|Bid||179.72 x 1000|
|Ask||179.77 x 1200|
|Day's Range||179.56 - 180.90|
|52 Week Range||124.46 - 292.76|
|Beta (3Y Monthly)||2.44|
|PE Ratio (TTM)||40.62|
|Earnings Date||Nov 13, 2019 - Nov 18, 2019|
|Forward Dividend & Yield||0.64 (0.35%)|
|1y Target Est||186.31|
Glassdoor is out with its rankings of the highest paying jobs and companies in the United States. Yahoo Finance's Zack Guzman, Sibile Marcellus, and Reggie Wade are joined by Courtney Dominguez, Payne Capital Management Financial Advisor, to discuss.
The last 18 months have been hard on the semiconductor industry. Investors sold off chip stocks through the second half of 2018, but a year later the sector is looking better. The turndown was prompted by the US-China trade tensions. That 'trade war' is still simmering, but the two governments are continuing to talk. Investors are less nervous, now that the pattern of tariff-reprisal-delay-negotiate is understood and baked into the affected industries.The current optimism on semiconductor stocks is fueled by the approaching transition to 5G wireless networks. While chip demand is generally low right now, telecom providers are getting ready to switch from 4G to 5G – and that switch will require new chips. Control systems, modems, smartphone devices – companies and customers will see new 5G-compatible models in the next 12 months, and every device will need 5G compatible chips. The chip makers are looking at a resurgence of business next year, and that outlook is starting to lift the chip stocks. Logan Purst, industry analyst from Edward Jones, gave a succinct description of the recent gains in chips: “What’s being priced into these stocks is a rebound next year.”Here we’ve searched for large cap tech stocks and found three upwardly mobile chip stocks in the results. These are companies that have shown solid gains so far this year, as they recover from last year’s malaise. While all will gain from the 5G switchover, their individual paths to success are unique. Micron Technology, Inc.The smallest of the chip makers we’re looking at here, Micron (MU – Get Report) posted $31.8 billion in total sales for 2018, the fifth highest total among the world’s largest semiconductor companies. MU shares are up 59% year-to-date. Much of their momentum has been recent, as the three-month gain is 48%. Indeed we can see that best-performing investors have Very Positive sentiment on MU right now according to TipRanks Smart Portfolio. And analysts expect the recent momentum to help the company’s bottom line in next week’s fiscal Q4 earnings report. EPS is forecast at 43 cents.Longbow analyst Nikolay Todorov sees memory as the catalyst for MU’s future success. He writes, “We are turning more positive on memory fundamentals as we now believe excess inventory will be depleted faster than expected, triggering an improvement in pricing and margin ahead of current expectations.” Todorov’s $66 target suggests a strong upside of 30%.Mark Delaney, from Goldman Sachs, agrees that Micron will benefit from increased memory chip demand during the 5G transition, and that the upcoming earnings report will be the first sign. Anticipating a healthy quarter, he has raised his price target by 5%, to $59, and says that he expects “EPS to be above the mid-point of guidance, as increased bit volumes should help results in the August quarter.” His new price target suggests room for a 17% upside.Overall, MU stock has 15 buy ratings, 6 holds, and 2 sells assigned in the past three months. This gives the stock a consensus rating of Moderate Buy. MU sells for $50.48, and its recent gains have pushed it right up to the average price target of $51.14. Nvidia CorporationNvidia (NVDA – Get Report) is well known to gamers, as the company specialized in the GPUs necessary for a quality gaming experience. The stock, however, took a heavy beating at the end of 2018, reflected in steep quarterly declines reported in February of this year. NVDA shares are turning around, however, and in August reported the third quarter in a row of increasing EPS. Earnings, at 91 cents, beat the 87-cent forecast by 4.4%. Forecasts the November 2019 report show an expected $1.24 per share in earnings. The last time Nvidia reported over $1 in EPS was in November of last year.Share price movement is reflected the recovery in earnings. NVDA is up 34% year-to-date, and as with Micron, the recent momentum is strong. The three-month gain is 17.6%.Writing at the end of August, Benchmark’s 5-star analyst Ruben Roy initiated his coverage of NVDA with a buy rating and a $210 price target. He wrote, “Nvidia is positioned for faster growth relative to semiconductor peers given the increasing use of GPUs across a diverse set of markets.” Roy’s target implies an upside of 16% for NVDA shares.UBS analyst Timothy Arcuri weighed in on Nvidia more recently, also with a buy rating. He sees the company showing steady profitability going forward, saying, “On gaming, we see ~$1.25-1.3B core gaming (ex-Switch) as very do-able for FQ3:20 (Oct) and seasonality should add a big FQ4 tailwind. Additionally, the ~$1.4B/Q normalized revenue is backward looking, and a forward-looking number should likely be as high as ~$1.7-1.8B/Q given annual unit growth.” Arcuri’s price target indicates room for an 8.3% upside to Nvidia’s stock.Nvidia’s analyst consensus is a Moderate Buy, derived from20 buys, 5 holds, and 2 sells set by top analysts in the last three months. The stock’s $187 average price target suggests an upside potential of 4.4% from the current share price of $179. As with Micron, the company’s recent share price gains have pushed the stock up to the price target faster than the analysts could react. Qualcomm, Inc.Holding the seventh spot for revenues among the chip giants, Qualcomm (QCOM – Get Report) posted $16.5 billion in total sales for 2018. The company has shown