|Bid||0.00 x 3200|
|Ask||0.00 x 4000|
|Day's Range||47.04 - 47.50|
|52 Week Range||42.36 - 59.59|
|Beta (3Y Monthly)||0.66|
|PE Ratio (TTM)||10.97|
|Forward Dividend & Yield||1.26 (2.67%)|
|1y Target Est||N/A|
U.S. stocks rallied Monday morning in an at least temporary reprieve after a mid-August rout. U.S. government bond yields rose across the curve, led by yields on 30-year bonds and 10-year notes.
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. When Japan decided to step up its fight with South Korea last month, it dug deep into the supply chain to impose sanctions on three obscure materials made by a handful of Japanese companies few have ever heard of.The most powerful weapon in Tokyo’s campaign against its neighbor turned out to be a half-dozen or so niche firms with names like JSR Corp., Shin-Etsu Chemical Co. and Tokyo Ohka Kogyo Co. They make fluorinated polyimide, hydrogen fluoride and photo-resist: essential ingredients for the manufacture of the displays and semiconductors that go into every piece of modern consumer electronics, from Apple Inc. iPhones and Dell Technologies Inc. laptops to the full range of Samsung Electronics Co. devices. Japan prohibited the export of those materials, allowing an exception only if suppliers secure a license and renew that license regularly.How did they become so indispensable? And how did they manage to stay on top even after their Japanese clients ceded the chip and display markets to Taiwanese and South Korean rivals? The answer lies in a series of well-timed investments decades ago, combined with a willingness to explore foreign markets and an unceasing refinement of manufacturing standards too exacting for anyone else to try and match.“JSR is an interesting case in that they became big in photo-resists because they succeeded overseas first,” said Damian Thong, an analyst at Macquarie Group Ltd. “And much of this success was because of the strategy of one man — Mitsunobu Koshiba.”The JSR chairman’s story shows just how hard it would be for a newcomer to fill the shoes of one of these suppliers. Koshiba spearheaded the company’s pivot into photo-resists, a light-sensitive liquid used to imprint circuits as narrow as a few strands of DNA onto silicon wafers in a process called lithography. Gadgets keep getting slimmer, more powerful and cheaper because chip companies are able to etch ever smaller circuit patterns onto silicon. When it comes to the most advanced chip processes, JSR is one of the few that can deliver the goods.When 25-year-old Koshiba joined JSR in 1981, the company’s biggest business was still tire rubber. (The name is an abbreviation of Japan Synthetic Rubber.) As luck would have it, photo-resist at that time used resins that JSR had access to for its existing business, and the company saw an opportunity to break into a new growth industry. Japanese semiconductor makers were just beginning their rise to global dominance, and suppliers were positioning themselves to go along for the ride.The problem for JSR was it didn’t belong to any of the local keiretsu, a grouping of suppliers that receives preferential access to contracts. And the company was also up against Tokyo Ohka or TOK, the first in Japan to manufacture photo-resist. By the mid-1980s, TOK controlled as much as 90% of the domestic market.“As a neutral company without keiretsu affiliations, we had to look outside Japan,” Koshiba said in an interview, outlining JSR’s decades-long rise but declining to talk in detail about sensitive trade negotiations now underway between Tokyo and Seoul.JSR’s decision to get into that market was bold but Koshiba seemed like the right person for the job. He’d spent two years studying materials science at the University of Wisconsin-Madison on a Rotary Club scholarship, was one of the few English speakers at the company and was eager to work abroad. In 1990, JSR sent him to Belgium to set up a photo-resist joint venture with the country’s biopharmaceutical giant UCB SA. The goal was to target the American market.As timing would have it, JSR was going overseas just as Japan was approaching the peak of its semiconductor prowess. That same year, NEC Corp., Toshiba Corp. and Hitachi Ltd. were the world’s biggest chipmakers, pushing aside Intel Corp. and Texas Instruments Inc. Japanese firms occupied six spots in the industry’s top 10 ranking by revenue, a level of concentration that hasn’t been matched by any country since, according to IC Insights.Japan’s seemingly unshakable control of the computer memory market gave the country renewed national confidence. The mood was reflected in the book “The Japan That Can Say No,” in which right-wing politician Shintaro Ishihara and Sony Corp. co-founder Akio Morita argued for a more muscular