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Raymond James Lifts PT on Micron Technology (MU) Stock to $150 from $120
Raymond James Lifts PT on Micron Technology (MU) Stock to $150 from $120

Yahoo

time30-06-2025

  • Business
  • Yahoo

Raymond James Lifts PT on Micron Technology (MU) Stock to $150 from $120

Micron Technology, Inc. (NASDAQ:MU) is one of the Top 10 AI and Technology Stocks to Buy According to Analysts. On June 26, Raymond James analyst Srini Pajjuri upped the price target on the company's stock to $150 from $120, while keeping an 'Outperform' rating. The firm highlighted Micron Technology, Inc. (NASDAQ:MU)'s fiscal Q3 2025 results and Q4 2025 outlook, both of which surpassed the consensus expectations. The company saw revenue of $9.30 billion compared to $8.05 billion in the prior quarter and $6.81 billion in the same period of the last year. A close-up view of a computer motherboard with integrated semiconductor chips. As per the firm, gross margins showcased better performance than the expectations. They are anticipated to expand further, thanks to the pricing and mix tailwinds. The firm noted that Micron Technology, Inc. (NASDAQ:MU)'s High Bandwidth Memory (HBM) revenue saw an increase of ~50% quarter-over-quarter. The company's HBM4 roadmap seems to be solid, potentially allowing for further market share gains in 2026. Micron Technology, Inc. (NASDAQ:MU) remains on track to deliver record revenue with solid profitability and FCF in fiscal 2025 amidst disciplined investments to build on the technology leadership and manufacturing excellence in order to satisfy increased AI-driven memory demand. On a GAAP basis, the company expects revenue of $10.7 billion (± $300 million) and gross margin of 41.0% (± 1.0%) in Q4 2025. Micron Technology, Inc. (NASDAQ:MU) manufactures advanced memory and storage products that are important components in AI systems for handling data processing as well as training workloads. While we acknowledge the potential of MU to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MU and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds' investor letters by entering your email address below.

‘Don't Count Nvidia Out Yet,' Says Raymond James on This AI Stock
‘Don't Count Nvidia Out Yet,' Says Raymond James on This AI Stock

Globe and Mail

time21-05-2025

  • Business
  • Globe and Mail

‘Don't Count Nvidia Out Yet,' Says Raymond James on This AI Stock

AI giant Nvidia (NVDA) is set to report its Q1 FY26 earnings results next week on May 28. Analysts expect earnings of $0.89 per share on revenue of $43.18 billion for the quarter. Despite some near-term challenges, Raymond James Top analyst Srini Pajjuri has reiterated a Strong Buy rating on NVIDIA stock with a $150 price target. His confidence is based on Nvidia's steady revenue growth, supported by strong Blackwell momentum and emerging opportunities in the Middle East, signaling that investors should not count the company out just yet. Confident Investing Starts Here: The analyst outlines key points to watch for in the quarter and explains why he remains optimistic about Nvidia's long-term growth. Revenue Momentum to Continue, Though Near-Term Risk Looms Pajjuri points out that NVDA has added about $4–5 billion in revenue sequentially each quarter for the past six quarters. He expects this growth trend to mostly continue in Q2 FY26, driven by strong demand for Blackwell. However, the analyst warns that the H20 export restriction could reduce revenue by about $4 billion in Q1, especially in China, leading to limited upside for this quarter. Second-Half Outlook Remains Bright Despite this short-term challenge, Pajjuri thinks NVIDIA's management will stay positive about the second half of the year. He points to sustained investment from top cloud providers like Amazon (AMZN), Microsoft (MSFT), and Google (GOOGL), which he believes will drive continued strength in AI infrastructure spending. In addition, Pajjuri points to recent changes in U.S. AI diffusion rule policies, which could ease export limits and partially offset the China-related slowdown. Middle East Adds Fuel to Growth Story Looking further ahead, Pajjuri highlights the Middle East as an 'emerging driver' for NVIDIA's long-term growth. Just last week, the company announced a partnership with Humain, an AI firm backed by Saudi Arabia's Public Investment Fund. Together, they plan to build AI data centers, called 'AI factories,' in Saudi Arabia. These facilities will be powered by up to 500 megawatts and will use hundreds of thousands of NVIDIA's top GPUs over the next five years. The analyst believes that growing AI demand in the region could keep Blackwell momentum going through 2026, helping to ease worries that global AI spending is slowing down. Margin Guidance Likely to Hold Steady Finally, the analyst expects Nvidia to maintain its profitability targets. He anticipates that management will reiterate its prior guidance for gross margins in the mid-70% range by the end of calendar year 2025. This, he contends, reflects the company's strong pricing power and continued operational efficiency. Is Nvidia Stock a Buy, Sell, or Hold? With 34 Buys, five Holds, and one Sell recommendation, Nvidia stock scores a Strong Buy consensus rating. The average NVDA stock price target of $164.51 implies about 21.35% upside potential. See more NVDA analyst ratings Disclaimer & Disclosure Report an Issue