robust growth year-to-date, with gains of 38%, with a three-month gain of 10.7%. In addition to strong recent momentum, Qualcomm has continued to payout a generous dividend of $2.48 annually. The yield, at 3.14% is more than 50% higher than the average dividend yield in the S&P 500. Qualcomm has had a share of legal ups and downs in recent months. Earlier this year, the company reached a settlement with Apple (AAPL – Get Report) over a patent dispute. As part of the agreement, Apple agreed to pay out a cash settlement of $4.5 billion. In addition, Apple agreed to pay royalties on future use of Qualcomm’s chips. In the FTC v. Qualcomm case, however, the company was handed some bad news – Judge Koh ruled that Qualcomm was violating antitrust laws with its requirement that customer’s sign licensing agreements to use the company’s products. That ruling was stayed by the appellate court in August, giving Qualcomm a reprieve and a chance to prepare new legal arguments.Writing form Canaccord Genuity, 5-star analyst Michael Walkley sees the recent stay as reason for a bullish stance on QCOM. He writes, “The 9th Circuit Court granted a partial stay from Judge Koh’s FTC ruling by placing on hold the provisions requiring Qualcomm to grant patent licenses to rival chip suppliers and end its practice of requiring its chip customers to sign a patent license before purchasing chips.“This stay, along with the recent successful licensing renegotiation with LG Electronics, as evidence Qualcomm’s current licensing business practices could have limited long-term impact from the Judge Koh ruling.”Walkley sets a price target of $87 on QCOM, suggesting a 10% upside to the stock.Like its peers, Qualcomm currently holds a Moderate Buy from the analyst consensus. This is derived from the 6 buys, 9 holds, and 1 sell given the stock in the past 90 days. QCOM shares sell for $78, and, also like its peers, the stock’s recent gains have pushed its share price right to the average price target.Visit TipRanks Analysts’ Top Stocks page, and find out which stock the Street’s top analysts are talking about now.
Should investors consider buying Micron (MU) stock with the chipmaker set to report its quarterly financial results on Thursday, September 26?
Nvidia (NASDAQ:NVDA) stock has seen a nice bump since August. Shares have popped from a low of $148.77 on Aug. 15 to $180.24 at the close Sept. 17. With positive developments in the U.S.-China trade war and improving fundamentals for the GPU space, Nvidia's fortunes may be turning around.Source: michelmond / Shutterstock.com But is there enough left in the tank to send NVDA stock higher? Based on valuation, it seems most catalysts are priced in the stock. Nevertheless, NVDA sells at a discount to GPU rival Advanced Micro Devices (NASDAQ:AMD).So what's the verdict? Let's take a closer look at Nvidia stock, and see why now may not be the time to buy.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Key Developments Driving the Nvidia Stock PriceWeak GPU demand and the U.S.-China trade war. These two factors hammered Nvidia stock. But a turnaround in chip sales and optimism over a trade deal have mitigated these concerns. Improved investor sentiment is driving NVDA stock higher. The question is: Will it last?With regards to GPU demand, Nvidia's sales results for the past quarter show promise. For the quarter ending July 30, revenue rose from $2.2 billion to $2.6 billion quarter-over-quarter. Gaming sales rose 24% from the prior quarter, from $1.1 billion to $1.3 billion. But sales remain down year-over-year. Overall sales were $3.1 billion in the prior year's quarter, including gaming sales of $1.8 billion. Nvidia has a long ways to go before reaching the high water mark set in the prior year. * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars How about the U.S.-China trade war? Investors are optimistic, but corporate America remains bearish. The unpredictability of the trade war could continue to impact Nvidia's business. It could also impact an upcoming acquisition. As InvestorPlace's Tom Taulli wrote on Sept. 12, China could block Nvidia's proposed acquisition of Mellanox (NASDAQ:MLNX). The Mellanox deal is seen as a positive catalyst for NVDA. The deal would bolster Nvidia's data center business, and help it diversify away from GPUs.But what about artificial intelligence? The rise of AI could be Nvidia's saving grace. On Sept. 13, InvestorPlace's Jamie Johnson pointed out how Nvidia's automotive AI business saw sales grow 30% in the past quarter. AI has yet to reach critical mass, but in the next decade could emerge as a major industry. This would give Nvidia stock a clear pathway to growth.However, as seen below, this growth potential is clearly reflected in the valuation of NVDA stock. Does this mean shares are overvalued? Let's see how Nvidia's valuation compares to peers. NVDA Stock Remains OvervaluedDespite declining sales since 2018, Nvidia stock remains richly priced. The company's forward price-to-earnings ratio is 25.5. Nvidia's enterprise value/EBITDA is 40. But shares continue to trade at a discount to rival AMD. AMD stock trades at 28.3 times forward earnings, and has an EV/EBITDA ratio of 67.Does this mean Nvidia stock is undervalued? Possibly, but it could indicate AMD remains overvalued. Both stocks trade at premiums to broad-line chip makers like Intel (NASDAQ:INTC) and Broadcom (NASDAQ:AVGO). Intel's forward P/E is 11.6, and its EV/EBITDA ratio is 7.6. Broadcom trades at a forward P/E of 12.4, and a EV/EBITDA ratio of 14.3.As I have stated before, I do not understand the high premium assigned to GPU makers relative to broad-line chip makers. As seen from the global GPU glut, substantial sales growth is uncertain. Long term, I can easily see both NVDA and AMD trade at valuations similar to INTC and AVGO. Maybe not as cheap as Intel stock, but certainly at similar EV/EBITDA ratios as Broadcom. It's Tough To Predict Nvidia Stock's FutureAll bets are off with Nvidia stock. While the company has seen improvements in its overall business, sales remain down from the prior year. There's light at the end of the tunnel for the trade war, but uncertainty remains. Nvidia next announces results in November. The analyst community sees quarterly sales at around $2.9 billion. China could give their blessing to the Mellanox deal. If so, the deal could close at the end of 2019.So what's the play with Nvidia stock? I have been on the sidelines since July, and shares have traded sideways since. If the company can reach the high water mark set last year, shares should see material improvement. But until then, sideways trading between $150-$200 per share is likely. Continue to stay on the sidelines with Nvidia stock.