foreign policy. In an eerie echo of recent events, the authors contended that the Japanese government had the power to determine the outcome of the Cold War just by directing its national companies to sell the chips used in intercontinental ballistic missiles (ICBMs) to the Soviets instead of the U.S.But the Cold War ended before that theory could be tested. Over the following decade, personal computers overtook ICBMs as the primary destination for chips and demand shifted to prioritize low unit costs over military-spec quality. By 2006, Samsung had risen to No. 2 on the list of the world’s biggest chipmakers, with Korean compatriot SK Hynix Inc. ranking seventh and only three Japanese names remaining among the top 10.For JSR, the turning point came in 2000. Koshiba, who was based in California at that time, recalls being dragged into an emergency meeting on a Sunday wearing a T-shirt and shorts. Word was a rival company was about to clinch an agreement with IBM for joint research on a next-generation photo-resist material. “Get it back,” he was told. Koshiba leaned on the network of American industry contacts he had spent a decade building, people who had known him through the worst of U.S.-Japanese trade tensions. Within a month, IBM signed with JSR.“Without that deal, we wouldn’t have gotten to No. 1,” Koshiba said.In lithography, the formula for shrinking transistors has only two levers: increase the light power or use a lens that lets more light through. Every time the chip process shifts to a higher-energy band of light, resist makers have to go back to the drawing board, opening up new opportunity. The research partnership with IBM ushered in the fourth such shift since integrated circuits replaced vacuum tubes in the 1970s, and JSR rode it all the way to the top.The company now commands about 40% of the market for the latest generation of resist used in mass production. It also supplies more than 30% of the photo-resist for 3D NAND, the most advanced flash memory chips, which are among the few product lines where Japan still competes with Korean rivals. In 2019, JSR is expected to generate about three times the revenue and five times the profit it did in the early ‘90s.What makes this business inaccessible to newcomers is the extreme degree of purity and quality demanded by customers. TOK says a single drop of coffee in two Olympic-sized swimming pools would be considered an unacceptable defect. JSR’s analogy is to a handful of tainted golf balls being enough to spoil a batch the size of the entire Japanese archipelago.In addition to being technically challenging, the markets these companies operate in are small and don’t promise fantastic growth. According to research firm Fuji Keizai Group, the industry’s sales rose just shy of 8% last year to $1.3 billion. Koshiba jokes that even the market for ramen noodles is bigger than that.“To recreate JSR, you basically need to spend as much as they did in the past 20 years on R&D and relationships, and also rebuild their reputation,” Macquarie’s Thong said. “These materials are used in such moderate quantities that to rebuild the whole infrastructure is probably not worth the investment.”And that’s the irony of the current situation. By stoking trade tensions, Japan may encourage its neighbor to subsidize competition to JSR and TOK that wouldn’t make sense under normal market conditions. It’s a matter of survival: Korean corporations now depend on Japan for over 90% of all the fluorinated polyimide and resists they need, and 44% of hydrogen fluoride requirements, Societe Generale estimates.Read more: Japan Grants South Korea Export License, Lessening Trade FearsFor the time being, JSR and TOK retain dominance over one prized material that keeps the consumer electronics industry ticking. According to South Korean Prime Minister Lee Nak-yon, Japan has approved exports of photo-resist for the next-generation of lithography currently under development by Samsung and Taiwan Semiconductor Manufacturing Co. But one of Japan’s last strongholds of tech industry domination may be under threat.“They have the engineers, and once national pride is involved they can possibly make it even if it loses money,” Koshiba said. “We don’t have an impregnable wall.”\--With assistance from Jason Clenfield.To contact the reporters on this story: Pavel Alpeyev in Tokyo at firstname.lastname@example.org;Yuki Furukawa in Tokyo at email@example.comTo contact the editors responsible for this story: Peter Elstrom at firstname.lastname@example.org, Vlad Savov, Edwin ChanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Micron Technology (MU) started the mass production of 16Gb DDR4 products using 1z nm (nanometer) process technology. MU has returned over 37% YTD.
