China," the firm wrote in a note this month. Still, demand for Nvidia's products looks like it will remain on a solid trajectory in the coming years, the firm said, pointing to Nvidia's recent Saudi Arabia deal. "Given speculation of a US/China trade deal and news that Nvidia expects to re-enter this $50B+ market with a less performant chip, it likely only gets better from here," analysts wrote in a note. "While the near-term brings uncertainties, we are confident that we will have more clarity on rules soon," they added. The research firm reiterated its "buy" rating on the stock and issued a price target of $150 a share, implying 11% upside from current levels. Angelo Zino, a senior equity strategist at CFRA Research, said the outlook for Nvidia had "considerably improved" in recent weeks, pointing to progress between the US and China in securing a framework trade deal and the US getting rid of its AI diffusion rule, which would have imposed restrictions on Nvidia's chip sales to China. Nvidia's recent Saudi Arabia deal also gives the company "strategic importance" in the US's trade negotiations with other countries, Zino wrote in a note to clients. Mega-cap tech firms also look poised to keep spending on AI. Google, Amazon, Meta, and other tech giants have said they would increase their capital expenditures in 2025, largely to invest in AI and data centers. "We believe NVDA's content growth story in data centers will extend through at least 2027, supported by its product pipeline," Zino wrote. "While quarterly variability is a risk, we view any pullbacks as enhanced buying opportunities given the better policy backdrop/customer visibility," he added. Read the original article on Business Insider Sign in to access your portfolio
Yahoo
27-05-2025
- Business
- Yahoo
'Full hit from China': Analysts are staying bullish on Nvidia ahead of earnings, but tariffs loom large
Nvidia will deliver its first-quarter earnings report after the closing bell on Wednesday. Wall Street is upbeat on the premier AI chip maker, but is cautious on guidance. Analysts see a potential hit from tariffs, with activity in China in focus for analysts. Investors are gearing up for Nvidia to report earnings for the first quarter this week, with questions hanging over the chip maker related to the impact of tariffs and its business in China. The Jensen Huang-led firm will report financial results for the first three months of the year after the closing bell on Wednesday. Analysts expect the chip giant to report $43.2 billion in revenue and earnings per share of $0.75 The outlook for Nvidia's earnings on Wall Street is generally upbeat while uncertainty is brewing for the latter part of this year, particularly as tariffs and trade policy restrictions hang in the balance. Nvidia recently warned of a $5.5 billion hit from trade restrictions after the Trump administration banned sales of its H20 chip in the nation. At a recent news conference in Taiwan, CEO Jensen Huang said the company's market share in China was around 50%, down from 95% four years ago. Here's what analysts see ahead for the mega-cap tech firm: Nvidia should post a "modest" sales beat in the first quarter, but analysts at Bank of America said the guidance for the second quarter could be "messy. " They pointed to the impact of tariffs on Nvidia's shipments from China. The bank estimated that Nvidia could see a $4 billion to $5 billion headwind on shipments from China in the second quarter. Sales guidance for the second quarter could be revised down to $41 billion, down from the $46 billion consensus estimate. Nvidia could also lower its guidance on returns related to its partnership with GM, analysts said. They also pointed to the firm's recent $5.5 billion hit from export controls. Nvidia's total sales for the 2026 fiscal year could come in around 6% below consensus, while earnings could come in around 10% below consensus, BofA estimated. "Despite these near-term headwinds, we maintain Buy on NVDA, a top sector pick given its unique leverage to the global AI deployment cycle and possibility for China sales recovery on new redesigned/compliant products later in the year," analysts wrote. The bank has a price target of $160 a share, implying 18% upside from current levels. Morgan Stanley said it is eyeing challenges ahead for Nvidia, though the company remains its "top pick" in the semiconductor industry. Analysts recently cut their estimates after Nvidia was banned from selling its H20 chips in China. The restrictions will likely hold back revenues for the quarter, even as Nvidia saw "significant improvements" in shipments for its GB200 chip in April, the bank wrote in a recent note. "With all that said, we would continue to keep near term expectations in check," analysts wrote. The bank has an"overweight" rating on the stock and a $160 price target, implying 18% upside from current levels. Piper Sandler said it expects Nvidia to miss on revenue for the first quarter. That's due to uncertainties related to the US economy, tariffs, and the ban on its H20 chip in China. "All in all, we think that NVDA is poised to be flat to down into the print this week," analysts wrote. Still, the firm sees Nvidia benefiting from a strong second half of the year. That's due to strong capital expenditures from other tech firms and an improving macroeconomic backdrop. Nvidia's recent deal with a Saudi Arabian tech firm could also provide a tailwind in the second half, analysts said. "We advise investors to weather the uncertainty and stay long the stock as this is likely largely the last wave of negative news for NVDA this year." The firm reiterated its "overweight" rating on Nvidia and issued a $150 price target, implying 11% upside from current levels. Restrictions on chip sales in China will likely remain an "overhang" on Nvidia until new rules are implemented, analysts at DA Davidson wrote. New restrictions on chips sold in China could also come "any day," they added, despite the Trump administration recently rolling back Biden's AI diffusion rule. "Core Hyperscalers" — firms like Microsoft and Amazon that make up nearly half of Nvidia's business — also look like they're starting to stabilize their demand for Nvidia products. Demand from Nvidia's other customers, like neocloud firms, looks like it could hinge on debt dynamics at the individual companies, as well as new regulations imposed on chip sales in China. The firm reiterated its "neutral" rating on the stock and issued a $120 price target, which they said was dependent on factors like how regulation in China will shake out and if some of Nvidia's neocloud customers face borrowing challenges. The price target implies 11% downside from the current levels. While earnings for Nvidia should be "fine" for the first quarter, guidance will likely be lowered in the second quarter to account for a hit to the company's revenue in China, analysts estimated. "With regard to the F2Q26 we are slightly lowering estimates to account for a full hit from China," the firm wrote in a note this month. Still, demand for Nvidia's products looks like it will remain on a solid trajectory in the coming years, the firm said, pointing to Nvidia's recent Saudi Arabia deal. "Given speculation of a US/China trade deal and news that Nvidia expects to re-enter this $50B+ market with a less performant chip, it likely only gets better from here," analysts wrote in a note. "While the near-term brings uncertainties, we are confident that we will have more clarity on rules soon," they added. The research firm reiterated its "buy" rating on the stock and issued a price target of $150 a share, implying 11% upside from current levels. Angelo Zino, a senior equity strategist at CFRA Research, said the outlook for Nvidia had "considerably improved" in recent weeks, pointing to progress between the US and China in securing a framework trade deal and the US getting rid of its AI diffusion rule, which would have imposed restrictions on Nvidia's chip sales to China. Nvidia's recent Saudi Arabia deal also gives the company "strategic importance" in the US's trade negotiations with other countries, Zino wrote in a note to clients. Mega-cap tech firms also look poised to keep spending on AI. Google, Amazon, Meta, and other tech giants have said they would increase their capital expenditures in 2025, largely to invest in AI and data centers. "We believe NVDA's content growth story in data centers will extend through at least 2027, supported by its product pipeline," Zino wrote. "While quarterly variability is a risk, we view any pullbacks as enhanced buying opportunities given the better policy backdrop/customer visibility," he added. Read the original article on Business Insider
