Latest news with #chipindustry
Yahoo
5 days ago
- Business
- Yahoo
3 Top Tech Stocks to Buy in June
Nvidia's recent earnings results show that the AI train remains full speed ahead. The Trade Desk quickly put a Q4 hiccup behind it with stellar Q1 2025 performance. Meta Platforms continues to produce, with AI growth opportunities on the horizon. 10 stocks we like better than Nvidia › After a rocky couple of months in the stock market due to uncertainty regarding U.S. trade policy, it seems the storm clouds, for now, are beginning to part. Meanwhile, some of the leading technology companies continue to demonstrate stellar business performance. It's never a bad idea to invest slowly and steadily in quality stocks that go out and earn your capital. Here are some of the top technology stocks that you should consider nibbling on in June. Recent earnings from Nvidia (NASDAQ: NVDA) show that artificial intelligence (AI) momentum is alive and well. The company's leadership in AI data center chips continues to drive staggering growth, including a 69% year-over-year increase in revenue in Q1 of Nvidia's fiscal year 2026, a 12% rise from the previous three months. Nvidia beat analyst estimates for both revenue and earnings, and its Q2 guidance was roughly on par with Wall Street's expectations, despite a forecast $8 billion revenue loss due to government restrictions on chip sales to China. Nvidia's growth continues to highlight the ongoing investments companies are making in hardware to build the infrastructure needed to fuel widespread AI adoption over the coming years, as well as in upcoming industries, such as robotics and autonomous vehicles. Analysts estimate that Nvidia will grow earnings by an average of 29% annually over the long term, which easily justifies buying perhaps the world's leading AI stock at its recent price-to-earnings (P/E) ratio of 48. It sounds dramatic to call AI a once-in-a-lifetime growth opportunity, but Nvidia, at least for now, continues to justify the hype with its business results. Independent adtech company The Trade Desk (NASDAQ: TTD) took quite a tumble after an uncharacteristically poor quarter in Q4 of last year. The company's technology platform enables companies to purchase digital ad inventory, match it with their target audience, and track the performance of their ads. It's a leading alternative for advertisers beyond the powerful, but closed, ecosystems of Google (Alphabet) or Meta Platforms (NASDAQ: META). However, the stock has begun to rebound. The Trade Desk's Q1 2025 results blew by analyst estimates, an encouraging sign that the business remains in tip-top shape in a digital advertising market that continues to grow. The Trade Desk has transitioned about two-thirds of its customers to its new Kokai platform, which utilizes AI algorithms to help advertisers optimize their programmatic ad spending and campaign performance. The Trade Desk has a long track record of profitable growth, and a trillion-dollar global advertising market offers plenty of runway for that to continue. The stock's enterprise value-to-sales ratio was a steep 29 at the end of last year. It has since dropped to 14, allowing investors to buy this adtech winner at a significant discount to its previous valuation. Social media is a massive advertising landscape, and Meta Platforms has dominated it for years. The company's family of apps -- Facebook, Instagram, WhatsApp, and Threads -- has a staggering 3.43 billion daily active users. It's a cash cow that generated more than $10 billion in free cash flow in Q1 2025 alone, which is remarkable considering the billions of dollars Meta Platforms is investing in AI projects. Meta Platforms continues to grow its user base and core advertising business. However, its AI projects could be game changers over the next decade. CEO Mark Zuckerberg is attempting to create a new consumer ecosystem beyond smartphones, featuring augmented reality headsets and smart glasses. Additionally, Meta developed and open-sourced its foundational AI model, Llama, which crossed 1 billion downloads in March. Analysts expect Meta Platforms to grow its earnings by an average of 18% annually over the long term, and there may be upside to that as its AI investments eventually bare fruit. The "Magnificent Seven" stock trades at a P/E of about 25, which is arguably a bargain for a company with its anticipated growth, and one of the most dominant core businesses you'll find. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nvidia 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 $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, Nvidia, and The Trade Desk. The Motley Fool has a disclosure policy. 3 Top Tech Stocks to Buy in June was originally published by The Motley Fool
Yahoo
5 days ago
- Business
- Yahoo
3 Top Tech Stocks to Buy in June
