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Tag: NVIDIA

  • Nvidia will win the race to a $4 trillion market cap—but the long-term big tech battle might be different, experts say

    Nvidia will win the race to a $4 trillion market cap—but the long-term big tech battle might be different, experts say

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    A surprisingly resilient economy and profit-filled AI boom are driving the United States’ big tech giants toward a milestone that would have seemed impossible just a few decades ago. Nvidia, Microsoft, Apple have all surpassed the $3 trillion market capitalization mark, and Google and Amazon are following close behind in the $2 trillion range. 

    Combined, these five tech giants alone are now worth more than $14.5 trillion and make up roughly 32% of the S&P 500. For reference, in 2002, after the dot-com bubble burst, the total market capitalization of every U.S. stock was $11.1 trillion, according to Siblis Research data. Big tech’s performance has been particularly impressive this year, with Nvidia, for example, surging from a $2 trillion market cap to a $3 trillion market cap in under 100 days.

    That begs the question: which tech giant will hit the next big milestone, $4 trillion in market cap, first? Some bears argue that big tech companies’ record run of performance can’t continue forever, given their elevated valuations and the slowing economy, while the bulls believe this is just the beginning of a streak of AI-induced wins for big tech.

    “I think, a year from now, we [will] have three $4 trillion market cap companies: Nvidia, Apple, Microsoft,” Wedbush tech analyst Dan Ives told Fortune.

    He argued that many of his peers on Wall Street continue to underestimate the AI revolution and the health of the U.S. economy. “Unless you have a telescope, you can’t find a recession. And the Fed? Their next move is a cut not a hike. So, to me, all signs are bullish,” he said. “It’s 9 pm, and the party goes to 4 am…the haters will hate, continuing to say that this is a bubble.”

    Nvidia

    There are, of course, a wide range of views on where big tech companies are headed, but many experts are convinced that chip giant Nvidia will be the first to reach the $4 trillion market cap mark, driven by the seemingly unending thirst for its AI-enabling hardware. 

    “The first one to get there is likely to be the godfather of AI Jensen [Huang] and Nvidia, because they’re the only game in town—their GPUs are the new oil or gold in the tech world with no real competition,” Ives said.

    Nvidia stock has surged roughly 160% year to date and more than 3,000% over the past five years. That’s led some analysts to warn that the tech giant’s valuation has become stretched, and doesn’t account for rising competition in the semiconductor market.

    As David Trainer, founder and CEO of research firm New Constructs, told Fortune’s Shawn Tully last month: “Nvidia’s valuation is ridiculous. It’s facing the same curse as Tesla. But when Tesla got profitable, loads of competitors entered the EV space, cutting margins and slowing sales. The same will happen with Nvidia.”

    But Ives noted that even though Nvidia’s shares have surged, its revenues and earnings have followed suit. Nvidia raked in a record $26 billion in revenues and $14.8 billion in net income in the quarter that ended this April. In 2021, during the same quarter, the company had revenues of just $5.8 billion and net income of $1.9 billion. 

    Louis Navellier, founder and chairman of family office Navellier & Associates, also brushed off the competition argument, claiming Nvidia essentially has a “monopoly” on key AI chips which will lead to consistent sales and earnings growth for years to come. “And, you know, Jensen is kind of like the new Elon, he’s got kind of a cult status,” he said, adding that will continue to drive retail investors in the stock.

    Nvidia’s market capitalization as of July 5: $3.14 trillion

    Microsoft

    Microsoft’s booming cloud business and big investment into ChatGPT creator OpenAI have buoyed its shares over the past few years. But it’s the company’s diverse and sustainable revenue streams that will lead it to a $4 trillion market cap, according to Tim Pagliara, founder and chief investment officer of independent wealth management firm CapWealth.

    He said Nvidia may briefly touch the $4 trillion milestone first, due to what he called the current AI “mania,” but Microsoft will be the “more sustainable” $4 trillion company. 

    “They’re embracing AI, but they also have just a tremendous number of things in the pipeline. And I know as a small business owner, we just gladly keep paying them more per user per month for everything from Azure to some of the additional add ons that they have created for security and things like that,” he added, referencing Microsoft’s Azure cloud computing business.

    Pagliara thinks Microsoft’s big tech rivals have riskier business models as well. Apple is dependent on consumers buying into its new iPhone offerings every few years, and Nvidia is benefiting from a lack of competition in the near term, he said. Meanwhile, Microsoft has multiple avenues for consistent revenue growth from the Azure cloud business and Office 365 to Windows and Linkedin.

    Market cap: $3.48 trillion

    Apple

    When it comes to a longer-term outlook, Apple is high on many analysts’ lists because of its potential to use AI to get customers to upgrade their current phones and lure in more iPhone customers. It may not be the first to reach a $4 trillion market cap, but it will get there soon, these bulls say.

    “I think over the next two, three years, the largest market cap that we will see is Apple, because they have 2.2 billion iOS devices,” Ives predicted. “Consumer AI is going to go through the walls for Cupertino—they are only in the beginning of an AI-driven supercycle.”

    Louis Navellier was also optimistic about Apple’s future, but he said it will need a few “little breakthroughs” to get more customers to buy new iPhones.

    He pointed to new AI tools and the potential for folding iPhones as examples. “I don’t know if they’re going to announce that in September, but if they do, it will be a $2,500 phone, and it will sell like crazy and send that stock soaring.”

    Market cap: $3.46 trillion

    What about Alphabet and Amazon? 

    The Google parent’s market cap is currently $2.36 trillion, leaving it well shy of the $4 trillion mark. Analysts said Alphabet will be able to capitalize on the AI revolution, but its missteps with hallucinations have left it behind, and its cloud business isn’t performing as well as others. However, the search giant is taking talent from its peers in an attempt to catch up, recent reports have shown.

    It’s a similar story for Amazon, which just recently passed the $2 trillion milestone, and experts expect it will take time for share prices to nearly double. Wedbush’s Ives argued that Amazon’s cloud business, AWS, has also lost out to Microsoft. “​​I think there was some hubris in underestimating what Nadella and Microsoft are doing, and with the crosstown rivals and in that 2-0-6 area code, it’s been a bit of a gut punch for Amazon,” he said. 

    And when it comes to AI, Amazon is just “behind the eightball” too, according to the veteran tech analyst. However, Ives noted that CEO Andy Jassy has made changes to the company’s cloud business, and with a massive base of customers, Amazon should benefit more from AI moving forward. 

    To be sure, every tech giant on this list also faces risks. Antitrust regulations, cyber attacks, a slowing economy, and a reduction in AI spending should all be considered. But for now, the bulls remain bullish–and they think you should be too. 

    “The tech bears with their spreadsheets and valuations will stay in hibernation mode,” Ives said. “But when everyone meets for breakfast at 6 am after this AI party. The bulls [will have] won and the bears just sound smart.”

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    Will Daniel

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  • Better Artificial Intelligence Stock: Nvidia vs. SoundHound

    Better Artificial Intelligence Stock: Nvidia vs. SoundHound

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    Both SoundHound (NASDAQ: SOUN) and Nvidia (NASDAQ: NVDA) are direct beneficiaries of AI. One produces the chips necessary to make our AI future possible. The other developed its own proprietary AI platform that could power everything from cars to drive-through windows.

    If you want to bet on AI, it would make sense to buy stock in both companies. But some serious differences should guide your investment strategy.

    Want maximum growth potential?

    If you want maximum growth potential, the clear choice is SoundHound. The math isn’t complicated. SoundHound’s market cap is currently around $1.3 billion. Nvidia’s valuation, meanwhile, is closer to $3 trillion. Simply due to size, SoundHound stock has a much better chance of rising another 1,000% than Nvidia. For its stock to rise 10 times in value, Nvidia would need to add more value than Microsoft, Meta Platforms, Apple, and Amazon combined — and then some. SoundHound, meanwhile, would only need to add 0.3% of Nvidia’s current value.

