|Bid||107.96 x 1000|
|Ask||108.01 x 800|
|Day's Range||107.71 - 108.14|
|52 Week Range||65.68 - 121.13|
|Beta (3Y Monthly)||0.09|
|PE Ratio (TTM)||35.89|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Recessions in the semiconductor industry hearken back to the days before computing. They're inventory recessions. Supply exceeds demand, so production slows while supply is worked off. Once inventory comes back into balance, prices rise and supply resumes.Source: Hairem / Shutterstock.com The latest results from Nvidia (NASDAQ:NVDA) indicate the latest chip recession, which began a year ago, is already easing. Net income of $552 million, 90 cents per share was down by half from what it was then. But revenue of $2.58 billion was up 16% from the previous quarter.This put some wind back beneath the wings of the stock. It shot up $10 per share almost immediately. With the stock market roaring back, Nvidia opened Aug. 19 up another $5, at $164.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Smart Money BuyingBut the smart money was already in. So was I. I picked up 100 shares for my retirement account in May, so after a bumpy ride (it has since been as low as $132) I'm in the money. * 7 Safe Dividend Stocks for Investors to Buy Right Now I have also recommended the shares twice since the start of July. First I recommended it for those who look good in leather jackets, like Nvidia CEO Jensen Huang. More recently I have counseled patience, calling it an essential long-term holding.Over the next 5-10 years the future for Nvidia looks so bright you need to wear shades.Nvidia is the leader in computer graphics as even Microsoft (NASDAQ:MSFT) acknowledged in using it for its video game Minecraft. NVDA's only cloud rival in data center graphics is Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), so cloud companies that want to keep up almost have to buy its silicon.The same technology that makes computer games pretty and brings in the Bitcoin is essential to delivering artificial intelligence from clouds. Even if Advanced Micro Devices (NASDAQ:AMD) increases its share of an Nvidia market, Nvidia will prosper.The data center business will be further fortified by the pending acquisition of Mellanox (NASDAQ:MLNX), whose internal communications fabric gives Nvidia a more complete solution for cloud builders. Nvidia has already announced a "cloud in a box" to bring new applications to the network edge, to factories and office buildings. What AI Means for NvidiaWith Nvidia, artificial intelligence means computers can respond easily to natural language requests, making more applications self-service. In his conference call after the earnings announcement Huang said over 4,000 AI startups are now working with his company. Graphics chips are getting better at recognizing objects, bringing self-driving cars, trucks and buses closer.The point is that AI isn't just a cloud thing. It's also an edge thing. Building intelligence into factories and cities, not just for maintenance but for regular operations, will be the next leg in demand. Chips for those applications are about to be released.As a demonstration of what is possible, Nvidia is delivering Jetson Nano, a small-scale development kit with both hardware and software. These kits are available online for as little as $100 and by 2025, machine learning will be a $40 billion market. The Bottom Line on NVDA StockEven if there's a general recession ahead, technology is the first industry out of it. Office jobs that disappeared in the 2001 recession did not come back. Neither did the sales jobs that disappeared in the 2008 recession. It's hard to tell which jobs will disappear this time, but at minimum there will be fewer operators standing by.When automation becomes a survival strategy, Nvidia will be a good stock to be in. Since the bottom of the last recession NVDA stock is up 1,200%. More good times are ahead.Dana Blankenhorn is a financial and technology journalist. He is the author of the environmental story, Bridget O'Flynn and the Bear, available at the Amazon Kindle store. Write him at firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in NVDA and MSFT. 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 Nvidia Stock Will Survive the Chip Recession appeared first on InvestorPlace.
Nvidia’s stock went from unstoppable to nearly uninvestable in the matter of a few weeks last year and has not recovered. The sudden drop in Nvidia’s (NVDA) stock price and a competitive ecosystem that’s hard to understand are two reasons the chipmaker has scared away growth investors, who have opted for momentum bets such as cloud-software companies. The fact that semiconductor companies are cyclical, and mired in the U.S.-China trade war, has further overshadowed Nvidia’s growth potential.
