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https://finnhub.io/api/news?id=0cf7d546799c098ccaabd72cb5aed35b46e653a383fe1206209d662db3dd4401 | Here`s What You Missed in Crypto This Week | Looking for stock market analysis and research with proves results? Zacks.com offers in-depth financial research with over 30years of proven results. | 2023-03-10T00:50:00 | Thefly.com | This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.
Copyright 2023 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.26% per year. These returns cover a period from January 1, 1988 through July 3, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.
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https://finnhub.io/api/news?id=83a3e6f81f164989a10f685e4ce5fd26c06477621ea182b014b731c2173a0ee9 | NVIDIA put buyer realizes 166% same-day gains | Looking for stock market analysis and research with proves results? Zacks.com offers in-depth financial research with over 30years of proven results. | 2023-03-09T23:00:00 | Thefly.com | This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.
Copyright 2023 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.26% per year. These returns cover a period from January 1, 1988 through July 3, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.
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https://finnhub.io/api/news?id=acca5dbae0a470269c397778aeba500c76786573405238493a514eea2cb7cd04 | This Growth ETF Has a Massive 11.4% Dividend Yield | Looking for stock market analysis and research with proves results? Zacks.com offers in-depth financial research with over 30years of proven results. | 2023-03-09T20:37:00 | TipRanks | This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.
Copyright 2023 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.26% per year. These returns cover a period from January 1, 1988 through July 3, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.
Visit Performance Disclosure for information about the performance numbers displayed above.
Visit www.zacksdata.com to get our data and content for your mobile app or website.
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https://finnhub.io/api/news?id=7dec12552769dde6816c7d7f4b7327b0e9f38e6635566145db5f6572c4674540 | Ghosts Of 2008 Return To Markets? | Looking for stock market analysis and research with proves results? Zacks.com offers in-depth financial research with over 30years of proven results. | 2023-03-09T20:34:00 | TalkMarkets | This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.
Copyright 2023 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.26% per year. These returns cover a period from January 1, 1988 through July 3, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.
Visit Performance Disclosure for information about the performance numbers displayed above.
Visit www.zacksdata.com to get our data and content for your mobile app or website.
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https://finnhub.io/api/news?id=52d5625d36fcbb67ee9e42f717c58631cb2df57721d7c5e41cff1ef1dc87ae96 | U.S. to further tighten chip gear export to China restrictions, Bloomberg says | Looking for stock market analysis and research with proves results? Zacks.com offers in-depth financial research with over 30years of proven results. | 2023-03-09T19:09:00 | Thefly.com | This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.
Copyright 2023 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.26% per year. These returns cover a period from January 1, 1988 through July 3, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.
Visit Performance Disclosure for information about the performance numbers displayed above.
Visit www.zacksdata.com to get our data and content for your mobile app or website.
Real time prices by BATS. Delayed quotes by FIS.
NYSE and AMEX data is at least 20 minutes delayed. NASDAQ data is at least 15 minutes delayed.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. | NVDA |
https://finnhub.io/api/news?id=7f26872edaf486265a1bb23594ab4260470bbcc9955658700b1dba5479669c4d | Notable Friday Option Activity: NVDA, OZK, GXO | Looking for stock market analysis and research with proves results? Zacks.com offers in-depth financial research with over 30years of proven results. | 2023-03-09T18:29:00 | Stock Options Channel | This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.
Copyright 2023 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.26% per year. These returns cover a period from January 1, 1988 through July 3, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.
Visit Performance Disclosure for information about the performance numbers displayed above.
Visit www.zacksdata.com to get our data and content for your mobile app or website.
Real time prices by BATS. Delayed quotes by FIS.
NYSE and AMEX data is at least 20 minutes delayed. NASDAQ data is at least 15 minutes delayed.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. | NVDA |
https://finnhub.io/api/news?id=1296e86b120dae6a4a7df2cbe4a155ce76996b4d9d6dd86a39048d65606f1f82 | Buy Nvidia (NVDA) & Broadcom (AVGO) Stock for More Upside? | Let's see if investors should still buy Nvidia and Broadcom stock at their current levels and check the outlook of these semiconductor giants. | 2023-03-09T15:36:11 | Yahoo | Buy Nvidia (NVDA) & Broadcom (AVGO) Stock for More Upside?
Among the broader technology sector, many semiconductors stocks fell mightily last year and have been great rebound prospects for 2023.
Nvidia (NVDA) stock has climbed +60% YTD and Broadcom (AVGO) is up +11%, outperforming the S&P 500’s +4% and the Nasdaq’s +8%.
Let’s see if investors should still buy Nvidia and Broadcom stock at their current levels and check the outlook of these semiconductor giants.
Momentum
Much optimism has been building for semiconductor stocks after unprecedented declines last year as high inflation and rising rates crippled these equities along with the broader technology sector.
Many semiconductor stocks participated in early rallies this year but Nvidia stock especially stood out as shares of NVDA soared in January on signs of easing inflation.
Reassuring investors was Nvidia surpassing Q4 top and bottom line expectations in February with Broadcom doing the same last Thursday. This has been a further catalyst for both stocks with Broadcom sporting an “A” Zacks Style Scores grade for Momentum while Nvidia sports a “B”.
Image Source: Zacks Investment Research
Valuation
With Nvidia and Broadcom stock soaring over the last six months, investors will want to monitor their valuation. In this regard, Broadcom stands out with a “B” Style Scores grade for Value with Nvidia landing a “D” grade at the moment.
AVGO trades at $622 per share but just 15.6X forward earnings which is nicely below its industry average of 19.4X and the S&P 500’s 18.3X. Even better, Broadcom stock trades 36% beneath its decade high of 24.5X and at a slight discount to the median of 16.5X.
Image Source: Zacks Investment Research
Pivoting to Nvidia, NVDA shares trade at $234 and 53.8X forward earnings which is well above the industry average of 23.4X, but the company is a leader. However, this is notably above the S&P 500 as well, and while Nvidia trades 42% below its decade high of 93.5X it also trades 42% above the median of 37.9X.
Growth
The growth prospects of Nvidia and Broadcom could be a further indication of more upside in their stocks and their outlooks are still attractive. Broadcom has an “A” Style Scores grade for Growth with Nvidia at a “B”.
Nvidia’s year-over-year growth is very appealing and Broadcom’s bottom line remains massive with the company still growing.
Broadcom’s earnings are expected to jump 9% in fiscal 2023 and rise another 6% in FY24 at $43.65 per share. On the top line, sales are forecasted to be up 6% this year and rise another 4% in FY24 to $36.80 billion.
Image Source: Zacks Investment Research
Turning to Nvidia, its fiscal 2024 earnings are projected to soar 34% and climb another 33% in FY25 at $5.98. Sales are expected to rise 10% in FY24 and leap another 24% in FY25 to $36.83 billion
Image Source: Zacks Investment Research
Takeaway
Nvidia and Broadcom stock both land a Zacks Rank #3 (Hold). There could be better buying opportunities ahead after such stellar rallies to start the year but holding on to both stocks at their current levels could be rewarding especially when considering their momentum at the moment.
While NVDA and AVGO shares may look due for a large pullback their historical performances also indicate it may be worth holding on to these semiconductor giants.To that point, Nvidia stock is up a mind-boggling +7,308% over the last decade with Broadcom up an impressive +1,633% to easily top the Nasdaq’s +249% and the S&P 500‘s +159%.
Furthermore, Nvidia should continue offering valuable exposure to visual computing technologies through its graphic chips with Broadcom providing diversity through a broad range of semiconductor devices and solutions.
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NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
To read this article on Zacks.com click here. | NVDA |
https://finnhub.io/api/news?id=30d04ff509b630b703de5fdd797484b7f6327aa290f8aa819de79fbb05a4026a | Groq adapts Meta's chatbot for its own chips in race against Nvidia | Groq, a Silicon Valley chip startup founded by a former Alphabet Inc engineer, said on Thursday it has adapted technology similar to the underpinnings of the wildly popular ChatGPT to run on its chips. Groq modified LLaMA, a large language model released last month by Facebook parent Meta Platforms Inc that can be used to power bots to generate human-like text. The move is significant because Meta's researchers originally developed LLaMA using chips from Nvidia Corp, which has a market share of nearly 90% for AI computing according to some estimates. | 2023-03-09T15:18:57 | Yahoo | Groq adapts Meta's chatbot for its own chips in race against Nvidia
By Jane Lanhee Lee and Stephen Nellis
OAKLAND, California (Reuters) - Groq, a Silicon Valley chip startup founded by a former Alphabet Inc engineer, said on Thursday it has adapted technology similar to the underpinnings of the wildly popular ChatGPT to run on its chips.
Groq modified LLaMA, a large language model released last month by Facebook parent Meta Platforms Inc that can be used to power bots to generate human-like text.
The move is significant because Meta's researchers originally developed LLaMA using chips from Nvidia Corp, which has a market share of nearly 90% for AI computing according to some estimates. Showing that a cutting-edge model can be moved to Groq's chips easily could help the startup prove that its products are a viable alternative to Nvidia.
Groq has been trying to chip away at Nvidia's market share, along with startups such as SambaNova and Cerebras and big companies like Advanced Micro Devices Inc and Intel Corp.
Efforts to find alternative chips to Nvidia's have gained extra steam with the popularity of ChatGPT which has focused attention on Nvidia's dominant role in AI. The public battle to dominate the AI technology space kicked off late last year with the launch of Microsoft Corp-backed OpenAI's ChatGPT and prompted tech heavyweights from Alphabet to China's Baidu Inc to trumpet their own offerings.
Meta made its code available to researchers for noncommercial use. Groq used Meta's model but stripped out the code that was included in order to make the model run on an Nvidia chip, Groq CEO Jonathan Ross told Reuters.
Groq then ran that model through Groq Compiler which automatically adds specific code for it to run on its own computing system. A compiler turns code into ones and zeros so a chip can read them.
Ross said the company's goal is to make it easy to move models from Nvidia's chips to its own. He said using the Groq system can also eliminate engineering effort each time changes are made to the LlaMA or other models to get it to work on the chips.
Meta Platforms declined to comment. The company has been working on making it easier for developers to use non-Nvidia chips and in October launched a set of free software tools for AI applications that enable switching back and forth between Nvidia and AMD chips.
(Reporting by Jane Lanhee Lee in Oakland, California, and Stephen Nellis in San Francisco; Editing by Matthew Lewis) | NVDA |
https://finnhub.io/api/news?id=a082fc13242168c7eae491de76f4f61ca06d7f480787438256b467edc7289ccb | Nvidia Stock Forecast -- NVDA Chart for Technical Analysis (Will the Pop Drop?) | Nvidia (NASDAQ: NVDA) is arguably the top AI stock on the planet. With that said, NVDA stock has run hard from the $108.13 lows seen in October 2022 and is trading at a premium valuation. In the video below, I provide Nvidia stock analysis regarding its future in artificial intelligence, as well as technical analysis showing you where the stock could be headed next. | 2023-03-09T13:23:31 | Yahoo | Nvidia Stock Forecast -- NVDA Chart for Technical Analysis (Will the Pop Drop?)
Nvidia (NASDAQ: NVDA) is arguably the top AI stock on the planet. With that said, NVDA stock has run hard from the $108.13 lows seen in October 2022 and is trading at a premium valuation. In the video below, I provide Nvidia stock analysis regarding its future in artificial intelligence, as well as technical analysis showing you where the stock could be headed next. | NVDA |
https://finnhub.io/api/news?id=413e0e04cd4a588f640c790e5c1e1c1d78e29437824759d478812d14be67ade2 | NVIDIA Corp. stock falls Thursday, underperforms market | Shares of NVIDIA Corp. slipped 3.08% to $234.36 Thursday, on what proved to be an all-around grim trading session for the stock market, with the S&P 500... | 2023-03-09T09:14:00 | MarketWatch | Shares of NVIDIA Corp.
NVDA,
+0.37%
slipped 3.08% to $234.36 Thursday, on what proved to be an all-around grim trading session for the stock market, with the S&P 500 Index
SPX,
-0.53%
falling 1.85% to 3,918.32 and Dow Jones Industrial Average
DJIA,
-0.43%
falling 1.66% to 32,254.86. NVIDIA Corp. closed $55.10 short of its 52-week high ($289.46), which the company achieved on March 29th.
Trading volume (50.0 M) eclipsed its 50-day average volume of 48.8 M.
Editor's Note: This story was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones and FactSet. See our market data terms of use. | NVDA |
https://finnhub.io/api/news?id=bd3edecfe17ac267bf7a35a52eb125eba106d851455ef709ee7763c1056d4941 | Bitcoin tumbles, as Silvergate Bank’s collapse highlights the biggest threat to U.S. crypto industry | The latest Distributed Ledger column from MarketWatch: a weekly look at the most important moves and news in crypto. | 2023-03-09T07:59:00 | MarketWatch | An earlier version of this article incorrectly described Signature Bank as a crypto lender. The article has been corrected.
Hello! Welcome back to Distributed Ledger. This is Frances Yue, crypto reporter at MarketWatch.
Major cryptocurrencies tumbled Thursday after Silvergate Capital Corp SI. on Wednesday said it intended to wind down operations and voluntarily liquidate its subsidiary Silvergate Bank, a crypto-friendly lender, a week after the La Jolla, Calif.-based company said in a regulatory filing that it was at risk of “being less than well-capitalized.”
I spoke to Matt Hougan, chief investment officer at Bitwise Asset Management, who said the Silvergate woes point to “the biggest threat” for the crypto industry in the U.S.
As always, find me on Twitter at @FrancesYue_ to share any thoughts on crypto, this newsletter, or your personal stories with digital assets.
The Silvergate woes
The liquidation of Silvergate Bank might accelerate a “concerted effort to wall off the U.S. banking system from the crypto industry,” said Bitwise’s Hougan. Such efforts will introduce more risks to the crypto market, according to Hougan.
See: Silvergate Capital stock tanks as company plans to wind down its crypto-friendly bank
Silvergate’s collapse means the end of a key player that enabled banking for many crypto companies, and is likely to intensify the regulatory scrutiny around banks’ relationship with digital assets entities, noted Hougan.
Still, it is fortunate for the crypto industry that Silvergate’s liquidation is happening recently, instead of a few years ago, when the lender was arguably the only bank that was willing to work with crypto clients in the U.S., according to Hougan.
Banks have traditionally been reluctant to provide services to crypto entities, partly due to a lack of regulation, according to industry participants. Founded in 1988, Silvergate started taking crypto clients in 2013, when the lender began to see rapid growth.
Now, even though the crypto industry will be hit by Silvergate’s crash, it has grown large enough to weather out the demise of one bank, said Hougan.
New York-based Signature Bank SBNY said Thursday it’s maintaining a “strong, well-diversified financial position and limited digital-asset related deposit balances in the wake of industry developments.” Shares fell more than 12% on Thursday amid a broad bank selloff in the wake of the announced Silvergate winddown and as shares of SVB Financial Group SIVB plunged.
Signature Bank provides deposit services for its clients’ digital assets, but does not invest in, does not trade, does not hold on its own balance sheet or provide custody of digital assets, and does not lend against or make loans collateralized by such assets, the company said.
Some large traditional institutions such as JPMorgan Chase & Co JPM, have also been working with a few crypto companies.
See: Signature Bank says its financial position is ‘strong’ but stock falls anyway
“The global banking system is going to find a way to have crypto as a customer,“ said Hougan. “I suspect we will find a way in the US for the more regulated parts of the crypto industry to have more stable traditional banking relationships,” noted Hougan.
The crypto market capitalization stands at close to $1 trillion, down over 60% from its all-time high of $2.8 trillion in November 2021, while still up massively from below $400 billion in 2019, according to data from CoinMarketCap.
JPMorgan and Gemini
Crypto exchange Gemini Trust has denied that JPMorgan is ending its banking relationship with the company, which was reported by CoinDesk earlier Wednesday citing an anonymous source. “Gemini’s banking relationship remains intact with JPMorgan,” the crypto exchange wrote on Twitter.
JP Morgan reportedly took on Gemini and Coinbase as customers in 2020, according to a Wall Street Journal article.
Representatives at Coinbase didn’t respond to MarketWatch’s request seeking comment. The exchange told CoinDesk that its banking relationship with JPMorgan remains intact.
See also: Fed’s Barr: Recent move to safeguard banks from crypto doesn’t mean the central bank is against innovation
SEC’s action against BKCoin
The U.S. Securities and Exchange Commission on Monday announced an emergency action against Miami-based investment adviser BKCoin Management LLC and one of its principals, Kevin Kang, alleging that they are in connection with a crypto-asset fraud scheme.
The SEC said in a statement that it successfully obtained an asset freeze, appointment of a receiver, and other emergency relief. The emergency action was filed under seal on Feb. 23 and unsealed Monday, according to the SEC.
BKCoin raised around $100 million from at least 55 investors to invest in crypto between October 2018 and September 2022, but the firm and Kang allegedly used the money for personal use and Ponzi-like payments, according to the SEC. Ponzi schemes refer to frauds that generate returns for earlier investors with money raised from later investors.
MarketWatch’s Anushree Dave wrote more about it here.
Crypto in a snap
Bitcoin lost 9% in the past week and was trading at around $20,806 on Thursday, according to CoinDesk data. Ether tumbled 7.5% in the same period to around $1,482.
|Biggest gainers||Price||%7-day return|
|LEO Token||$3.37||1%|
|USDD||$1||0.8%|
|TrueUSD||$1||0.4%|
|Edgecoin||$1||0.4%|
|cUSDC||$0.02||0.4%|
|Source: CoinGecko|
|Biggest decliners||Price||%7-day return|
|Stacks||$0.59||-40.3%|
|SingularityNET||$0.35||-35%|
|Render||$1.09||-30%|
|Frax Share||$8.39||-29.8%|
|Mina Protocol||$0.69||-20.6%|
|Source: CoinGecko|
Crypto companies, funds
Shares of Coinbase Global Inc. COIN declined 8.2% for the week to around $58.51. MicroStrategy Inc. MSTR lost 15% thus far on the week, to $215.08.
Crypto mining company Riot Blockchain Inc. RIOT dropped almost 10%, to $5.59 as of Thursday. Shares of rival Marathon Digital Holdings Inc. MARA tumbled 11.2% to $5.56 over the past week. Ebang International Holdings Inc. EBON traded 12% lower over the past week to around $6.18.
Overstock.com Inc. shares OSTK retreated 3.5% to $18.11 over the week.
Shares of Block Inc. SQ, formerly known as Square, slid 4.9% to $74.25 for the week thus far. Tesla Inc. TSLA shares went down 8.6% to $174.43.
PayPal Holdings Inc.’s PYPL stock gained 2.7% over the week to trade at around $76.09. Nvidia Corp.’s NVDA edged up 0.9% to $235.24 for the past week.
Advanced Micro Devices Inc. AMD shares went up 4.7% to $84.22 for the week.
Among crypto funds, ProShares Bitcoin Strategy BITO declined 8% over the week to $12.68 Thursday, while counterpart Short Bitcoin Strategy ETF BITI rallied 8% to $30.90. Valkyrie Bitcoin Strategy ETF BTF lost 8% over the past week to $8.09, while VanEck Bitcoin Strategy ETF XBTF fell 8.4% to $20.59.
Grayscale Bitcoin Trust GBTC gained 7.2% over the past five days to $11.79 on Thursday. | NVDA |
https://finnhub.io/api/news?id=69d36e0367d8a3097cdc33fdc89768db138c345f2a2d58fbe27d25bb79a1954f | Forget the AI Hype: Nvidia's Road to $1 Trillion Is This | In this video, I will talk about Nvidia's (NASDAQ: NVDA) road to a $1 trillion market opportunity. Forget about the ChatGPT hype for a moment and let's focus on Nvidia cloud gaming, Omniverse, automotive, and the rest of the business. | 2023-03-09T07:30:00 | Yahoo | Forget the AI Hype: Nvidia's Road to $1 Trillion Is This
In this video, I will talk about Nvidia's (NASDAQ: NVDA) road to a $1 trillion market opportunity. Forget about the ChatGPT hype for a moment and let's focus on Nvidia cloud gaming, Omniverse, automotive, and the rest of the business. | NVDA |
https://finnhub.io/api/news?id=7f46a18b754ece50c3e6cb67ec28f8fd3cbc78be0c215e3ecb1d50018ea7af97 | Nvidia, Broadcom, Mobileye Peer Etches Buy Point With 67% Growth | As semiconductor design peers Nvidia, Broadcom and Mobileye show strength, Monolithic Power Systems nears a breakout. | 2023-03-09T07:27:46 | Yahoo | Nvidia, Broadcom, Mobileye Peer Etches Buy Point In Sketchy Market
As semiconductor design peers Nvidia, Broadcom and Mobileye show strength, Monolithic Power Systems nears a breakout.
As semiconductor design peers Nvidia, Broadcom and Mobileye show strength, Monolithic Power Systems nears a breakout.
Mark Spitznagel and Nassim Taleb have been watching for black swans for decades. "We’ve never seen anything like this level of total debt and leverage in the system," he tells Fortune. "It's an experiment."
Warren Buffett is undeniably the most famous and influential investor in modern history, based on his extraordinary performance record. Not surprisingly, the investment portfolio of Berkshire Hathaway Inc. (BRK.A), the holding company employing the Oracle of Omaha as chairman and CEO, receives wide media attention and scrutiny, even though Buffett is no longer making every investment decision. Despite his unparalleled success, Buffett's investment model has long been transparent, straightforward, and consistent.
Stocks have blown past expectations for 2023 – but some analysts are bracing for a sell-off as the market approaches record highs.
The JPMorgan Equity Premium Income ETF’s (NYSEARCA:JEPI) combination of high yield and monthly payments has quickly made it one of the market’s most popular ETFs. Investors who like JEPI’s style now have another high-yield competitor to consider — the NEOS S&P 500 High Income ETF (BATS:SPYI), which also pays on a monthly basis and yields 10.7%. Let’s take a closer look at this intriguing new option for high-yield investors. What is SPYI ETF’s Strategy? Launched in August of 2022, SPYI is still a
Just because you retire doesn't mean you have to stop working. And when work is an option rather than a requirement, it's possible to select a low-stress job that multiplies fulfillment without adding anxiety - but still provides a bit … Continue reading → The post 12 Low-Stress Jobs You Can Do in Retirement appeared first on SmartAsset Blog.
Berkshire Hathaway historically reports its quarterly financial results on weekends, and CEO Warren Buffet has a simple reason why. Berkshire (ticker: BRK.A, BRK.B) reported second-quarter earnings Saturday morning. Many other public companies, however, release their earnings results during the trading week, either before the market opens or after the closing bell.
The market rally is at an infection point after notable losses. Here's what to do. Warren Buffett's Berkshire earnings rose.
Is there a point at which I should stop reinvesting stock dividends and invest the money or save the cash? -Anonymous Many financial experts recommend that you reinvest dividends most of the time – and I'm inclined to agree. The … Continue reading → The post Ask an Advisor: Should I Stop Reinvesting Dividends? appeared first on SmartAsset Blog.
There are many different approaches and strategies for retirement investing that might appeal to you. But how do you tell if a certain strategy works for your situation? When evaluating different approaches, consider how each strategy is put together and … Continue reading → The post Here's How Much to Keep in Stocks, Bonds and Cash in Retirement appeared first on SmartAsset Blog.
The week ahead will feature a crucial inflation report and earnings out of Disney, UPS, and Alibaba as second quarter earnings season winds down.
(Bloomberg) -- Dan Loeb is hardly the first Wall Street titan to lament how meme stock traders have made short selling a perilous endeavor. But that Loeb, who runs the hedge fund Third Point LLC, did so now is what’s interesting.Most Read from BloombergTexas Power Prices to Surge 800% on Sunday Amid Searing HeatNetanyahu Seeks to Change How Judges Are Named, Then Stop RevampChina Embassy Rips ‘Brutal’ Russia Border Incident in Rare MoveThe Most Dangerous Job for Lawyers Is Being on Trump’s Legal
AustralianSuper, one of the world’s largest pensions, halved its Apple stock investment and sold Microsoft stock, while buying shares of Tesla and Nvidia.
One in 6 asset and wealth management companies will be bought or shut down in the next five years, according to a PwC survey of asset managers and institutional investors.
Travel scams are on the rise. Don't be a victim.
Warren Buffett's Berkshire Hathaway operating profit rose by 10%. BRKB stock is just out of buy range.
VZ stock provides a dividend but a buyback has been shelved amid 5G wireless investments. When will revenue growth reaccelerate?
Will generative artificial intelligence boost Palantir stock in the commercial market amid slowing revenue growth for the company?
Retirement account withdrawals not only help you cover basic living expenses, but they also can fund the lifestyle you've always envisioned in your golden years. That money, however, can have unintended tax consequences. Required minimum distributions (RMDs) and other withdrawals … Continue reading → The post Social Security Taxes Can Hit You Hard in Retirement. Here's How to Lower Them appeared first on SmartAsset Blog.
Dubbed the Oracle of Omaha, Warren Buffett is renowned for his simple and frugal lifestyle. Despite being the sixth richest person globally, with a net worth estimated at $117.9 billion, Buffett continues to live in the same modest home in Omaha that he purchased in 1958 for just $31,500. Adjusted for inflation, that amount today would be approximately $328,990.80, a mere 0.000279% of his total net worth. Buffett has consistently ranked the purchase of his home as the third-best investment he ha
As a pandemic-inspired boom ends, entrepreneurs and giant corporations alike are counting on customers to keep accumulating more stuff than they can squeeze into their homes. | NVDA |
https://finnhub.io/api/news?id=72d098fac7c287bbb1c63ec42e7c17583323ef32038075659b86954e3e755b6d | Microsoft's (MSFT) 10-Year Deal to Sony for Call of Duty on PS | Microsoft (MSFT) offers to license Activision's Call of Duty to Sony for 10 years to address concerns raised by Competition and Markets Authority in UK. | 2023-03-09T07:14:03 | Yahoo | Microsoft's (MSFT) 10-Year Deal to Sony for Call of Duty on PS
Microsoft's MSFT latest offer to Sony SONY comes as it faces increased regulatory scrutiny over its $69 billion buyout deal for Activision Blizzard ATVI.
The company has offered Sony a 10-year contract to make each new Call of Duty release available on PlayStation the same day it comes to Xbox. The deal will also include streaming and subscription parity to put future Call of Duty games on the PlayStation Plus subscription service on day one, just like its Game Pass.
The offer is outlined in Microsoft’s response to the Competition and Markets Authority’s provisional findings on the deal, released last month.
This follows Sony’s disapproval over Microsoft's earlier offer to keep the popular game series made by Activision Blizzard on PlayStation for three years after the current agreement expires.
However, Sony Interactive Entertainment ("SIE") has raised concerns about the potential for unsustainable licensing costs that could force the company to raise prices. After the Activision deal, Microsoft will get to choose the size of licensing fees for Sony to have Call of Duty on PlayStation Plus. Sony argues that the Xbox maker could make this fee too expensive.
SIE alleges that this could result in Call of Duty becoming a Game Pass exclusive by default, dominating multi-game subscription services in the future.
Microsoft Corporation Price and Consensus
Microsoft Corporation price-consensus-chart | Microsoft Corporation Quote
Microsoft’s Deal With Other Tech Players to Convince Sony
Microsoft has been offering concessions in the form of multi-year deals involving Call of Duty to appease regulators’ concerns over its proposed Activision Blizzard acquisition.
It was reported earlier that the European Union will not be blocking this deal after the Xbox maker signed 10-year deals with Nintendo and Nvidia NVDA to bring Xbox and Activision games (including Call of Duty) on their respective services.
Last month, Microsoft and NVDA announced that the companies have agreed to a 10-year partnership to bring Xbox PC games to the NVIDIA GeForce NOW cloud gaming service, which has more than 25 million members in over 100 countries.
The agreement will enable gamers to stream Xbox PC titles from GeForce NOW to PCs, macOS, Chromebooks, smartphones and other devices. It will also enable Activision Blizzard PC titles, such as Call of Duty, to be streamed on GeForce NOW after Microsoft’s acquisition of Activision closes.
Moreover, this Zacks Rank #3 (Hold) company struck a 10-year agreement with Nintendo under which Call of Duty will be available to Nintendo players on the same day as Xbox with full feature and content parity. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Such deals have been part of Microsoft’s attempt to pressure Sony into accepting a similar offer and allay regulatory competition concerns.
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To read this article on Zacks.com click here. | NVDA |
https://finnhub.io/api/news?id=94a58a0efbcf540c2466c4d4d1534d0b5b566d3239a2dd713653e58b4d55f931 | The Best Stocks to Invest $20,000 in Right Now | Growth is out of favor right now, and that's why investors should start taking a hard look at these two stocks. | 2023-03-09T07:10:00 | Yahoo | The Best Stocks to Invest $20,000 in Right Now
Growth is out of favor right now, and that's why investors should start taking a hard look at these two stocks.
Growth is out of favor right now, and that's why investors should start taking a hard look at these two stocks.
Mark Spitznagel and Nassim Taleb have been watching for black swans for decades. "We’ve never seen anything like this level of total debt and leverage in the system," he tells Fortune. "It's an experiment."
Warren Buffett is undeniably the most famous and influential investor in modern history, based on his extraordinary performance record. Not surprisingly, the investment portfolio of Berkshire Hathaway Inc. (BRK.A), the holding company employing the Oracle of Omaha as chairman and CEO, receives wide media attention and scrutiny, even though Buffett is no longer making every investment decision. Despite his unparalleled success, Buffett's investment model has long been transparent, straightforward, and consistent.
Stocks have blown past expectations for 2023 – but some analysts are bracing for a sell-off as the market approaches record highs.
The JPMorgan Equity Premium Income ETF’s (NYSEARCA:JEPI) combination of high yield and monthly payments has quickly made it one of the market’s most popular ETFs. Investors who like JEPI’s style now have another high-yield competitor to consider — the NEOS S&P 500 High Income ETF (BATS:SPYI), which also pays on a monthly basis and yields 10.7%. Let’s take a closer look at this intriguing new option for high-yield investors. What is SPYI ETF’s Strategy? Launched in August of 2022, SPYI is still a
Just because you retire doesn't mean you have to stop working. And when work is an option rather than a requirement, it's possible to select a low-stress job that multiplies fulfillment without adding anxiety - but still provides a bit … Continue reading → The post 12 Low-Stress Jobs You Can Do in Retirement appeared first on SmartAsset Blog.
Berkshire Hathaway historically reports its quarterly financial results on weekends, and CEO Warren Buffet has a simple reason why. Berkshire (ticker: BRK.A, BRK.B) reported second-quarter earnings Saturday morning. Many other public companies, however, release their earnings results during the trading week, either before the market opens or after the closing bell.
The market rally is at an infection point after notable losses. Here's what to do. Warren Buffett's Berkshire earnings rose.
Is there a point at which I should stop reinvesting stock dividends and invest the money or save the cash? -Anonymous Many financial experts recommend that you reinvest dividends most of the time – and I'm inclined to agree. The … Continue reading → The post Ask an Advisor: Should I Stop Reinvesting Dividends? appeared first on SmartAsset Blog.
There are many different approaches and strategies for retirement investing that might appeal to you. But how do you tell if a certain strategy works for your situation? When evaluating different approaches, consider how each strategy is put together and … Continue reading → The post Here's How Much to Keep in Stocks, Bonds and Cash in Retirement appeared first on SmartAsset Blog.
The week ahead will feature a crucial inflation report and earnings out of Disney, UPS, and Alibaba as second quarter earnings season winds down.
(Bloomberg) -- Dan Loeb is hardly the first Wall Street titan to lament how meme stock traders have made short selling a perilous endeavor. But that Loeb, who runs the hedge fund Third Point LLC, did so now is what’s interesting.Most Read from BloombergTexas Power Prices to Surge 800% on Sunday Amid Searing HeatNetanyahu Seeks to Change How Judges Are Named, Then Stop RevampChina Embassy Rips ‘Brutal’ Russia Border Incident in Rare MoveThe Most Dangerous Job for Lawyers Is Being on Trump’s Legal
AustralianSuper, one of the world’s largest pensions, halved its Apple stock investment and sold Microsoft stock, while buying shares of Tesla and Nvidia.
One in 6 asset and wealth management companies will be bought or shut down in the next five years, according to a PwC survey of asset managers and institutional investors.
Travel scams are on the rise. Don't be a victim.
Warren Buffett's Berkshire Hathaway operating profit rose by 10%. BRKB stock is just out of buy range.
VZ stock provides a dividend but a buyback has been shelved amid 5G wireless investments. When will revenue growth reaccelerate?
Will generative artificial intelligence boost Palantir stock in the commercial market amid slowing revenue growth for the company?
Retirement account withdrawals not only help you cover basic living expenses, but they also can fund the lifestyle you've always envisioned in your golden years. That money, however, can have unintended tax consequences. Required minimum distributions (RMDs) and other withdrawals … Continue reading → The post Social Security Taxes Can Hit You Hard in Retirement. Here's How to Lower Them appeared first on SmartAsset Blog.
Dubbed the Oracle of Omaha, Warren Buffett is renowned for his simple and frugal lifestyle. Despite being the sixth richest person globally, with a net worth estimated at $117.9 billion, Buffett continues to live in the same modest home in Omaha that he purchased in 1958 for just $31,500. Adjusted for inflation, that amount today would be approximately $328,990.80, a mere 0.000279% of his total net worth. Buffett has consistently ranked the purchase of his home as the third-best investment he ha
As a pandemic-inspired boom ends, entrepreneurs and giant corporations alike are counting on customers to keep accumulating more stuff than they can squeeze into their homes. | NVDA |
https://finnhub.io/api/news?id=1dda81f1b83a7da4591345b5bafd0680089bc1cce7b2f3287f4e57b6a5c997eb | Nvidia Vs. AMD: A Clear Choice | The AI Wars should support the growth outlook for both Advanced Micro Devices, Inc. (AMD) and NVIDIA Corporation (NVDA). Click here for more. | 2023-03-09T04:57:21 | SeekingAlpha | Nvidia Vs. AMD: A Clear Choice
Summary
- The AI Wars should significantly boost and support the growth outlook for Advanced Micro Devices, Inc., and even more heavily NVIDIA Corporation, for the foreseeable future.
- Both stocks have partly recovered from the recent plunge in 2022, with Nvidia having an impressive recovery of around 65% YTD.
- The market is undervaluing AMD's bright prospects in the data center, and the stock price remains below my short-term target price of $100.
- The AI hype has aided in closing NVDA's undervaluation gap, offering limited upside potential from current levels.
- We're currently running a sale for our private investing group, Yiazou Capital Research, where members get access to portfolios, market alerts, real-time chat, and more. Learn More »
Market Outlook & Investment Thesis
In October 2022, the Biden administration introduced export sanctions on specific technologies, including integrated circuits and wafer fabrication equipment for semiconductor chips. The new regulations were introduced in response to concerns about national security and intellectual property theft, particularly by Chinese companies.
The impact of these export sanctions was significant in the integrated circuits and wafer fabrication equipment industries. NVIDIA Corporation (NASDAQ:NVDA) estimated that its quarterly revenue could dip by $400 million if Chinese buyers were excluded, which caused its stock price to plummet. The new regulations will be phased in before full implementation in September 2023, so Nvidia will have time to adjust to the new regulatory environment.
Shortly before the announcement in October, all semiconductor stocks were declining, but NVDA has suffered the most with around a 40% plunge. On the contrary, Advanced Micro Devices, Inc. (NASDAQ:AMD) stock was more resilient to these forces, but the overall negative sentiment on the sector has suppressed AMD's valuations to lower levels, creating a very attractive entry point.
Two months later, the market has already rewarded Nvidia for its exposure to the AI hype supported by the OpenAI (i.e., ChatGPT). Despite the strong pullback, NVDA had a strong bull run YTD with a staggering 65% return. However, both stocks remain below their all-time high levels, but AMD offers a more attractive risk/reward profile for the moment, earning the buy rating, while NVDA is a hold since most of the improving outlook has already been priced in the stock.
AI Growth Supports Nvidia's Potential
Nvidia is anticipating continued challenges in the coming quarter due to its ongoing efforts to fix some of its activities. However, the management expects a recovery later in the year. Despite a sharp decline in the gaming unit caused by a drop in PC sales and excess inventory, the demand for new graphics cards is expected to remain strong, which should help the unit to regain its growth.
Additionally, the company is confident that its data center products will experience accelerating sales growth, supported by strong interest among cloud providers, internet firms, and enterprises to invest in Artificial Intelligence (AI). The popularity of generative AI tools has increased the adoption of AI and is seen as a turning point in this regard. The company plans to capture even more potential growth in AI through a new cloud service for enterprise customers. Nvidia's GPUs, advanced networking products, and software functionality are expected to remain in high demand due to their ability to provide computing power for complex AI models.
The company's latest flagship product, Hopper (H100) GPU, offers significant acceleration in computing power, which is essential when demand for such technology is increasing, mainly due to the popularity of generative AI tools like OpenAI's ChatGPT. More specifically, the H100 is up to 30 times faster at AI inferencing for transformer-based large language models like Open AI's ChatGPT than its predecessor. As a result, the AI Wars and intense competition between Microsoft Corporation (MSFT) and Alphabet Inc. (GOOGL) should support Nvidia's growth for the foreseeable future.
Despite some hyper-scale cloud providers' austerity measures, Nvidia is expected to thrive due to the massive investments from Meta Platforms, Inc. (META) and Microsoft in AI and machine learning workloads. As a result, the market for AI networking is expected to grow to over $8 billion in 2027, with a CAGR of approximately 40%, with Nvidia being a key beneficiary of it.
Nvidia is confident in the growth potential of its data center unit, its fastest-growing segment with a 5-year CAGR of 66%, surpassing the gaming segment's growth and accounting for 40% of revenue in 2022. The company expects the data center segment to reach 51% of revenues in the first half of 2023, as significant spending from large cloud and internet companies, start-ups, and enterprises keen to invest in AI.
In response to this growing interest, Nvidia has introduced a new AI Cloud Service called Nvidia DGX Cloud. The service will be hosted by major cloud providers such as Microsoft, Oracle, and Google and will offer access to the Nvidia AI Enterprise software suite to train large language models on Nvidia's DGX systems. The service targets companies looking to create AI models and services by combining public and private infrastructure.
The gaming activities are expected to resume growth this year as large excess inventories have mostly been cleared. The recent collapse in card demand results from severe PC weakness, excess inventories, and renewed crypto-related disruption. However, there is evidence of high interest in Nvidia's latest graphics cards for PC gaming. The firm's products remain very competitive, and the management is also putting the firm in a strong position to benefit from emerging trends, such as allowing gamers to stream games from the cloud and play these on any device. The approach can extend the firm's gamer reach and fuel demand for Nvidia's data center products.
Nvidia's partnership with Foxconn to build automated EVs could aid its automotive segment, which has about $11 billion in design wins. Though the unit's sales growth was muted last year compared with rival Qualcomm, I consider Nvidia's full suite of software and graphic chip capabilities may drive faster revenue gains from the legalization of driverless vehicles.
AMD Enjoys An Increasing Data-center Share But Weakening PC Market Demand
Inventory correction and weak demand in PCs will likely persist through 1H as AMD continues to under-ship to clear the channel before recovery resumes in 2H23 in its Client and Gaming segments. However, share gains in its Data Center segment and ramp-ups from next-generation product launches with higher ASPs (EPYC and Genoa) could spur year-over-year (YoY) growth. Although weak demand for client PCs and Gaming may continue to pressure 1H, growth could resume in 2H after inventory normalizes.
AMD is improving its competitiveness across CPU and GPU products with Ryzen, EPYC, and Radeon Vega platforms and is on track to improve its market share and drive meaningful revenue growth in the near term. However, long-term share gains are less certain, and AMD must invest heavily in R&D to keep pace with the market leaders.
AMD's December quarter results were strong due to improved revenues from Data-center and Embedded segments, which offset the continued weak demand in PC/Gaming and inventory work downs across the PC supply chain. The company expects the PC/Gaming demand weakness to continue into the March quarter, along with a 1H data-center customer inventory digestion. As a result, the management has provided conservative guidance for the March quarter and has refrained from providing full-year 2023 guidance like its peer companies. However, the management is more optimistic about the potential YoY revenue growth in 2023 driven by growth in its Data-center and Embedded businesses, combined with continued market share gains.
Given the strategic importance of AMD's high-performance CPUs to support its customers' AI/analytics initiatives, the team has strong visibility into its cloud customer roadmap, where spending remains resilient. Additionally, given the lower mix of Data-center sales and PC pricing headwinds, the management expects the margin to trend in the 50% range through the 1H of the year before expanding in the 2H of the year as demand recovers.
Overall, while the PC client business is undergoing substantial declines to burn off excess inventory, the team is exiting this downturn with a much more diversified business model, which is in part a reflection of the team's strategic initiatives. To put it into perspective, the PC client business for AMD is 15-17% of sales, whereas Intel Corporation's (INTC) is 43-45% of sales.
Though weakness in its Client and Gaming segment was no surprise, given prevailing inventory digestion and weak demand in PCs, AMD's share gain in Data centers and relative strength in its semi-custom business could help it outperform rivals despite a challenging economic backdrop. Despite softness in the data-center market and elevated inventory at some cloud customers, AMD is confident it can leverage recent share gains and drive YoY growth in its Data Center segment, fueled by new product ramp-ups and higher average selling prices.
However, with the outgoing Chief Financial Officer Devinder Kumar, appointing a new CFO could create some execution risk. In addition, top-line growth is likely to decelerate amid a down cycle in semiconductors. Lastly, supply-chain diversification will be a key challenge for new CFO Jean Hu amid U.S.-China tensions.
