56.52 -0.07 (-0.12%)
After hours: 7:51PM EST
|Bid||56.58 x 4000|
|Ask||56.65 x 3000|
|Day's Range||56.44 - 56.83|
|52 Week Range||42.86 - 59.59|
|Beta (3Y Monthly)||0.91|
|PE Ratio (TTM)||13.25|
|Earnings Date||Jan 22, 2020 - Jan 27, 2020|
|Forward Dividend & Yield||1.26 (2.23%)|
|1y Target Est||56.69|
Today's devices have been secured against innumerable software attacks, but a new exploit called Plundervolt uses distinctly physical means to compromise a chip's security. The Plundervolt attack does just this, using the hidden registers to very slightly change the voltage going to the chip at the exact moment that the secure enclave is executing an important task.
In addition to making strong inroads in the desktop CPU market, AMD is also making its presence felt in the sever processor market, according to comments made by Ruth Cotter, AMD's senior vice president of worldwide marketing, at the UBS Global Tech conference, Wccftech reported. AMD first introduced the EPYC server processors in June 2017, based on the Zen microarchitecture. AMD has a 7% share of the server processor market, a far cry from the 26% share it held in mid-2006 following the launch of its Opteron processors, according to Wccftech.
Intel stock has been battered by product missteps, rising competition and a downswing in chip demand. Here is what the fundamentals and technicals say about the chipmaker's shares.
(Bloomberg) -- It’s not really a surprise that white and Asian men dominate the top pay tiers among Intel’s U.S. workforce. That’s been true in the tech industry for years. What’s unusual is the excruciating level of detail about pay disparity the chipmaker is releasing Tuesday to the public—information it could have kept secret.In addition to its annual update on the outlook for women and people of color at the company, Intel on Tuesday released the results of a new report it sent to the U.S. Equal Employment Opportunity Commission that gives unprecedented pay, race and gender data for about 51,000 U.S. workers. Intel is the first company to release the otherwise private data.The results are not flattering. Among 52 top executives at Intel, who all earn more than $208,000—the top pay band the EEOC tracks—29 are white men, 11 are Asian men and 8 are white women. The remaining tally is 1 each for Asian women, Hispanic women, black women and black men, with no Hispanic men among executives in that top tier.The ratio was similarly skewed across manager, professional and technician job classifications, with white and Asian men dominating top pay groups and women and people of color clustered in the lower bands. One in four white men at Intel are in the top salary tier, earning at least $208,000, a higher share than any other group. Rates are far lower for women and underrepresented minorities; less than 10% of black employees are top earners. “It’s difficult to really fix what you aren’t being transparent about,” said Barbara Whye, Intel’s chief diversity and inclusion officer and a vice president in human resources. The chipmaker is making itself “very vulnerable,” she says, to “do the right things,” and she hopes her peers will follow and share pay information, too. “These are industry-wide problems,” Whye said. “They are going to require industry-wide solutions to resolve them.” So far, no other companies have said they’ll do the same. Intel joins a small but growing number of companies that have released gender and racial pay data, often under pressure from investors. The transparency may be laudable, but it is often overshadowed by what is revealed. Annual diversity reports from the biggest tech companies from the last half decade have shown scant progress in advancing the numbers of under-represented workers.Companies that choose to release this kind of information risk backlash. Citigroup this year faced criticism after it voluntarily released median pay data that showed women at the bank earn 29% less than men do.Intel’s report finds that within job types—not just at the top—white men dominate the highest salary band. Two-thirds of employees fall into a job group called “professionals,” which includes includes non-managerial office workers and programmers. Nearly all earn at least $80,000 per year, but white and Asian men have the highest salaries. Black, Hispanic and other minorities are overrepresented in the bottom half of the pay ranges. Even if the numbers look bad, companies will ultimately benefit more from leading on disclosure than they would from dragging their heels, said Natasha Lamb, managing partner at Arjuna Capital, which pressures companies to disclose gender pay data. The point is not to beat up on organizations for telling the truth, she said. “It's much more important to have an accurate reflection of reality than to glaze over the simple truth,” she said. “These companies are not as diverse and equal as they could be.”In 2015, Intel set a goal to have women make up at least 26% of its workforce by 2020. The company met that last year and is working to increase the percentage of