|Bid||56.70 x 1100|
|Ask||56.71 x 1200|
|Day's Range||56.44 - 56.82|
|52 Week Range||42.86 - 59.59|
|Beta (3Y Monthly)||0.91|
|PE Ratio (TTM)||13.26|
|Earnings Date||Jan 22, 2020 - Jan 27, 2020|
|Forward Dividend & Yield||1.26 (2.23%)|
|1y Target Est||56.69|
Intel stock has been battered by product missteps, rising competition and a downswing in chip demand. Here is what the fundamentals and technicals say about the chipmaker's shares.
Chip giant Intel is dealing with challenges of current chip shortages and increased competition to its dominant position in PC and servers, but its researchers have their minds fully on the future. A team within Intel Labs announced a new cryogenic control chip — named Horse Ridge — that is intended to boost the development of quantum computing systems. Quantum computers are a new way of computing that relies on properties of quantum mechanics that enable systems to crunch calculations quicker than the most advanced supercomputers.
Juniper Networks Inc. said Monday it has appointed Raj Yavatkar as chief technology officer with a start date of later this month. Yavatkar was in charge of developing network virtualization infrastructure and products for cloud networking at Google , Juniper said in a statement. The executive has also done stints at VMWare Inc. and Intel Corp. . Yavatkar will replace Bikash Koley, who resigned in November, according to a regulatory filing. Juniper shares were down 1% Monday and have fallen 7.4% in 2019, while the S&P 500 has gained 25%.
Intel Corp. unveiled a chip Monday meant to speed the development of commercially viable quantum computers. Code named "Horse Ridge," the cryogenic control chip is meant to control multiple quantum bits, or qubits, which must be maintained at a few degrees above absolute zero. Unlike traditional bits, which take on a value of either "0" or "1," qubits are considered to be able to exist in multiple states simultaneously in a superimposed quantum state, allowing for more complex calculations. So far, quantum computing has been demonstrated in experimental conditions. "While there has been a lot of emphasis on the qubits themselves, the ability to control many qubits at the same time had been a challenge for the industry," said Jim Clarke, director of quantum hardware at Intel. "Intel recognized that quantum controls were an essential piece of the puzzle we needed to solve in order to develop a large-scale commercial quantum system. That's why we are investing in quantum error correction and controls. With Horse Ridge, Intel has developed a scalable control system that will allow us to significantly speed up testing and realize the potential of quantum computing."
Oracle's (ORCL) fiscal second-quarter results are expected to reflect solid adoption of cloud-based services and latest Autonomous Database.
Intel Corp on Monday announced a chip that it hopes will change that. Quantum computers remain years away from everyday use but have drawn the interest of major technology companies. In October, researchers at Alphabet Inc's Google said they had created a machine that can outpace conventional computers.
The Zacks Analyst Blog Highlights: Microsoft, United Technologies, Procter & Gamble, Walmart and Intel
Intel Labs unveils a new cryogenic control chip. "Horse Ridge" will speed development of full-stack quantum computing systems.
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. The Chinese government is taking further steps to remove foreign technology from state agencies and other organizations, a clear sign of determination for more independence amid escalating tensions with the U.S.Beijing will likely replace as many as 20 million computers at government agencies with domestic products over the next three years, according to research from China Securities. More than 100 trial projects for domestic products were completed in July, the brokerage firm said. The Financial Times newspaper said the Communist Party’s Central Office earlier this year ordered state offices and public institutions to shift away from foreign hardware and software.The government under President Xi Jinping has been trying for years to replace technologies from abroad, and particularly from the U.S. Bloomberg News reported in 2014 that Beijing was aiming to purge most foreign technology from its banks, the military, government agencies and state-owned enterprises by 2020. The country’s Made in China 2025 plan also set out specific goals for technology independence, although the policy has been de-emphasized after contributing to trade war tensions.U.S. President Donald Trump’s aggressive policies against China and its leading companies have given the effort renewed urgency. His administration banned U.S. companies from doing business with Huawei Technologies Co. this year and blacklisted other Chinese firms.