AMD's 3D V-Cache Packaging Technology Could Unseat Intel
AMD could retake the lead in gaming CPUs with its new Ryzen 7000 series chips with 3D V-Cache memory technology. The company's Ryzen 5800 3D V-Cache memory struggled with compute performance, especially for non-gaming workloads, and was quickly overtaken by Intel's 13th-generation Raptor Lake processors.
The new Ryzen 9 7900X3D series, unveiled at CES 2023, has overcome those issues and may become the preferred CPU for gamers. In addition, the new chips put memory even closer to the processor for faster speeds. On the other side, Intel is reportedly close to launching a new version of Raptor Lakes that will challenge AMD. However, as packaging advances, next-generation DDR5 adoption will rise, driving revenue and margin growth for memory suppliers.
Conclusion
Due to macroeconomic uncertainty, Advanced Micro Devices, Inc. did not issue a full-year forecast. Still, it is reasonable to expect that AMD will resume double-digit sales growth in the second half of 2023. As long as the market remains concerned with AMD's declining PC and gaming revenues while undervaluing AMD's bright prospects in the data center, the AMD stock price remains below my short-term target price of $100.
On the contrary, despite the optimism in the market and the improved outlook, Nvidia stock trades around its fair value. Therefore, the recent AI hype has aided in closing Nvidia Corporation's undervaluation gap, with shares offering limited upside potential from current levels and an unfavorable risk/reward profile.
This article was written by
I am the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth analysis of businesses.
I previously worked for Deloitte and KPMG in external & internal auditing and consulting.
I am a Chartered Certified Accountant and a Fellow Member of ACCA Global, and I hold BSc and MSc degrees from leading UK business schools.
In addition to my research platform, I am also the founder of a private business.
My primary strategy focuses on high-quality, free cash flow generative stocks with an above-average growth rate and a strong business moat.
I manage my own highly concentrated portfolio, and I occasionally engage in short-term trades to profit from asset mispricings when Mr. Market does not feel very well.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMD, INTC, TSM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Comments (69)
Vega + 87%
Polaris + 86%Nvidia full product lineAD last three weeks + 9%
GA + 76%
TU + 29%
Pascal < 10%
Maxwell < 2.4%mb
Camp Marketing - GPU TODAY
189 GPU grade SKUs ranked by % channel available 3.13.23Top 10 SKUs = 53.81% of channel available today.
Top 20 SKUs = 66.70%.
Top 30 SKUs = 75.52%
Top 40 SKUs = 81.91%
Top 50 SKUs = 86.28%
Top 60 SKUs = 89.70%
Top 70 SKUs = 92.18%
Top 80 SKUs = 94.21%
Top 90 SKUs = 95.89%
Top 100 SKUs = 97.31%Concentration of top SKU secondary sales potential is reasonable despite the rapid influx of Ampere generation product into the channel for resale over the last three weeks.Channel would not have ordered by grade SKU weight this way, unless they thought they could move it, let's see the channel clear this clean up challenge.AMD full product line channel available in the last three weeks;RDNA lll + 46.5% on meager volume
RDNA ll < 2.2% flattish
RDNA l channel available in the last three weeks + 57%
Vega + 87%
Polaris + 86%Nvidia full product line channel available in the last three weeks;AD last three weeks + 9%
Ampere GA + 76%TU + 29%
Pascal < 10%
Maxwell < 2.4%For immediately prior GPU TODAY at 2.20.23 see that post for comparing how grade SKU ranks have changed in the prior 3 weeks here;seekingalpha.com/...At GPU grade SKU rank #23 by SKU available falls to less than 1% each. 1 = 3060 =11.56%
2 = 2060 Max-q = 8.52%
3 = 3090 = 6.73%
4 = 3080 10 =5.49%
5 = 2070 = 5.16%
6 = 1650 = 4.68%
7 = 3060ti = 4.04%
8 = 3050 mobile 4.04%
9 = 3070 =1.91%
10 = 580 =1.68%
11 = 3070 Max-q =1.57%
12 = 3060 Max-q =1.57%
13 = 2070S = 1.46%
14 =All Tesla = 1.35%
15 = 5700 =1.28%
16 = 570 = 1.23%
17 = 3050ti = 1.23%
18 = 1060 = 1.11%
19 = 3080ti 12 = 1.05%
20 = A2000 = 1.04%
21 = 3080 Max-q =1.04%
22 = 3070ti =1.01%
23 = 560 =0.98%
24 =1650S =0.93%
25 = 550 = 0.92%
26 = 5700Xt = 0.85%
27 = 6600 = 0.83%
28 = P2000 = 0.76%
29 = 1660 = 0.75%
30 = 4070ti = 0.74%
31 = 2080 = 0.73%
32 = P4000 = 0.70%
33 =1050ti =0.69%
34 = 4080 16 FE = 0.69%
35 =1080 = 0.64%
36 = A4000 = 0.64%
37 = 1070 = 0.62%
38 = 6700XT = 0.58%
39 = 3050 desktop = 0.55%
40 = 1650ti = 0.52%
41 = 1080ti = 0.48%
42 = 960 = 0.46%
43 = 6600XT = 0.45%
44 = 2080ti = 0.45%
45 = 1070ti = 0.44%
46 = Vega 64 = 0.44%
47 = P1000 = 0.43%
48 = 6800 = 0.42%
49 = 1650S = 0.40%
50 = QRTX 4000 = 0.40%
51 = A5000 = 0.39%
52 = 530 = 0.39%
53 = 5600XT = 0.36%
54 = 3090 FE = 0.35%
55 = 1660ti = 0.34%
56 = QRTX 3000 = 0.33%
57 = A4500 = 0.33%
58 = P620 = 0.33%
59 = 4090 = 0.30%
60 = 1030 = 0.30%
61 = 5500XT = 0.27%
62 = Vega 56 = 0.26%
63 = 980 = 0.25%
64 = 2060 12 = 0.25%
65 = 2080S = 0.25%
66 = 6800XT = 0.24%
67 = 520 = 0.24%
68 = QRTX 5000 = 0.24%
69 = Radeon Vll = 0.23%
70 = P6000 = 0.23%
71 = 2060S = 0.22%
72 = 6900XT = 0.22%
73 = A6000 = 0.22%
74 = 590 = 0.21%
75 = QRTX 6000 = 0.20%
76 = 5500M = 0.19%
77 = 980ti = 0.19%
78 = MX 250 = 0.19%
79 = MX 150 = 0.19%
80 = 560x = 0.19%
81 = GTX TITAN = 0.18%
82 = 3080 12 FE = 0.18%
83 = A3000 = 18%
84 = WX3200 = 0.18%
85 = 1050 = 0.17%
86 = P2200 = 0.16%
87 = 950 = 0.16%
88 = QP5000 = 0.16%
89 = 540 = 0.15%
90 = 3070 FE = 0.15%
91 = 3090ti = 0.15%
92 = 6500XT = 0.14%
93 = T600 = 0.13%
94 = 3080 10 FE = 0.13%
95 =1630 = 0.13%
96 = MX 450 = 0.13%
97 = 7900XTX = 0.12%
98 = MX 130 = 0.12%
99 = Titan X = 0.12%
100 = Pro Vega 20= 0.12%
101 = P520 = 12%
102 = 7900XTX = 0.11%
103 = T400 = 0.11%
104 = MX 350 = 0.10%
105 = MX 330 = 0.10%
106 = 580x = 0.10%
107 = 3060ti FE = 0.10%
108 = W5700 =.08%
109 = RTX 8000 = 0.08%
110 = RX 6400 = 0.08%
111 = V100 = 0.07%
112 = P1000 = 0.07%
113 = 6950XT = 0.07%
114 = WX5100 = 0.07%
115 = 6750XT = 0.06%
116 = 2080 Max-q = 0.06%
117 = 5600M = 0.06%
118 = WX7100 = 0.05%
119 = 2070 Max-q = 0.05%
120 = 6650XT = 0.05%
121 = A100 = 0.05%
122 = 2080 FE = 0.05%
123 = 3070ti FE = 0.04%
124 = 2050 = 0.04%
125 = MX 550 = 0.04%
126 = A5500 = 0.04%
127 = A770 = 0.04%
128 = 2060 Max-q = 0.04%
129 = Vega 48 = 0.04%
130 = W5700X = 0.03%
131 = T1200 = 0.03%
132 = W5500 = 0.03%
133 = Titan V = 0.03%
134 = WX9100 = 0.03%
135 =2070 FE = 0.03%
136 = 1650 Max-q = 0.03%
137 = RTX TITAN = 0.03%
138 = 4080 16 mobile = 0.03%
139 = 6850M XT = 0.03%
140 = Vega FE =0.03%
141 = 4090 mobile = 0.03%
142 = 570x = 0.02%
143 = 2080S Max-q = 0.02%
144 = 3090ti FE = 0.02%
145 = 4070 mobile = 0.02%
146 = 6650M = 0.02%
147 = 4080 16 FE = 0.02%
148 = W6600 = 0.02%
149 = T1000 = 0.02%
150 = A370M = 0.02%
151 = 6700M = 0.02%
152 = A380 = 0.02%
153 = 6600M = 0.02%
154 = MX 230 = 0.02%
155 = QGP 100 = 0.02%
156 = M125 = 0.01%
157 = 540x = 0.01%
158 = CMP 170 = 0.01%
159 = A750 = 0.01%
160 = MX 570 = 0.01%
161 = 4090 FE = 0.01%
162 = 6700S = 0.01%
163 = W6400 = 0.01%
164 = W6800 = 0.01%
165 = Pro 7 = 0.01%
166 = 6800M = 0.01%
167 = 6500M = 01%
168 = Vega ll AB = 0.01%
169 = CMP 50 = 0.01%
170 = H100 = 0.0056%
171 = W6800X DUO = 0.0045%
172 = M160 = 0.0045%
173 = M100 = 0.0045%
174 = WX 8200 = 0.0045%
175 = 2060ti mobile = 0.0045%
176 = T2000 = 0.0045%
177 = CMP 30 = 0.0045%
178 = AD A6000 = 0.0045%
179 = Mi32 = 0.0034%
180 = Mi8 0.0034%
181 = W5700X Duo = 0.0034%
182 = V340 = 0.0034%
183 = 6900Xt Liquid = 0.0022%
184 = M150 = 0.0022%
185 = CMP 90 = 0.0022%
186 = A350M = 0.0011%
187 = 6600S = 0.0011%
188 = 5700XT 5Oth = 0.0011%
189 = V620 = 0.0011%
100.00%Mike Bruzzone, Camp Marketing
You wrote "Nvidia is anticipating continued challenges in the coming quarter due to its ongoing efforts to fix some of its activities." Maybe so, but I didn't catch that in recent call or interview. They guided sequentially up this quarter for all 4 of their main business areas. The "AI hype supported by the OpenAI (i.e., ChatGPT)." is not just hype. As can be read in this WSJ piece and others, the "big guys" are adjusting their investment plans steering more in their budgets to AI.
www.wsj.com/...
Disappointing considering that's what the article was meant to be about:"Nvidia Vs. AMD: A Clear Choice"
At least that's what the title says...
Malcolm Gladwell book "OutLiers" The story of success, is a fun and insightful read.
And now they may change it to AI inside with proper pronouns. | NVDA |
https://finnhub.io/api/news?id=b3d2901d7b3487958c76a1c2e125ea44c73ba5f4b16c9b73d0e350e875810f1d | April 28th Options Now Available For NVIDIA | Looking for stock market analysis and research with proves results? Zacks.com offers in-depth financial research with over 30years of proven results. | 2023-03-09T04:40:00 | Stock Options Channel | This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.
Copyright 2023 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.26% per year. These returns cover a period from January 1, 1988 through July 3, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.
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https://finnhub.io/api/news?id=6ea755f7f39611b8ef6ddfb2d32c323926e6d40d78244a1a9d544649c176ae37 | What's Going On With Nvidia Stock? | Nvidia (NASDAQ: NVDA) is capitalizing on and supporting the growth of innovations in artificial intelligence. The company's graphics processing units help speed up several aspects of the AI process. This video will take a deep dive into Nvidia's latest earnings call to gain vital insights into its short- and long-term prospects. | 2023-03-09T03:45:00 | Yahoo | What's Going On With Nvidia Stock?
Nvidia (NASDAQ: NVDA) is capitalizing on and supporting the growth of innovations in artificial intelligence. The company's graphics processing units help speed up several aspects of the AI process. This video will take a deep dive into Nvidia's latest earnings call to gain vital insights into its short- and long-term prospects. | NVDA |
https://finnhub.io/api/news?id=204ee33467ba718bf1360cb3f3b7d4716f3c8ae959c2bb5c666ee3126df485cd | Returns On Capital At NVIDIA (NASDAQ:NVDA) Paint A Concerning Picture | Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Firstly, we'll want... | 2023-03-09T03:00:36 | Yahoo | Returns On Capital At NVIDIA (NASDAQ:NVDA) Paint A Concerning Picture
Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding base of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. However, after briefly looking over the numbers, we don't think NVIDIA (NASDAQ:NVDA) has the makings of a multi-bagger going forward, but let's have a look at why that may be.
What Is Return On Capital Employed (ROCE)?
For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. To calculate this metric for NVIDIA, this is the formula:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.16 = US$5.6b ÷ (US$41b - US$6.6b) (Based on the trailing twelve months to January 2023).
Thus, NVIDIA has an ROCE of 16%. In absolute terms, that's a pretty normal return, and it's somewhat close to the Semiconductor industry average of 14%.
See our latest analysis for NVIDIA
Above you can see how the current ROCE for NVIDIA compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free report for NVIDIA.
What Can We Tell From NVIDIA's ROCE Trend?
In terms of NVIDIA's historical ROCE movements, the trend isn't fantastic. To be more specific, ROCE has fallen from 32% over the last five years. However it looks like NVIDIA might be reinvesting for long term growth because while capital employed has increased, the company's sales haven't changed much in the last 12 months. It may take some time before the company starts to see any change in earnings from these investments.
What We Can Learn From NVIDIA's ROCE
Bringing it all together, while we're somewhat encouraged by NVIDIA's reinvestment in its own business, we're aware that returns are shrinking. Investors must think there's better things to come because the stock has knocked it out of the park, delivering a 292% gain to shareholders who have held over the last five years. Ultimately, if the underlying trends persist, we wouldn't hold our breath on it being a multi-bagger going forward.
If you'd like to know about the risks facing NVIDIA, we've discovered 3 warning signs that you should be aware of.
While NVIDIA may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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https://finnhub.io/api/news?id=0024f06281557a619e2e7f130b4b1e07f40729137de461e47f462b054ebf82d9 | Intel leads semiconductors higher as sector sees increased political attention | Looking for stock market analysis and research with proves results? Zacks.com offers in-depth financial research with over 30years of proven results. | 2023-03-09T02:48:00 | Seeking Alpha | This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.
Copyright 2023 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.26% per year. These returns cover a period from January 1, 1988 through July 3, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.
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https://finnhub.io/api/news?id=7fb44ea36243a709341e1e2053c6799d17a8c2bfe73649e096512fdd1cebd7da | Nvidia: Nearly Time To Turn On The Caution Light | What's the technical setup for a near-term top in Nvidia? Click here to read where NVDA shares may be headed next. | 2023-03-09T02:45:30 | SeekingAlpha | Nvidia: Nearly Time To Turn On The Caution Light
Summary
- This has played out with a 40%-plus gain via the path we illustrated three months ago. Alpha found, indeed.
- Fundamentals are already flashing warning signs via valuation.
- What's the technical setup for a near-term top? Where might NVDA be headed next?
- Looking for a helping hand in the market? Members of Stock Waves get exclusive ideas and guidance to navigate any climate. Learn More »
By Levi at StockWaves, produced with Avi Gilburt
It was back on Nov. 30 of last year that we published the article, "Nvidia: (NASDAQ:NVDA) Let's Have Another Look At This One" (see here). By way of a brief review, the chart published with the piece was anticipating a near-term top and pullback, before a larger rally. That was the reason for the "hold" rating on that date.
Now we have another setup that also will garner a "hold" rating, but with a much different outcome probable. We search for high-probability setups that show where fundamentals and technicals align. Nvidia is nearing that type of setup. Let's discuss the outlook and specific price levels to guide us on our way.
Fundamentals With Lyn Alden
It's a great privilege to work along with Lyn Alden to identify these setups. For those that follow Lyn's work, you will know that her unique blend of an engineering background coupled with her knowledge and expertise in the financial world brings perspective. It's this point of view that meshes so well with our technical analysis and produces these articles that we bring to the readership.
Lyn offered this commentary with the last article:
"Nvidia continues to produce some of the most important technology for this decade. However, valuation remains a concern. The bubble aspects have worn off by this point, and the stock is back down to normal historical valuations. However, with the highest cost of capital at the current time, the appropriate valuation for the stock is likely somewhat lower. I would like to see more consolidation in the stock before I would consider establishing a long position."
This viewpoint is more valid now than at that moment. The valuation has once again crept up to rich levels. Note the attached graphic available to us via Seeking Alpha:
We view this current rise as ready to find an important high. So, what's the technical setup, and where might Nvidia head to if it plays out in its entirety?
The Technical Setup For A Near-Term Top
Please allow me to reiterate this point made at the outset of this piece. It's important to understand how we view the markets. Our lens is a probabilistic point of view that will detail a primary path with an alternate that's to be monitored should the primary not play out to fruition.
In this case, however, our primary not only played out, it really paid off, for those who followed it. The outlook at the end of November was for the A wave of the larger (B) to top and pull back in what would form the B of (B). Indeed, that is exactly what took place, resulting in a more than 40%-plus gain in a little over two months. In this same time period, by means of comparison, the (SPY) had a negative move, -2.5%.
This current move is near complete. It's nearly time to turn on the caution light. As you can see from the attached chart, we anticipate the $275 level +/- to be achieved. Ideal targets are not always struck, therefore we need specific levels to tell us when to shift our weight or even alter our perspective.
Risks
Could it be that Nvidia is actually in a larger rally phase? Sure, that's possible. It's simply not the path we see as the most probable at the moment. Even if this is a larger rally structure, the $275 area would probably serve as a waypoint with a pullback that pauses the current rise. (In the event that the $275 level is not seen, under $195 signals that this current rally has completed early.)
It will be the structure of that pullback that helps us determine what's the most likely path. Should the pullback be corrective in nature, then we would be on the lookout for another push higher. However, if the pullback forms 5 waves down and then a corrective bounce, that will particularly be time to be on guard for a larger decline.
This potential decline could take Nvidia back near the lows seen in October of last year. It's necessary to maintain vigilance in any market environment. Markets are non-linear, fluid, and dynamic in their nature. What exactly does this mean?
How Are We To Navigate In A Dynamic Environment?
Dynamics is defined as: "The science of the motion of bodies and the action of forces in producing or changing their motion." This aptly describes the financial markets. It's the ebbs and flows of these markets that captivate our attention. These motive movements also can leave many scratching their heads in an attempt to find reason and logic. However, this is going to be a failed venture.
Markets are emotional. They are irrational. In their wake, they can leave the seemingly most intelligent and logical among us battered, bloodied, and abandoned. Striving to constrain the markets in a linear box of reason and clean geometry will exhaust the brilliant and mercilessly bash the bravest.
This, of course, does not leave us in the lurch. A system is needed to bring structure to the madness. We have such a system in place, that's the basis of our methodology. It's what our analysts used to properly warn of an impending major top in Nvidia back in the Fall of 2021. It's this same system used to correctly projected the rise we are seeing before our eyes.
I would like to take this opportunity to remind you that we provide our perspective by ranking probabilistic market movements based upon the structure of the market price action. And if we maintain a certain primary perspective as to how the market will move next, and the market breaks that pattern, it clearly tells us that we were wrong in our initial assessment. But here's the most important part of the analysis: We also provide you with an alternative perspective at the same time we provide you with our primary expectation, and let you know when to adopt that alternative perspective before it happens.
There are many ways to analyze and track stocks and the market they form. Some are more consistent than others. For us, this method has proved the most reliable and keeps us on the right side of the trade much more often than not. Nothing is perfect in this world, but for those looking to open their eyes to a new universe of trading and investing, why not consider studying this further? It may just be one of the most illuminating projects you undertake.
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This article was written by
Over the years, as a service at ElliottWaveTrader.net, Stock Waves has been guiding members with analysis of individual stocks with the expertise of three industry-leading technical analysts.
In January 2020, Stock Waves rolled out a service within Seeking Alpha’s Marketplace. In addition to our team of Zac Mannes, Garrett Patten, and Harry Dunn, we added Lyn Alden Schwartzer as a Stock Waves analyst to provide her fundamental analysis on individual stock opportunities we see in the coming years.
When it comes to fundamental analysis, Lyn's deep dives on individual stocks are second to none. Blending a background in engineering and finance, Lyn digs for value with a dispassionate, scientific approach that has been uncannily accurate in forecasting stock moves and trends.
Meanwhile, Zac, Garrett and Harry have for years applied a winning strategy developed by renowned Elliottician Avi Gilburt. This method of prognosticating movement in markets and stocks based on wave counts has resulted in consistent returns of over 65% in their earnings calls alone!
Having been providing our services to thousands of our members and hundreds of money manager clients at ElliottWaveTrader, we are excited to be able to bring this higher level of analysis of individual stocks to the Seeking Alpha audience as well.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Short position through short-selling of the stock, or purchase of put options or similar derivatives in NVDA over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Comments (13)
While this is "extreme" for the (C) wave, a B-wave like the large circle Primary B of a Cycle IV can make a nominally higher high as an "expanded-flat".
IF NVDA is more bullish this would be a "(3)" rather than a (C) but would still be due for consolidation. A possible (4) could easily fade back to the 280 region before attempting higher.
But the RISK remains to get 5 waves down below that possible support region as wave (1) of a Primary C wave.
I need to see solid sequentially growing earnings and a reasonable (35?, historical average is about 60 ) PE applied to them. Not a ridiculous 134.28 PE based on hype as of 3/10/2023. They earned $.65 ( for QE 1/31/2023) for the last reported quarter, with tepid/cautious commentary for future earnings. That reflects $2.60 for the full YOY. This guides me to value the stock at reasonable $91 to a high of $156. I'm looking for a major sell off in NVDA and am buying the inverse ETF to benefit from a return to reality. No, this stock is not a buy, its a solid sell! | NVDA |
https://finnhub.io/api/news?id=981f3b3a22edce8ecd1e0c21025be535b5061c4a939bbc557c5dbbe1555bc885 | Intel leads semiconductors as sector sees increased political attention | Looking for stock market analysis and research with proves results? Zacks.com offers in-depth financial research with over 30years of proven results. | 2023-03-09T02:42:00 | Seeking Alpha | This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.
Copyright 2023 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.26% per year. These returns cover a period from January 1, 1988 through July 3, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.
Visit Performance Disclosure for information about the performance numbers displayed above.
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https://finnhub.io/api/news?id=16f80f882731de33ed004efff6c35e63c3beaf4cc532c6e72f532854c6ade2cf | Nvidia (NVDA): New Buy Recommendation for This Technology Giant | Looking for stock market analysis and research with proves results? Zacks.com offers in-depth financial research with over 30years of proven results. | 2023-03-09T02:25:00 | TipRanks | This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.
Copyright 2023 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.26% per year. These returns cover a period from January 1, 1988 through July 3, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.
Visit Performance Disclosure for information about the performance numbers displayed above.
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https://finnhub.io/api/news?id=e50fa3bbd5c7425f0cbdba2bc126cff563f7b6ad0c8b78723b7241556ec917aa | Zacks Market Edge Highlights: META, NVDA, NFLX, TSLA and MSFT | META, NVDA, NFLX, TSLA and MSFT have been highlighted in this Market Edge article. | 2023-03-09T02:00:10 | Yahoo | Zacks Market Edge Highlights: META, NVDA, NFLX, TSLA and MSFT
For Immediate Release
Chicago, IL – March 9, 2023 – Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/2063160/are-fangman-and-the-big-cap-growth-stocks-back
Are FANGMAN and the Big-Cap Growth Stocks Back?
Welcome to Episode #351 of the Zacks Market Edge Podcast.
(1:00) - What Is Happening With Growth Stocks Right Now?
(6:45) - Which FANGMAN Is Performing The Best?
(12:10) - Breaking Down Microsoft and Apple: Who Will Have More Growth?
(16:30) - Struggling Growth Stocks: Is Now A Good Time To Buy?
(27:40) - What Will Drive Alphabets Growth Going Forward?
(31:30) - Can Tesla Continue Its Recent Rally?
(37:45) - Episode Roundup: META, AMZN, NFLX, GOOGL, MSFT, AAPL, NVDA, TSLA, MELI
[email protected]
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week, Tracey is joined by Zacks new stock strategist, Andrew Rocco, for his first appearance on the Market Edge Podcast. They talked about Andrew’s expertise: growth stocks and took a look at the FANGMAN stocks and Tesla. Remember FANGMAN? It was originally Facebook, now known as Meta Platforms, Apple, Netflix, Google, now known as Alphabet, Microsoft, Amazon and NVIDIA.
The FANGMAN stocks were left for dead in 2022 as some of them fell more than 50% as the Fed raised rates and the 10-year treasury yield rose. Growth was “out” and that included big cap growth, especially technology stocks and Tesla.
But the FANGMAN stocks defied expectations to start the year, staging a big rally in January 2023. And some of them continued to rally in February
Are the FANGMAN stocks and other popular growth stocks like Tesla “back”?
AI as a Catalyst for Big Cap Tech
· Meta Platforms META
Meta Platforms got positively cheap in 2022, with a forward P/E as low as 13. Shares bottomed in Nov 2022 and have rallied 54% in 2023.
But Meta Platforms has also done layoffs and is cutting costs. Will it change its strategy on the Metaverse in 2023? What’s it’s plan for AI?
Meta Platforms is a Zacks Rank #2 (Buy) stock. Should Meta Platforms be on your short list?
· NVIDIA Corp. NVDA
NVIDIA has become the darling of growth investors in 2023 thanks to a bullish outlook on AI and earnings that are expected to grow over 30% this year.
Shares of NVIDIA have seen a huge rebound off of last year’s sell-off and are up 64% year-to-date.
But it’s not cheap. NVIDIA trades at 52x forward earnings. Is NVIDIA’s growth worth the high price?
· Netflix Inc. NFLX
From 2010 to 2020, Netflix was one of the top stocks on the S&P 500. But over the last 2 years, the shares are down 40%. However, they appear to have hit a bottom last October, as the shares have rebounded 43% in the last 6 months.
Yet even after the sell-off, NVIDIA isn’t cheap. It still trades with a forward P/E of 27.9.
Is a streaming service like Netflix the place to invest in 2023?
· Tesla, Inc. TSLA
Tesla shares have been on a wild ride over the last 2 years. They are down 5.8% over the last 2 years after soaring at the start of the pandemic.
That ride continues in 2023, however. Shares have rebounded this year and are up 57% year-to-date. While earnings are expected to be down 2.7% in 2023, analysts expect a rebound of 28.6% in 2024.
Tesla shares are expensive on a P/E basis, trading with a forward P/E of 49. But are growth investors willing to ignore Tesla’s valuation to buy the growth?
· Microsoft Corp. MSFT
Microsoft shares hit new highs during the pandemic but after last year’s sell-off, the shares are only up 9.7% in the last 2 years. However, that’s better than the performance of the S&P 500, which is up just 3.8% in that time period.
Microsoft has been in the spotlight due to the launch of ChatGPT, it’s AI product which has been available on Bing. Shares got an initial pop on the launch, but it’s only up 6.6% year-to-date.
Shares are also still pricey, with a forward P/E of 27.5. It pays a dividend yielding 1.1%.
Should Microsoft be on your short list?
What Else do you Need to Know About the Big Cap Tech Stocks in 2023?
Listen to this week’s podcast to find out.
[In full disclosure, Tracey owns shares of AMZN, GOOGL and MSFT in her own personal portfolio.]
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https://finnhub.io/api/news?id=95d1b4779fdef7efa4dcd24968d4bfe364d58531d0489cdc111bb5e963ced6b5 | Polkadot leads rises as largest cryptocurrencies start mixed | The largest cryptocurrencies were mixed during morning trading on Thursday, with Polkadot seeing the biggest move, climbing 1.76% to $5.76. Bitcoin led the... | 2023-03-09T02:00:00 | MarketWatch | The largest cryptocurrencies were mixed during morning trading on Thursday, with Polkadot DOTUSD seeing the biggest move, climbing 1.76% to $5.76.
Bitcoin BTCUSD led the decreases with a 1.30% drop to $21,720.40.
Two other cryptocurrencies saw increases Thursday. Litecoin LTCUSD rose 0.98% to $84.12, and Ripple XRPUSD climbed 0.36% to 39 cents.
In addition to Bitcoin, five other currencies posted decreases. Ethereum ETHUSD slid 0.87% to $1,539.16, and Bitcoin Cash BCHUSD sank 0.67% to $117.90.
Uniswap UNIUSD slid 0.64% to $6.18, and Cardano ADAUSD slipped 0.32% to 32 cents.
Dogecoin DOGEUSD recorded the smallest decline, falling 0.09% to 7 cents.
In crypto-related company news, shares of Coinbase Global Inc. COIN fell 2.19% to $61.63, while MicroStrategy Inc. MSTR dropped 1.94% to $228.21. Riot Platforms Inc. RIOT shares fell 2.30% to $6.16, and shares of Marathon Digital Holdings Inc. MARA fell 2.28% to $6.04.
Overstock.com Inc. OSTK slid 0.84% to $18.28, while Block Inc. SQ rose 1.10% to $78.81 and Tesla Inc. TSLA climbed 0.72% to $183.31.
PayPal Holdings Inc. PYPL climbed 3.51% to $78.50, and Ebang International Holdings Inc. EBON shares increased 7.56% to $6.67. NVIDIA Corp. NVDA rose 0.63% to $243.33, and Advanced Micro Devices Inc. AMD increased 2.11% to $87.17.
In the fund space, blockchain-focused Amplify Transformational Data Sharing ETF BLOK inched down 0.43% to $17.54. The Bitwise Crypto Industry Innovators ETF BITQ, which is focused on pure-play crypto companies, dropped 2.23% to $4.78. Grayscale Bitcoin Trust GBTC, which tracks the Bitcoin market price, shed 1.21% to $13.08.
Editor's Note: This story was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones and FactSet. See our market data terms of use. | NVDA |
https://finnhub.io/api/news?id=5b852c584a59150865fc6e16b17483aeffa74a3e65c89fb1f3221022f9a4fac4 | Nvidia: Leading the New Digital Era | Looking for stock market analysis and research with proves results? Zacks.com offers in-depth financial research with over 30years of proven results. | 2023-03-09T01:47:00 | GuruFocus | This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.
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https://finnhub.io/api/news?id=4869d16648de36f743deddb6ad980226fdd5df73ed324fe5249ddbfc89dab21e | Broadcom - To Outperform Through 2023 | We expect Broadcom to continue outperforming the peer group in 2023, driven by new products with higher ASP. See why we continue to be bullish on AVGO stock. | 2023-03-09T00:00:00 | SeekingAlpha | Broadcom - To Outperform Through 2023
Summary
- We continue to be bullish on Broadcom after the company’s beat on top and bottom lines in 1Q23.
- We expect AVGO to continue outperforming the peer group in 2023, driven by new products with higher ASP.
- AVGO Management has exercised good discipline in not shipping double orders from its customers, hence avoiding the need for customer inventory correction impacting so many of its peers.
- AVGO, however, is not immune to the weaker spending environment into 2023.
- We believe AVGO stock continues to present a favorable risk-reward profile to longer-term investors.
We remain buy-rated on Broadcom (NASDAQ:AVGO) post-earning results for the first quarter of 2023. We expect AVGO to continue outperforming the peer group this year, driven by its new products with higher ASP. We’re also constructive on how management has handled the double-ordering issue; the company’s exercising discipline in not shipping most of the customers’ double orders has shielded AVGO from the need for inventory correction.
We upgraded the stock after its 4Q22 earning results late last year; since then, the stock is up a little over 17%. Our bullish sentiment hasn’t changed much; we expect the company to outperform, driven by a higher ASP. We believe the recent 1Q23 earning results reflect that AVGO is successfully boosting revenue through this strategy, and we expect this to continue in 2023.
The following graph shows our rating history on AVGO.
We believe AVGO is an attractive investment, even if the semi-space does not rebound meaningfully in terms of unit volume growth in 1H23. We’re focusing on being bullish on semi-stocks that we expect to provide a favorable-risk reward profile even if macroeconomic headwinds persist toward the end of the year. While AVGO has both software/hardware and semiconductor solutions, it’s more exposed to the semi-space through its wide range of chips for data centers, wireless, networking, storage, broadband, and industrial markets. We also expect the semi-space to rebound at a faster pace than the software/hardware side of tech over the next year; hence, we’re more constructive on AVGO benefiting from the semi-space rebound as it derives around 80% of its revenues from its semiconductor solutions. The following table outlines AVGO’s revenue by segment in 1Q23.
Still, AVGO is not immune to weaker spending and macroeconomic headwinds. In the first half of this year, we expect the higher ASP for newer products to offset the weaker spending environment impacting cloud spending. Yet, we believe AVGO’s financial outperformance will moderate somewhat as we go through 2023 due to the weaker spending, but we still expect it to outperform its peer group. We remain bullish on AVGO and recommend investors buy the stock at current levels.
Outperforming in 2023 & What to expect
AVGO’s 1Q23 earning results show growth driven by higher ASP for new products and expect this to growth pattern to continue through 2023. AVGO beat both top and bottom lines in 1Q23, reporting revenue of $8.92B, a 15.7% Y/Y increase, and non-GAAP EPS of $10.33, a beat of $0.17. AVGO is not immune to the weak spending environment pressuring cloud spending and causing enterprise customers to be more stingy with budgets. Canalys forecasts the worldwide cloud service spend to grow 23% in 2023 compared to 29% in 2022. Our bullish sentiment on AVGO is based on its strategy to expand its silicon, software, and hardware storage connectivity products and boost growth through increased ASP on new products. AVGO just announced its first 5nm 100G/lane Optical PAM-4 DSP PHY that provides superior performance and efficiency for hyperscale data centers and cloud providers. Our last note also discussed AVGO upgrading its Tomahawk 5 Ethernet Switch Series. We believe new products will arm AVGO with the power to increase ASP on new products to boost revenues and make up for softer demand.
AVGO has outperformed the peer group, PHLX Semiconductor Sector, and S&P 500 Indices. The following graph outlines AVGO’s outperformance compared to the peer group and semi-indices over the past year.
Additionally, we believe AVGO has partially outperformed the peer group because of its successful maneuver of double-ordering issues. Others in the semi-space, including NVIDIA (NVDA), Texas Instruments (TXN), and Marvell (MRVL), have suffered due to double-ordering, which inflated demand expectations and necessitated inventory correction. AVGO has exercised discipline in not shipping out double-orders from its customers. Hence, we don’t see double-ordering being an issue for AVGO going forward.
Valuation
AVGO is relatively cheap on a P/E basis, trading at 15.2x C2023 EPS $41.71 compared to the peer group average of 21.9x. The stock is trading at 8.1x EV/C2023 Sales versus the peer group average of 5.3x. We believe AVGO stock provides a favorable risk-reward profile in the mid-to-long term and recommend investors buy the stock.
The following table outlines AVGO’s valuation.
Word on Wall Street
Wall Street shares our bullish sentiment on the stock. Of the 26 analysts covering the stock, 21 are buy-rated, and the remaining are hold-rated. We believe AVGO is well-positioned to outperform the peer group even if it doesn’t necessarily rebound in unit volume growth in 1H23.
The following table outlines AVGO’s sell-side ratings.
What to do with the stock
We continue to be bullish on AVGO. The company’s 1Q23 earning results were a solid indicator that AVGO can and will continue to offset the weaker spending environment with new products with higher ASP. We’re not too concerned about the risk of double-ordering as AVGO is doing well to shield itself by restraining shipping most customers’ double orders. We believe AVGO is a healthy stock in the semi-space amid market uncertainty. We expect the company to see moderating outperformance towards the end of the year but still outperform the peer group. We recommend investors buy the stock at current levels.
This article was written by
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Comments (23)
> "AVGO has exercised discipline in not shipping out double-orders from its customers." <
Does the above sentence mean AVGO refused to fill orders from customers if AVGO judged the order to be too large? | NVDA |
https://finnhub.io/api/news?id=e428457cf8bcb74a2b154d14dcfb514f29934a87df3935be1ff725518b841a0c | Intel: It's Years Too Soon To Call It A Buy | Intel's competitive position has been slowly degrading for many years, and its financial position is beginning to follow suit. See why I rate INTC stock a hold. | 2023-03-08T23:57:34 | SeekingAlpha | Intel: It's Years Too Soon To Call It A Buy
Summary
- Intel Corporation's competitive position has been slowly degrading for many years, and its financial position is beginning to follow suit.
- In response, Intel has rolled out an ambitious roadmap to reverse its decline and reclaim its dominant position.
- I am skeptical of Intel's odds of success, and I have some concerns regarding the company's plans.
- Regardless, since we are in such an early stage of the revamp and the company could still rise or fall on these plans, I recommend holding for now.
Introduction and Background
Intel Corporation (NASDAQ:INTC) has a long and storied history as one of the pioneer semiconductor companies of the 20th century. The company even created a timeline of events to chart the company’s story, with an entry for virtually every year from its inception in 1968 to the present.
It seems fairly accurate for the most part, but after the 1990s, Intel’s history starts to feel a bit… revisionist. The entry summarizing the 2000s reads as follows:
Intel entered the new millennium with its characteristic energy. The company continued to advance its personal computing offerings, this time with the Pentium 4, while continuing to diversify with new products for the wireless and e-commerce markets. With ongoing success in sales, the company launched a significant expansion of its global fabrication capabilities and upped its philanthropic work through two major initiatives: Teach to the Future and the Computer Clubhouse Network.
I’m sure Intel did all these things and more, but it omits one of the company’s biggest flubs of the decade: its sale of XScale. This critical misstep cost Intel greatly for several years. The reason? XScale was an ARM-based chip maker. ARM is a low power-consumption chip architecture that is favored by users of tablets and smartphones, technologies that were beginning to take off in the years after the sale. Had Intel kept its options open, and kept XScale instead of doubling down on its x86 architecture, it would have been able to leverage XScale to compete in the smartphone and tablet markets as these devices were adopted by consumers. Intel missed its chance to compete in the smartphone era at its inception, and by the time Intel was ready to try, it sealed its fate by resorting to its power-hungry x86 architecture for its smartphone chips. With Intel’s refusal, or inability, to use the low-power ARM architecture, its lack of prioritization of its tablet and smartphone chips, and with some interference by Qualcomm (QCOM), Intel’s attempts to break into the smartphone and tablet markets ended in failure.
To further illustrate the point, Intel describes the 2010s thusly:
Intel became a key player in the proliferation of “smart” devices that maintained wireless connections to cloud servers to perform tasks standalone devices can't. The company’s technology powered the countless end-user devices found in households throughout the world, from kitchen appliances to unmanned aerial vehicles (drones), as well as the high-intensity servers that processed the data those devices generate and the networks that kept the connected devices connected…
Again, all well and good, but it omits Intel’s decade of underperformance in chip manufacturing. Intel suffered, and still suffers, from years-long delays in decreasing its transistor size on chips, often a marker of performance improvement. From 14 nanometers to 10 nanometers, and recently from 10 nm to 7 nm, Intel keeps failing to shrink its transistor sizes on time. A snowball effect should be noted here: failing to shrink transistor sizes on time results in delays of new types of chips, which results in Intel’s delayed entry into markets and devices which require or prefer such chips, which results in Intel’s outdated chips falling out of favor compared to competitors who do release new chips on time.
Speaking of which, aside from transistor shrinkage and chip releases, Intel’s competitors are not standing still. Its x86-based rival, Advanced Micro Devices, Inc. (AMD) has become a leader in the Field-Programmable Gate Array (FPGA) chip business with its acquisition of Xilinx last year. With this type of innovative, low-power x86 chip technology, AMD is set to become a top chip supplier to support the next wave of new technologies, including the data centers that will power them. Bloomberg already projects that AMD’s new class of x86 chips will do very well in this new industry. AMD will not be alone, however. Nvidia (NVDA), an ARM-based chip maker, is also poised to do well in the data center industry, being a leading provider of supporting technology like supercomputer accelerators and GPUs. With the data center market set to grow at a compound annual growth rate (CAGR) of up to 10% by some estimates, and with AMD and Nvidia set to profit handsomely from their data center focus, Intel’s fading data center prominence and fewer chip innovations are becoming a problem, especially as its CPU market share is eroded and its status as a leading chip leader declines.
Intel has seen the writing on the wall, and has proposed a bold plan to reverse course. Along with a highly speculative product roadmap that eschews names and measurements which would allow it to be directly compared to competitors, Intel has announced that it will invest $20 billion in building new chip foundries, or fabs, in Ohio, and spend another $20 billion on new Arizona fabs. While this is better than doing nothing and letting competitors take share in lucrative future markets, I have three main concerns that make me hesitant to recommend Intel as an investment.
Financials: Intel vs Its Competitors
Before detailing my main concerns for Intel’s future, I will discuss Intel’s financial situation, and why it troubles me today.
Intel’s revenues were ~$70 billion, ~$72 billion, ~$78 billion, ~$79 billion, and ~$63 billion for the consecutive years from 2018-2022. Its gross profit held steady at $42-43 billion from 2018-2021, but dropped to less than $27 billion in 2022. Cash flow from operations for the 2018-22 period was ~$29 billion, ~$33 billion, ~$36 billion, ~$29 billion, and ~$15 billion for each respective year. Capital expenditure for this period was ~$15 billion, ~$16 billion, ~$20 billion, ~$20 billion, and ~$25 billion. Lastly, Intel has ~$42 billion in debt, and ~$28 billion in cash.
