Nasdaq NVDA Nvidia

In this podcast, Motley Fool senior analysts Andy Cross and Jason Moser discuss:

Today's video focuses on Nvidia (NASDAQ: NVDA), its new gaming graphics card that seems to be sold out in major electronic retail stores, and some of its recent automotive solutions. Check out the short video to learn more, consider subscribing, and click the special offer link b

In this podcast, Motley Fool senior analysts Jason Moser and John Rotonti dig into one of the most important industries in the world and discuss:

Taiwan's economy minister has drummed up new business worth T$30 billion ($940 million) in meetings with top executives at four major tech firms in California's Silicon Valley, the ministry said on Saturday.

Thanks to the advent of advanced computing technologies, programmers and engineers have not only forwarded multiple artificial intelligence-based platforms but also delivered practical conveniences that enhanced efficiencies across the board. Yet, arguably, the biggest paradigm shift remains to be realized: fully autonomous self-driving systems. However, with intense research and development occurring in this segment, investors may want to consider planning ahead with three AI stocks to considering buying – GOOG, GM, and NVDA.

To be sure, automating personal mobility carries with it intense responsibility. According to Stanford University’s Human-Centered Artificial Intelligence program, “A lot is at stake every time an autonomous car or plane strikes off on its own. Engineers place great trust in the intelligent systems that see and sense the world and help self-controlled vehicles steer clear of virtually every hazard that might come their way.”

In other words, AI developers must ensure that self-driving vehicles will not create more harm but rather mitigate it. Still, with the rise of the global population, not engineering autonomous solutions can arguably yield even more devastating results.

For instance, the American Transportation Research Institute estimates that congestion causes the U.S. freight sector alone to incur costs of $74.1 billion annually, with $66.1 billion attributed to urban areas. Another study revealed that the average urban commuter wastes about 54 hours each year sitting in traffic. Overall, this dynamic translates to an annual economic cost of $179 billion.

More importantly, human lives are at stake if society does not address traffic volumes, particularly in major metropolitan areas. According to the U.S. Government Accountability Office, it cited research noting that “traffic fatalities during the first half of 2021 increased 18.4% since the first half of 2020.”

In short, automated mobility may help improve economic efficiencies and save lives. To get ahead of a potentially groundbreaking trend, investors ought to consider the below AI stocks to buy.

Alphabet (GOOG, GOOGL)

One of the frontrunners among AI stocks to buy, Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), owns Waymo, the internet giant’s autonomous driving technology firm. Formerly known as the Google self-driving car project, Waymo is pioneering the concept of an autonomous ride-hailing service called Waymo One.

Late last year, the autonomous driving specialist inked a strategic partnership with global auto manufacturer Geely. Per TipRanks reporter Payal Gupta, the “partnership paves the way for the expansion of the Waymo One fleet with Geely’s all-electric vehicles.”

The move represents broader initiatives to integrate a transportation-as-a-service business model that can radically change how people view the broader sharing economy. In addition, Waymo has intentions to eventually unveil an all-electric, fully-autonomous car without a steering wheel.

As a bonus for contrarian investors, Alphabet represents one of the most solid AI stocks to buy. The company features multiple strengths across the fiscal spectrum, including a strong balance sheet, a three-year revenue growth rate that currently runs at 25%, and profitability margins that rank better than most competitors in the interactive media industry.

Is GOOG Stock a Buy, According to Analysts?

Turning to Wall Street, GOOG stock has a Strong Buy consensus rating based on nine Buys, no Holds, and zero Sell ratings. The average GOOG price target is $144.78, implying 48.95% upside potential.

General Motors (GM)

An American automotive icon, General Motors (NYSE:GM), recently made a strong pivot to electric vehicles, replacing some of its classics with an electric-powered motor. At the same time, the company also represents one of the AI stocks to buy for the broader transformation of mobility.

According to another article from TipRanks’ Payal Gupta, GM and its autonomous technology unit Cruise “filed a petition to build and deploy a self-driving car without human controls” in February of this year.

“The petition to the National Highway Traffic Safety Administration is for Cruise Origin, an autonomous electric car designed to operate without a human driver. The car has been purposefully designed to operate without human controls such as steering wheels or brake pedals.”

