Latest news with #NVIDIACorporationNVDA
Yahoo
02-06-2025
- Business
- Yahoo
NVIDIA Stock Soars 19% in a Month: Time to Hold or Book Profits?
NVIDIA Corporation NVDA has seen its share price soar 18.7% over the past month. This surge has significantly outperformed the broader Zacks Computer and Technology sector, which gained 6.9% during the same period. Image Source: Zacks Investment Research This outperformance raises the question: Is it time to take profits, or should investors continue holding NVDA as the rally extends? NVIDIA's recent surge has been driven in part by improving sentiment around U.S.-China trade. The two countries have rolled back tariffs, with the United States reducing tariffs on Chinese imports to 30% from 145%, while China cut duties on U.S. goods from 125% to 10%. These new terms will be in place for 90 days. This 90-day reprieve has eased concerns about prolonged trade disruptions, improving market sentiment and lifting stocks across sectors, especially tech and semiconductors. This broader rally has also powered gains in major semiconductor players, including Advanced Micro Devices AMD, Micron Technology MU and Broadcom AVGO. Over the past month, shares of Advanced Micro Devices, Micron and Broadcom have risen 10%, 17.4% and 20.6%, respectively. For NVIDIA, this trade relief was just the catalyst needed to reignite buying interest in a stock already backed by strong fundamentals. Given its solid footing in AI and chip innovation, this rebound has legs, suggesting that holding the stock may still be the better call. NVIDIA's most powerful growth engine continues to be its Data Center business. In the first quarter of fiscal 2026, the segment brought in $39.1 billion in revenues, a staggering 89% of total company sales. This represents 73% year-over-year growth and a 10% sequential rise, primarily fueled by explosive demand for AI. The company's cutting-edge Hopper 200 and Blackwell GPU platforms are being rapidly adopted as cloud and enterprise customers race to scale up AI infrastructure. A large chunk of this growth is coming from hyperscalers, who are betting big on NVIDIA's GPUs to support their expanding AI workloads. With the Blackwell architecture promising up to 25x better AI inference performance than Hopper 100, NVIDIA continues to raise the bar. The upcoming Blackwell Ultra and Vera Rubin platforms are likely to strengthen its position further as global demand for AI computing accelerates. Despite some geopolitical setbacks, NVIDIA's financials remain rock solid. In the first quarter of fiscal 2026, revenues jumped 69% from the year-ago quarter, while non-GAAP earnings per share rose 33%. Even with an $8 billion expected revenue hit in the second quarter due to export restrictions on its H20 chips in China (after a $2.5 billion revenue loss in the first quarter), NVIDIA remains confident in its momentum. Its second-quarter guidance of $45 billion in revenues marks a 50% jump from the same quarter last year. Wall Street sees this trend continuing. The Zacks Consensus Estimate projects revenue growth of 51% in fiscal 2026 and 24% in 2027, with earnings growth of 40% and 32%, respectively. These numbers reinforce NVIDIA's position as a long-term growth story, one that remains intact despite near-term geopolitical hurdles. Image Source: Zacks Investment Research Valuation-wise, NVIDIA is overvalued, as suggested by the Zacks Value Score of D. In terms of forward 12-month Price/Earnings (P/E), NVDA shares are trading at 29.13X, higher than the sector's 25.52X. Image Source: Zacks Investment Research Compared with other major semiconductor players, NVIDIA is trading at a lower P/E multiple than Broadcom while at a higher multiple than Advanced Micro Devices and Micron Technology. At present, Broadcom, Advanced Micro Devices and Micron Technology are trading at P/E multiples of 32.91X, 23.49X and 9.61X, respectively. NVIDIA's strong fundamentals, dominant position in AI and impressive growth outlook make a compelling case for staying invested. While valuation is on the higher side, the company's momentum, both operationally and financially, supports holding the stock. NVIDIA carries a Zacks Rank #3 (Hold) at present. 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 Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Micron Technology, Inc. (MU) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
27-05-2025
- Business
- Yahoo
Should You Buy, Hold, or Sell NVIDIA Stock Ahead of Q1 Earnings?