At first glance, things seem relatively alright. Intel is undeniably profitable, and isn’t precipitously losing money, which is certainly good. Revenues are generally up, which is good. CapEx is rising, which isn’t necessarily bad, though it may be something to monitor. The large debt is concerning, and should be addressed when possible, but profit can be banked to pay it as needed if the company is careful. Excluding outlier year 2022, which saw some sharp declines, Intel seems to be a picture of sustained financial health.
That is, until you look at the picture in context.
AMD’s annual revenue from 2018-2022: ~$6.5 billion, ~$6.5 billion, ~$10 billion, ~$16 billion, and ~$24 billion.
AMD’s gross profit from 2018-2022: ~$2.5 billion, ~$3 billion, ~$4 billion, ~$8 billion, and ~$12 billion.
AMD’s operational cash flow from 2018-2021, and Q1-Q3 of 2022: ~$34 million, ~$500 million, ~$1 billion, ~$3.5 billion, and ~$3 billion.
AMD’s CapEx for 2018-2021, and Q1-Q3 of 2022: ~$160 million, ~$220 million, ~$290 million, ~$300 million, and ~$320 million.
AMD’s debt: ~$3 billion. AMD’s cash: ~$6 billion
These financial trends are similar for all of Intel’s frequently talked-about peers, i.e. Nvidia, AMD, and Taiwan Semiconductor Manufacturing Company or TSMC (TSM). All these firms and Intel saw ballooning CapEx in the past few years; however, only Intel’s competitors saw revenue, gross profit, and cash from operations steadily or exponentially increase as well. The competition also grew their cash to outweigh their debt, instead of the other way around.
Compared to its competitors, Intel barely squeaked by during the COVID era. It then began to tank last year. This level of underperformance appears to be somewhat unique to Intel, since it goes against the trend among its most notable semiconductor industry peers. It’s no wonder the company cut its dividend by nearly two thirds – it isn’t financially healthy enough to give cash away anymore. Such financial weakness screams “red flag” to me, and I would personally avoid INTC just based on the company’s present financial stagnation/deterioration. Better opportunities exist today.
Now to explain my concerns for Intel tomorrow.
My Three Concerns Regarding Intel’s future
Intel’s x86 Chip Innovations Are Stifled By Delays That Cost It Opportunities
AMD’s aggressive pursuit of the data center market is likely fueled largely by its acquisition of Xilinx, whose expertise in FPGA technology will allow AMD’s x86 chips to be competitive in performance and power consumption against ARM-based chip makers like Nvidia. Intel actually bought an FPGA company in 2015, and then released its own FPGA chip line in 2019. However, AMD has had more consistent (though admittedly marginal) improvements in transistor shrinkage compared to Intel over the past few years, and AMD’s advantage may continue to hold steady. This is a big unknown though, considering the constant jockeying for denser chips and smaller transistors between AMD/TSMC and Intel in the CPU, GPU, and FPGA markets. But considering Intel’s penchant for being late, I favor AMD to retain the lead for x86 architecture.
Even if Intel could produce new FPGA chip designs on time, Intel recently suffered an FPGA chip shortage that set back FPGA chip delivery, to the sure delight of AMD. Furthermore, if AMD is able to maintain its transistor shrinkage and density lead, then the performance benefits of its chips once FPGA programming is added to the mix will continue to outpace even Intel’s FPGA chips. This performance advantage, however small, translates to a competitive advantage when data centers pick chip makers to keep their machines running. On the massive scale that data centers operate at, the tiniest advantage in power consumption or performance per chip can add up quickly, and is a major deciding factor in which chip makers data center operators choose. While Intel is a dominant force in the data center industry today with ~70% market share, its market leadership is not set in stone, and is already being eroded by AMD. Furthermore, Intel's CEO has already admitted that the company will continue to lose momentum in the data center space, and will cede market share to competitors like AMD for at least a year or so. Predictably, this is due to a delayed release of a new planned chip, Sapphire Rapids.
With Intel’s track record of delays, right up to the FPGA shortage and Sapphire Rapids postponement last year, there’s a good chance data center operators will seek other chip makers who can provide better performing chips on time. This sets a bad precedent for Intel, especially for deployment of chips in data centers and other technologies that will require FPGA or other innovative x86 chips. Observers in multiple chip-related industries may consequently mark Intel as unreliable and list it as a chip supplier of last resort, reducing the company’s partnerships and business opportunities. This reduction in business would make INTC a subpar x86 chip stock to invest in for the future.
Intel’s Fab Investments and Research Initiatives MUST Yield Substantial Results and Advantages
Despite Intel’s investments in new American fabs, and talk of fabs in Europe, some of Intel’s planned research labs were recently scrapped due to revenue shortfalls. While the research that would have been conducted in those labs is expected to still occur elsewhere, R&D is not where I would make cuts if I were investing in reclaiming my company’s market dominance.
The $40 billion fab investment in the US (plus however many billions that will be spent in Europe) is a good start, but if it is only spent on making chips that are worse than competitors’ in terms of hardware (transistor size, transistor density) and software (FPGA programming, architecture type), then it will be a waste of money. Even for Intel, $40 billion is a lot of cash to spend on fruitless endeavors. $40 billion spent over 3 years from 2022-25 (assuming the same timeline for the Ohio and Arizona projects) means an annual hit of over $13 billion per year until mid-decade, and spending on possible European fabs would increase the cost further. Considering Intel’s $8 billion in net income in 2022, this may mean more debt for the company to take on, which is concerning when current debt already outstrips its cash.
With such large investments that will drag down the financials, the ability of these future fabs and research endeavors to produce popular, outperforming chips becomes that much more important. If at least $40 billion is spent, and Intel’s products are still less appealing than its competitors’ at the end of it all, Intel will be punished severely with flagging consumer demand, and by a selloff from investors when they realize the company’s big revamp has failed to change its downward trajectory. Combined with Intel’s deteriorating financial condition, such an outcome would be devastating for the company.
US/China Tensions and China/Taiwan Conflict Could Make Things Very Bad For Intel
Many investors see Intel as a safe value play for stable, “Made in America” chip supply chains. In their view, Intel’s lack of exposure to Asia would mean that the company, and their investment in it, would be out of harm’s way should China invade Taiwan, home to Intel’s foundry rival and the world’s dominant chip foundry company, TSMC. But this Seeking Alpha contributor makes a good argument for why this may not be the case.
As he highlights in his article, the Chinese market actually generates a plurality of Intel’s revenue – about $21 billion in revenue in 2021, according to the contributor’s data. This means that as geopolitical tensions between the US and China worsen, Intel would get the short end of the stick should the company face pressure to restrict its chip operations in China. Such restriction becomes much more likely if China and the US end up in a proxy war over Taiwan – as we saw with the Russian invasion of Ukraine, the majority of known foreign businesses pulled out of Russia in response. Imagine the financial consequences of Intel having to pull out of China and lose nearly $21 billion at once. $21 billion is 50% more than Intel’s operational cash flow and nearly 3x Intel’s net income for the year 2022. Such a hit to revenue would surely cause Intel to buckle, or worse.
Intel’s revenue being plurality Chinese also means the rewards it will reap from America’s recently passed CHIPS Act are less valuable compared to TSMC’s share. The Act encourages US chip manufacturing and doles out rewards based on US chip investment. Both TSMC and Intel have each made fab commitments of about $40 billion in the US, though Intel’s other US investments into research labs and other elements of the chip value chain will increase its investment total some. Assuming it’s an extra $5 billion of investment from Intel all told, the total $45 billion from Intel vs $40 billion from TSMC should mean slightly more CHIPS Act incentives for Intel, perhaps a few tens or hundreds of millions more. But Intel’s $21 billion of revenue from China compares to TSMC’s roughly $5.7 billion of China revenue based on total revenue of $57 billion (since China exposure is only about 10% of revenue for TSMC). This means that should both companies face China restrictions caused by geopolitics, Intel’s CHIPS Act gains will be diluted by up to $21 billion in losses; meanwhile, TSMC’s similar CHIPS Act gains will be diluted by at most $5.7 billion in losses. On balance, then, Intel’s CHIPS Act gains are more at risk than TSMC’s from China fallout. Additionally, TSMC is investing internationally to expand its operations in Japan, and is reportedly strongly considering expansion into Europe as well, almost certainly collecting subsidies from these two regions to add to its CHIPS Act funds.
So, both TSMC and Intel are diversifying their fab operations, and both companies are exposed to significant geopolitical risks in Asia, but Intel’s China exposure makes it less likely than TSMC to benefit from the subsidies in new American chip legislation. This means that the assumption of greater chip supply chain and revenue safety for Intel (instead of TSMC) is quite flawed. Current and prospective Intel shareholders may want to think twice about INTC if this is a major reason they are investing in it, as worsening US/China relations will likely mean a major hit in the future to Intel’s already-softening revenue and profits.
Intel’s Valuation
On most measures, especially for trailing 12-month ratios, INTC’s valuation looks quite attractive compared to its sector as a whole. Its Price/Earnings ratio is ~13; its Price/Sales ratio is ~1.5; its Price/Book ratio is 1; and its Price/Cash flow is ~6.5. This compares to valuations of ~18, ~2.7, 3, and 20 for the P/E, P/S, P/B, and P/Cash flow of the whole Information Technology sector. INTC’s ratios also compare favorably to its competitors, which all have ratios that are either mixed or overvalued compared to sector. TSM might be the closest to INTC on a P/E basis (sporting a ratio of ~13 as well), but its P/B and P/S are much higher than the sector ratios, let alone INTC’s. For different measures, it’s the same story for AMD and NVDA – similar to INTC on one metric, but very overvalued on at least one other. INTC’s valuation is the lowest among the pack overall, and therefore a bargain hunter’s dream chip stock.
To some of you reading, it may seem odd to put the valuation section so far away from the financials section, but this was deliberate. Many investors only consider Intel’s storied history and greatest achievements when thinking about the company. The foregoing analysis and breakdown of the company’s challenges and mistakes is meant to inject a dose of reality into the positive narrative many people have about Intel. Blue chip investors and value investors in particular should note that this reality about Intel is not captured by the valuation alone.
A well-worn quote by Warren Buffet, famous value investor, is that “it’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” I introduce the valuation section here because on its face, INTC’s valuation is clearly quite wonderful. But the above sections should make clear why the company itself is indeed merely fair: Intel has dug itself into a deep hole over the past few decades, and it is fairly probable that it will fail to claw its way out of it, and also rise above its most noteworthy competitors, in just the next few years. As such, the company is appropriately valued below its competitors and its sector – it is simply less valuable due to the low-to-moderate likelihood that it will achieve its lofty goals.
To be fair, its revamp plans may yet succeed, so it might be too soon to argue that Intel is a value trap. On the other hand, if the shoe fits...
Risks to Thesis
As I have discussed, many things need to go well for Intel’s revamp to work out. However, that does not mean these things cannot happen. If Intel is able to put an end to its chip delays and become a leader in transistor shrinkage and density, program its x86 chips to be above and beyond its competitors’ software capabilities, successfully turn its investments in new fabs and R&D into well-oiled, competition-beating, mass chip-producing machines, and minimize the financial fallout of increasing geopolitical tensions, then the company will have successfully achieved the goals of its big revamp, and then some. Intel would consequently reign supreme in the chip world once again. Additionally, should this end up being the case, it would mean INTC is indeed undervalued and trading at a massive bargain, and should be purchased in the near term while shares are relatively cheap. While the stock is in a diminished position that matches its company’s circumstances, it would skyrocket if the company became king of the hill in the semiconductor industry, rising along with its company’s fortunes. Should all this occur, my thesis would be broken.
But again, many things need to go well for these risks to materialize and break the thesis, and I am fairly confident that at least some of these things may not come to pass.
Conclusion
It’s early days in Intel’s revamp of its operations – too early to say how the fab and research projects will go, and whether these and other initiatives by Intel can get the company firmly ahead of its competitors by mid-decade. But these competitors won’t stand still while Intel gets its act together, and their past and future operations stand to take greater market share from Intel should the company’s revamp not produce the necessary results. In addition to competitive pressure, geopolitical tensions also seem poised to impact Intel for the worse, and in the worst case could drastically damage Intel’s weak financial position via a significant revenue cut.
While I am personally skeptical of Intel’s chances of success, I recommend a wait-and-see approach for the next few years as it all plays out. This will give patient investors sufficient time to see if Intel seizes or fumbles its chance to reclaim its status as a dominant chip maker. Therefore, I would call INTC stock a hold.
This article was written by
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Comments (28)
Intel is expanding the FPGA product line. I suspect the Granite Rapids server chip's move to Intel-3 processing will free up enough Intel-7 capacity to enable them to expand the FPGA business.www.electronicdesign.com/...
The short money has so many easy bets against obviously crappy investments to choose from... why short a blue chip giant like INTC?
Although AMD seems to be one of the stars in the current marketplace remember it was not too many years ago that no one wanted anything to do with the company or its products and was at one point trading under $3.50 USD / share... and many of the same bulls now were some of its biggest haters then... its taken a long time but they have turned things around INTC - US Government:
Much like the airlines / railways / north American auto companies / US banks / even oil and gas explorers the US government will most likely support them if needed... can we all say Ford, GM, Chrysler support and bailout for exampleMBLY:
INTC is not getting any credit for their deal to take MBLY public (INTC owns more than 94%) Observation:
INTC haters are looking at the semi macro and micro -landscape through distorted glasses but the industry has changed (and they are correct INTC is floundering) - as a long time shareholder I missed buying INTC at <$12 USD many years back... and even though I'm shaking my head at some of the stuff they are doing / not doing I've also learned that if you want to call yourself a long term investor than one needs to ascribe to Buffett / Munger definition of long term - the two of them have been and are showing us all before our eyes what it means to be LT investorMy comments are not meant as a recommendation but rather if there are companies you want to own / invest in then be not too greedy in determining one's entry price... for every reader on SA / newsletter writer / talking head who promotes themselves as calling the bottom (or top) 99.999999% of them have no clue what they are talking about... if you need another example look at the precious gold metals space Thanks for your work
Point being, all longs, even the so-called greats, have some flaws in their approach. That's why the collective knowledge of the masses, or wisdom of the crowds, on sites like SA is so important. Good luck to you.
This MBLY RSS mathematical model narration is more reassuring than the TSLA FSD driving videos, where drivers are frequently complaining about not knowing why their car is making decisions.www.youtube.com/... | NVDA |
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https://finnhub.io/api/news?id=728b5a5c79ebfe8be24e64cf0096e60667e48fbd16b615c8cb6060566f093869 | Nvidia Vs. AMD: Which Stock Is A Better Buy? | Both Nvidia and AMD have struggled in 2022 with NVDA having a revenue drop of 29% in the last 6 months. Find out which stock is the better buy. | 2023-03-08T23:30:00 | SeekingAlpha | Nvidia Vs. AMD: Which Stock Is A Better Buy?
Summary
- Nvidia is the largest semiconductor stock in the world based on market value.
- Both Nvidia and AMD have struggled in 2022 with NVDA having a revenue drop of 29% in the last 6 months.
- Both companies' reliance on China may present a long-term problem if geopolitical issues between China and the US become more severe.
- Looking for a helping hand in the market? Members of Turnaround Stock Advisory get exclusive ideas and guidance to navigate any climate. Learn More »
Overview
NVIDIA Corporation (NVDA) and Advanced Micro Devices, Inc. (NASDAQ:AMD) are micro-chip designers that have recently seen their once lofty share price drop precipitously. Over the last year, NVDA has managed a measly 9% return while AMD is in negative territory with a minus 20%.
Nvidia is the largest semiconductor company in the world easily outdistancing such giants as TSMC (TSM), Samsung (OTCPK:SSNLF), and Intel (INTC). Note that AMD's market cap is less than 1/4th of Nvidia's.
Nvidia designs high-end chips, especially for graphics and AI (Artificial Intelligence) purposes. However, they do not manufacture their own chips, they subcontract their production of them to others, mainly Taiwan Semiconductor.
AMD, of course, is famous for being one of only two companies (the other is Intel) to have patent rights to the X86 chip which has been in use since 1978. The X86 is still used extensively in servers, laptops, and desktop PCs. It also manufactures other chips including graphics chips. AMD also outsources its chip production to Taiwan Semiconductor.
To see how bad it has been for tech stocks in general over the last 12 months, the next chart adds Invesco QQQ Trust (QQQ) as a proxy for the tech market in general. It shows that QQQ is down "only" 8%, while AMD is down 20% and Nvidia is up 9%.
Despite the bad year, few believe that these two tech stalwarts are not going to outperform most stocks over the coming years.
In this article, I will compare Nvidia and AMD head-to-head to see which one is the better 2023 investment.
NVDA And AMD Stock Key Metrics
As you can easily see in the table below, Nvidia and AMD are similar in size based on revenue (Line 2). But when it comes to Price/Sales (Line 3) AMD appears to be a much better value with a ratio of 5.6x versus NVDA's 21.5x.
Gross Margins (Lines 5, 8 and 9) are also interesting with NVDA having a better gross margin overall (Line 5) 57% to 51%, but a much lower percentage when compared to Market Value (Line 8).
This could imply that AMD is relatively underpriced compared to Nvidia.
The PE Ratio (Line 11) is another metric where AMD's PE (26.9x) appears to be undervalued compared to Nvidia's rather lofty 52.3x.
Another significant difference is Nvidia's EBITDA (Line 13) which is more than 50% higher than AMD's EBITDA. Free cash flow (Line 15) is an area where NVDA and AMD are relatively close 3.8b to 3.1b but on a Price to FCF basis (Line 16), NVDA is more than 3 times higher than AMD's which once again may indicate that AMD is undervalued compared to NVDA.
Nvidia's dividend rate (Line 18) is insignificant at .1% while AMD's dividend rate is zero.
Based on current financial metrics, AMD looks like a better bargain than Nvidia's rather lofty numbers.
What Is The Difference Between AMD And NVDA?
Nvidia and AMD compete in what both call "Data Center", although I would guess that both have slightly different markets. Nvidia utilizes graphics chips to manipulate large amounts of data with parallel processing for AI purposes while AMD's Data Center Group provides more traditional Server chips in server farms type of installations.
Below is the revenue breakdown of each company from their most recent 10Ks.
Nvidia:
AMD:
Note that "Gaming" is the largest revenue source for both companies. "Data Center" is the 2nd largest revenue source but is growing rapidly and would seem to be on its way to surpassing "Gaming" soon perhaps in 2023. Since 2020, "Data Center" revenue is up more than 350% for AMD and 230% for Nvidia.
Interestingly, Nvidia's Automotive revenue is down from 2020 making one wonder if the future of that segment is going to be as big as some are predicting.
So there would appear to be quite a bit of overlap/competition in revenue sources.
How Does Their Growth Compare?
Looking at the growth in major financial categories, Nvidia and AMD are very similar.
Over the last 3 years, AMD has increased revenue by 225% compared to NVDA's 129%. Also, note NVDA's decline in revenue over the last 6 months.
On an FCF (Free Cash Flow) basis, the growth has been in the 20% range for both companies but once again you can see the steep drop in Nvidia's FCF over the last 6 months while AMD's continues to grow.
However, on the basis of the EBITDA Nvidia leads but once again NVDA has dropped precipitously over the last 6 months.
So on a growth basis, both companies are slowing down but Nvidia seems to be slowing more.
Are These Stocks Fairly Valued?
If we look at analysts' ratings for both stocks we see that both companies are highly rated. Nvidia has 35 Buy recommendations and only 7 Sell recommendations. That is impressive.
But AMD's ratings are a home run with 37 Buy recommendations and only 1 Sell.
Looking at the quant ratings, both companies currently have a Hold rating.
Do the quants know something about Nvidia and AMD that the analysts don't?
Both these stocks are more fairly valued than they were one year ago, but are they reasonable enough for investment in 2023 considering the risks for the world economy, chip sourcing, and customer indecision?
In my opinion, both these stocks are underrated based on historical performance and the inevitable turnaround will show up in the next year or two.
Having said that, I would rate AMD as a better value at this point based on better financial metrics like Price to FCF and PE Ratio.
What Should Investors Consider About These Stocks?
One of the potential long-term issues for both Nvidia and AMD is the reliance on China, Hong Kong, and Taiwan for both sales and production. With increasing animosity between governments worldwide but especially between the US and China, this is a legitimate long-term issue.
Note below that more than 50% of Nvidia's revenue comes from China and Taiwan. More than 20% of AMD's revenue comes from China so they are in a somewhat lesser-risk position than NVDA.
Nvidia:
AMD:
Is Nvidia Or AMD Stock A Better Buy?
The obvious investment question is whether now is the time to buy either NVDA or AMD. Both have shown significant share price losses over the last year.
If you look backward you will see both shares down considerably since November 2021 AMD by 44% and NVDA down 22%.
Although doing better than AMD (if down less can be considered better) Nvidia is not without its own set of issues. Revenues have fallen from $8.3 billion in the May 2022 quarter to $5.9 billion in the current quarter, a stunning drop of 29% in just six months.
For the long term, both are excellent choices, but for 2023 I see AMD as a classic turnaround stock with its battered share price able to begin recovery by the end of 2023.
At their current prices, AMD stock is a Buy and NVDA stock is a Hold.
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Comments (15)
I guess there is one advantage NVDA has and that is it pays a dividend.
They had tons of revenue & profit, but they never revised the reward in more dividend (even if i know it is still important to use the majority of the cash in R&D and then production lines) | NVDA |
https://finnhub.io/api/news?id=60322c39e81ff515bc1b0e54735f2b9e328a63d317b66ab4a956b4f612d0c223 | Intel: It`s Years Too Soon To Call It A Buy | Looking for stock market analysis and research with proves results? Zacks.com offers in-depth financial research with over 30years of proven results. | 2023-03-08T22:59:00 | Seeking Alpha | This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.
Copyright 2023 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.26% per year. These returns cover a period from January 1, 1988 through July 3, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.
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https://finnhub.io/api/news?id=d246fc894c55eaed0a490956ded9faa103d07e45d559c5d60ecc59e5a5b3f657 | This fund has increased its dividend for 56 straight years. Now it`s snapping up GE. | Looking for stock market analysis and research with proves results? Zacks.com offers in-depth financial research with over 30years of proven results. | 2023-03-08T22:00:00 | MarketWatch | This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.
Copyright 2023 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.26% per year. These returns cover a period from January 1, 1988 through July 3, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.
Visit Performance Disclosure for information about the performance numbers displayed above.
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This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. | NVDA |
https://finnhub.io/api/news?id=cd05d5e1689ab697857c8a3721d5dbb507a57b4f3f9db06c189c9315d440d6ce | Are FANGMAN and the Big Cap Growth Stocks Back? | Tracey Ryniec and Andrew Rocco discuss the best, and worst, of the FANGMAN stocks, and Tesla, in 2023. | 2023-03-08T12:56:08 | Yahoo | Are FANGMAN and the Big Cap Growth Stocks Back?
(1:00) - What Is Happening With Growth Stocks Right Now?
(6:45) - Which FANGMAN Is Performing The Best?
(12:10) - Breaking Down Microsoft and Apple: Who Will Have More Growth?
(16:30) - Struggling Growth Stocks: Is Now A Good Time To Buy?
(27:40) - What Will Drive Alphabets Growth Going Forward?
(31:30) - Can Tesla Continue Its Recent Rally?
(37:45) - Episode Roundup: META, AMZN, NFLX, GOOGL, MSFT, AAPL, NVDA, TSLA, MELI
[email protected]
Welcome to Episode #351 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week, Tracey is joined by Zacks new stock strategist, Andrew Rocco, for his first appearance on the Market Edge Podcast. They talked about Andrew’s expertise: growth stocks and took a look at the FANGMAN stocks and Tesla. Remember FANGMAN? It was originally Facebook, now known as Meta Platforms, Apple, Netflix, Google, now known as Alphabet, Microsoft, Amazon and NVIDIA.
The FANGMAN stocks were left for dead in 2022 as some of them fell more than 50% as the Fed raised rates and the 10-year treasury yield rose. Growth was “out” and that included big cap growth, especially technology stocks and Tesla.
But the FANGMAN stocks defied expectations to start the year, staging a big rally in January 2023. And some of them continued to rally in February
Are the FANGMAN stocks and other popular growth stocks like Tesla “back”?
AI as a Catalyst for Big Cap Tech
Meta Platforms META
Meta Platforms got positively cheap in 2022, with a forward P/E as low as 13. Shares bottomed in Nov 2022 and have rallied 54% in 2023.
But Meta Platforms has also done layoffs and is cutting costs. Will it change its strategy on the Metaverse in 2023? What’s it’s plan for AI?
Meta Platforms is a Zacks Rank #2 (Buy) stock. Should Meta Platforms be on your short list?
NVIDIA Corp. NVDA
NVIDIA has become the darling of growth investors in 2023 thanks to a bullish outlook on AI and earnings that are expected to grow over 30% this year.
Shares of NVIDIA have seen a huge rebound off of last year’s sell-off and are up 64% year-to-date.
But it’s not cheap. NVIDIA trades at 52x forward earnings. Is NVIDIA’s growth worth the high price?
Netflix Inc. NFLX
From 2010 to 2020, Netflix was one of the top stocks on the S&P 500. But over the last 2 years, the shares are down 40%. However, they appear to have hit a bottom last October, as the shares have rebounded 43% in the last 6 months.
Yet even after the sell-off, NVIDIA isn’t cheap. It still trades with a forward P/E of 27.9.
Is a streaming service like Netflix the place to invest in 2023?
Tesla, Inc. TSLA
Tesla shares have been on a wild ride over the last 2 years. They are down 5.8% over the last 2 years after soaring at the start of the pandemic.
That ride continues in 2023, however. Shares have rebounded this year and are up 57% year-to-date. While earnings are expected to be down 2.7% in 2023, analysts expect a rebound of 28.6% in 2024.
Tesla shares are expensive on a P/E basis, trading with a forward P/E of 49. But are growth investors willing to ignore Tesla’s valuation to buy the growth?
Microsoft Corp. MSFT
Microsoft shares hit new highs during the pandemic but after last year’s sell-off, the shares are only up 9.7% in the last 2 years. However, that’s better than the performance of the S&P 500, which is up just 3.8% in that time period.
Microsoft has been in the spotlight due to the launch of ChatGPT, it’s AI product which has been available on Bing. Shares got an initial pop on the launch, but it’s only up 6.6% year-to-date.
Shares are also still pricey, with a forward P/E of 27.5. It pays a dividend yielding 1.1%.
Should Microsoft be on your short list?
What Else do you Need to Know About the Big Cap Tech Stocks in 2023?
Listen to this week’s podcast to find out.
[In full disclosure, Tracey owns shares of AMZN, GOOGL and MSFT in her own personal portfolio.]
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To read this article on Zacks.com click here. | NVDA |
https://finnhub.io/api/news?id=ab5f7a7ee59a3cc9f9c2e215dd26f846d2e3085e777b963b7d798eb9dc4eb9d2 | Microsoft tells UK it will license 'Call of Duty' to Sony for 10 years | Microsoft said it would license Activision Blizzard's "Call of Duty" (CoD) to Sony for 10 years to address concerns raised by Britain over its $69 billion takeover of the games maker, according to a document published by the regulator. | 2023-03-08T07:35:41 | Reuters | Microsoft tells UK it will license 'Call of Duty' to Sony for 10 years
LONDON, March 8 (Reuters) - Microsoft (MSFT.O) said it would license Activision Blizzard's (ATVI.O) "Call of Duty" (CoD) to Sony for 10 years to address concerns raised by Britain over its $69 billion takeover of the games maker, according to a document published by the regulator.
Microsoft last month struck a similar deal with Nvidia Corp's (NVDA.O) gaming platform, dependent on it getting the go-ahead for the much-contested acquisition.
Microsoft President Brad Smith had said he hoped that rival Sony - which has strongly opposed the takeover - would consider doing the same type of deal.
Britain's Competition and Markets Authority (CMA) in February said the deal could weaken the rivalry between Microsoft's Xbox and Sony's PlayStation, and stifle competition in cloud gaming.
It suggested that structural remedies could be needed to allay its concerns, including divesting the business associated with 'Call of Duty.'
Microsoft, in its response to the CMA's findings, said the package of remedies it would offer protected all CoD players in Britain and provided substantial benefits to consumers and developers.
"Microsoft is proposing a package of licensing remedies which (i) guarantee parity between the PlayStation and Xbox platforms in respect of CoD and (ii) ensure wide availability of CoD and other Activision titles on cloud gaming services," Microsoft said in the document published on Wednesday.
It added that it believed that the criteria for the CMA to consider behavioural remedies, such as those offered, had been met.
Sony, in its own submission to the CMA, rejected Microsoft's proposals, saying the only way to preserve competition in consoles and cloud gaming was to block the deal or subject it to a structural remedy, such as making Microsoft sell CoD.
The biggest-ever deal in gaming, announced in January last year, is facing scrutiny in the United States and in Europe.
Microsoft is expected to secure EU antitrust approval with its offer of licensing deals to rivals, three people familiar with the matter told Reuters earlier this month, helping it to clear a major hurdle.
The CMA will rule on the deal on April 22.
(This story has been refiled to say Microsoft, instead of Sony, in paragraph 6)
Our Standards: The Thomson Reuters Trust Principles. | NVDA |
https://finnhub.io/api/news?id=188517d00d017dabe2d7423ba8e67f7f1ccdf2ecb57f05c40ae3cec1a34f0b73 | NVIDIA Corp. stock rises Wednesday, outperforms market | Shares of NVIDIA Corp. advanced 3.83% to $241.81 Wednesday, on what proved to be an all-around mixed trading session for the stock market, with the S&P 500... | 2023-03-08T09:13:00 | MarketWatch | Shares of NVIDIA Corp.
NVDA,
+0.37%
advanced 3.83% to $241.81 Wednesday, on what proved to be an all-around mixed trading session for the stock market, with the S&P 500 Index
SPX,
-0.53%
rising 0.14% to 3,992.01 and the Dow Jones Industrial Average
DJIA,
-0.43%
falling 0.18% to 32,798.40. The stock's rise snapped a two-day losing streak. NVIDIA Corp. closed $47.65 short of its 52-week high ($289.46), which the company reached on March 29th.
Trading volume (51.1 M) eclipsed its 50-day average volume of 48.9 M.
Editor's Note: This story was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones and FactSet. See our market data terms of use. | NVDA |
https://finnhub.io/api/news?id=99c51f008bf9e8a1d9454ffbb11d5b4f2a61d298702f153828da520b66ee1905 | Nvidia Stock: FOMO Versus Fundamentals. What Should Investors Do? | Sentiment can change on Wall Street as the wind blows; graphics processing unit (GPU) leader Nvidia (NASDAQ: NVDA) declined roughly 59% over the first nine months of 2022. Let's take a breath before rushing to place that buy order; some concerns could keep Nvidia's stock from continuing its skyward trajectory. Here is what the fundamentals say about Nvidia's path forward. | 2023-03-08T07:15:00 | Yahoo | Nvidia Stock: FOMO Versus Fundamentals. What Should Investors Do?
Sentiment can change on Wall Street as the wind blows; graphics processing unit (GPU) leader Nvidia (NASDAQ: NVDA) declined roughly 59% over the first nine months of 2022. Let's take a breath before rushing to place that buy order; some concerns could keep Nvidia's stock from continuing its skyward trajectory. Here is what the fundamentals say about Nvidia's path forward. | NVDA |
https://finnhub.io/api/news?id=5855b4cf20586de3437584573098fc887bb6bbfbdf44bdca1ed7f4013e2c5c40 | 3 Things About AMD That Smart Investors Know | As a leader in computing components, Advanced Micro Devices (NASDAQ: AMD) is a company building the future with lucrative prospects in a variety of industries that all require its hardware to move forward. With its stock showing signs of recovery, now is an excellent time to learn more about this company of the future. Here are three things about AMD that smart investors know. | 2023-03-08T07:00:00 | Yahoo | 3 Things About AMD That Smart Investors Know
As a leader in computing components, Advanced Micro Devices (NASDAQ: AMD) is a company building the future with lucrative prospects in a variety of industries that all require its hardware to move forward. With its stock showing signs of recovery, now is an excellent time to learn more about this company of the future. Here are three things about AMD that smart investors know. | NVDA |
https://finnhub.io/api/news?id=79d7f6d725a898c17ddd21c777477048411a276175f173a6f5fd0e601ad0790c | Microsoft offers to license `Call of Duty` to Sony for 10 years, Reuters says | Looking for stock market analysis and research with proves results? Zacks.com offers in-depth financial research with over 30years of proven results. | 2023-03-08T03:43:00 | Thefly.com | This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.
Copyright 2023 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.26% per year. These returns cover a period from January 1, 1988 through July 3, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.
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https://finnhub.io/api/news?id=0293c4a36483746cb9316f87512732f27297fb113f10412c01457cc3beeeb058 | AMD leads chip stocks as sector firms up after Powell testimony | Looking for stock market analysis and research with proves results? Zacks.com offers in-depth financial research with over 30years of proven results. | 2023-03-08T03:06:00 | Seeking Alpha | This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.
Copyright 2023 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.26% per year. These returns cover a period from January 1, 1988 through July 3, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.
Visit Performance Disclosure for information about the performance numbers displayed above.
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Real time prices by BATS. Delayed quotes by FIS.
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https://finnhub.io/api/news?id=df0695a8fdccc033b8af185949fe8278d6ca315c3f48730cba4c6f1c2da9fcad | Beyond the Hype -- Examining Nvidia's Biggest Risks | While Nvidia has a massive growth opportunity due to artificial intelligence and popular applications like ChatGPT, investors should also be aware of the potential risks associated with investing in the company. | 2023-03-08T03:00:00 | Yahoo | Investopedia
Warren Buffett is undeniably the most famous and influential investor in modern history, based on his extraordinary performance record. Not surprisingly, the investment portfolio of Berkshire Hathaway Inc. (BRK.A), the holding company employing the Oracle of Omaha as chairman and CEO, receives wide media attention and scrutiny, even though Buffett is no longer making every investment decision. Despite his unparalleled success, Buffett's investment model has long been transparent, straightforward, and consistent. | NVDA |
https://finnhub.io/api/news?id=f1a092e56b37e5f1c02c953e3c44878573f0dd40ebea465dfb04f55ccd8e8f51 | 3 Stocks That Could Be Worth More Than Tesla by 2030 | Tesla (NASDAQ: TSLA) is practically the Rorschach test of stocks. Whatever your take on it is, one thing is certain: Its market cap is a lot lower than it was just a year ago. Here are three stocks that could be worth more than Tesla by 2030. | 2023-03-08T02:50:00 | Yahoo | 3 Stocks That Could Be Worth More Than Tesla by 2030
Tesla (NASDAQ: TSLA) is practically the Rorschach test of stocks. Whatever your take on it is, one thing is certain: Its market cap is a lot lower than it was just a year ago. Here are three stocks that could be worth more than Tesla by 2030. | NVDA |
https://finnhub.io/api/news?id=47bd3cf5954de0941aceeb58b164637c1729c2bfbdf64030ca4bd2018b69399f | Look Beyond AI: This $42 Billion Market Could Be a Game Changer for Nvidia | The tech giant established a nice foothold in a fast-growing market that could add billions to its revenue. | 2023-03-08T02:49:00 | Yahoo | Look Beyond AI: This $42 Billion Market Could Be a Game Changer for Nvidia
The tech giant established a nice foothold in a fast-growing market that could add billions to its revenue.
The tech giant established a nice foothold in a fast-growing market that could add billions to its revenue.
Mark Spitznagel and Nassim Taleb have been watching for black swans for decades. "We’ve never seen anything like this level of total debt and leverage in the system," he tells Fortune. "It's an experiment."
Warren Buffett is undeniably the most famous and influential investor in modern history, based on his extraordinary performance record. Not surprisingly, the investment portfolio of Berkshire Hathaway Inc. (BRK.A), the holding company employing the Oracle of Omaha as chairman and CEO, receives wide media attention and scrutiny, even though Buffett is no longer making every investment decision. Despite his unparalleled success, Buffett's investment model has long been transparent, straightforward, and consistent.
Stocks have blown past expectations for 2023 – but some analysts are bracing for a sell-off as the market approaches record highs.
The JPMorgan Equity Premium Income ETF’s (NYSEARCA:JEPI) combination of high yield and monthly payments has quickly made it one of the market’s most popular ETFs. Investors who like JEPI’s style now have another high-yield competitor to consider — the NEOS S&P 500 High Income ETF (BATS:SPYI), which also pays on a monthly basis and yields 10.7%. Let’s take a closer look at this intriguing new option for high-yield investors. What is SPYI ETF’s Strategy? Launched in August of 2022, SPYI is still a
Just because you retire doesn't mean you have to stop working. And when work is an option rather than a requirement, it's possible to select a low-stress job that multiplies fulfillment without adding anxiety - but still provides a bit … Continue reading → The post 12 Low-Stress Jobs You Can Do in Retirement appeared first on SmartAsset Blog.
Berkshire Hathaway historically reports its quarterly financial results on weekends, and CEO Warren Buffet has a simple reason why. Berkshire (ticker: BRK.A, BRK.B) reported second-quarter earnings Saturday morning. Many other public companies, however, release their earnings results during the trading week, either before the market opens or after the closing bell.
The market rally is at an infection point after notable losses. Here's what to do. Warren Buffett's Berkshire earnings rose.
Is there a point at which I should stop reinvesting stock dividends and invest the money or save the cash? -Anonymous Many financial experts recommend that you reinvest dividends most of the time – and I'm inclined to agree. The … Continue reading → The post Ask an Advisor: Should I Stop Reinvesting Dividends? appeared first on SmartAsset Blog.
There are many different approaches and strategies for retirement investing that might appeal to you. But how do you tell if a certain strategy works for your situation? When evaluating different approaches, consider how each strategy is put together and … Continue reading → The post Here's How Much to Keep in Stocks, Bonds and Cash in Retirement appeared first on SmartAsset Blog.
The week ahead will feature a crucial inflation report and earnings out of Disney, UPS, and Alibaba as second quarter earnings season winds down.
(Bloomberg) -- Dan Loeb is hardly the first Wall Street titan to lament how meme stock traders have made short selling a perilous endeavor. But that Loeb, who runs the hedge fund Third Point LLC, did so now is what’s interesting.Most Read from BloombergTexas Power Prices to Surge 800% on Sunday Amid Searing HeatNetanyahu Seeks to Change How Judges Are Named, Then Stop RevampChina Embassy Rips ‘Brutal’ Russia Border Incident in Rare MoveThe Most Dangerous Job for Lawyers Is Being on Trump’s Legal
AustralianSuper, one of the world’s largest pensions, halved its Apple stock investment and sold Microsoft stock, while buying shares of Tesla and Nvidia.
One in 6 asset and wealth management companies will be bought or shut down in the next five years, according to a PwC survey of asset managers and institutional investors.
Travel scams are on the rise. Don't be a victim.
Warren Buffett's Berkshire Hathaway operating profit rose by 10%. BRKB stock is just out of buy range.
VZ stock provides a dividend but a buyback has been shelved amid 5G wireless investments. When will revenue growth reaccelerate?
Will generative artificial intelligence boost Palantir stock in the commercial market amid slowing revenue growth for the company?
Retirement account withdrawals not only help you cover basic living expenses, but they also can fund the lifestyle you've always envisioned in your golden years. That money, however, can have unintended tax consequences. Required minimum distributions (RMDs) and other withdrawals … Continue reading → The post Social Security Taxes Can Hit You Hard in Retirement. Here's How to Lower Them appeared first on SmartAsset Blog.
Dubbed the Oracle of Omaha, Warren Buffett is renowned for his simple and frugal lifestyle. Despite being the sixth richest person globally, with a net worth estimated at $117.9 billion, Buffett continues to live in the same modest home in Omaha that he purchased in 1958 for just $31,500. Adjusted for inflation, that amount today would be approximately $328,990.80, a mere 0.000279% of his total net worth. Buffett has consistently ranked the purchase of his home as the third-best investment he ha
As a pandemic-inspired boom ends, entrepreneurs and giant corporations alike are counting on customers to keep accumulating more stuff than they can squeeze into their homes. | NVDA |
https://finnhub.io/api/news?id=a673395fb1b45b7d2d9b9d476d61954398619bd84cd58b8b0d57266db2fabd97 | Microsoft, Sony still at odds in UK over `Call of Duty,` $69B Activision deal | Looking for stock market analysis and research with proves results? Zacks.com offers in-depth financial research with over 30years of proven results. | 2023-03-08T02:44:00 | Seeking Alpha | This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.
Copyright 2023 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.26% per year. These returns cover a period from January 1, 1988 through July 3, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.
Visit Performance Disclosure for information about the performance numbers displayed above.
Visit www.zacksdata.com to get our data and content for your mobile app or website.
Real time prices by BATS. Delayed quotes by FIS.
NYSE and AMEX data is at least 20 minutes delayed. NASDAQ data is at least 15 minutes delayed.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. | NVDA |
https://finnhub.io/api/news?id=b758b3cddff4500a9a25d1ac23b55cf0c58ad17dbe3dbcb34b6fcaaa88cd61f3 | Most large cryptocurrencies decrease on Polkadot, Litecoin drops | Most of the largest cryptocurrencies were down during morning trading on Wednesday, with Polkadot seeing the biggest move, dropping 3.24% to $5.61. Seven... | 2023-03-08T02:00:00 | MarketWatch | Most of the largest cryptocurrencies were down during morning trading on Wednesday, with Polkadot DOTUSD seeing the biggest move, dropping 3.24% to $5.61.
