NVDA - NVIDIA Corporation

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
-9.04 (-5.27%)
At close: 4:00PM EDT
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Previous Close171.48
Bid161.01 x 1100
Ask161.20 x 1000
Day's Range161.64 - 170.59
52 Week Range124.46 - 292.76
Avg. Volume10,460,798
Market Cap98.926B
Beta (3Y Monthly)2.52
PE Ratio (TTM)30.66
EPS (TTM)5.30
Earnings DateNov 13, 2019 - Nov 18, 2019
Forward Dividend & Yield0.64 (0.39%)
Ex-Dividend Date2019-05-30
1y Target Est184.25
Trade prices are not sourced from all markets
  • How blockchain is being deployed for ESG
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    How blockchain is being deployed for ESG

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  • NVIDIA Remains Under Pressure From AMD
    Motley Fool

    NVIDIA Remains Under Pressure From AMD

    One of NVIDIA's fastest-growing segments has hit a roadblock in recent quarters thanks to the competition.

  • Apple, Silicon Valley chip stocks hammered after Trump's 'shot across the bow'
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    Apple, Silicon Valley chip stocks hammered after Trump's 'shot across the bow'

    Shares of Apple and Silicon Valley's semiconductor companies were pummeled on Friday as President Trump responded to new tariffs from China with a tweet saying he's demanding that American companies "immediately start looking for an alternative to China."

  • 3 Top Artificial Intelligence Stocks to Watch in August
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    3 Top Artificial Intelligence Stocks to Watch in August

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  • Does NVIDIA Stock Have Upside Potential?
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    Does NVIDIA Stock Have Upside Potential?

    On August 22, NVIDIA stock closed at $171.48, which was 0.15% higher than its previous closing price and 41.4% lower than its 52-week high of $292.76.

