Latest news with #NVDA
Yahoo
34 minutes ago
- Business
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Nvidia and AMD Lead Chip Rally After H20 Chips Poised for China Comeback
July 15 - Semiconductor stocks rallied on Tuesday after Nvidia (NASDAQ:NVDA) got a major breakthrough. Nvidia shares jumped about 4% after the company said it may resume sales of its H20 GPUs in China, following U.S. government signals that export licenses will be granted. Warning! GuruFocus has detected 4 Warning Signs with NVDA. Advanced Micro Devices (NASDAQ:AMD) surged more than 6%, while Broadcom (NASDAQ:AVGO) climbed about 2%. Qualcomm (QCOM) added roughly 1%, and Micron Technology (NASDAQ:MU) gained about 2%. CEO Jensen Huang also unveiled the RTX PRO, a compliance?ready GPU aimed at smart factories and logistics. Huang met with President Donald Trump to back U.S. job creation and AI leadership, then held talks with Chinese officials on safe AI collaboration. Analysts applauded the developments. Wedbush called the potential H20 chip return a watershed moment for Nvidia, the AI Revolution thesis, and the overall U.S. tech industry, while Wells Fargo noted that renewed China sales may boost demand for AMD and MU. Other chipmakers rose on the news. Taiwan Semiconductor Manufacturing (NYSE:TSM) and Lattice Semiconductor (NASDAQ:LSCC) each climbed about 3%, Marvell Technology (NASDAQ:MRVL), GlobalFoundries (NASDAQ:GFS) and Intel (NASDAQ:INTC) rose about 2%, Analog Devices (NASDAQ:ADI) edged about 1%, and Texas Instruments (NASDAQ:TXN) inched into positive territory. 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
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an hour ago
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FTSE 100 falls back after passing 9,000 milestone
The FTSE 100 (^FTSE) closed lower on Tuesday, after briefly topping 9,000, as US inflation figures began to show the impact of tariffs – putting rate cut hopes in doubt. The FTSE 100 index closed down 59.74 points, 0.7%, at 8,938.32. It earlier hit a new all-time peak of 9,016.98 – crossing the 9,000 threshold for the first time. The FTSE 250 (^FTMC) ended down 34.31 points, 0.2%, at 21,690.46, and the AIM All-Share fell 3.02 points, 0.4%, at 771.03. Stocks in New York were mixed at the time of the London close on Tuesday as investors weighed inflation figures, earnings and some good news for chip maker, Nvidia (NVDA). The Dow Jones Industrial Average (^DJI) was down 0.6%, the S&P 500 index (^GSPC) was up 0.1%, while the Nasdaq Composite (^IXIC) climbed 0.7%. US consumer price inflation accelerated in line with expectations in June, data published by the Bureau of Labor Statistics showed. The consumer price index rose by 2.7% in June from a year before, as expected by the FXStreet-cited market consensus and picking up pace from 2.4% in May. On a monthly basis, CPI inflation accelerated to a seasonally adjusted 0.3% in June from 0.1% in May. Annual core CPI inflation, which strips out food and energy, accelerated to 2.9% in June, as expected by Bloomberg, from 2.8% in May. Bank of America said the report 'finally provided ample evidence that tariffs are being passed onto consumers'. ING said the slightly softer-than-expected June core inflation reading keeps alive the chances of a September Federal Reserve interest rate cut, but 'the risk is that we get less benign prints for July and August'. 