Seven additional currencies posted decreases Wednesday. Litecoin LTCUSD declined 3.16% to $82.82, and Cardano ADAUSD declined 2.58% to 32 cents.
Bitcoin Cash BCHUSD dropped 2.58% to $118.60, while Uniswap UNIUSD dropped 2.07% to $6.25. Dogecoin DOGEUSD dropped 1.65% to 7 cents.
Bitcoin BTCUSD and Ethereum ETHUSD rounded out the decreases for Wednesday, dropping 0.42% to $21,959.50 and 0.20% to $1,547.31, respectively.
On the other hand, Ripple XRPUSD posted the only increase among the largest cryptos, rising 2.03% to 39 cents.
In crypto-related company news, shares of Coinbase Global Inc. COIN declined 1.61% to $60.90, while MicroStrategy Inc. MSTR shed 1.05% to $229.00. Riot Platforms Inc. RIOT shares inched down 0.65% to $6.13, and shares of Marathon Digital Holdings Inc. MARA fell 2.55% to $5.94.
Overstock.com Inc. OSTK declined 2.01% to $18.53, while Block Inc. SQ fell 1.35% to $76.99 and Tesla Inc. TSLA shed 3.77% to $180.64.
PayPal Holdings Inc. PYPL slipped 0.33% to $74.66, and Ebang International Holdings Inc. EBON shares climbed 0.33% to $6.57. NVIDIA Corp. NVDA increased 1.61% to $236.63, and Advanced Micro Devices Inc. AMD rallied 1.06% to $82.98.
In the fund space, blockchain-focused Amplify Transformational Data Sharing ETF BLOK inched down 0.28% to $17.48. The Bitwise Crypto Industry Innovators ETF BITQ, which is focused on pure-play crypto companies, declined 1.42% to $4.85. Grayscale Bitcoin Trust GBTC, which tracks the Bitcoin market price, rallied 2.17% to $13.18.
Editor's Note: This story was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones and FactSet. See our market data terms of use. | NVDA |
https://finnhub.io/api/news?id=35b4437fe75331ce74e31205980bd9e63b360c0add5ab091a1e74573abb40668 | 'The US Government Wants To Get Rid Of Crypto' With Clem Chambers | In this episode, we're joined by Seeking Alpha Contributor, Clem Chambers. Click here to listen to the episode or read the transcript. | 2023-03-08T00:00:00 | SeekingAlpha | 'The US Government Wants To Get Rid Of Crypto' With Clem Chambers
Summary
- In this episode, we're joined by Seeking Alpha Contributor, Clem Chambers.
- Clem started in the investing world as a kid when his father traded commodities.
- We dive into Clem's methodology for investing in this type of market, his thoughts on the Fed, and why he is saying we're stuck in a range-bound market for the foreseeable future.
- Towards the end of today's episode, we get Clem's take on why he is expecting another significant drop in Bitcoin.
| |
Editor's Note: This is the transcript version of the previously recorded show. Due to time and audio constraints, the transcription may not be perfect.
We encourage you to listen to the podcast embedded above or on the go via Apple Podcasts or Spotify.
Click here to follow Clem Chambers on Seeking Alpha.
This episode was recorded on March 6, 2023.
Transcript
Daniel Snyder: Welcome back to Investing Experts Podcast. I'm Daniel Snyder. Today, we're joined by Seeking Alpha Contributor, Clem Chambers, the man who started in the investing world as a kid when his father traded commodities.
Towards the end of today's episode, we get his take on why he is expecting another significant drop in Bitcoin. But first, we dive into his methodology for investing in this type of market. His thoughts on the Fed, and why he is saying we're stuck in a range-bound market for the foreseeable future.
Just a reminder, anything you hear on this podcast should not be considered investment advice. At times, myself or the guest might own positions in the securities mentioned, but this is for entertainment purposes only, and you should seek advice from a licensed professional before investing.
And if you're enjoying the show, do us a favor and leave a rating or review on your favorite podcasting app, or leave a comment on our show notes page. We love the feedback in interacting with the best investing audience in the world. Now, let's get to the interview.
Clem, so great to have you on the podcast. Thanks for taking the time to join us today. For the people that don't know who you are, and what you've been writing about, give us a little intro of how you guys started investing and what you focus on here on Seeking Alpha?
Clem Chambers: Well, I got started in investing because back in the day in the dot-com boom, the company that I was running was an incubator. And the big thing that we got right was a European financial website for private investors called ADVFN. And I thought, well, we really got to make this work. I'd made a huge dot-com style fortune from doing all that stuff. And lost a huge dot-com star fortune in 2001 and 2002. But at the time, my idea was, I've got to have skin in the game.
So, I took all my money and that was liquid and I stuck it in the market, because if you're going to build a site for private investors, you might as well put your -- all your money on the line and build that site for yourself. So that was kind of the first or the second generation.
Now the first generation was, when I was a little child, a very small child. My father was a very large commodity speculator in the 70s. And he put a little earpiece on the telephone, and he said, well, when I'm on the phone to my brokers, rather than asking, yeah, what's going on buddy? Just pick up this earpiece and put it to your ear.
So, I would put this to the ear and hear my father buying coffee and gold and all that stuff, and the rings and all that, you know, not Lord of the Rings, but the ring of commodities. And people, you know, we used to take orders, and there were people, and they would come away and say, I got you 200 lots and all that stuff.
So, I was brought up as a very small child. I'm -- you're talking about 10 year old with that going on around and being welcomed to the party by my father to all that coming and going, which of course when you're really that young, you absorb a lot of stuff that an adult wouldn't absorb. And the insiders says that even the adults involved don't absorb, you kind of hear that in your child's mind.
So then back in 2000s, you know, another 20 odd so years later, there I was with all my liquid in the markets building and this financial website, and that financial website, InvestorsHub, which is a U.S. small cap financial website. And then for the next 20 odd years, I was doing that. Now initially, I was told, oh, by the PR people, oh, why don't you write stuff about stocks and shares? You know, you'll become -- help, you know, marketing of your website.
So, I thought I was really good. I was already writing for the financial page of WIRED magazine during the dot-com. That was something I did back then. So, I fell naturally into writing financial articles.
But what I found was, it's very valuable because you have to have your thinking straight if you're going to write articles and pieces about investment. Because, I mean, you can't write this stuff, oh, this one's going to the moon, that one's going to -- that's rubbish, that is…and oh, this one's, you know, it's going to 10x, or you see a lot of that. But I kind of not interested in that. What I'm interested in is, what, why, how, when, who, and have a, as I say, a thesis, I hate that word. But, you know, to have a thesis, and to have a thesis, to write 600 words or a thousand words, you've really got to crystallize your thinking out.
So, over the years, I've used my writing to crystallize my thinking. And I have over the years seemed to have caught all the crashes right. I not be there and when they happened and be in at the bottom. I've predicted a few that haven't happened. But I'll tell you missing the ones that do happen is well worth getting out before the market doesn't crash and then kind of going back and going, oh, well, it didn't happen today, oh, dear, dear.
And so, you know, the big money that in my experience is not to buy Apple (AAPL) at $0.05 and sell it at $200. If you could do that good, good on you. Is to just not be there when the earth cracks open and everybody falls in, and to be able to buy the aftermath. And that is what I kind of focus on that. And then why what's going on here? What's all that about then? Why is that doing that? It doesn't make any sense. And then trying to make sense of it.
Trying to understand what's going on below the surface. Not, you know, the Fed said this, and somebody woke up in the morning with a great idea and that's why it moved today, but the underlying drivers of things. And to do that, you have to do a lot of study, but also you have to then synthesize it into something. And you don't have to be right. But if you've got a map, when things start to go away from what you think is going to happen, it gives you an ability to steer back on to the right course.
So that's a short story of my journey. My journey. I have to say this, because I've been on an investment journey. So that's a portrait history of my investment journey.
Daniel Snyder: It is a journey indeed. And I wanted to follow-up and ask or do you - it sounds like you have this wealth of knowledge. From having the young upbringing, talking about commodities, and listening to what was going on there, so then moving into equities, and we're talking internationally around the world and understanding how the workings all happen. What is your approach nowadays, when - are you picking individual stocks? Are you picking futures? Are you in commodities? Are you in crypto? How do you select things nowadays?
Clem Chambers: When I was much younger, I had the opportunity to change my life dramatically, and the big change was I didn't have a television. And if you want to change your world, get rid of your television. If you can get rid of your television, you are left with a lot of time, a huge amount of time. And for me, that meant going on various, you know, wild goose chases into mathematics, into all sorts of knowledge. And all knowledge is valuable as it should be, and knowledge is power. And if you take your knowledge and roll it into your investment, then you'll get some great investments and you should make decent money. And one place that I stopped off at was math a long, long time ago. And I did quite a lot of study there.
And if you look at game theory, which is very powerful and also it can't be used in a very evil manner, not often is. There's a very interesting idea of games. So, if you're -- if you look at the stock market as a game, one side and that side. And in fact, a lot of people have mental pictures of the markets in terms of things like, it's a war, it's a battle. They did this and all that good stuff. Well, actually, if your abstract games out, there's 3 sorts of games. There's a positive sum game where by playing it there's money coming to the table. So, you can imagine that you're playing, I don't know, checkers, and someone keeps bringing sandwiches. So, it doesn't matter who wins and loses, they all get sandwiches out of it.
Yeah. And the game is 50-50 plus sandwiches. So that's a positive sum game. And in that, pretty much everybody should be able to win. And the stock market is on historically a 7% positive sum game. So, if you throw darts at the Wall Street Journal, and I recommend that. Or wherever you do, put it at the bottom of your parrot tray and wherever the parrot [ph] leaves it's breakfast, you buy that stock. On average, you should get 7% every year.
Now, your parrot [ph] is a pretty good stock picker when it comes to that, which is the basis of ETFs, random walk down Wall Street and all that good stuff. And that's a game you want to play because if your parrot [ph] can get 7% in the market, you should be on good ground even if you're wild and crazy and do worse than random. And then this is zero sum game, where you're playing this game at the table. And if you win 10, the guy at the other side loses 10. Well, that's a bit of a skill game, and you better be skilled. And when you look out your window, you see this crystal tower with JPMorgan (JPM) on top, and you realize it's packed out with PhDs and all got computers and all modeling the market like crazy. You know, you got to really have a high opinion about yourself to think that you're going to beat them.
And then you've got a negative sum game. And that's like poker in the casino. So, you sit there playing and the winner takes the pot and all that. But the house has taken 10% on every pot. So, the pot is always shrinking. In that game, you will always lose. You must lose. It's very, very difficult for anybody who constantly plays that game to win, because the tide is always going out. The pot of money you're playing for is always draining away. Now, it's very hard to find a financial market that isn't negative sum. Options. Wow. That's a negative sum game for here.
And, you know, at quantities, it's a negative sum game because you got to realize in the market where's the value coming to the table? Where are the sandwiches? Yeah. And commodity, someone takes it up, someone buys it, someone's got a risk, he's going to dig out and no one's going to want to buy it. Someone's got a risk of non-supplying in with the cocoa beans for his chocolate. So that's why it exists. But in terms of direction, in terms of making money out of supply and liquidity, it's hard to see where the value is there.
When you go to equities, it's very easy. It's economic growth. And progress. You know, someone at Microsoft (MSFT) goes, oh, got a better idea. Oh, I've been betting one of these. So there's value coming into that dynamic. There's no very, you know, maybe there is some value coming into options. I can't say it. Maybe there is some value coming into commodities. So I can't really say it. Maybe there is some value coming to forex, I can't see it. But I can clearly see the sandwiches coming to the table in equities, so that's the game that I play. So that's why I do equities.
Now, obviously, you can go -- well it's proven obviously Yen is going to go up now or it's proven obvious that the Turkish lira is going to go down. But it's very easy to be wrong there. Whereas with equities, your parrot [ph] can do it. So, you should be able to add to your parrots [ph] return. In equities, you do a bit of study, you'd be a bit sensible, read a few books about sensible investing rather than the thousand books about getting rich quick. You'll be in great shape.
So that's why equities are benign because it's a positive sum game. And you only ever want to be playing positive sum games if you want to make money. Now a lot of people you say, well, a lot of people lose money in the market. So, what's going on there? And they get paid not in money. They get paid in kind. They buy stocks that make them feel good. For whatever reason because they go down the country club and say, oh, I bought some of this, I bought some of that. And sometimes maybe it does make the money.
Sometimes it will lose a whole lot of money. So, the market will pay you in the coin that you want to be paid in. And if you want to be paid in prestige, if you want to be paid in fund, I mean, why would you buy a pink sheet stock? But it's a lot of fun. Why would you buy a game stock? Well, it's a lot of fun until you know, rip your wallet out of your back pocket. So people want to get paid in excitement, dopamine fun. The market will pay you in that, but it won't pay you in cash as well. Right? So, when you go down into the areas that someone like Mr. Buffett goes to, which is so dull, dull, dull, dull, dull.
Right? And, you know, why would you want to buy that? Why would you want to buy, you know, Chevron (CVX) or whatever it was -- Exxon (XOM), I wrote a piece on Exxon a few years ago, I very rarely tip single stocks. It's got 400%. Why is it down so low? Who want to sell Exxon? Oh, Exxon, you know, oh, what a boring person you are. Right? So, it has to pay you in cash. So, I stick to boring stuff that pays in cash. So positive sum game, borrowing the pays in cash, and you know, you're really mainly done.
Daniel Snyder: Alright, Clem. So let me ask you this. We're in an interesting year of time. For the last 2 years. Right? This bear market has been going. We've seen the rips of the upside here in the first 2 months of the year, well, first month up, second month down. For you and these boring names or these sectors, what are you favoring for the year to be in a boring name during a time that doesn't seem as boring for investors.
Clem Chambers: Okay. When I was really, really young, my father was making huge, absolutely mind blowing sums in qualities. And I thought, well, you know, I'm going to ask him how he's doing this because all these other parents seems thicker as, you know, thick as mints, as I say, in the UK. And they're counting their pennies. It's the seventies. And, you know, he's making unbelievable money. So go, dad. How do you make money in the markets? This is me. I'm 9 or 10. And he says, very simple son. All you got to know is which way the market's going. And as a 9 year, I wasn't convinced about that.
I said, what do you mean? He said, well, you know, you find something that's going to go up a long way. You buy it. It goes up a long way and then you sell it. Simple as that. All you need to know is which way the markets go.
And I thought, that's really disappointing that my dad won't tell me how you do it. So anyway, 40 years went by, or 30 years went by, and I realized he was absolutely right. All you got to do is know which way the market is going. And if you don't know, what the devil are you doing? You can't make money being long when the market's going down. You can't make money if the market's going to go sideways. So, you have to know the market's going up.
And if you don't know the market is going up, you shouldn't be in it. And it's too damn obvious. And people go, what you mean you got to know the market is going up? But if you don't know, what are you doing? Yeah. What are you doing? So the answer is, the market direction is really, really important. And right now, it's extremely difficult to judge because it's no longer a free market. You know, it's the Fed and it's the Chinese Central Bank. And to a lesser extent, well, it's not really the European central bank. And UK Central Bank, it was very important for recently, but they're generally not a long term influence. But that makes it very difficult and very dangerous.
You have to be able to read the mind of the Federal Reserve, and you know, that's very, very, very tricky. My take on it is as follows: in the past you've got lots of crashes because the regulator had no idea what was going on. I mean, back in 2007 and 2008, I had no idea about all these blooming CDIs and CD squares and all these derivatives had hollowed out a huge section of the financial industry. I had no idea. The same thing goes back with the old S&L loan.
The S&L loan is almost a photo rather the credit crisis, the global financial crisis, whatever they're calling it this month. It's almost a photographic reproduction of the S&L collapse in America. It's the same thing that mostly when hollowed out all the S&L with dodgy derivatives. And when they all failed, the regulator had to come in and say, what are you doing? What's happening? They didn't know it was coming. Right now, they know where we are.
They've been through enough to know that the whole system is under a threat of systemic collapse. Because, you know, one of the those sites, one of the financial institutions would fall out and if not take everything up with it. So, their own point, they're on patrol and they're trying to hold what I would say is a lie. Because the crypto crisis the lockdowns, that took out 20% of global GDP minimum.
And they printed huge amounts of money, so the whole system wouldn't collapse. You can't go looking up your people for a year and bit or a couple of years or whatever, and not bail out the whole country. Because, you know, it's like everyone in America takes holiday for 2 years. And you're going to have an economic collapse, aren't you? It's going to be Armageddon. So, the only way across a wave over it is the oldest trick in the book. The oldest trick. The Romans did it. Everybody did it, which is print and debase your currency.
Right? After every war, they always debase the currency because they have to pay, well, they can't pay back the debt. But everybody pays back the debt by having their money debased. And, you know, hyperinflation in Germany after 20s, the French franc after the second World War, you know, the British had a silver coin before 1918 or 1920. And then they had a half silver coin up to 1947. Every time that hard currency goes out, the money is after a war. And the current -the COVID crisis was the economic equivalence of a war. So, inflation follows. But they do know that everybody's up the creek. It's not like before whether, you know, 6 months later, they worked it all out and they're now furiously bailing away.
They've been furiously bailing away, ever since the COVID lockdowns. And they're still bailing away. So really, what I think you're seeing in America in particular is them trying to hold a line because as you have inflation, so you get back to some normality. Because inflation, you put a large amount of money, and then you get inflation because it comes through the pipe over time. But if you stop printing money, your inflation then disappears because you only get it, when you're increasing the money supply. If you stop increasing the money supply, it works its way through. So here we are, particularly with the Fed, actually trying to manage a transition from a disaster back to normality.
And the stock markets are going to follow that. So, I'm expecting -- was expecting until I thought it's going to, you know, we're going to have a nasty crash. It goes sideways as we did after 2000 because, you know, it wasn't Bernanke. It was Greenspan. His move after the dot-com crash was basically to pin the Dow in a range and you've got 9:11 which knocked it out. But you can see that there's sideways range going for years because they can turn liquidity on and off.
And basically, range bound the cost -- the price of financial assets. And that's what I think they're doing. But it makes it very, very tricky because you're not in a free market. You're in a market that's very, well, totally controlled, fixed if you want to put it this way, cornered if you want to put it another way, by the regulators, in this case, the Fed, Now going back to the UK, UK nearly fell into the North Sea and drowned before Christmas because their pension funds almost went bust, because they had borrowed huge sums of money to buy government bonds, to leverage up government bonds, to leverage up government bonds, to leverage up government bonds, ring a bell.
That's the way it always goes. So, when interest rates went up, they got margin calls on those government bonds they'd borrowed, and they nearly went bust. So out came the government and went -- would bail you out? And the disaster didn't happen, and everyone's forgotten it occurred even because no one remembers a disaster, if it doesn't happen. Anxious is good.
Now the UK stock market is now looks like it's going through the roof because the pension funds are going, well, actually, but not get any more money into those government bonds. You better put it somewhere else. Where are we going to put it? Oh, into equities like we haven't done for the last 20 years that much. So, off the equities are going. So, gain, it's like a government intervention. It's the central bank dictating what happens next. And you've got to be able to guess that. And that's really difficult.
So right now, I'm in a very unhappy place because the market is incredibly difficult to call. Because of the fact that it's basically being led around by the nose, by the central banks. And that puts us all in a quandary, I think.
Daniel Snyder: You did put out a recent article here on Seeking Alpha, talking about the velocity of money and the money supply and the Federal Reserve and everything else. I think, I was just enlightening that you see us in this range bound market, which we've heard elsewhere in the industry as well before. But for now, it's kind of like how long will this be? Does it need to stay in this range bound market in your opinion, maybe for the amount of time of taking out the excess $2 trillion that we pumped into the economy. Do you have any thoughts about how long this might last?
Clem Chambers: Being an old man, I should be sort of [indiscernible] about it and go, well who's going to come to the industry, and the world is going to crash. And you know, there are circumstances when things crop up and they can't fix them. So, for example, the Fed could be pulling liquidity out of the market. The banks could be keeping it in the reverse repo. I'm just saying, just no. We're not going to lend it to anybody. No. No. So, you get this kind of total drying up of money.
Even those large amounts of it, it'll be stuck somewhere. And, you know, putting cash new money into illiquid corners is really what the central banks have been doing for quite a long time now. And because it creates trickle down. So, you print the money, you get it into the system, so people put it into semi or not very liquid assets. And then it trickles down. So, if you put it into housing, for example, oh, yes, a lot of people can't afford it anymore. But, you know, the money that went in got stuck in the houses and then it dribbles out when people remortgage and when they, you know, sell the house or when they drop dead and give it to their children. So that avoids the sort of explosive inflation that we see now.
Now if you want to get explosive inflation, you do the helicopter money. You just write people checks. You say, here you go. Sit at home. Have a grand a month. And bang. They go, yay, let's play Robinhood. Yay. Let's whatever. Let's go buy plastic toys at great expense. Let's have some board eights. So, you know, if you give money to the rich. They don't need it. And it kind of dribbles down and it -- and it keeps everything liquid and groovy, but it doesn't actually have an effect on prices. You give money to "the poor" which is most of us. Yeah? Not only do they have to spend it, they want to spend it.
So, bang up goes prices, up goes the prices of lettuces [ph], et cetera. And you know, that's the trouble that they've been through. But underneath the hood of all this, there are always economic levers and all these economic measures. And the velocity of money had been dropping, and it took a long time to work this out here. What's going on with the velocity of money? What's going on? Well, they're printing it, but they're definite places where it doesn't get used.
So, the amount of money going around the circuit is roughly the same, but the amount of money out there is much more so the average speed goes down because most of it's stuffed under the mattress and in people's socks or in this case in big houses and in Tesla's stock and Apple. I mean, if you look at Apple, 3 trillion market capital, whatever it is. I mean, that's the best part of an iPhone for half the people in the world. I mean, you know, how does that happen? Well, there's all this money. It gets stuffed into assets like that.
And you know, I remember you could buy 30 great house in Hollywood for $150,000, $200,000, $300,000. So, $10 million now. Right? But the money that went in there is stuck there. So, the money supply blows up. But the velocity of the money going round the loop is the same, so the velocity drops off. But of course, if suddenly something squeezes all that money out, you're going to get problem. Or you can't get it out when you need it because it doesn't dribble down.
And all the rich people say, I'm going to, you know, keep it in Microsoft and everyone else can, you know, go -- can stay outside my barbwire compound. So, there's all these problems that that people like the Fed have to do because ultimately, the world does 20% of its GDP. And a huge price was paid to save millions of lives. But a huge price has been paid, and it's now being paid. And one of the ways that governments pay the price for actions is through inflation. Because everybody pays it, it's a hidden tax. So that's where we are. Now there's this money stuck in reverse repo.
So, when that starts to dribble out, that means things are going well. That means the money is being drained out by tightening because as they tighten the money supply, the banks are saying, oh, we'll have that money back from Fed. I'll lend it to the guy down the road. But if they don't, that's going to be interesting. But I think, you know, the Fed gets a very bad rap for what it does because people don't spot the disasters that didn't happen.
They don't spot America falling into a financial abyss in 2009. That could have happened. It was very close. I mean, there was a big company whose name I won't mention just in case they sue me. They're on the edge of going bust. I mean, American -- huge American conglomerate, totally famous. That if America hadn't done all that unorthodox, remember the old unorthodox monetary policy, that's what they were calling it. Well, this is all going to go horribly wrong. What are you doing?
And without that large swathes of American industry would have vanished. It would have been the thirties all over again, but they pulled it off. They pulled it, you know, they're alright. They missed the fact that Wall Street was running away with all these inventions at the time. And you know, the whole world did lock down. And that money was lost, that industry -- the industry didn't turn like a handle, those cars weren't made, those roads weren't laid, et cetera.
That bread wasn't baked. And that money was -- that wealth was not curated. And yet, it's been a nasty dip. It's been a ruffle row, but it's not a catastrophe. And that's been -- although, no one can ever get it perfectly right. But they are now trying to navigate us through out to the other side, and inflation will start to drop off. And there's all sorts of ways that things could go wrong from here that could make matters worse.
So, you know, going back, this -- the money supply in America has been cut-off, has been slowed down. It is in abate, and they will turn it on and off. Depending how well they think or how badly they think stuff is going on. They will not kill the American economy to get inflation down to 2%. They'll just say, oh, yeah, it's bit tricky. We've got a bit more inflation than expected. Yeah. That's because you turn it not marked money. You know, they could turn it off tomorrow, bang.
They could throw the whole of the American economy into depression, and there wouldn't be any inflation. But they're not going to do that. They are turning it on and off, and they're doing a pretty good job playing it by ear because they don't know. Nobody knows. No one's been here before. So, you know, it's a tight rope and they've been very good to get down it and they might fall off it and somebody might knock them off there and who knows, you know, no one's expecting mad Mr. Putin to do what he did.
So, there's plenty of black swans that can come paddling up. But if they don't come along, I'm expecting them to put a little bit of a bend in the market. I think there's potential for another maybe a double bottom on the NASDAQ. It'll be interesting if we get there to see whether there was another leg down. But the American markets are, see, what's happened? This is a bit of a theory on mind, and you won't read it anywhere.
If you go back to the days of hedge funds, you take somebody that makes dog biscuits and someone that makes dog biscuits. And the one that makes dog biscuits well and it's got, you know, Mr. Dog Biscuit runs it, it's great. He's a genius of dog biscuits. And then you got Mr. I don't really care about dog biscuits. I'm just doing my job, dog biscuit company. So, they shot that one, and they long the clever dog biscuits company. Right? And then doesn't matter which way the market goes. The dog biscuit, that's a good company, will go up further, and the bad one will go down, and they make money, market neutral. So that's the hedge.
So, once you take that idea and then you spread it a bit and you spread it a bit and you spread it a bit, you might end up picking six companies going wrong on them and shorting the whole market. And so, you know, there's an element of these vastly overvalued companies. And a notion of value actually. There's a lot of value in the U.S. market. So that might unwind. So, all these, you know, how many billions? How many trillions? How much is that a person? Wow. Those guys they might be in for a reasonably long term problem, a bear market for the big guys.
But at the bottom, then this American company is actually paying dividends, actually on low fees, actually big, really solid companies that will go on forever, they might take a lift. But you know, the ability for the American markets to have these incredibly "overvalued" or "incredibly well-valued", "valued to perfection stocks" in a small group. And then quite a large group of really great companies that are undervalued, that might come on unwound as we go forward.
So, you know, there's a lot of companies out there which I look at and I go, oh, I'd love to buy I mean, take AMD (AMD) and Nvidia (NVDA). I mean, they're going to be AI. I mean, they are AI. All these open AIs and ChatGPT, that's all driven by their hardware. Right? So, you look at that and you go, well, you know, AI is the next big thing. I want to, oh, look at the valuations on that. So, you know, it's hard to look at a lot of those glory companies and see that they aren't vulnerable for this realignment of the America markets in line with squeezing out too much liquidity, which is obviously there.
Daniel Snyder: You painted an incredible picture of what's going on with the economy and money supplies and everything. But for the investors that are maybe not those banks locking up their trillions of dollars at the reverse repo and sitting on it and waiting for opportunity. And they want to put money to work now. Where should people be looking for that alpha in this market if even if it's just like, we're in a chop zone, how do you play the chop? How do people invest during this time?
Clem Chambers: I think you have to -- well, I mean, there's one way to play it. If you're all cash, well, you're in a good spot. You're just frustrated that you're not, you know, that you can't put it to work. If you've got -
Daniel Snyder: But inflation eats away at the cash.
Clem Chambers: Yeah. I know. I know, but not as fast as a stock market crash.
Daniel Snyder: True.
Clem Chambers: So, you know, you've got to decide which way the market is going, as man would have said. Is it going up or is it or is it not going up? So, I think you just have to be hyper-choosy, hyper-hyper-choosy. So, I mean, most people are. I mean, most people are not invested properly anyway. They don't have a diversified portfolio risk. They just have a few things they love, and they put all the money in it, which is madness.
I mean, technically, it's madness, but in a bull market, it makes you seem like a genius or very sadly misguided. You want a diversified portfolio risk. And you want to have, you want to have shares that you don't care if they go down 5% tomorrow. And you don't want to carry your leverage, and you just want to have conviction stocks as I would call it. I mean, what are the tests that I do? I mean, I prefer to be logical about things, but sometimes you have to be emotional about it. If you're thinking about buying a share and you want to ask somebody, should you buy it? You shouldn't buy it. Yeah.
And if you're holding a share and you wonder a) you think, why do I own that share? Sell it. If it troubles you, sell it. You should only have things in your portfolio that you don't really -- you're not bothered, whether you've got them or not. Because they're good companies. Whatever they do, it gives you a feeling that you're happy with that. And, you know, most people and a lot of people in the markets, they're not investors. They're gamblers. And gamblers don't gamble to win.
They're gamble to lose because they get all their brain chemicals from that. They get their dopamine from tracking it. They get their adrenaline from when it goes up a lot or when it goes down a lot. And, you know, they get their relief when it goes down a lot and comes back and all that stuff. They're just the same reason they sit around a table in Vegas. They get that emotional ride. Well, that is very costly way to do things.
But if you're an investor, you really look at the market. You go, well, I'm risk-owned. I want to buy. I wonder why I can't buy. And that's what with me. I'll go and look at it, if I like that. I'll buy it. And then I go, you know, 2 or 3 days will pass. I go, oh, I like that. I'll buy it. And I don't like it because of -- I just like it, because I know it fits in, you know, it's got a low PE, it's got a high dividend. The CEO doesn't write a lot about toffee in his statements. It's been going a long time.
It's got decent balance sheet. And as soon as I see that, the market is - it gives me a bit of a tailwind and I'll buy it. And so, I'll end up with a big portfolio of stuff. And then suddenly, the market will start behaving in a very strange manner. Because if you got a poor decently broad portfolio, it will behave in a certain way. It will you know, if the market goes up 10 points, you'll have made five grand. It goes down 12 points, you'll lose one grand. You -- that's good muck down. I don't know. It will and you'll learn its behavior and then suddenly it'll start to malfunction.
And that's often the signal, the same bad that's about to happen, because whatever's going on underneath the market has changed that dynamic. So, you know, big insurance companies having to sell stocks and switch it into forex or something, all that weighed and wonderful stuff. So, you sat there for 2 or 3 years and everything's going fine and suddenly it all starts to not behave right. So, it gives you a viewpoint on what's going on.
But right now, are you risk-on or are you risk-off? And if you're risk-off, you should just do lots of house cleaning and sell down until you're comfortable. And if you're risk-on, you should be going around trying to find things that fit your investment criteria. I'm mainly invested in the UK because that's the market I know very, very, very well. And I'm a value investor, and there's so much value there. It would make your eyes bug out. So, you know, it's ultra, ultra-cheap stocks.
And there are cheap stocks in America, but in the U.S., I tend to follow, I have followed in the past Internet companies because I understand that. And they're often are cheap ones. And you go -- I used to go, oh, well, you know, if it's not 10 times sales, it's cheap. And if it's a good product, and I've used it, and they're making -- they're good making good sales. And it's a two times sales, why wouldn't I buy that? Because it should be somewhere between 2 and 10, and it's a turn, it's a good business. Buy it and sit on it until they get sold - they get bought out. So, you have your little tricks. You have your little ideas. And when you're risk-on, you go there. When you're risk-off, you leave. Or you just buy and hold and don't look at it and see how that works for you.
Daniel Snyder: I am loving the conversation. I want to make sure that before we get out of here that we get your opinions on what's happening within the crypto space. Because you do put out quite a few articles on Seeking Alpha about crypto and Bitcoin (BTC-USD) and what is happening there. I'm just trying to kind of open the floor to you because, obviously, I have so many questions that could be, like, where do you see it going. What's going on with the price action? I think there was a margin call that people have started speculating about last week, where Bitcoin's price just kind of tanked overnight, one night, like, what are your thoughts on this space? And is it investable right now?
Clem Chambers: Well, my thoughts to this is it's clear that the U.S. government want to get rid of crypto. And they're basically sending their drone armies out to choke it off. Now there was a thing called Operation Choke Point back under the Obama's administration where they tried to put out about 30 different industries out of business. And they did that by cutting them out of the banking system. And most of them, you'd want to see and put out business, you know, pornography, prostitution, payday loans, blah blah blah blah blah blah, ATM providers.
But you can see that some of them were euphemisms for other people, both for people that were borderline crime. But even had things like dating sites, dating services, and coin dealers. And you can look at it in Wikipedia, just type Choke Point. And it they got outed. People got wind of it and it came out in the media and they went, oh, I know it's naughty and I know we shouldn't be doing that. Oh, I'll stop doing it then. Yeah. Right. Of course you would.
So, what is going on with crypto right now in the U.S. Looks very much like choke point. Now, China has already done it, obviously, China, you know, crypto is basically illegal in China, although lots of things I'm sure are illegal in China that go on all the time. And America seems to be wanting to follow that loop. And it's, you know, very difficult to imagine why crypto is so high at the moment with that kind of going on? But I've come up with this completely insane idea, which, you know, you won't hear anywhere else, at least it's original even if it's rubbish. And that is, if you look at Grayscale, which is the Bitcoin trust. Bitcoin is $11,000 there.
And if you look at crypto on Binance (BNB-USD), God forbid you should use it and get arrested or whatever, you know. They're the sole people that are marked out by the U.S. as, you know, bad and must go. But if you look at Bitcoin on an exchange, on a Kraken (KRAK-USD) or a Coinbase (COIN), it's $22,000. So, what's going on there? Well, you could say Grayscale is all connected with the law and therefore, or you could just simply say, in the world of crypto, Bitcoin is worth $22,000. And in the world, in our world or not maybe not mine, but in most people's world, Bitcoin is worth $11,000. So in the real world, it's worth $11,000. But in the crypto world, it's worth $22,000 because that's so divergent. They're such a different world.
And I was thinking about this back in the day, 18th century. There was a set of islands called the Yap Islands. And the Yap Islanders used big rocks with holes in the middle as money. I'm sure small rocks. They're called rai stones. And they used to have to paddle out to this volcano many miles away across the sea and then chip them out of the rock and then put them in the canoes and row back. You can imagine that that had - it's like mining Bitcoin, had a certain value of rarity in it, and that was their currency.
And the more, Yap stones, the bigger they were, the more they were worth. And even if your canoe sunk, and you drop this big Yap stone in the sea, it can never be come out. It could still be counted as an asset, you know. We've seen all those assets before a lot of money. Anyway, they were Yap stones, and they had a great value to the Yap Islanders -- rai stones, not Yap stones.
Anyway, so along comes Mr. Saving ship from Europe and goes, oh, you want to swap those valuable wood trees and spices for some rocks? Have I got a deal for you? Off they went, carved out the rocks, came back, and completely inflated the local currency of rock until it was worthless. Because they could get them easily and cheaply and bring them to the Yap Islanders because they got nice big boats. And you know, the value of a Yap stone to -- sorry rai stone to the people of the Yap was worth a lot more than the value of a rock with the European sailors.
And I've got a funny feeling that there's this tension between the believers, the crypto people like me. And the rest of the world will go, crypto. What's that? And there will be this war between the people that get it, whether it's people that get it, that it's a lot of rubbish, and the people that get it, they'll think it's the best thing since sliced bread. But it's a very, very, very tough road ahead if the American government is set upon no, basically squishing cryptocurrencies, which is what the way it will go. Or basically, squeezing it down into a niche that's so controlled that it will be, you know, it won't have the power and benefits that it has had in the past from being something that could run more right for one of the better way of putting it.
So, I think it's a very mixed picture ahead. And it's still -- I can't understand why it's so high, but it's very, very high. And I'm thinking - I feel until it goes under 10,000, I'm not going to be playing because it's not cheap until it's under 10,000. And I like to buy cheap and then sell when it's not cheap and at the moment it's not cheap. But if you take that and forget everything I've just said and just go, what's Blockchain about? It's about much, much, much, much more than cryptocurrency. Cryptocurrency is just like a side issue. It's where it was born.
It was the tip of the spear. The actual rest of crypto was behind the tip of the spear is much, much more important than Bitcoin and even Ethereum (ETH-USD). It's what Ethereum opened up with its internal computing abilities. And things about NFT, which are keys to a whole -- into - it's a whole new industries. And what's going to come after that? DAOs, maybe some permutation of that. But there's a whole set of applications that haven't even been invented yet, that will just turn everything upside down. Because what Blockchain actually does is it delays all these gatekeepers and middlemen that we are so, you know, that are a pestilence in all our lives.
Daniel Snyder: Clen, I'm going to go ahead and say, let's wrap it up. There was a lot of great information you gave out to us. But if people want to get in contact with you, stay in touch, read your articles, whatever, where can they find you? Where can they reach out to you at that?
Clem Chambers: Well, you can get me. I think I've got on the bottom of my articles with you, I've got an email. And I do read the email and you know, if you've bought a Bitcoin at $60,000 or I've got some guy who's upset with me because I have said Bitcoin will - when it was at $60,000, will get down to $13,000, and it only got down to $15,000, and he missed this little bump. So, you know, I even read those ones.
Daniel Snyder: Clem, I got to say, I was reading the most recent Bitcoin article you put out. I think it was here at the beginning of the year, and you did mention that $13,000 on Bitcoin has been your target for a year, and you could easily see another leg down before Easter. It's kind of sounds like you're still on that boat. Right? Now you're saying under $10,000.
Clem Chambers: You know, it's very hard to get the bottom. And even if it got there, it might only be there for 10 minutes. Because the bottom of the market, it doesn't sit around, wait for the flag sign, I'm here. You get that moment of capitulation. And it can only last minutes. So, you can't expect to get that. All you need to do is get near the bottom and get out near the top. Or get in nearest the bottom and get out in the middle, and you'll be laughing.
But, you know, that these developments with the American government, which seem to be like swarming around all sorts of different pinch points. You know, that's very bearish in my book. And you know, the American government always gets its way. And if they really do want to squish Bitcoin and Eth and all this stuff, then, you know, it's going to have a very hard time and it'll be down to Europe to take up the whole idea. But the thing to remember about new technology is that you can't put it back in the bowl.
And I mean, the funny story that I like to tell is, once upon a time, in Venice, Venice was the Mediterranean superpower. And it had galleys. Like Ben-Hur rowing galleys. And they would -- they fight their wars with galleys. And people came to them and said, no, you got to use sailing ships. You know, sails, and that's the future, that's the new technology. And they went, you got to be kidding me. Right? Because those things, the wind blows one way, they have to go one way. And they can't just turn around like we can around you. You know that's just rubbish.
So, we've ruled the whole of Mediterranean for 500 years with row boats. We're not going to go with these sail boats. That's just rubbish. So anyway, it turned out that the sailing ship, the canoes was the way to go. So, Venice went from a country or a small city that ruled the whole of the Mediterranean to a city that just had a [dam] problem.
Daniel Snyder: Right? Clem, thank you so much for your time today. Everyone that's listening to you right now, I can't encourage you enough to go read Clem's research on Seeking Alpha. He's there. He interacts. I see you answering people back in the comments. So, thank you so much for being a part of the community. Thank you for coming on the podcast. We can't wait to have you on next time.
Clem Chambers: Thanks, Daniel. Look forward to it.
Daniel Snyder: Just a reminder, everyone, if you enjoyed this episode, leave a rating or review on your favorite podcasting app. And we'll see you again next week with a new episode and a new guest.
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Comments (66)
Printing money is the government's racket. It will not allow anyone else to create money from nothing and muscle in on it's racket.
but all it will do is push it off shore somewhere and they will wait it out till another regime steps in and welcomes back crypto | NVDA |
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https://finnhub.io/api/news?id=ca02da8e8b7f4a5ef5aee7334b0b796c77a98b763967c181a5f0733eb18a97c9 | Nvidia Stock: Too Hot To Touch Now | NVIDIA is bringing more innovations to its market every day than many other tech companies have in recent decades. Read why I rate NVDA stock a Hold. | 2023-04-07T16:02:06 | SeekingAlpha | Nvidia Stock: Too Hot To Touch Now
Summary
- NVIDIA is bringing more innovations to its market every day than many other tech companies have in recent decades.
- However, I think the astronomical rally in NVDA stock that we have seen since early 2023 has gotten ahead of itself.
- The stock has sucked up all the positive expectations too quickly, leaving the company no margin for error (and thus no margin of safety for new investors).
- NVDA's fair value per share should be $234-257.4, according to my calculations. This suggests a downside of 5 - 13.5% from the closing price.
- Therefore, I rate the stock as "Hold" and recommend selling call options or waiting for a better entry price.
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Introduction
Nvidia Corp. (NASDAQ:NVDA) is a $677-billion market cap firm that specializes in visual computing and has a global presence, is headquartered in Santa Clara, California. It has 2 business segments: Graphics (44.2% of total sales) and Compute & Networking (55.8%), and its primary end-markets include gaming, professional visualization, data center, and automotive.
Since the beginning of 2023, NVDA stock has gained 84% at the time of writing - the largest gain to date within the structure of the NASDAQ 100 Index:
Given all the hype surrounding the company, I decided not to pass by and try to assess NVIDIA's medium-term prospects - after such strong YTD growth, does it still make sense to buy NVDA stock at current levels?
Based on the title and my rating, you can already see what conclusion I will come to - at the end of this article you will learn the reasons.
NVDA's Recent Financials And Prospects
On February 22, 2023, the company reported Q4 GAAP revenue of $6.05 billion, up 2% QoQ, but down 21% year-on-year. The full-year GAAP revenue of $27 billion was flat from the prior year. Despite the revenue decline in Q4 YoY, the company reported growth in its data center segment (+11% YoY), which includes GPU infrastructure for cloud service providers. NVIDIA saw strong sequential growth in hyperscale customer revenue, although the growth was short of expectations due to some cloud service providers pausing to recalibrate their build plans at the end of the year.