  • Here’s Why a Gamble on Nvidia Stock Might Pay Off

    Here’s Why a Gamble on Nvidia Stock Might Pay Off

    Semiconductor and technology giant Nvidia (NASDAQ:NVDA) has suffered misfortune due to timing issues over the past year or so. In October of last year, the Nvidia stock price disproportionately suffered from the broader market selloff. Then, after going on a convincing recovery rally in the first four months of this year, NVDA fell short.Source: Hairem / Shutterstock.com Part of the reason why is that Advanced Micro Devices (NASDAQ:AMD) started to assert itself fundamentally. Long seen as the smaller sibling in the semiconductor space, AMD has churned out some impressive products. Moreover, they have either matched or exceeded the performance stats of the alpha dog chips.On top of that, we have the escalation of the U.S.-China trade war. Of course, China represents a massive revenue stream for NVDA. For example, earlier this year, management guided down top-line sales expectations due to weak demand from the world's second-biggest economy. With the recent flare-up, the Nvidia stock price has been awfully choppy.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat said, the embattled company released information that should give some hope to stakeholders of Nvidia stock. NVDA Delivers Processing FirepowerArguably, the Nvidia rivalry with AMD isn't as comprehensive as the one AMD has with Intel (NASDAQ:INTC). Nevertheless, where the former pairing has butted heads is in the gaming arena. * 10 Marijuana Stocks That Could See 100% Gains, If Not More As I alluded to earlier, Advanced Micro has made huge strides in their processor offerings. And within the lucrative video game market, AMD's processors have specialized in image sharpening and input lag reduction. The latter involves the time when a player makes an action through the controller, and the response time within a game.Obviously, the shorter the time between input and response, the better. Now, NVDA is claiming that they achieve superior specs with their processor's anti-lag system.In nominal terms, we're talking milliseconds of time save, hardly what you would think is a substantive improvement. Also, it seems like a pretty wonky argument for Nvidia stock.However, video games are big business. And given worldwide trends, industry phenomena like esports will become an even bigger business. Already, we're seeing major sponsorship deals in gaming tournaments. Further, celebrities and pro-athletes have joined in on the fun, bringing in both eyeballs and dollars.Thus, those milliseconds are huge for NVDA. Literally, a gaming tournament can be won or lost on such tiny margins. As ridiculous as it may seem to non-gamers, even a small edge can eventually translate to massive revenue.Granted, we should take anything NVDA says about its own products with a huge grain of salt. However, this time, they might have a point.As our own Will Healy noted about some of AMD's latest processors, they may not work as well as advertised. In fact, several users have complained on message boards and forums that Advanced Micro's Ryzen 3000 doesn't clock in the manufacturer's promised performance stats. Granularity More Critical than Ever for Nvidia StockFor many folks, this might sound like a lot of nerd-speak. Ordinarily, I'd agree with you. However, this processor-performance granularity has significant implications for the Nvidia stock price due to the present context.With the trade war raging, all companies - especially tech firms - are seeking ways to survive a coming downturn. What benefits NVDA stock at this juncture is that video games should turn out to be a fairly recession-resistant industry.Back during the Great Recession, the box office fared very well. Why? Simply put, Hollywood blockbusters offered escapism for a relatively low price. And back in the 1930s during the low days of the Great Depression, movies also brought smiles for cheap.I will argue that the only thing that changed today is the platform. Thus, it's important for Nvidia to assume leadership in this segment. After all, it might turn out to be one of the few areas that we'll see legitimate growth. Enough to Gamble on Nvidia?But is gaming alone enough to take a speculative bite on NVDA stock? Probably not. Instead, what investors should focus on is the cumulative argument.Essentially, Nvidia had to muscle its way into AMD's gaming space because that's where this rivalry is most robust. But in other areas, such as driverless-vehicle technologies or artificial intelligence, Nvidia imposes a more dominant presence.Plus, let's just address the low-hanging fruit. The enterprise value for Nvidia stock is $98.5 billion. For AMD, it's under $35 billion. Thus, push comes to shove, Nvidia simply has more resources to buffer a downturn or recession.Certainly, it's not a comfortable investment given the trade war risks. However, if you're going to bet on a semiconductor, NVDA is it.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 Marijuana Stocks That Could See 100% Gains, If Not More * 11 Stocks Under $10 to Buy Now * 6 China Stocks to Buy on the Dip The post Herea€™s Why a Gamble on Nvidia Stock Might Pay Off appeared first on InvestorPlace.