NVIDIA Corporation NVDA will report its fiscal 2026 first-quarter results on Wednesday, after market close. Trade disputes and competition from Chinese counterparts may weigh on NVIDIA, but advances in the field of artificial intelligence (AI) could help the company generate another quarter of revenue and profit growth. Let's look at the possible first quarter outcome, and is NVIDIA stock a buy now? The fruitful launch of the Blackwell architecture helped NVIDIA's revenues jump 12% sequentially and 78% year over year to $39.3 billion in the last reported quarter. NVIDIA expects to deliver such strong performance in its fiscal 2026 first quarter as well. Management anticipates that the ongoing adoption of AI will enable revenues to reach $43 billion (plus or minus 2%), surpassing the Zacks Consensus Estimate of $42.7 billion. This is a 62% increase from last year. The Zacks Consensus Estimate for fiscal first-quarter earnings per share (EPS) is 85 cents, reflecting a 39.3% increase from the previous year. Also, NVIDIA has achieved an average positive earnings surprise of 7.9% over the last four quarters, indicating that it may meet the projected fiscal first-quarter earnings growth and drive its stock price higher. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Image Source: Zacks Investment Research Although the Trump administration's restriction on the sale of H20 chips to China might impact NVIDIA's fiscal first-quarter performance, the long-term outlook remains promising as the company stays committed to the Chinese market. NVIDIA is anticipated to sell a revised version of H20 chips to China soon and has opened a lab in Shanghai to provide strong competition to rivals such as Huawei. The increase in demand for Blackwell chips, known for their efficiency, along with the rising popularity of the CUDA software platform among developers, will likely drive NVIDIA's growth. NVIDIA also has a competitive edge in the graphics processing units (GPUs) space, with a more than 90% market share, according to IoT Analytics. This wide moat is expected to support growth further. Now, cloud computing stocks including Inc. AMZN and Alphabet Inc. GOOGL are buying GPUs to boost computing power for AI workloads. These cloud computing stocks are spending billions of dollars on AI infrastructure, which would benefit NVIDIA as it provides processors used for AI. NVIDIA is also likely to gain from the upcoming phase of the AI revolution that includes self-driving cars and autonomous robots. NVIDIA's technology is used by self-driving car companies, such as Tesla, Inc. TSLA and Alphabet's Waymo, while NVIDIA's Isaac is used by Amazon to train warehouse robots. Management's optimism about better fiscal first-quarter results, an increase in demand for the latest chips, growing GPU acceptance, an uptick in AI data center spending, and a possible improvement in the company's automotive revenues should persuade stakeholders to remain invested in the NVIDIA stock. Moreover, it makes sense to hold onto NVIDIA stock because the company is fundamentally strong. It has been able to generate profits proficiently than the Semiconductor - General industry, with a net profit margin of 55.9%, which exceeds the industry's 49.5%. Image Source: Zacks Investment Research However, new entrants should adopt a wait-and-watch approach. NVIDIA's China business does face some grave risk, and investors may want to wait for its first-quarter results to shed light on the scenario before placing a bet on the 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. 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 NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
21-05-2025
- Business
- Yahoo
Jacobs & NVIDIA Partner for AI Factory Digital Twins Blueprint
Jacobs Solutions Inc. J has collaborated with NVIDIA Corporation NVDA to advance data centers for NVIDIA Omniverse Blueprint for AI factory digital twins, through NVIDIA's Omniverse NVIDIA Omniverse Blueprint for AI factory digital twins is a blueprint that helps to improve the design, simulation, deployment and operations of AI factories. This strategic collaboration will make life easier for engineering teams as they will be able to design, simulate and optimize factories within physically accurate virtual environments, enabling early issue detection and the creation of smarter and more reliable this partnership, Jacobs will be testing and enhancing the end-to-end blueprint workflow, ensuring accurate simulations of facility equipment efficiency, throughput and resiliency. This blueprint will amalgamate the design and simulation of billions of components to build digital twins of AI Factories, thus introducing new integrations across the AI Factory's power, cooling and network ecosystems. The company has been utilizing digital twin technologies for its clients in water and transportation for more than 10 years now. Currently, its expertise is being valued and demanded across the globe, making it stand out in the the United