Nasdaq NVDA Nvidia

Looking for broad exposure to the Technology - Semiconductors segment of the equity market? You should consider the iShares Semiconductor ETF (SOXX), a passively managed exchange traded fund launched on 07/10/2001.

When Meta Platforms (NASDAQ: META) announced that it is open-sourcing its artificial intelligence model there were some surprising winners. In this video, Motley Fool Contributor Travis Hoium highlights why Apple (NASDAQ: AAPL) and Qualcomm (NASDAQ: QCOM) are likely to benefit fr

TSMC's (NYSE: TSM) stock dropped 5% on July 20 after the chipmaking giant posted its second-quarter results. Its revenue declined 14% year over year to $15.68 billion but beat analysts' estimates by $300 million. Its earnings per ADR also fell 26% to $1.14 -- its first profit dec

The market for artificial intelligence (AI) technology is a massive growth opportunity. Spending on AI software and systems is expected to grow to over $1 trillion, according to some estimates. But it's important to invest in companies that are actually going to make money from A

Artificial intelligence is expected to pay off big for tech giants including Microsoft and Alphabet someday. But expect deeper investments before gains trickle to the bottom line, the companies said on Tuesday.

While artificial intelligence (AI) continues to be one of the dominant market themes of 2023, the subsequent robust interest makes individual sector plays either overvalued or extremely risky. Fortunately, with Chinese technology juggernaut Alibaba ( NYSE:BABA ), investors may enjoy a compelling AI trade at a discount. Therefore, I am bullish on BABA stock. BABA Stock Undercuts the AI Hype Train To be sure, AI represents one of the most significant innovations and therefore, companies are justified in banking on it. For example, Microsoft ( NASDAQ:MSFT ) co-founder Bill Gates shared his views on the digital intelligence wave, stating, “Entire industries will reorient around it. Businesses will distinguish themselves by how well they use it.” Unsurprisingly, Microsoft has been a big winner so far this year thanks to its partnership with OpenAI, the creator of the chatbot ChatGPT. Since the January opener, MSFT shares returned over 47%. Another big winner in the space is Nvidia ( NASDAQ:NVDA ), perhaps most famous for its advanced graphics processing units (GPUs). Of course, AI protocols require intense processing capacity to run quickly and efficiently. Therefore, because experts project burgeoning demand for various AI applications, the narrative bolstered Nvidia’s GPU business. Since the start of this year, NVDA has gained over 210%. Still, the dilemma for investors just entering the arena is the value proposition. Trading at a forward (projected) earnings multiple of 31 times, MSFT isn’t overly expensive, depending on how you classify the underlying company (since it touches multiple sectors). However, it’s not the best bargain you can pick up in the segment. NVDA makes comparisons much clearer. At the moment, NVDA trades at a forward multiple of 58.48, well exceeding the semiconductor sector’s average forward multiple of 28. On the flip side, BABA stock – having gained just 3.3% for the year – is flying under the radar. Alibaba Makes a Case for Itself With so much attention paid to ChatGPT and domestic tech players like Nvidia, it’s easy to forget that Alibaba has been hard at work on its own AI solutions. For example, the Chinese tech juggernaut developed its own ChatGPT-style generative AI tool called Tongyi Qianwen. Potentially accelerating customer adoption of its cloud computing service, Alibaba deserves a closer review. Indeed, Alibaba CEO Daniel Zhang laid out the framework for the forward success of BABA stock during the company’s fiscal fourth-quarter earnings call. “The development of AI technology presents a huge new opportunity for the cloud business because artificial intelligence applications will result in an exponential increase in demand for computing power,” Zhang stated. “This kind of computing power needs to be provided as a kind of public service or infrastructure. So, this is a huge opportunity for us going forward,” the CEO added. According to a CNBC report, ample demand undergirds Tongyi Qianwen, translating to 200,000 enterprise-level customers applying for trial access. In all fairness, BABA stock has been a troubling proposition for many investors because of the woeful trifecta of the COVID-19 crisis, the government crackdown on large tech enterprises, and the steady but slow economic recovery in China. Nevertheless, there’s no denying that popular AI trades have become overheated, and the general pessimism toward Chinese stocks does not represent a unanimous opinion. For example, billionaire Ken Griffin sees upside in the world’s second-largest economy. Therefore, BABA stock can ride coattails on a possible contrarian bullish wave. Enticing Bargain Valuation If the overheated competition and the arguably strong narrative for Alibaba don’t excite investors, one factor might push the hesitant -- BABA stock trades at an enticing bargain valuation. Currently, Alibaba shares trade at a forward multiple of 10.5. This stat has fluctuated over the past several months from a low of 9.37x at the end of December 2022 to a high of 12.87x at the conclusion of last year’s first half. No matter how you cut it, BABA stock looks undervalued. Even better, no matter how you classify Alibaba, whether as a retail specialist or a software provider, the company offers a bargain. The same cannot quite be said about its U.S.-based rival Microsoft, and it absolutely cannot be said about Nvidia. Is BABA Stock a Buy, According to Analysts? Turning to Wall Street, BABA stock has a Strong Buy consensus rating based on 13 Buys, one Hold, and zero Sell ratings. The average BABA stock price target is $142.71, implying 50.25% upside potential. The Takeaway: BABA Stock is AI for Cheaper Although AI offers long-term opportunities for tech investors, right now, most of the usual suspects are overvalued. That’s not the case with BABA stock, though, which offers an attractive forward earnings multiple. While the underlying Chinese economy presents risks, Alibaba offers similar innovations for a massive market. Therefore, it’s a contrarian idea for astute investors. Disclosure