Nvidia's recent earnings results show that the AI train remains full speed ahead. The Trade Desk quickly put a Q4 hiccup behind it with stellar Q1 2025 performance. Meta Platforms continues to produce, with AI growth opportunities on the horizon. 10 stocks we like better than Nvidia › After a rocky couple of months in the stock market due to uncertainty regarding U.S. trade policy, it seems the storm clouds, for now, are beginning to part. Meanwhile, some of the leading technology companies continue to demonstrate stellar business performance. It's never a bad idea to invest slowly and steadily in quality stocks that go out and earn your capital. Here are some of the top technology stocks that you should consider nibbling on in June. Recent earnings from Nvidia (NASDAQ: NVDA) show that artificial intelligence (AI) momentum is alive and well. The company's leadership in AI data center chips continues to drive staggering growth, including a 69% year-over-year increase in revenue in Q1 of Nvidia's fiscal year 2026, a 12% rise from the previous three months. Nvidia beat analyst estimates for both revenue and earnings, and its Q2 guidance was roughly on par with Wall Street's expectations, despite a forecast $8 billion revenue loss due to government restrictions on chip sales to China. Nvidia's growth continues to highlight the ongoing investments companies are making in hardware to build the infrastructure needed to fuel widespread AI adoption over the coming years, as well as in upcoming industries, such as robotics and autonomous vehicles. Analysts estimate that Nvidia will grow earnings by an average of 29% annually over the long term, which easily justifies buying perhaps the world's leading AI stock at its recent price-to-earnings (P/E) ratio of 48. It sounds dramatic to call AI a once-in-a-lifetime growth opportunity, but Nvidia, at least for now, continues to justify the hype with its business results. Independent adtech company The Trade Desk (NASDAQ: TTD) took quite a tumble after an uncharacteristically poor quarter in Q4 of last year. The company's technology platform enables companies to purchase digital ad inventory, match it with their target audience, and track the performance of their ads. It's a leading alternative for advertisers beyond the powerful, but closed, ecosystems of Google (Alphabet) or Meta Platforms (NASDAQ: META). However, the stock has begun to rebound. The Trade Desk's Q1 2025 results blew by analyst estimates, an encouraging sign that the business remains in tip-top shape in a digital advertising market that continues to grow. The Trade Desk has transitioned about two-thirds of its customers to its new Kokai platform, which utilizes AI algorithms to help advertisers optimize their programmatic ad spending and campaign performance. The Trade Desk has a long track record of profitable growth, and a trillion-dollar global advertising market offers plenty of runway for that to continue. The stock's enterprise value-to-sales ratio was a steep 29 at the end of last year. It has since dropped to 14, allowing investors to buy this adtech winner at a significant discount to its previous valuation. Social media is a massive advertising landscape, and Meta Platforms has dominated it for years. The company's family of apps -- Facebook, Instagram, WhatsApp, and Threads -- has a staggering 3.43 billion daily active users. It's a cash cow that generated more than $10 billion in free cash flow in Q1 2025 alone, which is remarkable considering the billions of dollars Meta Platforms is investing in AI projects. Meta Platforms continues to grow its user base and core advertising business. However, its AI projects could be game changers over the next decade. CEO Mark Zuckerberg is attempting to create a new consumer ecosystem beyond smartphones, featuring augmented reality headsets and smart glasses. Additionally, Meta developed and open-sourced its foundational AI model, Llama, which crossed 1 billion downloads in March. Analysts expect Meta Platforms to grow its earnings by an average of 18% annually over the long term, and there may be upside to that as its AI investments eventually bare fruit. The "Magnificent Seven" stock trades at a P/E of about 25, which is arguably a bargain for a company with its anticipated growth, and one of the most dominant core businesses you'll find. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nvidia 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 $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, Nvidia, and The Trade Desk. The Motley Fool has a disclosure policy. 3 Top Tech Stocks to Buy in June was originally published by The Motley Fool
Wall Street Journal
28-05-2025
- Business
- Wall Street Journal
Nvidia Stock Climbs After Earnings Show a Sales Surge
Nvidia shares rose about 4.6% in postmarket trading after the chip giant reported that sales continue to boom despite limits on how it does business in China. Revenue of $44.06 billion exceeded analyst expectations of $43.34 billion. Data-center revenue soared 73%, slightly below analyst estimates gathered by FactSet. Adjusted net income for the quarter came in at $19.89 billion, up 31% from $15.24 billion last year and including a $4.5 billion charge for inventory on chips that Nvidia had designed for the Chinese market. For the current quarter, Nvidia projected revenue of $45 billion, plus or minus 2%, compared with analyst views for $45.92 billion. The company said this includes $8 billion in lost revenue due limits on its exports to China. Read more:
Yahoo
22-05-2025
- Business
- Yahoo
BMO Backs Alphabet (GOOGL), Says AI Search Fears Overblown