States, Jacobs is working as the program manager and engineer for Xcel Energy's multi-billion-dollar transmission and distribution reliability program, alongside designing and managing the construction of a new wastewater reuse system for data centers in central Virginia. In Portugal, the company is working on a 1.2-gigawatt AI-scale data center powered entirely by renewable energy and cooled with a cutting-edge zero-water system at SINES DC Campus by Start Australia, Jacobs is currently working in partnership with PsiQuantum on master planning, schematic design and owner's engineer services for the development of one of the largest utility-scale and fault-tolerant quantum computers. The share price performance of this provider of professional, technical and construction services has inched down 0.4% in the past three months compared with the Zacks Technology Services industry's 5.9% decline. Image Source: Zacks Investment Research The ongoing global market uncertainties surrounding the new tariff regime and inflationary pressures are creating a choppy environment for the company, especially regarding potential supply-chain inefficiencies. However, its client-centric model and the ongoing incremental demand for public infrastructure are expected to bode well for Jacobs in the near and long J's trailing 12-month return on equity (ROE) is indicative of its growth potential and focus on maintaining shareholder value. Its ROE of 15.7% compares favorably with the industry's negative value of 15.6%, indicating more efficiency in using shareholders' funds than peers. Jacobs currently carries a Zacks Rank #3 (Hold).Here are some better-ranked stocks from the Business Services Inc. SEZL presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks company has a trailing four-quarter earnings surprise of 159.2%, on average. The stock has surged 130.1% year to date. The Zacks Consensus Estimate for Sezzle's 2025 sales and earnings per share (EPS) indicates growth of 61.7% and 75.8%, respectively, from the year-ago period's Corporation APP currently sports a Zacks Rank of 1. The company delivered a trailing four-quarter earnings surprise of 24.4%, on average. The stock has gained 12.4% year to Zacks Consensus Estimate for AppLovin's 2025 sales and EPS indicates growth of 24.3% and 85.3%, respectively, from the year-ago period's levels. 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 AppLovin Corporation (APP) : Free Stock Analysis Report Jacobs Solutions Inc. (J) : Free Stock Analysis Report Sezzle Inc. (SEZL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
19-05-2025
- Business
- Yahoo
Bitcoin on Track to Hit New High: 3 Crypto-Centric Stocks in Focus
Cryptocurrencies are on a rally again, thanks to some encouraging economic data and easing trade tensions, which have given a boost to investors' confidence. Earlier this week, Bitcoin (BTC) surpassed the $100,000 mark for the first time in nearly five months. Bitcoin is now on track to surpass its all-time high of $106,533 attained on Dec. 22. Bitcoin had a stellar 2024 and experts had predicted that the cryptocurrency could cross $140,000 once global tensions ease. Given this situation, it would be ideal to invest in crypto-focused stocks. We have selected three stocks, namely Visa Inc. V, NVIDIA Corporation NVDA and PayPal Holdings PYPL. Each of these stocks has strong growth potential for 2025 and has seen positive earnings estimate revisions in the last 90 days. Bitcoin surpassed $104,000 on Thursday night on renewed optimism that easing trade tensions and cooling inflation will save the U.S. economy from slipping into a recession. The Commerce Department said earlier this week that inflation is cooling steadily. The consumer price index (CPI) rose 0.2% sequentially in April and 2.3% from the year-ago levels, the lowest since February 2021. The monthly reading was in line with expectations, while the 12-month inflation came in below economists' expectations. Core CPI, which excludes the volatile food and energy prices, also increased 0.2% month over month in April, lower than the forecast of 0.3%. Year over year, core CPI grew 2.8%, which came in line with analysts' expectations. Inflation is now on track to meet to Fed's 2% target. The broader market has rallied this week as investors breathed a sigh of relief after the United States and China announced a trade truce following talks over the weekend. Both countries decided to temporarily halt tariffs for 90 days and work out a deal. Investors are expecting more trade deals with other countries to be worked out soon. Easing trade tensions and signs of cooling inflation have alleviated fears of a weakening U.S. economy. Investors are also hopeful that the easing inflation will give the Federal Reserve the confidence to resume its rate cuts in the near term. This is likely to further help the crypto market as higher interest rates for a longer period can have a negative impact on cryptocurrencies by dampening investor interest in