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars * 5 Stocks to Buy With Great Charts * 5 Goldman Sachs Stocks to Buy with Over 20% Upside Potential The post All Bets Are Off With the Nvidia Stock Rally appeared first on InvestorPlace.
The salary totals are yet another example of the bruising battle Bay Area employers face for talented workers, especially in the tech industry.
Advanced Micro Devices (NASDAQ:AMD) stock is up over 66% in 2019. This is higher than rivals Nvidia (NASDAQ:NVDA) at 36.6% and Intel (NASDAQ:INTC) at 14.1%. AMD stock is also outpacing at least one popular sector exchange-traded fund, the VanEck Vectors Semiconductor ETF (NYSEARCA:SMH) is up about 40%. AMD stock is also besting the S&P 500 index, which is up 20% in 2019.Source: Grzegorz Czapski / Shutterstock.com However, the semiconductor business is notoriously cyclical. Plus, AMD stock has been trading in a tight range for the entire summer. As fall approaches, the smart play may be to place strategic option contracts that will help you take advantage of short-term price movements. Softer Revenue Growth Is Not UnexpectedPrior to the second quarter of 2019, AMD posted soft revenue growth (on a sequential basis) for the prior three quarters. However, on a year-over-year basis, the Q2 results still showed a double-digit revenue decline. Furthermore, analysts suspect that the company will likely face declining revenue due to softness in gaming consoles that could affect its revenue for the rest of 2019.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFor its part, AMD has cut its revenue guidance into the mid-single digits for YOY growth rate. AMD is scheduled to report Q3 earnings on October 29. Analysts are projecting an 8.9% increase in revenue to $1.8 billion. * 7 Momentum Stocks to Buy On the Dip This is not completely unexpected. AMD has not had new products to get investors excited. But that story looks to be changing. New Product Launches Sound LikelyOne of the factors depressing AMD stock has been a product line that is growing long in the tooth. AMD's 400 Series Polaris line of graphics processing units (GPUs) hit the market in 2016. A refreshed 500 Series was introduced in 2017.However, in 2019, rival Nvidia released a competing GPU, the GTX1660 that is helping NVDA rapidly gain market share in the gaming space. A refreshed line of Navi GPU cards, priced competitively at under $250, should help AMD recapture some of this lost share.In the CPU market, the tech publication Techquila reported that AMD has plans to release new 7-nanometer products in the second half of 2019. The first product to launch will be its Ryzen 9 3950X desktop CPU (scheduled for September 30).Then in early October, it plans to launch its third-generation Threadripper CPU line-up (extending to as many as 64 cores). These come on the heels of the Rome EPYS server CPUs in August. These new processors are generating high demand from enterprise and cloud customers (and are potentially stealing market share from Intel). There is Real Growth for AMD Stock Coming in 2020Microsoft (NASDAQ:MSFT) and Sony (NYSE:SNE) are expected to launch their next generation of gaming consoles in late 2020. Pent-up demand from gamers should give the consoles a lift.This sets up well for AMD stock. Wall Street analysts are extremely optimistic about the company's 2020 revenue growth. They expect its revenue to grow more than 24% next year. What's next for AMD stock?Advanced Micro Devices stock is just coming down from its 52-week high of $35.55. And the company's forward price-earnings ratio of just under 29 makes the stock expensive. However, AMD is projecting earnings increases of 37% for 2019 and 68.3% in fiscal 2020 which could account for the elevated ratio.The question for investors is whether the new product launches and higher revenue growth can generate enough momentum to push the AMD stock price higher. Right now, many investors seem to be in "wait and see" mode. That makes some sense. Why buy the stock now if the real growth won't occur until 2020?However, between now and then, there could be a lot of macro-economic catalysts that may give the stock a boost. The Federal Reserve is cutting interest rates. And there may be a breakthrough, or at a least a continued pause in the ongoing trade war with China. And for its part, AMD must post numbers that show the high demand for their servers is not an anomaly.This is where trading options on AMD stock can be an effective trading strategy. Sell puts at a price slightly below the current price and place call slightly above the current price. The puts pay you for buying the stock. In the case of the calls, you can get a weekly or monthly premium.As of this writing, Chris Markoch did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Momentum Stocks to Buy On the Dip * 7 Dow Titans Breaking Higher * 5 Growth Stocks to Sell as Rates Move Higher The post It May be Time to Call an Option on AMD Stock appeared first on InvestorPlace.