Texas Instruments (TXN) came out with quarterly earnings of $1.87 per share, beating the Zacks Consensus Estimate of $1.76 per share. This compares to earnings of $2.45 per share a year ago. These figures are adjusted for non-recu

Wall Street spent the first day and a half of a busy week sending stocks higher despite the unknowns right around the corner. The buying appears to showcase that investors are growing more confident that the Fed will hike by 0.25%

Thanks to the evolution of the internet and social media, today’s retail investors have access to an increasing amount of investment analytics, news, and research. Many of those resources are free. Registered investment advisors are encountering an increasingly sophisticated group of clients and prospective clients. One way advisors can meet the demands of today’s more [...] Read more at ETFtrends.com.

Logitech LOGI reported better-than-expected results in first-quarter fiscal 2024. The computer peripheral and software maker’s fiscal first-quarter non-GAAP earnings of 65 cents per share beat the Zacks Consensus Estimate of 47 ce

Last week, electric-vehicle pioneer Tesla (NASDAQ: TSLA) turned in a second-quarter report that disappointed investors, who drove shares down nearly 10% on the following day. Revenue and earnings beat Wall Street's estimates, but investors were not pleased about the continued sli

Nvidia (NASDAQ: NVDA) has been the poster child for the artificial-intelligence (AI) revolution, with the stock up 212% this year, following blowout guidance in late May.

Below is Validea's guru fundamental report for NVIDIA CORP (NVDA). Of the 22 guru strategies we follow, NVDA rates highest using our Quantitative Momentum Investor model based on the published strategy of Wesley Gray. This momentum model looks for stocks with strong and consiste

This video focuses on a recent partnership between Meta Platforms (NASDAQ: META), Qualcomm (NASDAQ: QCOM), and Microsoft (NASDAQ: MSFT). The partnership aims to bring AI workload to local devices, which may concern Nvidia (NASDAQ: NVDA) investors. Check out the short video to lea

The video focuses on recent updates impacting Nvidia (NASDAQ: NVDA) and its H100 AI chip, as well as the various AI start-ups that Nvidia is investing in. Check out the short video to learn what semiconductor investors Jose Najarro and Billy Duberstein had to say. Also, consider

Looking for broad exposure to the Technology - Broad segment of the equity market? You should consider the Fidelity MSCI Information Technology Index ETF (FTEC), a passively managed exchange traded fund launched on 10/21/2013.

Over the past ten years, Nvidia's (NASDAQ: NVDA) stock skyrocketed 13,120%. That gain would have turned a $10,000 investment into more than $1.3 million. The same investment in an S&P 500 index fund would only have grown to $27,000.

