Latest news with #BocomInternational
Yahoo
11-07-2025
- Business
- Yahoo
Wall Street's advice after Nvidia hits historic $4 trillion market cap: BUY
A day after set a new record by reaching a $4 trillion market cap, at least three Wall Street analysts issued new reports that rated the stock a buy, according to Bloomberg data. The bulls pointed to Nvidia's role as the premier chipmaker and the fact that compared to its fundamentals, the stock is still trading at a fair price. Wall Street is betting Nvidia can make stock market history again. After the chipmaker powered its way to a $4 trillion valuation, the first company to ever reach the milestone, analysts still see room for the stock to grow. The upside for Nvidia, according to its biggest bulls, remains incomplete. There are more returns to be had, they argue. Nvidia is one of the most beloved stocks by investors. It seems to have ridden the stock market exuberance of AI more than any other company. Investors continue to reiterate its strength as the purveyor of the best AI chips that hyperscalers like Meta, Alphabet, and Amazon use. Of the 79 analysts who currently follow Nvidia, 69 rate it a buy, according to Bloomberg. That's good for an 87% buy rating among analysts. Only 11 rate it a hold. And just one lone holdout lists it as a sell. On Thursday, after Nvidia hit the $4 trillion mark, some analysts were unfazed at the prospect that perhaps the chipmaker had reached its stock market peak. At least three analysts published new reports rating the stock a buy, according to Bloomberg data. Goldman Sachs, Keybanc Capital Markets, and Bocom International, the subsidiary of Hong Kong's Bank of Communications, all listed Nvidia as either a buy or an overweight. Their price targets ranged from $175 to $190, implying growth of between 8.1% and 17.4% for Nvidia stock from the $161.84 per share at the time of publication. Despite Nvidia's valuation, its fundamentals don't point to an expensive or overpriced stock, according to Paul Meeks, chief investment officer at 17 Asset Management. 'The stock has come far, but sales, earnings, and cash flows have come farther,' he told Fortune. Indeed, Nvidia has delivered outstanding financial performance. Its latest quarterly earnings saw it bringing $44 billion in revenue, a 69% increase from the prior year, according to company filings. Its margins remain plump, coming in at 60% over the same quarter. Its balance sheet remains rock-solid with $111 billion in total assets compared to $32 billion in total liabilities in its 2025 fiscal year. Goldman was undeterred by Nvidia's recent record valuation. It called worries about Nvidia's sky-high price 'peak concerns' in an analyst note published on Thursday. 'We believe Nvidia will remain the primary beneficiary of the ongoing AI infrastructure buildout,' Goldman semiconductor analyst James Schneider wrote. Analysts built their bull case for Nvidia around the fact that it remains the market leader in all the components used to develop AI systems and that the market for all of those products will only grow over the next few years. Nvidia has also spent the last couple years diversifying its offerings. 'Nvidia's well beyond the chips,' Meeks said. The company also has a suite of software and networking gear used for things like gaming and developing robotics. Nvidia's believers also often point to early signs that AI companies are finally starting to monetize the technology. Once that happens, demand for Nvidia's products will only grow. AI firms have already started to push further into the consumer tech market. Perplexity released an AI-powered web browser and OpenAI is slated to launch one soon. Major cloud service providers like Amazon and Alphabet will also start to incorporate more AI tech into their services which will only further boost Nvidia's sales, according to longtime tech bull Dan Ives. 'The impact of the AI cycle on consumer Internet will be massive and it will start with the cloud service divisions,' Ives wrote on Thursday. '[Amazon and Alphabet] acquire AI-capable chips, build AI-capable service offerings, and sell those services into their respective installed bases.' But Nvidia's fate is ultimately linked to that of its biggest customers. As they continue to spend, the stock will continue to soar. The day that they pull back their billions in AI investments is the day Nvidia's gets 'crushed,' Meeks said. 'Only thing that would cause a bloodletting here is if we got a sense that major AI spenders pull back,' he said. This story was originally featured on 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
South China Morning Post
04-06-2025
- Business
- South China Morning Post
Hong Kong housing market bound for slow recovery amid cheaper mortgages: analyst
Hong Kong's housing market is poised for a gradual recovery starting in the second half of this year, as population inflows, falling interest rates and a rebound in rental demand restore confidence, according to Bocom International. The investment bank said home prices could rise by 3 per cent over the next six months, followed by 5 per cent increases in both 2026 and 2027, as sentiment improved amid declining borrowing costs while returning residents and arriving professionals boosted demand. The upbeat forecast came after signs of a cooling market amid geopolitical tensions and stock-market volatility. Property transactions in Hong Kong dropped to a three-month low in May, with the number of deals falling 11 per cent to 6,442 from a month earlier, according to data from the Land Registry. 'Key turning points are emerging despite lingering macro uncertainties,' Bocom analyst Philip Tse said in a report on Tuesday. He referred to a recent sharp drop in the one-month Hong Kong interbank offered rate (Hibor), a key reference for mortgage pricing, which fell to nearly a three-year low of 0.6 per cent on May 27 from 3.95 per cent on April 30 after interventions in the currency market by the Hong Kong Monetary Authority 'We believe it will help restore confidence in the property market, boosting optimism among both homebuyers and investors, and supporting the sector's stabilisation and recovery,' he said. Lower mortgage rates would ease repayment burdens on homebuyers, effectively reducing the cost of home ownership, while offering 'a favourable opportunity for first-time buyers to enter the property market', the bank said. A recent correction in home prices, steady rental yields and potential capital gains could also help revive interest from long-term investors, it added.