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. The U.S. will extend for another 90 days a limited set of exemptions that had protected rural networks and other U.S. customers from a ban on doing business with China’s Huawei Technologies Co., Commerce Secretary Wilbur Ross said Monday.Some telecom companies in the U.S. are “dependent” on Huawei, and so a 90-day reprieve was deemed appropriate, Ross said in an interview with Fox Business’s Maria Bartiromo. Still, the U.S. also added more than 40 Huawei affiliates to a trade blacklist.“We’re giving them a little more time to wean themselves off,” he added. Ross said the next deadline will be around Nov. 19. He added that Commerce decided to place 46 more Huawei subsidiaries on its entity list.The announcement doesn’t address the wider national-security concerns about Huawei and answer the bigger question of whether U.S. chip companies and other major suppliers will be allowed to sell parts to China.Huawei said in a statement that the temporary relief “does not change the fact that Huawei has been treated unjustly. Today’s decision won’t have a substantial impact on Huawei’s business either way.” The move to add more of Huawei’s affiliates to the so-called Entity List “at this particular time, is politically motivated and has nothing to do with national security,” the company said.QuickTake: How Huawei Became a Target for GovernmentsPresident Donald Trump over the weekend indicated the U.S. was “doing very well with China, and talking” but also suggested he wasn’t ready to sign a trade deal.U.S. stocks rallied Monday after the Trump administration signaled progress on trade negotiations and Ross announced the extension. Huawei, China’s largest technology company by sales, has been at the heart of worsening tensions and been called a bargaining chip in thorny trade negotiations between Washington and Beijing. Trump had said he anticipated talking with Chinese President Xi Jinping “very soon” and the Huawei move may sweeten the tone of those discussions.Huawei, for its part, has been trying to carry on operations in face of U.S. sanctions on the sale of the vital technology. The company this month announced its in-house HarmonyOS, an open-source operating system that could one day serve as a replacement for Google Inc.’s Android if its access to that software is curtailed.Without Android or the numerous American silicon, technology and consultancy suppliers that Huawei does business with, many of its most promising product lines would either cease their rapid growth or be thwarted entirely.Rural AreasThe U.S. Commerce Department previously granted a three-month temporary license to Huawei’s U.S. customers shortly after the Trump administration blacklisted the Chinese company. That allowed telecom carriers in rural areas to continue using Huawei equipment and Google to provide only key Android security updates to Huawei phones.The latest extension came after Trump met in July with the chief executives of key Huawei suppliers from Alphabet Inc.’s Google and Broadcom Inc. to Intel Corp. and Qualcomm Inc. to discuss economic issues including a possible resumption of sales to Huawei. U.S. companies argued that Huawei will turn to non-American suppliers if sanctions persisted, hurting the U.S. in the long run. But trade talks with Beijing ground to a halt and China refused to resume purchases of American agricultural products.National SecurityThe announcement Monday came one day after Trump suggested that Huawei was unlikely to receive another extension, pushing back against news reports about an expected reprieve.“At this moment, it looks much more like we’re not going to do business,” Trump told reporters on Sunday in New Jersey. “I don’t want to do business at all, because it is a national security threat.”The president tied trade negotiations with the ongoing situation in Hong Kong, saying that a deal between the U.S. and China would be harder if there’s a violent conclusion to protests there because of concerns raised by U.S. lawmakers.Earlier this month, the trade war between the two countries intensified as the U.S. announced a next round of 10% tariffs on Chinese imports between Sept. 1 and Dec. 15. China responded with a boycott of American farm products and allowed its currency to weaken, signaling that this can help cushion the tariff blow.(Updates with Huawei reaction in fifth paragraph.)\--With assistance from Gao Yuan and Kasia Klimasinska.To contact the reporters on this story: Vlad Savov in Tokyo at email@example.com;Jordan Fabian in New York at firstname.lastname@example.org;Shawn Donnan in Washington at email@example.comTo contact the editors responsible for this story: Edwin Chan at firstname.lastname@example.org, Elizabeth Wasserman, Sarah McGregorFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
HP's (HPQ) third-quarter fiscal 2019 results are likely to be driven by growth in its commercial PC revenues amid waning consumer demand.
The race among semiconductor makers to gain an edge in the booming market for specialised AI processors has just given rise to the world’s biggest computer chip. It also eats up as much electricity as all the servers contained in one and a half racks — the towers of computers in data centres that stand more than six feet tall.
