Results for: Nvidia

Tony Genua, a seasoned portfolio manager with over four decades of experience, shares his insights on the US market and highlights his bullish stance. Emphasizing the role of innovation and macroeconomic shifts in shaping market leadership, Genua highlights the importance of identifying companies with strong R&D and the ability to adapt to changing economic conditions. He also discusses the potential impact of the US election, rising earnings, and the influx of funds from money market investments. Genua provides specific examples of companies he favors, including Nvidia for its dominance in AI chipsets, Amazon for its cloud computing prowess, Eli Lilly for its obesity drug and drug pipeline, and Cheniere Energy and Marathon for their contributions to cleaner fossil fuels and air travel, respectively.

The stock market experienced a downturn last week, with AI stocks taking a hit. Nvidia Corporation (NASDAQ: NVDA) dropped significantly, despite the absence of negative data points related to AI. The company’s Neutral investment thesis remains upheld, as the stock exhibited excessive growth during its rally to $974. Positive AI Data Points To clarify the sudden decline, it’s crucial to note that AI-related data points from last week were not negative, contrary to market interpretation. Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) projected strong growth rates of over 20% in 2024 due to high AI demand. While the foundry acknowledged a slowdown in overall chip demand, TSMC attributed this primarily to traditional server CPU chip demand, which favors chip production for Nvidia over Intel (INTC). Super Micro Computer (SMCI) announced its FQ3 ’24 earnings call without providing guidance updates. However, this does not necessarily indicate a negative signal for AI GPU demand, as the company has not consistently provided guidance updates in the past. Paying the Right Price Nvidia was previously identified as aggressively priced at over $600, leading to recommendations for investors to exit their positions. The stock has since surged to $974, indicating an irrational appetite for AI investments that is now fading. Nvidia’s forecasted sales for FY25 (2024) are $112 billion, projected to exceed $160 billion by FY27. While the company’s sales growth rates are expected to normalize, the FQ1 ’26 sales growth forecast is estimated to drop below 30%. Margins and Operating Expenses Nvidia faces the potential for margin compression in the future. The company’s FQ1 ’25 gross margins were projected at 76.3% to 77.0%, with limited quarterly operating expenses of $2.5 billion. Over time, Nvidia will likely need to invest more to maintain profitability. The operating expense base below 10% of revenues also appears unsustainable. During FY23, before the AI GPU chip sales surge, Nvidia spent nearly $7 billion on opex, which amounted to over 25% of revenues. If this trend continues, Nvidia’s opex will rise significantly. Takeaway Despite the recent market downturn, the AI boom is not ending. The market is taking profits on Nvidia, and further declines are possible during the digestion period. Investors are advised to let the stock slip further, potentially back to the $600 range, to mitigate the risk of inevitable margin pressures.

The Bitcoin (BTC-USD) halving event has passed, sparking renewed interest in blockchain technology and its potential to transform various industries. Savvy investors are exploring opportunities in companies leveraging blockchain technology to disrupt traditional business models. Here are seven blockchain stocks for investors to consider: Riot Platforms (RIOT), Nvidia (NVDA), Greenidge Generation (GREE), Coinbase (COIN), MicroStrategy (MSTR), Marathon Digital (MARA), and Bitdeer Technologies (BTDR). These companies offer competitive advantages, strategic growth plans, and potential for significant returns.

Recent meetings between Nvidia founder Jensen Huang and Perplexity AI CEO Aravind Srinivas have sparked speculation about a potential partnership between the two companies. Srinivas, who posted photos of his encounter with Huang, hinted at a collaboration, mentioning that Huang uses Perplexity’s search engine “almost every day” for research, alongside OpenAI’s ChatGPT. Notably, both Perplexity AI and OpenAI utilize Nvidia’s hardware, and Nvidia is also an investor in Perplexity AI, having led a recent $73.6 million fundraise.

Despite concerns about an air pocket in AI infrastructure development, JPMorgan analysts believe it’s premature to rotate out of artificial intelligence stocks. The recent decline in tech stock prices has led to a sell-off in AI-leveraged companies, but JPMorgan believes the long-term drivers of AI spending remain intact. The bank cautions against rotating into non-AI sectors based on hopes of a recovery, as current data and earnings reports do not yet support such a move.

Chinese research institutes have reportedly acquired high-end artificial intelligence chips from Nvidia despite US restrictions through resellers. These chips were embedded in server products made by Super Micro Computer and Dell Technologies and were purchased between November 2020 and February 2023. The US has banned Nvidia from selling these chips to China, but their sale and purchase are not illegal in China. Nvidia claims that the exports occurred before the restrictions were implemented. The US Commerce Department is monitoring the situation.

Reuters has uncovered evidence that advanced Nvidia chips, banned by the US for sale to China, have been reaching the country through third-party sellers. The chips, which are used in artificial intelligence applications, have been purchased by Chinese state entities and could support military applications.

Vietnam’s FPT will establish a $200 million AI factory utilizing Nvidia’s technology to bolster AI research and develop applications in fields such as generative AI and autonomous driving. The partnership aims to transform Vietnam into an AI hub.

Ten Chinese entities have obtained advanced Nvidia chips, despite the US ban on such technology. The chips were integrated into servers manufactured by Super Micro, Dell, and Gigabyte Technology.

Despite a US ban on selling advanced AI chips to China, Reuters reports that 10 Chinese government-linked entities have acquired Nvidia chips through resellers. The chips were embedded in server products from Super Micro Computer, Dell Technologies, and Gigabyte Technology. The report raises concerns about the effectiveness of US export restrictions and the potential for China to develop its own AI capabilities.