|Bid||173.70 x 1400|
|Ask||173.65 x 1100|
|Day's Range||172.27 - 175.00|
|52 Week Range||124.46 - 292.76|
|Beta (3Y Monthly)||2.52|
|PE Ratio (TTM)||32.81|
|Earnings Date||Aug 15, 2019|
|Forward Dividend & Yield||0.64 (0.38%)|
|1y Target Est||183.95|
As most companies in this space are likely to deliver a positive earnings surprise, the semiconductor ETFs might continue to see smooth trading in the weeks ahead.
Following a record-high stock performance, Nvidia delivered disappointing Q3 FY19 earnings. Here are the business segments that may guide a company comeback.
Cadence (CDNS) benefits from solid demand of its broad based product portfolio. Traction witnessed by Palladium Z1 and EDA-optimized Cloud-Hosted Design solution is also a positive.
When you first start learning how to read stock charts, it can be a little intimidating. But you can quickly get up to speed with this new series on Chart Reading For Beginners.
Did you buy Advanced Micro Devices (NASDAQ:AMD) stock at the end of 2018 and are you still holding it? Kudos for believing in CEO Lisa Su's ongoing transformation of the once-struggling semiconductor company.Source: Shutterstock As a result of Su's work to revitalize the company since taking the top job in October 2014, she has managed to bring AMD back from the brink in less than three years. Now, as it moves to take more market share, analysts generally like what it's doing despite the slowdown across the semiconductor industry. Currently, 13 analysts have an overweight or buy rating on Advanced Micro Devices stock with 16 holds and just four underweights or sell ratings despite the 76% run-up in the AMD stock price. By comparison, 25 analysts give Nvidia (NASDAQ:NVDA) a buy or overweight rating with nine a hold and just three an underweight or sell rating. InvestorPlace - Stock Market News, Stock Advice & Trading TipsSo, 68% of analysts give Nvidia a rating of overweight or better, while only 39% do the same for AMD stock. I believe the key difference between the two companies, one that I'm sure is a big difference-maker for analysts, is the fact that Nvidia continues to generate significant free cash flow despite the slowdown in its business, while AMD doesn't despite improving its product offerings.Cash flow is king goes the saying. However, I think it is safe to say that once industry conditions improve in 2020, a majority of those 16 holds on AMD stock could turn to buys because analysts generally view Advanced Micro Devices in a favorable light. * 10 Stocks to Buy From This Superstar Fund Up 76% year-to-date, if you haven't bought Advanced Micro Devices stock, you probably think it's too late to jump on the bandwagon. Here's one reason you'd be right and one why you'd be wrong. Why It's Too Late to Buy AMD StockAMD announces earnings July 30 after the markets close. Given the huge run, it has been on in 2019, it needs to deliver a positive surprise in the second quarter. Analysts are expecting $1.52 billion on the top line and 8 cents on the bottom. As my InvestorPlace colleague, Laura Hoy, pointed out recently, much of the optimism for the company is already baked into the AMD stock price. Currently trading at almost 6X sales and 50X its forward earnings, anything less than a home run from earnings and it's unlikely that AMD stock will go much higher than $33 … where it's currently trading. However, if it misses on any of the key numbers, it's sure to move back into the $20's, which could provide patient investors with an excellent entry point.The easy pickings have already been taken. Why It's Not Too LateInvestorPlace's Brett Kenwell wondered July 19 if AMD could break out to $37. He makes the argument that if the company can meet analyst growth estimates, its current valuation isn't all that outrageous. Interestingly, Kenwell also pointed out the Mizuho analyst cut AMD's rating to "neutral" from "buy," but raised the target price by four dollars to $37. With the average analyst estimate $43, about 30% above current prices, the upside potential is still pretty good despite the significant gains through mid-July. The reality is that AMD is a much stronger company than it was four years ago, even a year ago, and that means it should be able to do a better job fending off its larger competitors such as Nvidia and Intel (NASDAQ:INTC).As its stock continues to test its $34 resistance, eventually investors are going to push through that level. A good time could be right after it delivers a positive surprise on July 30. The Bottom Line on Advanced Micro Devices StockWhen it comes to AMD versus Nvidia, I prefer to go with the latter because it's a free cash flow generator. However, Advanced Micro Devices stock has a much better year going than Nvidia when it comes to quarterly results. I expect that to continue to be the case in the second quarter and perhaps the third and fourth as well. * 7 Stocks to Buy This Summer Earnings Season But it has to deliver the goods when it reports. A negative surprise will be a definite momentum killer. Should you buy AMD stock before earnings? I'd consider a small position and then wait to see what happens July 30. If you can get it below $30, that would be ideal.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 * 7 Defense Stocks to Buy to Fortify Your Portfolio * 10 High-Flying, Overvalued Stocks in Danger of Crashing * 8 Stocks to Buy That Are Growing Faster Than Amazon The post The Analysts Like AMD Stock … Should You? appeared first on InvestorPlace.