(Bloomberg) -- In the semiconductor industry, bigger is not usually better. For 60 years, chip companies have strived to make the brains of computers as tiny as possible.Startup Cerebras Systems will turn this maxim on its head on Monday when it unveils a processor measuring roughly 8 inches by 8 inches. That’s at least 50 times larger than similar chips available today.The logic behind going big is simple, according to founder Andrew Feldman. Artificial intelligence software requires huge amounts of information to improve, so processors need to be as fast as possible to crunch all this data -- even if that means the components get really chunky.The company’s Wafer Scale Engine chip is large because it has 1.2 trillion transistors, 400,000 computing cores and 18 gigabytes of memory. (A typical PC processor will have about 2 billion transistors, four to six cores and a fraction of the memory).“Every square millimeter is optimized for this work,” Feldman said. “AI work is growing like crazy. Our customers are in pain.” The biggest limitation of current AI systems is that it takes too long to train software, he added.Feldman has experience and industry backing that’s essential to tackling an engineering problem of this magnitude, he said. He co-founded server maker SeaMicro Inc. and sold it to chipmaker Advanced Micro Devices Inc. for more than $300 million in 2012. Cerebras has raised over $100 million from Silicon Valley investors including Benchmark, Andy Bechtolsheim and Sam Altman. Feldman has a team of 174 engineers and Taiwan Semiconductor Manufacturing Co. -- Apple Inc.’s chipmaker of choice -- is manufacturing the massive Cerebras processor.Cerebras won’t sell the chips because it’s so difficult to connect and cool such a huge piece of silicon. Instead, the product will offered as part of a new server that will be installed in data centers. The company said it has test systems working at several large potential customers and will start shipping the machines commercially in October.The AI chip market includes Nvidia Corp., Intel Corp. and U.K. startup Graphcore Ltd. Google has been so keen to speed up AI progress that the internet giant developed its own special chips called Tensor Processing Units.Nvidia was the last company to successfully bring new semiconductor technology into servers, the machines that run data centers that Google, Facebook Inc. and others use to run internet services. Nvidia now gets almost $3 billion a year in revenue from the business, which took years and thousands of engineers to build, according to Chief Executive Officer Jensen Huang.“It takes a long time to be successful in data center,” he said in an interview last week.To contact the reporter on this story: Ian King in San Francisco at email@example.comTo contact the editors responsible for this story: Jillian Ward at firstname.lastname@example.org, Alistair Barr, Mark MilianFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Despite a rough few weeks in the tech sector, graphics chip maker Nvidia (NASDAQ:NVDA) may be set for a bounce. Reporting both revenue growth and an increased net income, the Nvidia stock price rose 7% after the company released second-quarter earnings today that beat analysts' estimates. And those estimates were already on the optimistic side.Source: Shutterstock Yet, despite the strong operating performance, NVDA stock has somewhat lagged the market for most of the year, and even now, with this surge, isn't impressing too much. Nvidia stock is now trading at $159, showing about an 19% increase for the year. That compares to the 15% gain year to date for the S&P 500 Index and 20% for the Nasdaq Composite.Nvidia reported adjusted earnings per share of $1.24 for its fiscal second quarter, versus the Wall Street consensus of $1.15. Revenues increased slightly from $2.222 billion in the first quarter to $2.58 billion for the quarter ending July 29. The overall improved performance suggests that the recent slump in orders of high-end graphic chips has eased. The chip market may be headed towards a revival in demand from video game makers as well as large data centers.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSo are we set for a longer-term rebound in NVDA stock? The fundamentals certainly look strong. * 10 Cheap Dividend Stocks to Load Up On Here are three reasons why Nvidia may be a buy after the recent solid earnings release. Strong Revenues for Nvidia StockRevenues across all business units increased from the previous quarter, according to Nvidia's earnings release. Chief Executive Officer Jensen Huang explained on the earnings call that the recent slowdown in sales of video-gaming chips and processors for artificial intelligence computing was temporary. In recent quarters, revenues had shrunk slightly for three straight quarters. Huang attributes this to the fact that customers had been working through stockpiles of unused inventories.But now, Huang sees that customers are starting to buy again. The Hugh Bet on AI May Soon Pay OffThe often overlooked driver of future NIDIA stock price is it's up and coming product offerings in artificial intelligence (AI), a gargantuan market that is only beginning to take off. Nvidia's is carefully investing in domination in the AI market, which may be worth over $15 trillion by 2030.Indeed, the AI sector faces brutal competition, particularly from rival chip markets such as Advanced Micro Devices (NASDAQ:AMD) and the giant Intel (NASDAQ:INTC), who are all aggressively investing in offering products in the AI market.However, the AI market will grow to such an enormous size, that there will undoubtedly be room for more than one winner. "The competition should show up with something," CEO Huang said. "AI is going to be a large market for everybody, and the growth is ahead of us. The bottom is behind us."To some extent, NVDA has a bit of a first-mover advantage. For example, Nvidia pioneered the use of graphics chips to run AI software in the data centers that offer cloud computing. Its line of GeForce processors have proven to be the top choice for PC gamers demanding the highest performance and the highest resolution. Timing in Chips is Everything -- and Now May Be the Time for NVDAThe chip market is notoriously cyclical. Between the specter of a trade war with China, concerns about an upcoming consumer recession in the US, to the feast or famine culture of computer hardware supply chain - particularly in the video gaming industry -- chip stocks are highly volatile.For example, last year, Nvidia stock dropped from a high of $292 in September down to $129 just three months later. More recently, the NVDA stock price went from $178 in late July to $147 just before the earnings release. At the present level of $149, Nvidia stock has probably bottomed out for the time being. With whatever doubts about a chip market slow down behind it, the stock may now be at the beginning of an upcycle.Certainly, Nvidia is operating in a tough market with formidable rivals. However, most all the bad news about a market slow down, and aggressive pricing by its rivals is now baked into the price. Investors in chip stock focus on cycles and are well prepared for a ride. For Nvidia stock, we may have passed the market bottom and set for an eventual upswing.As of writing, Theodore Kim has no exposure to any of the above-mentioned stocks. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post With Solid Q2 Results, Nvidia May Bounce Back appeared first on InvestorPlace.
