Latest news with #MonicaGuerra
Yahoo
20-05-2025
- Business
- Yahoo
Trump's budget bill: Pro-growth spending may boost earnings next year
As Congressional lawmakers consider President Trump's tax and budget plan, Morgan Stanley Wealth Management's head of US policy, Monica Guerra, joins Catalysts with Madison Mills and Tematica Research chief investment officer Chris Versace to discuss what the "big, beautiful bill" means for corporate earnings. To watch more expert insights and analysis on the latest market action, check out more Catalysts here.
Yahoo
17-04-2025
- Business
- Yahoo
Is ServiceNow (NOW) A Reddit Stock with High Potential?
We recently published a list of the . In this article, we are going to take a look at where ServiceNow, Inc. (NYSE:NOW) stands against other Reddit stocks with high potential. On April 15, Monica Guerra, Morgan Stanley Wealth Management Head of US Policy, joined 'Closing Bell Overtime' on CNBC to discuss how investors should avoid knee-jerk reactions when it comes to volatility. Monica Guerra pointed out the significance of focusing on President Trump's statements, as they contribute to market volatility despite their mixed and unclear nature. She acknowledged that deciphering his comments is challenging because they lack clarity but staying attentive to both presidential statements and congressional actions is still crucial. She stressed that policy certainty might emerge once Congress finalizes the budget, which is expected around August this year. She also emphasized that while the day started positively with markets up by 0.79%, the situation otherwise remains uncertain. She reminded clients that the 90-day reprieve on tariffs is not the end of the story and the ongoing studies on semiconductors could lead to additional pressures related to tariffs and market volatility. Guerra noted that tariff revenues are being considered as funding sources for tax cuts and this interplay between tariffs and taxes could influence market volatility. On discussing future developments in tariff policy, she mentioned that more than 70 countries have approached President Trump in attempts to renegotiate the universal 10% tariff and reciprocal tariffs. She cautioned that even if reciprocal tariffs are eliminated and only the universal tariff remains, additional increases could be highly inflationary. China's effective tariff rate is already at 145% and adding reciprocal tariffs could push inflationary pressures further. Guerra advised clients against reacting impulsively to such news and encouraged them to focus on long-term investment goals. We sifted through Reddit threads to make a list of the top stocks with the highest analysts' upside potential (at least 30%) as of April 15. The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q4 2024. The hedge fund data was sourced from Insider Monkey's database which tracks the moves of over 1000 elite money managers. Why 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 team of software engineers at desks working on code for a cutting-edge cloud computing solution. Number of Hedge Fund Holders: 110 Average Upside Potential as of April 15: 34.72% ServiceNow, Inc. (NYSE:NOW) offers cloud-based solutions for digital workflows. It operates the Now platform, which is an AI platform for digital transformation ML, robotic process automation, process mining, analytics, and low/no-code development tools. With 7,400+ customers, which includes 85% of the Fortune 500, it's involved in critical operations across IT, HR, customer service, and security. The company is developing AI agents to automate enterprise processes to deliver efficiency and drive customer value. This is backed by a $275 billion TAM projected by 2026. The Now Platform is also integrating AI which fuels its adoption. On January 30, Baird analyst Rob Oliver reaffirmed a Buy rating on the company with a $1200 price target due to its focus on integrating GenAI products. ServiceNow is seeing higher adoption of its AI-powered Pro Plus offerings. It prioritizes adoption over immediate revenue generation. In Q4 2024, ServiceNow, Inc.'s (NYSE:NOW) AI-related deals improved by 150% sequentially. The company focuses on high-value clients and closed 170 deals in the fourth quarter that crossed $1 million in net new ACV. 19 of these deals were over $5 million, 3 were over $20 million, and 2 customers exceeded $100 million in total ACV. Lakehouse Global Growth Fund stated the following regarding ServiceNow, Inc. (NYSE:NOW) in its January 2025 investor letter: 'US-based software company ServiceNow, Inc. (NYSE:NOW) delivered another impressive quarterly result. Revenues grew 21% year-on-year in constant currency terms to $2.9 billion and net income grew 30% year-on-year to $384 million. The company's key performance indicators remained healthy, with their backlog (remaining performance obligations) growing 23% year-on-year to $22.3 billion (i.e. greater than 2x annual revenue) and renewal rates held firm at 98%. As we have noted in the past, the company's renewal rates are remarkable as not only are they best-in-class, but they are also extremely consistent, typically in the range of 97% to 99%. These industry-leading renewal rates speak to the mission critical nature of the platform and are a key driver of the long-term annuity value in the business. Zooming out, we continue to believe ServiceNow is one the highest quality software businesses globally as the combination of consistent growth at scale, robust free cash flow generation and a large addressable market make it a compelling opportunity.' Overall, NOW ranks 11th on our list of the 12 Reddit stocks with high potential. While we acknowledge the growth potential of NOW, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NOW but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
17-04-2025
- Business
- Yahoo
Is Advanced Micro Devices (AMD) A Reddit Stock with High Potential?