women among top executives now to 26%, too, Whye said. Intel says representation among its total U.S. workforce and for technical employees has improved—underrepresented workers make up 15.8% of the company up from 14.6% last year. Women as a percentage of the workforce fell slightly to 26.5% from 26.8%.Intel announced in January that it had met its goal of equal pay for men and women who do the same work. This EEOC data does not measure that. Overrepresentation of white men in the highest-paying jobs contributes to the nation’s wage gap: American women earn 20% less than men do, and the gap is even wider for women of color. Intel’s disclosure shows that these disparities can’t be fixed simply by raising the salaries of women and minorities. Whye said the company’s task is to help underrepresented groups get promoted into more lucrative roles and keep them there. The data provided to the EEOC covered 2017 and 2018 and was collected from nearly all U.S. companies for the first time this fall under an initiative started by President Barack Obama. By law, the forms stay private unless a company makes them public. This could be the only time the EEOC collects worker pay broken down by race, sex and ethnicity, making Intel’s disclosure a unique window into company compensation, and how it results in wage gaps. The agency has been soliciting the data since July and could continue to do so until January under a federal judge’s order. But the EEOC has said it won’t pursue future collections in this form. In the U.K. where companies are required to publicly report wage gaps between male and female workers, the disclosures have shown the benefits and limits of transparency, said Harini Iyengar, a lawyer who advocates for equal pay in Britain. “A lot of members of the public who don't pay an interest generally in labor market issues are quite shocked at the scale of the pay disparity,” she said. “So that's been very positive because people are genuinely shocked.” But so far the nationwide initiative has not resulted in measurable change, she said: “What I'm seeing is collective hand-wringing about, ‘Oh no, this is not good enough. But look everyone else in our industry sectors is in the same boat. So that's all right then.’” (Updates third paragraph with context about highest paid Hispanic executives. )\--With assistance from Lucy Meakin and Paige Smith.To contact the authors of this story: Jeff Green in Southfield at email@example.comHannah Recht in New York at firstname.lastname@example.orgTo contact the editor responsible for this story: Philip Gray at email@example.com, Rebecca GreenfieldFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
A key former Apple chip executive and the Santa Clara company he founded this year are at the center of an acrimonious legal dispute.
Chip giant Intel is dealing with challenges of current chip shortages and increased competition to its dominant position in PC and servers, but its researchers have their minds fully on the future. A team within Intel Labs announced a new cryogenic control chip — named Horse Ridge — that is intended to boost the development of quantum computing systems. Quantum computers are a new way of computing that relies on properties of quantum mechanics that enable systems to crunch calculations quicker than the most advanced supercomputers.
Juniper Networks Inc. said Monday it has appointed Raj Yavatkar as chief technology officer with a start date of later this month. Yavatkar was in charge of developing network virtualization infrastructure and products for cloud networking at Google , Juniper said in a statement. The executive has also done stints at VMWare Inc. and Intel Corp. . Yavatkar will replace Bikash Koley, who resigned in November, according to a regulatory filing. Juniper shares were down 1% Monday and have fallen 7.4% in 2019, while the S&P 500 has gained 25%.
Intel Corp. unveiled a chip Monday meant to speed the development of commercially viable quantum computers. Code named "Horse Ridge," the cryogenic control chip is meant to control multiple quantum bits, or qubits, which must be maintained at a few degrees above absolute zero. Unlike traditional bits, which take on a value of either "0" or "1," qubits are considered to be able to exist in multiple states simultaneously in a superimposed quantum state, allowing for more complex calculations. So far, quantum computing has been demonstrated in experimental conditions. "While there has been a lot of emphasis on the qubits themselves, the ability to control many qubits at the same time had been a challenge for the industry," said Jim Clarke, director of quantum hardware at Intel. "Intel recognized that quantum controls were an essential piece of the puzzle we needed to solve in order to develop a large-scale commercial quantum system. That's why we are investing in quantum error correction and controls. With Horse Ridge, Intel has developed a scalable control system that will allow us to significantly speed up testing and realize the potential of quantum computing."
