Nasdaq NVDA Nvidia

December S&P 500 futures (ESZ23) are trending down -0.45% this morning as uncertainties lingered in the Middle East, and investors weighed the possibility of further rate hikes by the Federal Reserve while eagerly awaiting earnings results from U.S. heavyweights Tesla and Netflix.

Wall Street's main indexes were set to open lower on Wednesday as growing tensions in the Middle East spurred safe-haven demand, with investors also focused on earnings to gauge the impact of inflation and high interest rates on businesses.

Morning Markets December E-Mini S&P 500 futures (ESZ2 3) are down -0.48%, and the Dec Nasdaq 100 E-Mini futures (NQZ2 3) are down -0.67%. Stock index futures this morning are moderately lower on this morning’s weaker-than-expected U.S. housing starts report. Also, risks of an escalation in the Israeli-Hamas war weighed...

Wall Street closed mixed on Tuesday following strong economic data and a spike in yields of government bonds. Investors remained concerned that the Fed will continue to pursue tight monetary control for a long period. Shares of ma

Nvidia (NVDA) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Artificial intelligence (AI) stocks have driven the market in 2023 and for good reason. There are billions of dollars being invested in new hardware and software technologies that could change how we live and work.

After surging on Monday to kick off the week, stocks finished rangebound on Tuesday as investors digested more third-quarter earnings reports. The Q3 earnings season is still in the early innings but is off to a solid start. Earni

While stripping China's access to key U.S. artificial intelligence chips, the Biden administration's sweeping new rules also quietly threw Nvidia, Intel and Advanced Micro Devices (AMD) a potential lifeline to preserve lucrative business in one of the world's biggest chip markets.

Asian shares steadied on Wednesday as Chinese economic data suggested Beijing's stimulus measures might finally be gaining traction, only to be overshadowed by fears of a widening conflict in the Middle East that lifted oil prices.

Taiwan's Foxconn, the world's largest contract manufacturer, will build artificial intelligence data factories using Nvidia chips and software to make products including self-driving cars, the companies said on Wednesday.

