|Bid||0.00 x 1300|
|Ask||0.00 x 1000|
|Day's Range||107.38 - 109.88|
|52 Week Range||67.62 - 112.06|
|Beta (3Y Monthly)||1.43|
|PE Ratio (TTM)||15.17|
|Earnings Date||Oct 29, 2019 - Nov 4, 2019|
|Forward Dividend & Yield||1.50 (1.36%)|
|1y Target Est||116.71|
Nvidia (NASDAQ:NVDA) has been stuck in a trading range between $160 - $180 since July. Although Nvidia stock could easily break-out as its growth potential returns, China tariffs may pressure chip stocks in the weeks ahead.Source: Hairem / Shutterstock.com The investor who chooses to buy Nvidia stock, betting that the trade war tensions will end, risks macro headwinds. And those who wait it out may miss out on a rally if Nvidia reports strong quarterly results in November. What should investors do? Look Beyond Short-TermNvidia is perfectly positioned to embrace the long-term growth in AI, IoT, and autonomous capabilities. CEO Jen-Hsun describes AI as being thousands of different types of networks. These networks get more complex over time, and the data that gets processed gets bigger. As a result, AI software cannot predict what is going to get programmed. Nvidia's CUDA architecture is programmable, with its Tensor Cores are optimized for AI.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Deeply Discounted Energy Stocks to Buy Software capabilities that combine IoT with AI will be the next phase of growth. Nvidia is well-positioned to lead the market when this phase begins. Within many sectors, automation is the future and is something that will happen.This transformation is still in the early phases, so the company will not realize its potential until later. To position itself for these markets, Nvidia is investing heavily in itself. In its second quarter, the company reported GAAP operating expenses of $970 million. It is on-track to grow operating expenses in the high single digits.NVDA singled out AI, graphics, and self-driving cars are the key platforms that will drive its long-term growth. Despite GAAP EPS falling 49% to $0.90, Nvidia is clear on its Q3 outlook. It forecast revenue of $2.9 billion and GAAP and non-GAAP gross margins at 62% and 62.5%, respectively. Capital expenditures will be in the range of $100 million to $120 million. Nvidia's Outlook for GamingSeasonal strength for Nintendo Switch will result in a production ramp-up in Q2 and in Q3, then likely falling in Q4. RTX (real-time tracing) is a differentiating solution to GPUs made by Advanced Micro Devices (NASDAQ:AMD). In the last few months, Nvidia announced six blockbuster games that adopted RTX.There are now over 40 ISV tools that announced ray tracing and video editing, in the creative tools software space. Some of the applications have AI capabilities that fully utilize RTX.Looking ahead, NVDA stock may potentially price in the pickup in demand for RTX-powered GPUS and notebooks offering this technology. Nvidia also benefits from the trend of gamers demanding light notebooks that have powerful graphics. Its customers need such systems for 3D content creation and high-definition video editing and image optimization.The company introduced a new line of computers, called RTX Studio, that appears to such power users. Considering that the SUPER line of GPUs will spur sales in the quarters ahead and chances are good that the stock etches higher. Trade War Risks and Nvidia StockChip stocks are vulnerable to the tariff showdown between the U.S. and China. Such taxes hurt trade and weaken demand for semiconductor products. Nvidia is not immune to the impact escalating trade wars will have on trade.The lack of a trade deal between the two countries may threaten the Nvidia-Mellanox (NASDAQ:MLNX) merger. In March, Nvidia offered $6.9 billion, or $125 a share, for Mellanox and paid entirely in cash. MLNX stock topped $120 by May but fell to $107 recently. Markets are signaling a higher probability that the deal will fall through.Investors who held Qualcomm (NASDAQ:QCOM) and NXP Semiconductors (NASDAQ:NXPI) after the former offered to buy the latter did poorly holding NXPI stock. China's regulators failed to approve the deal in a timely fashion, forcing Qualcomm to abandon the deal. Valuation and Your TakeawayWall Street analysts are bullish on Nvidia stock and have an average $189.96 price target. Investors who prefer to build their own model may assign a ~7% revenue 5-year CAGR. In a DCF EBITDA Exit model that assumes revenue growth of up to 20%, the fair value is $186:(USD in millions) Input Projections Fiscal Years Ending 19-Jan 20-Jan 21-Jan 22-Jan 23-Jan 24-Jan Revenue 11,716 10,776 12,929 14,654 15,753 16,304 % Growth 20.60% -8.00% 20.00% 13.30% 7.50% 3.50% EBITDA 4,066 3,064 4,251 5,366 5,926 6,134 % of Revenue 34.70% 28.40% 32.90% 36.60% 37.60% 37.60%Source: finbox.ioStill, investors may look at Nvidia's intrinsic value based on future cash flow. In this scenario, NVDA stock has a significant downside (per simplywall.st).Investors willing to hold Nvidia for a few years should accumulate the stock if it falls. The trade war is a short-term headwind that will eventually get resolved as both countries negotiate.Disclosure: The author holds NXPI stock. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Deeply Discounted Energy Stocks to Buy * 7 Stocks to Buy In a Flat Market * 10 Stocks to Buy to Ride China's Emerging Wealth The post Buying Nvidia Stock Still Is a Great Move for the Long-Term Investor appeared first on InvestorPlace.
Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be...
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Chipmaker stocks, as measured by the Philadelphia Semiconductor Index (SOX), have been in turmoil recently. After reaching a 52-week high on July 25, 2019, the SOX plummeted by 13.1% to hit a recent intraday trading low just 11 days later on Aug. 5. The SOX has since recovered, closing 6.5% below that 52-week high on Sept. 4, but trade conflicts and slowing economic growth continue to cloud the outlook for the industry.
News Highlights NXP’s advanced Immersiv3D audio solution brings breakthrough cinema audio experience to homes at a fraction of the costPremieres NXP smart sound bar and AV.
NXP Semiconductors N.V. (NXPI) today announced that, as part of the Quarterly Dividend Program, its board of directors has approved the payment of interim dividend for the third quarter of 2019 of $ 0.375 per ordinary share, reflecting an increase of 50% from the prior quarterly dividends. The interim dividend will be paid on October 4, 2019 to shareholders of record on September 16, 2019. Cash dividends will be subject to the deduction of Dutch dividend withholding tax at the rate of 15 percent, which may be reduced in certain circumstances.
Volkswagen showcases future use cases with UWB equipped concept car: higher levels of theft protection, safety, convenience HAMBURG, Germany, Aug. 27, 2019 -- NXP.
After downgrading the chip sector almost a year ago, brokerage firm Raymond James now is seeing some attractive semiconductor stocks. They include ON Semiconductor and NXP Semiconductors.
Expectations for ON Semiconductor and NXP Semiconductors are now low enough to present a great buying opportunity, according to Raymond James.
Generally speaking the aim of active stock picking is to find companies that provide returns that are superior to the...
(Bloomberg) -- Semiconductor companies are wincing as consumers around the globe are buying fewer cars amid continuing trade tensions between the U.S. and China.China has been a pain point for the sector as the two countries continue to spar on trade, and chipmakers had braced for slumping demand in the country to dent performance. The automotive sector has emerged as one of the biggest sources of weakness and is now threatening to dampen the chances of a recovery in the latter half of the year.It has so far been an unfortunate year for automakers, as global sales shrank 6.5% from a year earlier in the first quarter of 2019, and 7% in the next three months, according to Bloomberg Intelligence. China led the decline with car sales in the country falling for 12 consecutive months through June, amid slowing economic growth, trade-related turmoil, and a weak consumer demand, exacerbated by newer and stricter emissions rules. With the U.S. and China ratcheting the turmoil up a notch this week, some say the risks of tariffs on auto imports is now higher.Many auto parts suppliers, as well as Ford Motor Co., have reported disappointing results and issued weak forecasts for the year, citing the China slowdown. And now the effect is rippling through the rest of the supply chain, hurting chipmakers and other industrial manufacturers.“China weakness was expected, but in all honesty, we were expecting a trade deal by now,” Piper Jaffray & Co. analyst Harsh Kumar said in an interview. Kumar, who covers semiconductor stocks, said the companies supplying the automotive market were still seeing growth in radar and electrification-related products, while the traditional, gas engine segment is getting hit hard.Most of the automotive chip manufacturers have a larger piece of their business associated with traditional auto, and “that is not doing so well because there isn’t any market share or penetration to be gained; it is simply a units game,” Kumar said, referring to the fewer number of cars being sold.Maxim Integrated Products Inc., which makes chips that are used in various parts of a car including lighting, infotainment and driver assistance systems, said it expected the calendar third quarter to be slow, due to a “soft environment” for automotive production. The company’s battery management systems used in electric vehicles will also have fewer shipments, given the market uncertainty in China, the company said.The concerns were echoed by NXP Semiconductors NV, which makes components that help a car to sense its environment and process that data. Maxim and NXP’s customers include auto suppliers such as Aptiv Plc, Lear Corp. and Visteon Corp. as well as Fiat Chrysler Automobiles NV. Other chipmakers with substantial auto market exposure include Infineon Technologies AG, Analog Devices Inc., Texas Instruments Inc., and Microchip Technology Inc.Meanwhile, Rockwell Automation Inc., which counts both automotive and semiconductor sectors among its customers, saw both markets decline in the quarter ending June 30.