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Miami Herald
a day ago
- Business
- Miami Herald
Veteran analyst offers eye-popping Nvidia, Microsoft stock prediction
In the last six months, AI stocks have been anything but boring. After a few years of massive gains, AI stocks kicked off the year getting slammed as a bubble. Talk of bloated valuations and too much hype had investors wondering if the party was over. Don't miss the move: Subscribe to TheStreet's free daily newsletter Then in April, President Donald Trump's surprise tariffs crashed the market, pulling down the S&P 500 by nearly 19%. AI bellwether stocks like Nvidia (NVDA) and Microsoft (MSFT) tanked, and many felt the AI rally was dead and buried. Yet here we are with the S&P 500 at an all-time high, lifted by a roaring AI comeback driven by chip leaders and cloud giants. Now one of Wall Street's sharpest has AI back at the helm, pointing to two giants ready to win big. Image source:In the AI race, Nvidia and Microsoft play different but critical roles in advancing the industry. Nvidia's ubiquitous AI-ready GPUs are the go-to hardware for training and inference. Its latest Blackwell Ultra chips, for instance, promise 1.5 times the punch of earlier models, rolling out even cheaper versions for China to dodge export curbs and grow its reach. Speaking of reach, Nvidia's data-center accelerators handle a whopping 90% of AI workloads globally. Related: Veteran analyst drops bold new call on Nvidia stock On the software side, CUDA keeps millions of developers hooked on fine-tuning performance. On top of that, its patented tools like TensorRT and NeMo make deploying models simpler, and DGX Cloud brings on-demand AI clusters to the table. Take CoreWeave, one of Wall Street's biggest stories this year, which shows how anything Nvidia touches turns to gold. Backed by a 7% Nvidia stake, Coreweave stock has built monster AI supercomputers and is up 308% from its IPO earlier this year. Hence, with a powerful full-stack approach, Nvidia remains an inseparable partner in building next-gen AI. More Tech Stock News: Circle's stock price surges after stunning CEO commentRobotaxi rivalry heats up as new cities come onlineAnalyst reboots AMD stock price target on chip update Microsoft, by contrast, is all-in on software and services to layer AI across its ecosystem. Front and center is Microsoft's massive multi-billion-dollar OpenAI partnership, weaving ChatGPT into Azure, Teams, and Office 365. Microsoft's robust cloud service in Azure packs prebuilt and custom models and low-code tools. Similarly, Microsoft 365 Copilot amps up Word and Excel, while the Windows Copilot pushes AI deep into daily work. Together, Nvidia's cutting-edge chips and Microsoft's cloud and tools power the entire AI stack, pushing them ahead of their peers. Wedbush thinks Nvidia and Microsoft could touch $4 trillion in market cap this year and ride the AI wave to $5 trillion by next year. This bold call lands as Nvidia just reclaimed the top spot from Microsoft, hitting new highs. As of yesterday's close, Nvidia's market cap stood at $3.78 trillion, while Microsoft sported a $3.7 trillion market cap. Apple's the other tech giant in the $3 trillion club, and it was once the world's most valuable company. Veteran analyst Dan Ives, in his note, wrote, "The poster children for the AI Revolution are led by Nvidia and Microsoft, as both are foundational pieces of building on the biggest tech trend we have seen in our 25 years covering tech stocks on the Street." Related: Veteran Tesla bull drops surprising 3-word verdict on robotaxi ride AI use cases have exploded of late, from cybersecurity and software to chips and robotics. Nvidia CEO Jensen Huang believes robotics will be the next multi-trillion-dollar catalyst after AI. Ives agrees that the ripple effect is huge, that every dollar spent on Nvidia sparks another $8 to $10 across the wider tech world. In crunching the numbers, Microsoft's market cap has slipped 10.8% over the past year, losing about $400 billion. Conversely, Nvidia soared nearly 25%, adding $950 billion from its AI GPU boom. Stretch that to three years, and the gap gets even wider. Microsoft's up a robust 21%, but Nvidia's exploded 472% as it pivoted from gaming chips to the AI driver's seat. Wedbush's $4 trillion call equates to a 5.2% bump from Nvidia's current market cap and an 8.4% jump for Microsoft. Pushing to $5 trillion in 18 months ups the game, with Nvidia potentially rising 31.5% and Microsoft at 35.5%. Related: Tesla fires longtime insider as Europe slump deepens The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
2 days ago
- Business
- Yahoo
NVIDIA's AI Factory Buildouts Double: Can Rivals Still Compete Now?
