Latest news with #NvidiaCorporation
Fast Company
6 days ago
- Business
- Fast Company
Chip stocks and Big Tech shares jump on Trump tariffs ruling, Nvidia's earnings, and Elon Musk news
Stock markets are moving higher in premarket trading on Thursday as of the time of this writing. Two groups of stocks are doing particularly well: Big Tech's Magnificent Seven and major chipmaker stocks. Shares in one stock that crosses over into both groups—Nvidia Corporation (Nasdaq: NVDA)—are currently up 6% in premarket trading. But NVDA isn't the only chip and tech stock that is up. Other major technology companies like Apple Inc. (Nasdaq: AAPL), Inc. (Nasdaq: AMZN), and Broadcom Inc. (Nasdaq: AVGO) are also trending significantly higher. Why are Big Tech and chipmaker stocks surging this morning? It comes down to three pieces of news. Here's what you need to know. Markets and Big Tech jump on Trump tariff court ruling As of the time of this writing, market futures are trending higher this morning. S&P Futures are currently up 1.1%, Dow Futures are up 0.56%, and Nasdaq Futures are up 1.6%. The main reason for this broad surge in futures is a ruling issued by the U.S. Court of International Trade on Wednesday that declared President Trump's 'Liberation Day' tariffs illegal. As CNBC notes, the three-judge panel ruled that the mechanism Trump used to invoke the tariffs without Congressional approval—the International Emergency Economic Powers Act (IEEPA)—doesn't grant the president the authority to impose universal tariffs. The judges declared that 'the Worldwide and Retaliatory Tariff Orders exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs,' and ordered not only a permanent halt to the tariffs but future modification to them as well. As Fast Company previously reported, multiple states and small businesses sued over the implementation of the tariffs. The judges also ruled against the Trump administration's implementation of tariffs against Canada, Mexico, and China based on the importation of fentanyl into the United States, saying those separate tariffs 'fail because they do not deal with the threats set forth in those orders.' Not all of Trump's tariffs have been ruled unlawful. The president's tariffs on aluminum and steel can remain because they were not implemented under the IEEPA. The Court of International Trade gave the Trump administration 10 days to put a halt to the tariffs ruled illegal, but the Trump administration has already appealed the ruling, which may very likely end up before the Supreme Court. While the tariff situation is likely to continue to play out in the courts in the weeks ahead, news of the ruling has lifted futures—and Big Tech stocks. The companies that make up Big Tech's Magnificent Seven—Google, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla—faced particular challenges from the tariffs since many of their products are sourced from China, the country that received the highest tariffs. If not directly sourcing their products from China, they still rely on supplies or components from the country, such as servers, that the tariffs have threatened to make acquiring more expensive. Here's how Big Tech's Magnificent Seven stocks are currently trading based on the news: Alphabet Inc. (Nasdaq: GOOG): up 1.29% Inc. (Nasdaq: AMZN): up 2.5% Apple Inc. (Nasdaq: AAPL): up 2.4% Meta Platforms, Inc. (Nasdaq: META): up 1.4% Microsoft Corporation (Nasdaq: MSFT): up 0.8% NVIDIA Corporation (Nasdaq: NVDA): up 6% Tesla, Inc. (Nasdaq: TSLA): up 2.49% Elon Musk's time in the Trump administration 'comes to an end' One of the Magnificent Seven stocks—Tesla—is certainly getting a boost from the ruling against Trump's tariffs, but there's likely another reason why the stock is trending higher today, too. That reason is Elon Musk. On Wednesday, the CEO took to his social media platform X to announce that his time in the Trump administration has come 'to an end.' 