Nvidia challengner Groq in talks over $6B valuation, Information reports
Don't Miss TipRanks' Half-Year Sale
Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
34 minutes ago
- Yahoo
Does the ASML Stock Sell-Off Signal Trouble for Nvidia and Broadcom?
Key Points Geopolitical risks haven't gone away. The semiconductor industry could face challenges even if AI demand remains strong. Approaching the sector with a long-term mindset can help you endure volatility. 10 stocks we like better than Nvidia › ASML (NASDAQ: ASML) stock was down over 11% at one point during the trading day July 16 before closing the session down 8.3%. However, the growth stock continued falling over the next couple of days and is now down 21% over the past year. The company makes advanced lithography machines that chip manufacturers use to produce chips designed by companies like Nvidia (NASDAQ: NVDA) and Broadcom (NASDAQ: AVGO). ASML's extreme ultraviolet (EUV) systems pack an unprecedented number of transistors into each silicon wafer, advancing precision and lowering manufacturing costs. These machines are the muscle behind the artificial intelligence (AI) revolution. Here's what you need to know about the ASML sell-off, and whether it could have ripple effects that could drag Nvidia and Broadcom down from their all-time highs. ASML's solid results were overshadowed by its guidance ASML reported its most recent quarterly results on July 16. It had a great second quarter and is guiding for 15% revenue growth and slightly higher gross margins for the full year. The semiconductor equipment supplier reaffirmed its 2030 targets, which forecast revenue to increase by 55% to 112% from its 2024 results of 28.3 billion euros ($32.81 billion), and gross margin expansion from the low 50% range to 56% to 60%. The margin expansion is likely due to the company's anticipated increase in EUV machines in its sales mix. Right now, its older and less advanced deep ultraviolet machines (DUV) still make up the bulk of new sales. ASML brings in a significant amount of revenue by servicing existing machines for its customers. Margins should grow as the sales mix shifts to more expensive EUV machines -- especially its roughly $400 million ultra-powered high-numerical aperture (high-NA) versions. The near-term results and the 2030 targets aren't the issue. Rather, it's a murky medium-term outlook. ASML cited geopolitical challenges and macroeconomic headwinds that are affecting its customers and the timing of their spending. The company is directly affected by tariffs on imports to its U.S. manufacturing centers and field operations. ASML also sources components from around the world to build its machines, so it has a complex supply chain that is vulnerable to tariffs. Although ASML is a Dutch company, the Netherlands works closely with the U.S. on trade policy. This limits ASML's ability to sell products to China, despite China's rapidly growing demand for semiconductor lithography systems. As it stands today, ASML can't sell its most advanced systems to China -- just older, lower-cost units. There's also the indirect effect of tariffs, which could involve a more severe industrywide slowdown and a shift in customer sentiment. Given the uncertainty, ASML said that it cannot confirm it will grow in 2026. That's likely the reason that the stock is selling off. Nvidia and Broadcom operate upstream of ASML along the AI value chain ASML's latest earnings report and management commentary were a reminder of the cyclicality of the semiconductor industry. Despite widespread enthusiasm and spending on AI, downturns can still happen for geopolitical or macroeconomic reasons, from tariffs and trade policy to interest rates and the timing of the investment cycle. Before Nvidia and Broadcom investors start to worry, it's important to remember that ASML operates in a very different sales cycle from those two companies. ASML sold just 76 new lithography units in its latest quarter. That's less than one sale per day. You would be hard-pressed to find a company with a market cap of nearly $290 billion with an order volume that small. But it's a testament to the sophistication of ASML's cutting-edge tech. The company has a virtual monopoly, and its customers are willing to pay a high price for its machines because they're worth it in the long run if they can reduce costs and improve precision. But because these units are so expensive, it's easier for a key customer to decide to delay a purchase by a year or two to wait for more favorable conditions. In its latest quarter, ASML said that 35% of new system sales were in Taiwan, while 27% were in China, 19% were in South Korea, 10% were in the U.S., and 9% were in other places. You can bet that the majority of sales in Taiwan are going to Taiwan Semiconductor Manufacturing (NYSE: TSM), South Korea is probably Samsung Electronics (OTC: SSNL.F), and the U.S. is mostly Intel (NASDAQ: INTC). Nvidia and Broadcom have international exposure, too. But their sales cycle is far different because they aren't just selling a few big-ticket items every quarter. Nvidia makes most of its money selling graphics processing units (GPUs), software, and associated infrastructure to build AI ecosystems for hyperscalers. Hyperscalers like Microsoft (NASDAQ: MSFT) are raking in the free cash flow and pouring capital expenditures into AI investments -- benefiting Nvidia. Broadcom is