After reporting 760% EPS growth last quarter, Big Data stock Inphi is set to report Q2 earnings. Is the highly ranked chip stock ready to rise or retreat?
ANSYS' (ANSS) second-quarter earnings are likely to benefit from growing clout of company's software simulation solutions in the automotive end-market.
It's been a wild few months for shares of Qualcomm (NASDAQ:QCOM), as the global chip giant has found itself in the middle of a lot of noise - ranging from corporate deals, to legislation, to geopolitical tensions - the sum of which has slung Qualcomm stock from $50, to $90, back to $65, and up to $75.Some of that noise has been very positive for QCOM stock. Qualcomm recently signed a huge deal with Apple (NASDAQ:AAPL) wherein Apple licensing revenue will come back into the Qualcomm ecosystem for the next several years. Some of it has been negative. The FTC recently ruled that Qualcomm's licensing agreements violated antitrust law, and need to be renegotiated.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut, if you zoom out, the fundamentals underlying Qualcomm stock are favorable. In the big picture:* Global semiconductor market fundamentals are starting to improve.* Qualcomm's standing in that market is likewise improving thanks to the landmark Apple deal.* Recent developments with respect to Qualcomm's licensing business imply that Qualcomm won't see any hit on its licensing business anytime soon.* Qualcomm stock is still pretty cheap relative to its now very big near term growth prospects. * 7 Oversold Stocks To Buy Right Now Net net, then, Qualcomm stock - which is already up more than 30% year-to-date - should stay in rally mode for the foreseeable future. Global Semiconductor Market Fundamentals Are ImprovingThe global semiconductor market has been in free fall in 2019 as rising geopolitical tensions and economic uncertainty have weighed on global demand, against the backdrop of sky-high inventory levels, resulting in depressed sales and margin figures for semiconductor players like Qualcomm.But, the market is finally starting to show signs of life. While still down big year-over-year, global semiconductor sales improved month-over-month in May for the first time in several months, including a month-over-month gain in the all-important Americas and China markets.Further, Texas Instruments (NASDAQ:TXN) recently reported Q2 revenue and profit beats as operations improved sequentially. Teradyne (NASDAQ:TER) also reported Q2 revenue and profit beats amid strong 5G and networking demand. Mellanox (NASDAQ:MLNX) topped Q2 revenue estimates as the company reported sustained strong cloud and AI demand. Intel (NASDAQ:INTC) reported strong Q2 numbers, too.Net net, global semiconductor market fundamentals are stabilizing and improving, and this dynamic provides an increasingly favorable backdrop for QCOM stock. Qualcomm's Competitive Positioning Is ImprovingImportantly, Qualcomm's competitive positioning in the soon-to-be resurgent global semiconductor market is improving.This comes back to the fact that Apple is once again a Qualcomm customer. For several years, Apple was one of Qualcomm's biggest and most important customers. Then, the two started arguing over licensing agreements and royalty fees. Apple stopped paying the disputed licensing fees.In April, though, the two companies came to a deal. They dropped all litigation, Apple paid Qualcomm a huge lump sum fee for missed payments, and the two agreed to a multi-year partnership wherein Apple has essentially been locked in as a Qualcomm customer into 2025.That's big news for two reasons. First, it means one of Qualcomm's biggest and most important customers is back, and locked in for the next several years. Two, it means Qualcomm should get a huge boost when Apple launches its 5G phone next year.Broadly, thanks to the Apple deal, Qualcomm's profit growth outlook over the next several years is quite favorable. Qualcomm's Licensing Business Won't Get Hit Anytime SoonOne of the biggest risks to the QCOM growth narrative has been the concern that Qualcomm's licensing business will take a big hit over the next few years as the government forces Qualcomm to renegotiate such deals on less favorable terms.This concern was birthed out of an FTC ruling which found that Qualcomm's licensing practices violated antitrust law. But, since then, the U.S. Justice Department has requested that the enforcement of this antitrust ruling be put on pause.Citing support from the Energy Department and Defense Department, the DoJ basically stated that the ruling was incorrect and that disrupting a company as important to the nation's energy and defense services as Qualcomm would have broadly adverse implications.The DoJ's request for a