The ongoing U.S.-China chip war has added a layer of complexity to the future of semiconductor stocks. Washington’s semiconductor export restrictions, and China’s retaliatory ban on the use of Micron’s ( NASDAQ:MU ) chips by its key infrastructure operators, imply future difficulties. More semiconductor companies could bear the brunt of sales and margin loss if the technology and trade war escalates further.  Following the ban on MU,  Robert W. Baird analyst Tristan Gerra highlighted in a note dated May 22 that casualties of the ongoing chip war between the U.S. and China have increased with time. Moreover, the analyst expects a negative impact on more companies in the semiconductor sector if tensions rise further.  More Casualties of the Tech and Trade War The analyst noted that the trade conflict has weighed on Ambarella’s ( NASDAQ:AMBA ) market share in the surveillance camera market in China. Meanwhile, Qualcomm ( NASDAQ:QCOM ) could lose market share to MediaTek, a Taiwan-based fabless semiconductor company, in the smartphone market.  It’s worth highlighting that a significant portion of Qualcomm’s business is concentrated in China. Thus, the U.S.-China trade and national security tensions increase the concentration risk for the company. QCOM sees continued intense competition in China and expects the ongoing tensions to negatively impact its business.  Ambarella, like many other companies, highlighted that trade tensions between both countries have been escalating, which has created an uncertain business environment. While export controls do not restrict the company’s current products, it believes that stringent export restrictions could impact its future business in China. Further, the company thinks that retaliation from the Chinese government could take a toll on its financials.  The management of Intel ( NASDAQ:INTC ), another significant semiconductor manufacturer, has stated that the trade restrictions, which apply to some of its products, have affected customer ordering patterns in China, which has led to reduced sales. Moreover, future restrictions will likely hurt its financial performance, as revenue from billings to China contributed about 27% to its total revenue in 2022. The U.S. Chip Companies Lobby Against More Restrictions The  top executives from semiconductor companies, including Intel, Qualcomm, and Nvidia ( NASDAQ:NVDA ), met with Biden administration officials to discuss China trade policy and convince them to refrain from implementing stricter export restrictions. The move comes after the Biden administration indicated it would further strengthen its export controls to China.  China is an important market for all these companies, as they generate a considerable portion of their revenues and margins from the Chinese market. Thus, the passage of any stricter laws on exports will likely hurt their market share, revenues, and overall business. These semiconductor businesses still deal with geopolitical and security challenges, regardless of whether the Biden administration goes forward with a tighter export policy. Against this backdrop, let’s understand what the Street recommends for these  chip stocks. What's the Best Semiconductor Stock to Buy Right Now? TipRanks’  Stock Comparison tool shows that Advanced Micro Devices ( NASDAQ:AMD ) and Nvidia sport a Strong Buy consensus rating. Moreover, shares of both of these companies also carry a Strong Buy consensus rating from the  Top Wall Street analysts. The significant growth opportunity from growing  AI (Artificial Intelligence) applications keeps analysts bullish on these stocks. Investors should note that TipRanks identifies the Top Wall Street analysts per sector, per timeframe, and against different benchmarks. The ranking shows an analyst’s ability to deliver higher returns through recommendations. Besides for AMD and NVDA, Wall Street analysts are cautiously optimistic about MU, QCOM, and AMBA stocks. As for INTC, which is scheduled to announce Q2 earnings on July 27, analysts maintain a Hold. Analysts expect Intel to post a  loss of $0.04 a share in Q2, compared to earnings of $0.29 a share in the prior-year quarter.  The Factory underload charges, increased sample costs, and higher inventory reserves will likely hurt INTC’s margins and profitability in Q2. Further, the risk of market share losses keeps analysts sidelined.  Disclosure 

Some investors are giving the shares of dividend-rich companies a second look as expectations grow that the Federal Reserve is nearing the end of a rate-hiking cycle that has lifted bond yields to their highest level in nearly two decades.

Driven by a surge in demand for artificial intelligence, Taiwanese chip maker TSMC plans to invest nearly T$90 billion ($2.87 billion) in an advanced packaging facility in northern Taiwan, the company said on Tuesday.