[Editor's note: "3 Esports Stocks to Benefit From the Boom" was previously published in February 2019. It has since been updated to include the most relevant information available.]When a leading marketing publication like Adweek prints a major headline about an up-and-coming trend, we should all take notice. It certainly grabbed my attention when "Any Brand Not Marketing in the Esports World is Already Behind the Curve" hit the internet in February, and put esports stocks at the forefront.An industry valued at $1.5 billion with a global audience of 385 million is tough to miss. Yet most advertisers have been completely ignoring the world of esports.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBig mistake.The backers of the industry include the biggest names in professional sports, including Robert Kraft, the owner of the Super Bowl-champion New England Patriots. The purses of some of the largest esports tournaments are larger than the world's most prestigious golf tournament -- the Masters.This is just the beginning. The growth of esports will continue, and there will be plenty of catalysts to help propel it to the next level.First, with states free to approve sports gambling, it would be a natural move to begin allowing gambling on esports events. Then there is the shift away from more violent sports like football and toward the gaming world. I may not be the biggest fan of kids avoiding sports where they can get dirty and instead playing those where they get thumb cramps. But the reality is that esports is already big, and it's only going to get bigger. * 8 Stocks to Buy That Are Growing Faster Than Amazon A lot of companies are capitalizing on this trend, but three esports stocks in particular stand out as leaders today and in the future, making them good stocks to buy. Let me tell you a bit about each. Esports Stocks: Nvidia (NVDA)Source: Shutterstock Nvidia (NASDAQ:NVDA) is a leader in several of my favorite long-term technology trends -- everything from autonomous vehicles to artificial intelligence to blockchain. But one aspect of the company that is often overlooked is its ties to esports.This maker of chips is also a leading manufacturer of graphics cards for the gaming sector. As the demand for faster and better graphics increases, NVDA stock will be one of the few companies able to keep up with the demand.With ties to many of the hottest mega-trends in the market right now, NVDA is a great long-term buy on pullbacks. Tencent Holdings (TCEHY)Source: Shutterstock I can't leave this company off this list. Even though Tencent Holdings' (OTCMKTS:TCEHY) performance has been subpar over the last year, it remains the biggest player in esports as well as the overall gaming industry.The fact that TCEHY is based in China has acted as a black cloud over the stock, as the trade issue with the U.S. has been holding back the entire Chinese market. However, rumors are swirling that the trade issue may be resolved in the very near future. If and when that happens, it will be a big boost to both the short- and long-term outlook for the company.Tencent announced in early January that it had entered into a joint venture with Riot Games. The two companies will be in charge of supervising the operations around the popular League of Legends tournament. The joint venture will also work toward the development and release of new products. * 8 Stocks to Buy That Are Growing Faster Than Amazon It is almost always a great idea to invest in the leaders of a high-growth investment trend like esports stocks, and that's exactly what you get with Tencent. I see a lot of upside here in the years ahead. The Madison Square Garden Company (MSG)Source: Shutterstock The Madison Square Garden Company (NYSE:MSG) has a lot of entities under its ownership umbrella. It owns the New York Knicks of the NBA and the New York Rangers of the NHL, as well as a few smaller professional sports team. It owns the iconic Madison Square Garden Arena, of course, plus several other arenas and entertainment venues.But I bring this company up among these esports stocks because it also owns one of the largest esports organization in the world -- Counter Logic Gaming. This esports team participates in some of the largest events in the world, including the League of Legends franchise owned by Tencent.Counter Logic Gaming is a very small part of the Madison Square Garden empire. However, with the NBA showing more interest in the esports world and the ties between traditional sports and online ones becoming more evident, I am confident this company will be a big winner over the long-term.Matthew McCall is the founder and president of Penn Financial Group, an investment advisory firm, as well as the editor of Investment Opportunities and Early Stage Investor. He has dedicated his career to getting investors into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA), +1,044% in Tesla (TSLA), +611% in Liquefied Natural Gas Limited (LNGLY), +324% in Bitcoin Services (BTSC), just to name a few. If you're interested in making triple-digit gains from the world's biggest investment trends BEFORE anyone else, click here to learn more about Matt McCall and his investments strategy today. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Tech Stocks That Are Still Worth Your Time (And Money) * 7 Marijuana Stocks With Critical Levels to Watch * 7 of the Best Smart-Beta ETFs to Target Right Now The post 3 Esports Stocks to Buy to Benefit From the Boom appeared first on InvestorPlace.
Nvidia (NASDAQ:NVDA) is a pioneering maker of graphics processing units for gaming and professional markets. Since Oct. 2018, Nvidia stock price has been under pressure and over the past 12 months, Nvidia stock has slumped about 32%.Source: Shutterstock For years, NVDA stock has been a leader in the increasingly competitive graphics-card market. Today, I want to discuss the recent battle for market share between Nvidia and Advanced Micro Devices (NASDAQ:AMD), which has been regarded as the perennial runner-up to NVDA. * 7 Defense Stocks to Buy to Fortify Your Portfolio AMD is expected to report its Q2 earnings on July 24, about three weeks before the expected release of Nvidia's earnings. Therefore, in addition to paying attention to Nvidia 's fundamentals, investors may want to pay close close attention to AMD's results, which may very well impact Nvidia stock price.