|Bid||166.87 x 1000|
|Ask||166.92 x 1000|
|Day's Range||166.15 - 169.10|
|52 Week Range||124.46 - 292.76|
|Beta (3Y Monthly)||2.52|
|PE Ratio (TTM)||31.49|
|Earnings Date||Aug 15, 2019|
|Forward Dividend & Yield||0.64 (0.38%)|
|1y Target Est||181.83|
This weekend's Barron's presents the 2019 Midyear Roundtable commentary and stock picks. Specific roundtable picks include a leading dollar store operator and the inventor of graphics processing units. ...
The AMD vs. NVIDIA midrange GPU battle is heating up, Microsoft went back to the '80s and Nintendo introduced a Switch Lite. Oh, and some Amazon workers will strike on Prime Day. In a paper published in the journal of Scientific Advances, scientists from the University of Glasglow shared the first known image of a Bell entanglement.
Todd Ahlsten, a Barron’s Roundtable panelist and lead portfolio manager of the Parnassus Core Equity fund at Parnassus Investments, sees a rally coming for beaten-up chip stock Nvidia
Piper Jaffray analyst Harsh Kumar predicts demand will improve as more games support the “ray tracing” technology of Nvidia’s graphics cards.
For once, AMD made NVIDIA sweat. NVIDIA's new RTX Super graphics cards are clearly a response to AMD's new midrange GPUs, the Radeon RX 5700 and 5700 XT . For months, AMD has been hyping how much faster they are than the first RTX cards. The only solution for NVIDIA was a surprise batch of faster cards, which, in turn, led to AMD announcing a price drop at the last minute. Witness the capitalist ideal of competition in action.
Today, China released its trade data for June. China’s dollar-denominated exports fell 1.3%, while its imports in US dollar terms fell 7.3% last month.
Not long ago, NVIDIA (NASDAQ:NVDA) seemed to be invincible. By leveraging its GPU (Graphics Processing Unit) franchise, the company penetrated lucrative markets in categories like data center and AI (Artificial Intelligence). The result is that Nvidia stock has been a big winner for investors. For the past three years, the average annual return was a sizzling 53.82%!Source: Shutterstock But lately things have gotten tougher. The fact is that the Nvidia stock price is feeling the pressure of competition. The irony is that it is not from well-funded startups that have disruptive technologies. Rather, one of the scariest rivals is Advanced Micro Devices (NASDAQ:AMD). The company's CEO, Lisa Su, has pulled off a near miraculous turnaround. And the key has been an obsession on innovation.In fact, AMD is starting to take the lead on NVDA, which is certainly amazing. Keep in mind that NVDA has huge global scale and enormous resources, with a market cap of $95 billion. By comparison, ADM's market cap is about $36 billion.InvestorPlace - Stock Market News, Stock Advice & Trading TipsA stark illustration of the fight among these two semiconductor companies: AMD's Navi-based RX 5700 and RX 5700 XT chips. These are focused on the large PC gaming market and, for the most part, it looks like AMD has the performance lead (this is based on analysis from Tom's Hardware). There have also been notable improvements in power efficiency. * 7 Stocks to Buy for Monster Growth in the Second Half of 2019 Oh, and something else: Advanced Micro Devices has made things even more difficult for NVDA stock by reducing the pricing on the chips. That is, there is negligible difference. In other words, why wouldn't customers opt for the AMD chips?I don't see why not.Now this is not a one-off. Keep in mind that the Ryzen 3000 chips have also shown to be worthy alternatives to NVDA's offerings.Granted, all this does not spell the doom of the company. Again, NVDA is diversified and still has a powerful R&D infrastructure. The competition should actually provide a spur to boost the innovation, which should help with the long-term.Despite this, there are still other nagging issues with NVDA stock besides the competition with AMD: * Even though the company remains dominant with AI chips, this segment is likely to see more and more headwinds. Note that tech giants like Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG), Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN) are building their own chips. * While the G20 summit had good news on the trade front -- with a truce between the US and China as well as a lessening of restrictions on Huawei -- there are still risks. President Trump can be mercurial. China also is experiencing slower growth, which could weigh on NVDA. * The latest quarterly report did beat expectations, but the results were still unnerving. Revenues plunged 31% to $2.22 billion on a year-over-year basis, as there was widespread weakness across gaming and the data center. Bottom Line On NVDA StockIt's true that NVDA is trading at a reasonable valuation, with a forward price-to-earnings multiple of 22. The company also should get a boost from its acquisition of Mellanox Technologies (NASDAQ:MLNX), which is a leader in technologies for high-speed networks. And, yes, when it comes to the AI market, the opportunity is enormous for NVDA stock. Keep in mind that GPUs are ideal for this type of technology, allowing for super-fast performance at low cost. * 10 Stocks to Sell for an Economic Slowdown But in the near-term, there is likely to be turbulence, especially as AMD gains ground and the company takes steps to stabilize the revenue base.So, for now, it's probably best to hold off on the stock.Tom Taulli is the author of the upcoming book, Artificial Intelligence Basics: A Non-Technical Introduction. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell for an Economic Slowdown * 7 Marijuana Penny Stocks That I May Buy * 7 of The Best Schwab ETFs for Low Fees The post Nvidia (NVDA) Stock Has An AMD Problem appeared first on InvestorPlace.
