Jensen Huang Talks Up Nvidia's Strategic Value to US as He Heads to China
Alibaba's slump: A protracted battle in China's food-delivery market has chopped $100 billion in market value from Alibaba Group Holding Ltd., with no end in sight for damage to profits and investor confidence.
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The Verge
32 minutes ago
- The Verge
Sony's pocket-sized RX1R camera returns with its first update in 10 years
After nearly a decade, Sony has announced a new version of its fixed-lens compact RX1R camera that was last updated in 2015. The new third generation RX1R III arrives with the same 35mm full-frame Exmor R sensor as its predecessor, but with a bump from 42.4 to 61 megapixels. It also benefits from Sony's latest Bionz XR and AI image processors to deliver better autofocus that can track the movement of human bodies and more accurately focus on their heads and eyes. The RX1R III will be available sometime in July for approximately $5,099.99, according to Sony. That's considerably more expensive than the RX1R II, which launched in 2015 for $3,300. The RX1R III's compact size and Zeiss Sonnar T 35mm F2 lens puts the camera in competition with the $4,899.95 medium format Fujifilm GFX100RF and the $5,995 full-frame Leica Q3 – both of which also feature fixed lenses. To compensate for that lens limitation, the RX1R III includes a Step Crop Shooting function that allows photographers to switch between 35mm, 50mm, and 70mm focal lengths achieved through sensor cropping. The camera also features a macro mode activated by a ring on the lens that can be used to focus on subjects as close as 20cm. The camera has a body made of magnesium alloy. To help make the RX1R III as light and portable as possible, Sony is now using a fixed screen on the back that can no longer be tilted up and down. The change means you may find yourself having to contort your body when trying to capture low-angle shots using the camera's screen or 2.36 million dot OLED electronic view finder. Sony is once again positioning this camera as a high quality shooter that's far less cumbersome to carry than larger mirrorless options or DSLRs, and its performance reflects that. Shooting speeds max out at just five frames per second, and the RX1R III can capture 4K video at 30 fps or 1080p at up to 120 fps (the RX1R II maxed out at 1080p) with the option to use Sony's S-Cinetone picture profile for a more cinematic look. The RX1R III also includes 12 different quick access Creative Looks that can be customized and applied to both stills and video. And like the Sony A7R V, its autofocus system features 693 phase-detection points and is capable of tracking human motion to determine where a subject's eyes are supposed to be, even if they're not looking directly at the camera or their face is obscured. It seems like a worthwhile upgrade over the last generation, but if you don't mind a bit more bulk, there are more capable and affordable alternatives from Sony.
Yahoo
32 minutes ago
- Yahoo
Nvidia Stock Is at a Peak - What's the Best Play Here for NVDA?
Three weeks ago, we recommended Nvidia Inc. (NVDA) stock in a June 22 Barchart article and shorting out-of-the-money puts. Now, NVDA is near its target prices, and the short play is successful. What is the best play here? NVDA is at $171.30, up over 4.5% today. Trump OK'd an export license to sell its powerful H20 AI chips to China after Nvidia's CEO, Jensen Huang, met with President Trump. The Wall Street Journal said this has been a top seller for Nvidia in China and was specially designed for the Chinese market. How to Buy Tesla for a 13% Discount, or Achieve a 26% Annual Return Alibaba Stock is Well Off Its Highs - What is the Best Way to Play BABA? Generate Income on MSTR Without Owning The Stock (Yet) Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! My prior price target was $178 per share using an estimated 55% forward free cash flow (FCF) margin (i.e., FCF/sales), as well as a 2.85% FCF yield valuation metric (i.e., 35x FCF multiple). Last quarter, Nvidia made a 59% FCF margin. So, if this continues over the coming year, NVDA stock could have further to go. Moreover, analysts have lifted their price targets. Let's look at this. In Q1 ending April 27, Nvidia generated $26.1 billion in FCF on $44.06 billion in sales. That represents a 59.2% FCF margin. Over the trailing months, according to Stock Analysis, it's generated $72.06 billion FCF on $148.5 billion in sales, or a 48.5% FCF margin. So, it seems reasonable to assume Nvidia could make at least a 57% FCF margin going forward. Here's