NVIDIA (NVDA) stock soared 6% in today’s trading session as its Q2 earnings for fiscal 2020 beat estimates. However, its guidance missed estimates.
The rhetoric regarding the inherent war between central processing unit makers Intel (NASDAQ:INTC) and Advanced Micro Devices (NASDAQ:AMD) has taken on a clear flavor of late. Intel, and by extension INTC stock, is in trouble.Source: JHVEPhoto / Shutterstock.com Underscoring that paradigm of late is last week's official launch of AMD's new server chip, EPYC Rome. It's not only the world's first 7-nanometer processor, but the rumor is that some big names like Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) are already using the high-powered tech. Intel's first 7-nanometer hardware is still a couple years off.Oh yeah -- the EPYC Rome CPU is also considerably cheaper than Intel's most comparable data center processor chip line call Xeon.InvestorPlace - Stock Market News, Stock Advice & Trading TipsPast the sheer fascination with the fact that Advanced Micro Devices seemingly came back from the dead to leapfrog the dominant name in server chip technology, however, lies another reality. As impressive as EPYC Rome may be, Intel's still got something bigger and better in the works. Not Your Father's IntelThere's no denying it. Intel got caught being lazy and complacent. Advanced Micro Devices was supposedly a has-been, leaving the CPU market wide open for Intel. Since Lisa Su took the helm in 2014, AMD is back from the dead. * 10 Cheap Dividend Stocks to Load Up On Nothing lights a fire under a company like a little pressure though.Granted, research and development of technologies like computer processors is neither cheap, nor quick. Intel is still working on an effective answer to the 2016 launch of AMD's Ryzen CPU line, which offers almost as much computing power as Intel's comparable wares at the time, and at a much lower price. In the meantime, Intel continues to chase other debuts of Advanced Micro Devices hardware, though not necessarily all of them. Intel isn't looking to respond to AMD's "Threadripper" CPU.The launch of AMD's EPYC 7002 series of 7-nanometer server processors earlier this month underscored the depth of Intel's distance behind AMD. After multiple delays, Intel doesn't expect to offer its first 7-nanometer processor until 2021.It's all very unlike Intel. This Competition May Not MatterMuch of the value of technological breakthroughs like 7-nanometer CPUs is leveraging them as publicity tools. Undoubtedly, Advanced Micro Devices has gotten much mileage from being able to say it was the first to reach the 7-nanometer milestone.Companies and consumers alike just want solutions that work well, however they work.Even with its less-thrilling 14-nanometer "Coffee Lake" processors and its 10-nanometer "Ice Lake" CPUs, Intel is making highly marketable products right now.Admittedly, with the inherently slower speeds of 10-nanometer processors, Intel has to do everything else right on a computer's or server's (or a tablet's or a smartphone's) main board to extract comparable performance. But, it is doing that. Its Project Athena, for instance, is an overarching effort to make laptops and mobile devices faster not with a more powerful CPU, but by building a device from the ground up with speed and performance in mind.The device has already mapped out how it can best handle multiple files and apps, for instance.AMD hasn't thought as much beyond the development of a powerful processor. In fact, it may not have even given fully adequate thought to the development of its 7-nanometer tech. Did AMD Rush 7-Nanometer Development?It's only anecdotal, but a closer look at the performance of AMD's Ryzen 3000 series suggests not every core of the CPU is reaching the advertised operating speed.Some are wondering if AMD's rush to get a 7-nanometer chip on the market could be the culprit. Others are wondering if 7-nanometer tech is even worth the effort. As ExtremeTech's Joel Hruska wrote late last month, "Higher silicon variability [stemming from the 7-nanometer foundry process] is going to demand a response from software. The entire reason the industry has shifted towards chiplets is that building entire dies on 7nm is seen as a fool's errand…"If that's the case for other 7-nanometer hardware like the EPYC Rome, the actual performance of these new devices may disappoint some users.According to Hruska, the physical limitations involved in manufacturing silicon-based CPUs cause the bulk of the performance bottleneck. He says that future performance improvements won't come on the hardware fronts.That bodes well for Intel's Project Athena, which aims to address more feasible performance