Apple (AAPL) stock still rests 13% below its 52-week high despite its roughly 30% climb in 2019 amid trade war worries and a slowdown in iPhone sales. Now, let's peek ahead to see what investors should expect from Apple's third-quarter fiscal 2019 financial results.
Nvidia (NASDAQ:NVDA) stock is showing small signs of progress. NVDA stock has been a falling knife over the past six months. But now, the stock, while not recovering tremendously, has at least stopped going down for the time being. Is Nvidia stock's seemingly endless plunge finally over?Source: Shutterstock The answer likely comes down to the following question: Will NVDA stock catch up to the stock market, or continue to trade on its own merit? The stock market is obviously booming, with the major averages making new all-time highs. Tech stocks in particular have been on fire. Meanwhile, Nvidia stock has been going up a little with the market, but then slipping back quickly. For example, last week, NVDA hit $166, but then slipped back to $160, even as the market continued to surge. * 10 Stocks to Sell for an Economic Slowdown That's because NVDA faces a ton of company-specific and sector-specific problems. These range from excessive inventory to the product issues facing Intel (NASDAQ:INTC), and the trade war.InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Semiconductor Industry Is Caught in the CrossfireThe trade war is dragging on and on. That's awful news for leading semiconductor companies such as NVDA. According to Nvidia's most recent annual report, fully 74% of the company's revenues came from Asia during its last full fiscal year. The company generated $3.4 billion of revenue from Taiwan alone last year. It got $2.8 billion from mainland China and Hong Kong, and another $2.4 billion from the rest of Asia.NVDA got just $1.5 billion of revenue from the U.S., equaling barely 10% of its overall revenues. Amazingly, the small island of Taiwan buys more than twice as much from Nvidia as all of the United States does. Needless to say, the longer the trade war goes on, the more NVDA stock and its peers will suffer negative consequences.There's been some upbeat chatter about a potential resolution to the U.S.-China trade issues. Reportedly Trump and the Chinese delegation did a lot of talking ahead of the recent G-20 meeting. And there was an agreement of sorts related to Huawei, but it appears to be more of a temporary ceasefire than a solution. Until we get something concrete, Nvidia and the rest of the semiconductor industry will likely struggle. Rivals Feeling the HeatGlobal electronics giant Samsung exemplified the trade war issues with its earnings pre-release last Thursday. Samsung makes both semiconductor chips, competing with the likes of Micron (NASDAQ:MU) in memory. while also making plenty of end products such as phones and TVs.In any case, Samsung announced that it sees its operating profits for this quarter falling by more than 50%. Samsung blamed the decline on a combination of the trade war, weak memory prices, and soft demand from other customers. Reportedly, for example, the demand for Apple's (NASDAQ:AAPL) iPhone was so sluggish that Apple will have to pay Samsung some sort of compensation for not meeting minimum order levels.When giants like Apple and Samsung are failing to meet investors' expectations, it's clear that there's a broad slowdown in consumer electronics. As great as Nvidia's technology is, NVDA can't prosper in a world in which the whole consumer electronics sector is in a slump. If Apple, Samsung etc. continue to struggle, NVDA stock isn't going anywhere, either. Why Nvidia Stock Price Can ReboundNvidia hasn't given a whole lot of details about its outlook for the rest of the year. Starting with its last quarterly earnings report, NVDA stopped providing full-year guidance. That's often a sign of trouble ahead. That said, if you're looking for a bullish case on Nvidia stock, you can patch one together.For one thing, its inventory levels have declined in some areas, particularly in graphics. It appears the overbuilding of graphics cards has ended. And while bitcoin's surge won't set off another mining boom like it did in 2017, it will probably help increase demand to a certain extent. People still use GPUs to mine cryptocurrency after all.Overall, Nvidia's revenues will probably start to flatten out by the end of the year. If nothing else, at least the jarring double-digit-percentage revenue declines across all of its business segments will come to an end. If and when the trade war ends, Nvidia should finally be able to get back to revenue growth. As is often the case for tech companies, once NVDA's revenue bottoms, Nvidia stock price should start shooting back up again. The Verdict on NVDA StockIf Nvidia stock price was trading at fire-sale levels, there'd be a case for buying NVDA at this point. The company has fantastic technology and will surely bounce back sooner or later.But Nvidia stock is still aggressively valued after its seemingly huge decline. Nvidia is now selling at 31 times its trailing earnings. If you believe analysts' average estimates, its earnings will shoot up to $7 per share over the next year, pushing the P/E ratio to a more reasonable - though hardly cheap - 23\. With its revenues still declining, however, it's hard to see how this earnings explosion is going to occur.Ultimately the trade war will get sorted out, and Nvidia will get its momentum back. But there's no reason that such a development will necessarily happen in 2019. Nvidia stock price is far from cheap at this valuation. It may go up a little if the stock market keeps roaring higher. But until Nvisia's business gets its momentum back, the stock will continue to underperform the market as a whole.At the time of this writing, Ian Bezek owned INTC stock. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell for an Economic Slowdown * 7 Marijuana Penny Stocks That I May Buy * 7 of The Best Schwab ETFs for Low Fees The post Nvidia Stock May Be Bottoming, But Don't Expect a Recovery in 2019 appeared first on InvestorPlace.