In addition, GM is also leveraging AI technologies to improve its vehicle inspection process. Through a partnership with Israeli startup UVeye, GM is able to quickly and accurately check certain vehicular components for defects and other safety-related issues.

Contrarians will also appreciate GM for its undervalued business profile. Despite featuring solid profitability metrics – such as a net margin of 6.7% that ranks better than 74% of the competition – the company has an ultra-low forward price-earnings ratio of 5.45x.

Is GM Stock a Buy, According to Analysts?

Turning to Wall Street, GM stock has a Moderate Buy consensus rating based on 11 Buys, four Holds, and one Sell rating. The average GM price target is $53.79, implying 63.55% upside potential.

Nvidia (NVDA)

Perhaps best known for its graphics processing units for gaming applications and cryptocurrency mining, Nvidia (NASDAQ:NVDA) also represents one of the top players among AI stocks to buy. Leveraging various initiatives such as machine learning, the company consistently pushes the envelope, accelerating human potential through advanced computing innovations.

Recently, Nvidia generated headlines when the company unveiled Nvidia Drive Thor, its next-generation centralized computer for safe and secure autonomous vehicles.

According to the tech firm’s press release, Thor “unifies intelligent functions — including automated and assisted driving, parking, driver and occupant monitoring, digital instrument cluster, in-vehicle infotainment (IVI) and rear-seat entertainment — into a single architecture for greater efficiency and lower overall system cost.”

“Advances in accelerated computing and AI are moving at lightspeed,” said Nvidia CEO and founder Jensen Huang. “DRIVE Thor is the superhero of centralized compute, with lightning-fast performance to deliver continuously upgradable, safe, and secure software-defined supercomputers on wheels.”

NVDA represents another potentially undervalued market idea among AI stocks to buy. The company enjoys a robust balance sheet and excellent growth and profitability metrics. However, macroeconomic headwinds have pushed down Nvidia’s equity value, but at 60% below parity for the year thus far, the sell-off may be too aggressive considering the fundamental relevancies.

Is NVDA Stock a Buy, According to Analysts?

Turning to Wall Street, NVDA stock has a Moderate Buy consensus rating based on 23 Buys, nine Holds, and zero Sell ratings. The average NVDA price target is $200.67, implying 68.50% upside potential.

Conclusion: The Future of Automation is Coming

Although the automation of mobility has a long way to go before it becomes fully integrated, several of the world’s top tech firms continue to invest billions of dollars into their autonomy projects. Therefore, it may only be a matter of time before self-driving vehicles become a reality. To get ahead of this wave, investors may want to consider the above AI stocks to buy, as they have solid business profiles.

Disclosure

Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in AutoZone, Inc. (Symbol: AZO), where a total volume of 2,685 contracts has been traded thus far today, a contract volume which is representative of approximately

In this video, I will be talking about the state of Nvidia (NASDAQ: NVDA) and whether investors should jump in now that the stock is down 60% year to date. Recently, semiconductor stocks took a hit because of the new U.S. restrictions on selling to China, and Nvidia announced tha

U.S. stock index futures ticked higher on Friday as investors digested a mixed bag of results from major American banks amid worries about the impact of soaring inflation and tighter monetary policy on corporate earnings.

U.S. stock index futures edged lower on Friday as caution kicked in ahead of quarterly results from four of the nation's biggest banks that could set the tone for the third-quarter earnings season.

Shares of Nvidia (NASDAQ: NVDA) took a big beating on the stock market on Friday last week, falling over 8% after rival chipmaker Advanced Micro Devices (NASDAQ: AMD) released its preliminary revenue for the third quarter of 2022.

Advanced Micro Devices AMD shares have slumped 59.4% compared with the Zacks Electronics - Semiconductors industry’s and the Zacks Computer and Technology sector’s decline of 40.5% and 35.8%, respectively, in the year-to-date period.

U.S. stock indexes fell on Thursday, with the Dow and the S&P 500 near two-year lows, after a bigger-than-expected rise in consumer prices last month sparked fears of another big rate hike from the Federal Reserve when it meets in November.

