Latest news with #JordanKlein
Bloomberg
8 hours ago
- Business
- Bloomberg
SoftBank's Founder Pitches $1 Trillion US AI Hub
Jordan Klein, Managing Director at Mizuho Securities USA, says Masayoshi Son's pitch for a $1 trillion AI and robotics hub in Arizona is a marketing ploy. He explains why he thinks that on 'Bloomberg Tech.' (Source: Bloomberg)
Yahoo
28-05-2025
- Business
- Yahoo
Nvidia (NVDA) Braces for China Hit as Q1 Earnings Near
Wall Street has cut earnings estimates for Nvidia (NVDA, Financials) just ahead of its fiscal first-quarter report, as the chipmaker faces pressure from a U.S. export ban on advanced AI chips to China. Analysts now expect adjusted earnings of $0.73 per share on $43.34 billion in revenue for the quarter ended April 27, down from $0.88 per share just a week earlier, according to FactSet. The company previously warned of a potential charge of up to $5.5 billion for H20 chips blocked from being sold in China, a key issue investors will scrutinize in the earnings report. But more attention is on Nvidia's fiscal second-quarter guidance. Mizuho's Jordan Klein said estimates could fall as low as the low $40 billion range, compared to the Street consensus of $45.92 billion, as the sales ban may shave $5 billion to $8 billion from quarterly revenue. Warning! GuruFocus has detected 4 Warning Signs with NVDA. To mitigate losses, Nvidia plans to begin producing a new, China-compliant AI chip in June using GDDR7 memory in place of restricted HBM technology, according to Reuters. Despite these challenges, shares rose 3.3% to $135.59 on Tuesday and are nearing a technical buy point of $137.40. Market watchers remain focused on demand for Nvidia's new Blackwell chips. Wedbush's Daniel Ives called the upcoming results pivotal for global investor sentiment, referring to CEO Jensen Huang as the Godfather of AI. Morgan Stanley's Joseph Moore cautioned that current consensus numbers may be stale, suggesting downside risk if the H20 ban impact hasn't been fully modeled in. Still, Piper Sandler's Harsh Kumar believes the selloff risk is limited, calling this the likely last wave of negative news for Nvidia this year. He remains optimistic on second-half growth, driven by increased spending from cloud providers and government AI projects. Investors will be watching Wednesday's report closely for updates on China exposure, new product ramp timelines, and second-quarter sales guidance. See insider activity on Nvidia: 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
11-04-2025
- Business
- Yahoo
Apple Leads Magnificent 7 Stocks Higher Friday to Cap Off Volatile Week
Apple (AAPL) shares surged Friday, leading other Magnificent Seven members higher amid a broader market rebound to cap off a wild week fueled by tariff-driven volatility. Apple shares jumped 4% to close at $198.15, posting gains for a week that included three losing sessions and the stock's best day since 1998. Still, it has yet to fully recover from the hit taken since President Trump's tariff announcement on April 2, on worries about escalating trade tensions with China, where Apple manufactures an estimated 90% of its products. The gains for Apple's stock Friday came amid growing optimism the iPhone maker could win an exemption from the Trump administration's tariffs. Mizuho analyst Jordan Klein reportedly told clients in a client note Friday that '90% of investors seem to believe Apple will get a tariff exemption,' pointing to the exemption Apple received in 2018 during President Trump's first term. CFRA Research analyst Angelo Zino said he now puts the odds of an Apple-specific exemption at 50%, up from 20%. Read the original article on Investopedia Sign in to access your portfolio
Yahoo
26-03-2025
- Business
- Yahoo
Is NVIDIA Corp. (NVDA) the Best Semiconductor Stock to Buy According to Billionaires?