“The trade war has exposed various areas of Chinese economic weakness, which Beijing seems determined to rectify,” said Brock Silvers, managing director of Adamas Asset Management. “If the decision pushes Trump to finally come down hard with a more forceful ban of Chinese tech, however, China may one day regret having gone so public with its policy so soon.”While the current push is narrow in scope, it is designed as part of the broad, long-standing effort to decrease China’s reliance on foreign technologies and boost its domestic industry. The goal is to substitute 30% of hardware in state agencies next year, 50% in 2021 and 20% in 2022, China Securities estimated, based on government requests and clients’ budgets.The research, from September, detailed Beijing’s goals. The FT reported the number of computers to be replaced could reach 30 million, attributing the figures to China Securities. The newspaper said the goal is to use “secure and controllable” technology as part of the country’s Cyber Security Law passed in 2017.Starting next year, key industries such as finance, energy and telecom will test more domestic products in trials that may last years, the firm said. Chinese banks are supposed to shift from International Business Machines Corp. and Oracle Corp. to more diversified X86 architecture suppliers and then eventually to fully made-in-China hardware. China has decided to adopt ARM architecture for its domestic hardware, China Securities said.“The China-U.S. trade war could also help to breed a new market for home-made products,” China Securities analyst Shi Zerui wrote.Still, Beijing’s push has proven difficult because its domestic industry hasn’t yet shown itself capable of matching foreign technologies in certain sectors. Particularly hard to replace, for example, are semiconductors from suppliers like Intel Corp. and Nvidia Corp., as well as software from Microsoft Corp. and Apple Inc.“While large suppliers such as Microsoft and IBM are undoubtedly worried, many high-end components, like chipsets, can’t be easily replaced,” Silvers said.\--With assistance from Debby Wu.To contact Bloomberg News staff for this story: Gao Yuan in Beijing at email@example.comTo contact the editors responsible for this story: Peter Elstrom at firstname.lastname@example.org, Vlad SavovFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Benzinga has examined the prospects for many investor favorite stocks over the past week. Bullish calls included e-commerce, electric vehicle and semiconductor leaders. Bearish calls included video streaming giant and biotech giants.
If TSMC makes good on its latest promise, it could hold onto its recently-won chip manufacturing lead for some time.
AMD's share value is up 1,330% since Lisa Su took over as president and CEO in late 2014. Now, a chip shortage at rival Intel is providing more opportunity for growth. So why are some Wall Street analysts down on AMD's stock market prospects?
The stock market is hitting new all-time highs. With it, many of investors' favorite stocks are becoming rather expensive. There are certainly fewer cheap value stocks today than there were last December, that's for sure.But don't despair. The rise in the S&P 500 and other stock market indexes hasn't caused all stocks to rise uniformly. Many companies have missed out on the rally. Some of these value stocks are held back by headline news, such as the trade war. Others of these value stocks are overlooked for more subtle reasons.Regardless, it's time to start sleuthing out some of the market's best holiday deals before the new year kicks off. Here are seven value stocks that need to be on your radar now.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Value Stocks to Buy: Intel (INTC)Source: Sundry Photography / Shutterstock.com Like several of the companies on this list, Intel (NASDAQ:INTC) is currently dogged by trade war concerns. The lack of certainty around the future of U.S.-China business relations puts a crimp on semiconductor spending. This has caused INTC stock to stall out just below the key $60 resistance level yet again, despite sharply improving operating metrics in recent quarters.Even as Intel stock has moved higher in recent years, the price-to-earnings ratio has failed to expand to any meaningful degree. Now, at $56 per share, Intel sells for just 12 times forward earnings. Intel's earnings, you should remember, are up from less than $2.50 per share in recent years to more than $4 per share today. Yet the market is still pricing Intel as though it were a little-to-no growth business.This idea that Intel is just a stagnant PC chip business really needs to be retired. The company has heavily invested in all sorts of new growth avenues to move beyond its legacy cash cow. Intel's strides in autonomous vehicles are particularly impressive. Yet, it still sells at a bargain-bin price. All the better for investors buying Intel stock today, however. Intel pays a healthy dividend and has bought back more than 1 billion shares of INTC stock over the course of this decade. * 7 Hot Stocks for 2020's Big Trends Sooner or later, the market will catch on to the huge earnings growth and capital return story