  • Artificial Intelligence Is Key to Nvidia Stock’s Turnaround

    Artificial Intelligence Is Key to Nvidia Stock’s Turnaround

    Nvidia Corp (NASDAQ:NVDA) the giant $91 billion market cap gaming chip maker, reported second-quarter earnings that signal the importance of artificial intelligence (AI) for its future. Its latest results show AI is leading its turnaround.Source: michelmond / Shutterstock.com NVDA's new gaming RTX chips use AI to simulate light (called "ray tracing"). Its hyperscale data center clients are increasingly buying Nvidia chips to enable their AI conversation and training bots. Nvidia is also leading in the autonomous vehicle market which need AI chips.The Q2 earnings which Nvidia reported on Aug. 15 showed a marked turnaround. On the follow-up call, NVDA's CEO highlighted the how AI is powering Nvidia's growth in these markets.InvestorPlace - Stock Market News, Stock Advice & Trading TipsNVDA reported Q2 sales of $2,579 million, down 17.4% from the prior year, but up 16.1% from $2.22 billion reported in Q1 2019. NVDA's Q3 sales guidance was $2.9 billion, plus or minus 2%. * 10 Stocks to Own Through a Global Recession NVDA is now back on a growth path. Three months ago Nvidia stock was trading for $169 per share when it reported Q1 earnings. Today the Nvidia stock price is trading for $156.83 after hours. The market is starting to believe in the turnaround.Downturn EndedNvidia sources most of its manufacturing in Taiwan. So it is not directly affected by Chinese chip suppliers, the China yuan devaluation, and the U.S. China trade war. However, it is facing competition from Chinese data centers which buy chips elsewhere.In May Nvidia's CEO, Jensen Huang, told CNBC that "there was no question in my mind that the spending pause has ended" in their portion of the chip market. NVDA's figures today clearly showed this improvement.Gross MarginsAnalysts focus on Nvidia's gross margins as a bellwether of its financial health. In Q1 NVDA reported lows of 59.0%, and this quarter it hit 60.5%, both on a non-GAAP basis. NVDA's outlook for Q3 is for 62 to 62.5%, plus or minus 0.50%. Take a look at this chart taken from the Nvidia CFO's Commentary on Aug. 15, 2019:The reason this is important can be seen using the guidance for Q3. With sales at $2.9 billion next quarter, $765 million in operating expenses and $25 million in other income, with a tax rate of 10%, the estimated earnings per share next quarter will be $1.59, up 28.5% on the quarter: Bargain at This PriceOn an annualized run rate basis for the next 12 months full year earnings will be $6.37 per share. The earnings are also likely to incrementally increase 10 to 15% for each quarter as the turnaround grows each quarter. That implies a 12 month forward EPS of $7.40 to $7.96. At this price the implied price-to-earnings ratio is between 20 and 21x.Analysts covered by Yahoo! Finance have the stock trading at a forward P/E ratio of 20x, so this is in line with those analysts. At this price, the stock looks like a reasonable bargain. Nvidia Is Full of CashNVDA has $8.475 billion in cash, no debt and is free cash flow positive. Its latest Q2 filings showed that free cash flow was $823 million for the quarter, and this represented 89% of its net income of $923 million. I estimated that NVDA will have accumulated $10.7 billion in cash by the end of the year. NVDA has suspended its share buybacks until then.NVDA agreed to buy Mellanox Technologies (NASDAQ:MLNX) for $6.9 billion in cash, including debt. This should close by year end 2019. I estimate that NVDA will still have over $3.8 billion left over after the deal closes. NVDA plans to then restart buybacks. Bottom Line on Nvidia StockNvidia's business is now showing clear signs of a turnaround. Demand for its AI chips in gaming and data centers is rising. It is generating free cash flow each quarter, and will be accumulating cash up to year-end when it buys Mellanox. At this price, Nividia stock has a low P/E ratio. It is probably a good time to jump back in on Nvidia stock.As of this writing, Mark Hake, CFA does not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks to Buy on the Dip * 7 Marijuana Stocks With Critical Levels to Watch * 7 Internet of Things Stocks to Buy Now The post Artificial Intelligence Is Key to Nvidia Stock's Turnaround appeared first on InvestorPlace.