According to Colette Kress [EVP & CFO], the adoption of NVIDIA's new flagship H100 data center GPU is strong, as it is up to 9x faster than the A100 for training and up to 30x faster for inferencing of transformer-based large language models. The company's expertise in AI algorithms, data processing, and training methods can bring the capabilities of generative AI to enterprises. Generative AI applications will help almost every industry become faster, and NVIDIA looks pretty well-positioned to use the generative AI opportunities more and more companies now talk about.
NVIDIA is engaged with many consumer internet companies, enterprises, and start-ups, which are significant opportunities that will accelerate the growth of the data center. The company is also expanding its software and services, releasing version 3.0 of NVIDIA AI enterprise, with support for more than 50 NVIDIA AI frameworks and pre-trained models. Upcoming offerings include the NeMo and BioNeMo large language model services, which are currently in early access with customers.
As you can see from the infographic at the very beginning of this article, the company has shifted its focus to data centers - since 2019, this segment has grown from 25% to 56% of total revenue. This market is expected to grow at ~15% per year [CAGR] over the next few years, according to Mordor Intelligence. And Nvidia's dominance in this market continues, with the company showcasing the performance of its new H100 GPU and the recently launched L4, which is replacing the T4 [Source: HPCwire.com]. The company claims that the H100 and L4 are faster and more efficient than previous versions, with up to 54% and over 3x performance gains, respectively.
Despite these positive developments, there are some potential pitfalls for NVIDIA. The company's total data center sequential revenue decline was driven by lower sales in China, reflecting COVID and other domestic issues. Moreover, the company faces competition from other GPU manufacturers, such as Advanced Micro Devices (AMD) and Intel Corp. (INTC).
Additionally, the company's dependence on cloud service providers for revenue growth poses a risk, as cloud adoption may slow or shift towards in-house infrastructure for some companies. Google (GOOG) published a research paper saying that its custom fourth-generation Tensor Processing Units (TPUs) are faster and more power-efficient than Nvidia's A100 chips when training artificial intelligence models. Google's chips are said to be 1.2-1.7 times faster and up to 1.9 times more power efficient than Nvidia's chips.
Despite some challenges to NVDA's future development, the company is bringing more innovations to market every day than many other companies have in recent decades, according to Jim Kelleher, CFA, an analyst at Argus Research [proprietary source].
Argus Research believes that Nvidia stands out in the AI market, not just because it participates in many parts of the industry, but because it offers a unique AI-as-a-service delivered through the cloud. Jim Kelleher has previously suggested that cloud computing would become the primary way for companies to use AI, due to the significant computing and software resources required. All three of Nvidia's AI foundations announced at GTC 2023 are delivered via DGX Cloud, and the company is partnering with major cloud service providers, such as Microsoft Azure (MSFT), to host Omniverse Cloud. Omniverse Cloud is an AI-based version of Omniverse, which allows companies to design and model human and machine processes in virtual facilities before creating a physical plant.
Due to the versatility of its offerings, NVDA has access to a wide range of markets - the total addressable market [TAM] is estimated at approximately $1 trillion, which should allow the company to grow relatively comfortably in the coming years, even against the backdrop of existing competition in this market.
I expect the company to smoothly return to its previous gross margin levels - new projects and expanding relationships with existing customers will allow the company to do so relatively quickly.
However, NVDA stock's valuation deserves special attention - to what extent is everything described above priced in by the market, and what is left for newcomers?
NVIDIA: Valuation and Expectations
From its local bottom in October 2022, the share has soared by > 140% in less than 6 months - about 29% are still missing to reach the all-time high level:
At the same time, it is important to understand that we are talking about a fast-growing company whose EPS growth has increased at a CAGR of about 27.9% over the last 9 years.
As the business cycle reaches maturity, growth companies like NVDA should experience multiple contractions - market valuations become less optimistic and P/E and other price ratios start falling year over year, pricing in lower financial growth going forward. This was the case in the 2017-2019 and 2020-2022 periods, and as history shows, not every multiple contraction leads to a decline in share price.
The increase in the P/E ratio in the chart above should not scare you. According to Seeking Alpha, the market currently pricing the company's EPS growth over the next 6 years at 25%. That's a pretty generous estimate in my opinion - but implied P/E multiples are expected to drop to 60x by the end of FY2024 and 21.2x by FY2028. However, in the context of long-term median P/E ratios, NVDA's FY2024 looks quite high in my opinion:
Beyond that, I am puzzled by one more thing. In early September 2022, the market was predicting about the same EPS growth rates for the coming years as today (+/-). However, at that time, the forwarding P/E ratio was 40% lower than today. So it seems that NVDA's recent rally has sucked up all the positive expectations, leaving a little margin of safety for new buyers.
I think that given the new wave of AI developments, the fair price-to-earnings forwarding ratio should be in the 50-55x range. If the company again beats FY2024 EPS expectations, as it has 100% of the time over the last 8 years - say by 4% (close to average) - then fair value per share should be $234-257.4, according to my calculations. This suggests a downside of 5 - 13.5% from the closing price [of April 6, 2023].
Morningstar Premium's valuation system sees a much deeper downside for NVDA than the worst of my 2 scenarios:
Summary Thesis
I think the astronomical rally in NVDA stock that we have seen since early 2023 has gotten ahead of itself - the stock has sucked up all the positive expectations too quickly, leaving the company no margin for error (and thus no margin of safety for new investors in the company). However, the downside I calculated (5-13%) is not deep enough for me to issue a "Sell" rating - there is always the risk that I missed something or did not fully understand the issue of evaluating the company's prospects (I usually assign a "Sell" rating at an overvaluation of 15% or more). NVIDIA seems to me to be one of the clear market leaders in terms of innovation and coverage for expanding AI solutions on a global scale. Therefore, I rate the stock as "Hold" and recommend selling call options or waiting for a better entry price.
Thank you for reading!
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A generalist in nature, common sense investing approach. BS in Finance. The thesis description can be found in this article.
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Comments (33)
As Google compared their T4 to the older Nvidia A100
The new Nvidia GPU series is called the H100 currently in production.
H100 data center GPU's is up to 9x faster than the A100 for Training and up to 30x faster for Inferencing of Transformer-based Large Language Models / LLM's. The new H100 specialized accelerated systems. One of the four Accelerated Systems the L4 up to 54% more efficient and over 3x performance gains.
Why is this inaccurate statement by Google?
Google publish the article the day before the MLPperformance Testing was released. Usually the Testing is done every 6 months
Google's T4 would have been slaughtered comparing their T4 to Nvidia's new H100
Here you go the article from Tom's Hardware on April 6th
www.msn.com/...Nvidia submitted an Off-the-Shelf Stock offering about 2 months ago.
I'd never heard of it until that day
When I did research I found out they filed the paperwork with NASDAQ.
After the paperwork is submitted Nvidia has s 3 year time period for a stock offering or it will expire.
Right after the Off the Shelf stock offering was GTC 2023.
Nvidia's Stock is going to split again. Nvidia is already ready for the explosive growth in AI revenue.
I've held my stock for over 6 years. I haven't sold a single share. I had been following AI and I figured out they were the company to bet on 4th Industrial Revolution.
I'm more confident today than when I purchased all my Nvidia stock in January 2017.
Long on Nvidia.
Thank you for the article as it was well written accurate except for the Google article again not your fault.
Good luck
That's why they did not enter the MLperformance test.
If I remember correctly Nvidia's new Hopper GPUs are separated into 8 Tensor core segments. for Artificial Intelligence. The same with their graphics cards. Developed with separated AI Tensor cores with AI drivers for shading and rendering.
Most new games are tuned for Nvidia. AMD and Intel do not have AI incorporated into there GPUs. Not separated into segmented cores. Just plain vanilla GPUs | NVDA |
https://finnhub.io/api/news?id=d270ab67a4cdb28c830bb4d179bfdc4da17c80d1208d06d7dc1ef744fe4b8b74 | 7 Undervalued Semiconductor Stocks to Buy in April 2023 | Last year, investors may have noticed a massive flight of capital took place. Capital moved away from tech, as widespread concerns about rising interest rates caused fear. Semiconductors are integral to the tech sector, and suffer as a consequence. That said, some semiconductor stocks have rebounded, trending upward since late last year. This can be easily seen by looking at various ETFs, such as the iShares Semiconductor (NASDAQ:SOXX). Still, the semiconductor market remains well below its earl | 2023-04-07T12:47:01 | Yahoo | 7 Undervalued Semiconductor Stocks to Buy in April 2023
Last year, investors may have noticed a massive flight of capital took place. Capital moved away from tech, as widespread concerns about rising interest rates caused fear. Semiconductors are integral to the tech sector, and suffer as a consequence. That said, some semiconductor stocks have rebounded, trending upward since late last year. This can be easily seen by looking at various ETFs, such as the iShares Semiconductor (NASDAQ:SOXX).
Still, the semiconductor market remains well below its early 2022 levels, as measured by these indices. So, it’s reasonable to assume that investors could see continued returns in the near-term, as a rebound continues. The EV sector should continue contributing to the growth, and the emergence of AI poses further prospects.
Ultimately, investors who play the long game will likely succeed in owning undervalued chip stocks, particularly as growth projections remain robust.
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Here are the seven top undervalued semiconductor stocks on my watch list now.
Skyworks Solutions
$111.35
MaxLinear
$33.69
Intel
$32.81
ON Semiconductor
$75.34
Advanced Micro Devices
$92.47
Nvidia
$270.37
Marvell Technology
$39.26
Skyworks Solutions (SWKS)
Source: madamF / Shutterstock.com
Skyworks Solutions (NASDAQ:SWKS) sells many products, including amplifiers, attenuators, diodes, modulators, isolators, optocouplers, and phase shifters, among other things. If you’re a relative outsider to the industry (like me), that doesn’t mean a lot. What’s important here is that Skyworks Solutions stock produces chips for the ubiquitous, always-on technology that dominates our society.
Fortunately for investors, shares of SWKS stock are undervalued, based on Wall Street’s analysis. Analysts believe it’s underpriced by roughly $15 per share. Gurufocus, a technical-analysis screener, believes Skyworks is much more deeply discounted. It estimates that SWKS shares have approximately $70 of upside.
The firm’s strong performance seems to substantiate these upbeat views. Skyworks Solutions exceeded consensus revenue expectations while posting record cash flows in Q1. The company continued to build relationships with leading firms across IT, EVs, and data centers, each a promising growth area in its own right. Skyworks has grown revenue by 20.2% over the last three years, ahead of more than two-thirds of its semiconductor competitors.
MaxLinear (MXL)
Source: Shutterstock
MaxLinear (NASDAQ:MXL) is another undervalued semiconductor stock worth considering. The company is focused on the realization of multi-gig connectivity. In other words, MaxLinear creates technology that allows internet speeds over 1 gigabit per second. So, the company’s appeal is in fulfilling our ever-increasing demand for more critical information at incredible speeds.
Current estimates suggest that MXL stock has 33% upside above its $34 share price. The firm’s financial results support such a view. MaxLinear’s revenues reached $290.6 million in Q4, up 17% year-over-year. While that is a strong figure, it is still lower than the 45.8% revenue growth the company has experienced over the past three years. That slowing growth likely scares away many investors. This is especially true following a 2022 in which the chip industry struggled.
However, MaxLinear still saw revenues increase 26% in 2022 overall. Net income increased, too. Perhaps most importantly, free cash flow from operations doubled to $388.7 million. These numbers suggest more upside could be on the horizon for this strong performer.
Intel (INTC)
Source: Kate Krav-Rude / Shutterstock.com
Intel (NASDAQ:INTC) is, in many respects, the opposite of MaxLinear and other smaller, rapidly-growing chip stocks. Intel is a massive player in this sector, but its performance hasn’t been beautiful. The firm has been in a prolonged slump, culminating in a Q4 performance that saw sales drop 32% year-over-year.
Many will rightly argue that the company has suffered due to its incompetence. But the company has also faced severe competition as well. That means there’s reason to suspect that INTC shares might be oversold.
Intel’s price-earnings ratio of 16.4-times is ranked better than 58% of its semiconductor peers. So, it’s not unreasonable to say that INTC shares could be oversold. Other traditional valuation metrics, including the price-to-book ratio, also indicate that Intel’s current price should be higher. It’s probably a less-compelling choice on this list, but Intel remains arguably a decent value for investors at current levels.
ON Semiconductor (ON)
Source: Shutterstock
The reason that ON Semiconductor’s (NASDAQ:ON) stock continues to be discounted is its meteoric growth. The company joined the elite ranks of the S&P 500 in June of last year following a rapid ascent that saw this company become a household name. Last year’s slide in the chip industry made investors suspect ON shares would fall too. That hasn’t been the case, as the company continues to exceed expectations. Yet, ON stock remains undervalued, an opportunity for investors everywhere.
As mentioned, On Semi beat expectations recently, with revenues and earnings coming in just ahead of analyst forecasts. The company’s growth is something of a curse, though. Macroeconomic uncertainty caused the company to issue unfavorable guidance for the first quarter. Investors have grown accustomed to earnings beats, so the news was poorly received.
I would rely instead on the company’s $3 billion stock repurchase plan as evidence that shares value will rise over time.
Advanced Micro Devices (AMD)
Source: JHVEPhoto / Shutterstock.com
On the one hand, it’s difficult to characterize AMD (NASDAQ:AMD) stock as ‘undervalued.’ Its current price is higher than its average target price after all. Technically-speaking, it’s ‘overbought.’
So why do sites, including Gurufocus, place their assessed value $40 higher than current prices? While I can’t say with 100% certainty, I guess it has something to do with the company’s performance, especially in the relative sense.
AMD’s sales increased by 44% in 2022 and 16% in the fourth quarter. Compare that to Micron Technology (NASDAQ:MU), where Q2 sales fell by nearly 33%. Micron continues to see operational troubles, even as it garners lots of press as an American chip-maker in an era where re-shoring is paramount.
So, although AMD stock appears fully-priced at first glance, I’d argue that it remains undervalued. Capital could reasonably be expected to flow into AMD stock, as investors realize that performance isn’t consistent across the chip sector.
Nvidia (NVDA)
Source: Shutterstock
Nvidia (NASDAQ:NVDA), like Micron Technology, suffered a decrease in sales of late, with Q4 revenues down 21%, to $6.05 billion. Last year, Nvidia’s revenue growth flattened, and its net income dropped precipitously. Yet, investors can’t get enough NVDA stock, despite this stock remaining relatively fully-priced.
The reason is likely that Nvidia is doing more than enough to capture investor interest. The company’s data center revenues grew by 11%, accounting for over half of overall sales. That likely helped. And automotive revenues increased by 135%. That’s the key driver most investors have been watching, considering the amount of technology today’s vehicles require. As the EV sector continues to grow at a rapid pace, so too should NVDA stock.
But it’s AI that is probably the overarching catalyst investors are focusing on when it comes to NVDA stock. Nvidia announced partnerships across banking and robotics that leverage its AI capabilities, making the company relevant in the futuristic world we find ourselves in.
Nvidia is angling to carve out significant market share in the intersection of AI and enterprise. That will mean generative AI, chatbots, and other AI catalysts could drive NVDA stock higher from here.
Marvell Technology (MRVL)
Source: Michael Vi / Shutterstock.com
Marvell Technology (NASDAQ: MRVL) is an up-and-coming chip stock name. Its performance in the fiscal year 2023 was strong, which matters a great deal.
The company has proven it can sell chips even in unstable macroeconomic conditions. The company’s sales increased by 6% in the most recent quarter, and by 33% over the last year. Remember, Nvidia’s sales were relatively flat over the same period. That’s a solid testament to Marvell Technology. The company is coming off its best year in terms of sales in its history.
Surging sectors including 5G, auto, enterprise networking, and cloud growth drove the company’s strong performance. Marvell Technology has aligned its business operations with some of the fastest-growing semiconductor sectors as we near the midpoint of 2023.
Yet, MRVL stock remains undervalued based on its average target price of $56.35, while it currently trades for around $40. The company is still producing losses, but those losses have narrowed to $163.5 million at year’s end from $421 million a year earlier. Thus, this is a company that’s making a compelling (and rapid) move toward profitability. Long-term investors should like that.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks.Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
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The post 7 Undervalued Semiconductor Stocks to Buy in April 2023 appeared first on InvestorPlace. | NVDA |
https://finnhub.io/api/news?id=1753cfe7ab811ea49e343ed6bbf9bfa180a08bd56099ec5b3d805658d1c77c2d | How to invest in the A.I. boom: 11 stocks and 4 funds to buy now | Generating returns in your portfolio from the growing field of artificial intelligence. | 2023-04-07T08:45:00 | Yahoo | How to invest in the A.I. boom: 11 stocks and 4 funds to buy now
When it comes to A.I., investors have a torturous choice to make: Believe the hype and jump in headfirst, or ignore the hype and potentially miss out on a once-in-a-generation tech transformation. “It’s the early days in terms of picking winners and losers” of the A.I. boom, explained Scott Helfstein, head of thematic solutions at Global X ETFs. “We’re not sure yet of the different ways that we’re going to be able to monetize this technology. Some are obvious, and some are not obvious—and it might be that the ones that are not obvious become more important over time,” he said. According to analysts at PricewaterhouseCoopers, A.I. could add up to $15.7 trillion in global GDP in 2030, which is more than the current output from India and China combined.
But experts caution that investing in generative A.I. is far more nuanced than just buying Big Tech stocks that have integrated the technology. “This could be another one of those moments where we’re getting to the peak of the hype cycle, so companies are going to spend the money, but they’re going to find it’s a lot harder to build something truly compelling,” explained Peter Cohan, business professor at Babson College. “Microsoft has a big investment in OpenAI, and they also have GitHub, which has a lot of the software that can be used for developing A.I., yet I still don’t know if that’s going to generate enough revenue for Microsoft for A.I. itself to become a significant part of its business,” he noted.
But it’s impossible to ignore that in an era of high inflation and subpar index returns, companies and funds that focus on A.I. and machine learning have strong growth potential. For example, the Global X Robotics and Artificial Intelligence ETF (BOTZ), which tracks 44 holdings of companies involved with industrial robotics and automation, nonindustrial robots, and autonomous vehicles, is up 18% year to date, while the S&P 500 is just up 7%. For investors who want to get in on this burgeoning area, here are the smartest ways to approach investing in A.I.
Big Tech
A plethora of companies across sectors are integrating A.I. into their operations, from Land O’Lakes to Microsoft to cybersecurity firm SentinelOne. So you may already be indirectly investing in A.I. Big Tech is leading the charge from both investment and innovation standpoints. “A.I. is being defined actively by leading tech giants,” explained PitchBook tech analyst Brendan Burke, citing the leaders as Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN), and Meta (META). “Those companies have the research labs and the operational tools to bring basic innovations in A.I. algorithms to market,” he said.
If you want to bet on Big Tech, Microsoft has forged ahead the furthest with its $10 billion investment in OpenAI and the subsequent rollout of revamped search service Bing with new A.I.-powered search features. While Bing’s features have debuted with some bizarre and disturbing interactions with users, if the technology does successfully upend Google’s search, Microsoft has a huge market share to gain. “We believe incorporating ChatGPT capabilities into Bing may provide Microsoft with a once-a-decade opportunity to unseat Google’s Search dominance,” wrote D.A. Davidson software analyst Gil Luria in a recent research note. Luria increased Microsoft’s price target from $270 to $325 and gave the firm a buy rating. “While Google has announced a project to add [generative] A.I. to Google Search, we believe Bing’s head start could create a permanent share shift,” Luria wrote. Yet with the speed bumps in the rollout of Bing, it is clear that generative A.I. chatbots still have a long way to go.
Bank of America analysts, on the other hand, wrote in a recent report that Meta’s stock has the most to gain from A.I. implementation, citing the company’s incorporation of A.I. into its Reels video feature. “We expect an outsized impact from the adoption of A.I. given rich consumer data sets and massive ramp-up in A.I. investments, led by Alphabet, Meta, and Amazon,” the report detailed. Bank of America gave Alphabet and Amazon buy ratings in its forward-looking 2023 report.
Comparing the A.I. boom to the dotcom boom of the early 2000s, it is clear that if you pick the right companies you can still make out very well. “Even if you bought Amazon at the height of the dotcom boom, you still would have made a lot of money,” said Tom Taulli, a startup advisor and A.I. author.
But the giants have a problem—they’re huge. “It’s harder to move the needle for [Big Tech] as opposed to some of these smaller or midsize companies that are going to wind up playing in space that is going to be significant,” Helfstein said. “Maybe they won’t be as recognizable, but they have better growth potential, which can turn into investment returns,” explained Helfstein.
The “picks and shovels” of the A.I. boom
During the California gold rush, some of the savviest investors eschewed chasing gold itself and made a mint investing in the picks and shovels that those looking for riches needed for their search. Cohan sees an analogy in A.I. “It might well be that the initial beneficiaries of A.I. expansion are going to be in the hardware space, instead of the software space,” Helfstein predicted.
So what “picks” do experts recommend? PitchBook’s Burke explained: “A.I. growth is based on the improved efficiency and the decreased cost of [graphics] processing units (GPUs). The most basic enabler for these new models is the latest hardware innovations coming from chip giants such as Intel (INTC), Advanced Micro Devices (AMD), and Nvidia (NVDA).” Semiconductors are necessary for A.I. software to function, and the companies that produce them will supercharge its expansion.
Nvidia is currently the leading chip producer in the A.I. space. “A lot of capital is going to go into these generative A.I. startups,” said Cohan. “And the question for investors is: What technology will they be using to build their APIs? The answer is that they’re very likely to be using Nvidia chips.”
“It’s the early days in terms of picking winners and losers.”
Scott Helfstein, head of thematic solutions at Global X ETFs
Beyond chips, there is software infrastructure to support the huge volume of data that the A.I. explosion will rely on. “The next layer up, there’s a need for enterprises to integrate their data into centralized data warehouses to improve the performance of their A.I. models,” Burke explained. “That’s where database management vendors, such as Snowflake (SNOW) and Alteryx (AYX) can help enterprises,” he said. Zacks gives both companies buy ratings.
Dynatrace (DT) is another cloud-computing infrastructure firm that could have upside. The company operates a software intelligence platform that uses A.I. and automation. Bank of America thinks the stock, which is up 1% year to date, has further to run, giving it a buy rating.
Another winner could be Palantir Technologies (PLTR), which is projected to increase its market share and revenue as one of its biggest clients, the U.S. government, expands its military A.I. implementation. In October 2022, the company signed an $85 million contract with the U.S. Army Materiel Command to use its software to increase military A.I. capabilities. The company was founded in 2003 by a group of VCs including Peter Thiel, Nathan Gettings, Joe Lonsdale, Stephen Cohen, and Alex Karp. While the stock is up 31% year to date, analysts (like those at BofA who have a “buy” rating on the stock) expect it can further capitalize on the A.I. boom.
A.I.-focused funds
Though A.I. technology has had a breakthrough year, there are already a robust number of funds and ETFs that give you exposure to the sector, which is a win for investors. “With these emerging technologies, people are better off playing a basket of companies, rather than putting their chips in a single one,” said Helfstein. He drew a comparison to Tesla in the electric vehicle industry. While Tesla was first out of the gate to dominate the EV market, competitors are now lining up to surpass the reigning EV king: “I don’t think we’re gonna live in a world that’s dominated by a single A.I.—it’s going to be a competitive market.” Not to mention the inherent unpredictability of an industry evolving at warp speed. “This can be a volatile space; you never know what could happen tomorrow, so diversification is important,” explained Taulli.
A solid option is the Global X Robotics and Artificial Intelligence ETF (BOTZ), which is up 18% year to date and has $1.64 billion in assets under management. Its top holdings include Nvidia, Intuitive Surgical, Upstart Holdings (UPST), Keyence (KYCCF), and ABB (ABB).
BlackRock’s iShares Robotics and Artificial Intelligence Multisector ETF (IRBO) is another option, which has 118 holdings and around $288 million in assets under management. Year to date, the fund is up 15%, solidly outpacing the S&P 500.
A widely diversified option is the ROBO Global Robotics and Automation Index ETF (ROBO), which holds 79 stocks with the top five holdings representing just 9% of the fund’s value. Year to date, the ETF is up 12%.
The Defiance Machine Learning and Quantum Computing ETF (QTUM) has roughly $116 million in assets under management, and its top holdings include Nvidia and Alteryx. Year to date, its return is roughly 16%, and the fund received a five-star rating from Morningstar Research in December 2022.
Overall, experts advise caution—and patience—when it comes to investing in generative A.I. “Investors should keep in mind that breakthroughs tend to be nonlinear,” explained Helfstein. Having just seen a period of what he calls “exponential innovation,” don’t be shocked if now we “level off for a little bit” before the next surge.
A version of this article appears in the April/May 2023 issue of Fortune with the headline, “Buying the A.I. boom.”
This story was originally featured on Fortune.com
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https://finnhub.io/api/news?id=cc2ffbd0b5f115aff22e89269a96194de5a3a324bf7b9909c0c2a14c6d614704 | Nvidia Stock Hit Its Profit Goal After Huge Rally In 2023 — Is It A Buy? | Nvidia earnings are set to rebound while AI leadership has excited investors in the leading chip stock. Nvidia stock is on a tear. | 2023-04-07T07:14:48 | Yahoo | Nvidia More Than Triples In 2023 On AI Boost — Is It A Buy?
Nvidia continues to skyrocket on blowout earnings and guidance due to its AI leadership. But is NVDA a buy?
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KKR, a leading investing firm, will report Q2 earnings Monday. On May 18, KKR reported an earnings reversal from a 2-cents per share loss a year ago to 36 cents a share profit. The 81 RS Rating puts KKR in the top 19% of all stocks for price performance over the past year.
Lennar, up 38% year to date, bounces off technical support into a buy zone. The stock's 21-day moving average could be another early entry.
Warren Buffett’s Berkshire Hathaway swung to a profit in the second quarter, boosted by its insurance division and strong gains in its massive investment portfolio, while its cash pile swelled. The Omaha, Neb., company, which owns businesses including insurer Geico, railroad BNSF Railway and sportswear maker Brooks Running, posted net income of $35.9 billion, or $24,775 a Class A share equivalent. Berkshire’s operating earnings, which exclude some investment results, rose slightly to just over $10 billion from $9.3 billion a year earlier.
Warren Buffett is undeniably the most famous and influential investor in modern history, based on his extraordinary performance record. Not surprisingly, the investment portfolio of Berkshire Hathaway Inc. (BRK.A), the holding company employing the Oracle of Omaha as chairman and CEO, receives wide media attention and scrutiny, even though Buffett is no longer making every investment decision. Despite his unparalleled success, Buffett's investment model has long been transparent, straightforward, and consistent.
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https://finnhub.io/api/news?id=77f8aa688c4829482cea9d5eed95d24f9ab500eb69e9f6228fd6ffd981edefdb | 4 things could shield stocks as Goldman warns of worst earnings season since pandemic | The outlook for corporate profits during the first quarter is looking pretty gloomy. | 2023-04-07T06:46:00 | MarketWatch | The outlook for corporate profits during the first quarter is looking pretty gloomy.
But a team of analysts at Goldman Sachs Group see hope for individual companies that could manage to buck the trend by delivering on four areas of critical importance to investors.
Analysts cut their outlook pretty aggressively as the economic outlook deteriorated during the first quarter. As a result, operating profits are expected to have shrunk by 6.8% last quarter, according to an average of Wall Street forecasts compiled by FactSet.
If this comes to pass, it would mark the second consecutive quarter of earnings contraction, and the worst quarterly performance since the third quarter of 2020, when corporate profits cratered by more than 30% as COVID-19-inspired lockdowns rocked the global economy. S&P 500 earnings contracted by 4.6% during the fourth quarter of 2022, according to FactSet data.
As traders brace for earnings season to be a crucial test for stocks, some equity analysts are advising clients on strategies that could help to protect their portfolios if a flood of dour corporate results sends stocks careening lower.
Profit margins will be key
Corporate profit margins are being squeezed by the worst bout of inflation in four decades. Last quarter, margins for S&P 500 firms retreated by 11.2% at the index level, surpassing expectations for an 11.1% drop.
Because of this, companies that have a credible plan for protecting their margins should expect to be rewarded by investors, according to the Goldman team, led by David Kostin, the bank’s chief U.S. equity strategist.
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“With margins projected to contract by a greater amount than in any other quarter since the pandemic, investors will focus on which companies manage to preserve margins and by what means,” the team said.
Strategies for improving pricing power, enacting cost cuts or imposing more disciplined expense-management will likely be rewarded.
Are companies using AI to cut costs and improve efficiency?
The rise of ChatGPT has helped make artificial intelligence one of the most closely followed investment trends of 2023, according to MarketWatch’s James Rogers.
Perceived dominance in the AI space has helped fuel a market-leading rally in megacap tech names like Microsoft Corp.
MSFT,
So it probably shouldn’t come as a surprise that companies might be able to paper over weakness in profits and sales with a convincing pitch about how they plan to use AI to their advantage — especially if it helps boost profit margins by making their workforce more efficient, the Goldman team said.
“One new potential boon to margins could be the gradual adoption of generative artificial intelligence by companies to automate manual tasks and boost labor efficiency,” they said.
Belt-tightening will remain in focus
Signs that corporations are cutting back on spending are beginning to materialize, the Goldman team said.
Share buybacks via Goldman’s buyback desk declined by more than 20% compared with 2021 during the fourth quarter, and activity has remained weak, the analysts said. What’s more, several leading economic indicators suggest companies are paring back spending on capital projects and research and development.
So expect investors to pay close attention to any and all signs of belt-tightening during quarterly reports and the ensuing analyst calls with top executives.
Is China’s reopening making a difference?
Chinese officials including President Xi Jinping have promised a powerful reopening. Amid signs of slowdown in the all-important U.S. services sector, as well as in other parts of the economy, companies could look to China for a boost.
“We expect investors will keep their ears perked for discussion around how much this has boosted earnings,” the team said.
Strategies for protecting your portfolio
Highflying megacap tech names have been keeping indexes like the S&P 500 aloft, while value-oriented names have lagged the broader market after outperforming during 2022.
Technically, when corporate earnings shrink for two quarters in a row, it qualifies as an “earnings recession.” But while an earnings recession typically coincides with a broader economic recession, it doesn’t always have to be that way, according to Ed Yardeni, president of Yardeni Research.
Historically, S&P 500
SPX,
“It might be different this time, however: earnings could fall without an economywide recession,” he said.
But regardless of what happens with the broader economy, some expect weak corporate earnings could drive the S&P 500 back toward its lows from October, when it closed below 3,600.
Phil Orlando, chief equity market strategist at Federated Hermes, is one of them.
“We continue to advocate a tactical defensive investment posture, with a focus on less-expensive value, small-cap and international stocks and sectors with lower betas and higher dividend-yield support. We also still like cash and Treasurys,” he said in emailed commentary shared with MarketWatch.
The bulk of S&P 500 companies will report their results from the January through March quarter in the coming weeks. By May 5, 87% of S&P 500 firms will have reported, according to Goldman’s earnings calendar. | NVDA |
https://finnhub.io/api/news?id=387f7c633c844442f643aa722c8c64a1a806f97e899f388a36db5e7d458bf982 | These 4 things could protect stocks as investors brace for worst earnings season since pandemic, Goldman says | Looking for stock market analysis and research with proves results? Zacks.com offers in-depth financial research with over 30years of proven results. | 2023-04-07T05:47:00 | MarketWatch | This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.
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At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.26% per year. These returns cover a period from January 1, 1988 through July 3, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.
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https://finnhub.io/api/news?id=6beaab549ad215aa9e863851ba63ff44642977d294c6b772543525d0f4740d67 | Is AMD Stock a Buy Now? | Data centers are an increasingly lucrative business for AMD, with its hardware powering servers worldwide. The company launched its Genoa series of data center chips in November 2022, with Microsoft's Azure, Alphabet's Google Cloud, and Oracle already signed on as cloud computing clients. Considering AMD's data center revenue rose 64% last year, the success of new chips is promising for the segment's long-term outlook. | 2023-04-07T04:17:00 | Yahoo | Is AMD Stock a Buy Now?
Data centers are an increasingly lucrative business for AMD, with its hardware powering servers worldwide. The company launched its Genoa series of data center chips in November 2022, with Microsoft's Azure, Alphabet's Google Cloud, and Oracle already signed on as cloud computing clients. Considering AMD's data center revenue rose 64% last year, the success of new chips is promising for the segment's long-term outlook. | NVDA |
https://finnhub.io/api/news?id=d9a52340740a58bc1273c638f485bb198f43de1c89536116cbc811d55ce45f46 | Manager Of Top T. Rowe Price Fund Is Still 'Pretty Cautious' | Looking for a go-anywhere stock fund that isn't trapped in a style box and can buy stocks of all sizes and styles? Well, Justin White's T. Rowe Price All-Cap Opportunities Fund checks all those boxes. | 2023-04-07T04:00:57 | Yahoo | Investopedia
Warren Buffett is undeniably the most famous and influential investor in modern history, based on his extraordinary performance record. Not surprisingly, the investment portfolio of Berkshire Hathaway Inc. (BRK.A), the holding company employing the Oracle of Omaha as chairman and CEO, receives wide media attention and scrutiny, even though Buffett is no longer making every investment decision. Despite his unparalleled success, Buffett's investment model has long been transparent, straightforward, and consistent. | NVDA |
https://finnhub.io/api/news?id=055ce6163ee041f54feb832af7737ddae03b32686ae40c7845d4f5362e1f6524 | The 3 Best Metaverse Stocks to Buy for April 2023 | Looking for stock market analysis and research with proves results? Zacks.com offers in-depth financial research with over 30years of proven results. | 2023-04-07T03:31:00 | InvestorPlace | This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.
Copyright 2023 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.26% per year. These returns cover a period from January 1, 1988 through July 3, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.
Visit Performance Disclosure for information about the performance numbers displayed above.
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Real time prices by BATS. Delayed quotes by FIS.
NYSE and AMEX data is at least 20 minutes delayed. NASDAQ data is at least 15 minutes delayed.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. | NVDA |
https://finnhub.io/api/news?id=90a3b7a4a287a382f9f3356b1c1eaa2619478dddba3a66a2374d7329f147e3da | Meta's Bet on Generative AI Is Really a Stepping Stone to the Metaverse | It seems like a decade has passed since Facebook rebranded its corporate entity to Meta Platforms (NASDAQ: META) (it was only in late 2021). Meta was heralding a 3D digital future with sweeping bets on the metaverse. Fast forward just a year and a half, though, and Meta is back pedaling and heralding 2023 as "the year of efficiency," replacing thousands of workers with new AI tools to make its backend processes more profitable again. | 2023-04-07T03:15:00 | Yahoo | Meta's Bet on Generative AI Is Really a Stepping Stone to the Metaverse
It seems like a decade has passed since Facebook rebranded its corporate entity to Meta Platforms (NASDAQ: META) (it was only in late 2021). Meta was heralding a 3D digital future with sweeping bets on the metaverse. Fast forward just a year and a half, though, and Meta is back pedaling and heralding 2023 as "the year of efficiency," replacing thousands of workers with new AI tools to make its backend processes more profitable again. | NVDA |
https://finnhub.io/api/news?id=3b78f0490ba679e2d0eaadd454568f0252c3442b08812af6d49476d32c5c86e7 | Nvidia Stock Is an Undeniable Momentum Pick | In 2023, the artificial intelligence (AI) revolution is unstoppable – and so is Nvidia (NASDAQ:NVDA) stock. Could $300 just be a stepping stone on the way to higher share prices? It’s entirely possible as Nvidia’s chief executive is all-in on machine learning, and the company is ready to deploy AI technology practically anywhere and everywhere. Who would have imagined that the hottest tech topic of this year’s first quarter would be AI? Yet, here we are and, much to the investing community’s sur | 2023-04-07T03:00:08 | Yahoo | Nvidia Stock Is an Undeniable Momentum Pick
In 2023, the artificial intelligence (AI) revolution is unstoppable – and so is Nvidia (NASDAQ:NVDA) stock. Could $300 just be a stepping stone on the way to higher share prices? It’s entirely possible as Nvidia’s chief executive is all-in on machine learning, and the company is ready to deploy AI technology practically anywhere and everywhere.
Who would have imagined that the hottest tech topic of this year’s first quarter would be AI? Yet, here we are and, much to the investing community’s surprise, Nvidia is developing into an AI hardware juggernaut.
You just never know what Nvidia might do next. Recently, the company was famous for manufacturing graphics processing units for video game consoles. Nvidia is changing this year and, as we’ll discover, the company’s chief executive is heralding a new and exciting chapter for the tech-component maker.
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Nvidia
$269.78
Nvidia’s CEO Touts AI Supercomputers and More
There’s no denying it: Nvidia CEO Jensen Huang is serious about capitalizing on the machine learning movement. During Nvidia’s recent GPU Technology Conference (GTC), Huang touted his company’s deployment of AI technology in semiconductors, cloud services, software libraries and more.
A prominent example is Nvidia’s DGX supercomputers, which Huang called “modern AI factories.” In a blog post, Nvidia claims that “Half of all Fortune 100 companies have installed DGX AI supercomputers.”
Huang announced a new GPU known as the H100 NVL with dual-GPU NVLink. This product “features a Transformer Engine designed to process models such as the GPT model that powers” OpenAI’s ChatGPT. Huang claims that it “can reduce large language model processing costs by an order of magnitude.”
Huang also spoke about the new Nvidia DGX Cloud. This product facilitates the “end-to-end development and deployment of AI,” for practically any business. DGX Cloud, according to Huang, “offers customers the best of NVIDIA AI and the best of the world’s leading cloud service providers.”
Analysts Are Bullish on NVDA Stock
As AI becomes top-of-mind among tech aficionados and the financial community, NVDA stock has momentum that’s undeniable in 2023. Yet, some analysts strongly suggest that there’s still potentially more room to run.
Bernstein analyst Stacy Rasgon, for example, recently maintained his “outperform” rating on Nvidia. He also raised his price target on the shares from $265 to $300. Ragson asserts that Nvidia’s earnings estimates have an “upward bias” from now on. The Bernstein analyst also assures that Nvidia shares are the “best way” to play the AI theme.
Meanwhile, Piper Sandler analyst Harsh Kumar values Nvidia based on the company’s foray into the software market. Kumar believes that Nvidia “has the ability to create new and lucrative market opportunities with its software footprint which is still in its early stages of growth and adoption.” With that commentary, the Piper Sandler analyst reiterated his “overweight” rating on NVDA stock and raised his price target from $275 to $300.
What You Can Do Now
Nvidia already looks like 2023’s big winner in AI hardware. The company is also venturing ambitiously into the software market, so that’s another opportunity for Nvidia to generate strong revenue.
As the year progresses into its second quarter, Nvidia should continue to impress analysts and investors alike. Therefore, expect NVDA stock to maintain its powerful momentum and consider a share position now.
On the date of publication, Louis Navellier had a long position in NVDA. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.
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The post Nvidia Stock Is an Undeniable Momentum Pick appeared first on InvestorPlace. | NVDA |
https://finnhub.io/api/news?id=5977d464da0a8a972d5ce714d9e2427f3585eaeec10e373f7f105b588ae21262 | The Ultimate Growth Stocks to Buy With $500 Right Now | Even a relatively small investment in these growth prospects could become a sizable position in just a few years. | 2023-04-07T02:30:00 | Yahoo | The Ultimate Growth Stocks to Buy With $500 Right Now
Even a relatively small investment in these growth prospects could become a sizable position in just a few years.
Even a relatively small investment in these growth prospects could become a sizable position in just a few years.
Mark Spitznagel and Nassim Taleb have been watching for black swans for decades. "We’ve never seen anything like this level of total debt and leverage in the system," he tells Fortune. "It's an experiment."
Warren Buffett is undeniably the most famous and influential investor in modern history, based on his extraordinary performance record. Not surprisingly, the investment portfolio of Berkshire Hathaway Inc. (BRK.A), the holding company employing the Oracle of Omaha as chairman and CEO, receives wide media attention and scrutiny, even though Buffett is no longer making every investment decision. Despite his unparalleled success, Buffett's investment model has long been transparent, straightforward, and consistent.
Stocks have blown past expectations for 2023 – but some analysts are bracing for a sell-off as the market approaches record highs.
The JPMorgan Equity Premium Income ETF’s (NYSEARCA:JEPI) combination of high yield and monthly payments has quickly made it one of the market’s most popular ETFs. Investors who like JEPI’s style now have another high-yield competitor to consider — the NEOS S&P 500 High Income ETF (BATS:SPYI), which also pays on a monthly basis and yields 10.7%. Let’s take a closer look at this intriguing new option for high-yield investors. What is SPYI ETF’s Strategy? Launched in August of 2022, SPYI is still a
Just because you retire doesn't mean you have to stop working. And when work is an option rather than a requirement, it's possible to select a low-stress job that multiplies fulfillment without adding anxiety - but still provides a bit … Continue reading → The post 12 Low-Stress Jobs You Can Do in Retirement appeared first on SmartAsset Blog.
Berkshire Hathaway historically reports its quarterly financial results on weekends, and CEO Warren Buffet has a simple reason why. Berkshire (ticker: BRK.A, BRK.B) reported second-quarter earnings Saturday morning. Many other public companies, however, release their earnings results during the trading week, either before the market opens or after the closing bell.
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There are many different approaches and strategies for retirement investing that might appeal to you. But how do you tell if a certain strategy works for your situation? When evaluating different approaches, consider how each strategy is put together and … Continue reading → The post Here's How Much to Keep in Stocks, Bonds and Cash in Retirement appeared first on SmartAsset Blog.
The week ahead will feature a crucial inflation report and earnings out of Disney, UPS, and Alibaba as second quarter earnings season winds down.
