Nasdaq NVDA Nvidia

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

Buying and holding shares of growing companies can lead to wealth-building returns. Stocks can be very unpredictable in the short term, but investors can outsmart Wall Street by patiently holding fast-growing companies that have advantages over the competition.

The past several years have been a whirlwind for investors. After soaring to new heights in 2021, the major market indexes did an abrupt about-face, plunging into the worst bull market in more than a decade. But after spending more than a year in the dumps, stocks have come roari

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As artificial intelligence (AI) investing picks up steam, the trend is beginning to look more and more like other bubbles that have burst. It's common to hear: "This time, it's different!" The reality is that history doesn't often repeat itself, but it does rhyme.

Many people would associate artificial intelligence (AI) with chatbots like ChatGPT or even Bard, which was released more recently by Alphabet's Google. It makes sense because the software is consumer-facing. But those platforms wouldn't exist without the advanced semiconductor h

What a difference a few months makes. After being beaten down for much of last year, Nvidia (NASDAQ: NVDA) stock has come roaring back, with shares up 200% (as of this writing) thus far in 2023, more than 13 times the gains of the S&P 500. This is also in stark contrast to it

Is a new bull market here for the S&P 500? It depends on whom you ask. Yes, the index has jumped more than 20% above its previous bear market low. That's enough to qualify as a new bull market for many investors. Others, however, require that the S&P also hit a new all-ti

In today’s stock market, the three largest ETFs by assets under management are all S&P 500 ( SPX ) ETFs. The massive SPDR S&P 500 ETF Trust ( NYSEARCA:SPY ) comes in first at nearly $410 billion. The iShares Core S&P 500 ETF ( NYSEARCA:IVV) comes in second with over $328 billion in assets under management, while the Vanguard S&P 500 ETF ( NYSEARCA:VOO ) is close behind in third place with $313 billion in AUM. Combined, these three S&P 500 giants have over $1 trillion in assets under management between them.  Why are S&P 500 ETFs Appealing to Investors? Why invest in the S&P 500? While it may not sound like the most exciting or exotic investing strategy, it is an effective one. While past performance is no guarantee of future results, the S&P 500 index itself has been a pretty good performer for a really long time. Going back to 1957, when the S&P 500 as we know it was made, the index has posted an average annualized return of 10.15%.  Harnessing the Power of the U.S.'s Top Companies Adding to this appeal, an investment in an S&P 500 ETF gives investors exposure to over 500 of the strongest companies in the United States. An investment in an S&P 500 ETF also gives you instant diversification across sectors and industries. SPY, the world’s largest ETF, holds 503 stocks, and its top 10 holdings account for 30.3% of the fund. Below, you can take a look at SPY’s top 10 holdings. Because the S&P 500 is the underlying index for all of these funds, differences between their portfolios are negligible. Also, because mega-cap tech stocks have come to dominate today's market as the largest stocks in the S&P 500, all three of these ETFs give investors significant exposure to these tech leaders, including Apple ( NASDAQ:AAPL ), Microsoft ( NASDAQ:MSFT ), Amazon ( NASDAQ:AMZN ), Nvidia ( NASDAQ:NVDA ), Tesla ( NASDAQ:TSLA ), Alphabet ( NASDAQ:GOOG ) ( NASDAQ:GOOGL ) and Meta