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Yahoo
2 days ago
- Business
- Yahoo
This Artificial Intelligence Stock, Down 57%, Is Getting Ridiculously Cheap
Written by Puja Tayal at The Motley Fool Canada For years, technology has been putting development on steroids. Growing at a rapid scale, the internet, cloud, mobile, e-commerce, and now artificial intelligence (AI) have been changing the way we learn, work, and consume content. Such disruptions are difficult to value as they grow exponentially after every phase. Technology keeps upgrading, creating a consistent source of revenue for companies that power the tech or catch up to the trend. Several artificial intelligence stocks trade near their highs Several AI hardware stocks dipped between February and April 2025 as Trump tariff uncertainty slowed AI investment. They have now recovered. Among the names are Nvidia, Advanced Micro Devices, Broadcom, and Celestica. They make graphics processing units (GPUs), application-specific integrated circuits (ASICs), and networking units for AI data centres. However, the next step in the AI revolution is users of this AI hardware. Some of these companies are still investing in AI infrastructure and will see the returns in the coming months. Hence, their stocks are trading at a lower valuation than their future growth potential. This artificial intelligence stock is down 57% One such company is Hive Digital Technologies (TSXV:HIVE). You know this company for its Bitcoin mining, from which it earns 90% revenue. However, it made a move to AI and high-performance computing (HPC) infrastructure a few years back. This segment is fast-growing. In FY25 alone, revenue from AI/HPC surged 300% to US$10.1 million. Hive has named this segment BUZZ HPC business. BUZZ HPC segment is a vertical integration of Hive's Nvidia graphics processing unit (GPU)-powered data centres that mine Bitcoin. It is aggressively expanding its capacity on the back of strong demand. HIVE acquired a 7.2-megawatt (MW) facility in Toronto to support its HBC infrastructure and accelerate the development of a sovereign Canadian AI ecosystem. However, the biggest expansion is happening in Paraguay, where it is building a 300-MW capacity. It is expected to be completed by December 2025. The first phase of 100 MW became operational in Paraguay, increasing its Bitcoin mining hashrate from six Exahash per second (EH/s) to 11.5 EH/s in June 2025. At this capacity, it is mining 5.5 BTC daily. It aims to reach 25 EH/s by December 2025, mining 12.5 BTC daily. Hive is also acquiring Bitfarms's 200-MW hydro-powered Bitcoin mining facility in Paraguay to reach the 25 EH/s goal. Despite these investments, Hive's stock continued to trade 57% below its November 2024 high of $7.35, while Bitcoin prices surged 36%. It is because the Bitcoin Halving event on April 20, 2024, reduced Hive's revenue and gross operating margin to 22% in FY25 from 33% in FY24. However, Hive is increasing its capacity to sustain Bitcoin mining volumes. It will also use the new capacity to expand in the high-margin HPC business to reduce the impact of Bitcoin price volatility on its earnings. Is Hive a ridiculously cheap stock? Taking a long-term view of Hive stock, the decelerating Bitcoin mining revenue and exponential growth in HPC could see HPC revenue come on par with the mining revenue in a few years. Long-term investors can invest in Hive for its HPC business, where it is increasing capacity and market share. Hive is funding its expansion using some of the Bitcoin it mined. The company's profits will fluctuate with Bitcoin prices. The real value of this company lies in the enterprise value of $500 million, which is below the market capitalization of $492.3 million. Running at 18 EH/s capacity, Hive expects its revenue to grow fourfold to US$400 million from US$105 million in FY25. It expects its HPC business to grow 10-fold to US$100 million in annual recurring revenue. Even if Hive takes two to three years to achieve this growth, the stock is trading at an attractive valuation of 2.47 times the price-to-sales ratio. The company's strong fundamentals can help it sustain a downturn and grow in an upturn. At $2.23 per share, Hive stock is a buy-and-hold investment, as it can grow to $6 and above during a cyclical upturn. The post This Artificial Intelligence Stock, Down 57%, Is Getting Ridiculously Cheap appeared first on The Motley Fool Canada. More reading 10 Stocks Every Canadian Should Own in 2025 [PREMIUM PICKS] Market Volatility Toolkit A Commonsense Cash Back Credit Card We Love Fool contributor Puja Tayal has no position in any of the stocks mentioned. The Motley Fool recommends Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy. 2025 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
5 days ago
- Business
- Yahoo
Here's Exactly How a $20,000 TFSA Could Grow Into $100,000 by 2030