pause here certainly isn't the last chapter in this book. But, it does imply that over the next few chapters, no hammer will be brought down upon Qualcomm, meaning that the company's mobile licensing business should remain healthy for the foreseeable future. Qualcomm Stock Has Valuation UpsideGiven the company's robust profit growth potential over the next few years, QCOM stock seems slightly undervalued at current prices.Qualcomm's depressed revenue and profit trends will improve in the back-half of 2019 thanks to renewed Apple revenue. In 2020 and 2021, Qualcomm's revenue and profits will get another big boost thanks to the widespread roll-out of 5G coverage and 5G smartphones. Thus, between now and 2021, Qualcomm's revenue and profits stand to rise by a lot.According to YCharts, the consensus revenue estimate for fiscal 2021 is $28.4 billion, up 25% from last year's $22.7 billion revenue base. The consensus EPS estimate for fiscal 2021 is $6.80, up 85% from last year's $3.60 EPS base.Thus, when contextualized with the fact that EPS is expected to nearly double over the next few years, QCOM stock's elevated forward earnings multiple of 20 makes sense.If you apply this stock's historically average 13-times forward multiple to the fiscal 2021 projected EPS base of $6.80, you arrive at a fiscal 2020 price target of over $88. Discounted back by 7% (three points below 10% to account for the 3% yield), which equates to a fiscal 2019 price target of just under $83. Bottom Line on Qualcomm StockThere has been a lot of noise surrounding QCOM stock over the past several months. But, zooming out, the core fundamentals underlying this stock are favorable, and project to remain favorable for the foreseeable future. All things considered, then, Qualcomm stock has fundamentally supported runway to prices above $80 over the next few months.As of this writing, Luke Lango was long QCOM and INTC. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Oversold Stocks To Buy Right Now * 7 Stocks to Buy Upgraded by Wall Street * 7 Marijuana Stocks With Critical Levels to Watch The post Four Big Reasons Why Qualcomm Stock Can Stay in Rally Mode appeared first on InvestorPlace.
Shares of GPU giant Nvidia (NASDAQ:NVDA) have been on a roller coaster ride over the past year. A year ago, Nivida stock was an untouchable AI stock closing in on $300.Source: Shutterstock At the end of 2018, though, Nivida plummeted to $130 on global semiconductor market meltdown concerns. Those concerns eased in early 2019. NVDA stock shot up to $190 by April. Then, by June, it had dropped to $130 again as semi market meltdown concerns came back to the forefront. They have since eased, and Nvidia stock has rebounded to $170.Net net, over the past 12 months, the Nvidia stock price has traveled from $300, to $130, to $190, back to $130, and up to $170.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks to Sell This Summer Earnings Season That's a wild ride. But, I think this wild ride is set to end soon. Specifically, I think global semiconductor market fundamentals are showing signs of stabilizing and improving. As those fundamentals do stabilize and improve, NVDA stock should similarly stabilize into a more normal medium to long term uptrend.That's why I'm bullish on NVDA stock here. I've reiterated time and time again that late 2018 and early 2019 weakness in the stock was a byproduct of temporary market weakness. That market weakness is now passing. Taking its place will be longer-running secular tailwinds.Ultimately, those secular tailwinds create a visible pathway for NVDA stock to climb back towards $300 in the long run. Market Fundamentals Are ImprovingThe bull thesis on NVDA stock is that the company's core fundamentals are finally starting to improve, after a multi-quarter stretch of temporary but ugly turbulence.The semiconductor market has been hit hard over the past few quarters. There have been a few things at play here, including sky-high inventory levels, weak demand in the face of go-forward economic uncertainty, and rising geopolitical tensions. Nvidia has not been exempt from these headwinds. Over the past few quarters, the company's revenues, margins, and profits have been in free fall.But, the semiconductor market is showing early signs of bottoming out and turning around. From a macro perspective, global semiconductor sales improved month-over-month in May. While still down big year-over-year this was the first time that has happened in several months, including a month-over-month gain in the all-important Americas and China markets.Further, the forecast calls for a 2019 year-over-year sales decline of 12% (less than the first quarter's 13% drop), and a 2020 year-over-year sales gain of over 