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Investors Regard NVDA as the Premiere Graphics Chip StockPreviously much loved by investors, especially in 2017 and most of 2018, Nvidia stock gets a lot of attention, compared with other chip stocks. In 2015, Nvidia stock price was hovering around $20. In Oct. 2018, it hit an all-time high of $292.76. On Dec. 26, 2018, it reached a 52-week low of $124.46. In late morning trading today, Nvidia stock price was about $170.NVIDIA sells two main products: graphics processing units (GPU) and Tegra processors. GPUs accelerate central processing units (CPUs), boosting the performance of video and graphics and improving computers' overall performance.Nvidia's GPUs are used in PCs and data centers. Tegra is a system-on-a-chip (SoC) suite developed by Nvidia for mobile devices. For example, Nintendo's (OTCMKTS:NTDOY) Switch uses Tegra. But Tegra only accounts for about 10% of NVDA's total revenues.The company's GPUs have earned a superior reputation compared to competing products, particularly within the gaming industryGamers have not hesitated to pay considerably more for better performance. And for years, NVDA's superior product quality and performance have translated into large revenue and market share, boosting Nvidia stock price. What to Expect From Nvidia's Q2 EarningsNVDA is expected to report its earnings on Aug. 15. When NVDA reports its results, Wall Street will pay attention to the company's five segments that drive NVDA's revenues, i.e., gaming, data center, professional visualization, automotive, and edge computing.Gaming accounts for over 40% of Nvidia's total revenue. During Q1, the unit's revenue tumbled 39% YoY. Investors are quite worried about the company's fundamental growth outlook, which is mostly based on its GPUs for gaming and artificial-intelligence servers. Nvidia's EPS and Nvidia stock price are very closely linked to the sales trends of its GPUs.NVDA's chips had been dominant in PCs. However, a higher percentage of the industry's games are being played on consoles now, and NVDA's GPUs aren't usually incorporated into consoles. Sony (NYSE:SNE) is, for example, using AMD's products in its consoles.Analysts have noted that the crypto craze, which for the most part waned in 2018, can no longer be relied upon to further boost Nvidia's GPU business. Long-term owners of Nvidia stock may well remember that the increase in Nvidia stock price in 2015 largely coincided with the popularity of cryptocurrencies like Bitcoin. Indeed, NVDA's fall from grace started with the collapse of the cryptocurrency craze, which has dealt a blow to the top and bottom lines of NVDA.Wall Street it also concerned that NVDA's automotive business, based on the advent of artificial intelligence (AI)-powered autonomous vehicles, may suffer in coming months. Currently, automotive is the smallest of all of NVDA segments, accounting for just over 5% of its revenue.The current U.S.-China trade war has not helped NVDA, either, as nearly a quarter of Nvidia's sales comes from China. The headwinds of the sector make many analysts wonder whether NVDA can, in the near future, regain the kind of rapid and sustained growth that investors had grown used to in recent years.In its Q1 results, reported in May 2019, NVDA beat analysts' average revenue estimate by 1 %. Furthermore, NVDA expects its full-year revenue to be flat in fiscal 2020. In recent years, Nvidia has managed to keep its revenues intact, in part by increasing its prices. But now that AMD is becoming a serious contender, can NVDA continue to rely on price hikes? Could NVDA Be Dragged Into a Price War?Nvidia is dominant in graphics processing units (GPUs). And until 2019, Advanced Micro Devices (NASDAQ:AMD) mostly played catch-up with Nvidia in GPUs.But during the current quarter, AMD is expected to start selling graphics cards utilizing its 7-nanometer (nm) chips, which are touted as highly power-efficient. As AMD launches its Navi graphics cards featuring the company's 7-nanometer chips, it's confident that its GPUs will take market share from NVDA's chips in the gaming segment.Over the past few weeks, responding to AMD's new products, Nvidia's management has taken several steps,. Specifically, NVDA launched new "Super" versions of its RTX GPR offerings, i.e., RTX 2060, 2070, and 2080. These new versions are considerably faster than their predecessors, but NVDA is selling the new chips at the same prices as the old ones, effectively cutting its prices.AMD responded by reducing its own prices, making investors wonder if either chip maker will benefit from these recent developments. Should Long-Term Investors Buy Nvidia Stock Now?Despite the semiconductor industry's headwinds and cut-throat competition from AMD, there is strong demand for Nvidia's graphics processors, for use not only in video games but also in data centers and work stations. Industry experts also regard NVDA as a top player in the AI chip space, and its graphics chips are highly sought after for use in deep-learning applications.NVDA is also exploring smart-city solutions, which exploit its proficiency in artificial intelligence and data analytics. In other words, the company is somewhat shifting its focus from processors to providing the full technical backbone for AI ecosystems. As the use of artificial intelligence and machine learning continues to rapidly grow, NVDA's AI business could expand exponentially.As new frontiers in technology, such as the internet of things (IoT), artificial intelligence, autonomous driving, and 5G, are developed, I am hopeful that Nvidia's earnings will climb tremendously, lifting Nvidia stock price. Thus, I am also upbeat on the long-term outlook of NVDA.However, in the short-term, effectively lowering its prices to compete with AMD may not necessarily translate into larger market share and a higher stock price for Nvidia.Although Nvidia stock will likely reward long-term investors, tech stocks may remain volatile over the next few weeks. A couple of negative earnings-related or macro-economic news headlines may drive many stocks, including Nvidia, down. Such a decline of Nvidia stock price could provide long-term investors with a better entry point.Investors may consider waiting on the sidelines if they do not currently have any positions in Nvidia stock. I'd consider going long the stock if its price drops back below $150. The shares will be even more attractive on a drop toward $125.Investors who already own NVDA may consider either taking some money off the table or hedging their positions. As for hedging strategies, covered calls or put spreads that expire on Aug. 16 could be appropriate, as straight put purchases are likely to be expensive due to the heightened volatility of NVDA.As of this writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Defense Stocks to Buy to Fortify Your Portfolio * 10 High-Flying, Overvalued Stocks in Danger of Crashing * 8 Stocks to Buy That Are Growing Faster Than Amazon The post How Will Nvidia Stock Hold Up Amid Tough Competition From AMD? appeared first on InvestorPlace.
Much of the money that Microsoft is investing in startup OpenAI will likely go towards AI computing systems featuring Nvidia GPUs.