Written by Aditya Raghunath at The Motley Fool Canada Investing in quality growth stocks and holding them in a Tax-Free Savings Account (TFSA) is a proven strategy to generate outsized gains that are sheltered from Canada Revenue Agency taxes. The maximum cumulative TFSA contribution room in 2025 has increased to $102,000. While Canadian investors should allocate a majority of their funds towards diversified low-cost index funds, those with a high-risk appetite should consider gaining exposure to profitable growth stocks. Typically, growth stocks deliver market-beating returns during bull runs and have the potential to accelerate your retirement timeline by a few years. So, let's see how a $20,000 TFSA could grow to $100,000 by 2030. Hold this TSX stock in your TFSA right now Valued at a market cap of US$151 million, Electrovaya (TSX:ELVA) is engaged in the design, development, manufacture, and sale of lithium-ion batteries, battery management systems, and battery-related products for energy storage and other specialized applications in North America. Electrovaya operates Infinity battery cell technology, comprising both low- and high-voltage systems. It also operates solid-state battery technology. Analysts tracking ELVA stock expect it to increase revenue from US$44.6 million in fiscal 2024 (ended in September) to US$231 million in fiscal 2029. In this period, its free cash flow is forecast to improve from less than US$1 million to US$76.6 million. Wall Street expects the company to benefit from economies of scale and increase its free cash flow margin from 2% in 2024 to 33% in 2029. If ELVA stock is priced at a trailing FCF multiple of 15 times, which is quite cheap, it will be valued at US$1.2 billion in early 2030. This means a US$11,000 investment in ELVA stock today could be worth over US$83,000 in 2030. Analysts remain bullish on the TSX stock and expect it to gain 66% over the next 12 months. The bull case for this TSX stock Valued at a market cap of $1.4 billion, Propel (TSX:PRL) is a fintech company that operates in the financial lending space. It facilitates access to credit products, including installment loans and lines of credit, under the brands MoneyKey, CreditFresh, and Fora Credit. Analysts tracking Propel stock expect it to increase revenue from $450 million in 2024 to $919 million in 2027. Its top line is expected to surpass $1.1 billion by 2029. Analysts also expect adjusted earnings per share to increase from $1.64 in 2024 to $4.50 in 2029. Today, PRL stock trades at a trailing price-to-earnings multiple of 18.4 times, down from its average multiple of 22.5 times. If the TSX stock is priced at 16 times forward earnings, it will trade around $72 in 2030, indicating an upside potential of over 100% from current levels. So, a $9,000 investment in PRL stock today could grow to $18,000 within the next five years. Analysts remain bullish on the TSX stock and expect it to gain 18% over the next 12 months, given consensus price targets. Investors should consider identifying other growth stocks, such as PRL and Electrovaya, and further diversify their portfolios, which helps lower overall investment risk. The post Here's Exactly How a $20,000 TFSA Could Grow Into $100,000 by 2030 appeared first on The Motley Fool Canada. More reading 10 Stocks Every Canadian Should Own in 2025 [PREMIUM PICKS] Market Volatility Toolkit A Commonsense Cash Back Credit Card We Love Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Electrovaya and Propel. The Motley Fool has a disclosure policy. 2025 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
5 days ago
- Business
- Yahoo
Want to Bet on the Blockchain Boom? Buy These 2 Stocks Right Now
Written by Aditya Raghunath at The Motley Fool Canada With Bitcoin hovering near all-time highs, investors would be looking to gain access to the disruptive blockchain segment right now. In this article, I have identified two quality growth stocks that provide you with exposure to this rapidly expanding market, allowing you to generate outsized gains over the upcoming decade. Is this crypto stock a good buy right now? Valued at a market cap of US$104 billion, Coinbase (NASDAQ:COIN) is the largest cryptocurrency exchange globally. The tech stock has returned more than 475% to shareholders in the last three years as Bitcoin prices have risen from US$16,000 in early 2023 to US$120,000 today. Coinbase has increased sales from US$3.2 billion in 2022 to US$6.6 billion in 2023. Meanwhile, analysts forecast revenue to reach US$8.2 billion by 2028. The crypto heavyweight continues to expand its portfolio of products and solutions. It recently partnered with Shopify, bringing crypto payments to mainstream e-commerce. With over two million merchants now able to accept USDC payments on Shopify's platform, this creates a new revenue stream and demonstrates the real-world utility of cryptocurrency beyond trading. Coinbase's acquisition of Deribit, the leading crypto options platform with 80% market share, expands its derivatives capabilities and enhances institutional offerings. This transaction positions Coinbase as having the most comprehensive trading portfolio in the crypto space, spanning spot, perpetuals, and options. The new Coinbase Business product targets the underserved small and medium business market, offering comprehensive financial services including payments, treasury management, and earning opportunities