NVIDIA Corporation's NVDA AI factory business is expanding rapidly and could help the company stay ahead of its rivals. In the first quarter of fiscal 2026, NVDA reported that nearly 100 NVIDIA-powered AI factories are currently in progress, twice the number from a year ago. Each factory is also using more graphics processing units (GPUs) than before, showing strong demand for large-scale AI compute infrastructure. These AI factories use more than just NVIDIA chips. They also rely on NVIDIA's networking tools (like NVLink and Spectrum-X), software platforms (such as CUDA and NeMo) and full-stack systems. This makes it harder for customers to switch to other providers. Hence, once customers choose NVIDIA, they often stay. Governments and large enterprises across the world, including Saudi Arabia, Taiwan, the United Arab Emirates and the European Union, are working with NVIDIA to build sovereign AI infrastructure. Hyperscalers like Microsoft and Google are also expanding their use of NVIDIA's full-stack systems. Competitors may offer lower-cost hardware, but replicating NVIDIA's end-to-end solution remains a challenge. With software optimization, ongoing performance improvements and strong developer support, NVIDIA continues to strengthen its grip on the AI infrastructure market. In simple terms, NVIDIA is not just selling chips but building the foundation for the AI world with its networking and software tools. If this trend continues, it may become even harder for competitors to catch up. Two competitors, Advanced Micro Devices, Inc. AMD and Intel Corporation INTC, are also trying to grow in the AI infrastructure space, but they are far behind NVIDIA when it comes to AI factory buildouts. Advanced Micro Devices is gaining attention with its Instinct MI300X chips, which are designed for large AI workloads. Some major cloud companies like Microsoft and Meta are testing AMD's GPUs. However, Advanced Micro Devices does not yet offer a full-stack solution like NVIDIA. It lacks networking hardware and software tools at the same level as CUDA or NeMo. Intel is promoting its Gaudi 3 AI chips as a low-cost option for training and inference. However, Intel's AI ecosystem is still developing, and its overall AI market share remains small. It also does not offer a complete package that ties chips, software and networking together. Both companies are making progress, but NVIDIA's complete system gives it a strong lead. Shares of NVIDIA have risen around 15.1% year to date against the Zacks Computer and Technology sector's gain of 4.4%. Image Source: Zacks Investment Research From a valuation standpoint, NVDA trades at a forward price-to-earnings ratio of 32.25, higher than the sector's average of 26.91. Image Source: Zacks Investment Research The Zacks Consensus Estimate for NVIDIA's fiscal 2026 and 2027 earnings implies a year-over-year increase of approximately 42.1% and 31.8%, respectively. The estimates for fiscal 2026 and fiscal 2027 have been revised upward in the past 30 days and seven days, respectively. Image Source: Zacks Investment Research NVIDIA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Miami Herald
3 days ago
- Business
- Miami Herald
Veteran analyst drops bold new call on Nvidia stock
You can't talk about artificial intelligence without running into Nvidia (NVDA) . It's wild how a gaming chipmaker is now basically the face that runs the show in AI. Don't miss the move: Subscribe to TheStreet's free daily newsletter From data centers to cloud platforms, and from edge devices to the conversations shaping the future of tech, it's Nvidia all the way. Nvidia's ubiquitous GPUs are at the heart of training large language models (LLMs) and accelerating robotics, dominating the most mission-critical chips on the planet. Trillions in market cap later, Nvidia is still getting the love from Wall Street. Sure, Nvidia stock has wobbled, but a new forecast suggests there's still a ton of firepower ahead. Nvidia has effectively become the engine room of the AI frenzy. Its GPUs run roughly 90% of the world's AI data centers, and tech giants including Amazon, Microsoft, Google, and Meta continue gravitating to its silicon architectures. Moreover, its competitive edge in AI goes beyond chips. Its powerful CUDA platform, for instance, is arguably the backbone of AI software, locking in millions of developers looking to optimize their work for Nvidia chips. On the model side, tools such as TensorRT and NeMo help developers run AI systems easily and efficiently. Also, for businesses looking to avoid building massive infrastructure, Nvidia offers DGX Cloud, fully loaded AI clusters you can rent on demand. Related: Veteran Wall Street firm makes surprise call on tech stocks An AI powerhouse like CoreWeave helps run it, with analysts predicting it could be a $10 billion long-term revenue stream. Hence, this end-to-end stack allows Nvidia to dominate the AI value chain. It's also why hyperscalers shell out a ton of money on their Nvidia budgets, knowing an alternative path would fracture their entire