    Put simply, SoundHound’s diminutive size gives it more potential upside than Nvidia. But will SoundHound actually be able to realize that potential upside? One factor works heavily in its favor. And that is SoundHound’s platform relevance to a large number of industries.

    At its core, the company’s technology enables sound and voice recognition, plus natural language understanding that allows responses via AI. Imagine ordering food through an AI-powered drive-through, chatting with your car about maintenance issues, or simply selecting a song. You might also want to discuss with your television which shows you should watch next. SoundHound actually has contracts with companies working on these very issues, with a total backlog valued at nearly $700 million — that’s up from around $330 million just a year ago.

    For all its potential, SoundHound stock isn’t priced for perfection. Shares trade at a lofty 19 times sales, but revenue growth rates have averaged roughly 60% per year. There’s a good chance double-digit growth rates will be sustained for another decade or more, a future that would make today’s premium valuation look reasonable in hindsight. Emerging tech companies like this typically show a lot of short-term volatility, but patient investors looking for maximum growth potential should like what they see.

    SOUN PS Ratio Chart

    SOUN PS Ratio Chart

    Go all-in on artificial intelligence

    Nvidia has very little to prove at this point. Over a very short time span, the company has become the largest AI stock in the world, with a huge percentage of its business dependent on growth in the AI industry.

    “Back in fiscal 2022 (which ended in January 2022), Nvidia generated 46% of its revenue from its gaming GPUs, 39% from its data center GPUs, and the rest from its professional visualization, auto, and OEM chips,” explains fellow Fool contributor Leo Sun. Oh, how quickly that breakdown changed. For the first fiscal quarter of 2025, Nvidia generated 87% of its revenue from data center chips and just 13% from everything else, gaming included.

    “It generated $22.6 billion in data center revenue in that single quarter compared to its total revenue of nearly $27 billion for all of fiscal 2023,” observes Sun. “That breakneck expansion transformed Nvidia from a more diversified GPU maker to an all-in play on AI chips.”

    This all-in approach certainly has its risks. Over the past five years, Nvidia’s valuation has gone from around 10 times sales to nearly 40 times sales. The company’s growth rates — revenue grew by 262% year over year last quarter (Q1 of FY 2025) — have more than justified the rise in its multiple. Yet there’s no denying that Nvidia’s stock price is now dependent on two things. First, a continued massive increase in AI spending. Second, its ability to maintain its dominant market lead.

    Over the decades, chip wars have produced many repeat winners and losers. Just check out the long-term price charts of AMD, Intel, and Nvidia. The winners and losers of today don’t necessarily stay that way forever, even if it takes years for the transition to occur. AMD’s MI300 Instinct GPUs are already beating Nvidia’s H100 GPUs on several benchmarks, as are Intel’s Gaudi 3 AI accelerators. Nvidia’s next-generation Blackwell chip is heading into the market as we speak, perhaps stemming the tide of rising rivals.

    Make no mistake: Nvidia is still a great investment for those bullish on AI. But if you’re looking for the best bang for your buck, don’t ignore lesser-known stocks like SoundHound.

    Should you invest $1,000 in Nvidia right now?

    Before you buy stock in Nvidia, consider this:

    The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

    Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $786,046!*

    Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.

    See the 10 stocks »

    *Stock Advisor returns as of July 2, 2024

    John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends Intel and recommends the following options: long January 2025 $45 calls on Intel, long January 2026 $395 calls on Microsoft, short August 2024 $35 calls on Intel, and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

    Better Artificial Intelligence Stock: Nvidia vs. SoundHound was originally published by The Motley Fool

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  • Why You Keep Dying In The Elden Ring DLC And More Of The Week’s Tips

    Why You Keep Dying In The Elden Ring DLC And More Of The Week’s Tips

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    Image: Bungie / Claire Jackson / Kotaku

    If there’s one thing we can all agree on about Destiny 2, it’s that it has a lot of menus, where you probably spend lots of time managing all sorts of little things, from bounties to excess inventory, quest tracking, and more. Honestly, I think I spend a quarter of my time with Destiny not shooting aliens or exploring the surface of Europa or Nessus but just trudging through unintuitive menus laden with tabs and subpages.
     
    But there’s a better way to play Destiny! All you need is an iOS or Android device. If you’re already a regular user of the Destiny companion app, then I don’t need to sing its praises to you, though it’s worth noting that with the Prismatic class introduced in Destiny 2’s latest expansion, The Final Shape, the app is arguably more useful than ever. For those who aren’t acquainted with how it dramatically improves and streamlines the experience of playing Bungie’s sci-fi shooter (especially on PlayStation and Xbox), let me outline a few excellent use cases for this more-than-handy tool.
     
    This guide will only cover app functions that let you manage bounties and inventory. Clan and fireteam management, as well as other social features, are outside the scope of this piece.
    – Claire Jackson Read More

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    Kotaku Staff

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  • Elon Musk Just Gave Super Micro Computer and Dell Investors a Reason to Cheer

    Elon Musk Just Gave Super Micro Computer and Dell Investors a Reason to Cheer

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    One of the biggest themes in the markets for the last two years has been artificial intelligence (AI).

    Naturally, famed entrepreneur Elon Musk has found himself at the center of the AI revolution — and he just gave investors a big reason to seriously consider both Dell Technologies (NYSE: DELL) and Super Micro Computer (NASDAQ: SMCI).

    Let’s explore how Musk is working with these AI leaders, and assess if these stocks are good buys right now.

    What did Elon Musk just say?

    In addition to running Tesla and social media platform X (formerly Twitter), Musk is also managing an AI start-up, called xAI.

    xAI is building a chatbot called Grok, and is aiming to compete with the likes of OpenAI. Musk is a co-founder of OpenAI but abandoned the project back in 2018. Since his departure, Musk has gotten into many publicized tiffs with OpenAI’s CEO, Sam Altman, over safety concerns and how AI should be used in society.

    In early June, Musk revealed that xAI will be utilizing a series of AI chips from Nvidia. The entrepreneur followed up this announcement with another exciting development.

    Namely, Musk took to X to tell investors and AI enthusiasts that xAI will be partnering with Dell and Supermicro to build its AI infrastructure such as server rack solutions and factory architecture.

    How Dell and Supermicro stand to benefit

    AI has many different components. One of the biggest bellwethers for AI at the moment are specialized chips known as graphics processing units (GPUs). These chips are used to train large language models and other computing functions to develop generative AI applications.

    Right now, Nvidia is the undisputed leader of AI chips — owning an estimated 80% share of the market.

    However, deploying chips into machine learning models and other use cases is only part of the broader equation. Companies such as Dell and Supermicro specialize in a different area within the chip realm.

    Both Dell and Supermicro are major players in AI infrastructure solutions. Essentially, both companies specialize in designing integrated systems architecture, server racks, and storage clusters for data centers.

    Considering xAI just raised $6 billion in funding back in May, Dell and Supermicro appear well positioned to benefit from AI tailwinds as xAI moves swiftly to catch up with the competition.

    Server racks.

    Image source: Getty Images.

    Dell, Supermicro, both, or neither?

    On the surface, owning different businesses across the semiconductor landscape might be a good idea. AI is still in its infancy, and there are many different applications among chip companies that are playing a role in the technology’s development.

    With that said, a close look at valuation should shed some light on investing in Dell and Supermicro in particular.

    DELL PE Ratio ChartDELL PE Ratio Chart

    DELL PE Ratio Chart

    The chart above illustrates the price-to-earnings (P/E) multiple for Dell and Supermicro over the last few years. While neither stock looks cheap, Dell is clearly trading at a noticeable discount to Supermicro. With that said, Supermicro’s premium is arguably warranted considering how fast the company is growing.

