Nasdaq NVDA Nvidia

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

The S&P 500 and Dow slipped on Wednesday as Federal Reserve Chairman Jerome Powell warned of an extended period of weak growth and stagnant incomes, while he also dismissed speculation over negative interest rates.

Semiconductor designer Advanced Micro Devices (NASDAQ: AMD) is a big winner these days. The stock has been crushing the broader market as well as archrivals Intel (NASDAQ: INTC) and Nvidia (NASDAQ: NVDA) over the last two years:

Intel (NASDAQ: INTC) recently agreed to buy Moovit, an Israeli MaaS (mobility as a service) solutions company, for $900 million to strengthen its automotive unit Mobileye. Intel acquired Mobileye, which is also based in Israel, for over $15 billion in 2017.

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares PHLX Semiconductor ETF (Symbol: SOXX) where we have detected an approximate $84.3 million dollar inflow -- that's a 3.3% increase week over

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

Looking at the sectors faring best as of midday Monday, shares of Healthcare companies are outperforming other sectors, higher by 1.4%. Within that group, Cardinal Health, Inc. (Symbol: CAH) and Vertex Pharmaceuticals, Inc. (Symbol: VRTX) are two of the day's stand-outs, show

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

Amid COVID-19 lockdowns, one area that has fared well is video game stocks. With millions of Americans unable to leave their homes or go to work, video games have become an easily accessible distraction.

NVIDIA (NASDAQ: NVDA) doesn't release its next earnings report until May 21, but results should be strong based on recent trends in gaming. 

The novel coronavirus pandemic is giving dividend-focused investors sleepless nights. Companies are now concerned with preserving their balance sheets to ride out the economic impact of the COVID-19 disease, and that has resulted in dividend cuts and suspensions.

Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in NVIDIA Corp (Symbol: NVDA), where a total of 132,853 contracts have traded so far, representing approximately 13.3 million underlying shares. That amounts to about 118

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

Even during global crises, there will always be winners. With a pandemic ravishing the global economy worldwide, Nvidia (NVDA) has managed to sail through the crisis relatively unscathed. Investors have responded in kind and have sent the stock up by 30% year-to-date.

There are a number of reasons for the strong performance, including being well placed to cater for the stay-at-home environment on several fronts. Nvidia’s heavy exposure to the gaming sector, along with Datacenter and its evolving AI segment, are all secular trends acting in its favor.

But Susquehanna’s Christopher Rolland believes there is one particular reason to be very bullish when considering the GPU’s leader’s prospects.

Last week, after a protracted process pending regulatory approval, Nvidia closed its acquisition of Israeli data center company Mellanox, in a deal worth $6.9 billion.

“We view this deal as a major coup for NVIDIA,” said Rolland, “NVIDIA not only received a wonderful financial asset, but also a fantastic strategic asset as the technical synergies will allow the company to better address networking technologies used in building holistic A.I., HPC and hyperscale systems.”

In February, Rolland predicted that whatever the outcome, Mellanox shareholders were in a win-win situation, either way. On the one hand, the deal’s approval would lead to “a 10% annualized return.” However, if the deal fell through, Mellanox would be worth “substantially more as a stand-alone.” But, eventually, as evidenced on all fronts in 2020, Nvidia emerged the clear winner, as following Mellanox’s recent big Q1 earnings beat, Rolland views “the Mellanox asset to be worth well more than what NVIDIA paid.”

Rolland believes the new addition will contribute roughly $0.40 of accretion for NVIDIA in C2020 and approximately $0.65 of accretion in 2021.

Consequentially, the 5-star analyst keeps a Positive (i.e. Buy) rating on Nvidia shares, while raising the price target - from $330 to $355 to “reflect the accretion.” Investors could be pocketing a 17% gain over the coming months, should Rolland’s forecast materialize. (To watch Rolland’s track record, click here)

All in all, the Street backs up the Susquehanna analyst’s call. The analyst fraternity rates Nvidia a Strong Buy based on 26 Buys, 5 Holds and a lone Sell. Yet, a lot of the optimism is already baked into these analysts' expectations. The 12-month average price target of $308.65 boasts potential upside of just 1% and a change from current levels. (See Nvidia stock analysis on TipRanks)

To find good ideas for tech stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

A compilation of the most active stocks on U.S. exchanges. For faster updates on individual market-movers, Eikon users please use search string "STXBZ US" and Thomson One users please search "RT/STXBZ US".

A compilation of the most active stocks on U.S. exchanges. For faster updates on individual market-movers, Eikon users please use search string "STXBZ US" and Thomson One users please search "RT/STXBZ US".