27.35 0.00 (0.00%)
After hours: 4:24PM EDT
|Bid||27.33 x 36900|
|Ask||27.34 x 36200|
|Day's Range||26.93 - 27.36|
|52 Week Range||12.71 - 34.14|
|Beta (3Y Monthly)||4.00|
|PE Ratio (TTM)||109.84|
|Earnings Date||Jul 23, 2019 - Jul 29, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||29.41|
Rajvindra Gill, managing director of semiconductor research at Needham & Company, joins "Squawk Box" to discuss how chip stocks were hit by the news that President Trump would block Huawei elements from coming to the U.S.
Why is Nvidia so uncertain about this year's outlook? Prior to the report, analysts lowered their expectations for Nvidia to a GAAP EPS of $0.60. Last year, Nvidia earned $1.88 but investors widely expected the drop.
Although many investors were expecting a resolution to the trade war between the United States and China just a few months ago, it now seems that the trade war between the U.S. and China could last for a while. While numerous sectors are affected by the trade war, it seems that the semiconductor sector is arguably one […]
These top information technology (IT) stocks have outperformed the rest amid a period of heightened volatility in the tech sector for 2018.
A sell-off in chip stocks intensified following a report that chipmakers are cutting ties with Huawei after the Trump administration's ban.
It's all smiles for the owners of Nvidia (NASDAQ:NVDA) stock right now following its better-than-expected earnings report. But if you have NVDA stock, don't get too comfortable.Source: Shutterstock For one thing, its earnings beat was largely driven by its gaming sales that were less bad than expected. That's good enough to salvage this quarter, but not necessarily anything beyond that. Macro concerns weigh heavily on the outlook of Nvidia stock going forward. And don't expect the recent revival of cryptocurrency prices to do much for NVDA stock either. Add it all up, and even with the earnings bump, Nvidia stock is still trending downwards. * 7 High-Yield REITs to Buy (Even When the Market Tanks) The Earnings Beat Is Less Impressive Than You ThinkLooking at just the company's Q1 earnings per share, the owners of Nvidia stock could be forgiven for thinking NVDA had a great quarter. Its non-GAAP EPS of 88 cents smoked analysts' consensus outlook of 81 cents. Its revenues of $2.22 billion also came in slightly ahead of the consensus estimate. But the news gets worse for Nvidia stock once you take a closer look at the numbers.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFor one thing, nearly all of the revenue beat was driven by the gaming division. Gaming revenues came in at $1.05 billion, far ahead of analysts' average estimate of $930 million. Moreover, its gaming sales jumped versus the previous quarter, ending a nasty serious of declines.The significantly better-than-expected results in gaming covered up some pretty lackluster numbers everywhere else, however. Sales of professional visualization products dropped from $305 million in Q3 of 2018 to $292 million last quarter. OEM and other products slumped again, dropping 15% year-over-year in Q1 against expectations for a far smaller decrease.In data-center chips, there are signs that Intel (NASDAQ:INTC) may be outpacing Nvidia. NVDA's data-center revenue came in at just $634 million for the quarter, down sharply from $679 million the previous quarter and almost $800 million two quarters ago. Not surprisingly, NVDA's data-center results fell well short of expectations.It seems that Nvidia's gaming results have taken a turn for the better. But that's hardly enough to leave Nvidia stock poised to do well for the rest of 2019, since its other important potential growth areas like data center can't seem to get back on track. NVDA's guidance for the current quarter wasn't anything special either, indicating its Q1 results may have been just a one-off fluke. Don't Count on Bitcoin to Save GamingIn the past, there was a significant correlation between the price of Bitcoin and NVDA stock. And given that NVDA's quarterly "gaming" revenues plummeted from $1.8 billion in early 2018 to half of that last quarter, clearly crypto miners had been generating much more demand for graphics cards than gamers.But don't expect the recent revival of Bitcoin prices to make a lasting difference for NVDA stock. This is due to a key concept called Bitcoin dominance. In the golden days of crypto, the market cap of all crypto coins topped $500 billion. It's barely back to $100 billion today. Bitcoin has come roaring back, but many of the alternative crypto coins remain in the dumps.That is critical for Nvidia stock, since few people use Nvidia or AMD (NASDAQ:AMD) cards to mine Bitcoin. Instead, they use more specialized products from other vendors. However, it is profitable to mine many of the alternative coins with NVDA cards. But if altcoins