|Bid||248.55 x 1300|
|Ask||248.95 x 3200|
|Day's Range||247.37 - 249.91|
|52 Week Range||131.00 - 252.99|
|Beta (5Y Monthly)||2.04|
|PE Ratio (TTM)||63.84|
|Earnings Date||Feb 11, 2020 - Feb 16, 2020|
|Forward Dividend & Yield||0.64 (0.26%)|
|Ex-Dividend Date||Nov 25, 2019|
|1y Target Est||246.63|
Benzinga has examined the prospects for many investor favorite stocks over the past week. Bullish calls included a software leader and a discount airline. Bearish calls included an electric vehicle giant ...
Nvidia shares have soared roughly 60% in the last year as part of a broader semiconductor market climb that has come despite an overall sales and earnings downturn. So is now the time to buy NVDA stock?
Easily one of the best stories among the big technology firms, shares of Nvidia (NASDAQ:NVDA) returned almost 81% in 2019. Moreover, Nvidia stock is off to a solid start in the new year, up a little over 4%. Still, with the equity steadily approaching 2018's all-time highs, should investors adopt a more cautionary stance?Source: michelmond / Shutterstock.com It's a fair question because for one thing, Nvidia stock crashed hard shortly after it reached its peak market value. It turned out that you can't keep a good company down for long, which was great for speculators. However, shares are no longer the compelling undervalued pick they once were.Furthermore, the broader bull market will eventually wear out its welcome. Obviously, this could put pressure on Nvidia stock, which is levered toward businesses that are sensitive to consumer sentiment.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOn the flipside, the semiconductor industry is one of the few convincing bright spots in the U.S. economy. For example, the industrial production index for computers, communications equipment and semiconductors has skyrocketed since the Great Recession. Few other sectors, when adjusted for inflation, are as convincing as this technological category. * 10 Cheap Stocks to Buy Under $10 Additionally, Nvidia's peers, such as Intel (NASDAQ:INTC) and especially Advanced Micro Devices (NASDAQ:AMD), continue to build off their 2019 momentum. While that doesn't guarantee a smooth ride for Nvidia stock, over the long run, I see a continued upward trek for the tech giant. Specifically, here are three factors to consider. Nvidia Stock and Rising Importance of AIWhat makes Nvidia stock intriguing to investors is not just their processor prowess. Rather, the underlying company has shifted toward groundbreaking innovations such as artificial intelligence and deep learning.Currently, Nvidia has multiple initiatives for their AI interface, including improving citizen services. However, with the rise of geopolitical tensions and the threat of asymmetric attacks - that's a polite way of saying terrorism - AI can play a crucial role in next-generation defensive mechanisms.Better yet, Nvidia has partnerships in place to help develop the smart cities of tomorrow. Granted, the company's efforts are focused more on transportation efficiencies and safer operations. But with the AI platform in place, it wouldn't be a stretch to implement counterterrorism initiatives through innovations like facial recognition and behavioral analytics.Further, today's visceral threats don't involve bombs dropping from the sky from belligerent nations. Instead, law enforcement agencies are concerned about seemingly inconspicuous threats, such as domestic terrorism. However, AI is an effective tool to bolster security coverage, which in the long run could benefit Nvidia stock. Video Games Remain an Intriguing TailwindArguably, most people recognize the Nvidia brand for its premium graphics processing units or GPUs. And that's not a bad gig to have. Over the last several years, the video game industry has evolved from a niche segment of male nerds who have no chance of procreating to a surprisingly diverse and lucrative market.When it comes to video games, console makers, such as Sony (NYSE:SNE) and Microsoft (NASDAQ:MSFT), have dominated the headlines. Here, rival AMD scored a major coup when Sony announced that it will run its chips for the upcoming PlayStation 5. Obviously, that's not great news for Nvidia stock.Nevertheless, gamers can be separated into two categories: serious players and everybody else. For Nvidia, they have a strong case for addressing the former category due to their GPU expertise. Moreover, serious gamers are very much willing to fork over the dough.Out of the total worldwide gaming PC and accessory revenue, 43% can be attributed to sales of high-end gaming PCs. The rest is split between mid-range gaming PCs (35%) and entry-level gaming PCs (22%). In other words, as gamers dive into the realm of competitive gaming, their spending increases dramatically.Clearly, this benefits Nvidia stock, where the underlying tech firm has built a reputation on premium (read expensive) GPUs. Don't Ignore the Cryptocurrency RallyA few years back, one of the catalysts for the then-dramatically rising Nvidia stock price was the cryptocurrency rally. To make a long story short, cryptocurrencies emerge from complex transactional calculations associated with a particular blockchain architecture. I'm grossly oversimplifying the process but in order for a computer to complete the calculation in a quick enough timeframe, it must have stacks of advanced GPUs.This process, called mining, was profitable because the price of cryptocurrencies kept rising. But when the bubble popped, the mining industry no longer made economic sense. This immediately deflated demand for mining-specific GPUs, notably hurting Nvidia's revenue stream.Today, when people think about Nvidia stock, they're probably not considering bitcoin and other major cryptocurrencies. But in recent weeks, the price of bitcoin has significantly moved higher. For example, I mentioned the longer-term case for bitcoin on Dec. 19. Since then, the crypto has jumped approximately 30%.I'm not suggesting that you should buy Nvidia shares solely for a possible bitcoin comeback rally. What I am suggesting is that the crypto market is still relatively quiet. Thus, any GPU sales associated with virtual currencies is all bonus points for Nvidia.As of this writing, Josh Enomoto is long SNE and bitcoin. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Stocks to Buy Under $10 * 5 Retail Stocks Placer.ai Thinks Can Win Big in 2020 * 6 Cheap Stocks to Buy Under $7 The post 3 Factors to Consider for Nvidia Stock in 2020 appeared first on InvestorPlace.