'As my scheduled time as a Special Government Employee comes to an end, I would like to thank President @realDonaldTrump for the opportunity to reduce wasteful spending,' Musk wrote, adding, 'The @DOGE mission will only strengthen over time as it becomes a way of life throughout the government.' Musk joined the administration in January to head the controversial Department of Government Efficiency (DOGE). But his work with the administration and DOGE has cost his most well-known company, Tesla, dearly. Musk's involvement in politics has alienated many of the carmaker's fans across the globe, leading to plummeting Tesla sales in many key markets, including those in Europe and the United States. News that he is leaving DOGE and the Trump administration is something Tesla investors have been waiting to hear for a long time—and it's contributing to TSLA stock moving higher this morning. Nvidia's earnings lift chip stocks Finally, while many chipmaker stocks are also getting a lift today due to the Trump tariff ruling news, chipmaker and chipmaker-adjacent stocks, including chip machine maker ASML Holding N.V. (Nasdaq: ASML), are also seeing a boost thanks to Nvidia's Q1 fiscal 2026 earnings results, which the company announced yesterday. Nvidia reported revenue of $44.1 billion, which was up 12% from the previous quarter and 69% from the same quarter a year earlier. It also reported data center revenue of $39.1 billion, a 10% rise from the previous quarter and a 73% rise from the same quarter a year ago. As CNBC notes, the better-than-expected earnings results have sent NVIDIA Corporation shares higher. Currently, they are up 6%. But since Nvidia is often seen as a bellwether for other chipmakers and chipmaker-adjacent stocks, companies operating in those spaces are also seeing their shares rise this morning on Nvidia's news. Moreover, as Nvidia's technology has been playing a key role in powering the artificial intelligence (AI) revolution, its earnings beat was seen as a sign that demand for AI remains strong. All in all, it's looking like a positive start to the morning in the markets, especially for stocks that operate in the Big Tech and chipmaker sectors.
Globe and Mail
6 days ago
- Business
- Globe and Mail
‘Keep Your Eyes on the Prize,' Says Top Investor About Nvidia Stock
Well, today is the day! The excitement is palpable as Nvidia Corporation (NASDAQ:NVDA) prepares to release its quarterly report after the market closes, with both seasoned investors and newcomers eagerly awaiting the Q1 FY 2026 results. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter While the company regularly outshoots both its guidance and the market expectations, the stars might not be aligned this time around due to larger macro concerns and issues specific to Nvidia and its semiconductor peers. For instance, last month, the Trump administration informed Nvidia that it would need export licenses to sell its H20 GPUs to Chinese customers. As a result, Nvidia has announced that it will absorb approximately $5.5 billion in charges this quarter due to expenses associated with these H20 products. However, Nvidia is still expected to deliver quarterly revenues around $43 billion – which would represent 66% year-over-year growth. While margins are slated to drop a few percentage points due to costs related to the Blackwell ramp, they are likely to remain north of 70%. And yet, such are the weight of expectations on the undisputed data center leader that Nvidia's share price has dropped in the past following earnings releases, even after beating both top- and bottom-line projections. So, what's on tap this time? While top investor Rick Orford foresees some short-term volatility, he firmly believes that Nvidia is one to buy and hold for the long haul. 'Given its prospects and the current market conditions, I think Nvidia will not only recover from the current economic and government setbacks but will catapult even higher,' asserts the 5-star investor, who is among the very top 1% of TipRanks' stock pros. Orford explains that aside from its gaming segment, Nvidia's revenues have been growing across the board. Even here, however, the investor points out that its 11% year-over-year revenue decrease last quarter was due to supply constraints, meaning that there should be improved figures this time around. Moreover, Orford does not see any threats to Nvidia's place at the top of the AI pecking order. In other words, this money-maker will keep on powering away. 