that Intel is offering its shareholders. Wells Fargo (WFC)Source: Kristi Blokhin / Shutterstock.com Beloved by Warren Buffett and known for its sterling reputation, Wells Fargo (NYSE:WFC) used to be the cream of the banking crop. Then the scandal headlines and customer lawsuits started hitting and Wells Fargo's reputation went from outstanding to infamous virtually overnight.With it, so did Wells Fargo's valuation. Despite a roaring stock market in general and earnings growth at Wells Fargo over the past five years, WFC stock has gone absolutely nowhere. Five years ago in December, WFC stock sold for $55 per share, now it is at $54. In that time, it's gone from being highly priced to being a deep value stock.Why is it time to forgive WFC for its mistakes and buy into the story today? For one, all the old management has been cleaned out. The company has gotten rid of those with ties to the scandals and brought in highly respected former Visa (NYSE:V) CEO Charles Scharf. Two, the company is set for massive earnings growth in coming years. It is buying back 10% of its stock annually, which boosts earnings per share.Plus, Wells Fargo has billions in extra legal and compliance costs right now related to the bad customer practices of yesteryear. As those costs wind down going forward, profits will surge. Even assuming flat revenues due to the difficult interest rate environment, Wells Fargo should be able to get to $6 of EPS over the next two years, which would lead to 35% upside for the stock assuming a reasonable 12x-13x P/E ratio. Suncor (SU)Source: Kodda / Shutterstock.com Most investors hate energy stocks right now. It's not hard to see why; oil prices crashed in 2014 and have failed to meaningfully recover since then. Meanwhile natural gas has been getting more and more oversupplied with every passing year. Energy prices have been in steady retreat, so the industry has faced a calamitous downturn. Smaller exploration and production companies have been going bankrupt in droves, and things haven't been looking too good for the midstream pipeline companies either.Don't throw out the baby with the bathwater though. The major oil companies are still great investments. In fact, the longer oil prices stay down, the better the oil majors will do when the cycle finally turns up again. That's because the shortage of capital in the industry now is forcing severe layoffs and cutbacks on expansion plans. In future years, supply will drop significantly thanks to the absence of new production efforts. On top of that, the majors have been buying up assets on the cheap to take advantage of current market conditions.That's where Suncor (NYSE:SU) comes in. The Canadian integrated oil giant has been quietly building an oil sands production and refining empire over the past decade. Oil sands have become one of the world's cheapest sources of oil, with Suncor producing for just $25 per barrel or so. It also has supplies to last for many decades; oil sands, unlike shale, do not deplete quickly. Suncor's refining capacity has also insulated it from low crude oil prices in North America as it can sell higher-value gasoline and other finished petroleum products.Add it all up, and Suncor is a cash flow machine. It is offering a 12% cash flow yield, giving it room to pay a 4% dividend yield which it tends to hike by double digits every year. The company also has enough left over to both buy back stock and pay down debt. When oil prices turn up, Suncor stock will be set for a massive rally. Altria (MO)Source: Kristi Blokhin / Shutterstock.com Tobacco leader Altria (NYSE:MO) isn't quite the cheapest of value stocks, at least not compared to a month or two ago. Altria shares have recovered from $40 to $50. But don't think you're too late, Altria is still a relative bargain today. Keep in mind that MO stock traded as high as $75 per share not that long ago.It's not hard to see why Altria stock crashed. The company has seen its cigarette sales volumes decline more aggressively in recent years; the annual declines have moved from low single digits to closer to 5%. This makes it hard to keep revenues flat or increasing merely from price hikes. Altria seemingly panicked as a result, and paid way too much for its minority stake in vaping leader Juul. Investors have punished Altria mercilessly for this ill-timed blunder. As the federal government has cracked down on vaping, Juul's valuation has sunk. * 7 Retail Stocks to Buy That Dominated Thanksgiving Shopping However, the worst is over for MO stock. See, the bears can't have it both ways. If cigarette sales decline sharply, people are going to want to get nicotine from another source, of which vaping is the easiest alternative. Meanwhile, if the federal government limits vaping too much, people will simply go back to cigarettes. As long as people crave their nicotine, Altria will get its revenues one way or another. The government has seemingly realized this, and is now backing down on some of the harsher vaping rules. Molson Coors