  • 3 Big Stock Charts for Friday: HP, Nvidia and Albemarle

    3 Big Stock Charts for Friday: HP, Nvidia and Albemarle

    Stocks were back and forth, in the red and in the black, for the better part of Thursday's action. When push came to shove as the closing bell approached though, neither side of the table was doing much shoving. The S&P 500 closed a mere 0.05% lower yesterday.Source: Shutterstock It wasn't because some names didn't do their part. Boeing (NYSE:BA) rallied more than 4% after announcing it had won a respectable contract from the Department of Defense to upgrade wings on the more than a hundred A-10 attack aircraft. But, investors may have been further encouraged by word that the aircraft maker was planning on ramping up output of the beleaguered 737 MAX. That news suggests customers believe the passenger jet can be made safe.There were just too many names like Splunk (NASDAQ:SPLK) holding the market down. Shares of the software company fell nearly 8% despite a solid quarterly report, as Splunk also announced an acquisition investors aren't entirely convinced is a great idea for the $1 billion it's paying for the deal.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks to Own Through a Global Recession Neither are great prospects headed into Friday's trading, however. Rather, stock charts of Nvidia (NASDAQ:NVDA), Albemarle (NYSE:ALB) and HP (NYSE:HPQ) have earned closer looks. Here are those looks. HP (HPQ)HP shares have been all over the map since late last year, and weren't exactly a picture of stability for the better part of the past three years. The selloff since October, however, has not only been bearish, but well framed by clear support and resistance levels.The bad news is, that trading range is steering HPQ stock lower, and there's more downside to go before the floor is bumped into again. Perhaps worse, the bearish momentum is starting to build in a way that portends lower lows are imminent. * Click to EnlargeAlthough choppy, HP has framed a bearish channel, marked with yellow dashed lines on both stock charts. HPQ stock is moving towards that floor, but remains nearly two points above it right now. * It's not yet consistent, but the volume behind several of the most recent selloffs has been above average. * With no other framework in sight that could serve as a landing spot now; the next most likely technical floor is the Fibonacci retracement line at $15.85. Nvidia (NVDA)Nvidia was one of the hardest-hit names last year, sent lower in step with the broad market's weakness, which was exacerbated by a meltdown of the crypto-mining industry.NVDA stock has been working on a recovery since late last year though. It has not been able to form one just yet, but it continues to try. The end result is a well-made set of support and resistance lines. Better still, Nvidia stock is close to punching through the upper boundary. * 7 Internet of Things Stocks to Buy Now * Click to EnlargeThe support and resistance lines in question are marked as blue line on both stock charts. The upper boundary is being tested again this week. * Although not yet above straight-line support, this week NVDA stock has pushed its way back above the gray 100-day moving average line and the white 200-day line. * It has not yet firmed up, but there's above-average bullish volume materializing here and it has been enough to let the weekly chart's Chaikin line move back above the zero level. Albemarle (ALB)Finally, Albemarle has been in something of a nosedive since early last year. Although it has seen the occasional rebound effort, each one of them has been met by a move to lower lows.There has been a method to the madness, however. Each lower low and each lower high has contributed to the establishment of a well-defined, falling trading range. The current trajectory is clearly downward, but that doesn't necessarily mean ALB has to stay on the path. It does, however, suggest there's room for a little more downside before traders have to make a decision. * Click to EnlargeIt's plotted on both stock charts, with dashed blue lines. Either way, it's clear Albemarle shares are being squeezed into the tip of a narrowing wedge pattern that will force a decision. * Although the descending wedge is currently bearish, and the gray 100-day moving average line is now resistance, the whole move could fuel an explosive move higher if the upper boundary can be snapped. * And although the converging support and resistance could be building up a major breakout move, for the time being, ALB stock looks like it's aiming to test the lower boundary around $60, marked with a yellow arrow.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 * 7 Retail Stocks to Buy on the Dip * 7 Marijuana Stocks With Critical Levels to Watch * 7 Internet of Things Stocks to Buy Now The post 3 Big Stock Charts for Friday: HP, Nvidia and Albemarle appeared first on InvestorPlace.

  • NVIDIA Falls 3%

    NVIDIA Falls 3%

    Investing.com - NVIDIA (NASDAQ:NVDA) fell by 3.29% to trade at $165.84 by 11:07 (15:07 GMT) on Friday on the NASDAQ exchange.