As an investor, I've closely followed the semiconductor chip market over the past few years, and have learned that of the three big stocks in the CPU and GPU worlds -- Intel (NASDAQ:INTC), Nvidia (NASDAQ:NVDA), and Advanced Micro Devices (NASDAQ:AMD) -- INTC stock is the least loved of the group.Source: Kate Krav-Rude / Shutterstock.com There's reason for this. AMD and Nvidia are trendier picks. AMD is on this jaw-dropping ramp from irrelevant, nearly bankrupt CPU/GPU maker a few years back, to a force to be reckoned with today that is rapidly growing share in the most important niches of the CPU and GPU markets. At the same time, Nvidia has turned into an "AI everything" company, and is basically the go-to graphics suppliers for all of tomorrow's most important markets.Investors like those narratives. That's why, over the past year, AMD stock is up 155% and NVDA stock is up 67%.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The Top 5 Dow Jones Stocks to Buy for 2020 Then there's Intel. They are simply the established incumbent that is growing modestly in stable markets, and this lack of trendiness is why INTC stock is up "just" 23% over the past year.For the foreseeable future, Intel will remain less trendy than its peers. But the stock will keep working, and with much less downside risk, because the secular growth drivers remain favorable while the valuation remains attractive relative to peers.As such, I wouldn't discard INTC stock because it isn't AMD or NVDA. I'd embrace its differences, and ride the stock to new highs in 2020. Embrace Intel's DifferencesIt's easy to look at Intel, see a company that is losing CPU market share to AMD and is growing revenues and profits at a snail's pace, and write off INTC stock as a poor investment in an otherwise hot semiconductor market.But that cursory analysis misses the whole point of why someone would invest in Intel. Intel is stability, not rapid growth. It's steadiness, not volatility. And it's cheap, not expensive.You don't buy INTC stock for its rapid growth potential. At a $250 billion market cap and with $70 billion in revenues, Intel's market cap and revenues aren't going to soar higher anytime soon. Instead, you buy Intel for stability. Given its huge incumbency in several important CPU markets, Intel reasonably projects as a healthy, low single-digit revenue grower for the foreseeable future, with very little variance from that growth rate.You also don't buy INTC stock for the huge gains. You buy it for its steadiness. Compare the 10 year charts of INTC, NVDA, and AMD. Yes, Intel has under-performed over that time frame. But it's also experienced only four drops of 25% or more during that stretch. AMD has gone through over 10. So has Nividia. And both have seen their share price drop 50% multiple times. Intel stock's biggest drop over the past 10 years was about 30%.Meanwhile, you buy INTC stock because it's cheap and shielded from valuation risks. At 12-times forward earnings, Intel is dirt cheap next to AMD stock and NVDA stock, both which trade at over 40-times forward earnings. INTC Stock Will Keep WorkingStability, steadiness, and a relatively cheap valuation are reasons risk-adverse investors should be attracted to Intel stock for the long haul. But in the near term, there are three additional reasons why shares could break out to new highs in 2020.First, global information technology (IT) spending trends will improve in 2020, laying the groundwork for heavier investment into the CPU market. Thanks to easing trade tensions and supportive monetary policy, Gartner expects IT spend to rise 3.7% in 2020, versus just 0.4% growth in 2019. This rebound in IT spending will push Intel's revenue growth rates higher this year.Second, mainstream commercial 5G expansion will create bigger demand for Internet-of-Things (IoT) CPUs. Broadly, 5G is more about better smartphone connectivity -- it's about enabling an entire new era of IoT connectivity. Consequently, as 5G goes mainstream next year, the IoT industry will undergo a renaissance, demand for IoT CPUs will accelerate, and Intel's revenue growth rates will improve, because Intel has established dominance in the IoT CPU market.Third, Intel is set to launch next-generation 7-nanometer CPUs in 2021, the first new batch of lower power CPUs from Intel in some time. Ahead of this landmark new product line launch, investors will likely bid up INTC stock in anticipation of big growth from these new products. Bottom Line on INTC StockIntel may be less trendy that Nvidia and AMD. But, that that doesn't make an investment into INTC stock any worse than an investment into NVDA stock or AMD stock. It just makes it different.In Intel's case, different will work. Over the next several quarters, Intel stock should move higher on the back of improving IT spending trends, rising IoT CPU demand, and increasing optimism surrounding the company's 7-nanometer product launch in 2021.As of this writing, Luke Lango did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The Top 5 Dow Jones Stocks to Buy for 2020 * 7 Fintech ETFs to Buy Now for Fabulous Financial Exposure * 3 Tech Stocks to Play Ahead of Earnings The post Intel Stock May Not Be Trendy, But It'll Work in 2020 appeared first on InvestorPlace.