Platforms ( NASDAQ:META ). IVV holds 502 stocks, and its top 10 holdings also make up 30.3% of its holdings. Take a look at IVV’s top 10 holdings below. Lastly, VOO is unsurprisingly similar, with 504 holdings, and its top 10 holdings make up 30.4% of the fund. As you can see, the funds are largely the same, although there are some minor differences based on when the funds rebalance. Dividends SPY, IVV, and VOO all pay dividends, and they currently all yield roughly 1.5%. Because of the S&P 500's strong performance in 2023 (it's up about 14% year-to-date), this yield is a bit low for dividend investors to get excited about, but holders will not be complaining. Long-Term Performance of S&P 500 ETFs Unsurprisingly, because these funds all invest in the S&P 500, there is a high degree of correlation in their long-term performances. However, most importantly, all three have delivered strong long-term returns for investors. As of the end of May, SPY had a three-year annualized total return of 12.8%, a five-year annualized total return of 10.9%, and a 10-year annualized total return of 11.9%. Meanwhile, IVV provided annualized total returns of 12.9% over three years, 11% over five years, and 12% over the last 10 years. Lastly, VOO posted annualized total returns of 12.8%, 11%, and 11.9% over the same time frames, respectively, so all three funds provided investors with very similar double-digit annualized returns over the course of the past decade.  Expense Ratios One area where there is some difference is when it comes to the fees they charge. IVV and VOO both have expense ratios of just 0.03%. Meanwhile, SPY comes in at 0.09%. While 0.09% is a fantastic expense ratio in the overall ETF landscape, it is quite a bit higher than that of IVV and VOO in this comparison. Investors in SPY are paying three times as much in fees as investors in IVV and VOO. See below for a comparison of SPY, IVV, and VOO based on their fees as well as other criteria using TipRanks' ETF Comparison Tool, which lets you compare up to 20 ETFs at a time based on a variety of customizable factors.   Hard to Go Wrong Investing in the S&P 500 has historically delivered strong results for investors for a long time, and investing in an S&P 500 ETF allows you to add the power and future growth of 500+ of the U.S.’s top companies to your portfolio with one investment vehicle.  As you can see in the comparison above, SPY, IVV, and VOO all feature identical ETF Smart Scores of 8. The Smart Score is TipRanks’ proprietary quantitative stock scoring system. It gives stocks a score from 1 to 10 based on eight market key factors. The score is data-driven and does not involve any human intervention. A Smart Score of 8 or above is equivalent to an Outperform rating. It's hard to go wrong with any of these ETFs, and picking between the three is a good problem to have. All three look like great choices for investors. Also, for investors just starting out, these ETFs are nice for instantly diversifying portfolios. With similar portfolios and long-term track records over the past decade, the key difference between these ETFs is their fees. While all have favorable expense ratios, SPY’s comes in three times higher than that of IVV and VOO, making those the best buys. SPY has the longest track record (it launched in 1993, long predating IVV and VOO, which launched in 2000 and 2010, respectively), the most assets under management, and incredible liquidity (it accounts for 20% of ETF trading volume on a daily basis), so there’s certainly nothing wrong with choosing it over its counterparts. Nonetheless, the fees will be a bit higher over time.  Disclosure

