Latest news with #bigtech
Yahoo
35 minutes ago
- Business
- Yahoo
Apple's AI Momentum Is Building -- Here's What It Means for Investors
Key Points Apple's revenue in its latest quarter was its highest-ever in one of its June quarters. The $3.5 billion Apple spent on capital expenditures was the most since its fiscal quarter that ended in January 2023. Apple's stock is now trading closer to its five-year average after falling this year. 10 stocks we like better than Apple › Apple (NASDAQ: AAPL) has long been one of the premier stocks on the U.S. stock market, spending most of the past decade as the world's most valuable public company. However, the company has seemingly taken a step back in the past few years as the artificial intelligence (AI) boom has boosted the value of many other big tech companies. In the past three years, Apple's stock is only up around 30%, making it the second-worst performer of the "Magnificent Seven" stocks (trailing only Tesla) and underperforming the S&P 500. That's not something investors are used to seeing from Apple. Despite Apple seemingly lagging behind, there could possibly be a breath of fresh air coming to the company, sparking new life into the stock. A much-needed rebound for the iPhone and Mac products Apple's fiscal third-quarter earnings, for the period ended June 28, were a pleasant surprise for many people. Its revenue grew nearly 10% year over year to $94 billion, which is a June quarter record for the iPhone maker. And speaking of iPhone, the smartphone's revenue grew 13% year over year to $44.6 billion, which Apple noted was driven by the popularity of the iPhone 16 family. Mac (which includes products like MacBook Pro, MacBook Air, iMac, and Mac Studio) revenue grew 15% year over year to $8 billion, but iPad and wearables, home, and accessories sales were noticeably down -- 8% and 9% year over year, respectively. Still, Apple's hardware revenue grew by 8% year over year and accounted for nearly 71% of its total revenue for the quarter. Apple's services segment reached an all-time high, bringing in $27.4 billion, but hardware remains -- and will likely remain -- king for the company. Apple's year-over-year revenue growth was its highest in the past three years. Is Apple finally getting serious about AI? The big cloud hanging over Apple's business has been AI (what it calls "Apple Intelligence"), and the lack of urgency in the space compared to rivals like Alphabet and Microsoft. It seems Apple is beginning to take it more seriously and address this issue. A major advantage on Apple's side is the number of devices it has in people's pockets, homes, and offices. Ideally, Apple can integrate AI into its various hardware, giving people even more of a reason to choose it over competitors. This has been the plan for a while, but it hasn't gone as smoothly or as quickly as most people thought or hoped. That should change soon, with Apple's management noting on its latest earnings call that Apple is "increasing [its] investment significantly in AI," both in infrastructure and company personnel. In its latest quarter, Apple spent nearly $3.5 billion on capital expenditures, its most since its fiscal quarter that ended in January 2023. Apple has always moved cautiously and with intention. These new AI investment developments don't strike me as the company just now coming to its senses, but more so Apple feeling like now is the right time (a lagging stock price sure helps it come to that realization). Apple's stock looks like a good entry point for investors At the time of this writing, Apple is trading at 29 times its projected earnings for the next year. That's the second-lowest out of the "Magnificent Seven" stocks and below the 35 it was at to start this year. That alone doesn't make Apple a buy right now, but it does give it a lot more upside now than before. This is especially true if its new AI prioritization plays out as management envisions. With $133 billion in cash and marketable securities to its name, Apple has all the resources it needs to ensure it keeps pace in the AI race. Should you buy stock in Apple right now? Before you buy stock in Apple, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Apple wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Stefon Walters has positions in Apple and Microsoft. The Motley Fool has positions in and recommends Alphabet, Apple, Microsoft, and Tesla. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Apple's AI Momentum Is Building -- Here's What It Means for Investors was originally published by The Motley Fool
Yahoo
6 hours ago
- Business
- Yahoo
Innodata's 375% EBITDA Jump Shows Operating Leverage: More to Come?