AMD (NASDAQ:AMD) received an upgrade from Moody's right before the weekend. This should help reduce the company's debt costs. Later on, it could even help bolster AMD stock.Source: Shutterstock However, while AMD looks like a solid buy on the surface, issues have appeared that should create some doubts. Unless and until these issues resolve themselves, investors should hold out for a discount before buying. The Moody's Upgrade HelpsMoody's took AMD's debt rating to Ba2, up from the previous Ba3. In raising the rating for the AMD corporate family, Moody's cited the company's "design wins" and gains in market share as reasons for the improved performance outlook. AMD stock rose by almost 1.6% to $30.48 per share following the news.InvestorPlace - Stock Market News, Stock Advice & Trading TipsI cannot argue with Moody's rationale on the improved debt rating. Long known as the lower-cost, less-regarded semi manufacturer, analysts should now regard AMD as a full-fledged player in the semi industry. However, the question on the minds of traders is whether that will improve the performance of the stock. * 7 Tech Stocks You Should Avoid Now On the surface, I see few reasons not to buy AMD. The forward price-to-earnings (PE) ratio of just under 29 is not cheap. However, projected earnings increases of 37% this year and 68.3% in fiscal 2020 make the slightly elevated PE ratio worthwhile. Heed AMD's rangeHowever, markets often run up against stubborn price limits, and this has happened to Advanced Micro Devices stock. As I have stated in previous articles, the $34 price ceiling continues to plague AMD. This limit has left it range-bound and the current price of just over $30 per share places the equity in the middle of the range first established in May.Will this range break eventually? In all likelihood, yes. Lisa Su continues to do an outstanding job in taking market leads over Intel (NASDAQ:INTC) and keeping it competitive on the graphics side against Nvidia (NASDAQ:NVDA). That will bolster profit growth and eventually push AMD stock through the price ceiling. AMD Stock Is More Than Just RangeboundHowever, the baffling aspects of AMD stock go well beyond a stubborn price ceiling. Our own Will Ashworth found another issue, namely the lack of insider buying.Over the last year, not a single insider has purchased any Advanced Micro Devices stock. Moreover, insiders sold over 39 million AMD shares during the previous 12 months. That comes in far ahead of the roughly 2.27 million shares sold by Intel insiders and the 491,317 shares of Nvidia sold.InvestorPlace feature writer James Brumley believes that AMD will more than likely move with the market. Much like AMD, the overall market seems to trade in a range as well. The S&P 500 continues to flirt with record highs despite a trade war and a lengthy economic expansion.Brumley also made a point in a previous article about the 7nm Rome processor not living up to the performance expectation. Like Boeing (NYSE:BA) and the 737 MAX, AMD may have caused performance issues by rushing its 7nm processor to market.Many reports have surfaced about Rome not performing as advertised. While I do not think this stops the AMD recovery story, it may make some investors wary of AMD for now. The Bottom Line on AMD StockAMD is not as great a buy as it may appear. When comparing both the Moody's upgrade and the forward PE ratio to the expected profit growth rate, Advanced Micro Devices stock looks like a definite buy on the surface.However, it seems concerning that insiders have not bought into the story. Moreover, doubts about the performance of 7nm Rome could place further pressure on the stock. As a result, traders have seen the same thing happen over the last year--AMD stock reaches the $34 per share range and then sells off.Furthermore, it has remained below the 50-day moving average since August 13th. Unless it breaks out of the current range, investors should only consider buying near the $26 per share level.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 Recession-Resistant Services Stocks to Buy * 7 Hot Penny Stocks to Consider Now * 7 Tech Stocks You Should Avoid Now The post Insiders Are Laying off AMD Stock and So Should You appeared first on InvestorPlace.