aren't surging in price, demand for Nvidia's cards will remain in check.As it is, Bitcoin's share of the overall crypto market has surged from just 33% in January 2018 to nearly double that recently. Meanwhile other alternatives, like Ethereum, which can be mined with Nvidia's tools, have become far less popular. Ethereum's share of the overall crypto market has now fallen to its lowest point since late 2017.Meanwhile, the third most popular coin, Ripple, is not mineable at all, negating any need for graphics cards. If the crypto community doesn't rally around more alternative coins, a further rise in Bitcoin's price is unlikely to do much for Nvidia stock. The Verdict on Nvidia StockOn its earnings conference call, NVDA noted that its outlook was weaker than it was when Q1 had started. That should hardly be a surprise. The trade war has escalated far more than most of us, myself included, had expected. NVDA has been caught in that crossfire.While the stock market has recovered recently, U.S.-China tensions are still simmering.. The Trump administration's recent decision to take aim at Huawei could lead to a further cooling in demand for American semiconductor products from China.When it comes to Nvidia stock, don't expect a potentially short-lived recovery in crypto prices to offset much bigger macro factors. NVDA is trying to adjust to life without a huge stream of crypto revenue. It still has to make much more progress in that area, as Q1's more than 30% revenue decline compared to the same quarter last year shows. And with weakness showing up in other areas like data center, NVDA still has a long ways to go before it regains its previous level of prosperity. For now, expect NVDA stock to keep trending lower.At the time of this writing, Ian Bezek owned INTC stock. You can reach him on Twitter at @irbezek. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Yield REITs to Buy (Even When the Market Tanks) * 5 Great Blue-Chip Stocks to Buy Today * 7 Tech Stocks to Buy That Are Also Perfect for Retirement Compare Brokers The post Why Nvidia Stock Will Retreat appeared first on InvestorPlace.
For some, stock trading is tantamount to gambling, but it can be argued that investment is the art and science of making an informed decision about adding one's money into — or removing it from — an asset. Stock valuation is nothing but determining the intrinsic value of a stock, which most often is not in sync with the market price. Why Valuation? Broadly, the valuation approach can be classified into absolute valuation and relative valuation, with the former taking into account the fundamental strength of the company, its dividends, its cash flows and its growth rate.
The midday reaction was rather dull considering what a big mover Nvidia stock tends to be, although long-time shareholders are likely content with Friday's price action. Many are wondering what's next for Nvidia. Bears are arguing that Nvidia stock's failure to rally indicates poor price action.
Rosenblatt Securities analyst Hans Mosesmann maintained a Buy rating on Nividia and lowered the price target from $190 to $180. KeyBanc Capital Markets analyst Weston Twigg maintained a Sector Weight rating. Raymond James analyst Chris Caso reiterated an Outperform rating and $180 price target.
Nvidia (NASDAQ:NVDA) reported earnings last night and investors loved them. NVDA stock spiked 7%… then faded back to red. This is more likely due to overall stock market malaise than Nvidia disappointment, however. We are still dealing with geopolitical headlines a major economic war between the U.S. and China.Source: via NvidiaAs of this writing, NVDA had turned green again, up about 1%.The NVDA options markets had priced in a +/- $12 move today and the after hour spike perfectly took the stock to the upper edge of that limit. The open interest in the options markets also suggested upside pressure with resistance this week at $173 and that was exactly where it faded. So the overnight action unfolded exactly as planned. Now the bulls need some follow through as the market shakes the overnight jitters off. And the geopolitical headlines need to cooperate.