Innodata Inc. INOD delivered another standout quarter in the second quarter of 2025, with results underscoring its strong operating leverage and expanding role in the AI services ecosystem. Revenues surged 79% year over year to $58.4 million, beating estimates by 3.6%. Adjusted EBITDA soared 375% to $13.2 million, representing 23% of revenue, up from just 9% a year ago. Net income reached $7.2 million, marking a sharp turnaround from last year's minimal gains were fueled by expanding engagements with marquee big tech clients. Notably, one customer is projected to generate $10 million in second-half revenue, up from just $200,000 over the prior 12 months. Management also raised its 2025 organic growth guidance to at least 45%, citing a robust pipeline and accelerating demand for high-quality, complex training data essential for generative and agentic Jack Abuhoff highlighted that Innodata is moving beyond data provision into model evaluation, trust and safety monitoring, and simulation data for robotics — positioning it for emerging AI and automation opportunities. The recent market disruption following Meta's acquisition of competitor Scale AI could further open doors with large tech buyers seeking alternative $59.8 million in cash, no debt drawdown, and a $30 million credit facility, Innodata has financial flexibility to support growth investments. While increased spending in the third quarter will pressure near-term margins, the company's expanding role in the AI value chain suggests its operating leverage story is far from over. If execution continues, investors may see both revenue scale and profitability rise in tandem. Innodata's Competitive Landscape Innodata competes in the fast-growing AI services market with major players like Palantir Technologies Inc. PLTR and Inc. AI. Palantir, recognized for its Gotham and Foundry platforms, has entrenched relationships with government agencies and large enterprises, delivering integrated analytics and AI-driven decision platforms. While Palantir emphasizes full-stack AI solutions, Innodata differentiates itself through its expertise in producing high-quality, complex training data and conducting advanced model evaluation — capabilities increasingly vital for generative and agentic focuses on AI application development across industries such as energy, manufacturing, and defense, offering configurable enterprise AI platforms. While excels in scalable deployments, Innodata's specialization in smart data strategies, trust and safety services, and simulation data for robotics addresses a niche but expanding segment of the AI lifecycle. By securing deep big tech partnerships, Innodata could strengthen its position against both Palantir and in next-generation AI markets. INOD Stock's Price Performance & Valuation Trend Shares of this data engineering company have gained 23.7% in the past three months, performing better than the Zacks Computer - Services industry, as you can see below. INOD Stock's Price Performance Image Source: Zacks Investment Research INOD stock is currently trading at a premium compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 48.45, as evidenced by the chart below. AI's P/E Ratio (Forward 12-Month) vs. Industry Image Source: Zacks Investment Research Earnings Estimate Trend of INOD Stock The Zacks Consensus Estimate for 2025 earnings per share (EPS) has increased to 71 cents from 69 cents in the past seven consensus estimate for 2025 sales implies growth of 42.8%. The same for the company's 2025 EPS is expected to decline 20.2% from the year ago. Image Source: Zacks Investment Research INOD's Zacks Rank INOD stock 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 Inc. (AI) : Free Stock Analysis Report Innodata Inc. (INOD) : Free Stock Analysis Report Palantir Technologies Inc. (PLTR) : 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
7 hours ago
- Business
- Yahoo
1 Incredible Artificial Intelligence (AI) Chip Stock to Buy Before It Soars 85% (Hint: Not Nvidia), According to a Select Wall Street Analyst
Key Points GPUs get all of the attention amid booming AI spending, but there are a lot of components that go into data centers. Its valuation and strong balance sheet led one analyst to put a price target with 80% upside on this chipmaker. There are some significant risks with the company, but the long-term trends favor the stock. 10 stocks we like better than Micron Technology › Big tech companies are spending hundreds of billions of dollars on chips and equipment to outfit their growing data centers to continue pushing the potential of generative AI. Total infrastructure spending from the top 10 AI tech companies could climb from $435 billion last year to over $1 trillion by 2028, according to estimates from Dell'Oro. In other words, there's still a lot of room for AI chip stocks to keep growing. Perhaps the most important component of any data center focused on AI training and inference is the GPU cluster. Bigger clusters of more powerful GPUs are capable of training bigger models faster. Nvidia has established itself as the leading GPU maker, and its revenue and profits have skyrocketed as hyperscalers snatch up its chips as fast as it can produce them. But GPU makers aren't the only chipmakers benefiting from the rapid growth in AI spending. There are a lot of different components that go into data centers. As demand continues to grow over the next few years, one chipmaker's stock could climb up to 85% from its price as of this writing through