enhancements. The Bottom Line for INTC StockDon't misread the message: Intel dropped the ball. It's also willingly wading into projects that have a questionable payoff.It's already competing with AMD on the CPU front. Intel has recently begun work on discrete graphics cards that will go up against Advanced Micro Devices' graphics processing units as well as those made by Nvidia (NASDAQ:NVDA). The company is also planning a line of dedicated gaming PCs through a program currently called Phantom Canyon. There's an established market for both, but neither are necessarily aligned with Intel's core competencies. As such, they may prove more distracting than fruitful.Still, Intel is hardly being forced into the retreat mode some investors and pundits have suggested.That doesn't make INTC stock bulletproof -- market-wide weakness could still inflict damage. Assuming the global economy doesn't slip into a full-blown recession though, dips like the one Intel stock just made could continue to be great entry points.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post Intel Lost the 7-Nanometer Battle, But INTC Stock Is Still a Buy appeared first on InvestorPlace.
On Aug. 15, Nvidia (NASDAQ:NVDA) reported Q2 of fiscal 2020 earnings. Investors overall seemed pleased with the results. After hours, NVDA stock went up over 5% to close at $157.09.Source: Shutterstock Today, let us take a closer look at Nvidia stock's results to see if long-term investors may find value in NVDA shares around these levels. Nvidia Stock's Q2 EarningsNvidia is a pioneering maker of graphics processing units for gaming and professional markets. NVDA sells two main products: graphics processing units (GPU) and Tegra processors. GPUs accelerate central processing units (CPUs), boosting the performance of video and graphics and improving computers' overall output.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Cheap Dividend Stocks to Load Up On Analysts are concerned about the recent slowdown in the chip sector coupled with worries over U.S.-China trade wars. However, globally there are important growth areas, such as artificial intelligence (AI), autonomous vehicles, 5G, as well as high-performance computing and gaming. These technologies depend on the bigger graphics processing capabilities of Nvidia, Intel (NASDAQ:INTC) and Advanced Micro Devices (NASDAQ:AMD). All three companies work hard to gain market share.During the quarter, NVDA stock's revenue rose 16.2% sequentially but fell 17.4% year-over-year (YoY) to $2.58 billion. Similarly, the adjusted EPS rose 40.9% sequentially but fell 36.1% YoY to $1.24.In Q2, Wall Street was expecting Nvidia to report revenue of $2.55 billion and adjusted EPS of $1.15.Over the past several quarters, Nvidia stock has experienced a steep decline in revenues post-crypto bust. Therefore, the better-than-expected results pushed up the stock price after hours.Nvidia stock is trading at a forward PE ratio of almost 29. In comparison, Intel stock's forward PE stands at about 11. Therefore, going forward, shareholders will want NVDA management to deliver even stronger results so that the stock price warrants the rich valuation metric. How NVDA Stock's Important Segments ReportedIn the earnings report, analysts paid attention to five segments that drive its revenues: gaming, data center, professional visualization, automotive, and edge computing.For years, NVDA has been a leader in the competitive graphics-card market. However, in recent months the battle for market share between Nvidia and AMD in that segment has intensified. As AMD launches its Navi cards, AMD's GPUs will likely take market share from NVDA in the video-game chip sector.Similarly, data center competition from Intel has increased. Nvidia recently spent $6.9 billion to buy the data center networking company Mellanox. In other words, Nvidia is telling the markets that it is not just going to be a GPU company any more.In Q2 the group's revenue data center revenue rose 3.3% sequentially but fell 13.8% YoY to $655 million. Nvidia's data center business revenue missed analysts' consensus estimate of $668.5 million.Gaming accounts for about 40% of Nvidia's total revenue. NVDA stock's sales from the gaming segment went up by 24.5% sequentially but fell 27.3% YoY to $1.31 billion. Nonetheless, the segment revenue beat the consensus estimate of $1.3 billion.In recent months, investors have been worried about the company's growth outlook, which is mostly based on its GPUs for gaming and artificial-intelligence servers. Nvidia's EPS and Nvidia stock price are very closely linked to the sales trends of its GPUs.For Q3, NVIDIA expects to book revenue of $2.9 billion, plus or