  • Like it or Not, AMD Stock Has a Valuation Problem

    Like it or Not, AMD Stock Has a Valuation Problem

    The thesis sounds reasonable enough, on the surface. Advanced Micro Devices (NASDAQ:AMD) is in the midst of a turnaround that's put rivals Intel (NASDAQ:INTC) and Nvidia (NASDAQ:NVDA) on their heels. Therefore, buy AMD stock to plug into the rebirth.Now more than three years -- and more than 1,500% -- into the turnaround though, it may be time to accept a certain reality. That is, Advanced Micro Devices stock may already reflect the full potential of what's to come.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIt's not an idea that will prove popular in many circles. The company, and its stock, has more than its fair share of cheerleaders. Many of them are quite vocal.Just run through the number crunching before coming to an unwavering conclusion. The Turnaround is for Real, but …The underlying story has been nothing short of incredible.CEO Lisa Su, who took the helm in 2014, wasn't your typical management executive. She's a techie, first and foremost, earning a PhD in electrical engineering from MIT, and spending most of her career in the engineering and development sliver of the industry.It was just the kind of shake-up the struggling company needed at a time it needed it most. Su has led a sweeping overhaul of the company's product lineup, ultimately driving the AMD stock price from under $2 in early 2016 to more than $30 right now. She's also pushed the company out of the red and back into the black. * 10 Stocks Under $5 to Buy for Fall The next three years may or may not look like the past three years though.Barring a global economic catastrophe, Advanced Micro Devices will continue to grow. Next year's projected 24% sales growth, in fact, seems perfectly reasonable … even impressive.There's a context that takes some of the shine off that outlook though. That is, this year's revenue growth is only on pace to improve a little less than 5%.The bar is set low moving into next year.Perhaps more concerning, 2021's top line is only projected to improve to the tune of a more-modest 13%. That's when Intel is expected to finally launch its first 7-nanometer chips, and presumably other updated hardware that will compare nicely with AMD's tech.That revenue growth will drive even-stronger profit growth, to give credit where it's due. This year's estimated earnings of 63 cents per share of AMD stock should swell to $1.06 in 2020, and then grow to $1.29 the year after that. But, those numbers still leave behind a significant valuation challenge. AMD Stock has a Valuation ProblemAdmittedly, it's tough to look past the math when the underlying story is so compelling. Nothing lasts forever though, particularly when the trajectory of a stock's rally is considerably sharper than the trajectory of that company's results.Said in simpler terms, Advanced Micro Devices stock has continued to rise when it arguably shouldn't have.Even pushing the analysis out to 2021's expected revenue of $9.5 billion and earnings of $1.29 per share, AMD stock is trading at a forward price/sales ratio of 3.6x, and a forward price/earnings ratio of 24.4x. And again, that's two years down the road. Those valuation measures are rich for most other tech stocks using expectations just one year ahead. * 10 Undervalued Stocks With Breakout Potential For perspective, NVDA stock is priced at 24.0 times next year's earnings estimates, while INTC stock is valued at 10.6 times 2020's projected income. Intel shares are also only priced at three times next year's expected revenue. Bottom Line on Advanced Micro Devices StockIt's not that nobody sees the looming headwind facing Advanced Micro Devices stock. Analysts see it quite clearly.Although meteoric rallies would often induce the professionals to up their price targets and catch the next leg of a persistent advance, they're decidedly not doing so in this case. The current consensus target of $33.18 is only 5% better than the current AMD stock price near $31.50. That's a 12-month target too, and not a current valuation measure.As Piper Jaffrey's Harsh Kumar said, "Given the stock's recent appreciation … and the current macro/geopolitical environment, we see the stock as more or less fully valued."It's investors who are choosing not to see the fact that the bulk of AMD's turnaround is already priced in. And in this case, it's these individual investors in charge of setting the market price. They're still basing it on the past rather than the plausible future.Bottom line? Just be careful. This game of musical chairs could be ending soon, leaving some unsuspecting traders without a seat.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 Marijuana Stocks That Could See 100% Gains, If Not More * 11 Stocks Under $10 to Buy Now * 6 China Stocks to Buy on the Dip The post Like it or Not, AMD Stock Has a Valuation Problem appeared first on InvestorPlace.

  • CEO Lisa Su: AMD to Increase Artificial Intelligence Profile
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    CEO Lisa Su: AMD to Increase Artificial Intelligence Profile

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  • GlobeNewswire

    NVIDIA Announces Upcoming Event for Financial Community

    SANTA CLARA, Calif., Aug. 22, 2019 -- NVIDIA will present at the following event for the financial community:   Citi 2019 Global Technology Conference   Thursday, Sept. 5, at 8.

  • NVIDIA Stock: Is Now the Right Time to Buy?
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  • Can the Minecraft Deal Boost Microsoft's Gaming Segment?

    Can the Minecraft Deal Boost Microsoft's Gaming Segment?

