Latest news with #RickSchafer
Business Insider
a day ago
- Business
- Business Insider
AMD Stock Slips 2% Despite Analyst Updates
Advanced Micro Devices (AMD) stock was down on Friday after analysts updated their coverage of the semiconductor company's shares. These updates followed its Advancing AI event yesterday, which included new chip announcements. Confident Investing Starts Here: This spurred several top analysts to update their coverage of AMD stock: Oppenheimer analyst Rick Schafer reiterated a Hold rating. Wells Fargo analyst Aaron Rakers maintained a Buy rating and $120 price target. Evercore ISI analyst Mark Lipacis kept a Buy rating and increased his price target to $144 from $120. Bank of America Securities analyst Vivek Arya reiterated a Buy rating and $130 price target. Robert W. Baird analyst Tristan Gerra maintained a Buy rating and $140 price target. J.P. Morgan analyst Harlan Sur kept a Hold rating and $120 price target. Stifel Nicolaus analyst Ruben Roy reiterated a Buy rating and $132 price target. Roth MKM analyst Sujeeva De Silva maintained a Buy rating and increased his price target to $150 from $125. Benchmark Co. analyst Cody Acree kept a Buy rating and $170 price target. Morgan Stanley analyst Joseph Moore reiterated a Hold rating and $121 price target. Barclays analyst Thomas O'Malley maintained a Buy rating and $130 price target. Citi analyst Christopher Danely kept a Hold rating and increased his price target to $120 from $100. AMD Stock Movement Today AMD stock was down 1.95% on Friday morning, extending a 3.81% year-to-date decrease. The shares have also decreased 25.77% over the past 12 months. Is AMD Stock a Buy, Sell, or Hold? Turning to Wall Street, the analysts' consensus rating for AMD is Moderate Buy, based on 22 Buy and 11 Hold ratings over the past three months. With that comes an average AMD stock price target of $129.41, representing a potential 11.52% upside for the shares.
Business Insider
30-05-2025
- Business
- Business Insider
Marvell (MRVL) Receives a Rating Update from a Top Analyst
Oppenheimer analyst Rick Schafer reiterated a Buy rating on Marvell (MRVL – Research Report) yesterday and set a price target of $95.00. The company's shares closed yesterday at $63.73. 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 According to TipRanks, Schafer is a top 25 analyst with an average return of 25.1% and a 71.69% success rate. Schafer covers the Technology sector, focusing on stocks such as Marvell, Analog Devices, and Monolithic Power. In addition to Oppenheimer, Marvell also received a Buy from TD Cowen's Joshua Buchalter in a report issued yesterday. However, on May 28, Redburn Atlantic initiated coverage with a Hold rating on Marvell (NASDAQ: MRVL). The company has a one-year high of $127.48 and a one-year low of $47.09. Currently, Marvell has an average volume of 19.8M. Based on the recent corporate insider activity of 82 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of MRVL in relation to earlier this year.
Globe and Mail
28-05-2025
- Business
- Globe and Mail
Oppenheimer: Don't Expect Nvidia's Guidance to Beat Estimates on May 28
All eyes will be on Nvidia (NVDA) later today as the chipmaker is forecast to announce its fiscal Q1 2026 results after the market closes today. Valued at a market cap of $3.3 trillion, the semiconductor giant is at the center of the artificial intelligence megatrend, generating game-changing returns for shareholders over the last decade. Analysts tracking Nvidia expect it to report revenue of $43.25 billion and adjusted earnings per share of $0.75 per share in fiscal Q1. In the year-ago period, it reported revenue of $26 billion and earnings of $0.61 per share. So, while sales are forecast to grow by 66%, earnings are estimated to expand by 24% year over year. Oppenheimer analyst Rick Schafer expects Nvidia to exceed Q1 consensus estimates, driven by recovering GB200 production and strong Blackwell chip volumes, targeting over 40,000 units this year. However, China's H20 chip restrictions may impact near-term growth despite the upcoming GB300 launch. While top hyperscale customers represent half of sales, Nvidia's diversified customer base should help mitigate geographic headwinds. Schafer maintains an 'Outperform' rating with a $175 price target, citing Nvidia's full-stack AI advantage and integrated ecosystem. Investors are likely to focus on Q2 guidance for signs of China impact, as cautious commentary could trigger sector-wide revaluation given stretched AI valuations. Schafer says that guidance is likely to be 'in line' with estimates, but not likely to beat estimates. For fiscal 2026, Wall Street estimates sales to reach $199 billion with earnings per share of $4.16. Nvidia Continues to Expand Partnerships With Tech Giants The artificial intelligence revolution is driving unprecedented collaboration among technology leaders as companies rush to build the infrastructure that powers the next generation of intelligent applications. Microsoft (MSFT) and Nvidia are deepening their partnership to advance agentic AI capabilities across cloud and PC platforms. Microsoft unveiled