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 5 Service Stocks That Can Win the Trade War -- According to Goldman Sachs These last two days are quite the change from earlier this week when equities like NVDA were in free fall. Wall Street panicked from headlines that China retaliated against the new U.S. tariffs. Yet Thursday, NVDA stock closed slightly green ahead of the event.This small upside move was impressive since the Thursday open was scary for chip stocks. They all collapsed on headlines that the U.S. is acting against Huawei. So traders then extrapolated that all chip companies are vulnerable too. But this morning the sector is once again trying to find footing as Applied Materials (NASDAQ:AMAT) is helping with its positive reaction to their earnings.NVDA beat both earnings and sales. But more importantly, they raised guidance for the future. So they over-delivered and promised that they will do even better next time. This is reason to hold or start accumulating a position in Nvidia stock.NVIDIA used to be focused on graphics cards, but now they are set up to benefit from several of the hot topics for the next few decades. They have transformed into a dominant player in any tech that needs a brain. From computers on our desks or in our pockets, to ones that drive our cars.Last night's report shows that NVIDIA has returned to growth, and gaming and data centers are exciting areas of opportunities once more. Also Artificial Intelligence segments will accelerate as adoption of AI grows world wide. This is a budding trend that will dominate in the future. Every aspect of our technology will have AI built into it. Nvidia stock will surely benefit from this trend.Management also noted that the acquisition of Mellanox (NASDAQ:MLNX) will close by year end. So the noise from the assimilation will die down. They outbid Intel (NASDAQ:INTC) so they can create more runway in their own data center efforts. This will have incremental profits soon enough. The Bottom Line on Nvidia StockSo in summary, Nvidia stock is not a sell here. The management team has proven that they are still on top for their game. They are growing demand for gaming, cloud tech and AI. So they left nothing for the sellers to use as weapons.In addition, there is also the surprise revival of the Crypto-craze as Bitcoin rallied 100% in a month. In the past, NVDA and crypto moved in tandem, but Nvidia has outgrown this. Bitcoin is no longer part of the NVDA investment thesis so it's pure gravy. So it's not a threat to the rally since it's not a major peg that could break. * 6 Chinese Stocks That Could Pop On a Trade Deal The experts on Wall Street agree that Nvidia stock is a BUY. The average price target is close to $200 per share, which also shows that Wall Street believes that the upside opportunity outweighs the downside risks.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. You can follow him as @racernic on Twitter and Stocktwits. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy that Lost 10% Last Week * Top 7 Dow Jones Stocks of 2019 -- So Far * 5 Service Stocks That Can Win the Trade War -- According to Goldman Sachs Compare Brokers The post After NVDA Stock Earnings, $200 Is Within Reach appeared first on InvestorPlace.
AMD’s 2019 Growth Story: Next-Generation Ryzen, Rome, and Navi(Continued from Prior Part)AMD’s Enterprise businessAdvanced Micro Devices (AMD) is seeing growing adoption of its EPYC server CPU (central processing unit) across cloud, HPC
Think what you may of President Trump, but there is an undeniable fact. If you watch the stock market as closely as I do, you would notice that Trump often has impeccable timing to prop up the market. • The chart shows the stock market was falling.
AMD’s 2019 Growth Story: Next-Generation Ryzen, Rome, and Navi(Continued from Prior Part)AMD’s semi-custom businessAdvanced Micro Devices (AMD) is a leader in the game console market as its semi-custom chips are preferred by game console giants
Anyone who bought Nvidia (NASDAQ:NVDA) stock at the end of 2018 is probably saying, "heck yes" to my question in the headline. Up 22% so far this year through May 14, Nvidia stock will have risen 87% in 2019 if it reaches $250 by the end of the year. Source: Shutterstock InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut as my colleague, Dana Blankenhorn, recently commented, that isn't going to happen, thanks to President Trump's insane tariff war with China."The best thing for investors to do is wait out the storm and buy when Trump finds another shiny object to hate and decides he needs the tech economy," Blankenhorn stated. "As I've said many times, trade wars are unhealthy for economies and other living things."Amen to that. * 7 Stocks to Buy that Lost 10% Last Week Nvidia stock has been a constant pain in my backside during the past two years, as I've banged the drum in support of it over arch rival Advanced Micro Devices (NASDAQ:AMD). Although NVDA has much healthier financial statements than AMD, NVDA stock has gotten crushed by its smaller competitor over the past 52 weeks. AMD stock has's gained 123% over the past year, compared to about 36% for Nvidia stock. My History With AMD StockLive by the sword, die by the sword. In October 2017, I suggested that Nvidia stock would hit $350 before AMD hit $25. At the time, NVDA was trading around $200 and climbing fast. Several months earlier, when NVDA stock was trading around $136, I predicted it would hit $200 before AMD hit $16. That prediction came to pass; AMD traded around $12 when NVDA broke through $200. However, as I've said many times, share price predictions are like the wind; they'll change direction if you wait long enough. Fast forward another 11 months to September 2018, and I'm eating my initial words. While Nvidia stock was struggling to get to $300, let alone $350, AMD blew past $25 in late August. Not wanting to admit defeat and confident that Nvidia's profitability would win the day, I upped the ante predicting NVDA stock would hit $500 by the end of 2020, before AMD would hit $45. I'm doing pitifully. On September 4, 2018, NVDA and AMD were trading at $272 and $27 respectively. As of today, Nvidia stock has lost about 40% of its market value since then, while AMD is flat. The moral of the story: Stock price predictions are futile. What the Future HoldsIf you haven't been paying attention, I have no idea what the future holds for NVDA stock. What I do know is that AMD has delivered for shareholders over the past year in a way that Nvidia investors could only wish for. That said, I'm a believer in companies with strong free cash flow generation, and NVDA fits the bill. In Nvidia's latest fiscal year it had free cash flow of $3.14 billion or 27% of its $11.7 billion of annual revenue, down three percentage points from its FCF as a percentage of revenue in 2018, but still an excellent number. By comparison, AMD's free cash flow in its latest fiscal year was -129 million or -2% of its $6.5 billion of total revenue. If the U.S., China spat turns into something more permanent, I know which stock I'd rather own. That's not to say that I don't have a lot of respect for AMD CEO Linda Su; she's done an excellent job turning the company into a bona fide leader in its field. It's just that free cash flow is a big part of how I evaluate stocks. It's nothing personal. Can Nvidia stock get to $250 before AMD hits $45?That's for you to decide. I'm out of the share price-prediction game.At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Stocks to Sell Before They Tank Your Portfolio * Top 7 Dow Jones Stocks of 2019 -- So Far * 5 Low-Priced, High-Potential Tech Stocks to Buy Compare Brokers The post Can Nvidia Stock Hit $250 Before AMD Hits $40? appeared first on InvestorPlace.
AMD’s 2019 Growth Story: Next-Generation Ryzen, Rome, and Navi(Continued from Prior Part)AMD’s Enterprise, Embedded, and Semi-Custom businessAdvanced Micro Devices (AMD) is a small competitor in the CPU (central processing unit) and GPU
AMD’s 2019 Growth Story: Next-Generation Ryzen, Rome, and Navi(Continued from Prior Part)AMD’s Graphics businessAdvanced Micro Devices (AMD) is the only company that has both CPU (central processing unit) and discrete GPU (graphics processing
AMD’s 2019 Growth Story: Next-Generation Ryzen, Rome, and Navi(Continued from Prior Part)US-China trade war and AMD 2019 is a year of transition for Advanced Micro Devices (AMD) as it launches its next-generation 7-nm (nanometer) products.
Let's take a look at what investors should expect from Nvidia's Q1 fiscal 2020 earnings and revenue after the closing bell Thursday.
AMD’s 2019 Growth Story: Next-Generation Ryzen, Rome, and Navi(Continued from Prior Part)AMD’s Computing businessOne company that is handling the market downturn well is Advanced Micro Devices (AMD), as it mitigated the impact of significant
The narrative in the semiconductor market right now is pretty simple, and it's exceptionally favorable for chip giant Advanced Micro Devices (NASDAQ:AMD). In a nutshell, the CPU market is defined by two players: the small guy, AMD, and the big guy, Intel (NASDAQ:INTC).Source: Matthew Rutledge via FlickrFor a long time, Intel has leveraged its scale, resource, and reach advantages to crush AMD. But, over the past three years, AMD has innovated more quickly that Intel and, in so doing, has launched next-gen chips more quickly than Intel. AMD has consequently gained share on Intel, especially in the all-important data center market. In response, AMD stock has gone from a $2 stock in early 2016, to a $27 stock today.But this narrative is starting to wind down.InvestorPlace - Stock Market News, Stock Advice & Trading TipsTo be sure, AMD is still growing much more quickly than Intel where it matters. The company will continue to gain market share for the foreseeable future. But current trends imply that Intel is also finally catching up where it matters. Thus, the pace of AMD market share gains will likely slow for the foreseeable future. * 10 Retirement Stocks That Won't Wilt in a Bear Market As the pace of AMD's market share gains slows, so will the pace of gains in AMD stock. Broadly speaking, AMD stock has risen by nearly 15-fold over the past three years. It won't rise another 15-fold over the next three years.Instead, fundamentals imply that AMD stock has just about 50% upside to $40 over the next three years. That's still good