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AustralianSuper, one of the world’s largest pensions, halved its Apple stock investment and sold Microsoft stock, while buying shares of Tesla and Nvidia.
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Dubbed the Oracle of Omaha, Warren Buffett is renowned for his simple and frugal lifestyle. Despite being the sixth richest person globally, with a net worth estimated at $117.9 billion, Buffett continues to live in the same modest home in Omaha that he purchased in 1958 for just $31,500. Adjusted for inflation, that amount today would be approximately $328,990.80, a mere 0.000279% of his total net worth. Buffett has consistently ranked the purchase of his home as the third-best investment he ha
As a pandemic-inspired boom ends, entrepreneurs and giant corporations alike are counting on customers to keep accumulating more stuff than they can squeeze into their homes. | NVDA |
https://finnhub.io/api/news?id=d70cfe6cd7da9513dd5f4360570c510e7a487ddd76b13a482905f52824152480 | See Which Of The Latest 13F Filers Holds NVIDIA | Looking for stock market analysis and research with proves results? Zacks.com offers in-depth financial research with over 30years of proven results. | 2023-04-07T01:19:00 | Preferred Stock Channel | This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.
Copyright 2023 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.26% per year. These returns cover a period from January 1, 1988 through July 3, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.
Visit Performance Disclosure for information about the performance numbers displayed above.
Visit www.zacksdata.com to get our data and content for your mobile app or website.
Real time prices by BATS. Delayed quotes by FIS.
NYSE and AMEX data is at least 20 minutes delayed. NASDAQ data is at least 15 minutes delayed.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. | NVDA |
https://finnhub.io/api/news?id=471c24c212d9faeff8b694c73f52f648cea901f87ada11f2845a6dd222de65ea | Intel Dividend Cut | Looking for stock market analysis and research with proves results? Zacks.com offers in-depth financial research with over 30years of proven results. | 2023-04-06T22:20:00 | TalkMarkets | This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.
Copyright 2023 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.26% per year. These returns cover a period from January 1, 1988 through July 3, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.
Visit Performance Disclosure for information about the performance numbers displayed above.
Visit www.zacksdata.com to get our data and content for your mobile app or website.
Real time prices by BATS. Delayed quotes by FIS.
NYSE and AMEX data is at least 20 minutes delayed. NASDAQ data is at least 15 minutes delayed.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. | NVDA |
https://finnhub.io/api/news?id=2adb84fd4aa81c1433dea4f01eced8dace758ee3ee58520f41062bcb74d7aec8 | 18 Stocks: Some For Dividend Growth And Some For Pure Growth | Looking for stock market analysis and research with proves results? Zacks.com offers in-depth financial research with over 30years of proven results. | 2023-04-06T20:05:00 | TalkMarkets | This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.
Copyright 2023 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.26% per year. These returns cover a period from January 1, 1988 through July 3, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.
Visit Performance Disclosure for information about the performance numbers displayed above.
Visit www.zacksdata.com to get our data and content for your mobile app or website.
Real time prices by BATS. Delayed quotes by FIS.
NYSE and AMEX data is at least 20 minutes delayed. NASDAQ data is at least 15 minutes delayed.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. | NVDA |
https://finnhub.io/api/news?id=0e3d0900ebb9bd0bc90e76b4419a161f7b836b203e8954e54a52e91828164d7a | Tech Stocks Have Been on Fire. Earnings Could Spell Trouble. | The first quarter was a profitable one for tech stocks, but now Big Tech has to report earnings—and investors might not love what they see. | 2023-04-06T20:00:00 | MarketWatch | Ah, April. The crack of the bat. The smell of fresh-cut grass. The frantic search for year-old receipts. And the sound of conference calls ringing in the air. It’s baseball season. It’s tax season. And even better, it’s first-quarter earnings season.
The first quarter of 2023 was a remarkably profitable one for tech investors, helping to turn the corner on a nightmarish 2022. Stocks that were pummeled last year have rebounded with strong gains. The seven tech companies with market values above $500 billion— Apple (ticker: AAPL), Microsoft (MSFT), Alphabet (GOOGL), Amazon.com (AMZN), Nvidia (NVDA), Tesla (TSLA), and Meta Platforms (META)—have each rallied at least 20% in 2023, outstripping a 7% gain for the S&P 500 index. Investors think the Federal Reserve is nearly finished tightening monetary policy—and they anticipate steady and then declining rates. As a result, miserable first-quarter results—and they almost certainly are going to be pretty bad—might not matter.
You could see that dynamic in the recent earnings report from memory-chip producer Micron Technology (MU). With PC and smartphone demand flagging—and many customers oversupplied with inventory—Micron’s financial results cratered. For its quarter ended March 2, Micron’s revenue plunged 53% from a year earlier. But Micron said customers are cleaning up their inventory issues and predicted that results will show sequential growth from here. By 2025, Micron said, its total addressable market would be at a record level, aided by growth in automotive and industrial applications. “It was a tough quarter, but we are seeing good, positive signs for the future,” Sumit Sadana, Micron’s chief business officer, tells me.
Read More
I suspect that’s going to be the theme running through first-quarter earnings season: Conditions aren’t great, but they should get better soon. The question is how much improvement has already been discounted in stocks—after buying the rumor, it might be time to sell the news.
Here are some key questions and themes to look for in the weeks ahead.
The New Netflix. The streaming-video service kicks off tech earnings season on April 18 with a quarter that will mark a fundamental shift in its reporting practices. Starting with the 2022 fourth quarter, Netflix (NFLX) stopped providing specific guidance on subscriber growth—although it will still report its total subscribers at the end of the quarter. That could lead to surprises around subscriber numbers and more volatility for the stock. Meanwhile, investors will be looking for signs of progress on the company’s two big initiatives—advertising and a crackdown on password sharing. Netflix has projected “modest” positive net subscriber growth in the quarter, with revenue of $8.2 billion—growing just 4%—and profits of $2.82 a share. Another change: This will be the first call without Reed Hastings, who last quarter gave up the CEO role to become executive chairman.
The Year of Efficiency, Part III. Shares of Meta Platforms have surged nearly 80% this year, thanks to CEO Mark Zuckerberg’s decision to placate investors and rein in spending. Meta, which operates Facebook, Instagram, and WhatsApp, cut 11,000 jobs shortly after a poorly received third-quarter earnings report, and recently chopped 10,000 more. On the last Meta earnings call, Zuckerberg declared 2023 to be “the year of efficiency,” talked up artificial intelligence, and largely ignored the metaverse, the initiative that he once considered so important that he changed the company’s name.
Meta investors will be looking for updates on efficiency moves—and any evidence that they will spur the company’s sagging growth. Wall Street sees a 1% year-over-year first-quarter revenue dip, reflecting a still weak advertising market. Shareholders await updates on monetizing Reels, the company’s TikTok competitor, particularly given recent pressure in Washington to ban TikTok. Zuckerberg will surely continue to talk about AI, and probably not so much about the metaverse.
Thin Cloud Cover. Amazon shares have rallied 24% this year, and Microsoft is up 20%—no thanks to their cloud businesses. Amazon Web Services and Microsoft Azure continue to dominate cloud computing, but both have suffered a multiquarter deceleration, as customers tighten budgets. This past week, research firm IDC trimmed its 2023 enterprise spending forecast for the fifth month in a row. According to FactSet, analysts see March-quarter AWS growth of 17%, down from 20% in December and 27% in September; for Azure, consensus estimates call for 28% growth, down from 31%, 35%, 40%, and 46% growth, respectively, over the four prior quarters. But as with Micron, the thinking on the Street is that things get better from here—that recession or no, the transition to cloud computing will continue. There are some near-term worries: for Microsoft, soft PC demand; for Amazon, sluggish online-shopping growth.
Cashing Out. Apple is almost certainly going to raise its dividend and expand its stock-buyback program when the company reports next month. But there are tough questions for Apple about reviving growth. Wall Street sees revenue declining 4% in the March quarter and 1% for the full year. This past week, Apple contract manufacturer Foxconn said it expected business to decline in the second quarter.
For Apple investors, the focus is on this fall’s release of the iPhone 15 and, before that, an expected launch of virtual- and mixed-reality products. The outstanding question is how Apple is planning to take advantage of AI. I’ll have to ask ChatGPT.
Write to Eric J. Savitz at [email protected] | NVDA |
https://finnhub.io/api/news?id=d538292812cbadee4f1c25e9530832e43e5d340e5e63afaf6453792ac03a2ae2 | Tech Stocks Have Turned the Corner. Why Earnings Could Still Spell Trouble. | The first quarter was a profitable one for tech stocks, but now Big Tech has to report earnings—and investors might not love what they see. | 2023-04-06T20:00:00 | MarketWatch | Ah, April. The crack of the bat. The smell of fresh-cut grass. The frantic search for year-old receipts. And the sound of conference calls ringing in the air. It’s baseball season. It’s tax season. And even better, it’s first-quarter earnings season.
The first quarter of 2023 was a remarkably profitable one for tech investors, helping to turn the corner on a nightmarish 2022. Stocks that were pummeled last year have rebounded with strong gains. The seven tech companies with market values above $500 billion— Apple (ticker: AAPL), Microsoft (MSFT), Alphabet (GOOGL), Amazon.com (AMZN), Nvidia (NVDA), Tesla (TSLA), and Meta Platforms (META)—have each rallied at least 20% in 2023, outstripping a 7% gain for the S&P 500 index. Investors think the Federal Reserve is nearly finished tightening monetary policy—and they anticipate steady and then declining rates. As a result, miserable first-quarter results—and they almost certainly are going to be pretty bad—might not matter.
You could see that dynamic in the recent earnings report from memory-chip producer Micron Technology (MU). With PC and smartphone demand flagging—and many customers oversupplied with inventory—Micron’s financial results cratered. For its quarter ended March 2, Micron’s revenue plunged 53% from a year earlier. But Micron said customers are cleaning up their inventory issues and predicted that results will show sequential growth from here. By 2025, Micron said, its total addressable market would be at a record level, aided by growth in automotive and industrial applications. “It was a tough quarter, but we are seeing good, positive signs for the future,” Sumit Sadana, Micron’s chief business officer, tells me.
Read More
I suspect that’s going to be the theme running through first-quarter earnings season: Conditions aren’t great, but they should get better soon. The question is how much improvement has already been discounted in stocks—after buying the rumor, it might be time to sell the news.
Here are some key questions and themes to look for in the weeks ahead.
The New Netflix. The streaming-video service kicks off tech earnings season on April 18 with a quarter that will mark a fundamental shift in its reporting practices. Starting with the 2022 fourth quarter, Netflix (NFLX) stopped providing specific guidance on subscriber growth—although it will still report its total subscribers at the end of the quarter. That could lead to surprises around subscriber numbers and more volatility for the stock. Meanwhile, investors will be looking for signs of progress on the company’s two big initiatives—advertising and a crackdown on password sharing. Netflix has projected “modest” positive net subscriber growth in the quarter, with revenue of $8.2 billion—growing just 4%—and profits of $2.82 a share. Another change: This will be the first call without Reed Hastings, who last quarter gave up the CEO role to become executive chairman.
The Year of Efficiency, Part III. Shares of Meta Platforms have surged nearly 80% this year, thanks to CEO Mark Zuckerberg’s decision to placate investors and rein in spending. Meta, which operates Facebook, Instagram, and WhatsApp, cut 11,000 jobs shortly after a poorly received third-quarter earnings report, and recently chopped 10,000 more. On the last Meta earnings call, Zuckerberg declared 2023 to be “the year of efficiency,” talked up artificial intelligence, and largely ignored the metaverse, the initiative that he once considered so important that he changed the company’s name.
Meta investors will be looking for updates on efficiency moves—and any evidence that they will spur the company’s sagging growth. Wall Street sees a 1% year-over-year first-quarter revenue dip, reflecting a still weak advertising market. Shareholders await updates on monetizing Reels, the company’s TikTok competitor, particularly given recent pressure in Washington to ban TikTok. Zuckerberg will surely continue to talk about AI, and probably not so much about the metaverse.
Thin Cloud Cover. Amazon shares have rallied 24% this year, and Microsoft is up 20%—no thanks to their cloud businesses. Amazon Web Services and Microsoft Azure continue to dominate cloud computing, but both have suffered a multiquarter deceleration, as customers tighten budgets. This past week, research firm IDC trimmed its 2023 enterprise spending forecast for the fifth month in a row. According to FactSet, analysts see March-quarter AWS growth of 17%, down from 20% in December and 27% in September; for Azure, consensus estimates call for 28% growth, down from 31%, 35%, 40%, and 46% growth, respectively, over the four prior quarters. But as with Micron, the thinking on the Street is that things get better from here—that recession or no, the transition to cloud computing will continue. There are some near-term worries: for Microsoft, soft PC demand; for Amazon, sluggish online-shopping growth.
Cashing Out. Apple is almost certainly going to raise its dividend and expand its stock-buyback program when the company reports next month. But there are tough questions for Apple about reviving growth. Wall Street sees revenue declining 4% in the March quarter and 1% for the full year. This past week, Apple contract manufacturer Foxconn said it expected business to decline in the second quarter.
For Apple investors, the focus is on this fall’s release of the iPhone 15 and, before that, an expected launch of virtual- and mixed-reality products. The outstanding question is how Apple is planning to take advantage of AI. I’ll have to ask ChatGPT.
Write to Eric J. Savitz at [email protected] | NVDA |
https://finnhub.io/api/news?id=5cff6fe89ee8dfd8a453d601f0a36464fc18336c8a28ec5a9265a3e6d9cd7f92 | Artificial Intelligence Offers Real Opportunities In Super Computing For Investors | The evolution of AI is a disruptive technology megatrend that will issue in the 4th Industrial Revolution by improving business efficiency and democratizing information. | 2023-04-06T19:10:29 | SeekingAlpha | Artificial Intelligence Offers Real Opportunities In Super Computing For Investors
Summary
- The evolution of AI is a disruptive technology megatrend that will issue in the 4th Industrial Revolution by improving business efficiency and democratizing information.
- Several high end supercomputing solutions are being developed by companies like Google, Nvidia, AMD, and Super Micro, ushering in the new world of AI adoption.
- In this review I evaluate and suggest opportunities for investors with a long-term horizon to benefit from this "iPhone moment" for AI.
Unless you have been living under a rock for the past few months, you may have heard about the hype surrounding Artificial Intelligence, especially with the recent introduction of ChatGPT. The generative AI application was developed by OpenAI, a private company backed by Microsoft (MSFT). In fact, in January Microsoft announced a multi-billion dollar investment in ChatGPT. The product was introduced as a free application for people to “try out” as part of a research phase for the company to obtain user feedback.
“We formed our partnership with OpenAI around a shared ambition to responsibly advance cutting-edge AI research and democratize AI as a new technology platform,” said Microsoft Chairman and CEO Satya Nadella in a statement.
One result of the experiment that has been observed since the introduction of the app in November 2022 was the sudden and explosive reaction to widespread use of this new AI tool by everyday folks. Until recently, many of the applications of AI have been hidden behind closed doors in secret laboratories doing research for the government or private industry and on university campuses with doctoral students working on tools and programs to make software “smarter”.
Some of the earliest work in AI began back in the 1950s with work by mathematicians including my late grandfather, Merrill Flood, PhD, whom you can read about in my biography that I published last year. He collaborated with the likes of Claude Shannon (founder of Information Theory), Johnny Von Neumann, Norbert Weiner (the father of Cybernetics), Alan Turing, and others while at Rand Corp and during his research years with MIT and the University of Michigan. Much of the early work was around “machine learning” and robotics, and the interplay between human beings and machines. In an article on Slate, the author wonders what Wiener might think about the current state of AI:
Like Alan Turing, whose Turing test suggested that computing machines could give responses to questions that were indistinguishable from human responses, Wiener was fascinated by the notion of capturing human behavior by mathematical description.
A new Dawn for Artificial Intelligence
Fast forward to the 21st century and the evolution of AI has become an integral part of the 4th Industrial Revolution which I recently wrote about. It has now become clear that the business case for AI has arrived. In this article from UBS, the importance of AI as a unique set of tools that will move businesses forward into the future are clearly elucidated. Some of the advantages are summarized in this paragraph:
The main business advantages of AI over human intelligence are its high scalability, resulting in significant cost savings. Other benefits include AI's consistency and rule-based programs, which eventually reduce errors (both omission and commission), AI's longevity coupled with continuous improvements and its ability to document processes - some of the few reasons why AI is drawing wide interest.
The generative AI applications like ChatGPT and DALL-E-2 are interesting and have brought widespread attention to the improvements that have occurred in AI; however, those are not the only types of AI applications that will be needed to create the business advantages that UBS is suggesting. Self-learning systems that integrate data mining, pattern recognition, natural language processing, and predictive analytics are examples of the types of applications that will likely be beneficial to businesses and are still in early stages of development.
Google AI
Another experiment in bringing AI to the masses is Bard from Google (GOOG). Google has more aspirational goals for Bard that are similar to what ChatGPT offers. That is, more of a tool for widespread use by ordinary folks rather than business tools to help streamline and automate business processes. This is what Google says about Bard:
We have long seen the potential of AI to make information and computing more accessible and useful to people. As part of this journey, we have made pioneering advancements on large language models (LLMs) and have seen great progress across Google and in this field more broadly. For several years, we have applied LLMs in the background to improve many of our products, such as autocompleting sentences and helping us in Google Search. Now, we are using LLMs to power Bard, an experiment that allows people to collaborate directly with generative AI.
Supercomputing and AI
The forays into AI by Google do not stop with Bard though. In fact, Google recently announced the development of a new supercomputer that competes with Nvidia (NVDA) for AI applications, which currently dominates the AI supercomputing market. According to this news story about the new supercomputer offering, Google has been tinkering with Tensor Processing Units or TPUs for AI since 2016. The new Google supercomputer is based on TPU v4, an optically reconfigurable supercomputer for machine learning with hardware support for embeddings.
In response to innovations in machine learning [ML] models, production workloads changed radically and rapidly. TPU v4 is the fifth Google domain specific architecture (DSA) and its third supercomputer for such ML models. Optical circuit switches (OCSes) dynamically reconfigure its interconnect topology to improve scale, availability, utilization, modularity, deployment, security, power, and performance.
Nvidia – AI Chip Market Leader
Nvidia is the dominant force in AI supercomputing with its workhorse A100 chip. The A100 chip is a GPU (graphics processing unit) that was initially developed for 3D rendering for gaming applications but can be configured to run inside data centers to support the massive computations required for machine learning. The newest H100 chip built on the Hopper architecture offers 30x the performance of the A100 for AI and HPC (high performance computing) applications.
At their recent GTC 2023 Developer conference, Nvidia CEO Jensen Huang remarked that this is the “iPhone moment for AI” as the company unveiled several new partnerships and products including a Quantum computing platform for AI. They also disclosed new partnerships with Medtronic and AT&T, as well as new agreements with Microsoft and Oracle related to data center acceleration.
Morgan Stanley recently upgraded NVDA to Overweight based on the AI megatrend.
The rise of AI applications and the hype surrounding it has been good for NVDA. By some estimates, NVDA has captured 90% or more of the AI supercomputing market. On the Q422 earnings call, CFO Colette Kress remarked that,
“Generative large language models with over 100 billion parameters are the most advanced neural networks in today's world. NVIDIA's expertise spans across the AI supercomputers, algorithms, data processing and training methods that can bring these capabilities to enterprise. We look forward to helping customers with generative AI opportunities.”
NVDA stock has surged over 80% in the first quarter of this year, so the stock may not be a good buy at the current price but it is clearly benefitting from the AI revolution that is occurring.
AMD – Chasing the AI Trend
Another horse in the AI race for supercomputing hardware is Advanced Micro Devices (AMD). While AMD has been making advances in data centers and HPC applications including AI, they have a bit of catching up to do relative to NVDA. I wrote about the new MI300 chip from AMD when I last covered them in January. With the acquisitions of Xilinx and Pensando, AMD has been able to make advances in high end data center and HPC applications by merging CPU, GPU, and FPGA with 3D stacking technologies, resulting in energy efficient, high-performance chipsets like the MI300. According to a review from Tom’s hardware, the MI300 is a monster device:
Make no mistake, the Instinct MI300 is a game-changing design - the data center APU blends a total of 13 chiplets, many of them 3D-stacked, to create a chip with twenty-four Zen 4 CPU cores fused with a CDNA 3 graphics engine and 8 stacks of HBM3. Overall the chip weighs in with 146 billion transistors, making it the largest chip AMD has pressed into production.
That chip is expected to be available in mid-2023 so it remains to be seen how much market share that AMD will be able to capture once it hits the market. The outlook for growth in data center and embedded systems are the primary focus for AMD going forward and will likely result in continued market share improvement, based on comments made by CEO Lisa Su during a discussion on Q422 earnings when she stated that AMD is "in a good position to gain share" in the embedded data center market, even with what she said were expected to be "elevated levels of inventory" in the first half of the year that should improve after summer and toward the end of 2023.
AMD has also seen its share price rise over 40% since the start of 2023, yet still represents a better long-term value in my opinion than NVDA with a forward P/E of 30 versus NVDA FWD P/E of about 60.
Super Micro Computer – Putting the AI Hardware Together
Perhaps the best value and possibly one of the biggest longshots in the horse race for supercomputing market share is Super Micro Computer (SMCI). With nearly 60% YOY revenue growth, SMCI is an industry leader in integrated systems that rely on chipsets from AMD, NVDA, and other vendors to assemble fully integrated systems for HPC, AI, ML, and data center applications. Recognizing the evolving trend and building upon the recent AI hype, SMCI recently announced a whole new AI platform built on the NVDA AI Enterprise solution.
"This exciting new GPU system will also have a completely built-in liquid cooling system, allowing leading-edge CPUs and GPUs to run at maximum performance without additional infrastructure costs," the company said.
In January, SMCI was rated the #1 stock pick for 2023 by Steven Cress of SA Quant fame. Shortly after that, the company was the target of a short report that clobbered the share price. On January 10, SA analyst Jeremy Blum wrote a rebuttal to the Spruce Point capital short report that outlined the reasons why SMCI was still a screaming buy at a price below $80 and the stock has risen by more than 25% since then.
As I am writing this article on April 6, 2023, the share price of SMCI dropped by nearly 10% today at market open to below $100, offering savvy investors another opportunity to get in while the price is still reasonable. Not everyone agrees that SMCI is a strong buy with one Wall Street analyst from Wedbush downgrading the stock to Neutral. At the current share price, SMCI trades at a low FWD P/E of about 10, with strong revenue growth and excellent Quant factor grades across the board.
Summary and Conclusion
In this article, I focused on the hardware side of supercomputing applications for AI versus the software side. There are also many companies focused more on software applications that employ AI to help businesses to compete at the enterprise level and in a future article I intend to highlight some of those companies.
As the UBS article from 2016 predicted, AI is “coming of age” now in the 2020s. Back then the expectation was for about 20% CAGR in revenues for the AI industry from 2016 to 2020.
The rise of AI software applications will rapidly advance with new and innovative solutions in multiple industries as computing power gets stronger, faster, cheaper, and more integrated. We are already seeing this in 2023 and the growth in AI applications is just beginning to unfold.
Software companies will take up the mantle and charge ahead, pushing the boundaries of automation, search and social media. Dubbed a machine's brain, AI will likely power automation in sectors like autonomous vehicles and unmanned drones. And AI software will create significant business opportunities and societal value.
For example, virtual assistants or chatbots will offer expert assistance; smart robots or robot advisors in the fields on finance, insurance, legal, media and journalism will provide instantaneous research or findings; and within the healthcare field, AI software will assist with medical diagnosis and assistance. Other benefits include significantly improving efficiencies in R&D projects by reducing time to market, optimizing transport and supply chain networks, and improving governance by better decision-making processes.
The growing field of AI for enterprise business applications is still young and evolving and is not just some passing fad that will go away after the luster wears off. As more businesses recognize the inherent value that AI applications can offer, the growth will continue and mature leading to significant long-term opportunities for investors who can identify the leaders in this emerging industry.
This article was written by
Analyst’s Disclosure: I/we have a beneficial long position in the shares of SMCI, AMD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Comments (10) | NVDA |
https://finnhub.io/api/news?id=f7a32d77cb5cc1c13317625f22ff6e5fd2537057fc24a84674844cc9061afe6e | Nicholas Ward's Dividend Growth Portfolio: Special Fixed Income Edition | My passive income stream grew by 22.63% in February and by 46.87% in March. Read more as I review my February and March results in this piece. | 2023-04-06T17:56:14 | SeekingAlpha | Nicholas Ward's Dividend Growth Portfolio: Special Fixed Income Edition
Summary
- I'm reviewing my February and March results in this piece.
- My passive income stream grew by 22.63% in February and by 46.87% in March.
- Due to rising rates, during 2023 I've added exposure to fixed income in my portfolio for the first time.
- Looking for a portfolio of ideas like this one? Members of The Dividend Kings get exclusive access to our subscriber-only portfolios. Learn More »
Hello everyone… we’ll start this special edition portfolio review off with the normal introduction:
Another [two] month[s] another step[s] towards financial freedom.
Why was the February recap skipped, you may be wondering?
Primarily because I was on vacation last month and that cut into my time to work on Seeking Alpha articles.
My family had a wonderful vacation in Florida. My wife and I took the kids to Disney World for the week, spent the weekend at Grandma’s in Tampa, and then I had business meetings down in the Delray/West Palm areas for a few days.
All in all, it was a wonderful time. It was nice to have a short break from work. Despite all of the clamoring about the “magic being lost” from Disney, the entire family still loved it. Being in the “Disney bubble” really allows you to forget about the troubles of the outside world and focus on silly things like which princesses you’re going to meet with your toddler. There were a few days where I didn’t even check up on my watch lists. It was all very refreshing.
And with regard to south Florida, all I have to say is this: I’m jealous of the people who live here. I am grateful that hurricanes aren’t a threat where I live, but it was beautiful and 30 degrees warmer than Virginia, which was a nice change of pace. And I guess I’m always going to be a sucker for the silhouette of palm trees in front of a setting sun.
But, the delay wasn’t just about vacation. I could have crammed it in sometime last month, but I was also happy to wait on the portfolio updates because I made significant changes to my asset allocation during February and March and I wanted to allocate the proper time/energy to discussing them.
For the first time ever in my portfolio management career, I invested into fixed income assets.
The rapidly rising rates finally pushed the risk/reward into my favor and now that it's possible to generate 4%+ using relatively risk-free assets, I transitioned the vast majority of my cash savings into those income generating vehicles.
With that in mind, you’ll see a very significant bump to my passive income during the past two months and moving forward, I expect these decisions to result in 2023 being one of, if not my very best year ever, in terms of year-over-year passive income growth.
I couldn’t be happier to use these fixed income/money market funds as an accelerant to the compounding process that serves as the bedrock of my investment strategy.
I don’t know how long rates are going to stay high. But, in the meantime, I’m pleased to take advantage of the opportunities that the hawkish Fed is presenting.
As I’ve said many times before, my success in the markets revolves around my ability to be fearful when others are greedy, to be thankful for opportunities, and to take what the market gives me.
This is what I’ve done throughout 2023 thus far and I couldn’t be happier with the results.
February/March Passive Income
After a relatively tepid y/y dividend growth in January of 9.56% (9.5% isn’t terrible, but I’d much rather see dividend compound at a double digit clip), my February and March results were much stronger.
In February my y/y dividend growth rate was 22.63%. This pushed my year-to-date growth rate up to 16.34% on a y/y basis.
In March my dividend growth rate accelerated to 46.87%, which is the best results in years (narrowly beating out my December 2022 result of 46.50%).
After March’s big gains my year-to-date y/y growth rate grew to 28.55%.
And, like I said in the introduction, due to the additions of several fixed income/money market funds which are likely to carry significant weightings in my portfolio for the foreseeable future, I think 2023’s year end dividend growth results could end up being in the 25-30% range.
With regard to the compounding process, I had fun over the weekend comparing my Q1 2023 dividend results to years in the past.
During the first three months of 2023 my portfolio generated more passive income than I did in the entire year of 2016.
March of 2023 was my biggest month ever in terms of passive income. I began tracking my dividend growth results closely in 2014. March of 2023’s total was 72% of my entire 2014 dividend haul. At my expected rate of compounding, it’s possible that one of my biggest months next year (likely my December haul) will be larger than the dividends that I generated during my first year as a DGI investor.
I understand that these statistics are all meaningless to you, the reader, but the point is this: compounding works. It snowballs over time. And, anyone who is diligent about living below their means, regularly allocating savings towards the market, selecting blue chip dividend growth stocks, and consistently re-investing their dividends can create a situation where their passive income stream evolves from a trickle to a roaring river as well.
Generating Higher Yields on my Cash Position
As regular readers know, I tend to maintain a cash position in the 5-7% range. I want to know that I can take advantage of irrational weakness in the market if it occurs and even though inflation is eating away at those funds, that’s a level that allows me to sleep well at night.
On top of that cash, I have my bear market buckets as well.
Throughout the sell-off that we’ve seen over the last 18 months or so, I used my -10%, -15%, -20%, and -25% buckets (when the S&P 500 hit those levels from its all-time intraday high).
That means that I still have my -30%, -35%, -40%, and -45% buckets ready to go.
Once again, I understand that there is an opportunity cost of holding that cash; however, during past sell-offs I’ve noticed that far too many investors blow through all of their dry powder in the early days of sell-offs and therefore, I put that plan in place to ensure that I would have the capability to capitalize on deep market sell-offs (because I know that crashes like that are when investors can make moves that truly change the long-term trajectory of their financial journeys).
Finally, on top of those cash positions I have my family emergency funds.
Depending on what financial experts you listen to, it’s deemed prudent to maintain 3-6 months of living expenses in cash as an emergency savings fund to help to weather an unpredictable financial storm (being laid off, an unexpected medical emergency, a leaky roof that has to be fixed, what have you) and due to my relatively conservative mindset, I’ve maintained a 6 month cushion for years.
That’s been a pretty significant pile of cash sitting on the sidelines in a relatively unproductive manner for a while now.
I’ve banked with Bank of America since college and in general, I’ve been happy with their services.
However, even with their reward programs and incentives, I was only generating 0.04% APY on my cash in their savings accounts.
For the longest time we were living in a zero interest rate policy (ZIRP) environment and therefore, that measly yield didn’t bother me.
The unproductive cash was just a cost of doing business when it came to the conservative management of my household’s balance sheet.
At the end of the day, sleeping well at night with my finances was worth it…even if savers were being hosed.
Thankfully all that has changed in recent months.
We’ve seen rates on short-term treasury notes rise at an unprecedented pace and this has created opportunities for savers.
So, a couple of months ago I decided to begin transitioning the vast majority of my cash holdings into higher yielding investment vehicles which, in my opinion, could be deemed “cash equivalents” due to their relatively low risks.
On February 21, 2023 I initiated stakes in the WisdomTree Floating Rate Treasury Fund ETF (USFR) at $50.40.
USFR currently sports a SEC 30-day yield of 4.78%. The fund’s expense ratio is just 0.15%. So to me, going with a short-term treasury ETF like this was a lot easier than building bond ladders myself and as always, it’s nice to have the liquidity of a low cost ETF in place.
Also on 2/21/2023 I initiated a stake in the SPDR Bloomberg 1-3 Months T-Bill ETF (BIL) at $91.63.
BIL currently offers a SEC 30-day yield of 4.50% and a gross expense ratio of just 0.1354%.
Once again, I was pleased to go the ETF route here instead of buying short-term bonds directly from the government or my brokerage.
These expense ratios are more than a fair price to pay for the ease of exposure to short-term treasuries, in my opinion.
These two purchases replaced my bear market cash buckets; now, in the event of a market sell-off which triggers through -30%, -35%, -40%, or -45% purchases, I will liquidate these funds to raise cash to make them.
I think the risk of capital losses here is minimal and in the meantime, I’m generating 4.5%+ yields on cash that was previously generating 0.04%.
More recently, on 3/9/2023, I transitioned my emergency cash holdings from my savings account into a Fidelity account with a “core holding” of FZFXX, which is the Fidelity Treasury Money Market Fund.
As of 3/31/2023, FZFXX had a 7-day yield of 4.46%.
I feel comfortable using this fund as a cash equivalent and once again, I’m extremely happy to be generating nearly 4.5% on cash that was previously yielding nearly 0.04%.
As you’ll see in a moment, these are now relatively significant positions within my portfolio; especially FZFXX, which is now my second largest holding.
In short, I turned roughly 7% of my portfolio from an essentially zero-yielding asset into various high yielding assets while taking on minimal risk.
This is the benefit of rising rates and moving forward, these moves are going to result in significant y/y dividend growth figures over the next year or so.
February/March Stock Purchases
Since I just spilled so much ink discussing my fixed income/money market moves, rather than highlighting my prior trade reports for each equity trade that I made during the last couple of months, I’m going to quickly list them.
Please don’t hesitate to ask about any specific trades that you see in the comment section below; I’m happy to discuss them and/or copy & paste my original trade reports that Dividend Kings subscribers received in real-time when I made these moves. I just didn’t want to copy/paste all of those words here because it would have turned this article into a novella of sorts.
So, with that being said, here’s the list in chronological order…
February:
2/01/2023: bought Broadridge Financial Solutions (BR) at $151.04
2/01/2023: bought Essex Property Trust (ESS) at $226.23
2/01/2023: bought Diageo (DEO) at $177.96
2/01/2023: bought Palantir (PLTR) at $7.96
2/01/2023: bought Republic Services (RSG) at $123.29
2/01/2023: bought EcoLab (ECL) at $153.93
2/06/2023: sold Scotts Miracle-Gro (SMG) at $81.40
2/13/2023: bought UnitedHealth Group (UNH) at $492.74
2/14/2023: sold Roper (ROP) at $431.89
2/14/2023: bought Brookfield Infrastructure Corp. (BIPC) at $43.41
2/16/2023: trimmed Cisco (CSCO) at $51.18
2/16/2023: bought Toronto-Dominion Bank (TD) at $68.99
2/16/2023: bought Royal Bank of Canada (RY) at $103.27
2/23/2023: trimmed British American Tobacco (BTI) at 38.27
2/23/2023: bought Owl Rock Capital Corp. (ORCC) at $13.72
2/23/2023: bought Linde (LIN) at $331.09
2/23/2023: bought CME Group (CME) at $187.37
2/28/2023: trimmed Altria (MO) at $46.60
2/28/2023: bought Owl Rock Capital Corp. at $13.72
2/28/2023: bought Broadridge Financial Solutions at $141.03
March:
3/01/2023: bought Broadridge Financial Solutions at $140.57
3/01/2023: bought Republic Services at $128.43
3/01/2023: bought UnitedHealth Group at $477.27
3/01/2023: bought CME Group at $184.84
3/01/2023: bought S&P Global (SPGI) at $341.92
3/01/2023: bought Palantir at $7.85
3/02/2023: trimmed Salesforce (CRM) at $189.05
3/02/2023: bought Danaher (DHR) at $244.71
3/07/2023: trimmed Meta Platforms (META) at $186.44
3/07/2023: sold Meta Platforms at $186.61
3/08/2023: bought UnitedHealth Group at $469.86
3/10/2023: bought CME Group at $174.85
3/10/2023: bought Broadridge Financial Solutions at $136.88
3/13/2023: bought Toronto-Dominion Bank at $59.32
3/13/2023: bought Royal Bank of Canada at $95.08
3/27/2023: bought Toronto -Dominion Bank at $57.81
3/27/2023: bought Royal Bank of Canada at $93.55
3/31/2023: bought Thermo Fisher (TMO) at $569.17
3/31/2023: bought UnitedHealth Group at $472.32
3/31/2023: bought Camden Property Trust (CPT) at $103.88
Nicholas Ward’s Dividend Growth Portfolio
| |
Core Dividend Growth
|56.55%|
|Company name||Ticker||Cost basis||Portfolio Weighting|
|Apple||AAPL||$24.26||13.07%|
|Microsoft||MSFT||$72.84||4.06%|
|Broadcom||AVGO||$234.30||3.11%|
|Starbucks||SBUX||$48.10||1.92%|
|Qualcomm||QCOM||$76.44||1.91%|
|BlackRock||BLK||$413.84||1.73%|
|Johnson and Johnson||JNJ||$114.02||1.59%|
|Comcast||CMCSA||$38.54||1.43%|
|Cummins||CMI||$217.77||1.38%|
|Merck||MRK||$73.71||1.37%|
|Lockheed Martin||LMT||$354.14||1.37%|
|Raytheon Technologies||RTX||$80.22||1.36%|
|PepsiCo||PEP||$97.58||1.27%|
|Bristol Myers Squibb||BMY||$49.47||1.17%|
|Brookfield Infrastructure||BIPC||$31.06||1.06%|
|Deere & Co.||DE||$347.85||1.04%|
|Texas Instruments||TXN||$106.72||1.03%|
|Cisco||CSCO||$23.80||0.99%|
|Coca-Cola||KO||$40.25||0.94%|
|Honeywell||HON||$126.18||0.91%|
|Brookfield Renewables||BEPC||$33.49||0.91%|
|Parker-Hannifin||PH||$255.96||0.88%|
|Amgen||AMGN||$136.07||0.88%|
|Essex Property Trust||ESS||$223.54||0.76%|
|Illinois Tool Works||ITW||$130.90||0.78%|
|L3Harris Technologies||LHX||$192.50||0.75%|
|Ecolab Inc.||ECL||$143.58||0.66%|
|Brookfield Corporation||BN||$29.89||0.64%|
|Diageo||DEO||$130.66||0.61%|
|AvalonBay Communities||AVB||$163.23||0.57%|
|Medtronic||MDT||$74.84||0.54%|
|Broadridge Financial Services||BR||$145.57||0.52%|
|Air Products and Chemicals||APD||$234.91||0.52%|
|Camden Property Trust||CPT||$114.59||0.48%|
|Northrop Grumman||NOC||$376.97||0.48%|
|Prologis||PLD||$118.30||0.45%|
|Hershey||HSY||$213.40||0.41%|
|Sherwin Williams||SHW||$219.30||0.36%|
|Rexford Industrial Realty||REXR||$51.90||0.35%|
|Stanley Black & Decker||SWK||$139.75||0.35%|
|Alexandria Real Estate||ARE||$130.96||0.33%|
|Republic Services||RSG||$123.71||0.30%|
|Hormel||HRL||$42.99||0.29%|
|Digital Realty||DLR||$49.87||0.26%|
|Linde||LIN||$331.10||0.24%|
|McCormick||MKC||$35.71||0.23%|
|Mid-America Apartments||MAA||$163.02||0.17%|
|Carlisle Companies||CSL||$237.18||0.12%|
|Automatic Data Processing||ADP||$227.52||<0.10%|
|McDonalds||MCD||$232.10||<0.10%|
|Waste Management||WM||$161.37||<0.10%|
|High Yield||11.40%|
|Realty Income||O||$62.34||2.05%|
|British American Tobacco||BTI||$37.50||1.24%|
|W. P. Carey||WPC||$65.23||1.24%|
|AbbVie||ABBV||$79.08||1.22%|
|Agree Realty||ADC||$65.85||1.09%|
|Enbridge||ENB||$39.33||1.07%|
|Toronto Dominion Bank||TD||$65.06||0.64%|
|Crown Castle||CCI||$140.53||0.63%|
|Altria||MO||$44.30||0.62%|
|Federal Realty Investment Trust||FRT||$114.86||0.54%|
|National Retail Properties||NNN||$36.57||0.50%|
|Royal Bank of Canada||RY||$100.18||0.32%|
|Verizon||VZ||$45.20||0.24%|
| |
High Dividend Growth
|10.71%|
|Visa||V||$86.42||2.34%|
|Nike||NKE||$62.68||1.52%|
|Lowe's||LOW||$148.99||1.48%|
|MasterCard||MA||$90.44||0.95%|
|Home Depot||HD||$250.58||0.87%|
|Intercontinental Exchange||ICE||$97.23||0.60%|
|S&P 500 Global||SPGI||$334.29||0.47%|
|UnitedHealth Group||UNH||$481.67||0.45%|
|Domino's Pizza||DPZ||$355.20||0.41%|
|Booz Allen Hamilton||BAH||$75.49||0.36%|
|Accenture||ACN||$271.18||0.36%|
|ASML Holding||ASML||$643.47||0.25%|
|Danaher||DHR||$245.62||0.23%|
|Carrier||CARR||$32.67||0.22%|
|Thermo Fisher||TMO||$568.76||0.20%|
|Non-Dividend||6.82%|
|Alphabet||GOOGL||$44.34||3.95%|
|Amazon||AMZN||$88.17||1.68%|
|Adobe||ADBE||$439.36||0.66%|
|Chipotle||CMG||$1,298.41||0.20%|
|Salesforce||CRM||$233.58||0.18%|
|PayPal||PYPL||$201.72||0.15%|
|Palantir||PLTR||$11.90||<0.10%|
| |
Special Circumstance
|6.89%|
|NVIDIA||NVDA||$37.19||2.00%|
|Walt Disney||DIS||$91.92||1.59%|
|Blackstone||BX||$95.86||0.93%|
|Owl Rock Capital||ORCC||$13.64||0.82%|
|Main Street Capital||MAIN||$39.25||0.41%|
|CME Group||CME||$183.92||0.35%|
|Constellation Brands||STZ||$172.19||0.27%|
|Ares Capital Corp.||ARCC||$17.04||0.26%|
|Brookfield Asset Management||BAM||$23.67||0.15%|
|Otis||OTIS||$58.65||0.11%|
| |
Cash Equivalents
|7.06%|
|Fidelity Treasury Money Market Fund||FZFXX||$1.00||4.68%|
|WisdomTree Floating Rate Treasury Fund ETF||USFR||$50.40||1.59%|
|SPDR Bloomberg 1-3 Months T-Bill ETF||BIL||$91.63||0.79%|
|Crypto||Diversified Basket||n/a||0.40%|
|Cash||0.02%|
|Most||Recent||Update:||4/5|
Conclusion
Despite recent negative volatility, I continue to look forward to what 2023 has in store. Due to my long-term time horizon I am always happy when I see blue chip dividend growth stocks go on sale because buying low accelerates the compounding process. In recent days there has been major weakness in the Industrials sector, in general, and there are many companies in that area of the market that I’d love to accumulate. There’s always a bargain to be found somewhere… and now that interest rates are so high, even if my stock watch list runs dry I can happily park cash in short-term bonds or money market funds and generate 4-5% while I wait for wonderful opportunities to arise. That’s a win-win for an income oriented investor like me.
Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.
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This article was written by
University of Virginia, class of 2011 B.A English
Senior Investment Analyst at Wide Moat Research.
Contributor for Safe High Yield, The Dividend Kings, iREIT, and The Forbes Real Estate Investor.
I am also the former editor-in-chief and portfolio manager at The Intelligent Dividend Investor.
Check out my youtube channel for other investing ideas: https://www.youtube.com/channel/UCP7AhF_TqJSE7fN7CFwxKlg?view_as=subscriber
Ranked #18 overall blogger by TipRanks for 2014.
Former contributor at TheStreet.com (where I cover stocks held in Jim Cramer's Action Alert PLUS Charitable Trust Portfolio), Investing Daily, and Sure Dividend.
Former Editor-in-Chief of The Dividend Growth Club and The Income Minded Millennial.
I am a young investor focused primarily on dividend growth stocks. Seeking Alpha, and more specifically, the dividend and income community that exists here, has played a significant role in my development as a portfolio manager. I am not a professional, though I do manage my family's finances. I enjoy the process; the research, the decision making, the strategic planning...and not paying a financial adviser to do the work for me.
I've built what I believe to be a conservative, diverse, and balanced dividend growth portfolio currently consisting of ~60 positions. At the end of every month I break down the portfolio in my Nicholas Ward's Dividend Growth Portfolio Updates.
Thus far, I've been able to meet by goals from income, income growth, and capital appreciation standpoints. I use a wide variety of metrics, both fundamental and technical, when establishing fair value when doing my due diligence on an individual company. All of my methods are discussed in my work here.
I hope this work inspires debate, conversation, and education - this is why I write for Seeking Alpha, to give back to the community that has helped me so much and to hopefully contribute, in some way...even if its by posing a question, to the growth of others.
*I should note that all articles that I write here are done so for my personal informational/educational purposes only. Any purchases that I make or opinions that I express are not meant as recommendations for anyone else. Please perform your own due diligence before following my lead into or out of a position. I am not a professional. I am not a financial adviser of any sort. I enjoy investing and the open discussion that articles on this site inspire - this is why I write, not to influence anyone else's decisions, but to enhance my own ability to make sound financial choices. That being said, I wish the best of luck to everyone. May we all meet our own financial goals.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of AAPL, ABBV, ACN, ADBE,ADC, ADP, AMGN, AMZN, APD, ARCC, ARE, ASML, AVB, AVGO, BAH, BAM, BEPC, BIPC, BIL, BLK, BMY, BN, BR, BTI, BX, CARR, CCI, CMCSA, CME, CMG, CMI, CPT, CRM, CSCO, CSL, DE, DEO, DHR, DIS, DLR, DPZ, ECL, ENB, ESS, FB, FRT, FZFXX, GOOGL, HD, HON, HRL, HSY, ICE, ITW, JNJ, KO, LHX, LMT, LOW, MA, MAA, MCD, MDT, MKC, MO, MRK, MSFT, NKE, NNN, NOC, NVDA, O, ORCC, OTIS, PEP, PH, PLD, PLTR, PYPL, QCOM, REXR, RSG, RTX, RY, SBUX, SHW, SPGI, STZ, SWK, TMO, TD, TXN, USFR, UNH, V, VZ, WM, WPC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Comments (123)
Wishing successful investing to all.
It’s nice yield will not last forever, when the rates stabilize I’ll turn to lock in some CD rates.When you wrote “I just didn’t want to copy/paste all of those words here because it would have turned this article into a novella of sorts.” It reminded me of what a professor told me many years ago about an essay I wrote.
He told me. “ an essay should be like a woman’s skirt, short enough to be interesting, but long enough to cover the subject “Take care.
BR - anything special about it? I've never heard about it. Trimmed Salesforce (CRM) - for a loss? reason? | NVDA |
https://finnhub.io/api/news?id=06785f9a7695f437c1964a55da10c2f8b316aa0e7e1c5e81b258303cf5ce9c46 | AMD Stock Presents a Buy-the-Dip Opportunity for the Bulls | Advanced Micro Devices has had investors' attention this year, as AMD stock has roared higher by more than 40% so far in 2023. | 2023-04-06T10:51:00 | Yahoo | AMD Stock Presents a Buy-the-Dip Opportunity for the Bulls
Advanced Micro Devices has had investors' attention this year, as AMD stock has roared higher by more than 40% so far in 2023.
Advanced Micro Devices has had investors' attention this year, as AMD stock has roared higher by more than 40% so far in 2023.
Mark Spitznagel and Nassim Taleb have been watching for black swans for decades. "We’ve never seen anything like this level of total debt and leverage in the system," he tells Fortune. "It's an experiment."
Warren Buffett is undeniably the most famous and influential investor in modern history, based on his extraordinary performance record. Not surprisingly, the investment portfolio of Berkshire Hathaway Inc. (BRK.A), the holding company employing the Oracle of Omaha as chairman and CEO, receives wide media attention and scrutiny, even though Buffett is no longer making every investment decision. Despite his unparalleled success, Buffett's investment model has long been transparent, straightforward, and consistent.
Stocks have blown past expectations for 2023 – but some analysts are bracing for a sell-off as the market approaches record highs.
The JPMorgan Equity Premium Income ETF’s (NYSEARCA:JEPI) combination of high yield and monthly payments has quickly made it one of the market’s most popular ETFs. Investors who like JEPI’s style now have another high-yield competitor to consider — the NEOS S&P 500 High Income ETF (BATS:SPYI), which also pays on a monthly basis and yields 10.7%. Let’s take a closer look at this intriguing new option for high-yield investors. What is SPYI ETF’s Strategy? Launched in August of 2022, SPYI is still a
Just because you retire doesn't mean you have to stop working. And when work is an option rather than a requirement, it's possible to select a low-stress job that multiplies fulfillment without adding anxiety - but still provides a bit … Continue reading → The post 12 Low-Stress Jobs You Can Do in Retirement appeared first on SmartAsset Blog.
Berkshire Hathaway historically reports its quarterly financial results on weekends, and CEO Warren Buffet has a simple reason why. Berkshire (ticker: BRK.A, BRK.B) reported second-quarter earnings Saturday morning. Many other public companies, however, release their earnings results during the trading week, either before the market opens or after the closing bell.
The market rally is at an infection point after notable losses. Here's what to do. Warren Buffett's Berkshire earnings rose.
Is there a point at which I should stop reinvesting stock dividends and invest the money or save the cash? -Anonymous Many financial experts recommend that you reinvest dividends most of the time – and I'm inclined to agree. The … Continue reading → The post Ask an Advisor: Should I Stop Reinvesting Dividends? appeared first on SmartAsset Blog.
There are many different approaches and strategies for retirement investing that might appeal to you. But how do you tell if a certain strategy works for your situation? When evaluating different approaches, consider how each strategy is put together and … Continue reading → The post Here's How Much to Keep in Stocks, Bonds and Cash in Retirement appeared first on SmartAsset Blog.
The week ahead will feature a crucial inflation report and earnings out of Disney, UPS, and Alibaba as second quarter earnings season winds down.
(Bloomberg) -- Dan Loeb is hardly the first Wall Street titan to lament how meme stock traders have made short selling a perilous endeavor. But that Loeb, who runs the hedge fund Third Point LLC, did so now is what’s interesting.Most Read from BloombergTexas Power Prices to Surge 800% on Sunday Amid Searing HeatNetanyahu Seeks to Change How Judges Are Named, Then Stop RevampChina Embassy Rips ‘Brutal’ Russia Border Incident in Rare MoveThe Most Dangerous Job for Lawyers Is Being on Trump’s Legal
AustralianSuper, one of the world’s largest pensions, halved its Apple stock investment and sold Microsoft stock, while buying shares of Tesla and Nvidia.
One in 6 asset and wealth management companies will be bought or shut down in the next five years, according to a PwC survey of asset managers and institutional investors.
Travel scams are on the rise. Don't be a victim.
Warren Buffett's Berkshire Hathaway operating profit rose by 10%. BRKB stock is just out of buy range.
VZ stock provides a dividend but a buyback has been shelved amid 5G wireless investments. When will revenue growth reaccelerate?
Will generative artificial intelligence boost Palantir stock in the commercial market amid slowing revenue growth for the company?
Retirement account withdrawals not only help you cover basic living expenses, but they also can fund the lifestyle you've always envisioned in your golden years. That money, however, can have unintended tax consequences. Required minimum distributions (RMDs) and other withdrawals … Continue reading → The post Social Security Taxes Can Hit You Hard in Retirement. Here's How to Lower Them appeared first on SmartAsset Blog.
Dubbed the Oracle of Omaha, Warren Buffett is renowned for his simple and frugal lifestyle. Despite being the sixth richest person globally, with a net worth estimated at $117.9 billion, Buffett continues to live in the same modest home in Omaha that he purchased in 1958 for just $31,500. Adjusted for inflation, that amount today would be approximately $328,990.80, a mere 0.000279% of his total net worth. Buffett has consistently ranked the purchase of his home as the third-best investment he ha
As a pandemic-inspired boom ends, entrepreneurs and giant corporations alike are counting on customers to keep accumulating more stuff than they can squeeze into their homes. | NVDA |
https://finnhub.io/api/news?id=7aa8b4b8754072c3dd03a977d24b268920f8ed2e5a7bfe172793a82a5be4c494 | NVIDIA Corp. stock rises Thursday, outperforms market | Shares of NVIDIA Corp. inched 0.58% higher to $270.37 Thursday, on what proved to be an all-around great trading session for the stock market, with the S&P... | 2023-04-06T10:13:00 | MarketWatch | Shares of NVIDIA Corp.
NVDA,
+0.37%
inched 0.58% higher to $270.37 Thursday, on what proved to be an all-around great trading session for the stock market, with the S&P 500 Index
SPX,
-0.53%
rising 0.36% to 4,105.02 and the Dow Jones Industrial Average
DJIA,
-0.43%
rising 0.01% to 33,485.29. The stock's rise snapped a two-day losing streak. NVIDIA Corp. closed $9.63 short of its 52-week high ($280.00), which the company reached on April 4th.
Trading volume (38.5 M) remained 12.3 million below its 50-day average volume of 50.8 M.
Editor's Note: This story was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones and FactSet. See our market data terms of use. | NVDA |
https://finnhub.io/api/news?id=27374062ec5385d736b765f81cf31368e37b74b626b8c54a2e4e8800282ab275 | Nvidia, Apple, Meta stocks lead market rally year-to-date | Yahoo Finance Live’s Jared Blikre breaks down the current market rally. | 2023-04-06T08:17:21 | Yahoo | Nvidia, Apple, Meta stocks lead market rally year-to-date
Yahoo Finance Live’s Jared Blikre breaks down the current market rally.
Video Transcript
RACHELLE AKUFFO: All right, turning now to our top story on the markets, we're watching a few big stocks driving the current rally, but as the set names behind the market move narrows, is the tech driven shift sustainable? Joining us with more, Yahoo Finance's Jared Blikre. Hey, Jared.
JARED BLIKRE: Yes, concentration risk. This is something that I remember hearing years ago in the leadup to the global pandemic. And we'll get to that in a second. But first, here is a chart of the S&P 500's largest two stocks and how much they're contributing, how much they make up in the index. This goes back all the way to 1975.
And back then, there were two stocks that were dominating the action. It was Ma Bell and Big Blue, AT&T and IBM. Well, fast forward. You can see we got concentration issues rising in 2016, '17, '18, leading into the pandemic. And then in the pandemic recovery, it was really all about a lot of the mega caps and those low-- and those growth stocks that require low interest rates.
So let's pivot now to see what's happened this year. In the NASDAQ 100, we've seen some incredible gains, especially by the mega caps here. And this was meanwhile, while the Dow was barely making traction, while small caps were barely making traction. But you can see Nvidia up 83%. It was up 90% at the end of the quarter. That was only one week ago. Apple up 26%, Meta up 75%, some incredible gains. So people are wondering, will this continue?
Well, historically, when you see this kind of concentration, usually, it only lasts for a period of time, a limited period of time. That's because if you only have some big names holding up the market, once they get whacked, the bottom falls out. And then you have some real selling. What's happened over the last four days, and that's this holiday shortened week, we're seeing a lot more red than green. So the conditions that created that outperformance by the mega caps, not necessarily continuing in this new quarter.
And what are those conditions? Well, it gets back to the bond market. And here's where we want to take a look at what the 10-year T-note yield has done. Here's what it's done these last four days. It's down, but over the year, we can see it had a big drop in the early March, all the way to that banking crisis that unfolded into the middle of the month, and then towards the end of it.
Lower interest rates generally support higher prices in these growth stocks and the mega caps, but we're not seeing that right now. We've seen a rash of economic reports that have disappointed to the downside. And the market reaction has been, well, we don't like that either. So if we are getting into a situation where bad news is bad news, and even lower rates cannot help the growth stocks as much, that is certainly troubling for this one asset class that has really outperformed this year. Rachelle. | NVDA |
https://finnhub.io/api/news?id=8c4570e32346a4137c3956b3b781ea11ee98d3e65da61ddd7353f45aa1f630aa | Nvidia Leads AI Race: Latest Benchmark Results Confirm Dominance | Nvidia has stated that the latest MLPerf results show NVIDIA H100 GPUs running in DGX H100 systems delivered the highest performance in every test of AI performance. | 2023-04-06T07:43:59 | Yahoo | Nvidia Leads AI Race: Latest Benchmark Results Confirm Dominance
Nvidia has stated that the latest MLPerf results show NVIDIA H100 GPUs running in DGX H100 systems delivered the highest performance in every test of AI performance.
Nvidia has stated that the latest MLPerf results show NVIDIA H100 GPUs running in DGX H100 systems delivered the highest performance in every test of AI performance.
Mark Spitznagel and Nassim Taleb have been watching for black swans for decades. "We’ve never seen anything like this level of total debt and leverage in the system," he tells Fortune. "It's an experiment."
Warren Buffett is undeniably the most famous and influential investor in modern history, based on his extraordinary performance record. Not surprisingly, the investment portfolio of Berkshire Hathaway Inc. (BRK.A), the holding company employing the Oracle of Omaha as chairman and CEO, receives wide media attention and scrutiny, even though Buffett is no longer making every investment decision. Despite his unparalleled success, Buffett's investment model has long been transparent, straightforward, and consistent.
Stocks have blown past expectations for 2023 – but some analysts are bracing for a sell-off as the market approaches record highs.
The JPMorgan Equity Premium Income ETF’s (NYSEARCA:JEPI) combination of high yield and monthly payments has quickly made it one of the market’s most popular ETFs. Investors who like JEPI’s style now have another high-yield competitor to consider — the NEOS S&P 500 High Income ETF (BATS:SPYI), which also pays on a monthly basis and yields 10.7%. Let’s take a closer look at this intriguing new option for high-yield investors. What is SPYI ETF’s Strategy? Launched in August of 2022, SPYI is still a
Just because you retire doesn't mean you have to stop working. And when work is an option rather than a requirement, it's possible to select a low-stress job that multiplies fulfillment without adding anxiety - but still provides a bit … Continue reading → The post 12 Low-Stress Jobs You Can Do in Retirement appeared first on SmartAsset Blog.
Berkshire Hathaway historically reports its quarterly financial results on weekends, and CEO Warren Buffet has a simple reason why. Berkshire (ticker: BRK.A, BRK.B) reported second-quarter earnings Saturday morning. Many other public companies, however, release their earnings results during the trading week, either before the market opens or after the closing bell.
The market rally is at an infection point after notable losses. Here's what to do. Warren Buffett's Berkshire earnings rose.
Is there a point at which I should stop reinvesting stock dividends and invest the money or save the cash? -Anonymous Many financial experts recommend that you reinvest dividends most of the time – and I'm inclined to agree. The … Continue reading → The post Ask an Advisor: Should I Stop Reinvesting Dividends? appeared first on SmartAsset Blog.
There are many different approaches and strategies for retirement investing that might appeal to you. But how do you tell if a certain strategy works for your situation? When evaluating different approaches, consider how each strategy is put together and … Continue reading → The post Here's How Much to Keep in Stocks, Bonds and Cash in Retirement appeared first on SmartAsset Blog.
The week ahead will feature a crucial inflation report and earnings out of Disney, UPS, and Alibaba as second quarter earnings season winds down.
(Bloomberg) -- Dan Loeb is hardly the first Wall Street titan to lament how meme stock traders have made short selling a perilous endeavor. But that Loeb, who runs the hedge fund Third Point LLC, did so now is what’s interesting.Most Read from BloombergTexas Power Prices to Surge 800% on Sunday Amid Searing HeatNetanyahu Seeks to Change How Judges Are Named, Then Stop RevampChina Embassy Rips ‘Brutal’ Russia Border Incident in Rare MoveThe Most Dangerous Job for Lawyers Is Being on Trump’s Legal
AustralianSuper, one of the world’s largest pensions, halved its Apple stock investment and sold Microsoft stock, while buying shares of Tesla and Nvidia.
One in 6 asset and wealth management companies will be bought or shut down in the next five years, according to a PwC survey of asset managers and institutional investors.
Travel scams are on the rise. Don't be a victim.
Warren Buffett's Berkshire Hathaway operating profit rose by 10%. BRKB stock is just out of buy range.
VZ stock provides a dividend but a buyback has been shelved amid 5G wireless investments. When will revenue growth reaccelerate?
Will generative artificial intelligence boost Palantir stock in the commercial market amid slowing revenue growth for the company?
Retirement account withdrawals not only help you cover basic living expenses, but they also can fund the lifestyle you've always envisioned in your golden years. That money, however, can have unintended tax consequences. Required minimum distributions (RMDs) and other withdrawals … Continue reading → The post Social Security Taxes Can Hit You Hard in Retirement. Here's How to Lower Them appeared first on SmartAsset Blog.
Dubbed the Oracle of Omaha, Warren Buffett is renowned for his simple and frugal lifestyle. Despite being the sixth richest person globally, with a net worth estimated at $117.9 billion, Buffett continues to live in the same modest home in Omaha that he purchased in 1958 for just $31,500. Adjusted for inflation, that amount today would be approximately $328,990.80, a mere 0.000279% of his total net worth. Buffett has consistently ranked the purchase of his home as the third-best investment he ha
As a pandemic-inspired boom ends, entrepreneurs and giant corporations alike are counting on customers to keep accumulating more stuff than they can squeeze into their homes. | NVDA |
https://finnhub.io/api/news?id=e74e594bab8b191a31f3085c8c8cf5c02f76d9637eb222122154404da3d48c1e | Nvidia market share surges with gaming-chip market 'on the mend' and boosted by AI, analyst says | Following a flood of new gaming cards this past holiday season into an already crowded market, one analyst believes the gaming card market is "on the mend." | 2023-04-06T06:52:00 | MarketWatch | A flood of new gaming cards for the holidays saturated an already crowded market, but one analyst believes that market is now “on the mend,” with Nvidia Corp. growing more dominant as the rise of artificial intelligence hastens the chip maker’s recovery.
Using survey data from online gaming network Steam’s more than 25 million active users, B of A Securities analyst Vivek Arya noted that 82.6% of users were running Nvidia
NVDA,
Arya, however, looks upon that data “with caution” given the recent reopening of China’s internet cafes. The analyst noted the survey data showing listed 51.7% of participants using “Simplified Chinese” operating system, versus 26%-27% last month. A similar occurrence of “overcounting” happened in the 2018-2019 cycle, when sales dropped ahead of clearing out of inventory ahead of new launches, he said.
Given that, Arya said he believes the gaming market is “on the mend” following a 50% drop in sales in the fourth quarter, and an expected similar drop in the first quarter as well, which would mark four consecutive quarters of year-over-year declines.
Unlike the 2021’s holiday season, gaming cards from Nvidia, Advanced Micro Devices Inc.
AMD,
Arya said one aspect of Nvidia’s videogame technology that’s “potentially underappreciated,” is the growing use of AI, which most games already use on a basic level.
Read: Nvidia CEO expects AI revenue to grow from ‘tiny, tiny, tiny’ to ‘quite large’ in the next 12 months
“Existing games today use basics of AI to support computer-controlled responses given certain inputs (ex: computer-controlled opponent), though actions are preprogrammed,” Arya said. “Thus, games/computer-controlled opponents are unable constantly ‘learn’ and adapt from user inputs/prompts.”
“With generative AI, [large language models] can be developed and used to enhance gameplay, enabling anything from creation of new virtual worlds, reducing game/CPU-controlled opponent predictability, and much more,” the B of A analyst noted. “Accelerating various tasks can also possibly speed up game development and reduce costs.” | NVDA |
https://finnhub.io/api/news?id=776a37083255d47922fcf3bebc363354546e458d2e983c2c9a6500d964256fe8 | Is Google Challenging Nvidia? | Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) recently released a report showcasing the strength of its TPU v4, a supercomputer made using Google's accelerators. One of the selling points is that this supercomputer is faster and more energy-efficient than it would be if it were using Nvidia's (NASDAQ: NVDA) accelerators. | 2023-04-06T06:36:59 | Yahoo | Is Google Challenging Nvidia?
Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) recently released a report showcasing the strength of its TPU v4, a supercomputer made using Google's accelerators. One of the selling points is that this supercomputer is faster and more energy-efficient than it would be if it were using Nvidia's (NASDAQ: NVDA) accelerators. | NVDA |
https://finnhub.io/api/news?id=aa4daa0836aac2229943d0fa5895f80b773a23319441ecb63ef75471d0deabb4 | Alphabet Says Google's Latest AI Chip is 1.7 Times Faster Than Nvidia. There's a Catch. | Artificial intelligence (AI) is all the rage lately. Human-like interactions from the latest generation of chatbots -- powered by generative AI systems -- has peaked public interest. Alphabet's (NASDAQ: GOOGL) (NASDAQ: GOOG) Google helped fueled the fervor with the debut of its own chatbot, Bard. | 2023-04-06T06:01:00 | Yahoo | Alphabet Says Google's Latest AI Chip is 1.7 Times Faster Than Nvidia. There's a Catch.
Artificial intelligence (AI) is all the rage lately. Human-like interactions from the latest generation of chatbots -- powered by generative AI systems -- has peaked public interest. Alphabet's (NASDAQ: GOOGL) (NASDAQ: GOOG) Google helped fueled the fervor with the debut of its own chatbot, Bard. | NVDA |
https://finnhub.io/api/news?id=53739dd857ee2846035757e793d6400f0c2afb628bd1e0b84362323a4d83ff62 | Nvidia market share surges with gaming-chip market ���on the mend` and boosted by AI, analyst says | Looking for stock market analysis and research with proves results? Zacks.com offers in-depth financial research with over 30years of proven results. | 2023-04-06T05:53:00 | MarketWatch | This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.
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At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.26% per year. These returns cover a period from January 1, 1988 through July 3, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.
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https://finnhub.io/api/news?id=21cfbcde7658ec3364e4a7fac7f61eaa709b7ecb3f40733e1525378aafc70405 | Why speculative AI stocks like C3.ai and BigBear.ai are seeing monster volatility | The volatility in AI stocks in recent days has been something to witness. | 2023-04-06T05:32:21 | Yahoo | Why speculative AI stocks like C3.ai and BigBear.ai are seeing monster volatility
There are three things investors could have banked on over the last five trading sessions: The stock market would open at 9:30 a.m., the stock market would close at 4 p.m., and speculative AI stocks would see monster levels of volatility.
And who said there was nothing definite in investing?!
Yahoo Finance is zooming in on shares of speculative and buzzy AI names C3.ai, Inc. (AI), SoundHound (SOUN), and BigBear.ai (BBAI), all of which have seen outsized moves in the last five trading sessions. SoundHound shares have surged 26%, BigBear.ai is up 11%, and C3.ai has plunged 24% (in part due to a fresh short-seller attack).
All three names have been virtually pinned to the Yahoo Finance "Trending Ticker" page, too.
By comparison, the more established and fundamentally stronger AI plays such as Microsoft (MSFT) and Nvidia (NVDA) are only down slightly in the past five trading days. Alphabet's (GOOG, GOOGL) stock is actually up slightly during this span.
So what gives with the head-turning action in the aforementioned speculative AI names (which are underpinned by companies that have no profits)?
Traders point to a few factors.
"In my opinion, it’s the excess liquidity that has been provided by the Fed and other global central banks during the banking crisis. When excess liquidity is pushed into the markets, it initially tends to go into a narrow number of assets … the stocks and assets that have the most momentum. That’s what happened in 2010/11 … and after the liquidity injections in 2020," Miller Tabak chief markets strategist Matt Maley tells me via email.
Point taken.
Sevens Report Research founder Tom Essaye tells me the fierce moves have been ignited by fears of industry regulation raining down on a topic that exploded into the minds of investors in March amid hype around ChatGPT.
"Basically I think there’s some regulation concerns, not so much in the governmental sense yet, but perhaps industry regulations. That’s just injecting some fundamental uncertainty into the whole space, and given the valuations and popularity of the AI names, it’s resulting in some wild gyrations!" Essaye says.
The past week alone has put a spotlight on Essaye's view.
“Tech companies have a responsibility, in my view, to make sure their products are safe before making them public,” President Joe Biden said at a science and tech conference on Wednesday.
"It remains to be seen. It could be," the president replied when asked if AI was dangerous.
Meantime, Tesla CEO Elon Musk and more than 1,000 tech leaders recently signed a letter calling for a six-month pause on developing powerful AI platforms. This came just days after Microsoft founder Bill Gates waxed poetic on the future potential of AI.
While the development of next-generation AI is in full swing and the broad swath of sector plays likely to remain of interest to investors, Miller Tabak's Maley reminds everyone that speculative names are just that — speculative, and littered with risk.
So proceed with caution into names like C3.ai, SoundHound, and BigBear.ai.
The rally "could certainly have legs, but at some point, valuations matter. Therefore, these stocks will be subject to some very serious declines as we move through 2023," Maley said.
Brian Sozzi is Yahoo Finance's Executive Editor. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn. Tips on the banking crisis or anything else? Email [email protected]
Click here for the latest economic news and economic indicators to help you in your investing decisions
Read the latest financial and business news from Yahoo Finance | NVDA |
https://finnhub.io/api/news?id=1e9da36a1db47ad7d5da7a7b2e6fb48648dfffd038237448d7f607488eb050ff | My Dividend Growth Portfolio - Q1 2023 Summary | Looking for stock market analysis and research with proves results? Zacks.com offers in-depth financial research with over 30years of proven results. | 2023-04-06T05:32:00 | Seeking Alpha | This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.
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At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.26% per year. These returns cover a period from January 1, 1988 through July 3, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.
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https://finnhub.io/api/news?id=b665be8aa5253a791dd59f712e689b53e597ac2d2a224f5b4975671ab95e3543 | Nicholas Ward`s Dividend Growth Portfolio: Special Fixed Income Edition | Looking for stock market analysis and research with proves results? Zacks.com offers in-depth financial research with over 30years of proven results. | 2023-04-06T04:57:00 | Seeking Alpha | This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.
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At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.26% per year. These returns cover a period from January 1, 1988 through July 3, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.
Visit Performance Disclosure for information about the performance numbers displayed above.
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https://finnhub.io/api/news?id=068becbc38847f60b98a71581714cca90ec2534afe3f72d213333a9a2abebf74 | Can Nvidia Stock Reach $300 In 2023? Yes, Consider Generative AI Growth Potential | Nvidia's stock price has been going up, as the rise of generative AI should have a positive impact on its growth prospects. Read what this means for NVDA stock. | 2023-04-06T04:32:01 | SeekingAlpha | Can Nvidia Stock Reach $300 In 2023? Yes, Consider Generative AI Growth Potential
Summary
- Nvidia Corporation's share price has been going up recently, as the rise of generative AI should have a positive impact on its growth prospects for the short term and long term.
- I see Nvidia's shares rising above $300, considering that Nvidia is well-positioned to leverage on generative AI growth opportunities, and the implied 1.5 times PEG ratio is reasonable.
- My Buy rating for Nvidia remains unchanged; Nvidia still offers a decent upside at its current price, and the stock is a long-term play on AI.
- Looking for more investing ideas like this one? Get them exclusively at Asia Value & Moat Stocks. Learn More »
Elevator Pitch
I continue to rate Nvidia Corporation (NASDAQ:NVDA) stock as a Buy.
NVDA's shares have surged by +63% (source: Seeking Alpha price data), since I raised my investment rating for Nvidia Corporation to a Buy in my July 26, 2022 write-up outlining its 10-year outlook.
With my latest update, I highlight that NVDA is still a worthy investment candidate. Taking into account its new AI inference offerings and the stock's price/earnings to growth or PEG valuations, Nvidia Corporation has the potential to rise by a further +12% to $300 or higher in the current year. Looking into the future, generative AI holds significant growth potential, and NVDA is a beneficiary of the potential shift in AI inference workloads from CPUs to GPUs. As such, I have kept my Buy rating for Nvidia Corporation intact.
Why Has Nvidia's Stock Price Been Going Up?
Nvidia Corporation's share price went up by +13%, +88%, and +104% in the last one month, 2023 year-to-date, and the past six months, respectively.
NVDA's stock price has been rising because the company is a key beneficiary of the rise of generative AI. Mckinsey defines generative AI as "algorithms (such as ChatGPT) that can be used to create new content."
In the short term, NVDA disclosed at its shareholder/analyst conference on March 23, 2023, that it is "seeing stronger demand from our hyperscale customers for all of our data center platforms as they focus on generative AI," particularly in the past one month. Earlier, Nvidia Corporation guided for positive QoQ and YoY revenue growth for its data center segment in Q1 FY 2024 (YE January) as per its management comments at the late-February FY 2023 earnings call. Notably, NVDA's new H100 data center GPU (Graphics Processing Unit) which delivers better AI inference performance than its predecessor (A100) has been well-received by clients. As such, the near-term outlook for Nvidia Corporation's data center business is favorable.
For the long run, AI inference is expected to be a major growth driver for Nvidia Corporation. As per a March 16, 2023 report (not publicly available) titled "Large Language Model Enthusiasm Is Transforming Cloud Capex," Morgan Stanley (MS) estimated that NVDA's annual AI inference revenue could potentially increase 10-fold to $5 billion in the next five years. MS' forecasts are aligned with NVDA's comments at the recent March 23 shareholder/analyst conference on March 23 noting that generative AI will drive a "step function increase in the amount of inference workloads."
Is The Chip Shortage A Problem For Nvidia?
The lack of semiconductor chips shouldn't be an issue that holds back Nvidia in the near term.
At its shareholder/analyst call in late March, Nvidia Corporation assured investors that "we feel confident that we will be able to serve this (data center) market as we continue to build the supply," when it addressed a question on potential data center chip shortage.
NVDA's recent management remarks are consistent with third-party research. Based on a March 23, 2023 research report published by Bain, "delivery times" for semiconductor chips on average were approximately nine weeks shorter in early 2023 as compared to what they were last year.
In other words, I don't expect chip supply to be a constraining factor for Nvidia Corporation this time around.
What Are Analysts Saying About Nvidia?
Wall Street is saying good things about Nvidia Corporation in relation to the generative AI growth driver.
Earlier, Seeking Alpha News published an article on March 22, 2023, citing comments from a couple of sell-side analysts with regards to their views on NVDA. Barclays (BCS) referred to Nvidia Corporation as the "king of generative AI" which it described as "the biggest secular tailwind in Tech." Separately, the analyst from Bank of America (BAC) highlighted the company's "dominance in the nascent generative AI/large language model market." More importantly, Bernstein's sell-side analyst stressed that "the massive [total addressable market] numbers" for NVDA "are looking a little less outlandish every day" with the rise of generative AI.
In a nutshell, the Wall Street analysts' comments support my view that generative AI's rise will extend Nvidia Corporation's growth runway, as I have discussed above.
Nvidia Stock Key Metrics
There are certain metrics which indicate that analyst sentiment for Nvidia has become much more favorable in recent months.
The market's consensus Q1 FY 2024 normalized EPS estimate for Nvidia Corporation has been increased by +4.1% in the past three months. During this same time period, twice as many analysts (18) lifted their first quarter bottom line forecasts for NVDA as compared to those (9) who cut their Q1 EPS projections.
Also, the average sell-side analyst rating for NVDA rose from 4.16 as of February 27, 2023 to 4.27 as of April 5, 2023. With ratings of 4 and 5 representing Buy and Strong Buy recommendations, respectively, it is apparent that analysts in general are increasingly bullish on Nvidia Corporation's appeal as a potential investment candidate.
What Is The Current NVDA Price Target?
The mean Wall Street analyst target price for Nvidia Corporation's stock has increased substantially by +37% from $202.45 at the end of last year to $276.53 as of April 5 this year. The current mean sell-side price target for NVDA is still above the company's last traded share price of $268.81 at the end of the April 5, 2023, trading day.
But it will be more meaningful to refer to the median analyst target price for NVDA, as the mean metric is easily influenced by outliers. Nvidia Corporation's current median sell-side price target is higher (as compared to mean) at $290.50 (source: S&P Capital IQ), which translates into an +8% upside.
I expect NVDA's actual share price performance for 2023 to be better than what the analysts are expecting, as detailed in the next section.
Can Nvidia Stock Reach $300 In 2023?
My opinion is that NVDA's shares can go up to $300 or higher in 2023, and this will be equivalent to a minimum double-digit percentage (or 12% to be exact) capital appreciation potential as compared to its current price level. Nvidia Corporation's valuations will be still quite reasonable at a stock price of $300, and the company's recent new platform introductions suggest that it is well-positioned to capitalize on AI inference growth opportunities.
As per S&P Capital IQ data, a $300 price target for NVDA will translate into a consensus forward FY 2024 normalized P/E of 50.0 times, while its consensus FY 2024-2027 normalized EPS CAGR is +32.8%. This works out to be a PEG multiple of 1.5 times for Nvidia Corporation, which isn't unwarranted for a high-growth stock like NVDA.
Nvidia Corporation's New AI Inference Platforms Introduced At GTC 2023
At the recent GPU Technology Conference or GTC 2023 in late-March, NVDA introduced four AI inference platforms. The L4 and L40 are targeted at video computing and image generation, respectively. The H100 NVL is focused on LLM or Large Language Models, while the Grace Hopper will be suited for recommendation models.
Nvidia Corporation had emphasized at its March 23, 2023 analyst/shareholder conference that the rise of generative AI means "it is no longer possible, using general-purpose computing CPUs" to "sustain increased workloads." As workloads eventually shift from CPUs to GPUs, it is very likely that NVDA's AI inference offerings, which the company has indicated to be cost- and energy-efficient, should gain substantial share.
Bottom Line
Nvidia Corporation shares are still a Buy despite the recent outperformance. In the near term, Nvidia Corporation stock still has a decent upside of at least +12%, as I expect its share price to go above $300 this year. For the intermediate to long term, Nvidia Corporation is a key proxy for the generative AI investment theme.
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This article was written by
Those who believe that the pendulum will move in one direction forever or reside at an extreme forever eventually will lose huge sums. Those who understand the pendulum's behavior can benefit enormously. ~ Howard Marks
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Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Comments (58)
i'm sure there were similar arguments put forth when NVDA started 😄
I owned my stock for over 6 years up 8.5x in my IRA.
I purchased it a little over 6 years ago. The reason Artificial intelligence the 4th Industrial Revolution. My career hardware software systems semiconductor peripherals and cybersecurity.
Amazing how many people have opinions but they know very little about Nvidia. All the new markets they're in with tremendous TAM's
The new strategic relationships partnerships with Google Amazon Microsoft and Oracle.
All four companies will be renting time @ $36,000+ per hour to their customers on Nvidia Cloud supercomputer including software.. Why didn't they do it themselves ??
They can't only Nvidia can do. How?
Nvidia's Cloud AI Data Factory Supercomputer Platform, CUDA Software Platform and massive AI Vertical Market AI Libraries.
The question about will enough production from Taiwan semiconductor their fab.
The answer is definitely yes.NVIDIA, ASML, TSMC & Synopsys Accelerate Next-Gen Chip Manufacturing By 40x With Nvidia cuLitho software.
It's backward compatible with older Nvidia GPU systems.
Taiwan semiconductor will begin using Nvidia cuLitho syoftware in June 2023.
NVIDIA today announced a Breakthrough that brings Accelerated Computing to the field of Computational Lithography, enabling Semiconductor Leaders like ASML, TSMC, and Synopsys to aoccelerate the Design and Manufacturing of Next Generation Chips, just as current production processes are nearing the limits of what physics makes possiblewccftech.com/...
They were 2x more accurate and faster than any of the competition. Nvidia funded a great deal of AlexNet. They are the fathers of AI research.
You can Google it.
AlexNet was using Nvidia GPUs.
In 2016 Nvidia was funding and gave their first built in-house supercomputer to OpenAI who developed ChatGPT.
ChatGPT will only run on Nvidia hardware and software. Nvidia system was exclusively used to develop ChatGPT You can Google it and there's a picture of Jensen Huang founder /CEO of Nvidia signing supercomputer gifted to OpenAI . That was a $1 million gift buy Nvidia.Google compared their T4 Tensor core to an older Nvidia A100.
The new GPU series is the H100, it's currently in production
Why did they do that ?? Google would have been slaughtered comparing their T4 to Nvidia's H100
You're a little behind in your reading.
Google's sly unprofessional dirty tricks move was published the day before the new speed testing was released MLPerformance 3.0 testing by MLCommons.
May you have a good day and good luck in your investing.
The article is below.
The new H100 is about 4X faster than the A100
My career has been in hardware software systems semiconductor peripherals and cybersecurity.
I've been living and breathing this arena everyday my whole career. My investment in Nvidia was over 6 years ago. It's the only horse in town winning the race in AIwww.forbes.com/...
Try not to do any conversions of stocks at the top of their trading range. Wait for pullbacks and you don't have to move your whole position at one time. I made conversions in early 2020 and again July 2022 and Sep/Oct 2022. Saving thousand of/on taxable income. I have one less account that has RMD. Slow and steading keeps the tax man at bay.
But there will be a recession in a few months and this bubble NVDA is in right now will likely deflate again. Now I believe I have a realistic range to trade in. Besides which, buying 100 shares of this stock requires almost $30,000. And unless you have that type of capital to put into one stock how much exposure do you want to make a few dollars on 10 or 20 shares? JMO (just my opinion)
It all about percentages. If you 20% on 10 shares or 100 share, it's still 20%. You have to start somewhere. And for the beginner or resource restricted I'd much prefer they own 10 shares of 10 stocks than 100 shares of one stock.
A nvda shareholder.
At 50-60% revenue growth this upcoming quarter, I could potentially justify its valuation. Let’s see what they can deliver. Last 2x quarters showed negative 16% and negative 20% revenue growth regardless of the AI craze.
To justify the valuation, they should be doubling revenue each year for the next 5 years.
Tech (good tech with real products and healthy cashflow) isn't finished recovering from the downturn of 2022. I *think* ERs this season won't be as bad as everyone expects. Plus, AI competitive advantage factors will propel good Tech further. (My portfolio is heavy on Tech and am not listening to analysts about 'defensive plays'). | NVDA |
https://finnhub.io/api/news?id=8be5c83dd403e7393f65a6dafd2db3bf70e63126c6b028d10f732c37edd5c5a9 | Better AI Stock: Nvidia vs. Palantir | Artificial intelligence (AI) has become a massive market theme, and investors are looking at ways to cash in on this trend. Two different ways to invest in AI are through Palantir Technologies (NYSE: PLTR), an application play, and Nvidia (NASDAQ: NVDA), a hardware company. As mentioned above, Palantir is focused on applying AI through its data analytics software. | 2023-04-06T03:00:00 | Yahoo | Better AI Stock: Nvidia vs. Palantir
Artificial intelligence (AI) has become a massive market theme, and investors are looking at ways to cash in on this trend. Two different ways to invest in AI are through Palantir Technologies (NYSE: PLTR), an application play, and Nvidia (NASDAQ: NVDA), a hardware company. As mentioned above, Palantir is focused on applying AI through its data analytics software. | NVDA |
https://finnhub.io/api/news?id=a6982c0004e46f443f6f87329d80f67646e7b32f4fcb4c586997a9f502a1c36e | Dogecoin leads way as largest cryptocurrencies decrease | All of the largest cryptocurrencies were down during morning trading on Thursday, with Dogecoin seeing the biggest move, falling 4.58% to 9 cents. Cardano... | 2023-04-06T03:00:00 | MarketWatch | All of the largest cryptocurrencies were down during morning trading on Thursday, with Dogecoin DOGEUSD seeing the biggest move, falling 4.58% to 9 cents.
Cardano ADAUSD shed 2.81% to 38 cents, and Uniswap UNIUSD declined 2.05% to $6.08.
Ethereum ETHUSD dropped 2.05% to $1,866.66 on Thursday, while Ripple XRPUSD declined 1.23% to 50 cents and Litecoin LTCUSD fell 1.46% to $90.97.
Bitcoin Cash BCHUSD and Bitcoin BTCUSD fell 0.90% to $126.02 and 0.89% to $27,890.70
Polkadot DOTUSD rounded out the decreases with a 0.37% decline to $6.37.