We recently published a list of the . In this article, we are going to take a look at where Advanced Micro Devices, Inc. (NASDAQ:AMD) stands against other Reddit stocks with high potential. On April 15, Monica Guerra, Morgan Stanley Wealth Management Head of US Policy, joined 'Closing Bell Overtime' on CNBC to discuss how investors should avoid knee-jerk reactions when it comes to volatility. Monica Guerra pointed out the significance of focusing on President Trump's statements, as they contribute to market volatility despite their mixed and unclear nature. She acknowledged that deciphering his comments is challenging because they lack clarity but staying attentive to both presidential statements and congressional actions is still crucial. She stressed that policy certainty might emerge once Congress finalizes the budget, which is expected around August this year. She also emphasized that while the day started positively with markets up by 0.79%, the situation otherwise remains uncertain. She reminded clients that the 90-day reprieve on tariffs is not the end of the story and the ongoing studies on semiconductors could lead to additional pressures related to tariffs and market volatility. Guerra noted that tariff revenues are being considered as funding sources for tax cuts and this interplay between tariffs and taxes could influence market volatility. On discussing future developments in tariff policy, she mentioned that more than 70 countries have approached President Trump in attempts to renegotiate the universal 10% tariff and reciprocal tariffs. She cautioned that even if reciprocal tariffs are eliminated and only the universal tariff remains, additional increases could be highly inflationary. China's effective tariff rate is already at 145% and adding reciprocal tariffs could push inflationary pressures further. Guerra advised clients against reacting impulsively to such news and encouraged them to focus on long-term investment goals. We sifted through Reddit threads to make a list of the top stocks with the highest analysts' upside potential (at least 30%) as of April 15. The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q4 2024. The hedge fund data was sourced from Insider Monkey's database which tracks the moves of over 1000 elite money managers. Why 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 complex looking PCB board with several intergrated semiconductor parts. Number of Hedge Fund Holders: 96 Average Upside Potential as of April 15: 48.15% Advanced Micro Devices, Inc. (NASDAQ:AMD) is a semiconductor company that operates through four segments: Data Center, Client, Gaming, and Embedded. It offers products like AI accelerators, x86 microprocessors, and GPUs. It serves OEMs and design manufacturers, public cloud service providers, system integrators, independent distributors, and add-in-board manufacturers, among other customers. On April 8, TD Cowen analyst Joshua Buchalter maintained a Buy rating on the stock while lowering its price target to $110 from $135. The buy rating comes from AMD's potential for growth despite negativity in the computing sector. Analysts believe that AMD's upcoming launch of the MI355X mid-year will likely drive growth in its data center GPU segment. Although tariffs are a concern as well, the company is focused on capturing value in the AI sector. Advanced Micro Devices, Inc. (NASDAQ:AMD) recorded a revenue of $7.7 billion in Q4 2024, which was 24% improvement year-over-year. This was driven by the company's Data Center segment where revenue almost doubled year-over-year due to the rapid adoption of EPYC processors. On March 31, Advanced Micro Devices (NASDAQ:AMD) also completed its acquisition of ZT Systems, which provides AI and compute infrastructure to major hyperscale providers. This acquisition is expected to accelerate the design and deployment of AMD-powered AI infrastructure at scale optimized for the cloud. Overall, AMD ranks 4th on our list of the 12 Reddit stocks with high potential. While we acknowledge the growth potential of AMD, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AMD but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
17-04-2025
- Business
- Yahoo
Is ASML Holding (ASML) A Reddit Stock with High Potential?