NVIDIA stock has fallen more than 1% as of 10:21 AM ET. The stock fell after DZ Bank analyst Ingo Wermann downgraded it to a “sell” from a “hold” rating.
America's nearly two-year-old trade war with China, as well as salvos with Europe and Mexico, has battered a wide swath of stocks. President Donald Trump's tariffs (and retaliatory duties) have weighed on companies in various forms, such as higher input costs and unsold inventory.The pinch is being felt on a wide scale. Global growth was already slowing, though market analysts and foreign leaders alike think the trade war is making things worse. Here at home, manufacturing is thinning, reflecting waning demand. ISM's purchasing managers' index reading for August was just 49.1. Anything under 50 signals a contraction in activity, meaning August was the first month in three years that American manufacturing receded.The result has been a pullback in numerous stocks. Buying these tariff-assisted dips is risky because some of the companies face headwinds outside of trade uncertainty. But a resolution between the U.S. and China would bring much-needed relief to many companies, and perhaps a bounceback in their shares. You can see the potential every time the market rallies on the smallest of optimistic hints."(These) value stocks will deliver attractive returns after the tariff resolution, like a coiled spring that pops up," says Michael Underhill, chief investment officer of Capital Innovations in Pewaukee, Wisconsin. He thinks the market could continue to move higher heading into October's negotiations. If more concrete progress is made, a sustained rally will continue, he says.Here, then, are 14 stocks that have already felt the burn from President Donald Trump's tariffs (and retaliatory taxes). Some represent potential should Washington reel in its tariff threats, but they may continue to suffer any time trade tensions reignite. And a few are trying to pivot their businesses out of harm's way. SEE ALSO: 25 Dividend Stocks That Analysts Love the Most
Moody's Investors Service ("Moody's") upgraded Advanced Micro Devices, Inc.'s ("AMD") corporate family rating to Ba2 from Ba3 and senior unsecured rating to Ba3 from B1. The speculative grade liquidity rating of SGL-1 remains unchanged.
The trade war between the U.S. and China has been hard on many U.S. companies but it has been especially difficult for the semiconductor industry. Chipmakers like Nvidia (NASDAQ:NVDA) rely heavily on the Chinese market so the trade war created additional uncertainty for these companies -- and Nvidia stock. Source: Pe3k / Shutterstock.com In short, Nvidia stock has been all over the place over the past year. 2018 was a breakout year for the company and a year ago, NVDA was nearing $300 per share. The stock is down 32% since then and it started 2019 at a new 52-week low of $124.46. However, the overall sentiment from analysts seems to be mostly positive when it comes to Nvidia. According to TipRanks, Nvidia stock is considered a moderate buy. 20 analysts gave the company a buy rating and the average price target is $189.27.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Discount Retail Stocks to Buy for a Recession The trade war will continue to cause headwinds for NVDA and no one knows when that situation will improve. But if you take a long-term perspective when it comes to NVDA stock, there are signs that the chipmaker can turn things around. Nvidia Stock is Recovering From Crypto-Mining CrashNvidia's rocky year can't entirely be blamed on trade war problems. The chipmaker has been recovering from the 2018 crypto-mining crash that left it with an excess of inventory and declining sales. Of all the companies affected, the crash hit Nvidia the hardest, in part because it focuses solely on graphics processing units (GPUs). The company's GPUs are used for competitive gaming, data centers, and the automotive industry. Its competitor, Advanced Micro Devices (NASDAQ:AMD) also sells CPUs so the crash didn't affect it in the same way.The most recent earnings report showed that the company's fundamentals are starting to improve. Nvidia experienced growth across all of its segments. And while revenue still isn't back to where it was a year ago, this signals that the company is beginning to turn things around. NVDA's Automotive Business Shows PromiseFor investors, one of the bright spots of Nvidia's most recent earnings report is its growing automotive segment. Its revenue grew by over 30% during the most recent quarter. This segment is still just a small percentage of the company's total business but there is significant potential there.Self-driving vehicles are inevitable and Nvidia's GPU chips can power these systems. Of course, there's still a lot of work to do before self-driving cars are ready for the road. But companies are investing a lot of money in this industry so it provides an incredible long-term opportunity for Nvidia. Nvidia's Gaming Strength is ReturningNvidia's real strength is in its gaming segment and it's where the company makes most of its revenue. Last year, the company released an updated version of its graphics cards which used a technology known as ray tracing. This technology improves the images in online gaming.Nvidia's gaming revenue is slowly starting to bounce back, though it's still down from a year earlier. This should continue to improve during the second half of the year as the holidays approach. All in all, the company isn't out of the woods just yet and the current market volatility could cause Nvidia stock to fall again. But the company has many opportunities it can capitalize on. This could make it a good long-term growth stock.As of this writing, Jamie Johnson did not hold a position in any of the aforementioned stocks. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Big IPO Stocks From 2019 to Watch * 7 Discount Retail Stocks to Buy for a Recession * 7 Stocks to Buy Benefiting From Millennial Money The post 3 Reasons the Nvidia Stock Comeback Story Will Continue appeared first on InvestorPlace.