5%.Broadly, then, global semiconductor sales trends are finally turning a corner, and are expected to improve into the back half of 2019 and 2020.The microdata confirms this macro outlook. Texas Instruments (NASDAQ:TXN) recently reported Q2 revenue and profit beats as operations improved sequentially. Teradyne (NASDAQ:TER) also reported Q2 revenue and profit beats amid strong 5G and networking demand. Mellanox (NASDAQ:MLNX) topped Q2 revenue estimates as the company reported sustained strong cloud and AI demand. Intel (NASDAQ:INTC) reported strong Q2 numbers, too.Net net, global semiconductor market fundamentals are stabilizing and improving, and this dynamic should power NVDA stock higher for the foreseeable future. Nvidia Stock Has Runway HereThe valuation underlying NVDA stock, coupled with this company's robust long term profit growth potential through numerous AI and data verticals, implies that at $170, the stock has a lot of long term upside potential.Nvidia has broad exposure to all of tomorrow's most important markets. The company is a big player in the hyperscale data-center space. They are also the leaders when it comes to supplying chips for machine learning, AI, self-driving, cloud gaming, augmented reality, and much, much more.All of those markets have huge growth potential in the long run. The company also has very little price competition in those markets, implying that margins have room to move higher in the long haul. Consequently, Nvidia should continue to fire off double-digit revenue and profit growth rates over the next few years.Nvidia stock trades at 32-times forward earnings. Sure, that's a big multiple for a semiconductor stock (the average forward earnings multiple in this space is 16). But, the average long term projected earnings growth rate across the semiconductor space is 11%. For Nvidia, it's 15%, according to YCharts.Indeed, my modeling suggests that $13 in EPS is achievable for Nvidia by 2025, assuming double-digit revenue growth and steady margin expansion. Based on a growth-average 20 forward multiple, that yields a long term price target for NVDA stock $260. Bottom Line on Nvidia StockNvidia stock has undergone immense turbulence over the past year, mostly due to immense turbulence in the global semiconductor market. But, fundamentals in that market are starting to stabilize and improve. As they continue to do so over the next few months, NVDA stock should move higher with less volatility.As of this writing, Luke Lango was long NVDA and INTC. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 5G Stocks to Connect Your Portfolio To * 7 Stocks to Sell This Summer Earnings Season * 6 Upcoming IPOs for July The post It Looks Like Nvidia Stock Is Shaking out of its Downturn appeared first on InvestorPlace.
Mellanox (MLNX) delivered earnings and revenue surprises of -0.65% and 1.00%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?
Nvidia (NASDAQ:NVDA) stock has become a frustrating investment for longs. Over the last five years, NVDA has gone from a stock left for dead to becoming a driver for tech innovation. Certainly, in the coming years, Nvidia chips will probably power many of the latest technological advances. Click to Enlarge Source: Shutterstock The recent trading patterns of NVDA stock have left many investors confused. The stock has twice bounced back from close to the $130 per share level.However, with the stock seeing two significant pullbacks since October, Nvidia stock seems to lack a catalyst that will take it back to its highs. Until investors see more convincing price action, they should probably avoid Nvidia stock.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Defense Stocks to Buy to Fortify Your Portfolio Nvidia Has a Solid FutureRarely do investors see such a stark divergence between short term and long term. In the long run, prospects appear bright for NVDA. Nvidia should remain a leader in artificial intelligence (AI), virtual reality (VR), self-driving cars, and data centers, on top of its core gaming capabilities. Also, its recent move to acquire Mellanox (NASDAQ:MLNX) will likely bolster its data center capability.To be sure, NVDA faces still competition from old rivals, Intel (NASDAQ:INTC) and especially AMD (NASDAQ:AMD). As our own Tom Taulli states, AMD may have even taken the performance lead on PC gaming hips.InvestorPlace contributor Dana Blankenhorn also mentions the AI-based cloud solution will also put Nvidia at odds with Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG), Amazon (NASDAQ:AMZN), and Microsoft (NASDAQ:MSFT).Still, I also agree with Taulli that this challenge from AMD will likely spur Nvidia's R&D arm to speed the pace of innovation. Blankenhorn also points out that the