how that would work out. Analysts expect sales to rise to a range between $199.89 billion this year ending Jan. 2026 and $251.2 billion next year. That puts it on a next 12 months (NTM) run rate of $225.5 billion. Moreover, now that it will be able to sell to China again, let's assume this pushes sales at least 5% higher to $236.8 billion: $236.8b NTM sales x 57% FCF margin = $135 billion FCF Just to be conservative, let's use a 55% margin on the lower NTM sales estimates: $225.5 billion x 55% margin = $124 billion FCF So, our estimate is that FCF over the next 12 months could range between $124 billion and $135 billion, or about $130 billion on average Therefore, using a 30x FCF multiple (i.e., the same as dividing by 3.33% FCF yield): $230b x 30 = $6,900 billion market cap (i.e., $6.9 trillion) That is 65% over today's market cap of $4.178 trillion, according to Yahoo! Finance (i.e., at $171.35 p/sh). In other words, NVDA stock could be worth 65% more, or $291.55 per share. $171.35 x 1.65 = $282.73 price target That is what might happen over the next 12 months (NTM) if analysts' revenue targets are hit and its FCF margin averages 56%. Analysts have closer price targets. The average of 66 analysts surveyed by Yahoo! Finance is $173.92. However, that is higher than three weeks ago, when I reported that the average was $172.60. Moreover, which tracks recent analyst recommendations, now reports that 39 analysts have a $200.71 price target, up from $179.87 three weeks ago. One way to play this is to sell short out-of-the-money puts. That way, an investor can set a lower buy-in price and still get paid extra income. In my last Barchart article on June 22 ("Make Over a 2.4% One-Month Yield Shorting Nvidia Out-of-the-Money Puts"), I suggested shorting the $137 strike price put option expiring July 25. The yield was 2.48% over the next 34 days (i.e., $3.40/$137.00). Today, that contract is almost worthless, as it's trading for just 8 cents. In other words, the short seller of these puts has made almost all the money (i.e., the stock has risen, making the short-put play successful). The investor's account has little chance of getting assigned to buy 100 shares per put contract at $137.00 on or before July 25. It makes sense to roll this over by doing a 'Buy to Close" and entering a new trade to 'Sell to Open' at a later expiry period and higher strike price. For example, the Aug. 29 expiry period, 45 days to expiry or DTE (which is after the expected Aug. 27 Q2 earnings release date), shows that $155.00 strike price put has a midpoint premium of $3.93. So, the short-put yield is: $393/$155.00 = 0.2535 = 2.535% over 45 days That works out to an annualized expected return (ER) of +20.28% (i.e., 2.535% x 8). So, even if NVDA stock stays flat, the investor stands to make good money here shorting these puts every 45 days (assuming the same yield occurs). There seems to be a low risk here, given that the delta ratio is just 23%. But, given how volatile NVDA has been, and that the stock is at a peak, it might make sense to use some of the income received to buy puts at lower strike prices. Keep in mind that the breakeven point, i.e., the price where an unrealized loss could occur, is $151.07: $155-$3.93 = $151.07 That is 11.8% below today's price. But it is not uncommon for a stock like NVDA to fall 20% from its peak. That would put it at $137.00. So, using some of the income to buy long puts at $140 or $145 is not unreasonable. That would cost between $144 and $204 ($174 on average) for the $15,500 investment (net of $393 already received): $393 income - $174 long hedge = $219, or $219 / $15,500 invested in short put play = 1.41% New Breakeven = $15,500 = $174 = $15,326 or $153.26 per put contract This means that the investor's potential (unrealized) loss is between $14,250 and $15,326, or -$1,076 net on the $15,326 net investment, or -7%. But keep in mind that this is only an unrealized loss. The investor would have protected himself from a much lower downside by buying long puts from the income received. And, after all, the price target is substantially higher, so the investor might be willing to hold on or even sell out-of-the-money call options to recoup some of the unrealized loss. The bottom line here is that NVDA has room to move higher. Shorting OTM puts with a lower strike price long put hedge is one good way to play this. On the date of publication, Mark R. Hake, CFA did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Yahoo
36 minutes ago
- Yahoo
What Are the 3 Best Bargain Artificial Intelligence (AI) Stocks to Buy Right Now?