Oracle's (ORCL) fiscal second-quarter results are expected to reflect solid adoption of cloud-based services and latest Autonomous Database.
Intel Corp on Monday announced a chip that it hopes will change that. Quantum computers remain years away from everyday use but have drawn the interest of major technology companies. In October, researchers at Alphabet Inc's Google said they had created a machine that can outpace conventional computers.
The Zacks Analyst Blog Highlights: Microsoft, United Technologies, Procter & Gamble, Walmart and Intel
Intel Labs unveils a new cryogenic control chip. "Horse Ridge" will speed development of full-stack quantum computing systems.
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. The Chinese government is taking further steps to remove foreign technology from state agencies and other organizations, a clear sign of determination for more independence amid escalating tensions with the U.S.Beijing will likely replace as many as 20 million computers at government agencies with domestic products over the next three years, according to research from China Securities. More than 100 trial projects for domestic products were completed in July, the brokerage firm said. The Financial Times newspaper said the Communist Party’s Central Office earlier this year ordered state offices and public institutions to shift away from foreign hardware and software.The government under President Xi Jinping has been trying for years to replace technologies from abroad, and particularly from the U.S. Bloomberg News reported in 2014 that Beijing was aiming to purge most foreign technology from its banks, the military, government agencies and state-owned enterprises by 2020. The country’s Made in China 2025 plan also set out specific goals for technology independence, although the policy has been de-emphasized after contributing to trade war tensions.U.S. President Donald Trump’s aggressive policies against China and its leading companies have given the effort renewed urgency. His administration banned U.S. companies from doing business with Huawei Technologies Co. this year and blacklisted other Chinese firms.“The trade war has exposed various areas of Chinese economic weakness, which Beijing seems determined to rectify,” said Brock Silvers, managing director of Adamas Asset Management. “If the decision pushes Trump to finally come down hard with a more forceful ban of Chinese tech, however, China may one day regret having gone so public with its policy so soon.”While the current push is narrow in scope, it is designed as part of the broad, long-standing effort to decrease China’s reliance on foreign technologies and boost its domestic industry. The goal is to substitute 30% of hardware in state agencies next year, 50% in 2021 and 20% in 2022, China Securities estimated, based on government requests and clients’ budgets.The research, from September, detailed Beijing’s goals. The FT reported the number of computers to be replaced could reach 30 million, attributing the figures to China Securities. The newspaper said the goal is to use “secure and controllable” technology as part of the country’s Cyber Security Law passed in 2017.Starting next year, key industries such as finance, energy and telecom will test more domestic products in trials that may last years, the firm said. Chinese banks are supposed to shift from International Business Machines Corp. and Oracle Corp. to more diversified X86 architecture suppliers and then eventually to fully made-in-China hardware. China has decided to adopt ARM architecture for its domestic hardware, China Securities said.“The China-U.S. trade war could also help to breed a new market for home-made products,” China Securities analyst Shi Zerui wrote.Still, Beijing’s push has proven difficult because its domestic industry hasn’t yet shown itself capable of matching foreign technologies in certain sectors. Particularly hard to replace, for example, are semiconductors from suppliers like Intel Corp. and Nvidia Corp., as well as software from Microsoft Corp. and Apple Inc.“While large suppliers such as Microsoft and IBM are undoubtedly worried, many high-end components, like chipsets, can’t be easily replaced,” Silvers said.\--With assistance from Debby Wu.To contact Bloomberg News staff for this story: Gao Yuan in Beijing at firstname.lastname@example.orgTo contact the editors responsible for this story: Peter Elstrom at email@example.com, Vlad SavovFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Benzinga has examined the prospects for many investor favorite stocks over the past week. Bullish calls included e-commerce, electric vehicle and semiconductor leaders. Bearish calls included video streaming giant and biotech giants.