development of the SuperPod should further demonstrate this competitive edge. As consumers and businesses widely adopt this technology, NVDA will probably rise well above the $292.76 per share record high. NVDA Is Range-BoundUnfortunately for Nvidia bulls, it will take years for any of this to help investors. Buying NVDA now for its long-term prospects could lead to years of frustration. Here's why.With the stock price close to $170 per share, it has risen substantially from its intraday low of $132.60 per share in early June. Admittedly, many would envy a 28% return over six weeks. Still, less than six weeks before hitting that low, NVDA peaked an intraday high of $192.81 per share before the drop.We do not know for sure what NVDA will do until we see how it behaves at the low-$190s per share level again. However, the price action indicates it may have become stuck in a range. At this point, I think investors should consider this a range-bound stock until proven otherwise.At the $170 per share price level, that means investors have slightly more than a 10% upside before the Nvidia price nears the top of that range. The downside of the range would mean a 20% to 25% loss. Hence it makes little sense to buy at this level.It also does not pay to buy and wait for the eventual long-term upside. NVDA has built a six-year streak of dividend increases. I also see little that would compromise future annual payout hikes. However, the 64-cent per share annual dividend yields only 0.38%. Traders can earn more than that on their money at the bank without the risk. The Bottom Line on Nvidia StockUntil proven otherwise, investors should assume that NVDA is a range-bound stock. Nvidia stock looks like a buy below $140 per share. It also becomes a likely buy if it stops falling below the $190 per share level. Hence, at around $170 per share, traders have more potential downside than upside in the short term.Once Nvidia's technologies see widespread adoption, the range should break. However, without a catalyst, investors face a negligible payout and possibly years of range-bound trading in their future. Until Nvidia gives traders a reason to buy it, I would stay away.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Defense Stocks to Buy to Fortify Your Portfolio * 10 High-Flying, Overvalued Stocks in Danger of Crashing * 8 Stocks to Buy That Are Growing Faster Than Amazon The post Unfortunately, Nvidia Stock Won't Be Going Anywhere for Awhile appeared first on InvestorPlace.
Mellanox (MLNX) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
As analysts wonder whether the chip slump is over, Nvidia (NASDAQ:NVDA) is engaged in a highly-publicized fight with Advanced Micro Devices (NASDAQ:AMD) over the gaming market.Source: Shutterstock Is the new AMD chipset as good as Nvidia's GeForce graphics cards? Are the new Nvidia boards much better for gamers at all?All this is of great interest to gamers like my son, who asked all weekend whether he should plunk for a new graphics engine on his 3-year-old PC. It may even stimulate near-term volatility and profits for short sellers.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut if you're a long-term investor and see strength 10 years ahead of you instead of infirmity, this is not where the game is. The game for you is artificial intelligence. It's in the clouds and new devices we can barely imagine today. * 7 A-Rated Stocks to Buy for the Rest of 2019 That's the game Nvidia aims to win. The AI GameNvidia has been focused on the cloud market in recent years, specifically in general purpose chips that accelerate the work of clouds. They dominates that market the way Intel (NASDAQ:INTC) once dominated PCs.Rivals are hiding in niches, trying to turn what had been field-programmable gate arrays (FGPAs) into competition for general purpose Nvidia chips. Xilinx (NASDAQ:XLNX), Intel and AMD are all doing similar things. But Nvidia still has the most complete solution for cloud-based artificial intelligence (AI). That will become more apparent once its acquisition of Mellanox (NASDAQ:MLNX), whose "networking fabric" delivers optical speeds within data centers, is complete.Nvidia's recent construction of its own AI computer, dubbed the SuperPod, demonstrated just how big its data center ambitions are.Nvidia's competition won't come from other chipmakers but from the cloud giants themselves. Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG), Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN) are all working on AI chip sets for their clouds, knowing that keeping costs down on scaled infrastructure is still their key to success.To win them over Nvidia is demonstrating inference chips with 32 "chiplet" processors, while commercial chips are running with four or eight processors. Nvidia's processor is like a cloud on a chip.None of this is cheap. Nvidia's research budget last year came to nearly $2.4 billion, one-third more than the previous year. That's twice as much as it spends on selling and general administration, over one-third of total operating spending. But if it keeps Nvidia ahead of its customers, it's money well-spent. NVDA Has Much to WinThere's a common misperception among investors that everything falls in a recession.It's not true. Throughout this century technology has recovered ahead of the general economy. Technology that can cut costs, not just create new markets, has done especially well.That's where Nvidia expects to win. Replacing labor, even intellectual labor, with machines boosts productivity once customers realize they must either innovate or die. It eliminated middle managers in the 2000s, insurance salesmen in the 2010s, and is bound to eliminate millions of drivers and machine operators in the next decade.What will be left will be the value those jobs provided. Deliveries will still reach you, just as you can still buy insurance and run a scaled enterprise. A recession that other companies anticipate with dread, Nvidia approaches with hope. The Bottom Line for Nvidia StockNvidia's 0.39% dividend yield is not the reason you buy the stock. Income investors should look elsewhere.Nvidia's short-term growth prospects are also poor. It brought in $2.22 billion during the first quarter of its 2020 fiscal year. It's expected to bring in just $2.55 billion this quarter, which will be reported August 15. At its current pace, it will be tough to match last year's $11.7 billion.You buy Nvidia with your eyes on the horizon -- three years, five years, 10 years out. CEO Jensen Huang is 56. He should be around for the next decade.He's a name worth betting on.Dana Blankenhorn is a financial and technology journalist. He is the author of a new environmental story, Bridget O'Flynn and the Bear, available now 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 AMZN and MSFT. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 A-Rated Stocks to Buy for the Rest of 2019 * 7 Education Stocks to Buy for the Future of Academia * 5 Stocks to Buy as You Rebalance Your Portfolio The post Nvidia Stock: Itas Not All in the Game appeared first on InvestorPlace.
Nvidia (NASDAQ:NVDA) stock has performed very well since the beginning of June, and as the chart below shows, shares of NVDA are up nearly 12% since then.Compare the gain in Nvidia's share price to the VanEck Vectors Semiconductor ETF (NYSEARCA:SMH), which is up just 6.8%. But considering this quick run-up in Nvidia's stock, it would be wise to wait for a pullback before jumping in for the long haul. Bad News Is Priced In Click to Enlarge Source: Yahoo Finance Much of the bad news for Nvidia has already been priced in by the market. During their most recent earnings report on May 16, Nvidia's management did not give an outlook for the remainder of the year.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, they warned about continued softness in Nvidia's datacenter segment and issues with a CPU shortage in the gaming segment.When those issues are combined with the well-known issue of continued revenue declines from cryptocurrency miners, it appears any bad news is already known by the market."The data center spending pause around the world will likely persist in the second quarter and visibility remains low," said Colette Kress, EVP & CFO on NVDA's Q1 2019 earnings call. "In gaming, the CPU shortage while improving will affect the initial round of our laptop business." Pending Acquisition of Mellanox TechnologiesOne of the potential catalysts for Nvidia to drive growth is the pending acquisition of Mellanox Technologies (NASDAQ:MLNX), which is expected to close by the end of the year. The deal is important for Nvidia, because it provides growth at a time when growth has been lagging.During the Q1 earnings press release, the company noted that the deal would be immediately accretive upon closing. The one wildcard for this deal being finalized is the fact that it needs approval from China.Therefore, if there are continued trade tensions with China, the completion of the deal could be delayed or rejected. That is something investors should consider in their decision making process.From Nvidia's earnings press release:"Once complete, the combination is expected to be immediately accretive to Nvidia's non-GAAP gross margin, non-GAAP earnings per share, and free cash flow. The transaction is expected to close by the end of the calendar year." Appealing Long-Term Technical OutlookMany investors will look at technical analysis as part of their