upside. But, it's not huge upside. As such, investors should expect more tempered gains going forward for AMD stock. The Market Share Expansion Narrative Is Losing MomentumOver the past three years, AMD's ability to rapidly expand its market share in the semiconductor market has led to AMD stock rising by a factor of 15. But, this market share expansion narrative is starting to lose momentum. As it does, the pace of gains in AMD stock will likely slow, too.Intel has long been Goliath in the CPU industry. AMD has long been David. But AMD has innovated with impressive pace over the past several years, while Intel has simultaneously faced multiple production delays. The result? AMD has launched next-gen chips. Intel has not. This has led to AMD gradually and consistently chipping away at Intel's dominance in the CPU market.This is especially true in the all-important data center market. As we all know, the real growth narrative in the semiconductor market is on the data side of things. On that side of the market, Intel is the giant, but AMD is growing much more quickly. Last quarter, AMD's data center GPU sales more than doubled year over year, while Intel's data center sales dropped 6%.These market share gains will continue for AMD. The company still has a first-to-market and supply advantage over Intel. So long as that remains true, AMD's market share will continue to grow.But that advantage won't last forever. Indeed, it is already becoming increasingly narrow. Specifically, after years of delays, Intel is finally ready to start shipping 10nm processors in large volumes. That's big, because it was AMD's ability to get 10nm chips out to market first that allowed AMD to gain market share. With those 10nm processors now ready to ship, Intel expects its CPU supply shortages to start easing in June. In response, vendors like Dell and HP are reportedly planning on stepping up orders with Intel and cutting back on orders with AMD.In other words, the AMD market share expansion narrative will start winding down in June. It should continue to wind down over the subsequent months, as Intel yet again flexes its scale, resource and reach advantages. As that narrative winds down, AMD stock will slow down, too. Fundamentals Pave Path to $40 In 3 YearsIn the big picture, while the AMD market share expansion narrative is winding down, it isn't stopping, either. Instead, this company will continue to leverage strong innovation and a healthy product road map to continue to grow market share in the secular growth data and AI markets over the next several years. Concurrently, profitability levels will improve thanks to increased scale.But, profit growth will ultimately be limited by reinvigorated Intel competition. Revenue growth rates will come down due to a lower pace of market share expansion. Gross margins will likewise face competitive pressures. In numbers, what was 30%-plus revenue growth rates for the better part of the past two years, will turn into 20% and lower growth rates over the next several years, and what was several hundred basis points of margin expansion per year over the past two years, will turn into no more than 100 basis points of expansion per year going forward, and probably less.Overall, into 2025, I think AMD can grow sales at a ~15% annualized pace, while gross margins can expand gradually and the opex rate can fall meaningfully with scale. That combination implies robust profit growth going forward. But not enough to warrant another 15-fold increase in the stock.Under those assumptions, $2.40 in earnings per share is doable for AMD by 2025. Based on a forward price-earnings multiple of 20, which is average for growth stocks, that equates to a fiscal 2024 price target for Advanced Micro Devices stock of $48. Discounted back by 10% per year, that results in a fiscal 2022 price target for AMD of about $40.Thus, AMD stock has a very realistic and fundamentally supported opportunity to rally another 50% over the next three years. Bottom Line on AMD StockAMD stock has staged a huge rally over the past three years. That big rally won't be replicated over the next three years, mostly because the company's market share expansion narrative is winding down and the valuation is much more rich than it was a few years back. * 7 Stocks to Buy that Lost 10% Last Week But the rally in AMD stock won't die. Instead, gains going forward will be more tempered than they have been. In the long run, this stock can hit $40. But, it will take a few years to get there.As of this writing, Luke Lango was long INTC. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Retirement Stocks That Won't Wilt in a Bear Market * 5 Consumer Stocks Ready to Push Higher * 3 of the Best ETFs to Buy for a Play on Gold Stocks Compare Brokers The post How Much Higher Will AMD Stock Go in the Long Run? appeared first on InvestorPlace.