If TSMC makes good on its latest promise, it could hold onto its recently-won chip manufacturing lead for some time.
AMD's share value is up 1,330% since Lisa Su took over as president and CEO in late 2014. Now, a chip shortage at rival Intel is providing more opportunity for growth. So why are some Wall Street analysts down on AMD's stock market prospects?
The stock market is hitting new all-time highs. With it, many of investors' favorite stocks are becoming rather expensive. There are certainly fewer cheap value stocks today than there were last December, that's for sure.But don't despair. The rise in the S&P 500 and other stock market indexes hasn't caused all stocks to rise uniformly. Many companies have missed out on the rally. Some of these value stocks are held back by headline news, such as the trade war. Others of these value stocks are overlooked for more subtle reasons.Regardless, it's time to start sleuthing out some of the market's best holiday deals before the new year kicks off. Here are seven value stocks that need to be on your radar now.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Value Stocks to Buy: Intel (INTC)Source: Sundry Photography / Shutterstock.com Like several of the companies on this list, Intel (NASDAQ:INTC) is currently dogged by trade war concerns. The lack of certainty around the future of U.S.-China business relations puts a crimp on semiconductor spending. This has caused INTC stock to stall out just below the key $60 resistance level yet again, despite sharply improving operating metrics in recent quarters.Even as Intel stock has moved higher in recent years, the price-to-earnings ratio has failed to expand to any meaningful degree. Now, at $56 per share, Intel sells for just 12 times forward earnings. Intel's earnings, you should remember, are up from less than $2.50 per share in recent years to more than $4 per share today. Yet the market is still pricing Intel as though it were a little-to-no growth business.This idea that Intel is just a stagnant PC chip business really needs to be retired. The company has heavily invested in all sorts of new growth avenues to move beyond its legacy cash cow. Intel's strides in autonomous vehicles are particularly impressive. Yet, it still sells at a bargain-bin price. All the better for investors buying Intel stock today, however. Intel pays a healthy dividend and has bought back more than 1 billion shares of INTC stock over the course of this decade. * 7 Hot Stocks for 2020's Big Trends Sooner or later, the market will catch on to the huge earnings growth and capital return story that Intel is offering its shareholders. Wells Fargo (WFC)Source: Kristi Blokhin / Shutterstock.com Beloved by Warren Buffett and known for its sterling reputation, Wells Fargo (NYSE:WFC) used to be the cream of the banking crop. Then the scandal headlines and customer lawsuits started hitting and Wells Fargo's reputation went from outstanding to infamous virtually overnight.With it, so did Wells Fargo's valuation. Despite a roaring stock market in general and earnings growth at Wells Fargo over the past five years, WFC stock has gone absolutely nowhere. Five years ago in December, WFC stock sold for $55 per share, now it is at $54. In that time, it's gone from being highly priced to being a deep value stock.Why is it time to forgive WFC for its mistakes and buy into the story today? For one, all the old management has been cleaned out. The company has gotten rid of those with ties to the scandals and brought in highly respected former Visa (NYSE:V) CEO Charles Scharf. Two, the company is set for massive earnings growth in coming years. It is buying back 10% of its stock annually, which boosts earnings per share.Plus, Wells Fargo has billions in extra legal and compliance costs right now related to the bad customer practices of yesteryear. As those costs wind down going forward, profits will surge. Even assuming flat revenues due to the difficult interest rate environment, Wells Fargo should be able to get to $6 of EPS over the next two years, which would lead to 35% upside for the stock assuming a reasonable 12x-13x P/E ratio. Suncor (SU)Source: Kodda / Shutterstock.com Most investors hate