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  • The $34 Price Ceiling Still Blocks the Growth of AMD Stock

    The $34 Price Ceiling Still Blocks the Growth of AMD Stock

    Advanced Micro Devices (NASDAQ:AMD) stock trades in a no man's land. The equity made a dramatic and deserved comeback under CEO Lisa Su. Now it holds a market lead over Intel (NASDAQ:INTC) and has become a competitive threat to rival Nvidia (NASDAQ:NVDA).Source: Grzegorz Czapski / Shutterstock.com However, headwinds from within the company and the macro economy could mean that AMD stock will struggle to gain traction for the foreseeable future. The $34 Ceiling HoldsFew can deny the dramatic turnaround AMD stock has made under Lisa Su. She has taken AMD from a company struggling for survival to one that has leaped ahead of archrival Intel by years. The company's 7nm Rome processor launched on August 7 amid an environment where Intel struggles to release a 10nm Xeon processor.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe biggest problem I see for Advanced Micro Devices stock is the one I mentioned before earnings--the $34 per share price ceiling. Earnings of 8 cents per share saw the company meet estimates on a non-GAAP basis. From a GAAP standpoint, earnings of 3 cents per share actually fell short of expectations by a penny per share. Quarterly revenues of $1.53 billion beat estimates by a relatively modest $10 million. * 10 Marijuana Stocks to Ride High on the Farm Bill Due to this lackluster report, the $34 per share price ceiling held firm. The AMD stock price fell below $28 per share by August 5. Three days later, news that Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) would use AMD processors for Google Cloud quickly sent it back to the $34 price ceiling. Unfortunately for bulls, that limit held again, and now, Advanced Micro Devices stock trades at under $32 per share.From a fundamental standpoint, Advanced Micro's inability to go to $35 per share and beyond seems hard to understand. AMD stock currently trades at a forward price-earnings (PE) ratio of around 29. While not cheap from an S&P 500 standpoint, it seems a little low for a semiconductor stock at the top of its game.Investors might recall that Nvidia traded at over 50-times earnings before the fall 2018 stock selloff. Moreover, Wall Street estimates profit growth of 37% for the current fiscal year and 68.3% the next. Investors have often paid much higher multiples for lower growth. AMD Faces Internal and Macro HeadwindsStill, despite AMD stock appearing inexpensive, I would wait until the $34 price ceiling breaks before buying it. For one, some have cast doubts that AMD's Ryzen chip works as fast as advertised. Despite this news, AMD still maintains a wide lead over Intel. However, this may also indicate that AMD has some work to do on this chip. Such news could dampen confidence in Advanced Micro Devices stock.Moreover, AMD stock could also become the victim of macro headwinds. AMD first achieved its multi-year high of around $34 per share in September 2018. During last year's fall season, the selloff wiped out more than half of its value before the recovery earlier this year.Now, the yield curve has inverted, indicating that a recession may come soon. I do not think this changes the long-term bull thesis on AMD. However, it could lower revenues in the near term. Also, in such an environment, investors tend to show a lower tolerance for high multiples.Furthermore, the continuing trade war with China creates further concerns. As Faisal Humayan points out, China accounts for about 30% of AMD's business. This places in doubt the company's ability to do business with Chinese tech giant Huawei. For now, the Trump administration has lifted restrictions. However, it should surprise nobody if this Huawei ban gets reinstated. The Bottom Line on AMD StockThough AMD will remain a force in the semi industry, investors should avoid Advanced Micro Devices stock for now. Usually, I would encourage investors to buy an equity in AMD's position. A forward PE of 29 and profit growth north of 30% typically seems like a reasonable bet. Moreover, its lead over arch-nemesis Intel should bode well for the company.However, the inability of AMD stock to stay above $34 per share limits the potential for near-term gains. Furthermore, lower-than-advertised speeds for the Rome processor could put pressure on shares as the company addresses this issue. Finally, macroeconomic conditions such as a possible recession and an extended trade war could dull the appetite for equities across the board.AMD is a long-term winner, and the $34 per share price ceiling cannot hold forever mathematically. However, as long as it remains intact, AMD stock is only a buy at a significantly lower or higher price.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 Marijuana Stocks to Ride High on the Farm Bill * 8 Biotech Stocks to Watch After the Q2 Earnings Season * 7 Unusual, Growth-Oriented REITs to Buy for Your Portfolio The post The $34 Price Ceiling Still Blocks the Growth of AMD Stock appeared first on InvestorPlace.