U.S. stock index futures tumbled on Thursday after data showed a bigger-than-expected rise in consumer prices last month, giving more ammunition to the Federal Reserve to stick to aggressive rate hikes.

Even after getting blasted by the bear market this year, top semiconductor company Nvidia (NASDAQ: NVDA) currently trades for 38 times trailing-12-month earnings, or 45 times enterprise value (EV) to trailing-12-month free cash flow. That's sky-high compared to other top-tier, fa

For Immediate ReleaseChicago, IL – October 13, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured

Wall Street futures ticked higher on Thursday, ahead of a closely watched U.S. inflation report that could offer clues on how successful the Federal Reserve has been in its battle against decades-high inflation.

Wall Street futures ticked higher on Thursday, with investors on edge ahead of a closely watched U.S. inflation report that could keep the Federal Reserve on the path of aggressive interest rate hikes.

There is much talk about semiconductor stocks hobbling amid several challenges. However, to better understand why the semiconductor supply chain is being clobbered, it makes sense to understand how delicately the semiconductor supply chain works. Once that is clear, it will be easier to see why the global chip supply chains are braced for further disruptions.

A Brief Look into the Supply Chain

The global semiconductor network is an intricate system where each link holds the entire chain together, forming the backbone of the expanding digital economy. Simply put, chip designing is carried out by fabless semiconductor companies like Qualcomm (NASDAQ:QCOM), Broadcom (NASDAQ:AVGO), Advanced Micro (NASDAQ:AMD), and Nvidia (NASDAQ:NVDA), which then outsource their manufacturing to partner foundries in China, Taiwan, and South Korea, where silicon wafers are processed, assembled, and sent back to the companies.

These chips are then sent to original equipment manufacturers in China and elsewhere, where they are integrated into technologies such as smartphones, computers, servers, data centers, memory storage, industrial and consumer electronics, automobiles, and wired/wireless infrastructure.

As simple as this looks, each major step involves several processes, which are carried out at different facilities. The reason the entire chain is so widespread is due to the concentration of skilled or cheap labor and infrastructure in various parts of the world. The semiconductor sector is somewhat oligopolistic, meaning certain regions and companies dominate different sections of the vast value chain, making the entire chain globally interconnected.

The Global Chip Supply Chain Pain and China’s Role in It

The emergence of the COVID-19 pandemic began with lockdowns in China, putting an abrupt restriction on China’s semiconductor trade with the rest of the world.

Simultaneously, automakers around the world, anticipating a drop in car sales, suspended large volumes of production. This weighed on chip demand as the auto sector is one of the biggest markets for semiconductors.

Now, as China continues to grapple with one COVID-19 surge after another, the country recently shut down the Huaqiangbei district, which held the world’s largest wholesale electronic market, as part of its zero-COVID-19 policy.

Not only that, the weakening demand for PCs due to prolonged periods of delays and cancellations in supply is an added pressure on global chip demand.

High interest rates and input costs are making the chip-making process all the more difficult, a trend that is expected to continue for some more time. This will not only exacerbate the global chip shortage but will also contribute to the global economic slowdown that the world is so worried about.

Evidently, the U.S. imposing restrictions on chip exports to China is like loosening a key link in the entire semiconductor value chain. The U.S. is worried about China’s growing efforts to expand its influence on global economies.

To that end, China’s increasingly advanced economic espionage efforts prompted the Biden administration to up the ante in restricting chip sales to China, knowing how hard it would strangle the Chinese chip manufacturing industry, which is one of the largest in the world. This, in turn, will dent the revenues of industries all over the world that directly or indirectly depend on China’s chip manufacturing.

Conclusion: The World Will Adjust Sooner or Later

The fragility and interconnectedness of the semiconductor value chain are making investors worry, and rightly so. This is not just another country’s industry that has been restricted, but the second largest economy and one of the three biggest chip manufacturing countries of the world.

However, it is true that attempts by China to take over as the world’s largest superpower by dominating the backbone of the digital world will most likely be thwarted in the immediate future. This will force chip markets in other economies to expand.