decision process when determining to buy a stock, however many investors usually focus on short-term timeframes. When looking at short-term timeframes, shares of Nvidia are overbought, which is why some caution should be exercised.For stocks that I am considering holding for an extended period of time, I like to look at the long-term technical outlook, which means looking at a weekly or monthly chart versus the standard daily charts that many investors look at. Click to Enlarge Source: TradingView The adjacent chart paints a bullish picture for the technical outlook for Nvidia. The RSI on the weekly chart is still below 50 and both lines of the MACD are still below zero. Given these data points, I expect shares of Nvidia will retest the $200 level sometime this year. Bottom Line on NVDAIn closing, I believe Nvidia is a quality company at the intersection of a number of important trends, ranging from the data center to autonomous driving. If the pending acquisition of Mellanox Technologies is approved, it will provide an additional avenue of growth in the future.Since the bad news is known by the market, and considering Nvidia's future growth prospects, it makes sense to be on the lookout for a quality opportunity to enter NVDA for the long-term.The time to enter is not at this moment in time, given the short-term overbought conditions that are present. Once the short-term overbought conditions subside, there should be an opportunity in the near future to be able to enter for the long-term.As of this writing, Brad Kenagy does not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks That Should Be Every Young Investor's First Choice * 5 IPO Stocks to Buy -- According to Wall Street Analysts * The Top 10 Best Sectors in the Market for 2019 The post 3 Reasons to Buy Nvidia Stock (Once It Pulls Back) appeared first on InvestorPlace.
[Editor's Note:Dividend information in this article was corrected on July 5, 2019.]The stock chart of Nvidia (NASDAQ:NVDA) over the last year has been nothing if not scary.Source: Shutterstock As recently as last September,Nvidia stock price was over $280. After the tech wreck, a long, grinding slog brought NVDA back to $190. After another fall in May (thanks to President Trump), Nvidia stock price has declined to $162.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWith a market cap of $99 billion, Nvidia is back to trading at 30 times its earnings and about nine times its revenue, and analysts are starting to once more pound the table for it.Wedbush analyst Matthew Bryson is among the bulls on NVDA. He recently put an "outperform" rating on Nvidia stock, praising its pending $6.9 billion acquisition of Mellanox (NASDAQ:MLNX).So, is it time to buy NVDA? Why NVDA's Outlook Is PositiveAny long-term analysis of technology trends indicates that Nvidia's best days are ahead of it. * 10 Stocks That Should Be Every Young Investor's First Choice Gaming keeps growing, and Nvidia remains the leader of the gaming-chip sector. NVDA is still at the heart of autonomous driving and advanced robotics. Nvidia was able to build an artificial-intelligence supercomputer in just three weeks, mainly using its own resources.Nvidia does face new competition in AI, but those competitors are operating in niches. Its growing software ecosystem gives it a complete machine-learning offering that competitors can't match. Its future in the cloud seems secure.That lead should expand as NVDA begins supporting Softbank's (OTCMKTS:SFTBY) ARM architecture, which competes directly with Intel (NASDAQ:INTC), in high-performance computing. Right now 22 of 39 analysts following Nvidia stock say that investors should buy it.As a result of these trends, many people have started calling NVDA a "no-brainer" investment again. The technical indicators of Nvidia stock going into earnings, due to be reported on Aug. 15, are positive. NVDA has beaten analysts' average earnings estimates for the last two quarters.If the chip slump really is ending, Nvidia looks very well-positioned. Analysts are bullish on NVDA because they expect the growth of the chip sector to resume. The Bear Case on Nvidia StockThere are still those who are bearish on NVDA because they fear that the chip slump could return or that Nvidia's competitors could reduce its dominance.That is good. It creates a "wall of worry" that acts as friction to a rising stock price. It's better, in a way, than having analysts compete to see who can praise the stock more.Some analysts believe that a cyclical recovery is already priced into Nvidia stock. Others worry that its continuing dependence on China, from which it derives 44% of its revenues, leave it one tweet away from disaster. Finally, guidance from Nvidia's management has