Shares of creativity software company Adobe ( NASDAQ:ADBE ) have finally had a chance to ride on the AI wave, with ADBE stock now up an impressive 44% year-to-date. Undoubtedly, the rise of AI can either be a good thing or a bad one for Adobe. At this juncture, it's evident that Adobe has taken AI seriously. The company has been working hard on incorporating AI features well before ChatGPT had its moment in the back half of last year. Adobe's impressive AI tech has won the heart of Wall Street. That said, it's still worth noting that there are competitors, and whether such competitors (think OpenAI) can erode Adobe's time-tested moat surrounding creativity tools remains to be seen. At this juncture, Adobe has more than enough AI talent to defend itself from rivals. If it can keep up in the AI race, it may be in a spot to claw some share away from some up-and-coming rival platforms. Adobe is a solid AI stock, just like the ones that led the charge in the first half. As such, I am bullish on ADBE stock. Adobe's Firefly AI Helps Lift ADBE Stock Firefly (Adobe's AI art generator) is an impressive platform, but it's far from perfect, with a slew of AI art generators out there that may do a better job of giving prompters what they want. Though Adobe Firefly may be "commercially safe," it needs to continue to invest heavily in AI capabilities because it's likely just a matter of time before every AI pure-play joins forces with a licensed digital asset (think image and video) provider. And once that happens, there are bound to be many so-called "commercially safe" art-generating tools. Adobe's ambitious generative AI roadmap has also injected a wave of enthusiasm into the stock. As its tech advances, Adobe has one way of differentiating itself from AI peers: embedding AI tech alongside its existing platforms. Some folks may be content with getting a number of AI-generated results from a simple prompt. Others may require a greater deal of specificity. In that regard, Illustrator or Photoshop with Firefly AI may be a match made in heaven. With such AI-enhanced tools, creators can change the finest details in a given work. Just because AI art generation is improving doesn't mean human-assisted work will become obsolete. As Adobe continues fine-tuning its AI, I believe it can make all its advanced platforms more user-friendly and capable than ever before. Adobe's Second-Quarter Beat and Raise May be Just the Start Adobe's surprising quarterly beat sent shares surging. With analysts revising to the upside over Firefly's monetization potential, we could see Adobe have its very own "Nvidia ( NASDAQ:NVDA ) moment" as consumer demand outweighs original, likely overly-conservative estimates. Indeed, it's prudent to set conservative targets when dealing with the monetization of any new technology. However, I do think management is on the right side of innovation and could continue to serve up more beats and perhaps more guidance raises! For the second quarter, Adobe sees adjusted EPS in the $15.65 to $15.75 range, up from $15.30 to $15.60 previously. ARR (average recurring revenue) from the digital media division is expected to be $1.75 billion for the year. Indeed, analysts, management, and investors are upbeat on Adobe stock right now. At around 32.15 times forward price-to-earnings, Adobe isn't all that expensive for an AI play. Shares are much cheaper than some of its AI-savvy big-tech rivals. As we gain a glimpse of the magnitude of the early AI monetization opportunities, I'd not want to bet against Adobe here. Its latest quarterly beat may be just the start. Is ADBE Stock a Buy, According to Analysts? Turning to Wall Street, ADBE stock comes in as a Moderate Buy. Out of 29 analyst ratings, there are 17 Buys and 11 Holds, and one Sell rating. The  average Adobe stock price target is $542.94, implying upside potential of 12%. Analyst price targets range from a low of $400.00 per share to a high of $600.00 per share. The Bottom Line on Adobe Shares and the AI Momentum Investors are starting to discover how truly capable Adobe is regarding AI. Still, more AI upside could be in the cards as the company continues to use AI tools to change the way we think about digital content creation. Disclosure