'Nvidia's Data Center segment will most likely continue to rake in massive profits from the ongoing AI revolution – can you name a company that can overthrow Nvidia in the next 5 to 10 years?,' Orford asks, rhetorically. In addition, Nvidia stands to further benefit from the expanding autonomous vehicle market – which offers 'massive upside potential.' The company has already inked a number of deals with auto companies, such as Toyota, Tesla, and Mercedes-Benz, among others. In other words, don't be distracted by any short-term volatility, sums up the investor, and keep your eyes firmly focused on longer term horizons. 'As a long-term investor, my 'Strong Buy' rating for Nvidia is for its long-term prospects only. And yes, that 5+ years and more,' concludes Orford. (To watch Rick Orford's track record, click here) You won't find much disagreement on Wall Street. With 32 Buys, 4 Holds, and 1 Sell, NVDA boasts a Strong Buy consensus rating. Its 12-month average price target of $164.21 has an upside north of 20%. (See NVDA stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Yahoo
7 days ago
- Business
- Yahoo
Jensen Huang Isn't A Powerpoint Fan — Neither Are Jeff Bezos And Elon Musk: Why Slide Decks Don't Cut It For Today's Tech Leaders
Nvidia Corporation (NASDAQ:NVDA) CEO Jensen Huang's rejection of PowerPoint presentations isn't a quirky habit—it's part of a broader trend among some of the most successful tech leaders who believe slide decks are a barrier to real thinking. What Happened: In "The Nvidia Way: Jensen Huang and the Making of a Tech Giant," a book published last year detailing Nvidia's rise, one of the most striking revelations is Huang's near-total ban on PowerPoint, according to DigiTimes Asia, a Taiwanese media outlet. Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Instead, Huang prefers whiteboard meetings, which he believes foster sharper, more transparent conversations. As per the book, Huang's team ensures a whiteboard is always available, whether in the office or while traveling. A former Nvidia executive even recalled an instance where the requested board was so large it required five people to bring it into a conference room. At Nvidia headquarters, many conference rooms feature entire whiteboard walls. Huang believes whiteboards prevent employees from hiding behind flashy formatting and force them to engage in live problem-solving, the report noted, citing the book. And he's not alone in this Inc. (NASDAQ:AAPL) co-founder Steve Jobs once said, "People who know what they're talking about don't need PowerPoint." He insisted that real conversations—not slide decks—drive decisions, reported Inc. (NASDAQ:AMZN) founder Jeff Bezos also replaced slide decks with written memos. "The narrative structure of a good memo forces better thought," he explained. Attendees in Bezos-led meetings begin by silently reading a multi-page memo before discussing it, allowing for deeper reflection and structured conversation. Twitter co-founder Jack Dorsey has also previously advised leaders to "get out of PowerPoint and just start building." LinkedIn's Jeff Weiner also eliminated presentations, saying, "The meeting can now be exclusively focused on generating a valuable discourse." Microsoft Corporation's (NASDAQ:MSFT) former CEO Steve Ballmer also found slide presentations inefficient. "You take the listener through your path of discovery... I decided that's not what I want to do anymore," he said. Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk has also echoed these sentiments during a 2020 interview with the Wall Street Journal, criticizing CEOs who spend too much time on PowerPoint and not enough on product innovation. "Spend less time in conference rooms, less time on PowerPoint and more time just trying to make your product as amazing as possible," Musk stated then. It is important to note that these CEOs are likely referring broadly to slide presentations, regardless of the specific software used to create them. Read Next: Hasbro, MGM, and Skechers trust this AI marketing firm — Invest before it's too late. Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Many are rushing to grab 4,000 of its pre-IPO shares for just $0.30/share! Photo Courtesy: jamesonwu1972 on Send To MSN: Send to MSN UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article Jensen Huang Isn't A Powerpoint Fan — Neither Are Jeff Bezos And Elon Musk: Why Slide Decks Don't Cut It For Today's Tech Leaders originally appeared on 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
Forbes
27-05-2025
- Business
- Forbes
Is Nvidia Stock A Buy Ahead Of Q1 Earnings?