Brewing (TAP)Source: OleksandrShnuryk / Shutterstock.com If cigarettes and vaping aren't up your alley, how about beer? This brings us to Molson Coors Brewing (NYSE:TAP) which makes those namesake beer brands along with other well-known labels such as Miller and Blue Moon.The company acquired 100% ownership of Miller along with many other assets in 2016 when Anheuser-Busch InBev (NYSE:BUD) acquired SABMiller and regulators forced the combined entity to sell off some brands for antitrust reasons. Molson Coors took advantage and grabbed these assets at a seemingly favorable price. However, it took on a lot of debt to complete the deal, and combined with weak sales in recent years, its financial results have underwhelmed.This, in turn, has caused investors to dump TAP, making it one my favorite value stocks. It's down from a high of $110 to just $51 now. However, the tide is starting to turn. The balance sheet is getting stronger, and management just rewarded shareholders for their patience with a gigantic dividend hike this year.As a result, TAP stock now trades for just 12x earnings and pays a 4.5% dividend yield. The craft beer movement has already lost steam -- craft is barely taking any additional share from big beer. It's only a matter of time until Molson Coors gets revenue growth to kick in again, and the stock should move back up above 15x earnings, leading to sizable capital gains on top of the healthy dividend yield. Eastman Chemical (EMN)Source: Michael Vi / Shutterstock.com With its recent selloff, Eastman Chemical (NYSE:EMN) is back into the deep value stocks zone. EMN stock is now going for just 10x earnings. Traders have dumped shares of the former Eastman Kodak spinoff thanks to the trade war, which has caused a bit of an earnings slowdown. Eastman was originally supposed to make about $7.75 in EPS this year, now it will be closer to $7.20. Regardless, for a $75 stock, that's fantastic.Impressively, Eastman is on track to produce more than $1 billion in cash flow this year, meaning it is selling for less than 10x that metric. With all that cash, Eastman can pay a 3.3% dividend yield, buy back stock and pay down debt all at the same time. * 7 Exciting Biotech Stocks to Buy Now Investors aren't enthused for chemicals stocks right now because they are seen as cyclical. That, plus global trade concerns, have the sector in the penalty box. Make no mistake though, if this Federal Reserve easing cycle leads to any signs of an economic pick-up in 2020, these left-for-dead chemical stocks like Eastman should come roaring back. Corporacion America Airports (CAAP)Source: Shutterstock Finally, we get to the last of our value stocks, and this one is deeply under-followed. That's because Corporacion America Airports (NYSE:CAAP) is both a fairly recent initial public offering, and a company whose operations are centered in Argentina. The IPO was unfortunately timed, as Argentina's economy soon went into a tailspin after CAAP stock started trading on the New York Stock Exchange. To make matters worse, Argentina voted in a left-wing government this fall, triggering a rout on Argentine stocks.Add it all up, and CAAP stock has hit massive turbulence dumping from the IPO of $16 per share to just $4 now. Oddly enough, given the fall in stock price, the actual business is still going reasonably well. The company has a healthy balance sheet, and passenger traffic is still rising across its portfolio of airports. CAAP gets about 60% of its airport traffic from Argentine airports, but it also has major holdings in Brazil, Italy, Ecuador and various other countries. As a result, the market has now crushed CAAP stock for a 75% loss despite the fact that only 60% of its business is in Argentina. Even if Argentina goes into an economic depression, the other airports should more than support the stock price here.If the Argentina airports face a moderate decline in traffic, and the rest of the portfolio performs as is, the stock would be trading for less than 5x its earnings before interest, taxes, depreciation and amortization. That's an insane price for an airport operator -- publicly traded comparables in Mexico sell for around 12x EBITDA. European airport operators tend to sell for 15x-20x EBITDA. Currently, another emerging markets airport operator in Thailand is selling for nearly 25x. Just getting to 12x, where Mexican airports sell for, would cause CAAP stock to nearly quadruple from today's prices.There's no guarantee it will happen, but the odds favor an upturn in sentiment toward Argentina rather than a further darkening from the already-despondent mood. When things turn back up, CAAP stock should soar.At the time of this writing, Ian Bezek owned EMN, INTC, WFC, SU, CAAP, MO and TAP stock. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Hot Stocks for 2020's Big Trends * 7 Lumbering Large-Cap Stocks to Avoid * 5 ETFs for Oodles of Monthly Dividends The post 7 Overlooked Value Stocks to Buy That Will Shine in 2020 appeared first on InvestorPlace.