We recently published a list of the . In this article, we are going to take a look at where ASML Holding N.V. (NASDAQ:ASML) stands against other Reddit stocks with high potential. On April 15, Monica Guerra, Morgan Stanley Wealth Management Head of US Policy, joined 'Closing Bell Overtime' on CNBC to discuss how investors should avoid knee-jerk reactions when it comes to volatility. Monica Guerra pointed out the significance of focusing on President Trump's statements, as they contribute to market volatility despite their mixed and unclear nature. She acknowledged that deciphering his comments is challenging because they lack clarity but staying attentive to both presidential statements and congressional actions is still crucial. She stressed that policy certainty might emerge once Congress finalizes the budget, which is expected around August this year. She also emphasized that while the day started positively with markets up by 0.79%, the situation otherwise remains uncertain. She reminded clients that the 90-day reprieve on tariffs is not the end of the story and the ongoing studies on semiconductors could lead to additional pressures related to tariffs and market volatility. Guerra noted that tariff revenues are being considered as funding sources for tax cuts and this interplay between tariffs and taxes could influence market volatility. On discussing future developments in tariff policy, she mentioned that more than 70 countries have approached President Trump in attempts to renegotiate the universal 10% tariff and reciprocal tariffs. She cautioned that even if reciprocal tariffs are eliminated and only the universal tariff remains, additional increases could be highly inflationary. China's effective tariff rate is already at 145% and adding reciprocal tariffs could push inflationary pressures further. Guerra advised clients against reacting impulsively to such news and encouraged them to focus on long-term investment goals. We sifted through Reddit threads to make a list of the top stocks with the highest analysts' upside potential (at least 30%) as of April 15. The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q4 2024. The hedge fund data was sourced from Insider Monkey's database which tracks the moves of over 1000 elite money managers. Why 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 technician in a clean room working on a semiconductor device, illuminated by the machines. Number of Hedge Fund Holders: 86 Average Upside Potential as of April 15: 33.38% ASML Holding N.V. (NASDAQ:ASML) provides lithography solutions to develop, produce, market, sell, upgrade, and service advanced semiconductor equipment systems. It offers lithography, metrology, and inspection systems. It also offers hardware, software, and services to chipmakers to produce the patterns of integrated circuits. On March 14, TD Cowen analyst Krish Sankar reaffirmed a Buy rating on the company while maintaining an €825 price target. The rating came from ASML's strong position in lithography, which is essential for producing cutting-edge chips for applications like AI and HPC. ASML drives most of its revenue from its EUV Lithography Machines segment, where it holds a 100% market share. In the full year 2024, EUV system sales reached €8.3 billion at ASML. This accounted for 44 systems, which included High NA Q4 2024 alone, EUV sales generated €2.9 billion, with revenue recognized on two High NA systems. The NXE:3800E (Low NA EUV) also showed strong performance. In the long-term, ASML Holding (NASDAQ:ASML) projects a 2030 revenue opportunity of €44 to €60 billion, with EUV systems driving this expectation. Baron Fifth Avenue Growth Fund is optimistic about ASML Holding (NASDAQ:ASML) due to its monopoly in critical lithography and stated the following in its Q4 2024 investor letter: 'ASML Holding N.V. (NASDAQ:ASML) is a Dutch company that designs and manufactures photolithography equipment for semiconductor manufacturing. While ASML is the leader across all types of lithography, most importantly, it is the only manufacturer of extreme ultra-violet lithography tools, which are critical for the manufacturing of leading-edge chips. Shares fell 16.6% during the fourth quarter (finishing the year down 7.7%) on reduced guidance for 2025 as well as growing investor concerns about the potential impact of U.S. government restrictions on Chinese demand and the possibility of peaking lithography intensity. Despite near-term noise, we believe that the growing demand for chips in general and AI chips in particular will continue to support long-term growth for the wafer fab equipment industry with ASML's competitive positioning remaining unassailable. While lithography as a percentage of capital expenditure may decrease from current levels, the chip layer count requiring lithography will continue to increase, in our view, as chips continue to become more complex. As a monopoly on critical lithography tools supporting an industry with growing demand fueled by the proliferation of AI, we see strong long-term upside for ASML.' Overall, ASML ranks 12th on our list of the 12 Reddit stocks with high potential. While we acknowledge the growth potential of ASML, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ASML but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
17-04-2025
- Business
- Yahoo
Is NVIDIA (NVDA) A Reddit Stock with High Potential?