How the Application Ecosystem Came to Be

Artificial intelligence (AI) and semiconductor chips have been capturing investors’ collective imagination – and for good reason. Together, they’re driving the technology of the future. Semiconductor chips are ubiquitous in our digital age, and AI has in recent months begun transforming the way we communicate with our machines. The convergence of these two fields implies limitless possibilities. For investors, this is particularly exciting. The Philadelphia Semiconductor Index, the PHLX, which tracks the chip sector through the performance of the 30 largest semiconductor makers, has gained approximately 39% so far this year." The PHLX is up for good reason. Semiconductors have been here for decades, and are found in pretty much everything in today’s digital world, but combined with AI, they’ll be driving tomorrow’s technology. Investors have picked up on this, and have made chip makers the go-to for AI stocks. The question now is, how much more room do the AI chip stocks have to grow? We can consult the Street’s analysts – several top stock pros have been weighing in on AI and semiconductors, and their comments can shed more light on the sector. Let’s take a look at what they have to say, and which AI-related chip giants they’re recommending. Nvidia Corporation ( NVDA) First up is Nvidia, a major name in the semiconductor industry, the eighth largest chip maker by revenue. Nvidia is a leader in the production of graphics processing units (GPUs), and has built its reputation on these high-end chips. The chips are capable of handling the computing power needs of several high-end, processing-intensive applications, including professional graphic design, high-end gaming -- and AI. Demand for Nvidia’s GPUs, especially in the latter application, has powered the stock’s strong gains this year; for the year-to-date, NVDA shares are up approximately 190%. Recent data show that Nvidia’s performance is standing on its AI products. OpenAI, the company that launched ChatGPT, has been using Nvidia’s GPUs since 2020 in training its AI units – to the tune of 20,000 chips. Looking ahead, OpenAI has indicated that it may need another 10,000 chips to maintain ChatGPT efficiency. This is a firm foundation for Nvidia’s success, and the company’s strong position can be inferred from the solid beat it recorded in its recent Q1 financial results. This report showed a total top line revenue of $7.19 billion. While this was down 13% from the prior year, it beat the forecast by an impressive $670 million. The bottom line figure, a non-GAAP EPS of $1.09, was 17 cents per share better than had been anticipated. Better yet, from an investor’s perspective, was Nvidia’s guidance. The company is predicting $11 billion in sales for its fiscal Q2, a massive increase from its previous guidance of $7.2 billion. Achieving this will translate to a 41% year-over-year increase in quarterly revenues. This company’s strength in AI forms the basis for the upbeat comments by Morgan Stanley’s 5-star analyst Joseph Moore, who writes: “NVDA should trade at a premium to peers given the higher probability of upward revisions near term, but the multiple premium vs. those peers has actually narrowed meaningfully... Nonetheless, we do see continued growth in the NVDA data center business, in a multi-year trajectory that should be clearly above all other compute players on a composite basis, given there is no offsetting or cannibalized compute business outside of the AI business.  “As a result," the analyst added, "we see NVDA as the cleanest story in AI hardware, and believe it continues to deserve more consideration from investors looking for AI exposure, even if the current valuation construct and YTD stock return already reflects expectations that are higher than secondary or tertiary players.” To this end, Moore puts an Overweight (i.e. Buy) rating on NVDA, which he has promoted to be his Top Pick. In Moore’s view, NVDA will hit $500 by this time next year, implying a gain of 18.5% from current levels. (To watch Moore’s track record, click here ) Overall, Nvidia gets a Strong Buy rating form the Wall Street analysts’ consensus, based on 33 recent reviews that break down to 30 Buys against just 3 Holds. The shares are trading for $422.09 and the $464.85 average price target suggest a modest 10% upside in the next 12 months. (See NVDA stock forecast ) Advanced Micro Devices ( AMD) AMD, by sales, is perennially one of the top ten largest chip making firms, and saw total revenues of $23.06 billion in the last four quarters (2Q22 through 1Q23). The company boasts a $188 billion market cap, and has a wide portfolio in the AI ecosystem, including high-performance chips and architecture. AMD’s AI exposure incudes its Instinct GPU accelerators, the Alveo Adaptive accelerators, and the EPYC server processors, as well as several lines of chips, including its Ryzen AI mobile processors, and the Versal AI core adaptive SoCs. AMD’s AI chips and accelerators are found in a wide range of applications, from gaming to data centers to supercomputers, and provide the processing speed and capacity needed for generative AI. By the numbers, the company’s recent performance was better than been expected. In the first quarter of this year, AMD showed $5.35 billion in total revenues. While that was down about 9% year-over-year, it beat the forecasts by $40 million. The company’s non-GAAP EPS bottom line of 60 cents per share also beat the forecast, by 4 cents over the estimates. On the negative side, the company’s Q2 revenue guidance of $5.3 billion was considered weak, and was below the $5.52 billion expectations. The company’s AI portfolio provides important support for the firm. AMD is shifting its strategic focus to the emerging AI market, and is investing heavily in both networking and data center AI operations. Getting to specifics, AMD’s new Ryzen 7000 series includes AI processing capabilities, and the MI300 chips are designed for both high-performance computing and AI applications. The latter track will find support from the rapidly growing generative AI field. These are the key points behind Baird analyst Tristan Gerra’s comments on AMD. Gerra, who holds a 5-star rating from TipRanks, says of the company: “Mi300x claims best-in-class TCO performance for inference applications, and management reiterated its expectation for meaningful AI revenue starting in 4Q23 based on multiple hyperscaler engagements. AMD sees a >50% CAGR for data center AI acceleration by 2027, to a $150B+ TAM. While its ecosystem is not as mature as Nvidia, AMD is well positioned to be a key beneficiary of AI secular growth trends for the medium term, in our view.” Based on the above, Gerra sets an Outperform (i.e. Buy) rating on AMD shares, and he gives the stock a price target of $170 to imply a 54.5% upside potential on the 12-month horizon. (To watch Gerra’s track record, click here ) Overall, the Street gives AMD a Moderate Buy consensus rating, based on 29 recent analyst reviews that include 21 Buys and 8 Holds. The stock’s current trading price is $110.01, and its $134.31 average price target suggests that it will appreciate by 22% in the year ahead. (See AMD stock forecast ) To find good ideas for stocks trading at attractive valuations, visit TipRanks’  Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights. Disclaimer : The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