We've seen an interesting development in the U.S. chip market. While that includes a number of stocks and equipment makers, three stocks often grouped together are Nvidia (NASDAQ:NVDA), Intel (NASDAQ:INTC) and Advanced Micro Devices (NASDAQ:AMD). Is Intel stock the best among the three?Source: Shutterstock I don't think so, personally.While it may have a low valuation and the most attractive dividend yield of the bunch, it's got stagnant growth and trails in several key growth markets. With that said, it's hard to fight the tape as the price action in INTC stock looks attractive.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Defense Stocks to Buy to Fortify Your Portfolio Let's explore this name a little more closely. Valuing INTC StockIntel stock price has fallen 2% over the last year. That far outpaces the 31.8% fall in Nvidia, but badly lags the 101% run in AMD. Owning all three of these stocks isn't a terrible idea for an investor who wants exposure, but wants to diversify as well.That allows investors to take advantage of Intel's dividend and AMD's strong top- and bottom-line growth.When focusing solely on INTC stock, here's what we're looking at: Shares trade at just under 12 times earnings, which is quite cheap in most investors' eyes. However, analysts expect earnings to decline 7.4% this year before rebounding just 4.7% next year. On the revenue front, estimates call for a 3.5% decline this year and a 3.9% rebound in 2020.Essentially, we're looking at 2020 revenue being just a bit higher than 2018, while analysts actually expect 2020 earnings to be lower than 2018. Now you see why Intel stock price comes with such a low valuation.That's not attractive to me when it comes to the chip space. While Nvidia and AMD may command higher valuations, the outlook is better. AMD has positive growth forecasts for this year and strong growth priced in for 2020. Nvidia analysts expect a revenue and earnings slowdown this year, but a robust rebound next year.Shares of Intel do yield 2.52%, which is attractive among its immediate peers. However, if one is in search of income, they can do better than INTC stock.That said, it does have solid profit margins (about 29% over the trailing 12 months) and stout free cash flow ($12.5 billion over the last 12 months). Further, its balance sheet is solid too, with total assets of $129.4 billion more than doubling its total liabilities of $55.8 billion. Trading Intel Stock PriceFundamentally, I view Intel stock as a mixed situation. It's definitely not bad, but it's not kicking out the robust growth investors would like to see. That's why I feel so strongly about owning it as part of a basket approach with NVDA and/or AMD, but not as a standalone. Click to EnlargeThat being said, the charts are looking good.Intel stock price is flirting with a major move over the $50 mark. This level has played a key role over the past year and INTC stock is on the cusp of rallying through it.If it does push through, Intel stock faces the 50% one-year retracement at just under $51, and the 38.2% retracement near $53 after that. Should it get to the latter, it will be at its highest point since April, when the stock brutally collapsed from $57. Further, if it can get to that 38.2% mark, it will officially begin filling the gap back to the $57 mark.That doesn't mean it will get there necessarily, but it will be something to watch. That's particularly true if Intel stock can reclaim the 38.2% retracement.Now, if Intel stock price can't breakout over $50, or if it does and later fails to hold this mark as support, we have to look at the downside.The first level is the 20-day moving average, which is at $48.55 and near it is the 200-day at $48.64. The only reason I mentioned the 20-day first is because it's trending higher and will soon surpass the 200-day mark.Below both moving averages brings up the 50-day down at $46.61. If Intel finds itself below all three marks, it could put a test of $45 on the table. One thing is pretty clear though: Its earnings report on July 25th could be a major catalyst for a big move in either direction. In that case, know your levels.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long NVDA. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Defense Stocks to Buy to Fortify Your Portfolio * 10 High-Flying, Overvalued Stocks in Danger of Crashing * 8 Stocks to Buy That Are Growing Faster Than Amazon The post Is Intel Stock a Better Buy Than Nvidia, AMD? appeared first on InvestorPlace.
The bullish investing thesis on Nvidia (NASDAQ:NVDA), the current leader in GPUs, is pretty clear. GPUs work better than CPUs for artificial intelligence applications and as a result, the chip maker -- and NVDA stock -- seem well positioned in a market with what is essentially huge growth potential. Source: Shutterstock InvestorPlace - Stock Market News, Stock Advice & Trading TipsDue to its exposure to AI, NVDA stock will benefit from numerous secular growth trends in autonomous driving, big data, medical diagnostics, and more that could help lift sales and profits rise over time. The bearish thesis is also clear. Due to the importance of artificial intelligence, Nvidia will have a lot of competition in the future and the company might not keep its leading position for very long. To get a leg up and save money, big tech companies with immense resources such as Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL), and Facebook (NASDAQ:FB) are each developing their own specialized AI chips. Innovative companies like Tesla (NASDAQ:TSLA) aren't too far behind, with Musk's company having unveiled an AI chip that can help make Tesla more autonomous this year. Long term, China also wants to eventually make its own version of Nvidia. * 10 Stocks to Sell for an Economic Slowdown To keep its leading market share and meet bullish expectations, Nvidia will need to innovate and make better products than anyone else. Due to the uncertainty of how those products will be received, Nvidia stock has been subject to sentiment shifts. As a result of the shifts, the NVDA stock price has fallen from its late 2018 highs but is still up 23% year to date. Given the rally in 2019, is the stock a good buy now? Wall Street is Bullish on NVDAIn terms of Wall Street analysts opinions, Nvidia is pretty attractive. Analyst Harsh Kumar of Piper Jaffray has a $200 target price based on encouraging results from his research into gaming trends and gamer demand. According to Kumar's survey of gamers, more than 70% of respondents said they would either maintain or increase GPU spending patterns. Analysts at Cascend Securities have a $190 price target, noting that Nvidia is holding onto its market share despite Advanced Micro Devices' (NASDAQ:AMD) strong Navi AMD GPU release. What Some on the Sidelines SeekMeanwhile on the sidelines, many chartists will say that the Nvidia stock price needs to close above the 200-day exponential moving average of around $174.64 with a meaningful catalyst to be attractive. So far Nvidia shares have consolidated below the 200-day mark since last October and the consolidation has caused the exponential average to act as resistance. * 7 Stocks Top Investors Are Buying Now Many traders don't play consolidations because a stock could take a very long time to consolidate. Because time is money, some traders wait until the stock has broken out with some sort of meaningful positive catalyst before buying. Even though they pay a higher price, it is in their mind safer due to momentum. In terms of catalysts, one to look for is AMD's earnings report on July 24. If conference call commentary indicates strong demand for GPUs in general, Nvidia could potentially benefit as it is currently the leader and its shares could head higher. If commentary indicates that AMD is gaining market share at the expense of Nvidia, shares could head lower. Another potential catalyst is any news of the trade war ending. If the trade war ends, the semiconductor sector could surge higher due to stronger sentiment and NVDA stock could rise with it. Lastly, Nvidia's earnings report next month could be a potential catalyst if the company beats expectations. Bottom Line on Nvidia StockNvidia stock has considerable long-term upside if management executes and the company keeps making industry leading semiconductor chips for AI applications. In the near term, I believe some money on the sidelines could move into NVDA stock if it closes above the 200-day exponential moving average with a meaningful positive catalyst event. As of this writing, Jay Yao did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Tech Stocks That Are Still Worth Your Time (And Money) * 7 Marijuana Stocks With Critical Levels to Watch * 7 of the Best Smart-Beta ETFs to Target Right Now The post Already a 2019 Gainer, Nvidia Stock Could Skyrocket if This Happens appeared first on InvestorPlace.