high-risk assets, increasing the cost of holding non-interest-bearing assets like Bitcoin, and strengthening the U.S. dollar, which are often considered a headwind for the crypto market. Visa Inc. is taking a significant step toward modernizing cross-border money movement. In a move aimed at enhancing the efficiency of global transactions, V is expanding its stablecoin settlement capabilities to the high-performing Solana blockchain. This expansion of V includes collaboration with prominent merchant acquirers Worldpay and Nuvei, marking a pivotal development in the world of digital payments. Visa Inc.'s expected earnings growth rate for the current year is 12.8%. The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the last 90 days. V currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. NVIDIA Corporation is a major player in the semiconductor industry and has been one of the standout success stories of 2023. As a leading designer of graphic processing units (GPUs), the value of the NVDA stock tends to surge in a thriving crypto market. This is primarily due to the crucial role that GPUs play in data centers, artificial intelligence and the mining or production of cryptocurrencies. NVIDIA's expected earnings growth rate for the current year is 43.5%. The Zacks Consensus Estimate for current-year earnings has improved 1.9% over the last 90 days. Currently, NVIDIA has a Zacks Rank #3. PayPal Holdings, Inc. provides digital wallet services that enable users to purchase, transfer, and sell various cryptocurrencies, such as Bitcoin, Ethereum, Bitcoin Cash and Litecoin. Through PYPL, users can use cryptocurrencies to pay for goods and services from online merchants. Additionally, PayPal's mobile wallet platform, Venmo, allows users to engage in cryptocurrency buying and selling activities. PayPal Holdings' expected earnings growth rate for the current year is 9%. The Zacks Consensus Estimate for current-year earnings has improved 0.8% over the last 90 days. PYPL currently has a Zacks Rank #3. 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 Visa Inc. (V) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
Globe and Mail
30-04-2025
- Business
- Globe and Mail
Top Founder-Run Company Stocks That Can Drive Solid Returns
No one is better positioned to understand, nurture and build a company than its founder. Much like a mother devoted to raising her child, founders invest in their ventures with profound passion, unwavering vision and relentless dedication. Their appetite for risk often exceeds that of professional managers, as they willingly embrace new approaches, foster innovation and make bold choices to achieve success. As a result, these companies frequently become genuine manifestations of their founders' core values and aspirations. However, founder-run companies represent less than 5% of the S&P 500 index. But that does not make their contribution any less. Everyone is aware of the success stories of visionary founder-owners like Elon Musk, Warren Buffett, Steve Jobs, Jeff Bezos, Mark Zuckerberg and Bill Gates, who have redefined industries, creating trillion-dollar companies that continue to thrive. Some of today's prominent founder-run companies are NVIDIA Corporation NVDA, Amazon AMZN, Meta META, Tesla, Inc. TSLA, Berkshire Hathaway Inc. ( BRK.B ) and Netflix NFLX. Founder-led companies represent nearly 15% of the total index's market capitalization, with technology companies taking the lead. As these companies are born out of a unique idea, they often involve technological innovation. These companies are built from scratch in a way that they can navigate challenges to stay sustainable over the longer term. Initially, others may not relate to a founder's belief, making it difficult to source funds for the project. The founder often ends up putting personal wealth and savings into such bootstrap companies. If successful, they attract angel investors or raise funds. But it's always the founder-owner whose stake and risk are the highest. Moreover, a founder-owner often finds it difficult to delegate responsibilities as they are skeptical if others could do justice to the role. Thus, they often hold multiple senior/leadership positions and also face difficulties in finding a torchbearer. But one cannot be jack of all trades. Owing to their reluctance to delegate duties, these founders/owners tend to lose out on the benefits of professional expertise. Nevertheless, there is strong evidence that founder-led companies tend to perform better over time. Per Harvard Business Review Study, founder-led companies had a market-adjusted return of 12% over three years against a return of negative 26% for companies that hired a professional CEO. Our Founder-Run Companies Screen further makes it easy to identify high-potential stocks. Currently, stocks like Netflix, Intercontinental Exchange ICE and Affirm Holdings AFRM look appealing. 