The latest competitive threats to the once unstoppable Nvidia (NASDAQ:NVDA) have challenged some investors this week. But with varied strong positioning and catalysts up its own sleeve, bullish investors shouldn't give up on the end game in NVDA stock yet. Let me explain.Source: Shutterstock As most any investor with a passing interest in the stock market knows, not too long ago NVDA was a growth superstar off and on the price chart that could do no wrong. The sky was seemingly the limit for Nvidia. Unsurprisingly, a couple years of the overly-bullish narrative, those cocksure days ended abruptly in late 2018.The latest challenge to NVDA resurrecting its former glory comes from Advanced Micro Devices (NASDAQ:AMD). As InvestorPlace's Brad Moon recently discussed, AMD's roll-out this past week of its new Ryzen 3000 processors and Navi-based Radeon 5700 graphics cards and what the company calls the "Ultimate PC Gaming Platform" is living up to that boast in the early innings.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut as Nvidia investors also know, but maybe need a reminder of, NVDA isn't a one-trick pony. And the big picture for this tech powerhouse remains very promising despite challenges from the likes of AMD or more ubiquitous geopolitical challenges such as today's trade war with China.Bottom line, Nvidia has a strong presence in markets ranging from autonomous and driverless vehicles, to data centers, artificial intelligence, a re-emerging cryptocurrency market and yes, even still the gaming industry. What's more, on the price chart the bottom line for NVDA's big picture looks equally promising in more than one way for bullish investors. NVDA Stock Monthly Chart Click to EnlargeTechnically speaking, the 'end game' or big picture amounts to appreciating NVDA's constructive, not destructive monthly chart since last October. Bottom line, all stocks, in particular companies with once-glowing growth expectations, have large price corrections at one time or another.From Amazon (NASDAQ:AMZN) to Microsoft (NASDAQ:MSFT), corrections are an investing commonality which no company is immune. Of course, each incident will have its own unique reasons for this once unthinkable inevitability occurring and an in-tow bearish narrative getting the best of investors. Such is the case in Nvidia stock.The good news for NVDA investors is what's done, is likely done as far as the correction is concerned. Despite overall sentiment remaining bearish to cautiously optimistic at best, the price chart has established a confirmed lower-high double bottom backed by a key test of long-term Fibonacci supports. Positioning in NVDA StockFrom where I sit, investors have two ways to play NVDA. One method is to put shares on the radar for buying above the market if a higher high pivot is formed to confirm a monthly uptrend. Set your trade alert for the April high of $193.25. Investors can then decide whether to buy momentum or wait for the next meaningful pullback to establish a long position in Nvidia.The second strategy simply purchases NVDA today. With shares near the confirmation price of the bottoming candle's high of $165.37, buying the stock right now is a reasonable venture. For managing risk I'd suggest an initial stop 10% below the purchase price. * 10 Stocks to Sell for an Economic Slowdown In a volatile stock like NVDA this exit strategy contains risk as reasonably as can be expected. It also serves the purpose of technically exiting the position if shares fall deep enough into June's monthly range. In our technical opinion, that kind of price action would strongly suggest NVDA stock still has a long road ahead of itself, before possibly securing its place among other legendary investments.Disclosure: Investment accounts under Christopher Tyler's management currently own positions in Advanced Micro Devices (AMD) and its derivatives, but no other securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell for an Economic Slowdown * 7 Marijuana Penny Stocks That I May Buy * 7 of The Best Schwab ETFs for Low Fees The post 2 Ways to Buy Nvidia Stock on Competition Worries appeared first on InvestorPlace.
After several years of major market outperformance, semiconductor giant NVIDIA Corporation (NASDAQ: NVDA) has traded mostly in-line with the market so far in 2019. Nvidia’s inference technology coupled with artificial intelligence spending by cloud providers will create a perfect storm of demand for the chipmaker, Ross said in a Thursday upgrade note. Unfortunately, hese trends will likely not have a significant impact on Nvidia’s revenue numbers until the fourth quarter of 2019, Ross said — but added that investors can expect better visibility and positive commentary from management in the next two quarters.