the next 12 months, according to one Wall Street analyst. Here's what investors need to know. Don't forget about this component One of the most expensive parts of building a GPU, which is more than just a piece of silicon these days, is the high-bandwidth memory, or HBM. The most advanced GPUs process tons of data every second. But in order to process that data, the unit must have a way to access the data quickly. Traditional memory components quickly became a bottleneck as the processing power of GPUs increased. As such, demand for HBM chips has exploded alongside the growing demand for the most advanced GPUs. There are only a few chipmakers producing HBM chips. The leader in the market is SK Hynix, which established a strong relationship with Nvidia. But another memory chip maker, Micron Technology (NASDAQ: MU), is poised to take share from the market leader. Micron was late to HBM, but now it's ramping up development on its latest generation HBM3E 12H product, which it expects to be its biggest source of HBM shipments in the current quarter. It earned a big design win with Advanced Micro Devices' latest GPU, the MI355X. Analysts expect AMD's latest chip to compete for more share of data center spending against Nvidia, which bodes well for Micron as well. Overall, Micron expects its share of the HBM market to grow to the same level as its total DRAM (general memory chips) market share, about 25%, at some point in the second half of this year. That's pretty rapid progress after starting from a near standstill a few years ago. Importantly, Micron's next-generation HBM4 progress is going well, too, with performance 60% higher than its HBM3E chips with 20% less power consumption. Management says it's delivered samples to customers, and it expects to ramp up volume production next year. The early results are evident in Micron's financials. HBM revenue grew 50% sequentially in its most recent quarter. As a result, total revenue from DRAM sales (of which HBM is a part) climbed 51% year over year. Management expects the ramp in HBM3E to push its gross margin higher this quarter, reaching 42%, up from 39% in its most recent quarter. While HBM is the driving force behind Micron's recent results, it's not the only factor pushing demand for Micron's chips. Device makers are also in need of more traditional memory chips from Micron as it's also an important component for on-device AI capabilities. Everything from PCs and smartphones to automobiles with advanced computing capabilities (like self-driving) need more powerful memory chips. On-device AI capabilities may drive significant smartphone upgrades over the next few years, representing another potential catalyst for Micron. The 80% upside in the stock Micron is making strong progress in the HBM market, and that led Rosenblatt Securities to slap a $200 price target on the stock following its third-quarter earnings report in June. The key factor behind the analyst's Street-high price target, which is an 80% jump from today's price, is the capacity constraints on the market. SK Hynix notably said it had already sold out its entire capacity for 2025 by the end of the first quarter and it expected to finalize its 2026 volume within the first half of the year. "With DRAM wafer capacity expansion over 18 months away, we see this cycle driving Micron's income model to all-time highs," Rosenblatt's Kevin Cassidy wrote in an investor note. He find's Micron's current valuation, less than 14 times forward earnings, as extremely attractive, especially given the strength of its balance sheet and potential earnings leverage. Before investors run out and buy the stock, though, there's an important risk to consider with Micron. It's an extremely cyclical stock. Since it manufactures its chips itself, it has significant capital expenditures for equipment and capacity. A downturn in demand would not only hurt volume but pricing as well, because most of its products aren't very differentiated from SK Hynix or other competitors. That would weigh heavily on earnings. Micron saw a significant shock to its earnings in 2023, as inventory levels rose and demand from China vanished. That said, the strong expected growth in AI spending could provide a huge boost to Micron's revenue and profit margins over the next few years, as long as it's able to maintain leading-edge technology with HBM. That could mean an extended earnings cycle with very strong earnings growth for the next few years. At some point, however, Micron will see a big drop in demand and earnings will severely suffer. But the long-term trends favor growing demand for memory both in data centers and consumer devices and automobiles. As such, Micron is a great value at today's price, especially for investors looking for a way to invest in the growing spending of the hyperscalers without paying up for expensive GPU chipmakers like Nvidia and AMD. Should you invest $1,000 in Micron Technology right now? Before you buy stock in Micron Technology, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Micron Technology wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $635,544!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,099,758!* Now, it's worth noting Stock Advisor's total average return is 1,046% — a market-crushing outperformance compared to 181% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Adam Levy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy. 1 Incredible Artificial Intelligence (AI) Chip Stock to Buy Before It Soars 85% (Hint: Not Nvidia), According to a Select Wall Street Analyst was originally published by The Motley Fool 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