pipeline. So it's no surprise that Nvidia stock has gone parabolic over the past few years. For context, its share price surged from $24 at the end of January 2022 to about $134.27 by December 31, 2024, an astonishing 449% gain. This breakneck surge mirrors the explosive growth of its AI-led data-center business. In the fourth quarter of FY 2022, its data center sales were at $3.3 billion. By Q4 FY 2024, though, it stood at an eye-popping $18.4 billion - a 458% jump in just a couple of years. And as we look ahead, it seems the AI buildout is just getting started. McKinsey sees global AI and data-center investment hitting $5.2 trillion by 2030, on the back of a double-digit bump in AI-ready capacity. In Q1 2025 alone, cloud infrastructure spending hit $90.9 billion, up 21% year-over-year, according to Canalys. Nvidia hogged the spotlight Wednesday after Loop Capital jacked up its price target in a big way. In setting a new Wall Street high for Nvidia, Loop Capital analyst Ananda Baruah raised his price target to $250 from $175. He feels hyperscaler and AI spending could hit $2 trillion by 2028, with Nvidia riding that wave to a $6 trillion market cap. More Tech Stock News: OpenAI's Altman slams Mark Zuckerberg, ignites dramaWall Street rallies behind Marvell Technology stock after blockbuster AI showcaseStruggling EV semiconductor company files for bankruptcy He added that Nvidia owns "critical tech" and has the pricing power to match, as hyperscaler continues to grow over time. Loop Capital's new $250 target is nothing short of extraordinary. When stacked against Wall Street's $172.60 consensus target, that implies a roughly 44% premium, towering even higher than the current "high" estimate of $220. So far this year, Nvidia stock has quietly gained nearly 10%, starting the year in the high $130s and climbing to the low $150s by late June. It has continued to crush expectations in its data-center division, with more than 70% year-over-year growth in Q1, while next-gen chip pre-orders pile up. Add in software momentum, and analysts say there is still plenty of upside remaining in this AI bellwether. Related: Circle stock goes parabolic after Capitol Hill surprise The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Business Insider
4 days ago
- Business
- Business Insider
Nvidia Stock Nears Peak Again After 50% Rally — Will It Keep Rising?
Nvidia (NVDA) stock is back in the spotlight. The stock surged 2.6% on Tuesday to close at $147.90, its highest level since January, and is now less than 1% below their all-time high of $149.43. After a 50% rally from its April low of just over $96, and with strong demand trends in AI and new analyst upgrades, many believe NVDA could break out to new highs in the days ahead. Confident Investing Starts Here: The sharp rebound follows a rough start to the year, when Nvidia shares tumbled over 35% amid U.S.-China tensions, chip export bans, and rising Chinese competition. But with momentum back and confidence returning, Nvidia's sharp turnaround is grabbing Wall Street's attention once again. What's Driving the Comeback? A major turning point came with Nvidia's first-quarter results on May 28. Despite losing billions in revenue from a U.S. export ban on its advanced chips to China, Nvidia still beat analyst estimates. Revenue remained strong, helped by demand from other regions and robust orders for AI infrastructure. At the same time, Nvidia signed major supply deals with Saudi Arabia and the UAE, part of a growing trend of 'sovereign AI' as countries invest in their own data centers and computing stacks. These wins helped restore confidence in the company's long-term growth story. Since the earnings report, Nvidia stock has jumped more than 9%, well ahead of the S&P 500's (SPX) 3.5% gain over the same period. Wall Street Analysts See More Upside Ahead Wall Street analysts remain bullish about Nvidia's growth prospects. They believe that Nvidia's strength across the board, from its H100 and new Blackwell chips to its CUDA software, gives it a big lead in the AI market. Recently, Barclays' five-star-rated analyst Thomas O'Malley reiterated his Buy rating on NVDA stock and increased his price target from $170 to $200 per share. The new target price signals an impressive 35% upside from the current levels. O'Malley believes Nvidia will beat expectations in the second half of the year, thanks to stronger sales from its Compute division. He sees $2 billion more in revenue than expected for the July quarter alone. He forecasts $42 billion in Compute revenue for Q3 and $48 billion for Q4, both higher than Wall Street's estimates. Overall, the analyst believes that growing chip production, rising system sales, and strong demand should help Nvidia boost its profits in the second half of the year. What Is Nvidia's Stock Forecast? According to TipRanks, NVDA stock has a Strong Buy consensus rating based on 35 Buys, four Holds, and one Sell assigned in the last three months. At $173.19, the Nvidia average share price target implies a 17.10% upside potential.