been cautious.The bears' beliefs appear to be based on short-term thinking. For young investors with money to put to work, whether the slump ends this quarter or next isn't nearly as important as how long a recovery might last and where its peak might be. Trading may be based on tweets, but investing should be based on fundamentals. The Bottom Line on Nvidia StockAs I have written before, not every stock is right for every investor.NVDA is the kind of stock you should buy if you look good in a leather jacket. Its dividend yield is around 0.4%. The revolution it's enabling lies ahead. The chip industry remains subject to booms and busts. If you might need your money tomorrow, or you need income from your investments, NVDA is not the stock for you.Younger investors seeking long-term capital gains, however, should buy NVDA stock now.Dana Blankenhorn is a financial and technology journalist. He is the author of the mystery thriller, The Reluctant Detective Finds Her Family, available at the Amazon Kindle store. Write him at firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. As of this writing he owned no shares in companies mentioned in this article. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks That Should Be Every Young Investor's First Choice * 5 IPO Stocks to Buy -- According to Wall Street Analysts * The Top 10 Best Sectors in the Market for 2019 The post Is It Time to Buy Nvidia Stock? appeared first on InvestorPlace.
Needless to say, the Trump Administration's decision not to slap additional tariffs on Chinese imports and to let Huawei's U.S. suppliers resume some of their sales to the Chinese tech giant is a positive for chip stocks. rise about 2%, isn't merely a positive for the group simply because it could let Huawei's many U.S. suppliers resume selling chips for Huawei products that aren't considered national security risks, or even because it also lowers the odds of new trade restrictions that could hurt their sales to other clients. It's also welcome news because it raises the likelihood that Beijing won't try to block major chip M&A transactions involving U.S. suitors.
In this morning's Market Recon, I discussed taking profits on short-term trades, and why I felt that is part of one's discipline. Now, assuming that enough of you are either long Nvidia, or at least have an interest in the name, let's take a look under the hood and make a more determined decision here. Traders will recall that Wedbush analyst Matthew Bryson initiated coverage of both AMD and NVDA on Thursday at "Outperform" (I am long both).
RAWABI, West Bank/TEL AVIV (Reuters) - Palestinian engineers working for Israeli chip designer Mellanox Technologies are poised to share a $3.5 million payout when the company's takeover by U.S. chip supplier Nvidia Corp is completed. Mellanox is one of a handful of Israeli firms that have begun to collaborate with the emerging Palestinian tech scene, bypassing the political conflict to tap a growing pool of engineers at costs they say are comparable to hiring from engineering expertise in India or Ukraine. The chip maker offered stock options to more than 100 Palestinian engineers in the occupied West Bank and Gaza Strip when it hired them as contractors, even though they are not permanent staff, as a shortage of engineers in Israel makes their skills highly sought after by multinationals.
Mellanox Technologies Ltd NASDAQ/NGS:MLNXView full report here! Summary * ETFs holding this stock have seen outflows over the last one-month * Bearish sentiment is low * Economic output in this company's sector is contracting Bearish sentimentShort interest | PositiveShort interest is extremely low for MLNX with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting MLNX. Money flowETF/Index ownership | NegativeETF activity is negative. Over the last one-month, outflows of investor capital in ETFs holding MLNX totaled $96 million. Additionally, the rate of outflows appears to be accelerating. Economic sentimentPMI by IHS Markit | NegativeAccording to the latest IHS Markit Purchasing Managersâ€™ Index (PMI) data, output in the Industrialsis falling. The rate of decline is very significant relative to the trend shown over the past year, and is accelerating. The rate of contraction may ease in the coming months, however. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to email@example.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
The market has been volatile in the last 6 months as the Federal Reserve continued its rate hikes and then abruptly reversed its stance and uncertainty looms over trade negotiations with China. Small cap stocks have been hit hard as a result, as the Russell 2000 ETF (IWM) has underperformed the larger S&P 500 ETF […]