Nvidia (NASDAQ:NVDA) stock has become a frustrating investment for longs. Over the last five years, NVDA has gone from a stock left for dead to becoming a driver for tech innovation. Certainly, in the coming years, Nvidia chips will probably power many of the latest technological advances. Click to Enlarge Source: Shutterstock The recent trading patterns of NVDA stock have left many investors confused. The stock has twice bounced back from close to the $130 per share level.However, with the stock seeing two significant pullbacks since October, Nvidia stock seems to lack a catalyst that will take it back to its highs. Until investors see more convincing price action, they should probably avoid Nvidia stock.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Defense Stocks to Buy to Fortify Your Portfolio Nvidia Has a Solid FutureRarely do investors see such a stark divergence between short term and long term. In the long run, prospects appear bright for NVDA. Nvidia should remain a leader in artificial intelligence (AI), virtual reality (VR), self-driving cars, and data centers, on top of its core gaming capabilities. Also, its recent move to acquire Mellanox (NASDAQ:MLNX) will likely bolster its data center capability.To be sure, NVDA faces still competition from old rivals, Intel (NASDAQ:INTC) and especially AMD (NASDAQ:AMD). As our own Tom Taulli states, AMD may have even taken the performance lead on PC gaming hips.InvestorPlace contributor Dana Blankenhorn also mentions the AI-based cloud solution will also put Nvidia at odds with Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG), Amazon (NASDAQ:AMZN), and Microsoft (NASDAQ:MSFT).Still, I also agree with Taulli that this challenge from AMD will likely spur Nvidia's R&D arm to speed the pace of innovation. Blankenhorn also points out that the development of the SuperPod should further demonstrate this competitive edge. As consumers and businesses widely adopt this technology, NVDA will probably rise well above the $292.76 per share record high. NVDA Is Range-BoundUnfortunately for Nvidia bulls, it will take years for any of this to help investors. Buying NVDA now for its long-term prospects could lead to years of frustration. Here's why.With the stock price close to $170 per share, it has risen substantially from its intraday low of $132.60 per share in early June. Admittedly, many would envy a 28% return over six weeks. Still, less than six weeks before hitting that low, NVDA peaked an intraday high of $192.81 per share before the drop.We do not know for sure what NVDA will do until we see how it behaves at the low-$190s per share level again. However, the price action indicates it may have become stuck in a range. At this point, I think investors should consider this a range-bound stock until proven otherwise.At the $170 per share price level, that means investors have slightly more than a 10% upside before the Nvidia price nears the top of that range. The downside of the range would mean a 20% to 25% loss. Hence it makes little sense to buy at this level.It also does not pay to buy and wait for the eventual long-term upside. NVDA has built a six-year streak of dividend increases. I also see little that would compromise future annual payout hikes. However, the 64-cent per share annual dividend yields only 0.38%. Traders can earn more than that on their money at the bank without the risk. The Bottom Line on Nvidia StockUntil proven otherwise, investors should assume that NVDA is a range-bound stock. Nvidia stock looks like a buy below $140 per share. It also becomes a likely buy if it stops falling below the $190 per share level. Hence, at around $170 per share, traders have more potential downside than upside in the short term.Once Nvidia's technologies see widespread adoption, the range should break. However, without a catalyst, investors face a negligible payout and possibly years of range-bound trading in their future. Until Nvidia gives traders a reason to buy it, I would stay away.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 * 7 Defense Stocks to Buy to Fortify Your Portfolio * 10 High-Flying, Overvalued Stocks in Danger of Crashing * 8 Stocks to Buy That Are Growing Faster Than Amazon The post Unfortunately, Nvidia Stock Won't Be Going Anywhere for Awhile appeared first on InvestorPlace.