with up to a 4.5% annual percentage yield on USDC holdings. This diversifies revenue beyond traditional retail trading. Recently, BlackRock confirmed that its Bitcoin ETF now manages more than US$72 billion in total assets, with potential for continued institutional adoption in the future. The upcoming Coinbase One card, offering 4% Bitcoin rewards, is expected to strengthen customer engagement while generating additional revenue through the American Express partnership. Is this crypto mining stock undervalued? Valued at a market cap of over $2.5 billion, Hut 8 (TSX:HUT) is a Canada-based crypto mining company. Hut 8's Q1 results reflect the growing pains of strategic transformation, with revenue declining 58% to US$21.8 million from US$51.7 million year-over-year. It reported a net loss of $134.3 million, primarily driven by a US$112.4 million non-cash loss on digital assets as Bitcoin's price declined from US$93,000 to US$82,500 during the quarter. Despite near-term headwinds, Hut 8's strategic repositioning appears promising. The launch of American Bitcoin, a majority-owned subsidiary backed by Eric Trump, enables the company to separate its capital-intensive mining operations from its core energy infrastructure business. This structure creates predictable revenue streams through colocation, managed services, and shared services agreements. Key operational improvements include a 79% increase in deployed hashrate to 9.3 exahash and a 37% improvement in fleet efficiency. Hut 8 maintains a robust balance sheet, holding 10,264 Bitcoin (valued at over US$1 billion) and having raised US$275.5 million through its equity program. The 10.8-gigawatt development pipeline, including the 592-acre River Bend campus in Louisiana, positions Hut 8 for growth in high-performance computing and AI data centres. With analysts maintaining bullish targets, the crypto mining stock is attractively positioned for investors betting on the energy infrastructure transformation, though volatility remains high at current levels. The post Want to Bet on the Blockchain Boom? Buy These 2 Stocks Right Now appeared first on The Motley Fool Canada. More reading 10 Stocks Every Canadian Should Own in 2025 [PREMIUM PICKS] Market Volatility Toolkit A Commonsense Cash Back Credit Card We Love Fool contributor Aditya Raghunath has positions in Bitcoin. The Motley Fool recommends Bitcoin and Coinbase Global, Inc. The Motley Fool has a disclosure policy. 2025 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
Time of India
15-07-2025
- Automotive
- Time of India
Nio crashes 21% in 2025 — what's dragging down the EV darling? Here's what you need to know
Nio Inc stock has been struggling since the start of this year, and it has been a bumpy ride for shareholders, with Nio's problems piling up, as per a report. The stock of the Chinese electric vehicle maker is down 21% year to date, based on S&P Global Market Intelligence data, as reported by The Motley Fool. Why is Nio's stock tumbling in 2025? Nio is pinched between rapid expansion and increasing market stress. As it invests heavily in two new sub-brands and slashes expenses company-wide, it's caught in the middle of a fierce price war within China's EV market, a war that's quickly becoming a race to the bottom, as reported by The Motley Fool. How were Nio's recent financial results? The firm's first-quarter results didn't reassure investors, as Nio reported a net loss of about $930 million, which jumped 30% from the first quarter last year, according to the report. That sharp loss was primarily due to increased research and development expenses and more marketing spending, reported The Motley Fool. The increasing losses have analysts wondering whether Nio can turn a profit in the near term, as per the report. While the financial loss was substantial, there were some positives, according to the report. Nio's margin on vehicles increased to 10.2% this year from 9.2% in the previous year, even as the industry was cutting prices, according to The Motley Fool report. The revenue increased by 22%, and gross profit increased 89% year-over-year, as per the report. ALSO READ: Health data cover up? 100+ US government datasets quietly altered without warning Live Events What is Nio doing to control its losses? The EV maker's chief financial officer, Stanley Yu Qu, highlighted that the company has started to introduce cost-saving initiatives, such as restructuring teams, consolidating efforts among brands, and streamlining operations in R&D, sales, and services, according to The Motley Fool report. The target for the second half of the year is to enhance cost efficiency and enhance operating performance, as per the report. The CFO said, "Since the first quarter, we have implemented a range of cost control measures, including organizational restructuring, cross-brand integration, and efficiency improvements in R&D, supply chain, sales and services," and emphasised that, "Starting from the second quarter, the Company aims to achieve structural improvements in overall cost efficiency, with continued progress in operational performance," as quoted by The Motley Fool report. Nio has also