“Overall, the combination of production cuts and reductions in component inventory is having an significant impact,” Morgan Stanley’s Craig Hettenbach, who covers semiconductors, said in an email interview. The analyst said that while the weakness is most pronounced in China, Europe has also been below expectations from the beginning of the year. “There is a lot of focus on when China will provide incentives to stimulate demand, but company and investor expectations for stimulus are pretty low right now,” Hettenbach said.A respite is not expected anytime soon. According to Moody’s, global vehicle sales are expected to fall 3.8% in 2019, amid further weakening demand in China and Western Europe. The latest round of trade war-related tarriffs could make matters even worse.To contact the reporter on this story: Esha Dey in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Brad Olesen at email@example.com, Jennifer Bissell-Linsk, Morwenna ConiamFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Qualcomm (NASDAQ:QCOM) stock dropped again after reporting results that were short of estimates, posting on a non-GAAP basis net income of $1.2 billion, 81 cents per share, on revenue of $5.6 billion for the quarter ending in June. But QCOM stock watchers called the company's guidance "disappointing" because it stripped out its business with China's Huawei from the results.The shares lost about $3 on the news and ended the week just above $71 after touching $76.25 on July 29. This pushes the yield on the 62 cent per share dividend to 3.48%. The 30-year U.S. government bond currently yields just 2.49%.The numbers, however, have little to do with Qualcomm's business and more to do with its status as a legal and political pinata.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Qualcomm for AmericaAs I wrote on July 22, Qualcomm's legal claim linking patents to chip sales is now fully supported by the Trump administration, despite negative reaction from a court.Three agencies -- the Departments of Energy, Justice and Defense -- are now on the record arguing that legal action against the monopoly threatens national security. * 7 Stocks to Buy With Over 20% Upside From Current Levels The decision by U.S. District Court Judge Lucy Koh, an Obama appointee, calling Qualcomm's "no patent, no chips" practice illegal, continues to be fought by the administration, with letters to the Ninth Circuit Court of Appeals asking for a stay of the decision. Qualcomm for ChinaDespite administration rhetoric calling Qualcomm a bulwark against China's tech ambitions, Qualcomm continues to do business there. If anything, it's even more deeply involved with the world's second-biggest economy than ever before.Qualcomm recently signed a deal with Tencent Holdings (OTCMKTS:TCEHY) to collaborate on digital entertainment. This could result in the two companies jointly developing a mobile gaming device or smartphone. That's important as gaming shifts to online and mobile platforms, where Tencent is a clear leader.Qualcomm is also working with China to make 5G the standard communication system for self-driving cars. NXPI (NASDAQ:NXPI), which Qualcomm tried to buy last year, is behind a rival standard based on WiFi. A win for Qualcomm here could bring tens of billions of dollars in royalty payments down the road. The Legal DiscountHow well Qualcomm's doing depends a lot on whether you use GAAP or non-GAAP measurements.The former, which counts cash in escrow under legal dispute as income, shows the company earning $2.1 billion, or $1.75 per share of QCOM stock fully diluted, on revenue of $9.6 billion during the most recent quarter. Under non-GAAP accounting Qualcomm said it will earn just 65 cents-75 cents per share next quarter on $4.2-5.1 billion of revenue. * 7 A-Rated Stocks Under $10 In its latest report the company estimated it will get $4.7 billion from the settlement of its dispute with Apple (NASDAQ:AAPL), and those revenues are included in its GAAP calculations. Apple recently bought most of Intel's (NASDAQ:INTC) smartphone modem business for $1.2 billion, and plans to eventually replace Qualcomm modems with its own.Qualcomm CEO Steve Mollenkopf also said his company has yet to reach a final agreement with Huawei, so its outlook doesn't include those payments. He said Chinese carriers won't start launching 5G services until next year, eliminating a normal seasonal earnings boost. He predicted they will start seeing the full benefits of 5G in the first quarter of 2020. Bottom Line on QCOM StockThe uncertainty over China and its legal status means QCOM stock continues to be range-bound. Many analysts don't know what to think. What presents as a tech stock is trading like a law firm.The result is a bargain for income-oriented investors. Qualcomm easily out-earns its dividend and continues to accumulate cash. It also has more than $14 billion in cash and marketable securities on its books, meaning 34% of its assets are liquid. With older investors increasingly desperate for yield, this looks like an opportunity.For other investors, it looks like a speculation.