3 Founder-Run Companies to Add to Your Portfolio Netflix, with a market capitalization of $387.7 billion, is considered a pioneer in the streaming space. The company evolved from a small DVD rental provider to a dominant streaming service provider, courtesy of its wide-ranging content portfolio and strong international footprint. Wilmot Reed Hastings Jr. co-founded Netflix with Marc Randolph in 1997 and is the executive chairman of the company. Netflix has been spending aggressively on building its portfolio of original shows. This is helping the company sustain its leading position despite the launch of services like Disney+ and Apple TV+, as well as existing services like Amazon Prime Video. NFLX carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The company's focus on streaming regional content has been leading to international growth. Netflix is diversifying its content portfolio and working on projects across India, Mexico, Spain, Italy, Germany, Brazil, France, Turkey and the entire Middle East. The company has launched low-priced mobile plans in India, Indonesia, Malaysia, the Philippines and Thailand. Moreover, the upcoming lower-priced ad tier is expected to further drive growth in these price-sensitive regions. Netflix's 2025 priorities include improving its core business with more series and films to offer an enhanced product experience, growth of its ads business, and newer initiatives such as live programming and games. It believes these initiatives should help it sustain healthy growth and thus projects 2025 revenues between $43.5 billion and $44.5 billion and an operating margin of 29%. Intercontinental Exchange, with a market capitalization of $95.6 billion, has evolved from a small start-up less than three decades ago to a company whose networks help customers manage risk, harness data and improve workflow efficiency. Jeffrey C. Sprecher, founder, chairman & CEO of ICE, stated, 'These efforts saw ICE report its 19th consecutive year of record net revenues and record adjusted earnings per share, something we have achieved every year since we've been a public company.' Its competitive advantage lies in the digitization of fixed income workflows and automating mortgage manufacturing. With over 5,000 indices representing more than $1 trillion in benchmark assets under management, the company boasts being the second-largest fixed income provider globally. This Zacks Rank #2 company has grown over the past two decades, primarily through buyouts and collaborations that have not only fueled its growth but have also led to achieving expense synergies. Intercontinental Exchange remains well-positioned for growth on the back of accelerated digitization taking place in the U.S. residential mortgage industry to overcome several inefficiencies across the mortgage origination workflow. While the company already boasts the largest mortgage network across the United States, the integration of Ellie Mae into ICE Mortgage Technology is likely to help the company in boosting its mortgage business. A healthy and minimal risk-based balance sheet is likely to continue, providing stability and buoyancy over the medium to long term while supporting strategic investments. Affirm, with a market capitalization of $16.3 billion, a financial technology company, has emerged as a major player in the BNPL space, one of the fastest-growing segments in fintech. Affirm collaborates with merchants to integrate its pay-over-time solutions at the point of sale, boasting over 337,000 active merchant partners as of Dec. 31, 2024, across diverse sectors. Max Levchin, founder and CEO, believes 'Affirm is in the strongest shape it's ever been.' Affirm benefits from organic growth, expanding merchant partnerships, advancing technology and product innovation and expansionary measures. Technology is the backbone of a payments company like Affirm, as it powers the company's cloud-based, data-driven platform. Affirm uses advanced machine learning and predictive models to assess fraud risk and creditworthiness and personalize services, enabling better risk assessment and pricing. Its proprietary technology, with access to data from 215 million loans, improves efficiency and scalability, creating a moat. Affirm is steadily evolving into a broader financial services platform. This diversification strategy not only expands Affirm's addressable market but also creates new revenue streams. The company achieved GAAP profitability in the last reported quarter and aims to maintain profitability starting in the fourth quarter of fiscal 2025. This Zacks Rank #1 company is also eyeing international growth, with launches planned in Australia and Western Europe. Research Chief Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months. Free: See Our Top Stock And 4 Runners Up 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 Intercontinental Exchange Inc. (ICE): Free Stock Analysis Report Netflix, Inc. (NFLX): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Affirm Holdings, Inc. (AFRM): Free Stock Analysis Report Meta Platforms, Inc. (META): Free Stock Analysis Report