been increasing vehicle deliveries, aided by the introduction of its two new sub-brands, one of them being the Firefly brand, as per the report. Although early 2025 did experience normal seasonal slowdowns, the overall trend is positive, a reassuring sign for investors awaiting tangible improvement, according to The Motley Fool. ALSO READ: Epstein files stay sealed — Republicans block move to force Trump admin to reveal details What are Nio's goals for the second half of 2025? Looking ahead, the second half of 2025 is crucial for Nio, as the company has set aggressive goals, including doubling its deliveries from 2024 levels and continuing this trend till the end of 2025, as reported by The Motley Fool. But the management's goal is to break even during the fourth quarter, which would require a substantial improvement in costs and flawless vehicle launches, reported The Motley Fool. Hitting those marks would be a major achievement, especially since most analysts don't expect Nio to turn a profit until at least 2028, as per the report. FAQs Why has Nio's stock dropped this year? Nio's stock is down 21% this year due to steep losses, increased competition, and the ongoing EV price war in China . What are analysts saying about Nio's future? Most analysts don't expect Nio to be profitable until at least 2028, but breaking even in 2025 would be a major surprise.
Yahoo
15-07-2025
- Business
- Yahoo
Is It Too Late to Buy Silver Stocks?
Written by Joey Frenette at The Motley Fool Canada Silver stocks have been on such an amazing run that it may finally be time to trade in your gold bars for a piece of the much-cheaper (and perhaps more undervalued, at least according to the gold-silver ratio) precious metal. Of course, gold and silver have both been robust additions to diversified TFSA (Tax-Free Savings Account) portfolios over the past year or so. And while gold has drawn most of the attention (it's a much 'prettier' metal for sure), I do think that silver's quiet surge is worth getting behind, especially given the potential for industrial demand (it's actually an ingredient in solar panels) to take things up a notch. Although I'm not a fan of chasing hot stocks, I do think that it's a much better idea to pick up commodities on strength rather than weakness. Indeed, silver (and other commodities) can go to sleep in a form of hibernation for many, many years. Now that silver has woken up with a huge breakout that's sent the metal up more than 30% year to date, perhaps it's no longer gold that shines brightest (gold is up around 26% year to date). In any case, I'm a bigger fan of the silver chart amid this recent melt-up to highs not seen in more than a decade. It's tough to predict how many legs the great silver surge of 2025 has. Things can reverse course rather quickly, making the asset rather tricky to trade on seasonal strength. That said, for investors looking to enhance their TFSA portfolio's diversification for the summer, I think silver is a great addition, provided you have realistic expectations about returns going forward. Indeed, silver's incredible first half may very well be met by a bit of a hangover that drags well into the winter and the start of 2026. Either way, dollar-cost averaging (DCA) seems to be my preferred way to build a full position over time. That way, if silver starts to sag (it does dip rather violently), you'll be able to buy more bullion or shares of something like the Sprott Physical Silver Trust (TSX:PSLV) to lower your cost basis. Between bullion and precious metal mining stocks with silver exposure, I'm inclined to go with the former for those looking for less beta. However, for those who want more on the returns front, it's tough to bet against something like First Majestic Silver (TSX:AG), which is experiencing immense production strength. And, of course, there's a dividend, but a 0.22% yield isn't much of a needle-mover for most. In any case, given the dividend growth potential and an impressive full-year guide that's in place, I'd certainly not count AG shares out, especially as it looks to make up for lost time by gaining on the back of the recent surge in silver, which I don't think is yet fully priced into a stock that's still well off its highs. With as much as 15.8 million ounces of silver expected for the year (and a considerable amount of gold expected as well), AG stock may shape up to be a relative bargain compared to physical bullion. The post Is It Too Late to Buy Silver Stocks? appeared first on The Motley Fool Canada. Before you buy stock in First Majestic Silver, consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and First Majestic Silver wasn't one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years. Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $24,927.94!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 30 percentage points since 2013*. See the Top Stocks * Returns as of 6/23/25 More reading 10 Stocks Every Canadian Should Own in 2025 [PREMIUM PICKS] Market Volatility Toolkit A Commonsense Cash Back Credit Card We Love Fool contributor Joey Frenette has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 2025