Discovery, an extensible research platform integrating Nvidia's ALCHEMI and BioNeMo microservices to accelerate materials science and drug discovery. In testing, researchers detected a novel coolant prototype in under 200 hours, compared to traditional methods that require months or years. Azure is rapidly deploying hundreds of thousands of Nvidia Blackwell GPUs through GB200 NVL72 rack-scale systems, with each AI data center expected to deliver 10x the performance of today's fastest supercomputers. The new Azure ND GB200 v6 virtual machines offer up to 35 times more inference throughput compared to previous H100-based systems, powered by 100% renewable energy. Dell Technologies (DELL) projects its AI server business will reach at least $15 billion this year, manufacturing servers with Nvidia Blackwell chips that offer 50 times more AI reasoning output than previous generations. Dell's streamlined manufacturing process can build, test, and ship complete rack systems within 24 hours, having recently deployed 100,000 Nvidia GPUs for a major customer in just six weeks. Google Cloud (GOOGL) became the first provider offering both Nvidia HGX B200 and GB200 NVL72 systems, with A4X virtual machines delivering over one exaflop of compute per rack. The partnership extends to on-premises deployment through Google Distributed Cloud, enabling secure Gemini model deployment for organizations with strict regulatory requirements. These strategic alliances underscore the massive infrastructure investments required to support global AI adoption as countries and companies transition from experimentation to large-scale implementation. What Is the Target Price for NVDA Stock? Nvidia's growth story is far from over, given the tech giant is forecast to increase sales from $130.5 billion in fiscal 2025 to $299 billion in fiscal 2029. Comparatively, adjusted earnings are projected to increase from $2.99 per share to $6.73 per share in this period. Nvidia stock trades at a forward price-earnings multiple of 33x, above its 10-year average of 36x. If the tech stock is priced at 25x forward earnings, it trades around $170 in early 2028, above the current price of $135.50. Out of the 44 analysts covering NVDA stock, 37 recommend 'Strong Buy,' two recommend 'Moderate Buy,' four recommend 'Hold,' and one recommends 'Sell.' The average target price for Nvidia stock is $167, indicating upside potential of over 20% from current levels.
Yahoo
28-05-2025
- Business
- Yahoo
How to Trade Nvidia Stock (NVDA) Ahead of Pivotal Earnings Call
Nvidia's (NVDA) earnings figures are set to be published tomorrow, and as usual, the Santa Clara, California-based tech giant faces a very high bar—it needs to deliver a standout quarter along with strong guidance to impress the markets. 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 From a business fundamentals perspective, explosive top-line growth and exceptionally high margins for a company of Nvidia's size—one that continues to benefit from long-term secular growth trends—reinforce the bullish case. Especially since valuations appear significantly de-risked when adjusted for these long-term growth expectations, I fully subscribe to this bullish outlook and rate the company as a Buy. That said, given Nvidia's historically volatile stock behavior, short-term downward swings are definitely possible. For those looking to go long ahead of earnings, an options-based trading strategy could be the best approach. Meanwhile, several top analysts, including Rick Schafer from Oppenheimer and C J Muse from Cantor Fitzgerald, favor bullish positions ahead of tomorrow's earnings numbers. As Nvidia gears up to report its quarterly results, it's worth noting that in the previous quarter, the GPU powerhouse remained the most impressive performer among Big Tech. Nvidia posted a massive 78% year-over-year revenue growth, bringing in $39.3 billion, while its peers in the Magnificent 7 have struggled to hit even 20% growth. Even if Nvidia's surge has been driven almost entirely by explosive demand for its GPUs, adding $17 billion in revenue in just one year is a considerable achievement, especially for a company that sells hardware and has to navigate a far more complex logistics chain than software-based businesses. What makes this even more impressive is that the top-line growth came with strong profitability. Despite supply chain headwinds, Nvidia successfully rolled out its new Blackwell architecture and still reported gross margins of 73% in its latest quarter. While that's down from 76% in the same period last year and 74.6% last quarter, it's still incredibly strong by any standard. Naturally, when a company the size of Nvidia launches a next-gen chip architecture, especially one as advanced as Blackwell, there will be higher costs during the early production ramp. The good news is that this should be temporary. Nvidia's management expects margins to rebound to the 75–76% range by the fiscal year's end, reiterating that in their latest guidance. The bar for Nvidia keeps increasing, especially after the company's massive valuation surge over the past few years. Its recent performance has