‘Time to Pull the Trigger,' Says Investor About Nvidia Stock
Protect Your Portfolio Against Market Uncertainty
Part of the pressure stems from growing investor jitters about a possible pullback in AI infrastructure spending by the tech giants, or hyperscalers. While companies like Amazon and Microsoft have reaffirmed their commitment to AI investments, some reports suggest a more cautious approach to capital expenditures in the near term.
However, one investor, known by the pseudonym Stone Fox Capital, believes the latest earnings reports tell a different story – one where the AI boom is very much alive and kicking. In fact, Alphabet, a major consumer of Nvidia's GPUs, recently confirmed it plans to pour $75 billion into capital investments in 2025.
That said, there are signs of more strategic belt-tightening elsewhere. Microsoft, for instance, canceled several data center leases in Ohio.
'The problem here,' Stone Fox noted, 'is that analyzing data center leases doesn't offer a full picture of data center demand. A company can easily shift data center locations or refine projects as the case appears for Microsoft.'
Meanwhile, geopolitical risks are adding to Nvidia's headaches. The Trump administration recently informed the company that it will now need export licenses to sell its H20 AI chips to China. The company has acknowledged that this will cause a $5.5 billion sales hit on its books during the recently concluded quarter.
Still, Stone Fox believes these setbacks are just surface noise, and that underneath, the foundation of the AI revolution remains firmly in place, setting the stage for Nvidia's next leg of growth.
'Whether the Chinese chip issue is resolved in the short term, investors need to focus on the bigger picture. The data center market size is forecast to triple from nearly $350 billion in 2024 to over $1,000 billion in 2034,' the investor opined.
And with Nvidia's stock still under pressure, Stone Fox believes now could be a golden buying opportunity.
'Investors should use the yearly low in the stock to buy Nvidia at a discount to the growth rate,' concludes Stone Fox, rating NVDA shares a Buy. (To watch Stone Fox Capital's track record, click here)
Wall Street feels much the same way. With 35 Buy and 5 Hold ratings, NVDA enjoys a Strong Buy consensus rating. Its 12-month average price target of $167.09 has an upside of roughly 54%. (See NVDA stock forecast)
To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
13 minutes ago
- Yahoo
Those who invested in Multi-Chem (SGX:AWZ) five years ago are up 457%
When you buy shares in a company, it's worth keeping in mind the possibility that it could fail, and you could lose your money. But on a lighter note, a good company can see its share price rise well over 100%. Long term Multi-Chem Limited (SGX:AWZ) shareholders would be well aware of this, since the stock is up 276% in five years. It's down 2.1% in the last seven days. Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. During five years of share price growth, Multi-Chem achieved compound earnings per share (EPS) growth of 32% per year. This EPS growth is remarkably close to the 30% average annual increase in the share price. That suggests that the market sentiment around the company hasn't changed much over that time. Rather, the share price has approximately tracked EPS growth. The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image). We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. This free interactive report on Multi-Chem's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further. What About Dividends? When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of Multi-Chem, it has a TSR of 457% for the last 5 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments! A Different Perspective Multi-Chem's TSR for the year was broadly in line with the market average, at 29%. It has to be noted that the recent return falls short of the 41% shareholders have gained each year, over half a decade. Although the share price growth has slowed, the longer term story points to a business well worth watching. It's always interesting to track share price performance over the longer term. But to understand Multi-Chem better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Multi-Chem you should know about. Multi-Chem is not the only stock insiders are buying. So take a peek at this free list of small cap companies at attractive valuations which insiders have been buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Singaporean exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. 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
Forbes
15 minutes ago
- Forbes
AI Action Plan Channels Rally Energy, Ignites U.S. Policy Debate
WASHINGTON, DC - JULY 23: Jacob Helberg, Hill and Valley co-founder and Under Secretary of State for ... More economic growth designate; NVIDIA co-founder and CEO Jensen Huang; Founders Fund partner and Varda Space Industries co-founder Delian Asparouhov; and Environmental Protection Agency Administrator (EPA) Lee Zeldin give a standing ovation to U.S. President Donald Trump at the "Winning the AI Race" summit. At the Winning AI Race Summit, President Donald Trump delivered a speech combining campaign-style showmanship with concrete policy proposals for America's future in artificial intelligence. Speaking in his trademark improvisational style, assertive and theatrical, punctuated with rally-style slogans, Trump laid out a private-sector-driven strategy to reassert U.S. dominance in AI. It is the start of a 'golden age of America,' he said, punctuating the message with chants of 'Drill, baby, drill and build, baby, build!' and urging American technology companies to go 'all in for America.' The president announced an executive order banning what he called woke AI, a move that immediately sparked debate over the government's role in shaping the values embedded in AI systems. Additionally, Trump also called for expedited permitting for data centers and energy projects, and launched an initiative to make the U.S. an 'AI export powerhouse.' An AI Agenda Tailored For The Tech Industry Trump's speech outlined the plan to boost America's AI global standing, empowering private-sector growth through deregulation, incentives and diplomacy for market access. He called for clearer copyright rules that would let AI systems learn from publicly available content without being blocked by licensing restrictions. He advocated for a single federal AI regulatory standard. A mix of state laws, he warned, could slow innovation and strain early-stage companies and small businesses. The president made clear that he sees the private sector, not government, as the primary engine of innovation. He said Washington should enable innovation, not interfere with it, and declared his intention to keep bureaucrats 'out of the way.' Trump pledged to accelerate the build of AI infrastructure, including data centers, power plants and semiconductor fabs, via deregulation and expedited permitting. He linked this effort to a broader industrial