experiencing explosive growth from hyperscalers for its AI chips. But Broadcom does a lot outside AI, from network connectivity to cybersecurity, broadband, wireless, and infrastructure software. Both Nvidia and Broadcom have international exposure and are vulnerable to trade tensions and tariff risks, but their sales cycles are distinctly different from ASML's. So ASML's warning of an impending slowdown doesn't necessarily mean the same for Nvidia and Broadcom. However, if fabs (the fabricators) slow down their investment, it could lead to a backlog buildup, which could delay shipments for chip designers. Zooming out in the semiconductor industry The sell-off in ASML stock is a reaction to near-term guidance and has nothing to do with the long-term investment. The best way to approach any chip stock, especially ones with expensive valuations like Nvidia and Broadcom, is to take a long-term view, preferably at least three to five years. If you believe in the long-term growth of global connectivity and AI and that Nvidia and Broadcom will remain industry leaders, then both stocks are probably worth buying and holding. Even a few quarters or a few years of bad earnings will ultimately be made up for by the long-term investment thesis playing out. However, the further stock prices outpace earnings growth, and the more expensive valuations become, the more hot air fills the stock price, which can go out just as fast as it went in. Therefore, it's essential to approach these stocks with the right mindset and accept that geopolitical and macroeconomic factors can have a massive effect on the stock prices of these companies in the short term. 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 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 $641,800!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,023,813!* Now, it's worth noting Stock Advisor's total average return is 1,034% — 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 Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Daniel Foelber has positions in ASML and Nvidia. The Motley Fool has positions in and recommends ASML, Intel, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft, short August 2025 $24 calls on Intel, and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Does the ASML Stock Sell-Off Signal Trouble for Nvidia and Broadcom? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
37 minutes ago
- Business Insider
Ford Stock (NYSE:F) Slips as Ford Bronco Sport Raptor Breaks Cover
Legacy automaker Ford (F) has been trading on the back of its 'no boring cars' philosophy for a while now, and given what we have seen so far, it may be able to continue doing so for some time to come. In fact, the Ford Bronco Sport Raptor was recently spotted in the wild, looking anything but boring. Investors, though, were a bit less sure. They sent Ford shares sliding fractionally down in Thursday afternoon's trading. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. The Ford Bronco line has already seen one refresh, reports noted, with the 2025 model year. That was noteworthy in and of itself as the vehicle only saw its debut in 2021. But now, a new version is said to be coming soon, along with some minor tweaks. This new version is the Ford Bronco Sport Raptor, and reports have already spotted it out in the wild. The biggest reason that anyone could tell this was a Sport Raptor is that the new vehicle has Raptor badges on the front doors, as well as one on the rear tailgate. There are also some cosmetic improvements like a taller ride height as well as larger fender flares. The increased ride height is actually important for one other upgrade: a new set of BFGoodrich Mud-Terrain T/A KM3 tires. These tires, reports note, are more commonly used with off-roading in mind, particularly on rocky or muddy terrain. Earnings Season Approaches With Ford set to reveal its earnings report in just six days, some are wondering if Ford's earnings report will give the stock price a lift. With earnings expected to be down against last year's figures—analysts expect $0.33 per share against the $0.47 per share seen this time last year—and revenues also expected to take a roughly 2% hit, some wonder if Ford's share price can get any kind of lift. Sadly, with numbers like those already expected, it would take a fairly big surprise to turn anything around in the short term. And while there are some signs of life from discretionary income in the consumer space, it may not be enough to give any real boost in the short term. Is Ford Stock a Good Buy Right Now? Turning to Wall Street, analysts have a Hold consensus rating on F stock based on two Buys, 12 Holds and three Sells assigned in the past three months, as indicated by the graphic below. After a 1.97% rally in its share price over the past year, the average F price target of $10.14 per share implies 10.23% downside risk.
Business Insider
2 hours ago
- Business Insider
Lynas Rare Earths (LYSCF) Receives a Sell from Macquarie
Macquarie analyst maintained a Sell rating on Lynas Rare Earths today and set a price target of A$9.00. The company's shares closed yesterday at $7.19. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. In addition to Macquarie, Lynas Rare Earths also received a Sell from Ord Minnett's Matthew Hope in a report issued today. However, on the same day, Morgan Stanley maintained a Buy rating on Lynas Rare Earths (Other OTC: LYSCF).