energy stocks right now. It's not hard to see why; oil prices crashed in 2014 and have failed to meaningfully recover since then. Meanwhile natural gas has been getting more and more oversupplied with every passing year. Energy prices have been in steady retreat, so the industry has faced a calamitous downturn. Smaller exploration and production companies have been going bankrupt in droves, and things haven't been looking too good for the midstream pipeline companies either.Don't throw out the baby with the bathwater though. The major oil companies are still great investments. In fact, the longer oil prices stay down, the better the oil majors will do when the cycle finally turns up again. That's because the shortage of capital in the industry now is forcing severe layoffs and cutbacks on expansion plans. In future years, supply will drop significantly thanks to the absence of new production efforts. On top of that, the majors have been buying up assets on the cheap to take advantage of current market conditions.That's where Suncor (NYSE:SU) comes in. The Canadian integrated oil giant has been quietly building an oil sands production and refining empire over the past decade. Oil sands have become one of the world's cheapest sources of oil, with Suncor producing for just $25 per barrel or so. It also has supplies to last for many decades; oil sands, unlike shale, do not deplete quickly. Suncor's refining capacity has also insulated it from low crude oil prices in North America as it can sell higher-value gasoline and other finished petroleum products.Add it all up, and Suncor is a cash flow machine. It is offering a 12% cash flow yield, giving it room to pay a 4% dividend yield which it tends to hike by double digits every year. The company also has enough left over to both buy back stock and pay down debt. When oil prices turn up, Suncor stock will be set for a massive rally. Altria (MO)Source: Kristi Blokhin / Shutterstock.com Tobacco leader Altria (NYSE:MO) isn't quite the cheapest of value stocks, at least not compared to a month or two ago. Altria shares have recovered from $40 to $50. But don't think you're too late, Altria is still a relative bargain today. Keep in mind that MO stock traded as high as $75 per share not that long ago.It's not hard to see why Altria stock crashed. The company has seen its cigarette sales volumes decline more aggressively in recent years; the annual declines have moved from low single digits to closer to 5%. This makes it hard to keep revenues flat or increasing merely from price hikes. Altria seemingly panicked as a result, and paid way too much for its minority stake in vaping leader Juul. Investors have punished Altria mercilessly for this ill-timed blunder. As the federal government has cracked down on vaping, Juul's valuation has sunk. * 7 Retail Stocks to Buy That Dominated Thanksgiving Shopping However, the worst is over for MO stock. See, the bears can't have it both ways. If cigarette sales decline sharply, people are going to want to get nicotine from another source, of which vaping is the easiest alternative. Meanwhile, if the federal government limits vaping too much, people will simply go back to cigarettes. As long as people crave their nicotine, Altria will get its revenues one way or another. The government has seemingly realized this, and is now backing down on some of the harsher vaping rules. Molson Coors Brewing (TAP)Source: OleksandrShnuryk / Shutterstock.com If cigarettes and vaping aren't up your alley, how about beer? This brings us to Molson Coors Brewing (NYSE:TAP) which makes those namesake beer brands along with other well-known labels such as Miller and Blue Moon.The company acquired 100% ownership of Miller along with many other assets in 2016 when Anheuser-Busch InBev (NYSE:BUD) acquired SABMiller and regulators forced the combined entity to sell off some brands for antitrust reasons. Molson Coors took advantage and grabbed these assets at a seemingly favorable price. However, it took on a lot of debt to complete the deal, and combined with weak sales in recent years, its financial results have underwhelmed.This, in turn, has caused investors to dump TAP, making it one my favorite value