Wall Street Is Screaming to Buy Nvidia Stock Hand Over Fist Right Now. Should You Listen?
Wall Street Is Screaming to Buy Nvidia Stock Hand Over Fist Right Now. Should You Listen?

Yahoo

time25-04-2025

  • Business
  • Yahoo

Wall Street Is Screaming to Buy Nvidia Stock Hand Over Fist Right Now. Should You Listen?

Nvidia (NASDAQ: NVDA) is down roughly 30% below its previous high. This isn't a new experience for the stock. Since its initial public offering (IPO) in 1999, Nvidia's share price has plunged by that amount or more from its previous peak eight other times. Importantly, Nvidia eventually rebounded strongly every time in the past after a steep sell-off. With that in mind, it's probably not surprising that Wall Street is screaming to buy Nvidia stock hand over fist right now. But should you listen? Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Nine analysts have issued ratings on Nvidia in the second half of April. Eight recommend buying the stock. Raymond James views Nvidia as a "strong buy." The lone outlier who didn't join in the loud chorus for Nvidia was D.A. Davidson. This financial services company is headquartered far away from Wall Street in Great Falls, Montana. But even D.A. Davidson has a "neutral" recommendation for Nvidia and a price target that reflects an upside potential of 15%. Yahoo! Finance scores analysts based on the accuracy of their stock ratings and price targets. Guess how many of the top 10 analysts on this scorecard recommend buying Nvidia stock? Pat yourself on the back if your answer was all of them. The average analysts' 12-month price target for Nvidia is a whopping 58% higher than the current share price. Some top analysts are even more bullish. For example, Cantor Fitzgerald and Rosenblatt both recently came out with a price target of $200, reflecting an upside potential of roughly 92%. Wall Street's consensus is that Nvidia is a great stock to buy hand over fist right now. Why such enthusiasm? Many analysts remain convinced that Nvidia's growth prospects will continue to be strong. For example, Raymond James analyst Srini Pajjuri recently wrote to clients that Nvidia's forward price-to-earnings multiple, which was then at 27x, already reflects risks related to exporting H20 GPUs to China. Pajjuri noted that the company's Blackwell GB200 chip shipments are increasing with the new GB300 chips on track to begin shipping in Nvidia's fiscal third quarter. He predicted these factors "should help sustain momentum through the year." What about worries that Amazon, one of Nvidia's biggest customers, is hitting the pause button on leasing new space for data centers? Sure, Wells Fargo suggested this was happening in a report to its clients. However, Kevin Miller, vice president of global data centers for Amazon Web Services, addressed the issue head-on in a recent LinkedIn post: Wall Street doesn't appear to be overly concerned about rising competition for Nvidia, either. That's not surprising to me, considering what former Intel CEO Pat Gelsinger recently said in an interview with Yahoo! Finance's Brian Sozzi. Gelsinger told Sozzi that it would be very difficult for any rival to knock Nvidia off its perch. He said, "I've always viewed that there's sort of this 10x rule, where if you're not 10x better than the king, you're not going to displace that." No competitor has chips anywhere close to being 10x better than Nvidia's most powerful GPUs. Should you listen to Wall Street about buying Nvidia stock? Yes and no. No investor should buy any stock solely because an analyst recommended it. It's always important to do your own research. Your investing goals or risk tolerance could cause you to avoid a stock that Wall Street loves -- and that's OK. However, I think Wall Street is right about Nvidia. The latest pullback presents a great buying opportunity for long-term investors. When Nvidia has traded at such a discount in the past, it was something worth screaming about. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $266,353!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $38,790!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $566,035!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of April 21, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Wells Fargo is an advertising partner of Motley Fool Money. Keith Speights has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Intel, and Nvidia. The Motley Fool recommends the following options: short May 2025 $30 calls on Intel. The Motley Fool has a disclosure policy. Wall Street Is Screaming to Buy Nvidia Stock Hand Over Fist Right Now. Should You Listen? was originally published by The Motley Fool