For anyone whose investments include technology, which should be everyone, Nvidia (NASDAQ:NVDA) is a core holding.Source: michelmond / Shutterstock.com That's because artificial intelligence, in both the cloud and at the edge, is a key to growth in the next decade. Nvidia has the chips and software that deliver it.The recent bull run has made Nvidia pricey in the short term. It opened Dec. 6 at 11 times its expected annual sales of $11.7 billion and 53 times earnings; it had a market cap of over $128 billion. It's down about 5% over the last week, and another dip may be coming.InvestorPlace - Stock Market News, Stock Advice & Trading TipsI wouldn't buy it here, but I already have some. If you don't, you need some, and you can still buy it here, if you have a 5-year time horizon. Why Nvidia MattersNvidia matters because AI matters.Inferencing, drawing conclusions based on data and acting on those conclusions turns dumb machines smart. Cars, stores, medical devices and networks are constantly taking information in, but until now, they haven't been using it. When they use it, they deliver tangible benefits to users. This is all about software, not just hardware. In this decade, hardware has become software, and Nvidia has led that revolution. * 7 Hot Stocks for 2020's Big Trends Until now, Nvidia chips have primarily gone inside clouds. Wins at the network edge have been limited to gaming, and gaming still matters. Gaming is a test bed for AI applications, with gamer decisions racing to increasingly high levels of abstraction, and gaming chips' processing what become the lower levels. But big wins are coming in areas beyond gaming. The company is going to get its share of those wins.Here, software matters as much as hardware. Nvidia has learned this in gaming, and is starting to apply this in markets like healthcare, where its Clara Federated Learning tools can not only help diagnose conditions in an emergency, but protect the privacy of patient data at the same time. Short-Term ThreatsAll the threats to Nvidia are short-term, niche events. No one has the broad front of AI tools and hardware that Nvidia offers.Analysts will tell you Intel (NASDAQ:INTC) is a threat to the company's dominance because it has the cash to buy start-ups like Movidius, Nervana and (now) Habana Labs. None of that represents a broad attack against its dominance in AI.The same thing is true for new silicon from Amazon (NASDAQ:AMZN). Its Inferentia chip is designed to hold down the cost of AI in the cloud, while Nvidia software has already gone on to deliver application support at the edge.Not all markets within the AI landscape move at the same rate. Right now, the automotive market is slowing, and Nvidia sales to the market are slowing with it. But this is also a short-term hiccup, as the transport industry looks to find which self-driving niches will pay.All these events play on Nvidia shares in the short term. They don't affect the long-term outlook. The Bottom LineNvidia was once a graphics chip company. Then it was a cloud chip company. * 10 Stocks That Should Be Every Young Investor's First Choice Today, Nvidia is an artificial intelligence company.AI requires chip support both in the cloud and at the edge. It also requires new platforms in which new tools can be designed and implemented.While analysts and investors have been looking at short-term gains and losses in particular subsets of the market, Nvidia has been marching ahead along a broad front of AI, supporting it in the cloud, at the edge, and within the workstations where tomorrow's applications will be created.That's what makes Nvidia a core holding today. You don't have to buy it when the market is at a high, but it needs to be in your portfolio in the 2020s.Dana Blankenhorn is a financial and technology journalist. His latest book is Technology's Big Bang: Yesterday, Today and Tomorrow with Moore's Law, essays on technology available at the Amazon Kindle store. Write him at email@example.com or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in Nvidia and Amazon. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Hot Stocks for 2020's Big Trends * 7 Lumbering Large-Cap Stocks to Avoid * 5 ETFs for Oodles of Monthly Dividends The post Nvidia Is Fairly Priced But Still Worth Buying appeared first on InvestorPlace.