U.S. stocks closed lower on Friday, capping a week dominated by Federal Reserve Chairman Jerome Powell's testimony in which he signaled more interest rate hikes ahead but vowed the central bank would proceed with caution.

With technology stocks surging this year, the iShares Global Tech ETF ( NYSEARCA:IXN) is up nearly 40% year-to-date. What is this red-hot ETF's invest investment strategy, and how does it stack up to the competition? Let’s take a closer look and see if it could be a worthy addition to investor portfolios.  What Does the IXN ETF Do? IXN is a $3.6 billion ETF from BlackRock’s ( NYSE:BLK ) iShares that invests in stocks in the S&P Global 1200 Information Technology 4.5/22.5/45 Capped Index, an index of global equities in the technology sector. Portfolio Composition IXN sports 115 positions, but investors should be aware that its top 10 holdings make up nearly two-thirds of its portfolio, so this is a fairly concentrated fund. Check out the chart below for a breakdown of IXN's top 10 holdings. Top holding Apple ( NASDAQ:AAPL ) makes up a whopping 21.9% of assets, while Microsoft ( NASDAQ:MSFT ) isn’t far behind at 19.9%.  Semiconductor names Nvidia ( NASDAQ:NVDA ), Broadcom ( NASDAQ:AVGO ), and Taiwan Semiconductor ( NYSE:TSM ) round out the top five holdings.  Where the fund differs from other popular tech ETFs like the Invesco QQQ Trust ( NASDAQ:QQQ) and the Technology Select Sector SPDR Fund ( NYSEARCA:XLK) is that it invests globally, not just in companies listed on U.S. exchanges like the Nasdaq ( NDX ), in the case of QQQ, or the S&P 500 ( SPX ), in the case of XLK, so it also owns international tech stocks like ASML Holding ( NASDAQ:ASML ) and Samsung Electronics. While 81% of the fund’s investment is in U.S. companies (as of the end of Q1), mostly thanks to the massive market caps of the U.S. tech giants, it also invests in companies from Taiwan, Japan, South Korea, the Netherlands, Germany, and beyond.  By subsector within technology, IXN currently invests 38.6% of its assets in software and services, 33.7% in tech hardware and equipment, and 27.3% in semiconductors and semiconductor equipment. The rest gets allocated to "cash and/or derivatives." Is IXN Stock a Buy, According to Analysts? Turning to Wall Street, IXN has a Moderate Buy consensus rating from analysts, as 62.6% of analyst ratings are Buys, 32.3% are Holds, and 5.1% are Sells. At $63.70, the  average IXN stock price target implies 5.3% upside potential. IXN's Long-Term Performance IXN has posted some really strong returns over time. As of the end of May, it has generated a three-year annualized total return of 18%. Going out to five years, it has an annualized total return of 17.2%, and over the past decade, it has an annualized total return of 18.2%. As you can see, IXN has been remarkably consistent in providing its investors with outstanding total returns for a very long time. Now, let’s see how IXN stacks up against the competition.  These results make IXN one of the rare investment products that can say it "beats the market" over time. As of the end of May, the Vanguard S&P 500 ETF ( NYSEARCA:VOO) , a good proxy for the S&P 500 as a whole, put up annualized total returns of 12.8%, 11%, and 11.9% over the past three, five, and 10 years, respectively.  But let’s also compare IXN specifically to the two other aforementioned major technology ETFs, QQQ and XLK. Over the same time horizon, as of the end of May, QQQ has posted annualized total returns of 14.8%, 16.2%, and 17.9% over the past three, five, and ten years, respectively. Using the same parameters, XLK has posted annualized total returns of 19.9%, 20%, and 19.6% over the past three, five, and 10 years respectively. So, IXN actually slightly outperforms the more well-known QQQ over various time frames over the past decade, albeit by a narrow margin at the 10-year mark, and has slightly underperformed XLK.    IXN's Fees -- Are They High? As you can see, IXN is an ETF with a worldwide portfolio of tech stocks that is beating both the S&P 500 and edging out the Nasdaq over time. The only two negatives to point out are the aforementioned reliance on Apple and Microsoft and the second concern, which is its expense ratio. While a 0.4% expense ratio isn’t anything out of the ordinary in the ETF market, it is quite a bit higher than QQQ, which has an expense ratio of just 0.2%, or XLK, which charges just 0.1%.  Assuming current expense ratios remain the same, and the funds all return 5% a year, an investor allocating $10,000 into IXN will have paid $505 in fees over 10 years versus $255 in fees for QQQ and just $128 for XLK.  Below, you can take a look at a comparison between IXN, QQQ, and XLK using TipRanks' ETF comparison tool, which enables users to compare up to 20 ETFs at once using a customizable array of parameters. Investor Takeaway As you can see above, all three of these ETFs are up big year-to-date (around 35-40%), and all three have ETF Smart Scores of 8 out of 10, an Outperform rating. The Smart Score is TipRank’s proprietary quantitative stock scoring system. It gives stocks a score from 1 to 10 based on eight key market factors. IXN’s fees are higher than those of peers like QQQ or XLK, and the fund has quite a bit of exposure to Apple and Microsoft (which, combined, make up over 40% of assets), but with the types of returns it has provided, these may be facts that investors are willing to overlook (Note that XLK also has similar exposure to Apple and Microsoft). Keep in mind that an investor who put $10,000 into IXN 10 years ago would now have over $50,000 today, so this is clearly the type of ETF that can help investors build long-term wealth. I also like the fact that IXN offers a bit more geographic diversification than the average tech ETF, thanks to the fact that it invests globally and holds stocks like Samsung and ASML, which differentiates it from its peers.  At the end of the day, it's hard to go wrong with any of these three ETFs, as they all have been great investments over the long term, and they continue to look well-positioned for the future. Disclosure