Phone Arena
4 days ago
- Business
- Phone Arena
Nvidia's entry-level RTX 50-series card has officially landed
The GeForce RTX 5050 for desktops and laptops is here and it's Nvidia's way of making its new Blackwell RTX tech more affordable and finally putting it in reach for a lot more gamers. Nvidia just dropped the GeForce RTX 5050, the most entry-level member of its RTX 50-series lineup. It's launching in the back half of July, and it'll set you back $ this little guy comes with 2,560 CUDA cores based on the new Blackwell architecture – which is like a dedicated CPU in the GPU that uses AI to optimize stuff in real time, 8 GB of GDDR6 memory on a 128-bit interface and a 130W power draw. So yeah, you'll still need to plug in a 6-pin or 8-pin connector. Boost clocks go up to 2,570MHz, though some models from board partners will probably push it a bit further with factory overclocks. You also get 5th-gen tensor cores for AI stuff (up to 421 TOPS) and 40 TFLOPs of ray tracing performance. Not bad for a budget card. And in case you forgot, Nvidia skipped the desktop RTX 4050 entirely. So yeah, this is technically the first xx50-class desktop card we've seen since the RTX 3050. But here's the kicker – the 5050 actually shares a lot of specs with the old 3050: same CUDA core count, same memory size, same TGP. CUDA cores are basically Nvidia's version of tiny processors inside your GPU that handle all the heavy lifting for graphics, gaming, and parallel computing tasks – more CUDA cores usually means more power to crunch frames, effects, and data faster. Nvidia's performance charts are, let's just say, less than helpful, but the company says the RTX 5050 is 60% faster (on average) in traditional rasterized games compared to the 3050. Compared to the previous gen, the new one is indeed better. | Image credit – Nvidia There's no Founders Edition this time around, but all the big names – Asus, MSI, Gigabyte, Galaxy, Zotac, etc. – will be rolling out their versions of the card. Should you care about it? One big thing the RTX 5050 brings to the table is support for DLSS 3.5's Multi-Frame Generation. That's a first for the xx50 tier. DLSS 3.5 is Nvidia's latest take on its AI-powered upscaling magic – and this time, it's not just about boosting frame rates. The big headline feature here is Ray Reconstruction, which basically replaces traditional hand-coded denoisers in ray-traced games with a smarter AI Instead of guessing what a reflection or shadow should look like, DLSS 3.5 uses trained neural networks to fill in the details more accurately. That means sharper lighting, cleaner reflections, and less visual noise, especially in games with heavy ray tracing. But in the real world, DLSS 3.5 is one of those buzzword-y features Nvidia keeps pushing hard, and that at this point, still feels more like an ambitious idea than a flawless solution. Yes, it can boost frame rates by generating extra frames with AI, but especially in lower-end cards like the 5050, the effect might not always be things might just look... weird. It sounds cool and the tech has big potential down the line, but most non-hardcore gamers won't even notice the difference and the ones who do probably care more about raw power and guaranteed high settings than fancy frame-gen tricks. Then again, this card clearly isn't built for that crowd anyway. Plus, not every game supports all DLSS features. You'll need both developer support and compatible hardware. So, if a game doesn't support DLSS, you're mostly just getting a slightly more efficient version of the RTX 3050 with updated Blackwell architecture and faster clocks. For around $50 more, the RTX 5060 is noticeably better. | Image credit – Nvidia And if you're hoping it's just a cut-down 5060, well… not quite. The 5060, found in one of Asus' latest entry-level gaming laptops, has 50% more CUDA cores and way more memory bandwidth thanks to its GDDR7 memory. The 5050, on the other hand, is the only Blackwell GPU so far still rocking GDDR6. That's probably a cost-cutting move, but still – it's a bit of a letdown, especially since even the mobile RTX 5050 gets GDDR7. Speaking of which, yes – there's a laptop version of the 5050, too. That one's already shipping in machines starting at $999 and thanks to GDDR7's better power efficiency, those laptops should stay cooler and slimmer. At $249, the RTX 5050 feels... familiar. Maybe a little too familiar. For around $50 more, the RTX 5060 offers 50% more cores and noticeably better specs across the board. So yeah, unless your budget has a hard ceiling, you're probably better off going a step higher. The 5050 doesn't look like a bad card and DLSS 3.5 support helps, but overall, it feels more like a way to say "hey, we finally made a cheap Blackwell card" than something meant to shake up the budget GPU space. Secure your connection now at a bargain price! We may earn a commission if you make a purchase Check Out The Offer