Among investment categories, the semiconductor group finds itself in an awkward situation. And within this sub-segment, traders are attempting to decipher Micron Technology (NASDAQ:MU). On one hand, MU stock has performed well following the truce in U.S.-China trade war tensions. On the other hand, the company faces fundamental challenges that could hurt its equity value.Source: Shutterstock Of course, the biggest hurdle impacting Micron stock is the computer chip market; specifically, pricing for flash-memory NAND chips and so-called "volatile" DRAM chips. Currently, the semiconductor market is experiencing a lull. For instance, DRAM chips - which largely service PCs and data servers - plummeted nearly 30% in the first quarter of 2019.Obviously, that does no good for the MU stock price. After all, Micron specializes in producing both NAND and DRAM chips.InvestorPlace - Stock Market News, Stock Advice & Trading TipsEven worse, many experienced analysts in the semiconductor space believe that the DRAM market is still vulnerable to further corrections. That puts investments like Micron stock, as well as broader competitors like Intel (NASDAQ:INTC) and Nvidia (NASDAQ:NVDA) on notice.Here's the problem: NAND is a type of memory that is particularly useful for smartphones and mobile devices. But a time when even Apple's (NASDAQ:AAPL) once-dominant iPhone is experiencing lagging sales, NAND presents less of an opportunity. Thus, semiconductor firms' hopes rested on DRAM, and for good reason. * 10 Stocks to Sell for an Economic Slowdown Based on DRAM's unique architecture -- a densely structured chip that allows for billions of memory cells crammed into a small space -- it's best suited for data servers. Due to the burgeoning data center evolution, Micron can feed this growing demand. That benefits MU stock, provided that demand sustains itself.Evidence suggests that it's not, drawing questions for Micron stock. Complicated Narrative Surrounds MU StockBefore we dive in, you should know this: semiconductor firms ebb and flow with the underlying chip market. And whether for better or for worse, the chip market is incredibly volatile. Moreover, research firm Gartner (NYSE:IT) predicted two years ago that 2019 would be a downturn for DRAM.So far, that prediction has proven prescient. Naturally, it presents a worrying case for MU stock.Now, some investors have a tendency to ignore such high-level analysis as not being in touch with the ground floor. However, if you're thinking about buying Micron stock, you should at least understand the risk: historically, MU's pricing is intricately linked to the memory-chip market. Click to EnlargeFor instance, from January 2017 through the end of January 2018, DRAM's price-per-gigabit increased from 66 cents to 97 cents. Along the way, the pricing experienced some twists and turns.Over the same period, the MU stock price increased from $24.11 to $43.72. Like the underlying DRAM market, Micron did not have a straight shot skyward. Shares moved almost in lock-step with DRAM prices, with a correlation coefficient of 84%.I note a similar trend comparing Micron stock with total DRAM and NAND global revenues. As chip sales increase, so too does MU shares. Unsurprisingly, when chip sales stall, shareholders are taken on an unpleasant ride. Click to EnlargeAdmittedly, I'm charting the obvious. However, this data also confirms that MU stock rarely moves against the grain. So if DRAM is about to tumble deeper, it might be time to hit the exits.But that's only true if the forecasts of doom are valid. From the numbers I'm seeing, data centers have strong tailwinds. For instance, demand for cooling equipment necessary to keep data-server chipboards at optimal temperatures is increasing. That doesn't make sense unless data centers are likewise rising. Long-Term Picture Remains Bullish for Micron StockLogically, if the tides shift positively for DRAM, MU stock stands to profit handsomely. Especially at these undervalued prices, contrarians may want to consider picking up some shares.That said, it's always difficult predicting nearer-term swings. Sentiment could turn negative on absolutely silly reasons. And that could end up making me look silly as well.But where I'm more confident is the longer-term picture. In this context, I think President Donald Trump's trade war with China is the perfect tailwind, and not a dark cloud. I say this because for years, perhaps decades, American tech firms have not operated on level ground with the Chinese.Generally, Americans played by the rules. The Chinese have not. This strange, uncontested dynamic allowed the Asian juggernaut to harmfully troll the tech space.But the Trump administration is putting a hard-stop on China's shady business practices. And while the trade war hurts now, it's incredibly beneficial for our semiconductor industry's long-term, sustained growth. Bring in the DRAM factor and you have a case here for a deeply profitable discount in Micron stock.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 * 10 Stocks to Buy on College Students' Radars * 7 Retail Stocks to Buy for the Second Half of 2019 * The S&P 500's 5 Best Highest-Yielding Dividend Stocks The post Donat Let Industry Noise Deter You From MU Stock appeared first on InvestorPlace.