  • This Earnings Pop Is a Great Opportunity to Start Dumping Nvidia Stock

    This Earnings Pop Is a Great Opportunity to Start Dumping Nvidia Stock

    Nvidia (NASDAQ:NVDA) has pleased investors with its latest earnings report. Nvidia stock traded sharply higher to close the week, with shares advancing more than 7%. The sector also got help with peer Applied Materials (NASDAQ:AMAT) posting solid earnings as well.Source: Hairem / Shutterstock.com How much will this earnings report matter to Nvidia's longer-term trajectory, however? I argue that these results will do little to shake Nvidia out of its recent funk. As we'll see, Nvidia is making the best of a bad macroeconomic environment. But make no mistake, it will be hard for NVDA stock to rally given the factors that are outside of its control. Gaming Powers a Solid QuarterFor the second quarter, Nvidia beat both earnings and revenues estimates. Revenues topped expectations by a fairly modest $40 million, however, earnings came in hot at $1.24 against the market's outlook for just $1.15 per share. As you might have guessed, the big earnings beat came largely from stronger profit margins rather than better than expected sales.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Undervalued Stocks With Breakout Potential The stronger profit margins line up with another encouraging trend: declining inventories. Nvidia's inventories fell to $1.2 billion from $1.43 billion previously.Importantly, Days Sales of Inventory "DSI", a metric that tracks how many days of inventory a company has ready to go, plummeted from 140 to 106. This indicates that conditions within the industry appear to be returning toward average and that the chip glut is largely behind us.Nvidia scored big in gaming in particular. It pulled in more than $1.3 billion in gaming revenues for the quarter. Yes, that figure still slumped 27% from the same quarter last year. But it rebounded 24% from the previous quarter of 2019 as Nvidia notched record gaming laptop sales and launched new product lines for desktop gamers, and video creators.Nvidia expects this positive momentum to continue as a line of highly-anticipated games using ray tracing technology. This should push consumers to upgrade to the latest available Nvidia chips. Not All Great News, HoweverApart from gaming, however, there were significant weaknesses for Nvidia. For one thing, data center revenue rose just 3% sequentially and is still down double digits from last year. Management sees continued weakness in spending trends from large customers.And let's back up for a minute. Nvidia set a really low bar going into this quarter. Sure, they managed to beat guidance, but guidance was atrocious. We're still looking at huge drops in both data center and gaming revenues from last year. Competition from the likes of AMD (NASDAQ:AMD) is clearly pressuring Nvidia's prospects.Going forward, Nvidia posted lower guidance than analysts had expected. Bulls had been hoping for a big gaming turnaround this quarter and that leading to forward momentum going forward.Gaming turned up, but not enough to lift Nvidia's overall prospects. Without things looking a lot better from auto and data centers, NVDA stock will at best chop around if not resume going downward. Nvidia Faces Serious HeadwindsThe elephant in the room remains the trade war. Numerous semiconductor companies have reported that the trade freeze has hit demand. Clearly, it's put a damper on results for both Nvidia and competition such as AMD and Intel (NASDAQ:INTC) as well. And the trade war appears to be escalating, witness all the concerns about the Yuan slumping earlier this month.Combine that with more weak guidance from Nvidia, and the outlook for NVDA stock simply isn't good. You have to suspect that analysts are going to lower their revenue and EPS outlooks for 2020 in the coming weeks now.Without growth in data center or spectacular results from auto, there's really not much to get excited about.The gaming revenues are good. That's a solid step for NVDA stock. But shares are still trading at more than 8x sales. You'd normally mark a semiconductor company like this closer to 5x sales, which would put NVDA stock down around $90 to $100 per share.Nvidia investors have priced a whole lot of growth ( along with higher profit margins) from emerging product lines into Nvidia's stock price. This quarter did little to back up those optimistic assumptions. Nvidia Stock VerdictNvidia has been trading in a narrowing range in recent months. On numerous occasions, Nvidia stock has found support between $130 and $150 per share. On the upside, it made a decent run to try to get back over $200 in April, but each subsequent rally has been weaker and weaker.Will Nvidia be able to get out of its declining trading range and resume making gains? While this earnings report certainly was a positive, it's not a game-changer for the firm.Nvidia stock investors don't have to worry about the share price plunging to new lows just yet. But don't expect this earnings rally to be the start of anything much until the trade war is resolved and the company can raise guidance again.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 Marijuana Stocks to Ride High on the Farm Bill * 8 Biotech Stocks to Watch After the Q2 Earnings Season * 7 Unusual, Growth-Oriented REITs to Buy for Your Portfolio The post This Earnings Pop Is a Great Opportunity to Start Dumping Nvidia Stock appeared first on InvestorPlace.