minus 2%. That number is below the projected $2.98 billion for the quarter. Nvidia Stock Technical Charts Signal More VolatilityOn Aug. 15, before reporting Q2 earnings, NVDA stock closed at $148.77. Over the past year, Nvidia stock price is down about 40%, and the shares have been quite volatile. Its 52-week range has been $124.46-$292.76.As a result, the technical outlook of NVDA stock has been damaged. Its short-term chart still looks weak, and Nvidia stock price looks poised to exhibit even further volatility in the near-term.NVDA's momentum indicators, which describe the speed at which stock prices move over a given time period, have been in oversold territory for some time. Therefore, a relief rally is expected and likely to come following the quarterly results. My initial expectation is for NVDA stock to race toward $170, where it is likely to have significant resistance.However, a couple of day's move does not make a definite trend. More buy signals based on momentum indicators need to be conﬁrmed before Nvidia stock can become a long-term buy from a technical standpoint.It is important to remember that Nvidia is a momentum stock. Therefore, if you are worried about what would be a viable entry point into NVDA shares, I'd suggest that long-term investors wait until Nvidia stock builds a firm base between $165 and $145.If you already own Nvidia shares, you may consider hedging your position with monthly ATM covered calls. Such a strategy would enable you to benefit from an upside move and give some protection in case of profit-taking after the initial move up following the results.If the current trade tensions are swiftly resolved and the broader markets rally, Nvidia stock price could easily continue its rebound. In that case, the technical charts would need to be reevaluated. Bottom Line on Nvidia StockDespite the semiconductor industry's headwinds and cut-throat competition from AMD, there is strong demand for Nvidia's graphics processors, for use not only in video games but also in data centers and work stations. Industry experts also regard NVDA as a top player in the AI chip space, and its graphics chips are highly sought after for use in deep-learning applications.Nvidia is also exploring smart-city solutions, which exploit its proficiency in artificial intelligence and data analytics. In other words, the company is somewhat shifting its focus from processors to providing the full technical backbone for AI ecosystems. As the use of artificial intelligence and machine learning continues to rapidly grow, NVDA's AI business could expand exponentially.However, given the volatility of Nvidia stock price over the past year due to the ongoing questions about the fundamentals of the company and its sector, I would urge investors to be cautious about NVDA stock.The U.S.-China trade war has not helped NVDA, either, as China accounts for nearly a quarter of Nvidia's sales. The headwinds of the sector make many analysts wonder whether NVDA can, in the near future, regain the kind of rapid and sustained growth that investors got used to in recent years.Although Nvidia stock will likely reward long-term investors, tech stocks may remain volatile over the next few weeks. A couple of negative macro or global news headlines may drive the Nvidia stock price down. If that occurs, long-term investors will be given a better entry point in Nvidia stock.As of this writing, Tezcan Gecgil hold INTC covered calls (Aug. 23 expiry). More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post What to Know Before Jumping Into Nvidia Stock appeared first on InvestorPlace.
Northland Capital upgraded Intel Corp. to market perform from underperform on Friday, after the chip maker's strong second-quarter earnings. Analyst Gus Richard said the stock is now trading below his price target of $48, it's trading at 11.5 times his 2020 estimates, which are lower than consensus, it beat second-quarter estimates by $900 million and 17 cents but only increased its guidance by $500 million and 5 cents. "We think value stocks likely outperform higher multiple stocks during sell offs," Richard wrote in a note. "Sentiment (is) nearing a low point." Since Northland downgraded the stock back in December, the trade was has taken a turn for the worse, with bans on Huawei and Chinese super computer companies, he wrote. "In addition, AMD's server launch likely makes it clear Intel is going to struggle to maintain share and will suffer from pricing pressure," said the analyst. "While we expect AMD to take share in the server market over time, share in this market shift slow." Shares were up 1.4% Friday, but have fallen 1.2% in 2019, while the S&P 500 has gained 15%.