'That means we will need to see clear evidence of softer jobs figures to trigger Fed action before December,' it added. ING thinks the Fed could then cut rates by 50 basis points. Nvidia (NVDA) jumped 4.4% after it said the Trump administration has relaxed restrictions on exporting a key artificial intelligence product designed specifically for the Chinese market, saying it hoped to resume deliveries of its H20 chip 'soon'. The company said 'the US government has assured Nvidia that licences will be granted, and Nvidia hopes to start deliveries soon'. Dan Ives, at Wedbush Securities, said it was a 'watershed moment for Nvidia, the AI revolution thesis, and the overall US tech industry'. He called it a 'monster win' for Nvidia and also a 'major bullish tailwind for the tech sector as the green light for Nvidia will propel Street estimates to go up meaningfully over the coming years with China back in the fold'. Investors also weighed US banking earnings which saw gains for JPMorgan (JPM) and Citi (C), while Wells Fargo (WFC) fell after lowering net interest income guidance. The yield on the US 10-year Treasury was quoted at 4.43%, trimmed from 4.44%. The yield on the US 30-year Treasury was quoted at 5.02%, stretched from 4.98%. The pound was quoted at 1.34 dollars at the time of the London equities close on Tuesday. The euro fell against the dollar to 1.16. On the FTSE 100 (^FTSE), Barratt Redrow (BTRW.L) fell 9.1% as planning delays, one-off charges and lower-than-expected sales in the current financial year prompted analysts to forecast double-digit earnings downgrades. 'We expect consensus estimates to be down around 12% to 15% for FY26 on the back of the weak outlets and volume guidance and the incremental exceptional charges on legal liabilities are likely to be a further disappointment,' Citi analyst Ami Galla wrote. In a trading update on Tuesday, Barratt Redrow predicted adjusted profit for the financial year to June 30 in line with market expectations, though home completions fell short of its guidance, and it warned that UK planning reforms are taking longer than hoped to take effect. 'We have seen some improvement in mortgage market competition and availability, but underlying private sales activity has remained sensitive to consumer caution, driven by the economic backdrop and the ongoing affordability challenges faced by homebuyers. The London housing market has been particularly challenging with weak demand from both domestic and international homebuyers,' Barratt Redrow said. For financial 2026, Barratt Redrow anticipates total home completions in a range of 17,200 to 17,800, including around 600 completions from joint ventures. The statement weighed on peers Persimmon (PSN.L), down 2.2%, while Taylor Wimpey (TW.L) slipped 2.5%. Faring better, Experian (EXPN.L) climbed 4.3% after the credit checking agency said revenue in the three months that ended June 30 was up 12% on-year, both at actual foreign exchange rates and constant currency. Experian said that financial services performed 'strongly', with key contributors including new products and 'modestly improved underlying client activity'. Organic revenue growth was 8% at constant currency. The strongest organic revenue rise came in North America, at 9%. In Latin America, organic revenue growth was 5%, while in the Europe, Middle East & Africa and Asia Pacific grouping, it was 7% higher. In the UK & Ireland division, it was 1%. In European equities on Tuesday, the Cac 40 (^FCHI) in Paris closed down 0.5%, as did the Dax (^GDAXI) 40 in Frankfurt. Brent (BZ=F) oil fell to 68.94 dollars a barrel at the time of the London equities close on Tuesday. The biggest risers on the FTSE 100 (^FTSE) were Experian (EXPN.L), up 165.00 pence, at 4,018.00p, WPP (WPP.L), up 5.80p at 420.40p, Polar Capital Technology Trust (PCT.L), up 4.50p at 380.00p, Bunzl (BNZL.L), up 22.00p at 2,298.00p and Associated British Foods (ABF.L), up 18.00p at 2,106.00p. The biggest fallers on the FTSE 100 were Barratt Redrow (BTRW.L), down 39.20p at 377.30p, ConvaTec (CTEC.L), down 14.60p at 244.40p, Fresnillo (FRES.L), down 72.00p at 1470.00p, Endeavour Mining (EDV.L), down 62.00p at 2,244.00p and JD Sports (JD.L), down 2.24p at 83.88p. 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
2 hours ago
- Business
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Nvidia Stock Is at a Peak - What's the Best Play Here for NVDA?