stocks. It's down from a high of $110 to just $51 now. However, the tide is starting to turn. The balance sheet is getting stronger, and management just rewarded shareholders for their patience with a gigantic dividend hike this year.As a result, TAP stock now trades for just 12x earnings and pays a 4.5% dividend yield. The craft beer movement has already lost steam -- craft is barely taking any additional share from big beer. It's only a matter of time until Molson Coors gets revenue growth to kick in again, and the stock should move back up above 15x earnings, leading to sizable capital gains on top of the healthy dividend yield. Eastman Chemical (EMN)Source: Michael Vi / Shutterstock.com With its recent selloff, Eastman Chemical (NYSE:EMN) is back into the deep value stocks zone. EMN stock is now going for just 10x earnings. Traders have dumped shares of the former Eastman Kodak spinoff thanks to the trade war, which has caused a bit of an earnings slowdown. Eastman was originally supposed to make about $7.75 in EPS this year, now it will be closer to $7.20. Regardless, for a $75 stock, that's fantastic.Impressively, Eastman is on track to produce more than $1 billion in cash flow this year, meaning it is selling for less than 10x that metric. With all that cash, Eastman can pay a 3.3% dividend yield, buy back stock and pay down debt all at the same time. * 7 Exciting Biotech Stocks to Buy Now Investors aren't enthused for chemicals stocks right now because they are seen as cyclical. That, plus global trade concerns, have the sector in the penalty box. Make no mistake though, if this Federal Reserve easing cycle leads to any signs of an economic pick-up in 2020, these left-for-dead chemical stocks like Eastman should come roaring back. Corporacion America Airports (CAAP)Source: Shutterstock Finally, we get to the last of our value stocks, and this one is deeply under-followed. That's because Corporacion America Airports (NYSE:CAAP) is both a fairly recent initial public offering, and a company whose operations are centered in Argentina. The IPO was unfortunately timed, as Argentina's economy soon went into a tailspin after CAAP stock started trading on the New York Stock Exchange. To make matters worse, Argentina voted in a left-wing government this fall, triggering a rout on Argentine stocks.Add it all up, and CAAP stock has hit massive turbulence dumping from the IPO of $16 per share to just $4 now. Oddly enough, given the fall in stock price, the actual business is still going reasonably well. The company has a healthy balance sheet, and passenger traffic is still rising across its portfolio of airports. CAAP gets about 60% of its airport traffic from Argentine airports, but it also has major holdings in Brazil, Italy, Ecuador and various other countries. As a result, the market has now crushed CAAP stock for a 75% loss despite the fact that only 60% of its business is in Argentina. Even if Argentina goes into an economic depression, the other airports should more than support the stock price here.If the Argentina airports face a moderate decline in traffic, and the rest of the portfolio performs as is, the stock would be trading for less than 5x its earnings before interest, taxes, depreciation and amortization. That's an insane price for an airport operator -- publicly traded comparables in Mexico sell for around 12x EBITDA. European airport operators tend to sell for 15x-20x EBITDA. Currently, another emerging markets airport operator in Thailand is selling for nearly 25x. Just getting to 12x, where Mexican airports sell for, would cause CAAP stock to nearly quadruple from today's prices.There's no guarantee it will happen, but the odds favor an upturn in sentiment toward Argentina rather than a further darkening from the already-despondent mood. When things turn back up, CAAP stock should soar.At the time of this writing, Ian Bezek owned EMN, INTC, WFC, SU, CAAP, MO and TAP stock. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Hot Stocks for 2020's Big Trends * 7 Lumbering Large-Cap Stocks to Avoid * 5 ETFs for Oodles of Monthly Dividends The post 7 Overlooked Value Stocks to Buy That Will Shine in 2020 appeared first on InvestorPlace.