Also, over the long term, the U.S. will likely successfully cut its dependency on China for manufacturing and sales, making American chip giants self-sufficient in a super-industry that has no way but to grow.

What do analysts think about these leading chip stocks? Learn more on TipRanks:

• GlobalFoundries Inc. - GFS
• Nvidia - NVDA
• Advanced Micro Devices - AMD
• Qualcomm - QCOM
• Intel - INTC
• Micron - MU
• Broadcom - AVGO
• Texas Instruments - TXN

Disclosure

There is much talk about semiconductor stocks hobbling amid several challenges. However, to better understand why the semiconductor supply chain is being clobbered, it makes sense to understand how delicately the semiconductor supply chain works. Once that is clear, it will be easier to see why the global chip supply chains are braced for further disruptions.

A Brief Look into the Supply Chain

The global semiconductor network is an intricate system where each link holds the entire chain together, forming the backbone of the expanding digital economy. Simply put, chip designing is carried out by fabless semiconductor companies like Qualcomm (NASDAQ:QCOM), Broadcom (NASDAQ:AVGO), Advanced Micro (NASDAQ:AMD), and Nvidia (NASDAQ:NVDA), which then outsource their manufacturing to partner foundries in China, Taiwan, and South Korea, where silicon wafers are processed, assembled, and sent back to the companies.

These chips are then sent to original equipment manufacturers in China and elsewhere, where they are integrated into technologies such as smartphones, computers, servers, data centers, memory storage, industrial and consumer electronics, automobiles, and wired/wireless infrastructure.

As simple as this looks, each major step involves several processes, which are carried out at different facilities. The reason the entire chain is so widespread is due to the concentration of skilled or cheap labor and infrastructure in various parts of the world. The semiconductor sector is somewhat oligopolistic, meaning certain regions and companies dominate different sections of the vast value chain, making the entire chain globally interconnected.

The Global Chip Supply Chain Pain and China’s Role in It

The emergence of the COVID-19 pandemic began with lockdowns in China, putting an abrupt restriction on China’s semiconductor trade with the rest of the world.

Simultaneously, automakers around the world, anticipating a drop in car sales, suspended large volumes of production. This weighed on chip demand as the auto sector is one of the biggest markets for semiconductors.

Now, as China continues to grapple with one COVID-19 surge after another, the country recently shut down the Huaqiangbei district, which held the world’s largest wholesale electronic market, as part of its zero-COVID-19 policy.

Not only that, the weakening demand for PCs due to prolonged periods of delays and cancellations in supply is an added pressure on global chip demand.

High interest rates and input costs are making the chip-making process all the more difficult, a trend that is expected to continue for some more time. This will not only exacerbate the global chip shortage but will also contribute to the global economic slowdown that the world is so worried about.

Evidently, the U.S. imposing restrictions on chip exports to China is like loosening a key link in the entire semiconductor value chain. The U.S. is worried about China’s growing efforts to expand its influence on global economies.

To that end, China’s increasingly advanced economic espionage efforts prompted the Biden administration to up the ante in restricting chip sales to China, knowing how hard it would strangle the Chinese chip manufacturing industry, which is one of the largest in the world. This, in turn, will dent the revenues of industries all over the world that directly or indirectly depend on China’s chip manufacturing.

Conclusion: The World Will Adjust Sooner or Later

The fragility and interconnectedness of the semiconductor value chain are making investors worry, and rightly so. This is not just another country’s industry that has been restricted, but the second largest economy and one of the three biggest chip manufacturing countries of the world.

However, it is true that attempts by China to take over as the world’s largest superpower by dominating the backbone of the digital world will most likely be thwarted in the immediate future. This will force chip markets in other economies to expand.

Also, over the long term, the U.S. will likely successfully cut its dependency on China for manufacturing and sales, making American chip giants self-sufficient in a super-industry that has no way but to grow.

Disclosure

In the latest trading session, Nvidia (NVDA) closed at $115, marking a -0.74% move from the previous day. This change lagged the S&P 500's daily loss of 0.33%. Elsewhere, the Dow lost 0.1%, while the tech-heavy Nasdaq lost 0.27%.