Three weeks ago, we recommended Nvidia Inc. (NVDA) stock in a June 22 Barchart article and shorting out-of-the-money puts. Now, NVDA is near its target prices, and the short play is successful. What is the best play here? NVDA is at $171.30, up over 4.5% today. Trump OK'd an export license to sell its powerful H20 AI chips to China after Nvidia's CEO, Jensen Huang, met with President Trump. The Wall Street Journal said this has been a top seller for Nvidia in China and was specially designed for the Chinese market. How to Buy Tesla for a 13% Discount, or Achieve a 26% Annual Return Alibaba Stock is Well Off Its Highs - What is the Best Way to Play BABA? Generate Income on MSTR Without Owning The Stock (Yet) Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! My prior price target was $178 per share using an estimated 55% forward free cash flow (FCF) margin (i.e., FCF/sales), as well as a 2.85% FCF yield valuation metric (i.e., 35x FCF multiple). Last quarter, Nvidia made a 59% FCF margin. So, if this continues over the coming year, NVDA stock could have further to go. Moreover, analysts have lifted their price targets. Let's look at this. In Q1 ending April 27, Nvidia generated $26.1 billion in FCF on $44.06 billion in sales. That represents a 59.2% FCF margin. Over the trailing months, according to Stock Analysis, it's generated $72.06 billion FCF on $148.5 billion in sales, or a 48.5% FCF margin. So, it seems reasonable to assume Nvidia could make at least a 57% FCF margin going forward. Here's how that would work out. Analysts expect sales to rise to a range between $199.89 billion this year ending Jan. 2026 and $251.2 billion next year. That puts it on a next 12 months (NTM) run rate of $225.5 billion. Moreover, now that it will be able to sell to China again, let's assume this pushes sales at least 5% higher to $236.8 billion: $236.8b NTM sales x 57% FCF margin = $135 billion FCF Just to be conservative, let's use a 55% margin on the lower NTM sales estimates: $225.5 billion x 55% margin = $124 billion FCF So, our estimate is that FCF over the next 12 months could range between $124 billion and $135 billion, or about $130 billion on average Therefore, using a 30x FCF multiple (i.e., the same as dividing by 3.33% FCF yield): $230b x 30 = $6,900 billion market cap (i.e., $6.9 trillion) That is 65% over today's market cap of $4.178 trillion, according to Yahoo! Finance (i.e., at $171.35 p/sh). In other words, NVDA stock could be worth 65% more, or $291.55 per share. $171.35 x 1.65 = $282.73 price target That is what might happen over the next 12 months (NTM) if analysts' revenue targets are hit and its FCF margin averages 56%. Analysts have closer price targets. The average of 66 analysts surveyed by Yahoo! Finance is $173.92. However, that is higher than three weeks ago, when I reported that the average was $172.60. Moreover, which tracks recent analyst recommendations, now reports that 39 analysts have a $200.71 price target, up from $179.87 three weeks ago. One way to play this is to sell short out-of-the-money puts. That way, an investor can set a lower buy-in price and still get paid extra income. In my last Barchart article on June 22 ("Make Over a 2.4% One-Month Yield Shorting Nvidia Out-of-the-Money Puts"), I suggested shorting the $137 strike price put option expiring July 25. The yield was 2.48% over the next 34 days (i.e., $3.40/$137.00). Today, that contract is almost worthless, as it's trading for just 8 cents. In other words, the short seller of these puts has made almost all the money (i.e., the stock has risen, making the short-put play successful). The investor's account has little chance of getting assigned to buy 100 shares per put contract at $137.00 on or before July 25. It makes sense to roll this over by doing a 'Buy to Close" and entering a new trade to 'Sell to Open' at a later expiry period and higher strike price. For example, the Aug. 29 expiry period, 45 days to expiry or DTE (which is after the expected Aug. 27 Q2 earnings release date), shows that $155.00 strike price put has a midpoint premium of $3.93. So, the short-put yield is: $393/$155.00 = 0.2535 = 2.535% over 45 days That works out to an annualized expected return (ER) of +20.28% (i.e., 2.535% x 8). So, even if NVDA stock stays flat, the investor stands to make good money here shorting these puts every 45 days (assuming the same yield occurs). There seems to be a low risk here, given that the delta ratio is just 23%. But, given how volatile NVDA has been, and that the stock is at a peak, it might make sense to use some of the income received to buy puts at lower strike prices. Keep in mind that the breakeven point, i.e., the