We recently published a list of the . In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other Reddit stocks with high potential. On April 15, Monica Guerra, Morgan Stanley Wealth Management Head of US Policy, joined 'Closing Bell Overtime' on CNBC to discuss how investors should avoid knee-jerk reactions when it comes to volatility. Monica Guerra pointed out the significance of focusing on President Trump's statements, as they contribute to market volatility despite their mixed and unclear nature. She acknowledged that deciphering his comments is challenging because they lack clarity but staying attentive to both presidential statements and congressional actions is still crucial. She stressed that policy certainty might emerge once Congress finalizes the budget, which is expected around August this year. She also emphasized that while the day started positively with markets up by 0.79%, the situation otherwise remains uncertain. She reminded clients that the 90-day reprieve on tariffs is not the end of the story and the ongoing studies on semiconductors could lead to additional pressures related to tariffs and market volatility. Guerra noted that tariff revenues are being considered as funding sources for tax cuts and this interplay between tariffs and taxes could influence market volatility. On discussing future developments in tariff policy, she mentioned that more than 70 countries have approached President Trump in attempts to renegotiate the universal 10% tariff and reciprocal tariffs. She cautioned that even if reciprocal tariffs are eliminated and only the universal tariff remains, additional increases could be highly inflationary. China's effective tariff rate is already at 145% and adding reciprocal tariffs could push inflationary pressures further. Guerra advised clients against reacting impulsively to such news and encouraged them to focus on long-term investment goals. We sifted through Reddit threads to make a list of the top stocks with the highest analysts' upside potential (at least 30%) as of April 15. The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q4 2024. The hedge fund data was sourced from Insider Monkey's database which tracks the moves of over 1000 elite money managers. Why 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 computer. Number of Hedge Fund Holders: 223 Average Upside Potential as of April 15: 58.07% NVIDIA Corporation (NASDAQ:NVDA) is a computing infrastructure company that provides graphics and compute & networking solutions. Its products are used in gaming, professional visualization, data center, and automotive markets. It sells its products to OEMs, original device manufacturers, system integrators & distributors, tier-1 automotive suppliers, and other similar customers. NVIDIA specializes in AI-driven solutions and offers platforms for data centers, self-driving cars, robotics, and cloud services. In FY2025, the company's total revenue doubled year-over-year and recorded an amount of $115.2 billion. A lot of this growth was supported by Blackwell sales, which reached $11 billion alone in FQ4 2025. Blackwell is designed for AI inference, with 25 times higher throughput and 20 times lower cost than the previously made models. It is deployed by major cloud providers like Azure and AWS. On April 14, Bank of America reiterated a Buy rating on the company because of its belief that NVIDIA is relatively protected from the China-US tariff war. Wall Street analysts currently have a consensus Buy rating on the stock with an average price target of $175. Guinness Global Innovators is highly bullish on NVIDIA Corp. (NASDAQ:NVDA) due to its dominant AI chip market position. It stated the following in its Q4 2024 investor letter: 'For a second year running, NVIDIA Corporation (NASDAQ:NVDA) was the Fund's top performing stock, delivering a stellar return of +177.7% over the year. Since the beginning of last year, Nvidia's 'Hopper' GPUs have been at the centre of exploding demand for chips powerful and efficient enough to facilitate the energy intensive requirements of AI processes within datacentres. Initially possessing over 95% of market share in these types of chips, Nvidia have been quick to entrench their position as the technological leader in the space, launching the successor to the current 'Hopper' GPU in March, Blackwell, inhibiting the likes of AMD and Intel making meaningful inroads in taking share of the fast-growing market. Compared to the previous iteration (Hopper) which is continuing to fuel Nvidia's extreme revenue growth, the Blackwell chip is twice as powerful for training AI models and has 5 times the capability when it comes to 'inference' (the speed at which AI models respond to queries). Throughout the year, Nvidia's financial performance has remained resilient. Quarterly revenues hit $35.1 billion in their most recent quarter, beating consensus expectations by 6% and representing a +94% year-over-year increase. Additionally, Nvidia's data centre segment, driven by the Hopper (H100) chip, grew fivefold over the past year, underscoring the sustained demand for advanced AI infrastructure. The H100 chip, priced at around $40,000, continues to see significant adoption due to its ability to enhance AI model training efficiency while lowering overall costs. This growth is expected to continue as companies invest in upgrading existing data centres and building new ones, with Nvidia well-positioned to capture a significant share of the estimated $2 trillion market opportunity over the next five years. There have been some concerns over Blackwell production delays causing share price volatility however, Nvidia has recovered swiftly, driven by positive earnings results through the year and assurances from management regarding future supply. Additionally, the release of the H200 chip promises to extend Nvidia's technological leadership, ensuring continued momentum into 2025. While Nvidia's valuation remains a topic of debate, the stock is not at a significant premium to history, and it still appears reasonable given its dominant market position, innovative prowess, and exposure to long-term secular growth trends in AI, cloud computing, and data infrastructure. As a result, Nvidia remains well-positioned to deliver sustained outperformance over the long term, making it a cornerstone of growth-oriented portfolios.' Overall, NVDA ranks 2nd on our list of the 12 Reddit stocks with high potential. While we acknowledge the growth potential of NVDA, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