made it clear: it's not enough for Nvidia to just beat estimates—it needs to beat them by a wide margin and still deliver guidance above what the market expects. For fiscal Q1 earnings, Nvidia guided for $43 billion in revenue, representing a sequential increase of $3 billion, with a possible variation of ~2% and gross margins between 70.6% and 71%. The market consensus, however, is already leaning toward the high end of that range—$43.7 billion—essentially putting pressure on Nvidia to not just meet guidance but exceed it. Since management expects gross margins to return to last year's levels by year-end, anything above 71% could be considered minimally acceptable for a bullish reaction. Even if margins land within the guided range, that might still be defensible given that the Blackwell architecture is still in the early rollout. However, in the end, what will likely drive the most immediate market reaction is the guidance for Q2. Analysts are expecting Q2 revenue of $45.5 billion, which implies 5.8% sequential growth from Q1's guidance, or 51.7% year-over-year growth. Any number below that could disappoint investors, especially in a name as heavily priced for perfection as Nvidia—and it could trigger a sell-off. To put that into perspective, based on Nvidia's options chain, the market is pricing in a 7.8% move (up or down) around earnings. That's derived from the at-the-money straddle (calls plus puts) set to expire right after earnings. Over the past eight quarters, Nvidia stock has moved more than 6% each time. Unsurprisingly, the sharpest immediate drops came in Q2 and Q4, when short-term guidance disappointed. A simple strategy that aligns well with the high volatility expected for Nvidia post-earnings is the strangle, which involves purchasing both a call and a put option, out of the money (OTM), with the same expiration date. For instance, with Nvidia shares trading around $131.29, a trader could buy a $135 call and a $127 put—both OTM. These typically come with lower premiums compared to at-the-money options. By comparison, the premium for the $131 ATM call is around $5.30, and for the $132 ATM put, about $5.50. Meanwhile, the $135 call is priced at $3.60, and the $127 put at $3.23. The total cost of the strangle would then be $6.83 per share, or $683 per contract (since each options contract represents 100 shares). The reduced upfront cost makes this strategy more capital-efficient. However, for the trade to turn profitable, Nvidia's stock must move significantly—either above $138.13 (call strike plus total premium) or below $120.77 (put strike minus premium). If the price remains within this range through expiration, both options may expire worthless, resulting in a maximum loss equal to the total premium paid. That said, given Nvidia's history of large post-earnings moves, a low-volatility or 'limbo' scenario seems unlikely in my view. Wall Street analysts remain staunchly bullish on Nvidia. Out of 39 analysts covering the stock, 34 rate it as a Buy, while only four suggest Hold, and just one recommends Sell. NVDA's average price target is at $164.51, which implies a solid upside potential of 25% over the next twelve months. Fundamentally, the long-term bull thesis on Nvidia remains strong, with very few key points to criticize aside from some recent small margin deviations. The challenge is that Nvidia's bar is as high as the operational quality of its business demands. So, if top-line growth doesn't surpass guidance, gross margins show stagnation, or next quarter's guidance falls short of market expectations, it tends to trigger short-term concerns. That said, since volatility around earnings day is expected, a strangle options strategy could be a smart way to capitalize on big moves in the stock price while limiting initial costs and risk, especially if the market doesn't move as much as anticipated. Disclaimer & DisclosureReport an Issue 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
Business Insider
23-05-2025
- Business
- Business Insider
Marvell (MRVL) Gets a Buy from Oppenheimer
In a report released yesterday, Rick Schafer from Oppenheimer reiterated a Buy rating on Marvell (MRVL – Research Report), with a price target of $95.00. The company's shares closed yesterday at $61.85. Confident Investing Starts Here: According to TipRanks, Schafer is a top 25 analyst with an average return of 25.1% and a 71.89% success rate. Schafer covers the Technology sector, focusing on stocks such as Marvell, Monolithic Power, and NXP Semiconductors. In addition to Oppenheimer, Marvell also received a Buy from UBS's Timothy Arcuri in a report issued on May 19. However, yesterday, Melius Research downgraded Marvell (NASDAQ: MRVL) to a Hold. Based on Marvell's latest earnings release for the quarter ending February 1, the company reported a quarterly revenue of $1.82 billion and a net profit of $200.2 million. In comparison, last year the company earned a revenue of $1.43 billion and had a GAAP net loss of $392.7 million Based on the recent corporate insider activity of 82 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of MRVL in relation to earlier this year.