We recently published a list of . In this article, we are going to take a look at where NVIDIA Corp. (NASDAQ:NVDA) stands against other best semiconductor stocks to buy according to billionaires. The global semiconductor market is poised for substantial growth, with research firm MarketsandMarkets estimating its value to reach $628 billion in 2024 and expand to $707 billion by 2025, reflecting a robust 12.5% growth rate. The firm, in their report, also highlights that this surge is driven by increasing demand for semiconductors in data centers, high-performance computing (HPC), and artificial intelligence (AI) applications. As AI adoption accelerates, semiconductors are cementing their role as the foundation of next-generation digital infrastructure. The rising needs of hyperscalers and cloud service providers, particularly in handling AI workloads, are expected to further drive semiconductor industry expansion. Further, MarketsandMarkets notes that the key growth drivers for the semiconductor sector in 2025 include high-bandwidth memory (HBM) that is crucial for AI accelerators and GPUs, AI servers that power deep learning and real-time analytics, and Gen-AI smartphones featuring advanced AI-integrated chips. However, the industry faces notable challenges as well, including supply chain disruptions and evolving regulatory frameworks that impact production costs, market access, and overall growth. The cyclical nature of the semiconductor industry and ongoing uncertainties, such as tariffs and trade policies, have been major discussion points among investors. Jordan Klein, Managing Director at Mizuho Securities, had addressed the industry's demand outlook in a CNBC interview, emphasizing that semiconductor stocks often anticipate market fundamentals six months in advance. While AI-driven companies like NVIDIA are experiencing strong demand, other segments, such as memory, PCs, and industrial chips, are not delivering significant earnings surprises. Meanwhile, investors are increasingly favoring sectors like software and fintech over semiconductors. Klein also raised concerns about a potential slowdown in 2025, suggesting that many investors are currently adopting a 'wait and see' approach rather than buying in expectation of near-term improvements. While AI-driven semiconductor companies are likely to maintain momentum, weaker segments may struggle to recover in the short term. So far, Klein's take seems to be playing out. The S&P Semiconductors Industry Index is down nearly 13% in 2025, significantly lagging the broader S&P 500, which has fallen about 3.5%. But there's a silver lining—historically, when semiconductor companies start cutting earnings estimates, their stock prices tend to rebound because those cuts are often already priced in. This could create buying opportunities for long-term investors. Despite short-term headwinds, the long-term outlook for semiconductors remains strong. AI, cloud computing, and HPC will continue to push demand for advanced chips, and while cyclical downturns and regulatory challenges may create volatility, they also open the door for investors to buy quality semiconductor stocks at lower valuations. Keeping an eye on earnings revisions and broader market trends could help investors find solid entry points in this ever-evolving industry. For this list, we first compiled a preliminary list of Semiconductors and Semiconductor Equipment & Materials stocks using a review of online screeners, ETFs and financial media reports. We then analysed Insider Monkey's database of billionaire holdings to determine the most favoured semiconductor stocks among those investors. We then ranked top 10 of these stocks in ascending order based on the number of billionaire investors holding positions in each company as of Q4 2024. Additionally, we also provide data to assess hedge fund sentiment surrounding these stocks, utilizing data from Insider Monkey's Q4 2024 hedge fund database to provide deeper insights into institutional investor are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A close-up of a colorful high-end graphics card being plugged in to a gaming Corp. (NASDAQ:NVDA) stands as a leading innovator in the design and production of graphics processing units (GPUs), system-on-a-chip (SoC) solutions, and AI-driven hardware and software. The company's GPUs are essential to high-performance computing, AI training, and inference, serving as the backbone of data center infrastructure worldwide. Its cutting-edge technology continues to drive advancements in artificial intelligence, deep learning, and data analytics, reinforcing the company's pivotal role in shaping next-generation computing. NVIDIA Corp. (NASDAQ:NVDA) hosted its GTC AI conference from March 17-21, leaving analysts optimistic about its growth outlook. The company unveiled a roadmap for its next three product generations, each offering significant performance improvements. It also projected substantial growth in Data Center revenue, estimating at least $450 billion by 2028, fueled by $1 trillion in Data Center capital expenditures, i.e. more than double the $200 billion expected in 2025. Buoyed by the same optimism, Mizuho Securities analyst Vijay Rakesh reaffirmed a Buy rating on the company with a $168 price target in a March 20 report, citing the company's strong market positioning and growth potential. The analyst noted that the company's GTC conference highlighted its