For anyone whose investments include technology, which should be everyone, Nvidia (NASDAQ:NVDA) is a core holding.Source: michelmond / Shutterstock.com That's because artificial intelligence, in both the cloud and at the edge, is a key to growth in the next decade. Nvidia has the chips and software that deliver it.The recent bull run has made Nvidia pricey in the short term. It opened Dec. 6 at 11 times its expected annual sales of $11.7 billion and 53 times earnings; it had a market cap of over $128 billion. It's down about 5% over the last week, and another dip may be coming.InvestorPlace - Stock Market News, Stock Advice & Trading TipsI wouldn't buy it here, but I already have some. If you don't, you need some, and you can still buy it here, if you have a 5-year time horizon. Why Nvidia MattersNvidia matters because AI matters.Inferencing, drawing conclusions based on data and acting on those conclusions turns dumb machines smart. Cars, stores, medical devices and networks are constantly taking information in, but until now, they haven't been using it. When they use it, they deliver tangible benefits to users. This is all about software, not just hardware. In this decade, hardware has become software, and Nvidia has led that revolution. * 7 Hot Stocks for 2020's Big Trends Until now, Nvidia chips have primarily gone inside clouds. Wins at the network edge have been limited to gaming, and gaming still matters. Gaming is a test bed for AI applications, with gamer decisions racing to increasingly high levels of abstraction, and gaming chips' processing what become the lower levels. But big wins are coming in areas beyond gaming. The company is going to get its share of those wins.Here, software matters as much as hardware. Nvidia has learned this in gaming, and is starting to apply this in markets like healthcare, where its Clara Federated Learning tools can not only help diagnose conditions in an emergency, but protect the privacy of patient data at the same time. Short-Term ThreatsAll the threats to Nvidia are short-term, niche events. No one has the broad front of AI tools and hardware that Nvidia offers.Analysts will tell you Intel (NASDAQ:INTC) is a threat to the company's dominance because it has the cash to buy start-ups like Movidius, Nervana and (now) Habana Labs. None of that represents a broad attack against its dominance in AI.The same thing is true for new silicon from Amazon (NASDAQ:AMZN). Its Inferentia chip is designed to hold down the cost of AI in the cloud, while Nvidia software has already gone on to deliver application support at the edge.Not all markets within the AI landscape move at the same rate. Right now, the automotive market is slowing, and Nvidia sales to the market are slowing with it. But this is also a short-term hiccup, as the transport industry looks to find which self-driving niches will pay.All these events play on Nvidia shares in the short term. They don't affect the long-term outlook. The Bottom LineNvidia was once a graphics chip company. Then it was a cloud chip company. * 10 Stocks That Should Be Every Young Investor's First Choice Today, Nvidia is an artificial intelligence company.AI requires chip support both in the cloud and at the edge. It also requires new platforms in which new tools can be designed and implemented.While analysts and investors have been looking at short-term gains and losses in particular subsets of the market, Nvidia has been marching ahead along a broad front of AI, supporting it in the cloud, at the edge, and within the workstations where tomorrow's applications will be created.That's what makes Nvidia a core holding today. You don't have to buy it when the market is at a high, but it needs to be in your portfolio in the 2020s.Dana Blankenhorn is a financial and technology journalist. His latest book is Technology's Big Bang: Yesterday, Today and Tomorrow with Moore's Law, essays on technology available at the Amazon Kindle store. Write him at firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in Nvidia and Amazon. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Hot Stocks for 2020's Big Trends * 7 Lumbering Large-Cap Stocks to Avoid * 5 ETFs for Oodles of Monthly Dividends The post Nvidia Is Fairly Priced But Still Worth Buying appeared first on InvestorPlace.