Back from the dead? That's what it feels like with Nvidia (NASDAQ:NVDA), as shares have erupted over the past few months and quarters. It's no secret that chip and semiconductor stocks are back in favor, but the resurgence in Nvidia stock is even more impressive given how hard it was hit.Source: Hairem / Shutterstock.com Coming into the fourth quarter of 2018, Nvidia stock was riding high. Investors had enjoyed a multi-year run in the stock that had returned roughly ten-fold on their early investment. The stock peaked at just over $290 per share, but then began to slip.The top came on Oct. 2. Because crypto-mining had inflated the company's top- and bottom-lines and those buyers suddenly vanished, it sent Nvidia into a tumultuous fall.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The Top 5 Dow Jones Stocks to Buy for 2020 Nvidia stock was going to get hit hard regardless during this time, as the S&P 500 and Nasdaq endured peak-to-trough declines of ~20% in less than three months. But Nvidia management had perhaps the worst timing possible to announce this negative crypto-related news. Shares ultimately fell more than 50% in just a few months.Is that all over now? Let's look at three reasons Nvidia may be back. GrowthPerhaps Nvidia's largest catalyst for a robust 2020 is a return to growth. The company has reported the first three quarters of fiscal 2020 already, with the last report likely due up in about a month.If the results are in-line, the company will report a ~8% decline in full-year sales and a ~16% decline in annual earnings. These figures are bad -- especially for a stock that's rallied 48% over the past six months -- and cap off a very disappointing 2019. But investors are unlikely to focus on the Q4 results, and instead focus on what's ahead.That's as consensus expectations call for a 19.1% rebound in growth and for earnings to grow 30.2% in fiscal 2021. It's obviously impossible to say whether Nvidia will beat or fall short of these estimates, but if management can deliver, it will represent record figures for both metics. Nvidia will officially be "back" if that's the case.As for looking beyond calendar 2020, there's no telling what roadblocks may lie in the way. All I can say is that, Nvidia is positioned in various secular growth trends and its products are literally the backbone to many of the services, automations and technologies that companies are and will continue to rely on in the future. Mellanox DealIn March, Nvidia announced it will acquire Mellanox for $125 per share in a $6.9 billion deal. In December, Nvidia received approval from the EU. China was the obvious worry when it came to approval, given that its silent treatment on Qualcomm (NASDAQ:QCOM) and NXP Semi (NASDAQ:NXPI) caused that deal to fall through.With the phase one trade deal now signed though, the hope by many is that Chinese regulators will be willing to play ball and sign off on the deal. Nvidia has recently said it expects the deal to close in early 2020.Why does this deal matter? Nvidia has said it expects the deal to be accretive to gross margins, earnings and free cash flow immediately after closing. That would help give a nice boost to an already improving situation. It will also be one more catalyst to take Nvidia stock higher. Nvidia Stock Chart Click to Enlarge Source: Chart courtesy of StockCharts.comIs Nvidia stock stretched? Well, let's just say that it's not exactly flying under the radar. The stock is up about $100 per share, or almost 70% from the August lows. Given that run, I wouldn't be surprised to see the stock hit "pause" at some point this year.That said, it's hard to bet against such a strong trend. After plunging below $190 in 2018, the stock tried several times to breakout over this level in 2019. It finally did so in October, while also reclaiming the 100-week moving average. The latter became support as Nvidia stock continued to grind higher.For now, the 10-week moving average continues to act as support, while the stock flirts with a breakout over $250. Ideally, we would get a pullback to uptrend support (blue line) and the 10-week moving average first. That way the stock can unwind some of its overbought condition and investors will get a chance to buy the dip.There are plenty of analysts getting bullish on the stock as well, with the latest calls ranging between $275 and $300 (shown via a blue box on the chart). In the past week, Nvidia stock has received a $300 target from four different analysts. So it's not as if just one or two bullish calls are being taken into consideration here.That doesn't mean Nvidia stock will get to $300 or that it will do so in the next month or two, but it's something to consider. As it stands right now, the technicals are another catalyst to the stock.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long NVDA. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The Top 5 Dow Jones Stocks to Buy for 2020 * 7 Fintech ETFs to Buy Now for Fabulous Financial Exposure * 3 Tech Stocks to Play Ahead of Earnings The post 3 Reasons Nvidia Stock Could Be Set for a Monster 2020 appeared first on InvestorPlace.
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