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In 2018, Advanced Micro Devices (NASDAQ:AMD) was the S&P 500's top performing stock, rising nearly 80% as the small but rapidly growing chipmaker continued to gain share on its far larger (and far more valuable) peers, Intel (NASDAQ:INTC) and Nvidia (NASDAQ:NVDA). AMD has continued to gain share in 2019, and AMD stock has continued to rally.Source: Shutterstock Year-to-date, AMD is the S&P 500's second best performing stock, up another near 80% through early July.In other words, AMD stock has been a really good long term investment. In 2018, it was the top stock in the S&P 500. In 2019, it's been the second best stock in the index. That sort of continued out-performance is rare.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWill it continue? How much longer can AMD stock stay red hot for? * 10 Best ETFs for 2019: The Race for 1 Intensifies A Closer Look at AMDThe reality is that, while an 80% gain over six months is not repeatable, AMD stock will stay on a healthy longer term uptrend so long as three things remain true:* The market share expansion narrative remains alive and well.* Macroeconomic and market conditions remain healthy.* The valuation on AMD stock remains reasonable.Right now, AMD checks off all three of those boxes. As such, the stock projects to stay on an uptrend for the foreseeable future. AMD Has Formed a Nice UptrendSince early 2018, AMD stock has formed a healthy and steady uptrend as the company's core growth narrative has gained credibility and traction.That core growth narrative is pretty easy to understand. AMD is the David of both the computer processing unit (CPU) and graphics processing unit (GPU) worlds. This David is fighting two Goliaths - Intel in the CPU world, and Nvidia in the GPU world.For a long time, Intel and Nvidia were kicking AMD's butt. But, AMD has punched back over the past several quarters with faster innovation, a promising product line-up, and aggressive expansion into new markets.The result? AMD has won share from both Intel and Nvidia, and this share expansion has powered robust revenue growth, margin expansion, and profit growth. Click to EnlargeAs this market share expansion narrative has gained momentum over the past several quarters, AMD stock has formed a healthy and steady uptrend. See the attached chart.The stock has been very volatile. It has both spiked way above its multi-quarter trend-line, as well as dropped way below it. But, every time, it returns to that trend-line, which has a healthy upward slope.That's a promising sign for investors. It means that while there's a lot of noise in AMD stock, the core growth narrative remains healthy and the core uptrend in AMD stock remains equally healthy. The Uptrend Should Persist, with Some FrictionThis uptrend in AMD stock should persist for the foreseeable future.There are three things at play here. First, you have the aforementioned core market share expansion narrative. AMD needs that narrative to stay alive and well in order for the stock to preserve its uptrend. Fortunately, recent developments imply this is the case.The company reported strong first-quarter numbers (on the heels of bad first quarter numbers from Intel), announced an impressive 7nm product road map which analysts say lays the groundwork for further market-share expansion, won a graphics licensing deal with Samsung, and has scored multiple cloud gaming deals. Thus, AMD should continue to win market share over the next several quarters.Second, the market and economic backdrop need to remain healthy in order for AMD stock to stay on an uptrend. The outlook on that front is similarly favorable. Global economic conditions are improving, thanks to continued labor market strength, cooling U.S.-China trade tensions, and persistently low rates.At the same time, low rates also create favorable market conditions, since they help inflate equity valuations. As such, the market and economic backdrops project to remain healthy.Third, the valuation on AMD stock can't get too far ahead of itself. Right now, it isn't. My 2019 target on this stock has long been $30. But, in a bull case scenario, a $35 price target by the end of 2019 is supported, assuming the company can do somewhere around $2.75 in EPS by fiscal 2025 (which is within reason and entirely doable).Broadly, then, AMD checks off all the boxes it needs to in order for the stock to stay on its healthy uptrend. The implication? AMD stock should stay in rally mode, with some friction as valuation becomes more worrisome the higher the stock goes. Bottom Line on AMD StockAMD stock has been one of the market's hottest stocks for the past 18 months. It won't stay this hot forever.Valuation will ultimately limit AMD stock from rallying another 80% over the next six months. But, the stock should remain on an uptrend so long as the company continues to expand market share, the economic and market backdrops remain healthy, and the valuation remains reasonable.Right now, all three of those things are true. Thus, for the foreseeable future, AMD stock should stay on an uptrend.As of this writing, Luke Lango was long INTC and NVDA. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell for an Economic Slowdown * 7 Marijuana Penny Stocks That I May Buy * 7 of The Best Schwab ETFs for Low Fees The post AMD Stock May Begin to Cool, but It Will Keep on Climbing appeared first on InvestorPlace.