Qualcomm (NASDAQ:QCOM) has trended down in recent weeks. Despite hitting its 52-week high in early November, investors are growing skittish again about the company's prospects. While 5G could be a big catalyst going into 2020, regulatory risks remain a huge caveat.Source: Akshdeep Kaur Raked / Shutterstock.com Qualcomm is fighting off an antitrust ruling in the United States. The Federal Trade Commission believes Qualcomm's "no license, no chips" policy is anti-competitive. But Qualcomm is gearing up to fight the ruling early next year.The U.S. isn't the only place Qualcomm is facing regulatory hurdles. South Korea fined Qualcomm $873 million due to similar alleged anti-competitive practices. A South Korean court upheld the fine, but the company plans to fight the ruling. Qualcomm has a lot to lose in these battles. Its main business may be manufacturing mobile chips. But charging cell phone manufacturers royalties is its true profit center.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThis combination of opportunity (5G) and risk (regulatory threats to licensing cash cow) makes Qualcomm a stock tough to analyze. But based on the current valuation, there may be plenty of room for downside. Qualcomm Could Win (or Lose) Big in 2020All bets are off whether Qualcomm "wins big" or "loses big" in 2020. Next year could be crowned the "year of 5G." Apple (NASDAQ:AAPL) and other phone makers plan to launch 5G-enabled smartphones. 5G smartphones are expected account for 51% of total sales by 2023. 5G also opens the door for markets outside of mobile. The rise of internet of things devices provides ample growth opportunity. * 7 Hot Stocks for 2020's Big Trends Will this translate into explosive growth for Qualcomm? The jury's still out. After winning its dispute with Apple, the iPhone maker agreed to resume using Qualcomm modems. But Apple's long-term plan is to build modems in-house.Then there's the China factor. Even if the U.S. "wins" the trade war, Qualcomm could still lose. Thanks to the U.S. export ban, Huawei has reduced its dependence on U.S. chip makers like Qualcomm. Huawei now largely uses modems made in-house. Qualcomm sells mobile chips to some of Huawei's competitors. But given their declining market share, Qualcomm is losing ground in this important mobile market.The tide may be turning for Qualcomm's mobile chip dominance. Add in the ongoing regulatory hurdles, and there's good reason to be cautious about the stock. Qualcomms's FTC AppealWhat are the odds Qualcomm prevails in its appeal? Predicting the outcome of litigation is tough prognostication. Especially if you fall in the "I am not a lawyer" category. But recent news may point to challenges in Qualcomm's case.In a brief filed with the Ninth Circuit Court of Appeals, Intel (NASDAQ:INTC) claims Qualcomm's actions drove it out of the smartphone chip business. Intel says this is why it sold the business to Apple at a "multi-billion dollar loss." This brief provides plenty of ammo for the FTC's case.But other federal agencies could sway the outcome. The Department of Defense and Department of Energy are both on Qualcomm's side. As a "trusted supplier" of 5G technology, both agencies are urging for the court of appeals to pause enforcement of the decision.As I've said previously, the ball's in the (Ninth Circuit) court. It's tough to say whether it will back the FTC or not. But the outcome of this decision has big ramifications for Qualcomm. If the company prevails, expect the stock price to shoot up. Without this ruling hanging over the company, investors will regain their confidence in QTL's future prospects.With 5G opportunities and regulatory risks, it makes sense why Qualcomm trades at its current valuation. Qualcomm's forward price-to-earnings ratio is 28.1. This exceeds Intel's forward P/E of 12.9. But high-flying chip makers like Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD) trade at much higher multiples.NVDA trades for 48.6 times forward earnings. AMD trades at a staggering 94.4 times forward earnings. I don't expect Qualcomm to ever reach such frothy levels. But with its 5G potential, Qualcomm could benefit from multiple expansion -- if it can shake off the FTC's attempts to curtail its business. Bottom Line: Qualcomm Is Fairly ValuedAssessing the opportunities and risks for Qualcomm, it's safe to stay shares are fairly valued. Qualcomm's premium to Intel stock is fair, given the company's 5G growth opportunities. But the large discount to high-flying chip names like Nvidia and AMD is also rational. While the jury's out whether Nvidia and AMD will deliver on their growth promises, at least both companies aren't facing potentially crippling regulatory rulings.Qualcomm could soar again if the Ninth Circuit Court rules in its favor. But this is not the end all, be all for Qualcomm. With big phone makers like Apple and Huawei going in-house for modem production, Qualcomm's salad days may already be over.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 Hot Stocks for 2020's Big Trends * 7 Lumbering Large-Cap Stocks to Avoid * 5 ETFs for Oodles of Monthly Dividends The post Catalysts, Risks Could Make or Break Qualcomm in 2020 appeared first on InvestorPlace.
The major stock indexes jumped at the stock market open after a strong jobs report. Tesla accelerated higher after its bull case price target was upped to 500.