The Biden Administration’s decision to implement more stringent restrictions on chip exports to China by addressing existing loopholes (like sourcing through foreign subsidiaries) dragged down stocks of Nvidia ( NASDAQ:NVDA ) and other chipmakers on Tuesday. Reacting to the expanded chip curbs, Nvidia said that it does not expect a significant impact on its financial results over the near term. Despite the new chip restrictions and fears about macro pressures impacting business, analysts remain bullish on the stock due to the generative artificial intelligence (AI)-induced demand for NVDA’s products and expect further upside even after a 200% year-to-date rally in the stock. More Stringent Chip Curbs Nvidia's advanced chips, A800 and H800, both of which were modified for the Chinese market to comply with the previous export rules, will be impacted by the latest export regulations. Further, Nvidia said it may be forced to move some of its operations out of one or more countries, as the U.S. has extended the restrictions to more countries other than China. Following the announcement of the new curbs, Nvidia stated, “Given the strength of demand for our products worldwide, we do not anticipate that the additional restrictions will have a near-term meaningful impact on our financial results.” While the trade curbs might not have a notable immediate impact on NVDA’s near-term financials, they could weigh on the company’s long-term sales to some extent. Nevertheless, most Wall Street analysts continue to believe in the company’s ability to capture the opportunities created by the generative AI boom through its high-end and innovative offerings beyond the markets where restrictions are imposed. Analysts Believe in Nvidia’s Solid Long-term Potential On Tuesday, Mizuho analyst Vijay Rakesh noted that Nvidia expects its A100/H100/A800/H800/L40S and the comparable 4090 graphics processing units (GPUs) to be hit by the new restrictions compared to his expectation of just the data center GPUs being impacted. Nonetheless, he believes the overall AI demand remains “VERY strong,” offsetting any near-term impact due to the restrictions. He expects NVDA to offset the loss of sales from key products such as A800/H800 with solid global demand for its A100/H100 and a huge AI backlog into next year. That said, he expects bigger challenges in the longer term, given that China constitutes about 20% of AI market demand (as per his estimates). The extended chip curbs are expected to hurt rivals Advanced Micro Devices’ ( NASDAQ:AMD ) MI250/MI300 and Intel’s ( NASDAQ:INTC ) Gaudi2 technology. While Rakesh expects the dollar impact for AMD and Intel to be significantly smaller than Nvidia, he anticipates longer-term challenges for these companies due to the effect of these curbs on their China roadmaps. He added that most of Intel’s Habana Gaudi2 interest is potentially China-based. Rakesh reiterated a Buy rating on NVDA stock with a price target of $590, which indicates an upside potential of over 34%.   Like Rakesh, KeyBanc analyst John Vinh also maintained his Buy rating on Nvidia with a price target of $750 (nearly 71% upside), though he views the new restrictions as unfavorable for the company. Vinh anticipates the expanded curbs to possibly have a minimal near-term impact on Nvidia based on the company’s ability to replace it with demand from the rest of the world. That said, he does view the news as negative, as it will be difficult for the company to substitute China demand, which historically accounted for 20% to 25% of NVDA’s data center revenues. Assuming a 20% impact to his $101 billion data center revenue estimate for Fiscal 2025, he projects a potential $20 billion revenue impact and a $5 drag on his $25.62 EPS estimate. On Tuesday, BMO Capital analyst Ambrish Srivastava also reiterated a Buy rating on NVDA stock with a price target of $600 (36.6% upside potential). He estimates the extended ban to have a 20% impact on his long-term EPS estimate, assuming zero contribution from China to Nvidia’s data center segment in the worst-case scenario. In such a scenario, where the “ban is permanent, long-lasting, and NVIDIA is unable to have a workaround, similar to the last time such a ban was enacted,” Srivastava cautioned that his price target would come down to about $480 from $600. Is NVDA Stock a Buy Now? Overall, Nvidia stock earns Wall Street’s Strong Buy consensus rating based on 37 Buys and one Hold. The average price target of $650.53 implies 48% upside potential. Conclusion While the expanded chip curbs by the Biden Administration are definitely unfavorable for Nvidia and other chip companies, Wall Street remains bullish on the stock, backed by robust demand for its advanced AI chips, a solid roadmap for its upcoming products, and strong execution.    Disclosure

Asian shares steadied on Wednesday after Chinese economic data suggested Beijing's stimulus measures might finally be gaining traction, though a blast at a Gaza hospital dealt a blow to hopes for containing the conflict there.

Asian shares stuttered on Wednesday as a blast at a Gaza hospital dealt a blow to hopes for containing the crisis, while bonds nursed heavy losses as strong U.S. retail data argued for a punishingly long stretch of high rates.

Nvidia said on Tuesday that new U.S. export restrictions will block sales of two high-end artificial intelligence chips it created for the Chinese market and that one of its top-of-the-line gaming chips will also be blocked.

C3.ai (NYSE: AI) was the beneficiary of some good news on the government front Tuesday. On the back of the latest Biden administration attempt at tightening restrictions on advanced computer chip exports from the U.S. to China, the company's share price saw a more than 6% lift sk

Nvidia said it may be forced to move some business operations out of countries that are in the purview of U.S. export curbs after the Biden administration on Tuesday expanded its restrictions on export of certain high-end technology.

The Nasdaq ended lower while the Dow and S&P 500 were nearly flat on Tuesday as Treasury yields rose and shares of chipmakers fell after the Biden administration said it planned to halt shipments of advanced artificial intelligence chips to China.

What you need to know… The S&P 500 Index ($SPX ) (SPY ) on Tuesday closed down -0.01%, the Dow Jones Industrials Index ($DOWI ) (DIA ) closed up +0.04%, and the Nasdaq 100 Index ($IUXX ) (QQQ ) closed down -0.22%. Stocks on Tuesday settled mixed, with the Dow...

U.S. stocks ended flat to lower on Tuesday as Treasury yields rose and shares of chipmakers fell after the Biden administration said it planned to halt shipments of advanced artificial intelligence chips to China.

This year’s leading stock, Nvidia NVDA took a hit Tuesday in trading after the Biden administration announced plans to halt semiconductor shipments to China. Is this sell-off an opportunity to pick up shares at a discount?