leadership in AI hardware and software, along with a solid roadmap for expansion, particularly in data centers. Key product launches, including the Vera Rubin Ultra and Feynman, are expected to drive significant performance gains. Strong cloud orders and partnerships with major providers indicate robust revenue prospects, with orders projected to double by 2025. The analyst was further enthused by innovations like Spectrum-X and Quantum-X which reinforce NVIDIA's dominance in AI, enterprise solutions, and robotics, positioning it for sustained growth. Notably, we also featured NVIDIA Corp. (NASDAQ:NVDA) as one of our top picks in our articles on 'Growth at a Reasonable Price (GARP)' stocks and '20 Best Data Center stocks'. The full articles, published on March 10 and 13, respectively, can be accessed by clicking on the links. Overall, NVDA ranks 2nd on our list of best semiconductor stocks to buy according to billionaires. While we acknowledge the potential of NVDA to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and Disclosure: None. 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Yahoo
13-03-2025
- Business
- Yahoo
'Magnificent 7' stocks aren't the only high-flying tech names getting hit hardest in this sell-off
It's been a brutal month for stocks, with tech stocks leading markets lower, just as they led the rally in 2023 and 2024. And though the recent sell-off action has focused much attention on the so-called "Magnificent Seven" juggernauts, just one rung below these names is a crop of tech highfliers that have also experienced steep losses in recent weeks. Netflix (NFLX), AMD (AMD), Micron (MU), Dell (DELL), and Palantir (PLTR), among others, are some of the names that have been washed out in the midst of this latest market rout. And though some of these stocks caught a bid on Wednesday amid a tech rebound, some on Wall Street are warning recent volatility has contained an even more sinister picture underneath the stock market's surface. Recent price action has "really felt unwindy," Mizuho analyst Jordan Klein wrote in a note to clients on Friday. "Not like total panic or capitulation, but getting pretty close." Netflix stock has fallen about 15% from the 52-week highs it reached just one month ago, when the stock was trading above $1,000 a share. Klein called out "past retail and momentum thematic favorites" in the tech, media, and telecom space, including names like AppLovin (APP), Affirm (AFRM), Oklo (OKLO), and Reddit (RDDT). All have seen shares fall between 30% and 50% over the past month. Chipmakers like AMD and Micron, along with Super Micro (SMCI), Intel (INTC), and ON Semiconductor (ON) are all down at least 40% from their respective 52-week highs, according to data compiled by Yahoo Finance. Shares of Palantir, a previous momentum play on Wall Street, have plunged 30% from the closing record it reached on Feb. 19. Dell stock has also tumbled roughly 50% from its own 52-week peak. Of course, some of these names have also battled fundamental issues. Palantir often trades like a meme stock, and shares sold off last month over fears the US government will dramatically cut defense spending. Netflix's heavy content spend and possible engagement headwinds have been called out by analysts concerned over its valuation. And chip stocks have faced increased competition at home and abroad, with February's DeepSeek sell-off highlighting concerns over the health and longevity of the artificial intelligence trade at large. The Mag 7 players that drove two-year bull market gains — Nvidia (NVDA), Tesla (TSLA), Alphabet (GOOG, GOOGL), Amazon (AMZN), Meta (META), Apple (AAPL), and Microsoft (MSFT) — are all down between 16% and 25% from their 52-week highs, with Apple and Nvidia sitting on the narrowest and largest losses among the group. The exception, of course, is Tesla, which is down just less than 50% from a record close in December. Read more: How does Nvidia make money? As a group, the Magnificent Seven names helped lift overall profit growth for the benchmark S&P 500 (^GSPC), while non-technology companies have fallen behind. The rally in some of their smaller tech peers suggested this enthusiasm was not limited to these "magnificent" names, with the AI boom fresh on investors' minds. But recent outlook disappointments have weighed on this story too. Take AMD, for example. The company delivered a strong fourth quarter earnings report, yet the stock still tanked after its disappointing growth forecast for its data center business, signaling a possible momentum snag in AI chips. "A regime change is taking place in the markets and what used to work is not going to work from here anywhere to the same degree," independent economist Peter Boockvar wrote in a note on Tuesday. "The stock market has a history of handing the baton over to other things and now seems to be one of those times." Boockvar, who argued tariffs and political uncertainty cannot be solely responsible for this drawback in markets, added, "You lose the special 7 stocks, which at its peak made up about 35% of the S&P 500, you are without a net in the broader market unless the baton is immediately passed to someone else." But with uncertainty still in the driver's seat and all 11 sectors in the red over the past month, it's unclear which pockets of the market even have the capacity to finish the race. Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at Sign in to access your portfolio