Price action and evolving tech needs have long left investors wondering what to do about Intel (NASDAQ:INTC). Since early June, Intel stock has moved higher by about 10%.Source: Shutterstock However, INTC stock has remained range-bound for almost two years. Changing technology has arguably made Nvidia (NASDAQ:NVDA) a more critical chip company than Intel. Also, AMD (NASDAQ:AMD), who consistently lagged Intel during the PC era, has taken a technical lead in many respects.Still, despite this stagnation, its long-term outlook may improve dramatically. While I expect little near-term growth in Intel stock, a technological shift could send INTC much higher over the next few years.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Best ETFs for 2019: The Race for 1 Intensifies A Closer Look at Intel StockThe price-to-earnings (PE) ratio serves as an important indicator in the semi industry. In its heyday during the PC era, Intel commanded PE ratios in the 30s and 40s. Instead, competitors such as AMD and Nvidia now command comparable multiples.Today, with Intel falling behind peers, it currently trades at a multiple of about 10.8. Investors should note that both Nvidia and AMD fell to similar PE ratios a few years ago when their prospects dimmed.From this industry pattern of multiple expansion and contraction, we can surmise that Intel stock is a buy, eventually. This despite a pattern of range-bound trading going back to 2017. The Intel stock price now stands at just under $48 per share.Does that mean that the comeback in Intel stock will begin soon? Not so fast. Those who buy now merely because of the low PE ratio will likely see their patience tested. As our own Laura Hoy stated, Intel likely faces a "bumpy road" ahead.Right now, recent headlines bode poorly for Intel. Read about Intel's technology, and you will hear about slowing data center sales and AMD's faster processors.To my colleague Will Ashworth's point, you may also hear about Microsoft (NASDAQ:MSFT) possibly sourcing processors from AMD or Qualcomm (NASDAQ:QCOM) instead of Intel for the Microsoft Surface. What INTC needsLike its peers in recent years, Intel stock needs a catalyst to inspire buying. For Nvidia, it meant applying its graphics processing units (GPU) to artificial intelligence (AI), virtual reality (VR), and self-driving cars. Likewise, AMD built its comeback on becoming the other GPU company and taking a technical lead on Intel.Seeing comparable action in Intel stock may amount to waiting on two technologies to see widespread adoption, 5G and self-driving cars. As I stated in my previous article, Project Athena will bring the next-generation, 5G compatible products to the market.Moreover, Mobileye has begun testing self-driving taxis. It also signed a contract to bring its technology to 8 million vehicles earlier in the year.Once these innovations hit the market, I think that can drive the long-awaited move into Intel stock. If investors begin to believe in Intel again, I think the PE ratio (now at about 10.8) will reach levels comparable to the ones currently seen in both AMD and Nvidia.NVDA now trades at just under 30 times earnings. Hence, simply taking INTC stock to a comparable valuation would roughly triple the value of INTC. The Bottom Line on Intel stockIntel stock may struggle for some time to come, but a change in technology could send it much higher long term. INTC stock has risen over the last few weeks. However, slowing data center sales and losing its technical lead over AMD could hurt INTC in the coming months.Intel has developed products for both 5G and autonomous vehicles. Hence, after a technological shift occurs, the outlook may become much brighter. Investors will need to wait for both to see more widespread adoption to see if this theory plays out.Still, a return to prominence for Intel would unlock tremendous value. Intel stock currently supports a market cap of about $211 billion. A PE ratio of 30 takes that to about $600 billion.A multiple of 50 would bring the market cap to the $1 trillion mark. Although I do not predict such a valuation, this also shows that Intel is closer than many think to again becoming a top company in tech. With a little patience, investors can benefit tremendously from such a move.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 * 10 Stocks to Sell for an Economic Slowdown * 7 Marijuana Penny Stocks That I May Buy * 7 of The Best Schwab ETFs for Low Fees The post Intel Stock Needs This One Thing to Return to Prominence appeared first on InvestorPlace.
In recent months, the “Tech Cold War” has reared its head, but Apple doesn’t seem ready to throw in the towel in the Chinese market.
Since rallying to above the $170 level at the start of July, Nvidia Corporation (NASDAQ: NVDA) stock quickly retreated, trading recently around $160. Investors are getting nervous about NVDA despite its preemptive launch of its RTX Super Graphics Processing Units (GPUs). Even though Nvidia is stealing the headlines ahead of Advanced Micro Devices' (NASDAQ: AMD) Navi release, NVDA could lower its outlook for the second half of 2019.Source: Shutterstock Analysts have an average earnings per share estimate of 88 cents for NVDA's quarter that ended last month. And ahead of Nvidia's quarterly earnings that will be reported sometime in August, some owners of Nvidia stock are taking profits. * 7 Retail Stocks to Buy for the Second Half of 2019 On the chart, Nvidia stock appears to be weak. Though Nvidia stock price tested and bounced off its $130 low three times this year, it failed to break above its 200-day simple moving average. At 22 times average forward earnings estimates, Nvidia stock is relatively expensive compared to other chip names.