Qualcomm (NASDAQ:QCOM) has trended down in recent weeks. Despite hitting its 52-week high in early November, investors are growing skittish again about the company's prospects. While 5G could be a big catalyst going into 2020, regulatory risks remain a huge caveat.Source: Akshdeep Kaur Raked / Shutterstock.com Qualcomm is fighting off an antitrust ruling in the United States. The Federal Trade Commission believes Qualcomm's "no license, no chips" policy is anti-competitive. But Qualcomm is gearing up to fight the ruling early next year.The U.S. isn't the only place Qualcomm is facing regulatory hurdles. South Korea fined Qualcomm $873 million due to similar alleged anti-competitive practices. A South Korean court upheld the fine, but the company plans to fight the ruling. Qualcomm has a lot to lose in these battles. Its main business may be manufacturing mobile chips. But charging cell phone manufacturers royalties is its true profit center.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThis combination of opportunity (5G) and risk (regulatory threats to licensing cash cow) makes Qualcomm a stock tough to analyze. But based on the current valuation, there may be plenty of room for downside. Qualcomm Could Win (or Lose) Big in 2020All bets are off whether Qualcomm "wins big" or "loses big" in 2020. Next year could be crowned the "year of 5G." Apple (NASDAQ:AAPL) and other phone makers plan to launch 5G-enabled smartphones. 5G smartphones are expected account for 51% of total sales by 2023. 5G also opens the door for markets outside of mobile. The rise of internet of things devices provides ample growth opportunity. * 7 Hot Stocks for 2020's Big Trends Will this translate into explosive growth for Qualcomm? The jury's still out. After winning its dispute with Apple, the iPhone maker agreed to resume using Qualcomm modems. But Apple's long-term plan is to build modems in-house.Then there's the China factor. Even if the U.S. "wins" the trade war, Qualcomm could still lose. Thanks to the U.S. export ban, Huawei has reduced its dependence on U.S. chip makers like Qualcomm. Huawei now largely uses modems made in-house. Qualcomm sells mobile chips to some of Huawei's competitors. But given their declining market share, Qualcomm is losing ground in this important mobile market.The tide may be turning for Qualcomm's mobile chip dominance. Add in the ongoing regulatory hurdles, and there's good reason to be cautious about the stock. Qualcomms's FTC AppealWhat are the odds Qualcomm prevails in its appeal? Predicting the outcome of litigation is tough prognostication. Especially if you fall in the "I am not a lawyer" category. But recent news may point to challenges in Qualcomm's case.In a brief filed with the Ninth Circuit Court of Appeals, Intel (NASDAQ:INTC) claims Qualcomm's actions drove it out of the smartphone chip business. Intel says this is why it sold the business to Apple at a "multi-billion dollar loss." This brief provides plenty of ammo for the FTC's case.But other federal agencies could sway the outcome. The Department of Defense and Department of Energy are both on Qualcomm's side. As a "trusted supplier" of 5G technology, both agencies are urging for the court of appeals to pause enforcement of the decision.As I've said previously, the ball's in the (Ninth Circuit) court. It's tough to say whether it will back the FTC or not. But the outcome of this decision has big ramifications for Qualcomm. If the company prevails, expect the stock price to shoot up. Without this ruling hanging over the company, investors will regain their confidence in QTL's future prospects.With 5G opportunities and regulatory risks, it makes sense why Qualcomm trades at its current valuation. Qualcomm's forward price-to-earnings ratio is 28.1. This exceeds Intel's forward P/E of 12.9. But high-flying chip makers like Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD) trade at much higher multiples.NVDA trades for 48.6 times forward earnings. AMD trades at a staggering 94.4 times forward earnings. I don't expect Qualcomm to ever reach such frothy levels. But with its 5G potential, Qualcomm could benefit from multiple expansion -- if it can shake off the FTC's attempts to curtail its business. Bottom Line: Qualcomm Is Fairly ValuedAssessing the opportunities and risks for Qualcomm, it's safe to stay shares are fairly valued. Qualcomm's premium to Intel stock is fair, given the company's 5G growth opportunities. But the large discount to high-flying chip names like Nvidia and AMD is also rational. While the jury's out whether Nvidia and AMD will deliver on their growth promises, at least both companies aren't facing potentially crippling regulatory rulings.Qualcomm could soar again if the Ninth Circuit Court rules in its favor. But this is not the end all, be all for Qualcomm. With big phone makers like Apple and Huawei going in-house for modem production, Qualcomm's salad days may already be over.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Hot Stocks for 2020's Big Trends * 7 Lumbering Large-Cap Stocks to Avoid * 5 ETFs for Oodles of Monthly Dividends The post Catalysts, Risks Could Make or Break Qualcomm in 2020 appeared first on InvestorPlace.
The major stock indexes jumped at the stock market open after a strong jobs report. Tesla accelerated higher after its bull case price target was upped to 500.