    Moreover, one of my biggest knocks against Supermicro has been that the company relies heavily on business from Nvidia — a dynamic that could hurt the company in the long run as more companies design competing chips.

    Now, with a nod of approval from Musk and xAI, I’m more optimistic about Supermicro’s prospects of branching out and earning meaningful business from new customers in the AI space.

    At the end of the day, allocating a portion of your AI holdings to both Dell and Supermicro could be a good idea for long-term investors. If I had to just choose one company, I think Dell is the better value compared to Supermicro based on its lower P/E and diversified business. Considering Supermicro is still relatively small, I think its valuation needs to continue normalizing before it looks like a bargain opportunity.

    Should you invest $1,000 in Super Micro Computer right now?

    Before you buy stock in Super Micro Computer, consider this:

    The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Super Micro Computer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

    Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $759,759!*

    Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.

    See the 10 stocks »

    *Stock Advisor returns as of June 24, 2024

    Adam Spatacco has positions in Nvidia and Tesla. The Motley Fool has positions in and recommends Nvidia and Tesla. The Motley Fool has a disclosure policy.

    Elon Musk Just Gave Super Micro Computer and Dell Investors a Reason to Cheer was originally published by The Motley Fool

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  • Oh, Hey, Halo Infinite Works On PCs With Nvidia Graphics Cards Again

    Oh, Hey, Halo Infinite Works On PCs With Nvidia Graphics Cards Again

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    Screenshot: 343 Industries / Claire Jackson / Kotaku

    It ain’t perfect, but damn do I love Halo Infinite. So naturally, I wasn’t all too thrilled when it suddenly kept crashing before it even reached the main menu and nothing seemed to fix it. Verifying the game’s file integrity, reinstalling it, restarting Windows, casting spells and rituals in the forest. Nothing! Turns out, the problem for me and many other players was that we were using Nvidia driver 555.99.

    Long-Lost Halo Demo Comes To Life

    Released on June 4, 2024, Nvidia Game Ready and Studio Driver 555.99 caused quite a bit of havoc for many fans of Halo Infinite as it rendered the game unplayable for most who had an Nvidia card and were timely with their driver updates. The workaround, of course, was to roll back to driver version 555.85. Halo developer 343 Industries acknowledged the issue early on. It released a statement via the official Halo Support X account stating that it was working with Nvidia to be sure the issue wouldn’t persist into the next driver update. Thankfully, driver version 556.12 was released on June 27 and lets Halo Infinite launch and run without issue.

    How to update your Nvidia driver to play Halo Infinite

    Odds are if you found your way to Nvidia driver 555.99, you probably know how to update your system to the latest version to get back into some Halo. If not, you can download the driver via Nvidia’s GeForce Experience app (which is how I prefer to manage my drivers), or by downloading the driver directly from Nvidia’s website. The latter is a handy way to locate past drivers should you run into any other issues.

    While rolling back to the previous driver was the solution to playing Halo Infinite on a PC with an Nvidia card, it’s usually preferable to keep your machine’s drivers as up-to-date as possible. But now that 556.12 fixed the Halo issue, I have a can of Monster energy, an aggressively frantic metal playlist, and endless rounds of Husky Raid with my name on them.

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    Claire Jackson

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  • Inside look: Nvidia’s AI factories | Bank Automation News

    Inside look: Nvidia’s AI factories | Bank Automation News

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    Nvidia is spearheading the AI industry’s growth with its latest data centers focused on developing and deploying models for the financial services industry.   AI factories are among a new product class that can help organizations use AI models at lower costs, higher efficiency rates and faster time to market, Malcolm deMayo, global vice president […]

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    Vaidik Trivedi

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  • Stock market today: Nasdaq jumps as Nvidia turns a corner

    Stock market today: Nasdaq jumps as Nvidia turns a corner

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    US stocks held broadly steady on Tuesday with AI chipmaker Nvidia (NVDA) eyeing a cautious comeback from a three-day skid as investors squared away their portfolios for the quarter’s end.

    The tech-heavy Nasdaq Composite (^IXIC) moved up roughly 0.5%, while the benchmark S&P 500 (^GSPC) rose 0.2%. The Dow Jones Industrial Average (^DJI) remained the only major index in the red, slipping about 0.2% after surging over 200 points to start the week.

    Stocks are looking brighter after the Nasdaq and S&P 500 took a bruising as Nvidia’s slide dented the tech rally that has powered gains this year. Investors are seen as taking profits scored in AI-linked names as a stellar quarter draws to a close, raising the question of whether recent losses have further to go.

    Shares in the AI darling rose over 2% in early trading, coming off a fall of over 6% on Monday.

    At the same time, the Dow looks to be finding its feet amid the shift from techs to value stocks, giving weight to the idea of a broadening in gains to other sectors.

    Elsewhere, the wait is on for Friday’s update to the Personal Consumption Expenditures (PCE) index, a favored inflation input for the Federal Reserve. Governor Michelle Bowman on Tuesday stressed she’s willing to hike interest rates if holding them steady fails to bring price pressures under control.

    On the economic data front, home prices set a new record high in April although annual growth slowed from the previous month, according to the S&P CoreLogic Case-Shiller report.

    Meanwhile, a reading on consumer confidence, due later this morning, will also be closely monitored by investors watching for cracks in previous resilience.

    Live4 updates

    • Opening bell: Nasdaq jumps, Dow slips

      US stocks opened mixed on Tuesday as AI chipmaker Nvidia (NVDA) eyed a cautious comeback from a three-day skid, rising more than 0.2% in early trading.

      The tech-heavy Nasdaq Composite (^IXIC) moved up roughly 0.5%, while the benchmark S&P 500 (^GSPC) rose 0.2%. The Dow Jones Industrial Average (^DJI) remained the only major index in the red, slipping about 0.2% after surging over 200 points to start the week.

    • Home prices hit new record in April

      Home prices set a new record high in April as the market remains tight. But annual growth slowed from the previous month.

      Home prices in the 20 largest US metros increased 7.2% in the last 12 months ending in April, lower than the 7.5% annual gain in the previous month, according to the S&P CoreLogic Case-Shiller. On a monthly basis, home prices across the 20 biggest cities increased 0.4% in April compared to the previous month.

      Low inventory, high mortgage rates, and record home prices have put the housing market out or reach for many would-be buyers. Economists at Bank of America believe that housing hurdles aren’t going away anytime soon.

      “The US housing market is stuck, and we are not convinced it will become unstuck anytime soon,” Michael Gapen, an economist at Bank of America, wrote in a note to clients on Monday.

      “After a surge in housing activity during the pandemic, it has since retreated and stabilized. We view the forces that have reduced affordability, created a lock-in effect for homeowners, and limited housing activity will remain in place through our forecast horizon,” the economist added.

      To this point, the investment bank believes that the pandemic housing shocks still have to pass through the market. Bank of America expects home prices to rise by about 4.5% this year and 5.0% next year, but then fall back to 0.5% in 2026.

    • One key market risk for 2025

      As if you need another money thing to worry about.

      In an exclusive interview with Yahoo Finance’s Jennifer Schonberger late Monday, US Treasury Secretary Janet Yellen reminded investors that the Trump tax cuts are set to expire in 2025.

      I can’t think of the last investor I talked to who expressed a concern about the expiration and how it may impact markets.

      But Yellen did her best job to bring this back into the light:

      “The signature policy from the Trump years was the Tax Cut and Jobs Act, and it promised an investment boom which really did not materialize. It gave huge tax breaks to corporations and to wealthy individuals. And it resulted in an enormous increase in the deficit and lowered tax revenues below historic norms. And I think it’s responsible for many of the problems that we face now with our fiscal trajectory. And so that would concern me to leave all of that in place.”

      How the markets will react in 2025 should the tax cuts not get extended due to deficit concerns is of course wildly unknown today. It shouldn’t be ignored in your investment planning process, however. Consider this alone: No tax cut extension would mean the top tax rate would return to 39.6% from 37%.