Is now the time to invest in Nvidia (NASDAQ:NVDA)? Nvidia stock has been on a bit of a run this month, up 12% since September 3. NVDA has gained an impressive 38% so far in 2019 -- yet remains far from the $281 highs it hit last October.Source: Hairem / Shutterstock.com The majority of analysts have it as a buy. However, despite their bullish attitude, at its current $184 level, there is little upside to buying now, when those same analysts have an average 12-month price target for NVDA of $189.27.Should you buy Nvidia stock at this point? Does it have the potential to continue growing, or has NVDA pretty much run out of steam?InvestorPlace - Stock Market News, Stock Advice & Trading Tips AI Is a Future Nvidia Stock CatalystThere is much to be said about NVDA's long term potential when it comes to AI. The company has been investing heavily in this area, looking to machine learning and autonomous vehicles as future growth areas. InvestorPlace's Chris Lau has a good read on how AI and self-driving car tech could pay off for Nvidia stock in the long term. * 10 Battered Tech Stocks to Buy Now But I want to focus on gaming because that is the area that is going to hold Nvidia back over the next year. Nvidia Missed the Gaming Console Ramp-UpMicrosoft (NASDAQ:MSFT) and Sony (NYSE:SNE) are releasing next-generation Xbox and Playstation game consoles in 2020. That is going to kick off a huge upgrade cycle, but it won't benefit NVDA. Advanced Micro Devices (NASDAQ:AMD) will be powering both of those consoles.The Nintendo Switch uses custom Nvidia silicon, but with the Switch still mid-cycle in its lifespan, an all-new version isn't expected any time soon. Nvidia stock is not going to see the sort of upside from Switch sales that it did when Nintendo's console first launched.Nvidia is also left in the cold on the most prominent experiment in video game streaming. Alphabet's (NASDAQ:GOOG, NASDAQ:GOOGL) Google is launching its Stadia cloud game streaming service in November. Stadia is a double-blow against Nvidia.Subscribers will be able to play AAA PC video game titles on a wide range of devices without the need for a powerful gaming PC equipped with a graphics card. Instead, cloud data centers will do the heaving lifting, with custom AMD GPUs delivering 4K graphics at 60 fps (with 8k and 120 fps on the horizon).If Google's Stadia is a success, AMD will get orders for more of those custom GPUs. Nvidia will likely see the demand for graphics cards to power gaming PCs take a hit. Putting Together the Pieces for Nvidia StockIf you look at the two factors spiked out here, the somewhat puzzling analyst positions make sense. Why would do many analysts have NVDA rated as a Buy, yet have 12-month price target that has only around 3% upside? The next year doesn't have a lot of revenue growth potential for Nvidia. It's largely missing out on the next-generation game console cycle, it's missing out on the biggest cloud gaming initiative, and it could see its graphics card sales take a hit should cloud gaming take off.At the same time, its investment in AI and autonomous driving technology is seen as likely to pay off in a big way, but that payday is further in the future. Putting all the pieces together, it seems probable that NVDA stock is approaching a ceiling. Buying now, you are unlikely to see major gains over the next year. But if you intend to hold onto it -- with AI ramping up and autonomous cars inching closer to mainstream -- that NVDA investment will pay off in the long term. As of this writing, Brad Moon did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Big IPO Stocks From 2019 to Watch * 7 Discount Retail Stocks to Buy for a Recession * 7 Stocks to Buy Benefiting From Millennial Money The post Keep Nvidia Stock If You Have It, Just Don't Jump in Now appeared first on InvestorPlace.
Shares of computer and gaming-graphics chipmaker Nvidia slip on Friday after the company receives a downgrade to sell from hold from DZ Bank.
Terms like buy range, extended and shakeout may sound foreign to new investors.But they can help you know when to buy stocks correctly and maximize gains.