The semiconductor industry has been buffeted by headwinds in recent months, with most of the bad news centering on China. The ongoing political tensions, with the attached threat of tariffs and trade barriers, have hit chip makers hard, but that appears to be easing. Changes in technology are also challenging the industry, with the new 7nm chips enter the market. Finally, changes in supply lines as device makers try to balance cost, performance, and availability have taken a toll, too. Intel (INTC) in particular has taken a beating from that factor, as Apple (AAPL) has settled its legal with Qualcomm (QCOM) and regained access to its preferred modem chips and PC makers have been switching to AMD for lower cost processors.Developing secular trends are not being kind to chipmakers, either. Semiconductor chip prices are falling in 2019, and the global chip market is expected to weigh in around $445 billion this year, down some $60 billion from 2018. The problem stems from saturation; the chip content of electronic devices has reached its peak, and designers are getting more efficient. According to the chip market research firm IC Insights, the value of the semiconductor content of electronic devices is expected to drop by 15% this year, while the overall device market grows by 4%.This is the background to upcoming earnings reports from both Advanced Micro Devices (AMD) and Nvidia (NVDA). Both companies are important players in the US chip industry, and while both have buy-rated stocks, each presents a different set of strengths. We put them head-to-head, to find out which stock is the better buy. Nvidia Corporation (NVDA)Nvidia stands as the establishment figure here, as the sixth-largest US chipmaker (by 2018 total revenues) and the tenth-largest in the world. The company’s products hold strong positions in the gaming and data center industries, and Nvidia graphic chips are popular among cryptocurrency miners, as well.Still, the company reported a steep drop in revenues and earnings last quarter. The stock suffered, falling over 31% year-over-year, and even now has only partially recovered. So, NVDA is seen as having something to prove heading into the Q2 earnings report set for Aug 15. The company is expected to report 87 cents EPS, up 29% from last quarter.A strong quarter will justify the recent upbeat analyst reports. Writing from Piper Jaffray on July 12, Harsh Kumar says, “NVIDIA recently introduced its ray tracing GPUs, and according to the company, initial demand has been solid. Based on our survey results, we believe initial demand is also off to a good start.” He also points out that 70% of gamers surveyed by Piper Jaffray report they are maintaining or increasing spending on graphics cards. The strong demand from gamers underlies Nvidia’s confidence in releasing three new graphics cards in July. Kumar gives NVDA shares a buy rating, with a price target of $200, suggesting an 18% upside to the stock.On July 17, Merrill Lynch’s Vivek Arya saw an even more bullish 33% upside to Nividia, giving the stock a $225 price target. He wrote, “While we continue to see … headwinds, we remain bullish on NVDA long term due to its uniquely leverageable graphics platform and exposure to some of the fastest growth markets in semis – in particular the still budding $60bn total addressable market for artificial intelligence (AI) chips/systems.”Overall, NVDA keeps a moderate buy rating from the analyst consensus, based on 18 buys, 9 holds, and 1 sell given in the past three months. The stock’s $187 average price target represents an upside potential of 11% from the share price of $168. Advanced Micro Devices, Inc. (AMD)AMD will be reporting Q2 earnings on July 24. Where Nvidia has struggled to meet expectations this year, AMD shares are up almost 76% year-to-date. At the same time, the stock’s recent reviews are more mixed that NVDA’s.Vijay Rakesh, from Mizuho Securities, gave AMD a downgrade on July 18, saying that the stock’s six-month run up in price has left it with little room for further growth. He wrote, “With the stock past our price target and at a 10-year high, we see 2H upside more limited. We would revisit at a more attractive entry point as the roadmap is still intact.” Rakesh set a $37 price target, up 12% from the previous, suggesting 13% growth potential to the share price.So much for the bears. The bulls are more focused on AMD’s new line of chips. The company released two new desktop processors, the Ryzen 3000s, earlier this month to positive reviews, along with new third-gen Ryzen desktop CPUs. Along with all of that, were three new 7nm Navi GPUs, making July a busy month for AMD. The new chips were said to offer better combinations of productivity performance and price points versus the competition from Intel. Nomura analyst David Wong liked what he saw, and raised his price target to $37. This matches Rakesh’s target, but Wong gives the stock a buy rating. Wong sees AMD reaching 20% market share by year’s end.Five-star financial blogger Laura Hoy takes a cautiously bullish stance on AMD, writing, “The long-term growth potential of Advanced Micro Devices is undeniable… investors should keep AMD on their radar, in case a dip in the share price creates a more attractive buying opportunity.” Like Rakesh, she believes that AMD’s recent gains have left it without much room for short-term growth, but like Wong, she expects to see further gain in the mid- to long-term.Looking to the second fiscal quarter, AMD is expected to report revenues of $1.52 billion, or a drop of 13.36% from the year-ago quarter. This will represent an improvement, however, over Q1’s 22.8% year-over-year loss. EPS is expected at 5 cents, only half of last year’s 10 cent Q2 number. The drops are attributed to sales downturns, as detailed in the introduction above.Overall, AMD is another moderate buy stock, having received 13 buys and 8 holds in the last three months. AMD shares sell for $32.51, so the $34.05 price target offers just a 4.7% upside potential.
On July 18, New York Fed President John Williams's speech increased the Fed rate cut probability. He highlighted the importance of the Fed acting quickly.