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIntel Corporation (NASDAQ: INTC) trades at 11.7 times its forward earnings. Micron Technology, (NASDAQ: MU) trades at 15 times its forward earnings.Nvidia's RTX Super graphics card offers far more performance and value than NVDA's previous graphics cards. Gamers get performance gains over, for example, NVDA's GTX 1080, helped by a 33% increase in memory bandwidth. Expect NVDA's GPU sales to bounce back strongly, thanks to this product refresh. But the biggest acceleration of NVDA's sales growth may not happen until the holiday quarter.A short-term negative for Nvidia stock is that NVDA has no other new product announcements scheduled for this summer. As a result, Nvidia stock price is unlikely to bounce back to the $200 - $240 level just yet.Still, investors need to wait patiently for Nvidia to build its software platform. As enterprises embrace its Quadro line, Nvidia will focus on both the RTX and the next generation of image generation. Adoption for Ray Tracing, a type of image generation, will eventually pick up in both the gaming and the enterprise space. Nvidia's software platform will be needed to process the enhanced forms of image generation. The Mellanox AcquisitionMellanox doesn't overlap with Nvidia in terms of the work it does. And since each company provides a unique input to the data center, Nvidia has expanded its potential addressable market with the deal. As the combined firm develops new products, its opportunities for sales growth will improve. Adding Mellanox strengthens Nvidia's positioning in the enterprise server computing space. Gaming StrategyAlthough NVDA offers a number of high-end GPUs for serious PC gamers, its new GeForce NOW offering targets a different set of gamers. Streaming game play allows Nvidia to expand its market. It allows the company to offer game play to those who do not have dedicated machines for gaming. Still, Nvidia's streaming-game strategy is in the early innings. It needs to wait for telcos to upgrade their infrastructure. The Valuation of Nvidia StockAnalysts have a $183 price target on Nvidia stock. Using a 10-year DCF Growth Exit model, the stock's fair value is $181.62. Realistically, for the stock to appreciate by 16.5%, the company needs to grow its revenue from the gaming and OEM & IP markets. Though Nvidia still expects its data center revenue to lag, data center customers may order more chips from NVDA than expected, lifting its sales. Source: BusinessQuant The Bottom Line on Nvidia StockNvidia's latest GPU refresh has a good chance of boosting overall sales, but it will take some time for that to occur. The industry recently worked down its excess inventories. With game title refreshes ahead and NVDA's GPUs providing more power at lower prices, expect Nvidia's revenues to bounce back through the course of the year and into 2020.As of this writing, the author did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy on College Students' Radars * 7 Retail Stocks to Buy for the Second Half of 2019 * The S&P 500's 5 Best Highest-Yielding Dividend Stocks The post Nvidia Stock Has Multiple Upcoming Catalysts appeared first on InvestorPlace.
Five years in the making. That is essentially the time it has taken for the S&P 500 to hit a milestone mark at 3,000 for the first time in its history. The stock gauge first closed at 2,000 on Aug. 26, 2014, according to Dow Jones Market Data.
Is the economy slowing down, or isn't it? Ask ten investors, and you'll get at least three different answers. One thing is for sure though -- the crowd won't come to a consensus on the matter until it's too late to do anything about it.Savvy investors know that planning ahead is a battle half-won. Decide now which names are exceedingly vulnerable to a market-wide pullback, and you're less likely to freeze up when the time comes to do so.Some of the following names move in the same direction as the overall market on any given day. The ones that are the most overextended, however, often end up being the ones that take the biggest bite out of a portfolio's value if and when things get hairy.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Retail Stocks to Buy for the Second Half of 2019 To that end, here's a look at ten stocks to sell should things take a decided turn for the worst. Advanced Micro Devices (AMD)Source: Shutterstock It's been one of the market's favorite stocks, if not the favorite, since its turnaround started to take hold in 2016, and was confirmed in 2018. But, graphics processing unit (GPU) and chip maker Advanced Micro Devices (NASDAQ:AMD) is highly vulnerable to a headwind, which in turns makes AMD stock highly vulnerable to profit-taking should investors start to sweat.Underscoring that vulnerability is a budding price war with rival Nvidia (NASDAQ:NVDA) at the end of a palpable refresh cycle. Just days before their launch earlier this month, Advanced Micro Devices cut the suggested price of its 5700 line of GPUs, countering Nvidia's recently-launched "Super" RTX graphics cards. Both product launches follow a string of new releases since early 2018, which may have already satisfied a market hungry for new GPUs.An economic slowdown could also easily curtail spending plans for big data centers, which have been big growth drivers for AMD as well as Nvidia. EXACT Sciences (EXAS)Source: Shutterstock EXACT Sciences (NASDAQ:EXAS) is a biopharma firm, and as such, isn't necessarily prone to economic weakness. Consumers don't skimp on healthcare when an insurer is paying the bills, even though they may skimp on other things.Nevertheless, after an almost 1500% rally from 2016's lows, EXACT Sciences stock is uncomfortably prone to a sizable pullback should the environment turn to malaise and doubt. * 10 Best Stocks for 2019: A Volatile First Half Though its top and bottom line are making tremendous forward progress thanks to solid demand for its Cologuard colon cancer screening test, the stock's got a valuation problem. As impressive as Cologuard is, trading at nearly 30 times revenue, the stock's current price is difficult to justify. Roku (ROKU)It's not a sweeping, decisive victory, and certainly not permanent, but Roku (NASDAQ:ROKU) so far has won the streaming set-top box wars. Now it's leading the SmartTV race with what should be 70% of that nascent market by year's end, according to Strategy Analytics.The refocus from hardware to selling ad space on its platform is also proceeding