In the nearly-eight years Ginni Rometty has served as CEO of International Business Machines (NYSE:IBM), IBM stock has lost 23% of its value. From the shares' peak in early 2013, while her predecessor's initiatives were still in motion, the IBM stock price has fallen 33%.Source: JHVEPhoto / Shutterstock.com The performance of IBM stock, of course, merely reflects the company's financial performance. Its revenue peaked in 2011, and its profits peaked in the following year. Although IBM has managed to occasionally grow its top and bottom lines, they have continued to decline in the longer term.There's one underlying reason why IBM has failed to grow, causing International Business Machines stock to struggle, in an environment where seemingly every other technology giant has managed to do so. That is, the company is offering the wrong products at the wrong time at the wrong price.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Battered Tech Stocks to Buy Now The more nuanced answer, however, is that Rometty, its CEO, isn't getting the job done. Missed OpportunitiesGinni Rometty is a well-polished executive who says all the right things, impresses in public forums, and has avoided the type of scandals that generally lead to CEOs being removed from their position.She's also been a loyal IBM employee, starting with the company in 1981 as a ground-level systems analyst. No one can deny she's earned her way to the company's top spot, having done many of the jobs other IBM employees are doing now.But she's been calling the shots for eight years. That's an eight-year stretch during which Amazon.com (NASDAQ:AMZN) became the world's cloud-computing leader … a business the e-commerce giant arguably had no business getting into. During the same eight years, Nvidia (NASDAQ:NVDA) became a go-to provider of artificial intelligence hardware, a business it practically stumbled into, at first.In both sectors, IBM could have made a big dent. Instead, it put out more more-of-the-same mainframes, and a Watson AI platform that hasn't always been impressive. Indeed, Watson has been frequently criticized as not being "real" artificial intelligence.Rometty didn't program the AI algorithms that Watson utilizes, nor did she assemble the hardware that runs it.She absolutely could have pushed the company in different directions, though. International Business Machines Is Out of TouchThe balance between the experience that tends to come with age and the understanding of "new" that tends to come with youth is a tricky one. Both are needed in the workplace, though how much of each is needed can vary as time passes.Perhaps those critics who argue the 62-year-old Rometty isn't quite plugged into the pulse of the tech world have a valid point.Meanwhile,asWill Ashworth pointed out last month, the average age of IBM's board members is 64.The internet didn't even become popularized until more than a decade after they graduated from college. Cloud computing didn't proliferate until more than a couple of decades after they graduated from college. Smartphones weren't widely popular until nearly three decades after they got out of college.That's not to suggest that anyone over the age of 30 can't learn about newer technologies. They can, and do.But the internet and cloud computing are now the centerpieces of how we live our lives, centerpieces that most people under the age of 30 don't remember living without. It's a cultural component that a group of people in their 60s can never fully understand.Consequently, it's likely this group of older adults -- the Board of Directors and Rometty -- are guilty of collectively misunderstanding the tech world and today's companies, and then supporting one another's misunderstandings.There's also a decent-sized chance that Rometty's 38 years with IBM are more of a liability than a benefit. After almost four decades of absorbing the same corporate culture, bad habits and a misguided vision of the future become extremely ingrained.Whatever the case, the argument that IBM's leadership isn't getting the job done holds water. The Bottom Line on IBM StockThat argument is just food for thought for the owners of IBM stock, and it's certainly not the first time the idea has been floated. It's worth floating again, however, because the market seems to perpetually avoid a serious discussion of Rometty's tepid results.Or, voiced in different terms, IBM may be doing the same thing over and over again and expecting a different result, which is, of course, the unofficial definition of insanity .On Oct. 25, Rometty will celebrate the eighth anniversary of her hiring as CEO. Perhaps that milestone will prompt some scrutiny and pressure from the key owners of International Business Machines stock .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 Battered Tech Stocks to Buy Now * 7 Strong-Buy Stocks Hedge Funds Are Buying Now * The 7 Best Penny Stocks to Buy The post IBM Stock Can't Take a Ninth Year of More-of-the-Same appeared first on InvestorPlace.
Yesterday, President Trump tweeted that he would delay the upcoming hike on the China tariffs. US semiconductor companies are sensitive to trade wars.
Zumiez, Vista Outdoor, Nvidia, Intel and Tokyo Electron highlighted as Zacks Bull and Bear of the Day
Advanced Micro Devices (NASDAQ:AMD) is having a great year in the markets with AMD stock up 64% year to date through September 10. As a result, AMD bulls are probably calling for $40. Source: JHVEPhoto / Shutterstock.com However, if AMD insider buying, or the lack thereof, is a sign of a coming correction, you might want to reconsider buying above $30. Here's why. Insider Selling Far GreaterA quick look at insider buying and selling of Advanced Micro Devices stock shows that there have been no insider buys on the open market over the past three and 12 months. InvestorPlace - Stock Market News, Stock Advice & Trading TipsMeanwhile, there have been 18 sells over the past three months for a total of 1.66 million shares. Over the past 12 months, there have been 55 sells on the open market for a total of 39.04 million shares. * 10 Stocks to Sell in Market-Cursed September There are many reasons why insiders sell a stock. There's only one reason they buy, because it's cheap. The fact that insiders haven't bought one share of AMD stock on the open market should scare you, especially when you compare it to the insider buying and selling at its peers. Insider Buying and Selling - Past 12 MonthsCompany of