revival, citing the need for electricians, heating, ventilation and air conditioning (HVAC) technicians and construction workers to meet the rising demand. The speech referred to the One Big Beautiful Bill Act, the budget reconciliation bill at the core of Trump's second-term agenda with tax cuts, spending adjustments and a debt ceiling increase. It highlighted its provisions allowing companies to deduct capital expenses upfront to accelerate private investment in infrastructure. Internationally, Trump proposed turning the U.S. into an AI export powerhouse of full-stack solutions that include American AI models, applications and the hardware it runs on. The goal is to promote sales to allied nations, backed by diplomatic and trade support from the State and Commerce Departments. On energy, he called for an 'all of the above' strategy, including coal, oil, gas and nuclear to meet AI's rapidly growing power demands. According to the Energy Information Administration, China produced more than twice as much energy as the U.S. in 2023. With abundant power generation, China can support large AI factories, even when powered by less energy-efficient chips, such as older generations of Nvidia chips or locally produced semiconductors from Huawei. Trump vowed to eliminate what he called woke mandates from federally supported AI, criticizing prior policies that tied government funding to diversity goals. President Biden's industrial strategy for semiconductor manufacturing included language encouraging companies to broaden their hiring pipelines. Under a new executive order, the government would be barred from using systems that incorporate ideological screening or require diversity, equity and inclusion (DEI) benchmarks. Lastly, Trump said he would support small tech firms to ensure competition and innovation beyond the dominant platforms, arguing that 'the future of AI shouldn't belong to a few companies alone.' The AI Plan Draws Mixed Reactions Critics of the plan warn that it favors entrenched corporate interests while sidelining democratic safeguards and public accountability. Nicholas Garcia, senior policy counsel at Public Knowledge, calls it 'a handout to already-entrenched, powerful tech companies'. The plan's emphasis on deregulation and expedited permitting has raised alarm among environmental advocates, who point to the potential climate impact of large-scale data centers and fossil fuel-heavy power generation. Civil society organizations created the 'People's AI Action Plan,' a manifesto stating that 'We can't let Big Tech and Big Oil lobbyists write the rules for AI and our economy at the expense of our freedom and equality.' Civil liberties groups are also sounding the alarm. The ban on woke AI and the proposed removal of misinformation safeguards have drawn criticism from speech and privacy experts. The Electronic Privacy Information Center said the move is 'placing business interests ahead of consumer protection.' 'The government's interest in only supporting AI that upholds free speech gives me pause,' said Manasi Vartak, chief AI architect at Cloudera. 'In an age of misinformation and where AIs are becoming a key source of information, this banner of free speech can easily be misused.' At the same time, she praised the 'support for open-source and open-weight models and datasets, which are essential for innovation and for continuing research.' The Politics Of AI Policy Trump's AI strategy uses a familiar Silicon Valley formula: deregulate, invest in infrastructure and trust the market to deliver. While the plan is ambitious, much of it remains a framework, leaving federal agencies and Congress to fill in the details. Whether it can move from rally to policy will depend on engagement from civil society, which, until now, has remained at the margin of the administration's approach. As agencies begin translating priorities into rules and funding decisions, implementation could drift into partisan favoritism. But the moment also opens space for new types of governance that move past the usual tug-of-war between regulation and laissez-faire. Policy experts are calling for governance models that pair public-private collaboration with independent audits and oversight systems designed to evolve with the fast-changing AI tools. A report by Fathom, an independent nonprofit, reminds that 'no matter how well-intentioned any government's efforts might be, the reality is that direct government regulation simply cannot keep up with the pace of innovation. Worse yet, it might suffocate it.' How the plan plays out will influence U.S. competitiveness and the rules that shape AI worldwide. As other nations advance their AI strategies, Trump's private-sector-first emphasis will be tested. The plan positions the U.S. for leadership in technology, innovation and global adoption. But its success will ultimately depend on whether people around the world trust and use American-made AI.
Yahoo
43 minutes ago
- Yahoo
Those who invested in Multi-Chem (SGX:AWZ) five years ago are up 457%
When you buy shares in a company, it's worth keeping in mind the possibility that it could fail, and you could lose your money. But on a lighter note, a good company can see its share price rise well over 100%. Long term Multi-Chem Limited (SGX:AWZ) shareholders would be well aware of this, since the stock is up 276% in five years. It's down 2.1% in the last seven days. Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. During five years of share price growth, Multi-Chem achieved compound earnings per share (EPS) growth of 32% per year. This EPS growth is remarkably close to the 30% average annual increase in the share price. That suggests that the market sentiment around the company hasn't changed much over that time. Rather, the share price has approximately tracked EPS growth. The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image). We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. This free interactive report on Multi-Chem's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further. What About Dividends? When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of Multi-Chem, it has a TSR of 457% for the last 5 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments! A Different Perspective Multi-Chem's TSR for the year was broadly in line with the market average, at 29%. It has to be noted that the recent return falls short of the 41% shareholders have gained each year, over half a decade. Although the share price growth has slowed, the longer term story points to a business well worth watching. It's always interesting to track share price performance over the longer term. But to understand Multi-Chem better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Multi-Chem you should know about. Multi-Chem is not the only stock insiders are buying. So take a peek at this free list of small cap companies at attractive valuations which insiders have been buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Singaporean exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