  • Is the Surge in Nvidia (NVDA) Stock Sustainable? Merrill Lynch Sees Further Upside Ahead

    Is the Surge in Nvidia (NVDA) Stock Sustainable? Merrill Lynch Sees Further Upside Ahead

    Chip-maker Nvidia (NVDA) had a great week in the markets, gaining nearly 7% as the share price broke above $170. Even more impressive, the gains came after a 7% gain on Friday.Finally, and probably most importantly, Nvidia’s strong earnings for fiscal Q2 easily beat the forecasts and assuaged investor fears that the company could not bounce back from its poor showing back in January. Revenues, while down 17% annualized, came in at $2.58 billion – 1.5% higher than the expected $2.54 billion. EPS results were even stronger, with the $1.24 reported beating the $1.15 forecast by 7.8%.5-star Merrill Lynch analyst Vivek Arya saw the pop in NVDA and gave it his approval, along with a Buy rating. He points out Nvidia’s success with the gaming sector, but especially with the new RTX chips. He sees RTX a field for growth, well suited to “Nvidia's superior long-term growth profile in large, underpenetrated markets.”Arya also went out on a limb and maintained a bullish price target of $225. For perspective, Nvidia’s stock closed at $171.23 today, so this implies upside of more than 30%."Overall NVDA’s gaming business is well set to recover from last year’s crypto-driven headwinds, as gamers upgrade to RTX Turing cards with ray-tracing that start at a $349 ASP (average selling price) with variations to $1,199) or 40% above vs. prior-gen $249+ Pascal card," Arya opined.Stepping back, some recent events come into focus, lending more clarity to the semiconductor company’s gains.Working with Microsoft on MinecraftA lot of good things can happen at conventions, and on Monday Nvidia and Microsoft together announced at the Cologne, Germany Gamescon that the chip company’s RTX technology will be added to upcoming PC versions of the popular game. RTX will improve the lighting, shadows, and colors, and undoubtedly enhance the Minecraft gaming experience.It’s good news for both companies, but especially Nvidia. Getting its best graphic chip into the world’s best-selling video game ever is an undoubted coup and bodes will for Nvidia’s near- to mid-term GPU sales.A Reprieve on the China FrontAlso good for Nvidia is the Trump Administration’s decision to hold off, at least for now, on fully banning US companies from working Huawei, the giant Chinese telecom that has been accused of manipulating 5G networks. US companies have an additional 90 days during which they can continue with Huawei or prepare to back out. Nvidia, which counts Huawei as a major customer, benefits either way.The Consensus VerdictWall Street loves Nvidia, considering most voices are betting on this GPU giant. TipRanks analytics exhibit NVDA as a Buy. Based on 27 analysts polled in the last 3 months, 19 rate a Buy on Nvidia stock while 7 maintain a Hold, and only one recommends Sell. Meanwhile, the 12-month average price target stands at $184.83, marking an 8% upside from where the stock is currently trading. (See NVDA's price targets and analyst ratings on TipRanks) More recent articles from Smarter Analyst: * Between Antitrust Issues, LG Deal, and Trade War, Is Qualcomm (QCOM) Stock a Buy? * Facebook (FB) Adds Privacy Tool; Top Analyst Remains a Bull on the Stock * Marijuana Stock Supreme Cannabis Is Ready to Spark Higher * Qualcomm (QCOM) Stock Has Limited Upside, Says UBS

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