Qualcomm (NASDAQ:QCOM) has gotten a break on its controversial policy of linking chip sales to its patents, which could move Qualcomm stock in the short term. Click to EnlargeThe bump looks like a heartbeat on an EKG, a spike of $3.50 per share that came after the Department of Justice uttered the magic words "national security" in defense of what Judge Lucy Koh and the Federal Trade Commission have called an illegal monopoly.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn a friend of the court brief filed with the Court of Appeals for the 9th Circuit, Justice was joined by the Departments of Defense and Energy in arguing that Koh's decision threatens American leadership in a crucial sector of the global economy.The letter is unequivocal: "Immediate implementation of the remedy could put our nation's security at risk, potentially undermining U.S. leadership in 5G technology and standard-setting, which is vital to military readiness and other critical national interests." * 10 Tech Stocks That Are Still Worth Your Time (And Money) Despite the letter, and a column from our own Bret Kenwell calling this "the perfect opportunity to profit from Qualcomm stock," shares fell steadily after the spike. They opened July 19 at about $74.40, $1.30 per share lower than before the DoJ letter came out. Qualcomm Stock and International TroublesOne reason was a $272 million fine the European Union levied against Qualcomm. This was for blocking a British modem chip maker named Icera, later bought by Nvidia (NASDAQ:NVDA) and closed, from the 3G baseband chip market a decade ago. Qualcomm calls the fine meritless.It's the second big EU fine in a year for Qualcomm, following a $1.1 billion levy over its treatment of Apple (NASDAQ:AAPL). Apple settled its legal argument with the San Diego company in May, sending the shares from the mid-50s to the mid-80s within a few days.Barclays (NYSE:BCS) analyst Blayne Curtis placed the Justice letter against the EU fine and dropped his rating on Qualcomm.The merit in the Justice Department's argument is nationalistic, not legal. It is a political letter. Questionable Tactics and QualcommQualcomm's tactics of "no license, no chips" have given it monopoly power as mobile operators and others begin spending big on 5G networking gear. Even Apple was forced to back down, seeing that Intel (NASDAQ:INTC) was too far behind Qualcomm to deliver a competitive design in a timely manner.But Qualcomm does face a potential rival in China's Huawei, called a big winner after Koh's decision . When the Apple case was still alive, in January, Qualcomm had reached an interim patent licensing deal with Huawei.The Koh decision, based on facts Apple gave the Federal Trade Commission, led veteran analyst Rob Enderle to say Huawei will now win the race to 5G, predicting the company will pivot to its own, proprietary designs and come back stronger, as Microsoft (NASDAQ:MSFT) did after its own antitrust fight.The argument is that Qualcomm CEO Steve Mollenkopf may be a son of a bitch, but he's our son of a bitch. The Bottom Line on Qualcomm stockKenwell's argument for Qualcomm stock is based on reading technical charts. Fundamentally he acknowledges the risk in Koh's decision and the European fines.But Qualcomm is now selling for less than four times its annual sales. Its dividend of 62 cents per share, well supported by earnings, represents a yield of 3.33%. That's better than what you get on a 30-year bond. This at a time when Adobe (NASDAQ:ADBE) is selling for over 15 times sales, without a dividend.If Qualcomm loses and must adjust its business practices, it's still going to win a big share of the 5G modem marketplace. If it wins, and the U.S. has now put its thumb on that scale, the stock is cheap.Dana Blankenhorn is a financial and technology journalist. He is the author of a new environmental story, Bridget O'Flynn and the Bear , available now at the Amazon Kindle store. Write him at email@example.com or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in MSFT, AAPL, and NVDA. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Tech Stocks That Are Still Worth Your Time (And Money) * 7 Marijuana Stocks With Critical Levels to Watch * 7 of the Best Smart-Beta ETFs to Target Right Now The post National Security as Protectionism Will Keep Driving Qualcomm Stock appeared first on InvestorPlace.
Advanced Micro Devices (NASDAQ:AMD) stock has been red-hot, hitting new 52-week highs earlier this month. When it comes to returns, AMD stock is crushing its peers like Nvidia (NASDAQ:NVDA) and Intel (NASDAQ:INTC).Source: Shutterstock Even better, InvestorPlace readers who followed my advice have been crushing the trade too, riding the surge from about $30 to $34 and cashing out on its run into resistance. Now we have to consider when to buy AMD stock again and decide whether it can break out over its stiff resistance. * 10 Tech Stocks That Are Still Worth Your Time (And Money) $34 has proven to be a tough nut to crack, but with the trend pointing higher, a breakout could be looming. AMD stock price fell slightly on Wednesday as it failed to exceed $74. Advanced Micro Devices stock was down over 2% in early trading on Thursday, thanks to a downgrade by Mizuho. In mid-afternoon trading today, the stock is down 0.2% to $32.90.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMizuho analysts downgraded the stock to "neutral" from "buy," but raised their price target to $37 from $33. The new target is more than 10% above the current price of Advanced Micro Devices stock. Not that it matters all that much, but it's worth pointing out that the Street-high target for AMD stock is $43, about 30% above its current levels.So can Advanced Micro Devices stock reach $43? Trading AMD Stock Click to EnlargeA look at the weekly chart above shows a pretty simple layout. AMD stock is being pushed higher by uptrend support (depicted by the blue line) and is finding resistance at $34. It temporarily broke above this mark earlier this week, but it wasn't able to stay above it.That's not surprising, given how much resistance the shares face at $33-$34. In fact, I'd argue that it's healthy for AMD stock to back off its recent run a bit. The more shallow the dips become and the more times it tests $34, the more likely it is to push through that level.This is setting up as a textbook ascending triangle formation. That's where a stock makes a series of higher lows, led higher by uptrend support, while regularly failing at a static level of resistance. That's exactly what Advanced Micro Devices stock is doing now.That doesn't guarantee that AMD stock will break out or that it will push through $34. Advanced Micro Devices stock very well could lose uptrend support and tumble lower in the ensuing months. I would absolutely love another shot at AMD near the 10-week moving average, which is currently at $30.60, or near its uptrend support.That would require a fall of about 7.5% of AMD stock price, which I'm not sure we'll get. The company reports its earnings on July 30, so investors looking to ride some pre-earnings momentum or those looking to avoid a potentially large move should keep that date in mind.So what's the plan? Those who love AMD stock can gobble it up on any of these pullbacks. For more prudent investors, buying Advanced Micro Devices stock on a deeper pullback or on a breakout over $34 are possibilities. Like I said, I would love to buy AMD after it retests its support. Valuing Advanced Micro DevicesWhy is Advanced Micro Devices stock doing so much better than its peers? In 2019, AMD stock is up 78%, compared to just 28% and 5% for NVDA and INTC, respectively. Over the past 12 months, the performance gaps are even more stark.AMD stock price has surged 97% in the last year, while NVDA has fallen almost 33%. Ouch. Intel is down about 5% during that span. This difference in performance is why I recommended a basket approach more than a year ago to protect against risk. While Nvidia has underperformed Intel, imagine owning just Intel or just Nvidia and watching AMD double. That's frustrating.Luckily though, AMD's fundamentals are improving.While Nvidia makes the best-in-class chips, AMD's products are making up ground. AMD's products are being incorporated into more PCs, gaming consoles and other systems, enabling the company to generate strong top- and bottom-line growth. While Intel is struggling to generate growth and while Nvidia has negative metrics in 2018, AMD continues to pump out solid results.Analysts, on average, expect AMD's revenue to eke higher by 6.3% this year to $6.88 billion. In 2020 though, the consensus forecast calls for a 22%surge to almost $8.5 billion. The company's earnings forecast is even more impressive, with average estimates calling for 43.5% growth this year and an acceleration up to 56% growth in 2020.In 2020, the consensus estimate calls for earnings of $1.03 per share, which leaves AMD stock trading at roughly 32 times next year's consensus EPS outlook. That's a little pricey, considering how much better Nvidia's margins are than AMD's. But assuming AMD can meet the consensus growth estimates, the valuation of AMD stock isn't all that unreasonable.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long NVDA. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Tech Stocks That Are Still Worth Your Time (And Money) * 7 Marijuana Stocks With Critical Levels to Watch * 7 of the Best Smart-Beta ETFs to Target Right Now The post Can AMD Stock Break Out to $37?Â appeared first on InvestorPlace.