      That’s real money for real people.

      You can watch Jenn’s full interview with Treasury Secretary Janet Yellen below.

    • A helpful reminder on Nvidia

      While everyone appears to now be an Nvidia (NVDA) expert and is out there waxing poetic on the stock’s recent abrupt slide, I will not go that route this morning.

      Instead, I wanted to serve up some factual numbers with the help of BTIG’s technical analyst Jonathan Krinsky. They provide nice context on why Nvidia shares are taking a little pause.

      Here’s what Krinsky has to say, as if to remind the masses that stocks don’t go up every single day.

      “NVDA recently traded ~100% above its 200 day moving average. Since 1990, the widest spread that any U.S. company has ever traded above its 200 day moving average while it was the largest company was 80% by Cisco (CSCO) in March 2000, which marked its all-time high. In other words, NVDA is in a league of its own. It’s also notable that at last week’s peak, NVDA surpassed Microsoft (MSFT) briefly as the largest U.S. company. On March 24, 2000, CSCO surpassed MSFT briefly to also become the largest market cap company, and that marked the peak of both CSCO and the Nasdaq to the day. While we fully recognize the fundamentals are much different this time around, in the last five years, NVDA is +4,280% compared to CSCO’s +4,460% gain in the five years leading up to its peak. Over the last 18 months, NVDA is +827% which is actually double that of CSCO’s 18-month gain into ’00.”

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  • SMH ETF: Exposure to Nvidia and Other Top Chip Stocks

    SMH ETF: Exposure to Nvidia and Other Top Chip Stocks

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    It’s hard to look past Nvidia (NASDAQ:NVDA) these days, but it’s important to remember that there are also plenty of other great semiconductor (chip) stocks out there. The VanEck Semiconductor ETF (NASDAQ:SMH) enables investors to gain exposure to both Nvidia and other attractive opportunities within the semiconductor space.

    I’m bullish on SMH based on its strong portfolio of top semiconductor stocks, which are performing well and harbor significant long-term growth potential, as well as its incredible track record of generating strong returns for its holders. We’ve covered SMH previously; it has performed well since then and continues to look like a compelling opportunity for the long term.

    What Is the SMH ETF’s Strategy?

    SMH is the largest dedicated semiconductor ETF. According to sponsor VanEck, SMH invests in the “MVIS US Listed Semiconductor 25 Index (MVSMHTR), which is intended to track the overall performance of companies involved in semiconductor production and equipment.”

    VanEck highlights the fact that these are highly liquid stocks, industry leaders, and companies with global scale.

    Portfolio of Compelling Semiconductor Stocks 

    SMH owns 26 stocks, and its top 10 holdings make up 76.2% of the fund. Below, you’ll find an overview of SMH’s top 10 holdings using TipRanks’ holdings tool.

    While the fund isn’t particularly diversified, it gives investors substantial exposure to Nvidia (which has a large weighting of 24.6%) and other top semiconductor stocks, including Taiwan Semiconductor (NYSE:TSM), Broadcom (NASDAQ:AVGO), Qualcomm (NASDAQ:QCOM) and more.

    Were it not for Nvidia’s 209.6% gain over the past year, it’s likely that we’d be hearing more about Broadcom and its 111.8% gain. But the semiconductor and software infrastructure giant is now knocking on the door of becoming one of the world’s 10 largest companies and is worthy of plenty of attention on its own accord. The stock is a long-term winner that has generated an incredible total return of 3,168% over the past decade.

    It’s also an underrated dividend growth stock that has increased its dividend payout for 13 straight years and grown this payout at an impressive 17.5% CAGR over the past five years. Additionally, like Nvidia, Broadcom has a stock split of its own coming up.

    The company recently announced that it will execute a 10-for-1 stock split, which will go live on July 12th. While stock splits don’t necessarily make a fundamental difference, they can drive considerable interest and momentum in a stock, as we recently saw with Nvidia. They can also make the stock more accessible to smaller investors and retail investors.

    In addition to Broadcom, Taiwan Semiconductor is another one of the many attractive chip stocks among SMH’s top holdings.

    Taiwan Semiconductor is the world’s largest and most advanced chipmaker. Leading semiconductor companies like the aforementioned Nvidia, Broadcom, Qualcomm, and others go to Taiwan Semiconductor to manufacture the cutting-edge chips that they design and develop. This makes Taiwan Semiconductor an attractive picks-and-shovels play within the semiconductor space. The $786.1 billion company has seen its stock gain a cool 75.2% over the past year and hit a new all-time high.

    Next, Qualcomm, which is up 93.8% over the past year, has made a name for itself, as the company is developing cutting-edge semiconductors for everything from smartphones to automobiles and Internet of Things devices.

    Additional top 10 holdings, ASML (NASDAQ:ASML) and Lam Research (NASDAQ:LRCX), are among the few companies in the world providing the high-tech tools and equipment that are used in the semiconductor manufacturing process, making them crucial parts of the semiconductor value chain with wide moats (competitive advantages).

    One thing that Broadcom, Taiwan Semiconductor, and Qualcomm all have in common is that they all feature “Perfect 10” Smart Scores. The Smart Score is a proprietary quantitative stock scoring system created by TipRanks. It gives stocks a score from 1 to 10 based on eight market key factors. A score of 8 or above is equivalent to an Outperform rating. Seven of SMH’s top 10 holdings feature Outperform-equivalent Smart Scores of 8 or above.

    Additionally, SMH boasts an Outperform-equivalent ETF Smart Score of 8.

    Sensational Long-Term Performance 

    SMH owns a strong collection of highly-rated semiconductor stocks, and it has also generated excellent returns for its holders for a long time, giving it a track record that’s hard to beat.

    As of May 31, SMH has delivered an enviable annualized three-year return of 25.5%. This stellar return easily trumps that of the broader market. The Vanguard S&P 500 (NYSEARCA:VOO) returned 9.6% on an annualized basis over the same time frame. It even beats the strong performance of the tech-focused Technology Select Sector SPDR Fund (NYSEARCA:XLK), which delivered an annualized return of 15.9% over the same time span.

    Over a longer five-year timeframe, SMH has generated a scorching annualized return of 38.6%. This number again handily beats the broader market and XLK (VOO returned an annualized 15.8% over the same time frame, while XLK returned an annualized 25.2%). Note that these are both great returns, and SMH still beat them by a considerable margin.

    Even going back 10 years, SMH has produced a phenomenal annualized return of 27.8%, again beating both the broader market and the tech-focused XLK. VOO returned an annualized 12.7% over the same time frame, while XLK returned an annualized 20.3%.

    How High Is SMH’s Expense Ratio?

    SMH features a reasonable expense ratio of 0.35%, meaning that an investor in the fund will pay $35 on a $10,000 investment annually. This isn’t the lowest fee out there, as many broad market index funds charge lower fees. However, it is on par with its peers and reasonable enough for a sector-specific ETF, especially one that is performing as well as SMH.

    Is SMH Stock a Buy, According to Analysts?

    Turning to Wall Street, SMH earns a Moderate Buy consensus rating based on 21 Buys, five Holds, and zero Sell ratings assigned in the past three months. The average SMH stock price target of $285.18 implies 7.5% upside potential from current levels.

    Investor Takeaway 

    In conclusion, I’m bullish on SMH because it provides investors substantial exposure to Nvidia and top semiconductor stocks like Broadcom, Taiwan Semiconductor, and others. Plus, its phenomenal returns over the past three, five, and 10 years give it an unassailable track record.

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  • 6/19: The Daily Report with John Dickerson

    6/19: The Daily Report with John Dickerson

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    6/19: The Daily Report with John Dickerson – CBS News


    Watch CBS News



    Jeff Glor reports on severe weather threatening the south, what’s behind an app used to track migrants in the U.S., and what’s next for the markets and A.I. as Nvidia becomes the world’s most valuable company.