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 firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in AAPL. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 of the Most Shorted Stocks in the Markets Right Now * 7 Charts That Should Concern Marijuana Stock Investors * 8 Monthly Dividend Stocks to Buy for Consistent Income The post Qualcomm Stock Watchers Eyeing Both the Legal Discount and the Dividend appeared first on InvestorPlace.
(Bloomberg) -- China’s plan to standardize the use of 5G for vehicles to talk to each other could lead to the U.S. falling behind in the commercialization of self-driving cars, according to Qualcomm Inc. China will be “saving hundreds, if not thousands, of lives much sooner than we will as we fumble to determine which is the standard that is best for the long-term road map in the Western world,” Patrick Little, a Qualcomm senior vice president, said in an interview. “If we can get around a common standard, we can deploy it more quickly, save a lot of money and save a lot of time.”Little’s comments are part of an effort by Qualcomm and more than 100 companies to push regulators worldwide to embrace a standard called C-V2X -- cellular vehicle-to-everything -- that will run on 5G. The technology would enable vehicles and infrastructure to beam real-time traffic data to one another and reduce accidents. Rival firms are lining up behind a Wi-Fi-based standards and pursuing a market for car electronics data transmission that IHS Markit estimates will grow to $9.2 billion by 2025.While proponents of the Qualcomm-backed standard say it’s faster and more reliable, companies including top automotive chipmaker NXP Semiconductors NV argue that an existing Wi-Fi-based technology called DSRC is good enough. Other backers of DSRC include General Motors Co., Volkswagen AG and Honda Motor Co.“The big thing is, it is available, it is proven, it has millions of miles driven and tested,” NXP President Kurt Sievers said in an interview.Choosing between the two standards is only one piece of the puzzle involved in making self-driving cars a reality. China is years behind the U.S. in terms of road testing robocars, with Alphabet Inc.’s Waymo and others having logged millions of test miles in California alone.Still, China is the world’s biggest auto market and has sent a clear signal it will embrace C-V2X. In October, the country announced plans to use the standard and set aside airwaves specifically for connected cars. That’s led 5G Automotive Association, a group founded in September 2016, to predict China will be first to get C-V2X cars on the road. Ford Motor Co. and Byton have disclosed plans to make vehicles that adopt the standard.In the U.S., the Trump Administration has yet to make a decision on which standard to back. The European Commission was poised to back DSRC, but the proposal was shot down by member states in July. Elsewhere in Asia, Japan is planning to allocate spectrum to DSRC, and South Korea intends to set aside airwaves for both standards.DSRC’s entrenched position will hinder C-V2X’s adoption outside of China in the next three years, Bloomberg NEF wrote in an April report. But longer-term, the U.S., Korea and Japan are likely to switch to C-V2X as those countries aggressively deploy 5G networks, the analysts said.The prospect of improving road safety is a major incentive for regulators to speed up their decision-making. The University of Michigan Transportation Research Institute estimated last year that as many as 8.1 million car crashes and 44,000 deaths could be prevented in the U.S if the federal government picked a technology this year compared with three years from now.\--With assistance from Ian King and Kevin E Heinz.To contact the reporter on this story: Ed Ludlow in San Francisco at email@example.comTo contact the editors responsible for this story: Young-Sam Cho at firstname.lastname@example.org;Craig Trudell at email@example.comFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.