nicely.The triple-digit rally since the IPO in late 2017, however -- as well as the triple-digit rally since the end of last year -- is too much too fast. Driven more by hype than progress toward profits, even a small mood change could put the investors into profit-taking mode. Cyberark Software (CYBR)Cyberark Software (NASDAQ:CYBR) is in the cybersecurity business. Its 'Privileged' platform offers a unique solution that rivals like FireEye (NASDAQ:FEYE) or Palo Alto Networks (NYSE:PANW) can imitate, but not quite replicate. It's the company's Privileged suite, in fact, that was responsible for much of this year's heroic move.Last quarter's top line was up 34%, more than doubling the bottom line.Click to Enlarge * 7 A-Rated Stocks to Buy for the Rest of 2019 Investors are already having second thoughts about the move though, with a string of lower highs since the end of May alone. We have yet to see consistent lower lows, but if the support offered by the 100-day moving average line (gray) fails to keep shares propped up, a sizable setback could easily take shape. Zillow Group (ZG)Source: Shutterstock Though the economy has managed to continue growing despite stumbling blocks like steep tariffs and more migration of some jobs overseas, the housing market has already started to cool. In some regards it has even started to retreat.In March, prices of homes in the go-go real estate market of Southern California fell for the first time in seven years. They have since recovered, but even so, it's a microcosm of a bigger trend. Should the broad economy sour even more, an already-vulnerable housing market could entirely reverse course.That puts self-service real estate listing company Zillow Group (NASDAQ:ZG) in jeopardy. Shares are rallying right now, but it easily becomes one of the top stocks to sell once things merely start to get rocky. Verisign (VRSN)Source: Shutterstock Verisign (NASDAQ:VRSN) has been one of the most reliable advancers since the beginning of 2017, shrugging off the Q4-2018 market-wide weakness with relative ease, and renewing its march to higher highs. It has more than doubled in two years.What's amazing about the move is that it has taken shape on oddly anemic fiscal growth. Last year's top line was up just a little more than 4%, and this year's expectation is for barely more than 1%. Earnings growth is only marginally better. * 7 Retail Stocks to Buy That Are Down in 2019 Investors may be patient and lenient in a bullish environment like the one we've been in thus far. If those investors have to switch to a defensive mindset though, Verisign is exposed. Not only will the demand for website registration services wane, it will be tough to not notice there's no defensible moat in the business. Floor & Decor Holdings (FND)Source: Shutterstock Floor & Decor Holdings (NYSE:FND) isn't a household name, unless your house is near one of the 103 warehouse-format locales the company operates.That's the crux of the risk. While a strong economy inspires consumers to invest in their home's floors, flooring could easily be one of the planned expenses that gets put on hold when those consumers start to feel uneasy. The company also lacks the scale and diverse product lines that rivals Home Depot (NYSE:HD) and Lowe's (NYSE:LOW) enjoy, which shield them from economic headwinds. Snap (SNAP)Credit has to be given where it's due. Though it got off to a rocky start as a publicly-traded company, Snapchat parent Snap (NYSE:SNAP) eventually learned how to balance future growth with present results.It also learned the hard way that users of its social media platform are sensitive to sweeping changes. Rekindled user growth and revenue growth is a big part of the reason SNAP stock has managed to rally from under $5 late last year to its current price near $15. * 10 Stocks That Should Be Every Young Investor's First Choice With half the user base of Twitter (NYSE:TWTR) and less than one-tenth of the 2.4 billion regular users Facebook (NASDAQ:FB) boasts, should advertisers be forced to tighten their belts, a still-somewhat-unproven Snapchat would likely be the first advertising venue they'd drop. Vonage Holdings (VG)Source: Shutterstock Remember Vonage Holdings (NYSE:VG)? It was the first big name to capitalize on VOIP technologies, running a lengthy and aggressive ad campaign all throughout the early 2000's.The company never achieved the greatness that many anticipated. Rather than let a third-party utilize their internet service, ISPs simply added voice capabilities to their own menus. That, and mobile phones became the new norm.Vonage is still around though, finding its niche in the corporate world by facilitating all sorts if digital communications that can't be accomplished by mere phone connections. The stock's been a surprisingly strong performer, too.Still, with cheaper solutions constantly presenting themselves -- ranging from Skype to Twilio (NYSE:TWLO) to Dropbox (NASDAQ:DBX) -- Vonage's could be a relatively easy service to drop should cost-cutting become a priority. Wayfair (W)Finally, add Wayfair (NYSE:W) to your list of stocks to sell if and when the environment turns ugly.It's been an impressive performer to be sure. W stock is up more than 21% for the past year, and is higher to the tune of 99% for the past two years on expectations that it would be able to take at least a small bite out of the e-commerce dominance Amazon (NASDAQ:AMZN) enjoys. It's made headway to that end even.With actual profits still years down the road at the company's current trajectory, even the smallest of economic shakeups could force Wayfair to make a margin-pinching decision its bigger rival wouldn't be forced to make. More consumers can live without Wayfair than can live without Amazon.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about him at his website jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy on College Students' Radars * 7 Retail Stocks to Buy for the Second Half of 2019 * The S&P 500's 5 Best Highest-Yielding Dividend Stocks The post 10 Stocks to Sell for an Economic Slowdown appeared first on InvestorPlace.