After suffering a devastating drop in market value late last year, Nvidia (NASDAQ:NVDA) has been on the recovery track. On a year-to-date basis, Nvidia stock has gained an impressive 57%. However, shares have some ways to go before reaching 2018's highs. Not only that, NVDA has started to stumble recently, printing some red ink in the technical charts.Source: Hairem / Shutterstock.com So, what's going on? Primarily, NVDA stock is a mix of positive and negative news. On the optimistic end of the spectrum, Nvidia turned in a solid earnings report for its third quarter.The semiconductor and tech firm delivered earnings per share of $1.78 and revenue of $3.01 billion. These results handily beat out analysts' expectations for EPS of $1.57 and top-line sales of $2.91 billion.InvestorPlace - Stock Market News, Stock Advice & Trading TipsJust as importantly, management expects Q4 revenues to hit between $2.89 billion to $3.01 billion, representing a substantial lift from Q4 2018 results. Moreover, if sales come in as forecast, it would stop the company's consecutive series of quarterly sales declines. On paper, that's a net positive for Nvidia stock.However, as our own Tom Taulli points out, NVDA stock has many challenges ahead despite recent fundamental improvements. First, Taulli mentions the competitive risks clouding shares. For instance, Advanced Micro Devices (NASDAQ:AMD) has turned up the heat with its premium processors. Plus, big dogs like Intel (NASDAQ:INTC) are encroaching in the artificial intelligence training space, where computers learn various protocols (such as AI-powered cars avoiding obstalces). * 7 Hot Stocks for 2020's Big Trends Second, the overhang of the U.S.-China trade war is incredibly distracting for Nvidia stock. Taulli notes that one consequence is Nvidia's pending acquisition for Mellanox Technologies (NASDAQ:MLNX), which Chinese authorities could block.Still, patient investors have an ace up their sleeve: "real" AI. Appreciating the Granularity of Nvidia StockAlthough NVDA stock admittedly faces competitive threats in AI, it's also well-positioned to dominate the space. That's because the company has substantial expertise in its chipset technologies which power AI platforms. And as these platforms become more sophisticated, Nvidia's chipset leadership should distinguish it from the competition.To understand why, we have to understand the granularity of AI, which is divided into two basic categories: training and inference. Briefly speaking, the former category describes programmers "teaching" computers to respond to pre-defined data sets. But the latter describes true AI. It involves computers taking training material and applying it to variable conditions and "stimuli."For instance, you can train an automotive AI system to recognize road markings, traffic signals, and pedestrians. But with inference, an AI-driven vehicle can turn to avoid a suicidal person lunging for the car. Essentially, inference platforms "know" what to do.Although we're some time away from human-like droids, inference-based AI platforms have practical applications in the here and now. Obviously, though, these data-intensive initiatives require capable processors. That's the long-term upside potential for NVDA.Furthermore, according to a McKinsey & Company study, the AI market offers big pathways for growth. In their words, it's the best opportunity for the semiconductor industry "in decades." And the opportunity will be decisively geared more toward inference-processing hardware over AI training hardware. Theoretically, this benefits NVDA stock while providing at least a temporary moat against many competitors.As data processing for these advanced initiatives become more resource-intensive, we may see more consolidation in the industry. If this occurs, it's a natural tailwind for Nvidia stock. After all, the underlying company is on track to spend over $2.7 billion in research and development, far more than smaller competitors like AMD. Opportunities Abound for the Big DogsAnother note about the competition: I wouldn't excessively worry about Intel's encroachment into AI. This space is more than big enough to accommodate several big dogs of tech.With AI, most folks probably think in terms of accretive or disruptive applications, such as smart grids or self-driving taxis. However, AI is also incredibly pertinent to defense and security.We learned this the hard way from vicious terrorist attacks that occurred in Europe over the past holiday weekend. One of the themes that have popped up in the aftermath is resource distribution. Simply put, law enforcement agencies are stretched far too thin, allowing would-be terrorists to slip through the cracks.One of the most profound implications of AI is preventative counterterrorism. With Nvidia's innovations in facial recognition, combined with future developments in behavioral predictability platforms, societies can eventually recognize a threat before it activates.Of course, what I'm discussing is years down the line. Still, Nvidia is hard at work developing tomorrow's technologies today. If you're willing to ride out some chop, NVDA stock has serious long-term potential.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Tech Stocks You Wish You'd Bought During 2019 * 5 Under-the-Radar Marijuana Stocks With Over 100% Upside * Watch These 5 STARS Stocks as They Change the Future The post Real AI Expertise Is the Difference Maker for Nvidia Stock appeared first on InvestorPlace.