4 days ago
- Automotive
- Yahoo
iNavi Systems Partners with TomTom to Drive Global Expansion for Mobility and Mapping Solutions
iNavi Systems aims to launch mobile and web-based solutions by integrating its proprietary GIS technology with TomTom's advanced mapping and traffic intelligence. Expanding into the global map platform market by attracting leading domestic and international big tech clients. SEOUL, South Korea, August 06, 2025--(BUSINESS WIRE)--iNavi Systems, the leading map platform provider for mobility and autonomous driving in Korea, has signed a global Solution Provider Agreement with TomTom, a global leader in mapping and location technologies. Through this partnership, iNavi Systems will integrate TomTom's global mapping and traffic data, leveraging its core location-based technologies. iNavi is building and enhancing its solutions on top of the TomTom stack, utilizing advanced routing technology to drive the development of a wide array of mobile and web-based solutions. iNavi Systems plans to strengthen its presence in the global map platform market by offering customized solutions tailored to both leading big tech companies in mobility services and small to mid-sized enterprises. The initial phase of solution deployment is scheduled for the second half of this year, beginning in Asia and progressively expanding to Europe, North America, and other global markets. Since 2020, iNavi Systems has been delivering its map platform services, offering optimized route planning APIs and customized navigation software for various mobility sectors, including ride-hailing services and insurance providers. iNavi Systems stated, "This partnership marks a significant milestone in our global expansion of digital map platforms. By offering tailored solutions to domestic and international companies facing regional constraints in scaling their mobility businesses, we will continue to collaborate with TomTom to enhance our market presence and drive growth in the global map platform industry." For over 30 years, TomTom has been reshaping location technology, continuously pushing the boundaries of mapping and mobility. With 3,300 professionals across 23 countries, TomTom provides precise maps, real-time traffic data, and innovative APIs and SDKs. A collaborative approach, powered by open data and strong partnerships, ensures the delivery of accurate and versatile location solutions. Whether for automotive, smart cities, or enterprise applications, TomTom develops technology that helps the world move smarter and more efficiently. View source version on Contacts iNavi Systems CorporationSo-yeon Park+82-2-589-9465psy3274@ 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
4 days ago
- Automotive
- Yahoo
iNavi Systems Partners with TomTom to Drive Global Expansion for Mobility and Mapping Solutions
iNavi Systems aims to launch mobile and web-based solutions by integrating its proprietary GIS technology with TomTom's advanced mapping and traffic intelligence. Expanding into the global map platform market by attracting leading domestic and international big tech clients. SEOUL, South Korea, August 06, 2025--(BUSINESS WIRE)--iNavi Systems, the leading map platform provider for mobility and autonomous driving in Korea, has signed a global Solution Provider Agreement with TomTom, a global leader in mapping and location technologies. Through this partnership, iNavi Systems will integrate TomTom's global mapping and traffic data, leveraging its core location-based technologies. iNavi is building and enhancing its solutions on top of the TomTom stack, utilizing advanced routing technology to drive the development of a wide array of mobile and web-based solutions. iNavi Systems plans to strengthen its presence in the global map platform market by offering customized solutions tailored to both leading big tech companies in mobility services and small to mid-sized enterprises. The initial phase of solution deployment is scheduled for the second half of this year, beginning in Asia and progressively expanding to Europe, North America, and other global markets. Since 2020, iNavi Systems has been delivering its map platform services, offering optimized route planning APIs and customized navigation software for various mobility sectors, including ride-hailing services and insurance providers. iNavi Systems stated, "This partnership marks a significant milestone in our global expansion of digital map platforms. By offering tailored solutions to domestic and international companies facing regional constraints in scaling their mobility businesses, we will continue to collaborate with TomTom to enhance our market presence and drive growth in the global map platform industry." For over 30 years, TomTom has been reshaping location technology, continuously pushing the boundaries of mapping and mobility. With 3,300 professionals across 23 countries, TomTom provides precise maps, real-time traffic data, and innovative APIs and SDKs. A collaborative approach, powered by open data and strong partnerships, ensures the delivery of accurate and versatile location solutions. Whether for automotive, smart cities, or enterprise applications, TomTom develops technology that helps the world move smarter and more efficiently. View source version on Contacts iNavi Systems CorporationSo-yeon Park+82-2-589-9465psy3274@