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  • 6/19: CBS Evening News

    6/19: CBS Evening News

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    6/19: CBS Evening News – CBS News


    Watch CBS News



    Raging New Mexico wildfires burn hundreds of structures; Opal Lee, the Grandmother of Juneteenth, leads annual Walk for Freedom

    Be the first to know

    Get browser notifications for breaking news, live events, and exclusive reporting.


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  • Nvidia

    Nvidia

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    Workers install cooling fans on a supercomputer that will train Tesla’s new Autopilot. The supercomputer will consist of 50 thousand Nvidia H100 accelerators. Such a data center requires approximately 75 megawatts of electricity. Located in a gigafactory in Texas.

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  • Employees Who Joined Nvidia 5 Years Ago Now Millionaires And Coasting In ‘Semi-Retirement’

    Employees Who Joined Nvidia 5 Years Ago Now Millionaires And Coasting In ‘Semi-Retirement’

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    Employees Who Joined Nvidia 5 Years Ago Now Millionaires And Coasting In ‘Semi-Retirement’

    Nvidia (NASDAQ:NVDA) has seen incredible growth in recent years. Since the beginning of 2024, the company’s stock has jumped 167%. Over the past five years, it has surged by an impressive 3,450%.

    Given these figures, it’s easy to see why many NVIDIA employees who joined the company five or more years ago are likely millionaires today. Additionally, many midlevel managers at NVIDIA reportedly make over $1 million a year, thanks to stock options and the overall appreciation of the company’s stock.

    However, being flush with cash now means that many established Nvidia executives are reportedly operating in “semiretirement” mode, which caught the attention of CEO Jensen Huang. They are financially comfortable enough that they don’t seem motivated to work as hard as they used to.

    Don’t Miss:

    In response to questions about ‘semiretired’ employees, Huang advised all workers to act as the ‘CEO’ of their own time and be responsible for determining their work ethic. Still, even Huang received a 60% pay boost last fiscal year, and his compensation reached $34.2 million as Nvidia’s market value is now $3.2 trillion.

    But not all Nvidia employees think they’re rich. As one Nvidia engineer earning $250,000 a year shared with Business Insider, employee salaries at the company are only impressive at first glance. He explained that although some Nvidia employees might be lucky enough to become millionaires, “a million doesn’t go too far.”

    This engineer, based on the West Coast and having joined Nvidia a few years ago, receives almost half of his base salary in the form of restricted stock units (RSUs) annually. He pointed out that from an outsider’s perspective, it might seem like all Nvidia employees are rolling in money, especially with the company’s stock skyrocketing.

    Trending: A startup that turns videos into games gets backing from Mark Cuban and opens a round for regular investors at $250.

    However, he clarified that not everyone receives a large number of RSUs as there’s a limit on how many stock units employees can get. Even the top performers are capped at receiving 50% of their base salary in stock each year.

    “You will end up cashing your stocks to meet your annual obligations in terms of personal taxes, property taxes, and any other expenses you will have,” he said.

    As former Tesla director of AI Andrej Karpathy recently pointed out, “Most people don’t HODL, and the government takes half.” In other words, many Nvidia and Tesla employees could have been millionaires if they hadn’t sold their company stock when they immediately could. On the other hand, he added that long-term holders are likely awaiting Tesla to achieve fully autonomous driving with its FSD software before they sell at a premium.

    Keep Reading:

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    This article Employees Who Joined Nvidia 5 Years Ago Now Millionaires And Coasting In ‘Semi-Retirement’ originally appeared on Benzinga.com

    © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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  • Nvidia tops Microsoft as the most valuable public company

    Nvidia tops Microsoft as the most valuable public company

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    Nvidia on Tuesday vaulted past Microsoft to become the most valuable publicly listed company in the world, highlighting its place at the forefront of Big Tech.

    Nvidia’s stock price rose nearly $5, or 3.7%, to $135.77, valuing the AI chip maker at $3.33 trillion, compared with $3.31 trillion for Microsoft and $3.29 trillion for Apple, which boasted the largest market capitalization until being surpassed by Microsoft earlier this year. A year ago, Nvidia’s market capitalization had just crossed the $1 trillion threshold. 

    The company’s stock, which has shot up more than 174% this year, was trading at more than $1,200 earlier this month until Nvidia completed a 10-for-1 stock split on June 7 in order to make the shares more affordable. 

    The ascent of Microsoft and Apple harken back to previous technologies, but Nvdia’s startling rise in recent years has been powered by surging demand for its chips, which are helping to power massive corporate spending on all things AI, and its data center business. 


    How the world can prepare for AI technology

    04:35

    Nvidia, which as of 2020 had annual revenue of $11 billion, now takes in more than twice that amount in a single quarter, while its profits have soared. The company’s leather-jacketed founder and CEO, Jensen Huang, is feted as a visionary for a new era of innovation driven by generative AI tools like ChatGPT.

    Nvidia is also a leader in graphics processing hardware, cloud services and other technologies for high-performance computing, while expanding into other emerging sectors such as robotics and autonomous driving. 

    The company’s achievement helped drive the S&P 500 to a new record, as investors pile into companies like Nvidia that stand to benefit from the growth of AI.

    “We were kind of waiting for this moment, actually, for quite some time,” Angelo Zino of financial intelligence firm CFRA told AFP.

    “The semiconductor industry is now the biggest sub-industry in the S&P 500,” he added.

    —The AFP contributed to this report.

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  • 2 Artificial Intelligence (AI) Companies That Could Follow Nvidia’s Lead and Split Their Stock

    2 Artificial Intelligence (AI) Companies That Could Follow Nvidia’s Lead and Split Their Stock

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    Stock splits generate a lot of buzz in the investing world, especially among the amateur crowd. You probably already know that a split doesn’t affect the company’s underlying value — if you have one share worth $100 and the company executes a 10-for-1 split, you would have 10 shares worth $10 each for the same $100 value.

    However, there are some advantages to shrinking per-share prices. For example, it’s easier for smaller investors to accumulate a position. Let’s say you put $300 into an account monthly; it’s easier to accumulate a position in a stock selling for $100 than $2,000. The announcements also draw attention to the company, which is potentially of help.

    Nvidia is the latest big tech company to announce a split (its second in the past three years). The stock split 10-for-1 last week after an incredible run over the previous few years, as shown below. But Nvidia isn’t the only company with a swelling stock price. The artificial intelligence (AI) boom sent several other stocks to all-time highs.

    Could one of these below be next to split their stock?

    Super Micro Computer

    Let’s look first at Super Micro Computer (NASDAQ: SMCI), which trades above $750 per share. This is well below its 52-week high of $1,229 but well above the 52-week low price of $213. Supermicro (as its known) is a nuts-and-bolts play in the AI sector, as its server, storage, and networking hardware are critical to data centers, edge computing, and more.

    The intense customer demand, primarily driven by AI, caused revenue and operating income to skyrocket recently, as shown below.

    SMCI Revenue (TTM) Chart

    SMCI Revenue (TTM) Chart

    The company’s latest quarter saw 200% year-over-year sales growth to $3.9 billion, and Supermicro expects intense growth to continue next quarter with a forecast of $5.1 billion to $5.5 billion. The great thing about this sales growth is that Supermicro is doing it profitably, as you can see by the rising operating income in the chart above. Data center growth is a tailwind that should last for years (check out this article for details).

    If the stock price stays high, the company could move to split the stock — potentially soon.

    ServiceNow

    Companies are turning to automation like never before. Automating tasks is critical to efficiency, which is paramount in the hyper-competitive business world. With the Now Platform provided by ServiceNow (NYSE: NOW), customers get virtual customer service agents, process automation, and AI-based issue detection, routing, and problem-solving solutions.