In crypto-related company news, shares of Coinbase Global Inc. COIN sank 0.94% to $60.21, while MicroStrategy Inc. MSTR dropped 3.24% to $281.42. Riot Platforms Inc. RIOT shares shed 1.97% to $8.97, and shares of Marathon Digital Holdings Inc. MARA shed 1.28% to $7.83.
Overstock.com Inc. OSTK fell 1.65% to $18.17, while Block Inc. SQ declined 1.39% to $66.72 and Tesla Inc. TSLA fell 1.88% to $182.04.
PayPal Holdings Inc. PYPL dropped 1.51% to $72.50, and Ebang International Holdings Inc. EBON shares increased 6.15% to $5.70. NVIDIA Corp. NVDA slid 0.92% to $266.35, and Advanced Micro Devices Inc. AMD shed 1.02% to $91.62.
In the fund space, blockchain-focused Amplify Transformational Data Sharing ETF BLOK declined 1.17% to $18.59. The Bitwise Crypto Industry Innovators ETF BITQ, which is focused on pure-play crypto companies, declined 2.25% to $5.45. Grayscale Bitcoin Trust GBTC, which tracks the Bitcoin market price, declined 1.67% to $15.92.
Editor's Note: This story was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones and FactSet. See our market data terms of use. | NVDA |
https://finnhub.io/api/news?id=5f723e46e4c4effe9c71c7062782beaf95cb5d36549aad5b04fea8c62c47ba42 | Nvidia Slips Even as Analyst Remains Bullish and Cites ���Share Gains` | Looking for stock market analysis and research with proves results? Zacks.com offers in-depth financial research with over 30years of proven results. | 2023-04-06T02:57:00 | TipRanks | This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.
Copyright 2023 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.26% per year. These returns cover a period from January 1, 1988 through July 3, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.
Visit Performance Disclosure for information about the performance numbers displayed above.
Visit www.zacksdata.com to get our data and content for your mobile app or website.
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https://finnhub.io/api/news?id=41196892596b24fe9db60b27679b856808e2266e687e9e9c6f609b29dacfaff3 | VanEck grows its ETF lineup with a new robotics focused fund | Looking for stock market analysis and research with proves results? Zacks.com offers in-depth financial research with over 30years of proven results. | 2023-04-06T02:54:00 | Seeking Alpha | This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.
Copyright 2023 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.26% per year. These returns cover a period from January 1, 1988 through July 3, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.
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https://finnhub.io/api/news?id=143349e44bde59b1bab216cff2ad3579a37a944d494006c10f42653b63cead88 | These 5 Consumer Trends Could Create a $22.5 Trillion Opportunity by 2030: Here Are the Top Stocks to Buy Now | Cathie Wood's ARK Invest thinks these consumer markets will grow tremendously over the next several years. | 2023-04-06T02:50:00 | Yahoo | These 5 Consumer Trends Could Create a $22.5 Trillion Opportunity by 2030: Here Are the Top Stocks to Buy Now
Cathie Wood's ARK Invest thinks these consumer markets will grow tremendously over the next several years.
Cathie Wood's ARK Invest thinks these consumer markets will grow tremendously over the next several years.
Mark Spitznagel and Nassim Taleb have been watching for black swans for decades. "We’ve never seen anything like this level of total debt and leverage in the system," he tells Fortune. "It's an experiment."
Warren Buffett is undeniably the most famous and influential investor in modern history, based on his extraordinary performance record. Not surprisingly, the investment portfolio of Berkshire Hathaway Inc. (BRK.A), the holding company employing the Oracle of Omaha as chairman and CEO, receives wide media attention and scrutiny, even though Buffett is no longer making every investment decision. Despite his unparalleled success, Buffett's investment model has long been transparent, straightforward, and consistent.
Stocks have blown past expectations for 2023 – but some analysts are bracing for a sell-off as the market approaches record highs.
The JPMorgan Equity Premium Income ETF’s (NYSEARCA:JEPI) combination of high yield and monthly payments has quickly made it one of the market’s most popular ETFs. Investors who like JEPI’s style now have another high-yield competitor to consider — the NEOS S&P 500 High Income ETF (BATS:SPYI), which also pays on a monthly basis and yields 10.7%. Let’s take a closer look at this intriguing new option for high-yield investors. What is SPYI ETF’s Strategy? Launched in August of 2022, SPYI is still a
Just because you retire doesn't mean you have to stop working. And when work is an option rather than a requirement, it's possible to select a low-stress job that multiplies fulfillment without adding anxiety - but still provides a bit … Continue reading → The post 12 Low-Stress Jobs You Can Do in Retirement appeared first on SmartAsset Blog.
Berkshire Hathaway historically reports its quarterly financial results on weekends, and CEO Warren Buffet has a simple reason why. Berkshire (ticker: BRK.A, BRK.B) reported second-quarter earnings Saturday morning. Many other public companies, however, release their earnings results during the trading week, either before the market opens or after the closing bell.
The market rally is at an infection point after notable losses. Here's what to do. Warren Buffett's Berkshire earnings rose.
Is there a point at which I should stop reinvesting stock dividends and invest the money or save the cash? -Anonymous Many financial experts recommend that you reinvest dividends most of the time – and I'm inclined to agree. The … Continue reading → The post Ask an Advisor: Should I Stop Reinvesting Dividends? appeared first on SmartAsset Blog.
There are many different approaches and strategies for retirement investing that might appeal to you. But how do you tell if a certain strategy works for your situation? When evaluating different approaches, consider how each strategy is put together and … Continue reading → The post Here's How Much to Keep in Stocks, Bonds and Cash in Retirement appeared first on SmartAsset Blog.
The week ahead will feature a crucial inflation report and earnings out of Disney, UPS, and Alibaba as second quarter earnings season winds down.
(Bloomberg) -- Dan Loeb is hardly the first Wall Street titan to lament how meme stock traders have made short selling a perilous endeavor. But that Loeb, who runs the hedge fund Third Point LLC, did so now is what’s interesting.Most Read from BloombergTexas Power Prices to Surge 800% on Sunday Amid Searing HeatNetanyahu Seeks to Change How Judges Are Named, Then Stop RevampChina Embassy Rips ‘Brutal’ Russia Border Incident in Rare MoveThe Most Dangerous Job for Lawyers Is Being on Trump’s Legal
AustralianSuper, one of the world’s largest pensions, halved its Apple stock investment and sold Microsoft stock, while buying shares of Tesla and Nvidia.
One in 6 asset and wealth management companies will be bought or shut down in the next five years, according to a PwC survey of asset managers and institutional investors.
Travel scams are on the rise. Don't be a victim.
Warren Buffett's Berkshire Hathaway operating profit rose by 10%. BRKB stock is just out of buy range.
VZ stock provides a dividend but a buyback has been shelved amid 5G wireless investments. When will revenue growth reaccelerate?
Will generative artificial intelligence boost Palantir stock in the commercial market amid slowing revenue growth for the company?
Retirement account withdrawals not only help you cover basic living expenses, but they also can fund the lifestyle you've always envisioned in your golden years. That money, however, can have unintended tax consequences. Required minimum distributions (RMDs) and other withdrawals … Continue reading → The post Social Security Taxes Can Hit You Hard in Retirement. Here's How to Lower Them appeared first on SmartAsset Blog.
Dubbed the Oracle of Omaha, Warren Buffett is renowned for his simple and frugal lifestyle. Despite being the sixth richest person globally, with a net worth estimated at $117.9 billion, Buffett continues to live in the same modest home in Omaha that he purchased in 1958 for just $31,500. Adjusted for inflation, that amount today would be approximately $328,990.80, a mere 0.000279% of his total net worth. Buffett has consistently ranked the purchase of his home as the third-best investment he ha
As a pandemic-inspired boom ends, entrepreneurs and giant corporations alike are counting on customers to keep accumulating more stuff than they can squeeze into their homes. | NVDA |
https://finnhub.io/api/news?id=6f484321ba4b934faa5c2b4312175943d6743f3796bf7cace47c5da26eed1ae6 | DWS Xtrackers Climate ETF becomes largest ETF launch in history with $2B | Looking for stock market analysis and research with proves results? Zacks.com offers in-depth financial research with over 30years of proven results. | 2023-04-06T01:56:00 | Seeking Alpha | This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.
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At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.26% per year. These returns cover a period from January 1, 1988 through July 3, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.
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https://finnhub.io/api/news?id=8c2fe7eafec8656aba7dda2d6345c591551d60d66b7898597101964754d91013 | Nvidia slips even as BofA maintains buy rating, notes `strong share gains` | Looking for stock market analysis and research with proves results? Zacks.com offers in-depth financial research with over 30years of proven results. | 2023-04-06T01:26:00 | Seeking Alpha | This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.
Copyright 2023 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.26% per year. These returns cover a period from January 1, 1988 through July 3, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.
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https://finnhub.io/api/news?id=40e992f1d953afb154d8d4eb28a7533ad618ca5156ef7f0369d66529b7c6b729 | Why Is Lumentum (LITE) Stock Down 14% Today? | Looking for stock market analysis and research with proves results? Zacks.com offers in-depth financial research with over 30years of proven results. | 2023-04-06T00:45:00 | InvestorPlace | This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.
Copyright 2023 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.26% per year. These returns cover a period from January 1, 1988 through July 3, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.
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https://finnhub.io/api/news?id=fc8c4e49e8eaf15fdb9e1ff21d70d8c21a7ca54f4625dca088659fa75a879425 | 7 Dividend-Paying Large-Cap Stocks to Buy in April | Looking for stock market analysis and research with proves results? Zacks.com offers in-depth financial research with over 30years of proven results. | 2023-04-05T22:38:00 | InvestorPlace | This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.
Copyright 2023 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.26% per year. These returns cover a period from January 1, 1988 through July 3, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.
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https://finnhub.io/api/news?id=a5b55459571c5923fda51d5afa41a315c2a49569037ede46b396af9983175564 | Micron Gives Chip Stocks a Boost | Looking for stock market analysis and research with proves results? Zacks.com offers in-depth financial research with over 30years of proven results. | 2023-04-05T20:25:00 | TipRanks | This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.
Copyright 2023 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.26% per year. These returns cover a period from January 1, 1988 through July 3, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.
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https://finnhub.io/api/news?id=232d0e00fc3d93dbd0bf67519f0c7017b7b8a0d1492452de7d8ed473c8905177 | Amazon prices Luna+ cloud gaming at just under $10/month | Looking for stock market analysis and research with proves results? Zacks.com offers in-depth financial research with over 30years of proven results. | 2023-04-05T19:52:00 | Seeking Alpha | This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.
Copyright 2023 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.26% per year. These returns cover a period from January 1, 1988 through July 3, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.
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https://finnhub.io/api/news?id=c26dc45e7740699b6bb85e747c785748349c9ca1e84c75196d392750db506252 | The Stock Market’s Rally Is Being Driven by a Few Big Stocks | The S&P 500 is up 7% this year, but the average stock is up barely 1%. Narrow rallies can be less sustainable. | 2023-04-05T19:45:00 | MarketWatch | The first three months of trading in 2023 have been a tale of the haves and the have-nots.
The S&P 500 is up 7% this year, but the average stock is up barely 1%. Narrow leadership tends to signify a shakier rally than one with a broader group of stocks participating. The good news for investors is that things appear to be improving after a tough March.
The market capitalization-weighted index’s overall rise is thanks to a handful of megacap companies at the very top: The 20 largest companies in the S&P 500 have added nearly $2 trillion in market cap this year, versus $170 billion for the remaining 480 stocks, notes Torsten Slok, chief economist at Apollo Global Management.
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That’s a combination of both big starting market values and big increases in price. Apple (ticker: AAPL) has climbed 26% this year, to a market-cap of $2.6 trillion. That has contributed 1.6% to the S&P 500 alone, according to Goldman Sachs data. Microsoft’s (MSFT) 19% rise and Nvidia’s (NVDA) 83% surge have each added more than 1%. In 2022, the same names dragged the S&P 500 down.
Those megacap stocks’ influences on the index dwarf the impact of the biggest losers this year. Charles Schwab (SCHW), down 37%, has subtracted just 0.15% from the S&P 500. First Republic Bank (FRC) is down 88% in 2023—weighing on the index by just 0.08%. Pfizer (PFE), down 20%, has cost the S&P 500 just 0.18% this year.
“Our view is that megacap tech has been a beneficiary of the selling in other sectors, but ultimately once that rotation was done, the indexes would be quite vulnerable,” wrote Jonathan Krinsky, chief market technician at BTIG, on Wednesday. “This dispersion is something that often occurs in the latter innings of market rallies.”
There’s less room for error—should the winds shift and Apple, Microsoft, and a handful of other stocks stumble, the S&P 500 is vulnerable too. It’s also a tougher environment for stock pickers, with fewer winners to choose from.
It isn’t all about individual stocks. The sharp year-to-date divide has to do with macro forces. Contributing to the S&P 500’s rise this year has been a sharp decline in bond yields, particularly over the past month of banking turmoil as investors lowered their expectations for additional Federal Reserve interest rate hikes. That has been felt most in growth-oriented stocks and sectors: the Nasdaq Composite index has added 15% in 2023 and the S&P 500 technology sector has gained 19%.
Meanwhile, banking-related and economically exposed sectors have fallen. It’s a recipe for a large divergence in sector performance that has only recently begun to narrow. About 47% of S&P 500 technology stocks were trading above their 50-day moving averages as of Wednesday’s close, versus 61% on Tuesday and compared with 43% of stocks in the overall index, according to data from Bespoke Investment Group. It isn’t just growth that has been up recently—defensive, bond-proxy sectors have also enjoyed a rally thanks to falling bond yields. Some 93% of S&P 500 utilities stocks and 68% of consumer staples were above their 50-day moving averages Wednesday.
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That compares with a brutal stretch until recently for shares of banks, credit-dependent real estate stocks, and cyclically sensitive sectors. Only 7% of REITs, 19% of financials, 22% of industrials, and 24% of materials stocks were above their 50-day moving averages at Wednesday’s close.
Still, that’s a broad improvement from two weeks ago, when just 18% of S&P 500 stocks were above their 50-day moving averages. Market breadth appears to have bottomed in mid-March, then improved late in the month and so far in April.
Energy stocks have joined the rally this week, following the announcement of an unexpected production cut by OPEC and its allies over the weekend. The S&P 500 energy sector is up 4% in three days, and the percentage of stocks in the sector above their 50-day moving averages has jumped to 74%, from 13%, according to Bespoke.
The 2023 rally remains anchored by the biggest stocks at the top of the market—a phenomenon that can’t last forever. Things are moving in the right direction, but investors will need to continue to see broader participation to gain greater confidence in the rally.
Write to Nicholas Jasinski at [email protected] | NVDA |
https://finnhub.io/api/news?id=0a4aef2533b5d4e38dd794e43bd96034d9555b5d745aec8d8d6ff5424ab5cdea | St. James Investment Company Value Investor's Q1 2023 Quarterly Letter | St. James Investment Company released its Q1 2023 value investor's quarterly letter recently. Click here to read the full fund letter. | 2023-04-05T17:15:00 | SeekingAlpha | St. James Investment Company Value Investor's Q1 2023 Quarterly Letter
Summary
- The St. James Investment Company is an independent, fee-only, SEC Registered Investment Advisory firm, providing customized portfolio management to individuals, retirement plans and private companies.
- Simplicity and patience can work wonders when investing.
- Thinly capitalized and highly speculative stocks are leading markets higher in percentage terms, but the familiar and richly valued technology behemoths continue the market’s heavy lifting.
- While preparing for market turns can help one improve the odds of successful investing, starting valuations remain critical to one’s long term success.
- While some attempt to win every lap of the race, one must always remember that to succeed at investing, one must finish the race.
"To do nothing at all is the most difficult thing in the world, the most difficult and the most intellectual." - Oscar Wilde
Investors normally maintain a natural urge to sell profitable investments. Platitudes such as "locking in profits" or "taking money off the table" reinforce this practical behavior. If one buys a stock that doubles, one's instinct is to quickly sell the stock - this behavior is reasonable, because an investor wishes to protect their winnings. This tendency, known as the "disposition effect," explains why investors sell their winners too early and hold losers too long. Or, as famed portfolio manager and author Peter Lynch often noted, "Selling your winners and holding your losers is like cutting the flowers and watering the weeds." This urge to sell is associated with another behavioral pattern - the need or desire to "do something." Inaction is hard when investing. In most endeavors, more activity leads to more output. By contrast, when investing, activity can detract value. As John Bogle, the founder of Vanguard, advised, "Don't do something, just stand there!"
At times, "taking profits" is a valid decision, such as when speculators are chasing the shares of profitless companies with questionable prospects sporting huge market capitalizations. However, the practice of "taking profits" because a stock reached a "target price" may be prudent at times but can also hinder the long-term accumulation of wealth. Case in point, Herb Wertheim, an optometrist in Florida, may be the greatest individual investor that no one knows. According to Forbes, Wertheim is a billionaire, but "his fortune comes not from some flash of entrepreneurial brilliance but from a lifetime of prudent buy-and-hold investing.[1]" Wertheim invested in the initial public offerings (IPO) of both Microsoft (MSFT, 1986) and Apple (AAPL, 1980) and still holds these stocks today. Wertheim's Microsoft position is now worth almost $400 million, while his 1.25 million shares of Apple are worth $820 million. Wertheim explains, "My goal is to buy and almost never sell."
Reviewing Wertheim's Fidelity statements in meeting with Forbes magazine, one could see positions worth hundreds of millions of dollars, purchased decades ago. A $1.5 billion position in Heico (HEI), an airplane-parts manufacturer, dates to 1992. There are dozens of other holdings, ranging from GE and Google (GOOG, GOOGL) , to BP and Bank of America (BAC). The common theme to Wertheim's investing is a preference for industry and technology companies and his testament to the power of compounding. Instead of concentrating on the metrics in financial statements, Wertheim reads patents and spends hours each week reviewing technical journals. "What's more important to me is, what is your intellectual capital to be able to grow?" He says that if you put your faith in a company's intellectual property, it matters little where the market goes-the product has lasting value.
While the investment acumen and discipline of Herb Wertheim is clearly an outlier, the compounding power of buying and holding the shares of good companies possessing sustainable competitive advantages remains powerful. But it's worth considering how many individuals truly possess the required level of patience to resist selling shares of Microsoft during its incredible growth in the 1990's followed by a decade of decline? At one point there was a consensus view that the personal computer was dead, and Microsoft faced a secular decline in relevance and market share. Today, Microsoft competes with Apple for the title of the world's most valuable publicly traded company. To paraphrase Howard Marks, sentiment reversed from "hopeless" to "flawless." Apple in the late 1990's faced an apparently hopeless situation as well. Twenty years later, following massive success, the consensus today is that Apple operates flawlessly as a business. Apple and Microsoft together now account for an incredible 13.3% of the S&P 500 index. A valid argument can be made that both companies trade at very expensive valuations, yet both companies sit at the pinnacle of business success.
Simplicity and patience can work wonders when investing. Companies navigate economic cycles in fits and starts while stock prices amplify the tailwinds and headwinds companies cyclically encounter. Business is not linear, and markets are not predictable. Still, one wonders if today's market participants have grown too comfortable with rich stock market valuations, and remain complacent about potential risks to their investment capital. Investor complacency often peaks before markets cycle lower. As distressed investor and prolific writer Howard Marks often notes, while the market is unpredictable, it is important to understand where one stands. In his words, "We never know where we're going, but hopefully we can figure out where we are, and understand what that implies for the odds." According to Marks, there are indicators of cycle peaks that include:[2]
"A high level of investor optimism…. investors who are spurred on by greed. Recent successes because what makes people more optimistic and greedier than having made money recently? Investors who are happy with their gains, or jealous of the gains of others - and jealousy is one of the strongest forces all around the world. Unwise risk tolerance, and eagerness to supply capital. Things like this denote a market which is elevated and a market which is against you. And when are these things seen? At market highs. When the cycle reaches its high, the probability is that these things have occurred and that the odds are against you."
A quick review of the most recent quarter's events paints an uncomfortable picture of where one stands in the current market. Thinly capitalized and highly speculative stocks are leading markets higher in percentage terms, but the familiar and richly valued technology behemoths continue the market's heavy lifting. Apple, Nvidia (NVDA), Microsoft, Facebook (META), Tesla (TSLA), Amazon (AMZN), Google, (AMD) and Salesforce.com (CRM) contributed to 160% of the S&P 500's gains this year. Apple, Nvidia and Microsoft alone accounted for 91% of the market's gains during the first quarter. In other words, the rest of the market lost value, as one might expect with rising interest rates, banks failing, and a slowing economy.
Trading in derivatives tied to the share price of Tesla, the electric car maker, resembles a drunken celebration. According to data from CBOE Global Markets, The Wall Street Journal reported that 7.2 million options contracts recently changed hands in a single trading session, surpassing the prior one-day record of 5.2 million and representing 13% of all U.S. options volume that day. Daily Tesla options volume now stands at an average of three million contracts, double the turnover seen a year ago and more than any security other than the SPDR S&P 500 exchange traded fund.
In late January, retailer Bed Bath & Beyond (BBBY), having already drawn down its credit-lines, received a default notice from its bank lenders. The following day, the company defaulted on interest payments on its three bond issues. According to Grant's Interest Rate Observer, Bed Bath & Beyond's senior unsecured 5.165% notes of 2044, which trade at a price of 5, imply a complete loss for equity investors. The following day, Bed Bath & Beyond's stock price rallied by 18.1%. Stranger still, less than a week later the company announced that it was issuing $225 million in convertible preferred shares and warrants to raise another $800 million-the stock rallied a further 92% that day.
AMC Entertainment Holdings (AMC), perhaps the poster child of 2021 retail speculation, still hemorrhages money. To replenish its capital, AMC submitted two shareholder proposals to sell more shares in 2022, but investors voted down both proposals. Not to be denied, the movie theater company's Chief Executive Officer Adam Aron, who personally sold $42.1 million worth of stock over the past two years, devised a new plan--merge the company's two equity classes back into one and then execute a 10-for-1 reverse stock split. According to the company's proxy statement, there are now 517.6 million shares of AMC stock outstanding as well as 929.8 million shares of AMC Preferred Equity units, known as "Apes" by the reddit retail army, for a combined total of 1.4 billion shares. Before Covid in early 2020, AMC had 104.2 million shares of common stock outstanding; meaning, Aron already diluted existing shareholders by a factor of seven in just three years. Under the newly approved proposal, Aron can further dilute shareholders by a factor of 3.8-there could soon be the equivalent of 26 times more AMC shares in circulation than before Covid. Despite this massive dilution of ownership, AMC's aggrieved shareholders responded by running up AMC shares by 23% for the quarter.
"Getting the odds on your side" is how Howard Marks believes one should think about investing. The good investors wait for opportunities where the odds are stacked in their favor. When market conditions are unfavorable and the odds are not on one's side, the risk to one's investment capital increases. When good opportunities are few, patience and positioning one's portfolio to exploit the inevitable cycle lows are the correct courses of action. "When there is nothing clever to do, it's a mistake to try to be clever," states Marks. Better yet, when the odds are not in one's favor, the best strategy is to patiently bide one's time and prepare. According to legendary commodity investor Jim Rogers, the best preparation is to read everything.[3]
"The best advice I ever got was on an airplane. It was in my early days on Wall Street. I was flying to Chicago, and I sat next to an older guy. Anyway, I remember him as being an old guy, which means he may have been forty. He told me to read everything. If you get interested in a company and you read the annual report, he said, you will have done more than 98% of the people on Wall Street. And if you read the footnotes in the annual report, you will have done more than 100% of the people on Wall Street. I realized right away that if I just literally read a company's annual report and the notes -- or better yet, two or three years of reports-that I would know much more than others."
While preparing for market turns can help one improve the odds of successful investing, starting valuations remain critical to one's long term success. After last year's declines in the financial markets, much debate today revolves around whether the stock market is "cheap enough." A company's price-to-earnings ratio (P/E) is a comparison of a stock's current price compared to the company's reported or projected earnings-per-share (EPS). For example, Tesla reported earnings of $3.62 per diluted share outstanding in 2022. Tesla's current stock price is $207; therefore, the company's P/E ratio is 57.2. By comparison, the S&P 500 index trades at a 23.8 P/E to 2022 reported earnings. A more comprehensive version of the P/E ratio of the S&P 500 index is to compare the market value of all publicly traded stocks against the country's economic output as measured by gross domestic product (GDP). This ratio dispenses with the underlying judgments and complexities about whether and how to adjust for companies that may have negative earnings. This ratio simply relates the market value that investors have assigned to the entirety of public corporate earnings. That valuation ratio is 155% today, higher than the market peaks of 2000 and 2008; a level not indicative that one has the odds on their side.
Into Thin Air by Jon Krakauer chronicles one of the deadliest years on Mount Everest, when twelve mountaineers died trying to scale the highest peak on earth. Michael Wilson, Chief US Equity Strategist at Morgan Stanley (MS), recently wrote an essay that compared traits of climbers who try to reach Everest's summit without proper regard for the risks with investors who fail to appreciate today's investment risks. While scaling Everest has some highly technical aspects, the most dangerous feature is its sheer size. The peak is 3,000 feet above the start of the "death zone" - the altitude at which oxygen pressure is insufficient to sustain human life for an extended period. Many fatalities in high-altitude mountaineering have been caused by the death zone, a perfect analogy according to Wilson, who sees today's valuations as an investment death zone. Whether by choice or out of necessity, investors have followed stock prices to dizzying heights once again as liquidity (bottled oxygen to mountain climbers) allows them to invest in areas where they know they should not go and cannot live very long.
Speculators climb in the pursuit of greed, assuming they will be able to descend without catastrophic consequences. But the oxygen eventually runs out and those who ignore the risks get hurt. With the turn of the new year, Wilson notes that investors decided to make another market summit attempt, this time taking an even more dangerous route with the most speculative stocks leading the way. The bear market rally that began in October from low expectations has morphed into a speculative frenzy based on multiple narratives, spurring investors on to speculative and dangerous regions. While the oxygen supply can last a bit longer, it can also trick investors into thinking they are safer than they really are, because eventually, valuations always matter.
|This chart illustrates the correlation between starting valuations and subsequent ten year stock market returns since 1950 using the S&P500 Shiller PE. Based on today's starting valuation point, one should expect an annualized compound investment return of only 3% to 5%... Slightly less than the yield on current U.S. Treasury Bills.|
Logically, the stock market responds to future expected profits derived from the long-term health of the economy. At times, we wonder if the framework that we collectively use to understand the economy is an illusion? One form of economic prosperity derives from savings, investment, labor, production and improving productivity. But increasingly, another form of economic prosperity depends on access to credit and abundant liquidity to grease the wheels of finance in order to inflate asset values. This inflated asset "wealth" then fuels a vast expansion of credit and consumption as asset prices soar in value, increasing the collateral available to borrow against and fund sharply higher levels of consumption. Rather than save and invest, today's economy hinges on borrowing and spending.
When the value of one's modest home soars from $300,000 to $800,000 in a few years, that $500,000 in gain was not the result of any improvement in utility. The house provides the same shelter it did when it was worth far less. The $500,000 gain is the result of access to low-cost credit and fifteen years of investors desperately searching for a yield greater than zero. Eventually, this expansion of "money" trickles into the real economy and the result is inflationary. Valuations increase but the underlying asset has not gained any utility. Once the cost of credit drops to near-zero, there is no remaining underwriting discipline: any loan for any investment can be justified by the subsequent increase in asset values. Since everything will rise in value, the optimal means to maximize gains incentives the leverage of one's balance sheet to gain control of as many assets as possible.
|Correlation is not causation repeat the statisticians… But when central banks increase the size of the balance sheets, the market moves higher.|
Central banks are eventually forced to raise interest rates and reduce credit expansion to prevent an inflationary spiral. Once credit is no longer expanding rapidly, the air leaks out of asset prices. Marginal borrowers can no longer roll over their debt-default become inevitable once markets tighten. Once valuations stop rising, the bubble's "prosperity" is revealed as illusory. This "wealth" was not generated by improvements in productivity or the production of more goods and services; it was based on soaring valuations driven by abundant credit and faith in central banks. Looking ahead, does one continue to invest under the same assumptions that have powered asset prices higher for the past twenty-five years? This very question is why legendary hedge fund manager Stanley Druckenmiller recently summarized today's investment dilemma, "I've been doing this for forty-five years and between the pandemic, the war and the crazy policy response in the United States and worldwide, this is the hardest environment I have ever encountered to try and have any confidence in a forecast six to twelve months ahead."
Not having incurred the scars from volatile periods in previous markets, each new generation of investors suffers from a collective form of involuntary amnesia. Despite reading about it at length, one will never understand the despair suffered by investors during the Depression in the 1930s, the shocking collapse of the "Nifty-Fifty" in 1973-74, the panic of Black Monday in 1987 or the confusion during the 2008 financial crisis. These moments, while at times costly to both one's investment capital and pride, can shape and influence investor behavior for decades to come. If one was fortunate enough to be young during such a period, then the lessons learned did not appear so expensive with the benefit of time. The worst outcome is the investor who experiences an historically volatile episode but learns nothing from it. The individual who makes mistakes is not a fool-it is the person who makes the same mistakes, time and time again.
Fifteen years removed from the 2008 crisis, Wall Street still operates today with a sense of amnesia. Investors must always prepare for the unexpected, including sudden, sharp swings in markets and the economy. Events that never happened before will undoubtedly occur. Whatever adverse scenario one contemplates, reality can be worse. The consideration of risk, the permanent destruction of one's investment capital, should always be of paramount concern. Fortunately, as Herb Wertheim demonstrated, the compounding effect of buying and holding the shares of good companies possessing sustainable competitive advantages remains as powerful as ever. To benefit from these investment virtues, one needs patience and time and a firm understanding of what one owns to tolerate the inherent uncertainty in markets. During Markel Corporation's most recent earnings call with shareholders, CEO Tom Gayner, summarized their mindset for dealing with uncertainty when allocating capital:
As a public company, we update you one quarter at a time; however, our North Star remains the dual time horizon of forever and right now. We believe that the combination of the long-term time horizon embodied by the concept of forever, coupled with the discipline and urgency of the right now provides a balance that serves us well. Quarters are like the rings inside the trunk of a mighty sequoia tree that give you a useful piece of information about one small chapter in the life of the tree, but any given ring is just one in a sequence of many.
While a sequoia accumulates rings over several millennia, investing for most is limited to a continuum of one's lifetime. While some attempt to win every lap of the race, one must always remember that to succeed at investing, one must finish the race. Conservative portfolio positioning enables one to maintain a long-term focus, while seeking new opportunities when others are distracted or even forced to sell. Risk is not necessarily inherent in an investment, but risk is always relative to the price paid. As Peter Lynch noted, "Just because the price goes down doesn't mean you're wrong. Just because the price goes up doesn't mean you're right." Logical and consistent processing of facts is what ultimately determines the right approach to investing.
With kind regards,
St. James Investment Company
| |
Footnotes
[1] Berg, Madeline. The Greatest Investor You've Never Heard Of: An Optometrist Who Beat the Odds to Become a Billionaire. Forbes, February 19, 2019.
[2] Navigating Market Cycles with Howard Marks. Real Vision Finance.
[3] O'Keefe, Brian. Best Advice I Ever Got. Fortune, September 6, 2009.
DISCLAIMER
Information contained herein has been obtained from sources believed reliable but is not necessarily complete, and accuracy is not guaranteed. Any securities mentioned in this issue are not to be construed as investment or trading recommendations specifically for you. You must consult your advisor for investment or trading advice. St. James Investment Company, and one or more of its affiliated persons, may have positions in the securities or sectors recommended in this newsletter, and may therefore have a conflict of interest in making the recommendation herein. Registration as an Investment Adviser does not imply a certain level of skill or training.
To our clients: please notify us if your financial situation, investment objectives, or risk tolerance changes. All clients receive a statement from their respective custodian on, at minimum, a quarterly basis. If you are not receiving statements from your custodian, please notify us. As a client of St. James, you may request a copy of our ADV Part 2A (“The Brochure”) and Form CRS. A copy of this material is also available on our website at www.stjic.com. Additionally, you may access publicly available information about St. James through the Investment Adviser Public Disclosure website located at: www.adviserinfo.sec.gov. If you have any questions, please contact us at: 214-484-7250 or [email protected].
Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.
Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.
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Comments (1) | NVDA |
https://finnhub.io/api/news?id=493ec7f5662a30e561805a0c4540b675a9323b2343bd0d79b709f939027c83cb | Dow Jones Rises But Leaders Tumble, Tesla Stock Triggers Sell Rule; What To Do Now | The Dow rose slightly Wednesday but the S&P 500 and Nasdaq fell as leaders sold off. Tesla triggered an automatic sell rule. Here's what to do. | 2023-04-05T14:14:47 | Yahoo | Dow Jones Rises But Leaders Tumble, Tesla Stock Triggers Sell Rule; What To Do Now
The Dow rose slightly Wednesday but the S&P 500 and Nasdaq fell as leaders sold off. Tesla triggered an automatic sell rule. Here's what to do.
The Dow rose slightly Wednesday but the S&P 500 and Nasdaq fell as leaders sold off. Tesla triggered an automatic sell rule. Here's what to do.
Mark Spitznagel and Nassim Taleb have been watching for black swans for decades. "We’ve never seen anything like this level of total debt and leverage in the system," he tells Fortune. "It's an experiment."
Warren Buffett is undeniably the most famous and influential investor in modern history, based on his extraordinary performance record. Not surprisingly, the investment portfolio of Berkshire Hathaway Inc. (BRK.A), the holding company employing the Oracle of Omaha as chairman and CEO, receives wide media attention and scrutiny, even though Buffett is no longer making every investment decision. Despite his unparalleled success, Buffett's investment model has long been transparent, straightforward, and consistent.
Stocks have blown past expectations for 2023 – but some analysts are bracing for a sell-off as the market approaches record highs.
The JPMorgan Equity Premium Income ETF’s (NYSEARCA:JEPI) combination of high yield and monthly payments has quickly made it one of the market’s most popular ETFs. Investors who like JEPI’s style now have another high-yield competitor to consider — the NEOS S&P 500 High Income ETF (BATS:SPYI), which also pays on a monthly basis and yields 10.7%. Let’s take a closer look at this intriguing new option for high-yield investors. What is SPYI ETF’s Strategy? Launched in August of 2022, SPYI is still a
Just because you retire doesn't mean you have to stop working. And when work is an option rather than a requirement, it's possible to select a low-stress job that multiplies fulfillment without adding anxiety - but still provides a bit … Continue reading → The post 12 Low-Stress Jobs You Can Do in Retirement appeared first on SmartAsset Blog.
Berkshire Hathaway historically reports its quarterly financial results on weekends, and CEO Warren Buffet has a simple reason why. Berkshire (ticker: BRK.A, BRK.B) reported second-quarter earnings Saturday morning. Many other public companies, however, release their earnings results during the trading week, either before the market opens or after the closing bell.
The market rally is at an infection point after notable losses. Here's what to do. Warren Buffett's Berkshire earnings rose.
Is there a point at which I should stop reinvesting stock dividends and invest the money or save the cash? -Anonymous Many financial experts recommend that you reinvest dividends most of the time – and I'm inclined to agree. The … Continue reading → The post Ask an Advisor: Should I Stop Reinvesting Dividends? appeared first on SmartAsset Blog.
There are many different approaches and strategies for retirement investing that might appeal to you. But how do you tell if a certain strategy works for your situation? When evaluating different approaches, consider how each strategy is put together and … Continue reading → The post Here's How Much to Keep in Stocks, Bonds and Cash in Retirement appeared first on SmartAsset Blog.
The week ahead will feature a crucial inflation report and earnings out of Disney, UPS, and Alibaba as second quarter earnings season winds down.
(Bloomberg) -- Dan Loeb is hardly the first Wall Street titan to lament how meme stock traders have made short selling a perilous endeavor. But that Loeb, who runs the hedge fund Third Point LLC, did so now is what’s interesting.Most Read from BloombergTexas Power Prices to Surge 800% on Sunday Amid Searing HeatNetanyahu Seeks to Change How Judges Are Named, Then Stop RevampChina Embassy Rips ‘Brutal’ Russia Border Incident in Rare MoveThe Most Dangerous Job for Lawyers Is Being on Trump’s Legal
AustralianSuper, one of the world’s largest pensions, halved its Apple stock investment and sold Microsoft stock, while buying shares of Tesla and Nvidia.
One in 6 asset and wealth management companies will be bought or shut down in the next five years, according to a PwC survey of asset managers and institutional investors.
Travel scams are on the rise. Don't be a victim.
Warren Buffett's Berkshire Hathaway operating profit rose by 10%. BRKB stock is just out of buy range.
VZ stock provides a dividend but a buyback has been shelved amid 5G wireless investments. When will revenue growth reaccelerate?
Will generative artificial intelligence boost Palantir stock in the commercial market amid slowing revenue growth for the company?
Retirement account withdrawals not only help you cover basic living expenses, but they also can fund the lifestyle you've always envisioned in your golden years. That money, however, can have unintended tax consequences. Required minimum distributions (RMDs) and other withdrawals … Continue reading → The post Social Security Taxes Can Hit You Hard in Retirement. Here's How to Lower Them appeared first on SmartAsset Blog.
Dubbed the Oracle of Omaha, Warren Buffett is renowned for his simple and frugal lifestyle. Despite being the sixth richest person globally, with a net worth estimated at $117.9 billion, Buffett continues to live in the same modest home in Omaha that he purchased in 1958 for just $31,500. Adjusted for inflation, that amount today would be approximately $328,990.80, a mere 0.000279% of his total net worth. Buffett has consistently ranked the purchase of his home as the third-best investment he ha
As a pandemic-inspired boom ends, entrepreneurs and giant corporations alike are counting on customers to keep accumulating more stuff than they can squeeze into their homes. | NVDA |
https://finnhub.io/api/news?id=0560af467b0d012e5d5f3aab60d9b0722d5dc745c3142faa5cc0eab305c7538e | Qualcomm, Nvidia spar for top spot in AI chip efficiency tests | Artificial intelligence chips from Qualcomm Inc beat Nvidia Corp in two out of three measures of power efficiency in a new set of test data published on Wednesday, while a Taiwanese startup bested both in one category. | 2023-04-05T10:52:44 | Reuters | Qualcomm, Nvidia spar for top spot in AI chip efficiency tests
April 5 (Reuters) - (This April 5 story has been corrected to clarify that Neuchips did not beat Qualcomm and Nvidia in one category of testing as it didn't compete in the categories previously described, and Qualcomm's results and rankings have been rectified in paragraphs 6-8)
Artificial intelligence chips from Qualcomm Inc (QCOM.O) beat Nvidia Corp (NVDA.O) in two out of three measures of power efficiency in a new set of test data published on Wednesday.
Nvidia dominates the market for training AI models with huge amounts of data. But after those AI models are trained, they are put to wider use in what is called "inference" by doing tasks like generating text responses to prompts and deciding whether an image contains a cat.
Analysts believe that the market for data center inference chips will grow quickly as businesses put AI technologies into their products, but companies such as Alphabet Inc's (GOOGL.O) Google are already exploring how to keep the lid on the extra costs that doing so will add.
One of those major costs is electricity, and Qualcomm has used its history designing chips for battery-powered devices such as smartphones to create a chip called the Cloud AI 100 that aims for parsimonious power consumption.
In testing data published on Wednesday by MLCommons, an engineering consortium that maintains testing benchmarks widely used in the AI chip industry, Qualcomm's AI 100 beat Nvidia's flagship H100 chip at classifying images, based on how many data center server queries each chip can carry out per watt.
Qualcomm's chips hit 227.4 server queries per watt versus 108.4 queries per watt for Nvidia.
Qualcomm also beat Nvidia at object detection with a score of 3.8 queries per watt versus Nvidia's 2.4 queries per watt. Object detection can be used in applications like analyzing footage from retail stores to see where shoppers go most often.
Nvidia, however, took the top spot in both absolute performance terms and power efficiency terms in a test of natural language processing, which is the AI technology most widely used in systems like chatbots. Nvidia hit 10.8 queries per watt, while Qualcomm ranked second at 8.9 queries per watt.
Our Standards: The Thomson Reuters Trust Principles. | NVDA |
https://finnhub.io/api/news?id=3dddeba449a185922cee95408ab24b06abd7cdfc494751bdd2999cd217e8d822 | NVIDIA Corp. stock falls Wednesday, underperforms market | Shares of NVIDIA Corp. slipped 2.08% to $268.81 Wednesday, on what proved to be an all-around mixed trading session for the stock market, with the Dow Jones... | 2023-04-05T10:13:00 | MarketWatch | Shares of NVIDIA Corp.
NVDA,
+0.37%
slipped 2.08% to $268.81 Wednesday, on what proved to be an all-around mixed trading session for the stock market, with the Dow Jones Industrial Average
DJIA,
-0.43%
rising 0.24% to 33,482.72 and the S&P 500 Index
SPX,
-0.53%
falling 0.25% to 4,090.38. This was the stock's second consecutive day of losses. NVIDIA Corp. closed $11.19 below its 52-week high ($280.00), which the company achieved on April 4th.
Trading volume (51.4 M) eclipsed its 50-day average volume of 50.8 M.
Editor's Note: This story was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones and FactSet. See our market data terms of use. | NVDA |
https://finnhub.io/api/news?id=228562f2b5769a309a3aa57de56989680e6a89720222eca0de370ec628362310 | NEW YORK MARKET CLOSE: Growth fears send Nasdaq lower for third day | Looking for stock market analysis and research with proves results? Zacks.com offers in-depth financial research with over 30years of proven results. | 2023-04-05T09:17:00 | Alliance News | This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.
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