The major stock indexes were sharply higher early Friday, as they looked to end a volatile week with solid gains. Nvidia stock jumped 7%.
Nvidia, Intel and AMD drove the Nasdaq ahead of the Dow Jones today, as stocks surged into a strong open.
DOW UPDATE Shares of Intel and Walgreens Boots are posting positive momentum Friday morning, lifting the Dow Jones Industrial Average into positive territory. The Dow (DJIA) was most recently trading 160 points (0.
Qualcomm and Apple have turned the page and are partnering on 5G chip service, according to Qualcomm CEO Steve Mollenkopf.
Investing.com -- U.S. stock futures were set to claw back more of their midweek losses on Friday, as the absence of fresh geopolitical shocks allowed the market to build on gains that began on Thursday with a batch of generally positive U.S. economic data.
Investing.com - Wall Street clawed back more of their midweek losses on Friday in the absence of fresh geopolitical shocks, but were still on course for a third straight weekly loss against the backdrop of a slowing global economy.
(Bloomberg) -- Nvidia Corp.’s second-quarter sales and profit topped analysts’ estimates, suggesting that a slump in orders may be easing amid a revival in demand for graphics chips and parts used in data centers. The stock rallied in late trading.Revenue in the quarter that ended July 28 was $2.58 billion and profit excluding certain costs was $1.24 a share, the Santa Clara, California-based company said in a statement on Thursday. Analysts, on average, had estimated adjusted earnings of $1.14 a share on sales of $2.54 billion.Sales in all business lines rose from the previous quarter, Nvidia said, a sign the company is addressing challenges that had stalled growth. Chief Executive Officer Jensen Huang has argued that a slowdown in orders for computer-gaming chips and processors for artificial intelligence tasks was temporary as customers worked through stockpiles of unused parts.Revenue has now shrunk from a year earlier for three straight quarters, and Nvidia forecast another decline of about 9% for the current period. Still, the 17% contraction in the second quarter was narrower than some analysts had projected, and the rate of decline is slowing. That may indicate customers are beginning to place new orders again.Gaming-chip sales came in at $1.3 billion, up 24% sequentially. Revenue from Nvidia’s second-biggest business, data center, climbed 3.3% from the prior period to $655 million.According to some estimates, that rebound in data-center revenue fell short. Wells Fargo analyst Aaron Rakers had predicted unit sales of $685 million, and he wrote in a note that the consensus estimate was about $669 million. On a conference call to discuss results, Nvidia executives faced multiple questions on the prospects for the business.On the call, Huang said demand for graphics chips used in servers was improving across the board, excluding a couple of so-called hyperscale data-center operators who don’t give Nvidia much insight into their plans. He declined to say when the business will return to annual growth, but maintained his optimism that artificial intelligence computing is the biggest-ever opportunity for his company.Nvidia’s detractors say that stiffer competition is the cause of the company’s struggles, but Huang said rivals aren’t eroding growth. Nvidia pioneered the use of graphics chips to run AI software in data centers, while Nvidia GeForce processors have been the main choice for PC gamers wanting the highest resolution action. Now, Intel Corp. and Advanced Micro Devices Inc. are offering rival products in these markets.“The competition should show up with something,” he said in an interview. “AI is going to be a large market for everybody and the growth is ahead of us. The bottom is behind us.”Nvidia shares rose more than 6% in extended trading following the report. Earlier, they slipped about 1% to close at $148.77 in New York.Net income in the second quarter was $552 million, or 90 cents a share, down from $1.1 billion, or $1.76, in the same period a year earlier.The company said sales in the current period will be about $2.9 billion, plus or minus 2%. That compares with an average analyst estimate for revenue of $2.98 billion, according to a Bloomberg survey. Adjusted gross margin will be 62.5%, Nvidia said.(Updates with CEO comments in eighth paragraph)To contact the reporter on this story: Ian King in San Francisco at email@example.comTo contact the editors responsible for this story: Jillian Ward at firstname.lastname@example.org, Alistair BarrFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Chipmaker Nvidia is at the forefront of AI and machine learning, but earnings and share prices have dived. Here is what fundamental and technical analysis say about buying Nvidia stock now.
Applied Materials shares slide despite beating earnings for its fiscal third quarter on the top and bottom lines. The semiconductor company says it is facing significant headwinds from the U.S.-China trade war. Yahoo Finance's Akiko Fujita and Dan Howley discuss.