Record revenue expectations underscore continued demand as Nvidia remains at the forefront of ... More next-gen computing. Nvidia Corporation (NVDA) stands at a pivotal moment as it prepares to release its first-quarter fiscal 2026 earnings on May 28, 2025. The semiconductor giant has transformed from a gaming graphics company into the backbone of AI infrastructure worldwide. However, recent stock performance and mounting geopolitical challenges have investors questioning whether Nvidia remains a compelling investment opportunity. This analysis examines Nvidia's year-to-date performance, key earnings metrics, macroeconomic headwinds and expert sentiment. With Wall Street projecting record revenue of $43.3 billion alongside a significant $5.5 billion writeoff related to China restrictions, the earnings report promises to be closely watched. Understanding these dynamics is crucial for investors considering their position before results are unveiled. Nvidia's 2025 journey has been marked by volatility, with shares trading approximately 5% lower year-to-date as of late May. The year began with turbulence when Chinese startup DeepSeek released a cost-effective AI model that challenged Big Tech's AI infrastructure spending assumptions. This development and signals from Microsoft regarding potential slowdowns in AI data center investments created uncertainty about Nvidia's growth sustainability. Geopolitical tensions have further complicated the stock performance under the Trump administration. Trade restrictions resulted in export bans on Nvidia's specialized chips to China, with CEO Jensen Huang acknowledging these policies cost the company approximately $15 billion in sales. The subsequent $5.5 billion write-off of H20 inventory designed for the Chinese market represents a tangible impact on Nvidia's financials. Despite challenges, Nvidia maintains exceptional financial strength, with $38.5 billion in cash versus $8.5 billion in debt. Recent developments, including expansion into Saudi Arabia and the UAE and U.S. President Donald Trump's repeal of certain chip trade restrictions, have provided positive momentum. Options traders are pricing in potential movements of up to 7.4% following earnings, reflecting continued volatility expectations. Nvidia's earnings will be scrutinized across multiple dimensions, with investors seeking insights into near-term performance and long-term positioning. The company has historically beaten quarterly guidance while providing forward estimates exceeding consensus. However, these "beat-and-raise" scenarios have become less dramatic as Wall Street caught up with Nvidia's trajectory. The earnings call will be crucial for understanding how to navigate geopolitical challenges while capitalizing on AI demand. Supply constraints remain the primary U.S. growth limitation, while international expansion strategies are critical for offsetting substantial China revenue loss. CEO Jensen Huang's commentary on competitive positioning and customer diversification will provide vital future insights. Wall Street projects record quarterly revenue of $43.3 billion for Q1 fiscal 2026, representing 66% growth versus $26 billion last year. While impressive, this means decelerating from the prior year's 262% revenue growth. Earnings per share are expected at $0.73, up from $0.61 year-over-year, with some analysts projecting adjusted EPS of $0.88, a 44% increase. These projections must consider the $5.5 billion H20 inventory write-off impacting reported results despite underlying business strength. Historical data shows that Nvidia shareholders who purchased before earnings and held for 12 months achieved median returns of 120% over the past decade. However, as always, given evolving competitive and regulatory landscapes, past performance doesn't guarantee future results. Data center revenue represents Nvidia's crown jewel, growing from $3 billion in fiscal 2020 to $115 billion in fiscal 2025. This segment exited recent quarters with $35.6 billion revenue and $142 billion annualized run rate. Morningstar models $40 billion for April 2025, but reduced July estimates from $44 billion to $37.6 billion due to China restrictions. Supply constraints continue limiting Nvidia's demand fulfillment ability. Analysts expect incremental quarterly growth of approximately $4 billion through fiscal 2026, driven by additional supply and continued AI adoption. Growth sustainability depends on broader AI infrastructure investment trends and customer base diversification beyond hyperscale cloud providers. AI demand remains Nvidia's fundamental growth driver, dominating GPU provision for AI training and inference workloads. The CUDA software platform creates significant switching costs, establishing competitive advantages beyond hardware. However, recent developments, including DeepSeek's model and scaling law debates, have introduced questions about AI investment sustainability. Nvidia's unique position provides superior AI trend visibility across industries. The earnings call will reveal whether AI investment slowdown concerns are materializing or demand remains robust across customer segments and regions. Expansion beyond cloud providers into government and sovereign initiatives, particularly in the Middle East, could provide significant diversification benefits. Nvidia's next-generation Blackwell architecture represents a critical future growth strategy, offering significant performance improvements over Hopper chips. Launch timing and execution face competitive pressure from semiconductor rivals and custom cloud provider chips. Early adoption, production schedules, and pricing will indicate Nvidia's ability to maintain technological leadership and premium positioning. Blackwell's strategic importance extends beyond immediate