price where an unrealized loss could occur, is $151.07: $155-$3.93 = $151.07 That is 11.8% below today's price. But it is not uncommon for a stock like NVDA to fall 20% from its peak. That would put it at $137.00. So, using some of the income to buy long puts at $140 or $145 is not unreasonable. That would cost between $144 and $204 ($174 on average) for the $15,500 investment (net of $393 already received): $393 income - $174 long hedge = $219, or $219 / $15,500 invested in short put play = 1.41% New Breakeven = $15,500 = $174 = $15,326 or $153.26 per put contract This means that the investor's potential (unrealized) loss is between $14,250 and $15,326, or -$1,076 net on the $15,326 net investment, or -7%. But keep in mind that this is only an unrealized loss. The investor would have protected himself from a much lower downside by buying long puts from the income received. And, after all, the price target is substantially higher, so the investor might be willing to hold on or even sell out-of-the-money call options to recoup some of the unrealized loss. The bottom line here is that NVDA has room to move higher. Shorting OTM puts with a lower strike price long put hedge is one good way to play this. On the date of publication, Mark R. Hake, CFA 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 Sign in to access your portfolio
Yahoo
3 hours ago
- Business
- Yahoo
Can NVIDIA's End-to-End Stack Keep Driving Networking Revenues?
NVIDIA Corporation's NVDA networking business is gaining strong momentum, thanks to its full-stack approach. In the first quarter of fiscal 2026, networking revenues surged 64% sequentially to approximately $5 billion. The robust growth was driven by the rise in AI factory buildouts and the growing demand from hyperscalers and enterprises building large AI clusters. NVIDIA's networking business focuses on providing high-performance connectivity solutions, including chips, switches, interconnects and software for data centers, which help customers scale their AI workloads more efficiently. The company's NVLink interconnect offers 14 times the bandwidth of PCIe Gen 5 and supports massive data throughput in a single rack. New offerings like NVLink Fusion are attracting custom chipmakers and CPU vendors, adding more partners to the NVIDIA ecosystem. In the last reported quarter, NVLink shipments exceeded $1 billion, showing strong early adoption. NVIDIA's Ethernet networking platform, Spectrum-X, is also expanding quickly. It is now on pace to generate more than $8 billion in annualized revenues. Companies like Microsoft, Meta, Oracle and Google Cloud are already deploying it to handle AI network traffic with low latency and high utilization. As AI workloads grow more complex and interconnected, NVIDIA's end-to-end stack makes it easier and cheaper to scale. If this demand trend holds, networking could become a larger and more stable revenue driver over time. Per our model, the company's revenues from the networking business are estimated to grow 57.7% year over year to $20.5 billion in fiscal 2026. Broadcom AVGO and Marvell Technology MRVL are two major companies that are continuously expanding in the AI networking space. Broadcom offers custom networking chips and high-speed interconnects to major cloud providers. Its strong position in Ethernet switches and application-specific integrated circuits (ASICs) gives it a foothold in the AI infrastructure space. However, Broadcom doesn't offer a complete end-to-end solution like NVIDIA. The company relies more on partnerships with cloud customers rather than offering a unified platform. Marvell Technology is also focusing on data center connectivity and recently launched products tailored for AI and cloud workloads. The company works with major hyperscalers and has a growing presence in optical and Ethernet switching. But like Broadcom, Marvell lacks NVIDIA's software and system-level integration, which limits its ability to capture the full AI networking stack. Shares of NVIDIA have risen around 22.2% year to date against the Zacks Computer and Technology sector's gain of 7.4%. Image Source: Zacks Investment Research From a valuation standpoint, NVDA trades at a forward price-to-earnings ratio of 33.81, higher than the sector's average of 27.39. Image Source: Zacks Investment Research The Zacks Consensus Estimate for NVIDIA's fiscal 2026 and 2027 earnings implies a year-over-year increase of approximately 41.8% and 31.9%, respectively. Estimates for fiscal 2026 have been revised downward over the past 30 days, while those for fiscal 2027 have been revised upward in the past 30 days. Image Source: Zacks Investment Research NVIDIA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 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 NVIDIA Corporation (NVDA) : Free Stock Analysis Report Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