Time to 'panic' or 'overblown'? Wall Street weighs how DeepSeek could shake up the AI trade
Time to 'panic' or 'overblown'? Wall Street weighs how DeepSeek could shake up the AI trade

Yahoo

time27-01-2025

  • Business
  • Yahoo

Time to 'panic' or 'overblown'? Wall Street weighs how DeepSeek could shake up the AI trade

AI stocks fell across the board Monday as the investment community absorbed news of a potentially more cost-effective Chinese AI model — and began to question the Western world's gargantuan spending on AI infrastructure. Chinese AI startup DeepSeek released a new generative AI model called R1 last week aimed as a competitor to OpenAI. Analysts have cited DeepSeek's models as more cost-effective, as DeepSeek said recently that it spent just $5.6 million to train another one of its latest models, V3, while OpenAI spent more than $100 million to train its GPT-4 model. Nvidia (NVDA) fell as much as 15% Monday, shaving off hundreds of billions from the AI chip giant's market cap and putting short sellers up $5 billion, per data from S3 Partners. Meanwhile, rival Advanced Micro Devices (AMD) dropped around 5%, and Broadcom (AVGO) plunged more than 13%. The broader markets also suffered: The S&P 500 (^GSPC) was down 1.6% Monday morning, while the tech-heavy Nasdaq (^IXIC) dropped 2.8%. "The performance of the DeepSeek models developed in China may have a very profound impact on the US AI companies," DA Davidson analyst Gil Luria told Yahoo Finance in an email. "The models from DeepSeek are performing as well as the most advanced models developed in the US at a small fraction of the price." 'That means US hyperscalers such as Microsoft (MSFT), Amazon (AMZN), Google (GOOG) and other[s] may be severely overinvesting in their data center buildout,' he added. 'If companies can run AI models with very little compute, they do not need data centers with hundreds of thousands of NVDA GPUs.' Raymond James analyst Srini Pajjuri echoed those sentiments in a late Sunday note. 'DeepSeek clearly doesn't have access to as much compute as U.S. hyperscalers and somehow managed to develop a model that appears highly competitive,' Pajjuri wrote. US President Donald Trump last week announced a venture called Stargate backed by OpenAI, SoftBank, and Oracle (ORCL), which would immediately invest $100 billion in US AI infrastructure (i.e., data centers) and spend an additional $400 billion over the next four years. Shortly after that announcement, Meta (META) said it would significantly ramp up its capital expenditures to as much as $65 billion in 2025. 'We think investors should take the innovation from China seriously, as it puts into question whether the current pace of capex spend/technology upgrades is necessary," CFRA analyst Angelo Zino said Monday. 'We think heightened risks may cause multiples for leading edge chipmakers to compress, with those most at risk being NVDA, MRVL, AVGO, AMD, and MU,' he added. Damindu Jayaweera, an analyst with UK investing firm Peel Hunt, told Yahoo Finance that the DeepSeek news means Nvidia's AI chip prices may come under pressure from 'people getting more performance out of its chips." But Jayaweera added that shift could also create more demand for Nvidia chips 'beyond the current Big Tech stronghold on supply.' 'I think while there will likely be a sentiment impact on Nvidia near-term where people think Big Tech is going to pause AI capex, medium to longer-term, we think there is potential for greater volumes, albeit at lower margins,' Jayaweera told Yahoo Finance in an email. Peel Hunt does not cover Nvidia and Jayaweera does not hold an official rating on the stock. Some Wall Street analysts were more skeptical of the buzz around DeepSeek, however. Bernstein's Stacy Rasgon said DeepSeek likely spent more money training its V3 model than it reported. He said the spending cited by the firm is 'misunderstood' and does not include costs associated with prior research. '[I]t seems categorically false that 'China duplicated OpenAI for $5M,'' Rasgon wrote in a note to investors Monday, adding, 'the resulting Twitterverse panic over the weekend seems overblown.' "We have no way to know whether DeepSeek's claims about the type of GPUs, the number of GPUs, or the time to train its model are true," William Stein of Truist Securities added in a note to investors Monday. Citi analyst Atif Malik said in his own note that he doesn't see advanced AI chipmakers' business coming under pressure: 'We see the recent AI capex announcements like Stargate as a nod to the need for advanced chips.' The DeepSeek buzz comes as Big Tech earnings season gets underway, with Microsoft, Meta, and Tesla (TSLA) all set to report earnings Wednesday. Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @ Email her at Sign in to access your portfolio