    ServiceNow has an expanding customer base of over 8,100, including 85% of the Fortune 500. This includes nearly 2,000 large customers that spend an average of $4.6 million each with ServiceNow annually. The company also boasts a 98% renewal rate. Like Supermicro, ServiceNow’s sales and operating profits are soaring, as shown below.

    NOW Revenue (TTM) ChartNOW Revenue (TTM) Chart

    NOW Revenue (TTM) Chart

    The $9.5 billion in trailing-12-month sales above include $2.6 billion in the first quarter, a 24% increase over the prior year. ServiceNow’s stock price has followed suit and trades near $700 per share. If the stock remains elevated, ServiceNow could follow other tech companies and consider a split.

    In the grand scheme of the stock market, stock splits aren’t very consequential. They best serve investors by keeping most stocks trading within the same relative range. It would complicate things if all companies did what Berkshire Hathaway did; its stock trades for over $600,000 per share after decades of growth without splitting (although investors can still buy the Class B shares much more cheaply).

    Still, stock splits garner attention, open the market up to smaller investors, and create fun topics of conversation. Nvidia is the latest titan to split; more could soon follow.

    Should you invest $1,000 in Super Micro Computer right now?

    Before you buy stock in Super Micro Computer, consider this:

    The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Super Micro Computer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

    Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $740,886!*

    Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.

    See the 10 stocks »

    *Stock Advisor returns as of June 10, 2024

    Bradley Guichard has positions in Nvidia. The Motley Fool has positions in and recommends Berkshire Hathaway, Nvidia, and ServiceNow. The Motley Fool has a disclosure policy.

    2 Artificial Intelligence (AI) Companies That Could Follow Nvidia’s Lead and Split Their Stock was originally published by The Motley Fool

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  • TikTok’s AI efforts reportedly exploit loopholes to use premium Nvidia chips

    TikTok’s AI efforts reportedly exploit loopholes to use premium Nvidia chips

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    The US has banned companies like Nvidia from selling their most advanced AI chips to China since 2022. But if loopholes exist, profit-hungry corporations will find and exploit them. The Information published a bombshell report on Thursday detailing how Oracle allows TikTok owner ByteDance to rent Nvidia’s most advanced chips to train AI models on US soil.

    ByteDance, which many US lawmakers believe has direct ties to the Chinese government, is reportedly renting US-based servers containing Nvidia’s coveted H100 chips from US cloud computing company Oracle to train AI models. The practice, which runs against the spirit of the US government’s chip regulations, is technically allowed because Oracle is merely renting out the chips on American soil, not selling them to companies in China.

    The US government has cracked down on exporting the chips to China as an extension of the tensions between the two nations. The Biden Administration fears the nation could use advanced AI for military or surveillance purposes or to gain an economic upper hand. The US government passed bipartisan legislation in April that will force ByteDance to either sell its US operations or face a ban. But ByteDance still has until early next year to close a deal, and it’s suing the US government, which could delay enforcement.

    Although ByteDance is training its models in the US, “it could be difficult to stop them from sending the models they produced back to their headquarters in China,” according to US-based cloud providers and a former Nvidia employee who spoke to The Information. Quite the loophole, indeed.

    ByteDance’s Project Texas initiative, which the company claims siloes off TikTok’s US operations from its Chinese leadership to allay US fears, is at the heart of the arrangement. However, former ByteDance employees have described Project Texas as “largely cosmetic,” as they claim the company’s US wing regularly works closely with its Beijing-based leadership.

    ByteDance isn’t the only Chinese company looking to game the rules. The Information says Alibaba and Tencent are discussing similar arrangements to gain access to the sought-after chips. Those deals could be harder to squash because they have their own US-based data centers and wouldn’t have to rent servers from American companies.

    A building at Oracle headquarters with the company's logo. Dusky blue sky.

    US cloud computing company Oracle reportedly enables ByteDance’s training of AI models in the US. (Oracle)

    Not every company has been as willing as Oracle to skirt the law’s intent. “Two small American cloud providers” reportedly turned down offers to rent servers with Nvidia’s H100 chips to ByteDance and China Telecom because “they seemed to go against the spirit of U.S. chip restrictions.” However, Oracle, cofounded by American businessman Larry Ellison and run by current CEO Safra Catz, apparently found the opportunity for profit through technically legal workarounds too tempting to pass up.

    The US Commerce Department, the bureau that could close the loophole, may already be aware of the practices. Earlier this year, the department proposed a rule that would require US cloud providers to verify foreign customers’ identities and notify the US if any of them were training AI models that “could be used in malicious cyber-enabled activity.” However, the Commerce Department recently said most cloud providers disapproved of the proposal, claiming “the burden of additional requirements might outweigh the intended benefit.” In the meantime, the proposed rule, which could theoretically plug the loophole, remains in limbo.

    But even if the US manages to shut down that exploit, The Information says it wouldn’t cover Chinese cloud providers like Tencent and Alibaba from buying Nvidia’s chips and using them to train AI models in their own US-based data centers. The Commerce Department will have its hands full figuring this one out as business and defense interests wrestle for control.

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    Will Shanklin

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  • Analysis-Nvidia’s stunning gains increasingly power Wall Street’s record run

    Analysis-Nvidia’s stunning gains increasingly power Wall Street’s record run

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    By Lewis Krauskopf

    NEW YORK (Reuters) – A rally that has propelled U.S. equities to record highs increasingly rests on red-hot chipmaker Nvidia and a handful of other giant stocks, reviving concerns that the market’s performance has become tied to a cluster of companies.

    About 60% of the S&P 500’s total return of more than 12% for the year has been driven by five companies whose shares have some of the heaviest weightings in the index: Nvidia, Microsoft, Meta Platforms, Alphabet and Amazon.com, data from S&P Dow Jones Indices showed.

    Nvidia – which on Wednesday became the world’s second-most valuable company following a 147% run this year – has alone accounted for about a third of the index’s gain.

    As the companies’ share prices have rallied, their weightings in the S&P 500 have grown, giving them more sway over the broader index. The top four stocks – Microsoft, Apple, Nvidia and Alphabet – accounted for nearly 24% of the S&P 500 at the end of May, the biggest collective weight for four stocks in 60 years, according to Bianco Research.

    Many investors believe the companies’ market heft is deserved, given their robust earnings, dominant competitive positions and expectation they will capitalize on advances in the burgeoning artificial-intelligence field. But some are concerned the concentration of gains in a handful of powerhouses could threaten indexes if some of the big names start to wobble.

    “If these names stop performing well … and we don’t see the rest of the market providing that support, that could potentially be a source of vulnerability,” said Angelo Kourkafas, senior investment strategist at Edward Jones.

    A look at the ten largest stocks in the S&P 500, meanwhile, shows their weighting ballooned to 34.1% at the end of May, the highest-ever month-end weight for the index’s top ten, said Howard Silverblatt, senior index analyst at S&P Dow Jones Indices.

    Concerns over market concentration have arisen repeatedly in recent years. The S&P 500’s 24% gain in 2023 – when recession worries attracted investors to larger companies that are less exposed to the economy’s fluctuations – was propelled by eye-popping increases from a group of megacap tech and growth stocks dubbed the “Magnificent Seven.” While those stocks soared, large swaths of the market remained tepid, even though a recession did not come to pass.

    Signs of broadening emerged in the first quarter of 2024, when the financials, energy and industrials sectors all outperformed the S&P 500. Those groups have declined in the second quarter, however, even as the broad index has pushed higher.

    The equal-weight S&P 500 – a proxy for the average stock in the index – has pared earlier gains and is up just 4.5% this year, compared with a 12% gain for the S&P 500.

    “We were all excited about the broadening out of the recovery,” said Jack Manley, global market strategist at J.P. Morgan Asset Management. “It appears to have stalled out, at least in the first half or so of the year.”