revenue, demonstrating continued innovation and commitment to evolving AI workload requirements. Supply chain execution is critical, given that historical demand exceeds supply for new generations. Success could offset China revenue headwinds while reinforcing Nvidia's preferred AI infrastructure provider position. The AI chip competitive landscape evolves rapidly, with major cloud providers investing in custom silicon while traditional semiconductor companies expand AI portfolios. Amazon's Trainium and Inferentia, Google's TPUs, and Microsoft/Meta design plans represent direct threats. AMD aggressively expands GPU lineups for cloud customers, while Intel develops AI accelerator products. Nvidia's competitive strategy extends beyond hardware to software, networking and services, creating comprehensive ecosystems that are difficult to replicate. However, major customers' desire to diversify suppliers and reduce single-vendor dependence represents structural challenges. Maintaining the pace of innovation while preserving switching costs through software advantages will determine sustained market position and premium valuations. U.S.-China geopolitical tensions represent the most significant macroeconomic headwind, with trade restrictions fundamentally altering Nvidia's addressable market. The Trump administration's export controls effectively blocked access to one of the world's largest AI markets. The $15 billion in lost sales represents just the beginning, as China's domestic semiconductor industry develops competitive alternatives like Huawei. Broader trade tension implications extend beyond direct restrictions to supply chain vulnerabilities and technology transfer concerns. Given Taiwan tensions, Nvidia's TSMC reliance on advanced production creates additional geopolitical risk. Middle East expansion attempts to diversify geographically, but newer markets may not offset the Chinese business scale. Reciprocal tariff threats could impact broader technology sector sentiment. Global economic conditions influence Nvidia through enterprise IT spending and AI startup venture capital impacts. Higher interest rates can reduce speculative AI investment appetite while slowing industry adoption. However, Nvidia shows remarkable economic cycle resilience, with AI infrastructure investment appearing relatively insensitive to traditional indicators. Well-capitalized customer bases provide some economic downturn insulation. Morningstar assigns Nvidia a 3-star "fairly valued" rating based on a $125 fair value estimate, suggesting the current $132-135 trading represents a slight overvaluation. The analysis acknowledges the potential for a higher fundamental value if geopolitical concerns diminish or AI demand proves more durable. The wide economic moat rating reflects confidence in competitive advantages, while the "Very High" uncertainty rating acknowledges AI market nascency and geopolitical complications. Wall Street sentiment remains generally positive despite challenges, with $43.3 billion consensus revenue projections showing continued growth confidence. However, decelerating growth rates and a focus on execution challenges suggest the "easy money" AI expansion phase may be ending. Analysts increasingly focus on navigating supply constraints, competitive pressures and geopolitical headwinds while maintaining premium pricing. Market indicators suggest continued volatility, with options pricing implying significant post-earnings movement potential. Historically strong 12-month pre-earnings buyer returns provide long-term investor comfort, but changing competitive and regulatory environments may limit historical trend applicability. Given concentrated Nvidia holdings among major index funds, institutional investor behavior will be closely watched. Bottom Line Nvidia looks like a clear buy heading into earnings, with strong fundamentals, dominant AI leadership and the potential to outperform if growth holds steady. Record revenue expectations underscore continued demand, and despite its $5.5 billion China write-off, the company remains at the forefront of next-gen computing. Still, risks remain. Geopolitical pressures, export restrictions and growing competition could affect future performance. While the stock appears reasonably valued, any upside will depend on Nvidia's ability to maintain its technological edge and weather a more complex global environment.
Yahoo
27-05-2025
- Business
- Yahoo
Microsoft (MSFT) and Nvidia (NVDA) Named as Top Picks by Veteran Investor
Microsoft Corporation (NASDAQ:MSFT) and Nvidia Corporation (NASDAQ:NVDA) are top picks at this point for Argent Capital Management portfolio manager Jed Ellerbroek, Jr. During a recent appearance on the Schwab Network, Ellerbroek explained why he's upbeat on those names. According to the portfolio manager, Microsoft Corporation (NASDAQ:MSFT) was "beat up pretty severely earlier this year because" of worries about the growth of its cloud unit, Azure. But by providing "good guidance" for Azure while unveiling its most recent quarterly earnings, MSFT "dispelled those fears," the investor explained. Moreover, Microsoft Corporation (NASDAQ:MSFT)'s "core products and its Copilot products continue to roll out nicely,"Ellerbroek reported. Turning to Nvidia Corporation (NASDAQ:NVDA), the stock picker said that the tech giant is " finding entire new customer groups for What's more, President Donald Trump's recent trip to the Middle East showed that governments are interested in investing significant amounts in AI, Ellerbroek told Schwab Network. While we acknowledge the potential of MSFT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MSFT and that has 100x upside potential, 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. 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