U.S. stocks closed lower on Friday, capping a week dominated by Federal Reserve Chairman Jerome Powell's testimony in which he signaled more interest rate hikes ahead but vowed the central bank would proceed with caution.

In this video, I will discuss a chip giant following in Nvidia's (NASDAQ: NVDA) footsteps by creating hardware and software solutions for the artificial intelligence (AI) market. Check out the short video to learn more, consider subscribing, and click the special offer link below

U.S. stocks fell broadly on Friday, capping a week dominated by U.S. Federal Reserve Chairman Jerome Powell's testimony in which he signaled more interest rate hikes ahead but vowed the central bank would proceed with caution.

Dividends took the lead among investing themes towards the end of 2022, but megacap tech growth has stolen the show. Whether via spikes for names like Nvidia (NVDA) or simply by growth for the S&P 500, tech has overshadowed dividends. Still, dividends have powerful benefits outside of the admittedly potent mix of current income and [...] Read more at ETFtrends.com.

Alphabet’s GOOGL Google is leaving no stone unturned to explore uncharted territories on the back of its strong AI capabilities.This is evident from the latest introduction of an anti-money laundering tool, namely Anti-Money Laund

Wall Street's main indexes fell on Friday and were set for weekly declines as hawkish comments from Federal Reserve officials fueled worries of interest rates staying higher for longer.