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3 hours ago
- Business
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Growth ETFs Set New Records, Brush Off Tariff Headwinds
Wall Street has been showing huge resilience with the return of tariff threats. The Nasdaq Composite Index once again made a new record close, driven by the AI boom and confidence in corporate earnings. Growth investing has been outperforming, with many ETFs notching new record highs in the latest trading session. Some of these include Vanguard Mega Cap Growth ETF MGK, Vanguard Growth ETF VUG, iShares Russell Top 200 Growth ETF IWY, iShares Core S&P U.S. Growth ETF (IUSG), Schwab U.S. Large-Cap Growth ETF SCHG, Vanguard S&P 500 Growth ETF VOOG and SPDR Portfolio S&P 500 Growth ETF funds have a top Zacks Rank #1 (Strong Buy), suggesting their outperformance to continue. Investors are hoping for resilience in corporate profits as the earnings season kicks off with major U.S. banks set to report results beginning today. Per the Earnings Trend report, total S&P 500 earnings are expected to grow 4.7% from the year-ago period on 4.7% revenue growth. However, this will be a material deceleration from the growth trend of recent quarters and will be the lowest earnings growth pace since Q3 2023 (read: 5 Sector ETFs Set to Power Q2 Earnings Growth). The AI boom will continue to fuel the rally, with companies investing huge sums in the technology sector and beyond. The expansion of AI applications holds the promise of ushering in fresh growth opportunities. Tech companies have poured billions into data centers and AI chips to support the growth of AI models. Amid the AI boom, NVIDIA (NVDA) became the first company to reach a $4 trillion market cap, driving a sharp rally in the technology sector. Trump reignited global trade tensions by threatening new tariff rates, ranging from 25% to 40% on more than a dozen countries starting Aug. 1. The United States will impose 25% tariffs on goods from South Korea and Japan, and a 30% tariff on goods from the European Union and Mexico from Aug. 1. Trump also announced sweeping tariff measures, including a 35% levy on Canadian imports and proposed universal tariffs of 15%–20% on most major trading partners. He confirmed 50% duties on Brazilian goods and copper shipments. Trump also warned that BRICS countries could face an additional 10% tariff, accusing the group of attempting to harm the United States and weaken the U.S. dollar. The President also escalated tensions with Russia, announcing potential "secondary" tariffs of up to 100% in response to the war in Ukraine, alongside a pledge to supply weapons to Ukrainian the escalation adds to fears that global trade tensions could resurface and strain the broader economy, markets now view Trump's tariff threats as negotiating tactics rather than guaranteed policy moves. Wall Street strategists are growing more optimistic about stocks, even as renewed trade tensions cloud the economic outlook. Goldman Sachs (GS) raised its year-end S&P 500 target to 6,600 from 6,100, citing deeper-than-expected Federal Reserve rate cuts, lower bond yields, and investors' growing willingness to look beyond short-term earnings weakness. Bank of America (BAC) lifted its forecast to 6,300 from 5,600 (read: How to Trade the Ups and Downs of the S&P 500 With ETFs). Growth funds typically outperform during market uptrends, especially when investor sentiment is resilient. Growth investing prioritizes capital appreciation over income or dividends, focusing on companies expected to grow at above-average rates relative to their industry or the broader market. Unlike value investing, which targets undervalued stocks, growth investing is a more active strategy aimed at maximizing returns through high-growth opportunities. However, these funds often hold stocks with elevated price-to-book, price-to-sales and price-to-earnings ratios, and they tend to exhibit greater volatility, particularly when compared to more stable value-oriented stocks. 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 Vanguard Growth ETF (VUG): ETF Research Reports iShares Russell Top 200 Growth ETF (IWY): ETF Research Reports Schwab U.S. Large-Cap Growth ETF (SCHG): ETF Research Reports Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports SPDR Portfolio S&P 500 Growth ETF (SPYG): ETF Research Reports Vanguard S&P 500 Growth ETF (VOOG): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research