    Analysts cite a number of reasons for the market’s narrowing, including first-quarter earnings dominance from megacap tech companies and enthusiasm for companies benefiting from AI. Nascent worries over an economic downshift – reflected in recent data such as a weaker U.S. manufacturing report – could be another factor.

    Meanwhile, Nvidia has kept ascending. Fueled by its position as the dominant AI chipmaker, Nvidia’s market value on Wednesday surpassed $3 trillion as the company moved ahead of Apple in market capitalization, trailing only Microsoft.

    The stock has gained 29% since its blockbuster earnings report on May 22, while the S&P 500 is up 0.9% in that time. “Nvidia itself was supporting the tape,” said Michael O’Rourke, chief market strategist at JonesTrading. “That’s a risk because if a correction emerges in that name … you’re going to feel it in the market.”

    Some investors believe the concentration simply reflects the companies’ economic strength and is not in itself a cause for alarm.

    The megacaps “are outperforming because the results and outlook are strong,” said Peter Tuz, president of Chase Investment Counsel, although he added that gains from a wider group of stocks are often preferable as this reflects broader economic strength.

    Others are optimistic the market will broaden again in coming months, helped by improving earnings from the rest of the S&P 500.

    Magnificent Seven earnings are expected to rise about 27% in 2024, against a 7.4% increase for the S&P 500 excluding those seven, with the gap shrinking as the year goes on, according to Tajinder Dhillon, senior research analyst at LSEG.

    “That earnings outperformance gap will start to narrow,” Edward Jones’ Kourkafas said. “Investors shouldn’t give up on that theme of broadening leadership this year.”

    (Reporting by Lewis Krauskopf in New York; Editing by Ira Iosebashvili and Matthew Lewis)

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  • Mastercard, bunq team up for open banking, AI | Bank Automation News

    Mastercard, bunq team up for open banking, AI | Bank Automation News

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    Card giant Mastercard and digital bank bunq are teaming up on open banking and AI, the companies announced this week at Money2020 in Amsterdam.   The partnership breaks down “how open banking is helping to provide the next generation of financial insights to their users,” Bart Willaert, executive vice president of open banking international markets at […]

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    Vaidik Trivedi

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  • Nvidia’s Jensen Huang and AMD’s Lisa Su Unveil Competing A.I. Chips at Computex 2024

    Nvidia’s Jensen Huang and AMD’s Lisa Su Unveil Competing A.I. Chips at Computex 2024

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    Both Lisa Su and Jensen Huang spoke at Computex 2024 in Taipei this week. Photos by I-HWA CHENG/AFP via Getty Images and SAM YEH/AFP via Getty Images

    Jensen Huang and Lisa Su have a lot in common. In addition to their respective positions as CEOs of chipmakers Nvidia (NVDA) and AMD (AMD), the two are both first-generation Americans hailing from the southern Taiwanese city of Tainan and are even distant cousins. As industry leaders in semiconductor manufacturing, they have also in recent years become key players amid the artificial intelligence (A.I.) boom. Huang and Su laid out their company roadmaps for the next generations of A.I. chips while taking the stage at Computex 2024, an annual tech trade show held in Taipei, Taiwan. Nvidia and AMD made a name for themselves with graphics processing units (GPUs) powering data centers that run generative A.I. models like OpenAI’s GPT and Google’s Gemini.

    Yesterday (June 2), before the conference officially kicked off, Huang announced a new A.I. chip platform called “Rubin,” expected to roll out in 2026. The announcement came less than three months after Nvidia unveiled its next-generation A.I. chip Blackwell, which has yet to hit the market. “I’m not sure whether I’m going to regret this or not. We have code names in our company and we try to keep them very secret—oftentimes most of our employees don’t even know,” Huang said. Rubin is named after the U.S. astronomer Vera Rubin.

    Both Blackwell and Rubin are in full development, said Huang, who noted they will be produced on a “one-year rhythm.” Blackwell will be made available later this year alongside the Blackwell Ultra in 2025 and the Rubin Ultra in 2027.

    “The pace of product releases from Nvidia is jaw-dropping, not just because the products are so incredible but also because they’re launching or announcing new products every six months when it used to be that the standard was 12 to 18 months,” Cory Johnson, chief market strategist at Futurum Group, told Observer. “Everyone else is playing catch-up, including AMD.”

    How AMD plans to catch up with Nvidia

    Huang gave his presentation solo, joined only by a group of robots as he discussed his vision for “physical A.I.” as the next wave of the technology—one that will see A.I.-powered robots able to work among humans. During her keynote today, Su brought out a series of AMD partners including Microsoft Windows chief Pavan Davuluri and HP CEO Enrique Lores before she divulged details on AMD’s A.I. chip timeline.

    Like Nvidia, AMD plans to develop new A.I. processors on an “annual cadence.” Following the launch of MI300X last year, the company in the fourth quarter of 2024 will make available its successor MI325X, which Su described as faster and offering more memory. This will be followed by the MI350 in 2025 and MI400 series in 2026. “It’s just so clear that the demand for A.I. is accelerating so much going forward,” said Su. “We’re really just at the beginning of a decade-long megacycle for A.I.”

    Nvidia, which accounts for around 70 percent of A.I. semiconductor sales, has a market capitalization of $2.8 trillion, while AMD’s measures at around $264 billion. Nvidia’s success has made Huang the world’s 14th wealthiest person with an estimated net worth of $99.8 billion. Su, meanwhile, has for five consecutive years been ranked the highest-paid female CEO in the U.S.

    Their recent announcements indicate a turning point in the tech industry, according to Johnson. “The pace of innovation is faster, and specifically the pace of product releases,” he said, adding that the developments are all the more impressive coming from Huang and Su. “It’s a pretty amazing thing, this day in the history of the world, to look up and see two Americans who were born in Taiwan leading innovation, really changing the world—and back in Taiwan talking about it.”

    Nvidia’s Jensen Huang and AMD’s Lisa Su Unveil Competing A.I. Chips at Computex 2024

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    Alexandra Tremayne-Pengelly

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  • Stock market today: Nasdaq leads stocks higher while GameStop skyrockets

    Stock market today: Nasdaq leads stocks higher while GameStop skyrockets

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    The tech-heavy Nasdaq Composite (^IXIC) and benchmark S&P 500 (^GSPC) rose on Monday, with US stocks eyeing an upbeat start to June as hopes for rate cuts revive and the meme-stock mania roars back.

    The Nasdaq and S&P rose about 0.8% and 0.4%, respectively, as Nvidia (NVDA) shares popped on the heels of an AI chip update. The Dow Jones Industrial Average (^DJI) hovered around the flatline.

    A surge in GameStop (GME) shares grabbed the spotlight, firing up speculation again of a return to a 2021-style meme rally. The stock skyrocketed over 100% at one point in early trading after a Reddit post apparently by Keith Gill — AKA “Roaring Kitty” — showed a big bet by the influential trader. Fellow meme darling AMC’s (AMC) shares shot up as much as 27% alongside the move.

    Shares of GME, which were briefly halted for volatility, pared gains to about 50% shortly after the opening bell.

    Overall, stocks are on track to build on their strong performance in May, which saw all three major gauges break records during the month. The mood has turned more positive after PCE data gave hope that inflation has turned a corner, prompting optimism that the Federal Reserve will look more kindly on a cut to borrowing costs.

    Read more: How does the labor market affect inflation?

    Given that, the May jobs report and other labor prints later this week will test investor sentiment on the Fed’s path. Traders have stepped up bets on a Fed cut in September compared with a week ago, per the CME FedWatch tool.

    Meanwhile, gains for Nvidia at a comeback for the AI enthusiasm that has lifted techs. Shares rose about 4% shortly after the open after the chipmaker unveiled a new AI platform and promised to accelerate the pace of model upgrades. Rival AMD’s (AMD) stock also tipped higher alongside the release of its own new AI line-up and development plans.

