Nasdaq NVDA Nvidia

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

Nvidia (NASDAQ: NVDA) has been one of the hottest stocks on the market in recent months, and that's not surprising, as the company has played a critical role in the artificial intelligence (AI) revolution.

Interest in artificial intelligence (AI) has skyrocketed since the start of 2023, with the launch of OpenAI's ChatGPT kicking off a boom in the industry. As a result, many tech stocks have enjoyed significant gains over the last 12 months as investors have grown bullish over the

Investing in solid companies and holding them for a long time is a robust strategy that could help investors significantly boost their wealth in the long run and construct a million-dollar portfolio. This strategy allows investors to capitalize on disruptive and secular growth tr

Everyone is talking about artificial intelligence (AI) these days, and for good reason. This hot technology that's driven some stocks to triple-digit gains has the potential to transform everything from our daily lives to how a company operates. AI's powers range from the simple,

Artificial intelligence (AI) stocks are zooming. Even the private market is going like gangbusters. Right now, more than one-fifth of all venture capital funding is going toward AI start-ups, According to a report from Crunchbase.

When people think of artificial intelligence (AI), they gravitate to graphics processing unit (GPU) chip leader Nvidia (NASDAQ: NVDA) -- and rightly so. Nvidia currently has a huge lead making the chips needed for today's most advanced AI applications.

Investors are highly anticipating Q1 earnings from Nvidia NVDA next week with the broader indexes printing fresh highs fueled by reassuring inflationary data in April.

The S&P 500 Index ($SPX ) (SPY ) Friday closed up +0.12%, the Dow Jones Industrials Index ($DOWI ) (DIA ) closed up +0.34%, and the Nasdaq 100 Index ($IUXX ) (QQQ ) closed down -0.06%. US stock indexes settled mixed on Friday as they consolidated just below this week’s...

Walmart’s WMT beat-and-raise quarterly release should ordinarily provide favorable read-throughs for Target TGT, which is scheduled to report results before the market’s open on Wednesday, May 22nd. But the two companies have diff

Nvidia ( NASDAQ:NVDA ) is the kingpin of the artificial intelligence (AI) revolution. Its GPUs (graphics processing units) have become synonymous with cutting-edge AI-enabled applications, powering everything from ChatGPT to autonomous vehicles and medical diagnostics. With its relentless innovation and strategic partnerships, Nvidia continues to shape the landscape of AI, driving further advancements. Despite the high trailing valuation (71.3x earnings), I find it hard to be anything but bullish on NVDA stock. NVDA stock has gained 198% in the past year. Nvidia Earnings Are Coming Up — What to Expect Nvidia could be poised to exceed expectations once again with the company due to report earnings on May 22. Analysts are anticipating adjusted diluted earnings per share (EPS) of $5.59 for the quarter ending on April 28 — or GAAP EPS of $5.18. In the last 90 days, there have been 35 positive revisions and only two negative revisions to the company’s Q1 earnings expectations. These projections represent a 413% increase year-over-year. Revenue is expected to come in at $24.47 billion. In turn, this would represent a staggering 240% increase year-over-year. Nvidia’s official guidance for Fiscal Q1 2025 (the current quarter), announced at the conclusion of the previous quarter, indicated anticipated revenues of $24 billion, with a margin of error of plus or minus 2%. However, Nvidia has developed a track record of beating and outperforming its revenue and earnings expectations. The company has actually beaten revenue expectations in all of the last eight quarters. Plus, it has beaten earnings expectations in six of the last eight quarters and has surpassed all forecasts in the past 12 months. This is certainly a positive trend for Nvidia. Moreover, investors will be looking at the impressive quarterly results posted by two of Nvidia’s key suppliers — Taiwan Semiconductor ( NYSE:TSM ) and SK Hynix. The latter — the world’s second-largest memory chip maker — attributed its impressive growth to a boom in AI demand. SK Hynix said that sales reached 12.43 trillion South Korean Won in Q1, a 144% increase from a year ago. Meanwhile, TSMC’s sales rose 12.9% in the first quarter. The impressive showings of these Nvidia suppliers suggest a positive outlook for the Santa Clara company’s upcoming results. Nvidia: Still the AI Kingpin Nvidia is the kingpin of AI. And for now, there doesn’t appear to be much risk of this changing. The company is continuing to innovate. Its latest innovation, the Blackwell Architecture, offers a massive performance boost versus earlier chipsets. For certain tasks, the GB200 NVL72 is up to 30x faster than its predecessor, the H100. However, there are some signs of competition. Advanced Micro Devices ( NASDAQ:AMD ) is continuing to invest heavily in the development of its chips. In April, AMD unveiled its latest processors to power AI-enabled personal computers. Meanwhile, big tech companies like Google ( NASDAQ:GOOGL ) ( NASDAQ:GOOG ), Microsoft ( NASDAQ:MSFT ), Amazon ( NASDAQ:AMZN ), and Meta ( NASDAQ:META ) are designing their own AI chips to reduce their reliance on Nvidia. These custom-made chips cater to their specific needs but could eat into Nvidia’s market share, as these companies also represent major customers currently. Chinese companies may one day represent a threat to Nvidia as well. Although, for now, they appear some way behind. According to Reuters, two Chinese chipmakers are looking to manufacture high bandwidth memory (HBM) semiconductors used in AI chipsets. It comes as the U.S. and its allies have tightened Chinese access to advanced chip technology. Nevertheless, given China’s persistence and investments in the area, Chinese chips could possibly represent a threat to Nvidia’s leadership in the future. Nvidia’s Value Proposition Nvidia certainly doesn’t look cheap at 71.3x non-GAAP TTM earnings and 36.6x non-GAAP forward earnings. However, as the difference between the TTM and forward figures highlights, the value is in the company’s growth prospects. Nvidia’s earnings are expected to grow at 34.5% annually over the medium term — the next three to five years. In turn, Nvidia’s price-to-earnings-to-growth (PEG) ratio is just 1.06x (1.0x and under is traditionally considered undervalued). I find this to be a particularly attractive metric, given the company’s strong net cash position. Is Nvidia Stock a Buy, According to Analysts? Nvidia stock comes in as a Strong Buy based on the ratings of 42 analysts in the past three months. There are currently 40 Buys, two Holds, and zero Sell ratings. The  average NVDA stock price target is $1,027.95, with a high forecast of $1,400 and a low forecast of $620. The average price target represents 11.15% upside potential. The Bottom Line on Nvidia Stock Nvidia stock isn’t trading too far below its average stock price target, but I think that reflects the strong momentum of the share price. Analysts may be simply struggling to keep up with the stock’s growth in recent months. Nonetheless, I’m bullish on Nvidia, given its near-term dominance in the AI chip sector and its very strong growth trajectory. I’m already an investor in Nvidia, but I certainly wouldn’t think twice about putting my money behind a company of this caliber with a PEG ratio of 1.06x. Disclosure   

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

Often asked for his economic opinion and outlook, JPMorgan Chase JPM CEO Jamie Dimon alluded to concerns of a broader economic slowdown and the possibility of a large stock market correction while speaking with Bloomberg on T

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In an eventful week for the markets, this morning we take a break. Aside from Leading Economic Indicators in the U.S. for April (expected to be down -0.3%, same as the previous month), we’ll hear from Fed Governor Christopher Wall