Sometimes, a fantastic breakout by a high-quality growth stock starts in average or barely higher than usual volume. Why?
Thursday was an awful day for Netflix (NASDAQ:NFLX) stock -- probably its worst in eight years.That was the last time the company reported a quarterly loss in U.S. subscribers. And this morning, Netflix did just that: Over the last quarter, Netflix reported a net loss of 126,000 U.S. subscribers. Analysts with FactSet were expecting a 352,000 gain!Worldwide, Netflix did manage a net gain in subscribers (of 2.7 million)…but only half as many as expected (5 million).InvestorPlace - Stock Market News, Stock Advice & Trading TipsThis has created some controversy on Wall Street about whether to abandon NFLX - one of the most popular stocks around. Morgan Stanley says Netflix stock is still a long-term buy; Wedbush Securities says that is "idiotic."But ultimately, NFLX was down 11% on the news, and that says it all.This is, again, a significant reversal. Netflix stock had been chugging along just fine, prior to Thursday. And last month, we cashed out a 120% gain on NFLX in my Accelerated Profits service!So, today I want to talk about how to know when to sell.Our exit from NFLX was extremely well timed - but not because of any particular genius on my part. (Although I do like to think, after 40 years, I've learned a thing or two.)It was because I know how to read the signs. And if the other so-called "experts" had taken a good, hard look at Netflix's last earnings release - they might have avoided this, too!Back in June, Netflix stock was a great performer. And in the previous quarter, U.S. subscriptions had gained 1.7 million! Overall, subscriptions were up 26% year-over-year. And earnings per share were up, too, by 18.8%.But there was a big red flag, too. As I put it in my "sell" alert on June 11:"For the second quarter, Netflix provided weaker-than-expected guidance. As a result, analysts have slashed earnings per share estimates and are now looking for a 34.1% drop in earnings. Let's take that as our cue to exit. NFLX is up about 7% in the past week, so if you bought NFLX at the time of my original recommendation, you'll exit the stock with about a 120% gain. Sell NFLX."Analyst Earnings Revisions are a big factor in my Portfolio Grader system. And on Thursday, NFLX investors may have wished they'd heeded that warning. My guess is that a lot of folks "fell in love" with NFLX. But I don't believe in falling in love with a stock. I'm a numbers guy…and when the numbers turn south, I get out.In January, we took profits in NVIDIA Corporation (NASDAQ:NVDA) for similar reasons.NVDA stock is one of my favorites of recent years and had been a top performer for nearly three years. Demand for its graphics chips had skyrocketed - until it stumbled in the third quarter of 2018, when the company fell short of its sales forecasts.The company guided below expectations as well, which is what really hit the stock.As the share price grew more volatile and analysts kept lowering their forecasts for NVDA stock, I knew it was time to collect our winnings. So, in Accelerated Profits, we closed our position on a bounce for a whopping 166% profit.Now, a "sell" in our short-term system does not mean that a stock is a bad long-term investment. It very well could be a great long-term investment.But to generate consistent short-term profits, we've found that a decline in fundamental indicators is a clear sign to move on, take profits, and focus on stocks with superior ratings.Our system is very picky. It demands excellence from stocks. We don't let our money sit in a stock with declining ratings when we know it can be deployed into stronger stocks. After all, I believe our money deserves the very best, and you deserve the very best, too. Where I See the Best Opportunity NowThe investment potential in 5G wireless is huge; whoever controls 5G would essentially control the internet several years from now.There are a lot of companies out there that are jumping on the 5G bandwagon, but it's all about finding the right company that offers significant long-term potential.I have found just that name. In my Growth Investor service, I recommended a not-so-well-known electronics company that is helping some of the big ones move into the 5G space.To learn more, I strongly suggest you go here to watch my presentation on the huge technological shift going on at now. And if you sign up now, you'll receive my 1 Investment for the Coming 5G Revolution absolutely free. It tells you absolutely everything you need to know about 5G and the best way to play it. Click here for the details.The post Netflix Stock: How I Knew to Sell BEFORE It Got Crushed appeared first on InvestorPlace.