We recently published a list of . In this article, we are going to take a look at where Alphabet Inc. (NASDAQ:GOOGL) stands against other AI stocks that are making waves on Wall Street today. The United States recently issued guidance threatening companies not to use advanced computer chips from China, including Huawei's Ascend AI chips. However, China has now urged the country to 'immediately correct its wrongdoings' and stop 'discriminatory' measures against it. A spokesperson for China's Ministry of Commerce has said that the United States has abused its export control measures. He said that the country has imposed stricter restrictions on Chinese chip products based on unfounded allegations, further explaining how the said restrictions contain discriminatory measures and tend to distort the market. The U.S. Commerce Department had issued the guidance last week, with its Bureau of Industry and Security stating that 'these chips were likely developed or produced in violation of U.S. export controls.' 'The U.S. has been abusing export control measures, imposing stricter restrictions on Chinese chip products under unfounded accusations… China firmly opposes this… Trying to trip others won't make oneself run faster.' Opposing the unilateral bullying from the US's end, the Chinese spokesperson said that the restrictions have infringed upon the legitimate rights and interests of Chinese companies. The country has been accused of undermining the preliminary trade agreement reached in Geneva, Switzerland. The spokesperson further urged the country to work with China to jointly safeguard the consensus concluded in the Geneva talks. 'If the United States continues to cause China substantive harm, China will take resolute measures to safeguard its legitimate rights and interests.' For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A laptop and phone open to Google's services in an everyday Inc. (NASDAQ:GOOG) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses. One of the most notable analyst calls on Tuesday, May 20, was for Alphabet Inc. BMO reiterated the stock as 'Outperform' with a $200 price target. The firm said its survey checks of fears over Alphabet search competition are unwarranted. 'Fears that Google Search will be disrupted by AI Search competitors are overblown, as users report higher levels of loyalty to Google and satisfaction with Google's AI Overviews. Reiterate Outperform and $200 Target Price.' Overall, GOOGL ranks 3rd on our list of AI stocks that are making waves on Wall Street today. While we acknowledge the potential of GOOGL 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 GOOGL 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. Sign in to access your portfolio
Reuters
13-05-2025
- Business
- Reuters
Explainer: How China's chip equipment manufacturing sector stacks up
BEIJING, May 14 (Reuters) - SiCarrier, a Chinese chip equipment maker with close links to Huawei, has created a stir with the breadth of its planned product range. Its efforts to become a one-stop shop for all tools needed to semiconductors illustrate how the sector - still relatively young in China - is responding to President Xi Jinping's call to reduce the country's reliance on foreign suppliers. Here is an overview of China's chip equipment sector, including some of its main players: Domestically made wafer fabrication equipment accounted for just 11.3% of purchases by China last year, according to data from consultancy TechInsights. That is, however, up from 5.1% in 2020 when the U.S. started curbing chip sector exports, prompting China to begin pouring billions more into its domestic industry. China has been the biggest buyer of wafer fabrication equipment for the past two years. In 2024, it purchased $41 billion worth of tools, accounting for 40% of global sales, according to TechInsights. ASML ( opens new tab of the Netherlands is the world's sole manufacturer of the most advanced lithography systems that make patterns on substrates. But the U.S. has, since 2019, blocked ASML from selling its extreme ultraviolet (EUV) lithography tools to China. That forced Chinese firms to import less sophisticated deep ultraviolet (DUV) lithography systems to make 7-nanometre chips. Last year, Washington also denied China access to ASML's advanced immersion DUV machines. Shanghai Micro Electronics Equipment Group (SMEE), China's only company with commercially available lithography systems, has equipment that can support the production of 90 nm chips, well behind ASML. SiCarrier's patents indicate it is working on DUV lithography systems, but the startup has yet to unveil those products. An advanced semiconductor production line needs more than 3,000 tools spanning patterning, process and inspection. China's self-sufficiency ratio for equipment capable of manufacturing chips of 7nm or below is still less than 10%, according to consultancy IDC. China's self-sufficiency ratio for equipment used in photo-resist removal and cleaning has reached 50%, according to Galen Zeng, a senior semiconductor analyst at IDC. Naura ( opens new tab and ACM Research Shanghai ( opens new tab are among domestic providers of such tools. Naura has the broadest product portfolio covering deposition, which layers thin films on silicon wafers, and dry etching as well as thermal processing and cleaning. Its revenues hit 29.8 billion yuan ($4.1 billion) in 2024, five times more than in 2020. Advanced Micro-Fabrication Equipment Inc (AMEC) ( opens new tab is another large Chinese chip equipment maker. It focuses on dry etching tools that remove excess material from the surface of silicon wafer, but is also rapidly expanding in deposition equipment. AMEC's revenues have also jumped, quadrupling since 2020 to 9.1 billion yuan last year. ($1 = 7.2111 Chinese yuan)