Nvidia, chip stocks plummet amid market sell-off as DeepSeek prompts questions over AI spending
Nvidia, chip stocks plummet amid market sell-off as DeepSeek prompts questions over AI spending

Yahoo

time27-01-2025

  • Business
  • Yahoo

Nvidia, chip stocks plummet amid market sell-off as DeepSeek prompts questions over AI spending

Nvidia (NVDA) stock dropped more than 11% in premarket trade on Monday, leading a sell-off across chip stocks and the broader market after a new AI model from China's DeepSeek raised questions about AI investment and the rise of more cost-efficient artificial intelligence agents. Chinese startup DeepSeek released a new AI model on Jan. 20 viewed as a threat to OpenAI. American venture capitalist Marc Andreessen called the model 'one of the most amazing and impressive breakthroughs I've ever seen.' The news came just a month after DeepSeek said one of its latest AI models cost just $5.6 million to train. Meanwhile, OpenAI's GPT model cost more than $100 million to train. The announcements spurred fears that AI models may begin to require fewer chips and energy than they currently use. Nvidia has grown to the be the world's largest company on the back of exploding demand for its high-end chips that help train AI models. 'If DeepSeek's innovations are adopted broadly, an argument can be made that model training costs could come down significantly even at U.S. hyperscalers, potentially raising questions about the need for 1-million XPU/GPU clusters as projected by some,' wrote Raymond James semiconductor analyst Srini Pajjuri in a note to investors Sunday evening. Chip stocks also dropped across the board premarket Monday, with Broadcom (AVGO) down nearly 12%, Micron (MU) off almost 8%, and Advanced Micro Devices (AMD) down over 4%. However, Pajjuri continued, 'A more logical implication is that DeepSeek will drive even more urgency among U.S. hyperscalers to leverage their key advantage (access to GPUs) to distance themselves from cheaper alternatives.' Bernstein analyst Stacy Rasgon also called into question the $5.6 million training cost for DeepSeek's model, which ' does not include all the other costs associated with prior research and experiments on architectures, algorithms, or data.' Rasgon believes DeepSeek's announcement was "not really worthy of the hysteria that has taken over the Twitterverse over the last several days." Tightened US export restrictions announced in former president Joe Biden's final days in office could also add a threat to DeepSeek's ability to continue training new models. The new rules limit China's ability to buy Nvidia's AI chips through resellers and to access chips in remote data centers. And China is restricted from importing the most advanced chipmaking machines required to make AI chips from the Dutch firm ASML (ASML). At the same time, the US is ramping up investment in its own AI infrastructure. President Trump last week announced the Stargate AI project, which plans to immediately invest $100 billion to build US data centers and other infrastructure — with funding from SoftBank, Oracle, OpenAI and UAE-based MGX — to power generative artificial intelligence. The project would include another $400 billion in spending over the next four years. Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @ Email her at Sign in to access your portfolio

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