Buys of SellsShares BoughtShares SoldAMD 0 55 0 39,044,980 Intel (NASDAQ:INTC) 5 106 32,159 491,317 Nvidia (NASDAQ:NVDA) 26 50 1,642,184 2,266,839 Source: Nasdaq.comI suppose you could argue that because the AMD stock price is the cheapest of the three stocks by dollar value, an insider would have to sell more shares to obtain the same amount of cash from a sale.However, if we use the midpoint between the three stocks' highs and lows over the past 52 weeks, you'll see that AMD insiders sold a lot more stock by dollar value. AMD midpoint = $25.86 * 39.04 million shares = $1.0 billionIntel midpoint = $50.98 * 491,317 shares = $25.0 million Nvidia midpoint = $208.61 * 2.27 million shares = $472.9 million Nvidia Insiders Did a Lot of BuyingThe most interesting observation from the above data is that Nvidia insiders didn't sell nearly as much stock over the past 12 months as AMD insiders did when you factor in the buying. Based on Nvidia's midpoint for both buying and selling, Nvidia insiders on a net basis only sold $130.3 million of its stock; Intel insiders sold $23.4 million of its stock on a net basis and AMD insiders sold a whopping $1 billion. Any way you slice it, AMD insiders have been cashing in on their stock's massive gains in 2019. But why no buying on the open market? Surely, if AMD stock is worth $40, insiders would be buying?Northland Securities analyst Gus Richard has an outperform rating on AMD and a 12-month price target of $36. Of the 37 analysts covering AMD stock, only 13 have an overweight or buy rating with four either rating it underweight or sell. The vast majority (20) rate it a hold. As for a target price, the high is $44, the low is $8, and the average is $32.63. Perhaps that's why insiders are doing zero buying and lots of selling. Should You Buy AMD Stock?If you believe that insider buying is a sign that a stock is selling below its intrinsic value, as I do, you can't possibly think AMD is a value above $30. Without any new catalysts on the horizon, you might want to wait until it's trading closer to its midpoint around $25. The insiders probably will. At the time of this writing Will Ashworth 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 in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post The Lack of Insiders Buying AMD Stock Should Scare You appeared first on InvestorPlace.
Nvidia (NASDAQ:NVDA) stock has been on a nice bull run, going from $154 in early August to $183. But then again, there has been a thawing of the U.S.-China trade war. In the meantime, the overall markets have been marching upward, coming to within a few percentage points of an all-time high.Source: Pe3k / Shutterstock.com It's also encouraging for NVDA stock that the AI (Artificial Intelligence) revolution remains particularly strong. Bu it seems as if just about all tech companies have some type of AI strategy! And even more importantly, the mega tech operators like Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) and Facebook (NASDAQ:FB) are investing billions in the category.But even with this secular trend, there are still nagging issues with Nvidia stock. Let's face it, as we've seen over the past few years, there have been several rallies that have quickly petered out. And I think that this could happen again.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Healthcare Stocks to Buy Despite the Headlines So let's take a look at three things to worry about Nvidia stock: Nvidia Stock and TradeOK… it seems like the concerns about the trade war have been overwrought. After all, hans't NVDA been able to hold up fairly well?This is true. The company has a top-notch management team and also has the benefit of global scale.But even though the U.S. and China have been showing signs of cooperation, an agreement still looks dicey. As a result, there is likely to be continued uncertainty, which could dampen the demand for chips but also lead to disruption of supply chains.There is also the wildcard about the proposed acquisition of Mellanox (NASDAQ:MLNX). For the most part, the deal looks spot-on as it will help bolster the critical data center market.Yet the problem is that the transaction may ultimately be blocked. Why? The reason is that China may want to retaliate against actions the U.S. has taken against companies like Huawei. Keep in mind that the bid-ask spread is quite large on the pricing for the MLNX deal. And besides, China has already shown its willingness to fight back, as seen with the blocking of Qualcomm's (NASDAQ:QCOM) attempted acquisition of NXP Semiconductors (NASDAQ:NXPI). NVDA's CompetitionUntil recently, NVDA did not have to really worry about competition. The company was the pioneer of GPUs (Graphics Processing Units) and quickly dominated the gaming market. NVDA also was smart to leverage this technology into other categories like the data center and AI.But nowadays other chip companies have been catching up. Just look at Advanced Micro Devices (NASDAQ:AMD). Once a marginal player -- and near bankruptcy -- the company has pulled off an impressive turnaround. CEO Lisa Su has focused obsessively on pushing innovation, such as with the launch of the RX chips for gaming and Epic systems for the data center.Interestingly enough, it is not even traditional chip companies that have put pressure on NVDA. Companies like GOOGL, MSFT and Amazon (NASDAQ:AMZN) have been developing their own.Finally, there are more startups emerging that are gunning for the AI chip market, such as Graphcore and Cerebras Systems. NVDA Stock ValuationNvidia stock is far from cheap. Consider that the trailing price-to-earnings ratio is about 41x.Now it's true that Nvidia stock should fetch a premium since the company is a dominant player in several strategic markets. But the multiple is still on the high-side when compared to the growth rate, which has been on the decline (at least on a year-over-year basis). * 10 Stocks to Sell in Market-Cursed September Wall Street is also a bit skeptical, with the average price target at $186. In other words, this implies only about 2% upside from current levels.Tom Taulli is the author of the 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 in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post The NVDA Stock Rally May Soon Come to an End appeared first on InvestorPlace.
Investing.com - U.S. futures were higher on Thursday after President Donald Trump said he will postpone increased tariffs on Chinese imports by two weeks.