    Live7 updates

    • ISM report shows further contracting in manufacturing activity

      Fresh data out Monday showed a mixed reading on activity in the manufacturing sector in May.

      The Institute for Supply Management’s manufacturing PMI indicated the manufacturing sector moved further into contraction in May, while a measure from S&P Global showed manufacturing activity increased more than initially thought in May.

      The ISM’s manufacturing PMI registered a reading of 48.7 in May, down from a reading of 49.2 and lower than the 49.5 economists expected, according to Bloomberg data.

      “US manufacturing activity continued in contraction after growing in March, the first expansion for the sector since September 2022,” Timothy Fiore, chair of the ISM’s manufacturing business survey committee, said in the company’s release. “Demand was soft again, output was stable, and inputs stayed accommodative.”

      Fiore added: “Demand remains elusive as companies demonstrate an unwillingness to invest due to current monetary policy and other conditions.”

      S&P Global’s own manufacturing PMI reading out Monday showed US manufacturing activity hit a reading of 51.3, up from a prior reading of 50.9 while new orders in the sector returned to growth.

    • Nasdaq, S&P 500 rise at the open

      Markets opened mostly higher on Monday to kick off the first trading day of June.

      The tech-heavy Nasdaq Composite (^IXIC) and benchmark S&P 500 (^GSPC) rose about 0.8% and 0.4%, respectively, while the Dow Jones Industrial Average (^DJI) hovered around the flatline.

      A surge in GameStop (GME) shares grabbed the spotlight, firing up speculation again of a return to a 2021-style meme rally. Shares of GME were halted for volatility after climbing about 64% higher shortly after the opening bell.

    • Ford CEO to Yahoo Finance on EV profits

      Ford (F) CEO Jim Farley told me in a new episode of Yahoo Finance’s ‘Opening Bid‘ podcast that he has a date in mind when Ford will make money from EVs.

      But he didn’t want to share it with me during a sit-down in Detroit! Ford is slated to lose about $5 billion in its EV division this year.

      I did appreciate though that Farley is focused on running a profitable EV business, and that includes streamlining costs and pulling back on aggressive EV plant buildout timelines.

      You can watch the full episode below, or listen in in all major podcast platforms such as Spotify, Apple, Amazon, Pandora and iHeartmedia.

    • Nvidia keeps on rolling sentiment wise

      Nvidia (NVDA) shares are getting a 3% pop pre-market after another well-received presentation from founder Jensen Huang, this time at Computex in Taipei.

      The most important thing was Nvidia unveiling its next generation of AI chips dubbed Rubin. This is impressive stuff, as Nvidia just announced new AI chips in March.

      “Net-net, we view all four announcements as great depiction of Nvidia’s efforts to lean on its existing AI accelerator dominance to establish a robust presence in what is for the company a mostly untapped combined accelerated computing total addressable market of $1 trillion plus going from AI networking to the largely CPU-centered server market,” Citi analyst Atik Malik said in a client note.

      Unsurprisingly, Malik maintained a buy rating on Nvidia shares.

      Catch up on Nvidia via Yahoo Finance’s recent exclusive interview with Huang.

    • The vibe around software stocks after Salesforce shocker

      Salesforce (CRM) earnings last week really left a bad taste in the mouth of tech bulls.

      So much so they voiced their concerns at a closely watched Jefferies tech conference in Newport Beach late last week.

      Here are a couple key takeaways from Jefferies tech analyst Brent Thill:

      • “Macro headwinds persist. Investor sentiment in the software space remains negative as companies call out the tough macro environment. The weakness was broad-based across front-office, back-office, large enterprises, and small businesses. Workday (WDAY) and Salesforce both highlighted weak growth in EMEA.”

      • “AI crowding out. Despite the long-term industry tailwinds surrounding AI, investor concerns surrounded near-term budget shifts away from software as companies focus on semis and hardware.”

    • Reminder on June for stocks

      June is the second worst-performing month of the year for the S&P 500 the last 15-years.

      Helpful chart from BTIG this morning.

      June is often a challenging period for markets.June is often a challenging period for markets.

      June is often a challenging period for markets. (BTIG)

    • GameStop explodes

      And so starts the week….

      GameStop (GME) shares are up 85% pre-market (were up as much as 103%) as meme overlord Keith Gill appeared to disclose a $116 million position in the video game retailer on Reddit. It was his first post in three years.

      Note the post couldn’t be verified, similar to one made from his X account a couple weeks ago.

      All I can say is be careful with this one!

      If anything, the real play is to do some research on is Reddit (RDDT) given the heightened activity on the platform. Start your fact-finding mission here.

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  • Stocks splits are usually bullish. Here are 8 expensive stocks that could get a boost by following Nvidia’s 10-for-1 move.

    Stocks splits are usually bullish. Here are 8 expensive stocks that could get a boost by following Nvidia’s 10-for-1 move.

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    Spencer Platt/Getty Images

    • Nvidia is the 8th company this year to announce a forward stock split.

    • Stock splits have no impact on the market value of a company, but they are historically bullish, according to Bank of America.

    • These are eight high-priced S&P 500 stocks that could be the next to enact a split.

    Nvidia last week became the eighth company this year to enact a forward stock split, following the footsteps of mega corporations Walmart in January and Chipotle in March.

    The company will give its investors nine additional shares for every share they own, and it’s stock price will trade at just above $100 per share from its current price of more than $1,000  when its split goes into effect on June 10.

    While stock splits have no impact on the underlying fundamentals of a company, nor do they impact a company’s market value, they are a historically bullish signal, according to an analysis from Bank of America.

    “Average returns one year later are 25% vs. around 12% for the broad market. Splits seem to be bullish across market regimes, something management teams might consider if shares look too expensive for buybacks,” Bank of America said in a note on Thursday.

    Stock splits are bullishStock splits are bullish

    Bank of America

    Forward stock splits are ultimately a sign of strength, as the company’s rising stock price often reflects the growing profits of the underlying business.

    A big reason why companies enact stock splits is that high stock prices can make investing in the company inaccessible to employees and retail investors, which is the main reason Walmart and Nvidia cited in their decision to enact a stock split.

    “Splits do not affect company fundamentals but can increase liquidity by making shares more accessible,” Bank of America said.

    Bank of America said there are about 36 companies in the S&P 500 index with a combined market value of $7.4 trillion are ripe for stock splits, with their stock prices above $500 per share.

    Meanwhile, there are eight S&P 500 companies that are even more likely to split their stock, with a current share price of more than $1,000 per share.

    8. Deckers Outdoor

    DECKDECK

    DECK

    Markets Insider

    Ticker: DECK
    Stock price: $1,033.80
    Market value: $26.5 billion

    7. TransDigm Group

    TDGTDG

    TDG

    Markets Insider

    Ticker: TDG
    Stock price: $1,348.40
    Market value: $75.5 billion

    6. Fair Isaac

    FICOFICO

    FICO

    Markets Insider

    Ticker: FICO
    Stock price: $1,371.89
    Market value: $33.9 billion

    5. Broadcom

    AVGOAVGO

    AVGO

    Markets Insider

    Ticker: AVGO
    Stock price: $1,411.14
    Market value: $654.0 billion

    4. Mettler-Toledo

    MTDMTD

    MTD

    Markets Insider

    Ticker: MTD
    Stock price: $1,474.15
    Market value: $31.5 billion

    3. AutoZone

    AZOAZO

    AZO

    Markets Insider

    Ticker: AZO
    Stock price: $2,790.63
    Market value: $48.3 billion

    2. Booking Holdings

    BKNGBKNG

    BKNG

    Markets Insider

    Ticker: BKNG
    Stock price: $3,795.04
    Market value: $128.7 billion

    1. NVR Inc

    NVRNVR

    NVR

    Markets Insider

    Ticker: NVR
    Stock price: $7,438.82
    Market value: $23.3 billion

    Read the original article on Business Insider

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