The S&P 500 bounced back from its massive decline during the first four months of 2025. Nvidia, ASML, and Amazon provide diverse opportunities for gaining AI exposure. Although they seem richly valued, all three are all trading at discounts to their historical valuations. 10 stocks we like better than Nvidia › In April when the S&P 500 sunk about 19%, bargain hunters were having a field day. Today, however, the opportunities to find quality artificial intelligence (AI) stocks hanging on the discount rack may seem fewer and farther between. But that's not to say that they don't exist. In fact, today seems like a great time to pick up shares of Nvidia (NASDAQ: NVDA), ASML (NASDAQ: ASML), and Amazon (NASDAQ: AMZN) while they're sitting in the bargain bin. Trading today at around 52.5 times operating cash flow, Nvidia stock certainly doesn't seem like it's a value opportunity at first glance. Before making this determination, however, you'd be wise to remember that it's often useful to consider a stock's valuation in context of its historical valuation. In doing so, you'd find Nvidia stock's five-year average cash-flow multiple is 55.1, illustrating its less expensive valuation today. Similarly, shares of Nvidia seem admittedly higher trading at 53 times trailing earnings, but since they have a five-year average P/E ratio of 70.2, shares seem attractively priced right now. A semiconductor stalwart, investors would be hard pressed to find a company that supports advancement of the AI industry as much as Nvidia thanks to the graphics processing units it designs for data centers, where AI computing occurs. Additionally, Nvidia has ownership stakes in a variety of AI companies that are driving innovation in a variety of fields including generative AI and healthcare. Unsurprisingly, the production of sophisticated semiconductors that companies rely on to drive AI innovation is far from a simple process. That's where ASML comes in. The company provides hardware, software, and services that help facilitate the mass production of microchips found in AI applications. Most notably, the company provides semiconductor makers with extreme ultraviolet (EUV) lithography systems -- systems that enable the printing of the smallest features on microchips at the highest density. This is an invaluable tool for advanced semiconductor makers such as ASML customers Taiwan Semiconductor Manufacturing and Intel. It's hard to overstate the allure of ASML with respect to the vital role it plays in helping chipmakers; it's currently the only company worldwide to manufacture EUV lithography systems. Like with Nvidia, ASML stock's trailing P/E ratio of 33.7 might not shout "bargain," but considering its five-year trailing earnings multiple of 40.8, the current valuation seems more compelling. Climbing 2.6% since the start of 2025, Amazon stock has failed to keep pace with the S&P 500, which has risen 6.4% as of this writing. With the lack of uncertainty regarding tariffs and how they will impact the company's retail business, investors have chosen to keep their distance -- unlike 2024 when Amazon stock soared more than 44%. While the stock's lackluster rise in 2025 may be disheartening for current shareholders, it helps to provide a good entry point for prospective investors. Currently, shares are priced 36.7 times trailing earnings -- a hefty discount to their five-year average P/E of 64.1. From its cloud platform, Amazon Web Services, which supports its customers develop their own AI resources, to the development of AI tools like the virtual assistant Alexa and Amazon Q, an AI assistant used in workplace settings, the company has broad exposure to the AI industry. Plus, there's the numerous ways that Amazon is leveraging AI in everything it owns, making it even clearer that this AI powerhouse has a great opportunity to flourish in the years ahead. While it's always important to focus on the present and look toward the future, taking a peak at the past can also prove to be pretty helpful -- especially with respect to valuing stocks. At first glance, Nvidia, ASML, and Amazon may all seem to sport rich price tags, but, when taking into account their historical valuations, it becomes much clearer how they are all available at a discount right now. All three companies provide varying opportunities, but Nvidia is arguably the best choice right now for those seeking the most concentrated exposure to the burgeoning field of AI. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 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 Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $671,477!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,010,880!* Now, it's worth noting Stock Advisor's total average return is 1,047% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 14, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML, Amazon, Intel, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy. What Are the 3 Best Bargain Artificial Intelligence (AI) Stocks to Buy Right Now? was originally published by The Motley Fool