Alibaba (BABA)-backed AutoX applies for testing its self-driving vehicles, without in-car driver backup, thereby stirring competition in the autonomous-vehicle tech space.
Intel (NASDAQ:INTC) is likely to rise significantly from two shareholder-friendly moves: an expected dividend hike in Q1 2020 and the company's new $20 billion share repurchase program. This after Intel stock survived a pretty choppy 2019 to come out looking good.Source: Kate Krav-Rude / Shutterstock.com Typically Intel increases its dividend per share no longer than after four quarters. It has been four quarters since the last dividend increase. So there is every reason to expect one by no later than the announcement of Q4 earnings, sometime in early Q1 2020.In the last five years, Intel grew its dividend per share by an average of 5.92%. Its quarterly dividend of 31.5 cents per share is up 5% from the last hike on Feb. 5. As mentioned, there have now been four quarterly dividends of 31.5 cents per share.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIntel generates plenty of cash to pay its dividends. In fact, free cash flow is expected to be $16 billion this year, according to Intel's latest guidance. In the nine months to September 30, Intel paid out $4.214 billion in dividends. So at the same rate, dividends are likely to be $5.596 billion this year, well below FCF of $16 billion. * 7 Retail Stocks to Buy That Dominated Thanksgiving Shopping But since Intel has been buying back stock very aggressively, it is likely the dividend hike this time will be higher. Buybacks and the Dividend HikeIn the last four quarters, Intel has bought back so many of its own shares that its share count is down 4.69% or 214 million shares for $10.1 billion. So think about it. That means that if Intel decides to pay out 5% more in dividends, its dividend per share hike would be greater than 5%.Intel will likely spend $1.382 billion in dividends in Q4. If the next dividend payment is 5% higher the dividend payment will be $1.4511 billion. But the number of shares outstanding is now 5% lower at 4.35 billion. Therefore the new dividend per share will be 33.39 cents per share. This is 5.9% higher than before, not 5%.In other words, the dividend per share hike benefits from the dividend payment increase by a greater amount on a percent basis. You can imagine, over time, this could compound into a significant gain. Intel Stock and the New Buyback ProgramOn Oct. 24 Intel announced a whopping increase in its buyback program. First of all, it made clear that in the third quarter, it had bought back $4.5 billion in shares. This is 45% of the $10.1 billion it spent during the whole past three quarters. In other words - a major increase.Then Intel also said its board of directors had authorized another $20 billion in share repurchases. At today's price that would amount to almost 10% of its $243 billion market value (i.e., including its buybacks this quarter).If Intel repurchases 10% of its stock, plus the 5.9% increase in dividend per share (with a 5% hike in dividend payments), Intel stock is likely to rise. By my math, that means the Intel stock is due for a 16% increase. It could go higher if the buybacks are done aggressively and the dividend payment increase is greater than 5%. What Should Investors Do?With this information, we can estimate that Intel is likely worth at least $64.96 per share, or 16% higher than today. This assumes that today's dividend yield of 2.25% stays the same. There is every reason to believe it will.If anything, the yield is likely to drop, pushing up Intel stock, since the dividend per share hike will make the stock more attractive to investors.There is also the possibility that Intel will announce the dividend per share increase prior to the announcement of earnings for Q4 2019. Last year the dividend per share increase was announced on January 24, along with the Q4 earnings. But in prior years, it has sometimes made earlier announcements.Intel stock will likely benefit from the expected dividend hike and the higher buyback program. If you are a shareholder I would continue to hold. If not, it is probably better to buy the stock before the dividend hike announcement sometime between now and late January.As of this writing, Mark Hake, CFA does not hold a position in any of the aforementioned securities. Mark Hake runs the Total Yield Value Guide which you can review here. The Guide focuses on high total yield value stocks. Subscribers a two-week free trial. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks to Buy That Dominated Thanksgiving Shopping * 6 Manufacturing Stocks to Buy as the Economy Recovers * The 7 Best Cryptocurrencies to Buy as Blockchain Heats Up The post Intel Stock Will Rise from Dividend Hike and Huge Stock Buybacks appeared first on InvestorPlace.
As stock market volatility continues, the blue-chip index is showing fluctuation. However, a closer look into the index reveals that not all stocks are erratic.