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Yahoo
13 hours ago
- Business
- Yahoo
Nvidia Stock: Buy at the Current High?
Nvidia stock has surged 1,500% over the past five years -- and this week it reached a record high. The company has shown its strengths in the high-growth area of artificial intelligence, and that's translated into soaring revenue. 10 stocks we like better than Nvidia › Nvidia (NASDAQ: NVDA) has proven itself to be at the center of the artificial intelligence (AI) revolution. The company designs the most sought-after AI chips to power the performance of AI models and has expanded into a full range of AI products and services, from networking to enterprise software and even a new compute marketplace offering. All of these efforts have helped Nvidia's earnings roar higher, and the company ended the latest fiscal year at a record revenue level of $130 billion. To further illustrate the pace of growth, investors only have to look back two years. Then, Nvidia's annual revenue totaled $27 billion. Nvidia clearly has been a winner in this AI boom. This victory extends to stock price performance, with the shares climbing a jaw-dropping 1,500% over the past five years to reach a new high this week. Now the logical question is: Should you buy Nvidia at this high or wait for a lower entry point? Nvidia has played and surely will continue to play a pivotal role in the AI story. Nvidia sells the most powerful graphics processing units (GPUs) on the market and has designed a variety of other products to accompany them. So customers, for example, might use Nvidia GPUs along with its high-speed connection NVLink so processors can share data. Customers may opt for Nvidia application software to build AI agents and various AI workflows, or the company's infrastructure software to manage processes. And just recently, Nvidia launched DGX Cloud Lepton, a marketplace where developers can access GPUs from a variety of connected cloud providers. Thanks to its innovation throughout the AI universe, Nvidia has made itself an almost unavoidable option for most companies aiming to develop and apply AI to their businesses. Importantly, Nvidia also has been first to market with many of its products and services, allowing it to take the lead, and its ongoing innovation and this effort to continually offer customers more service options may keep it there. It's no surprise that all of this has resulted in soaring earnings -- rising in the double- and triple-digit percentages -- and high profitability on sales. Nvidia has maintained gross margin exceeding 70% during most quarters, only declining to 60% in the recent quarter due to a charge linked to lost sales in China. This leads me to the main risk to Nvidia right now, and that is its presence in that particular market, one that made up 13% of sales last year. The U.S. has imposed controls on exports of chips to China, blocking Nvidia's access to that market. The move prompted Nvidia to remove China from its sales forecasts due to being unable to predict what might happen. Nvidia surely would see higher growth if it could sell chips to China, but even without that market, growth is solid. It's important to remember that U.S. customers actually make up nearly half of Nvidia's total sales. Even in the worst scenario -- zero sales in China -- Nvidia's AI growth story remains bright. Even with growth going strong and the future looking bright, investors might wonder if buying Nvidia now, at a new high, is a good idea. The stock trades for 35 times forward earnings estimates, higher than a few weeks ago, but lower than a peak of more than 50 just a few months ago. Considering Nvidia's earnings track record, market position, and future prospects, this looks like a reasonable price -- even if it's not at the dirt cheap levels of a few weeks ago. Of course, stocks rarely rise in one straight line, so there very well could be a dip in the weeks or months to come, offering an even more enticing entry point. But it's very difficult to time the market and get in at any stock's lowest point. It's a better idea to buy at a reasonable price and hold on for the long term. And here's why: Nvidia's gains or losses over a period of weeks or one quarter, for example, won't make much of a difference in your returns if you hold onto the stock for several years. That's why you don't necessarily have to worry about buying at the high when you're a long-term investor, as long as the stock's valuation is fair. That's the case of top AI stock Nvidia right now, making it a buy -- even at the high. 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 $704,676!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $950,198!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy. Nvidia Stock: Buy at the Current High? was originally published by The Motley Fool
Yahoo
2 days ago
- Business
- Yahoo
Will Nvidia Hit $200 Per Share by 2026?
Nvidia's growth may be slowing, but it's still rapid. Demand for AI computing hardware continues to increase. Nvidia would be nearly a $5 trillion company if it hits $200 per share. 10 stocks we like better than Nvidia › Nvidia (NASDAQ: NVDA) has remained one of the most popular stocks in the market even after its unprecedented run-up since 2023. The demand for Nvidia's best-in-class graphics processing units (GPUs) hasn't let up because AI computing capacity hasn't come close to being fulfilled. There's plenty of upside left in the stock, but the next milestone is a $200 share price. Currently, Nvidia hovers around $145, but it has broken $150 before. This means the stock needs to rise about 40% to reach $200, but can it do that by the end of 2026? A $200 share price would mean that it would have a market cap close to $5 trillion. There's never been a $4 trillion company, let alone a $5 trillion one. So if it hits $200 and continues to rise just a bit, it would make a record along the way. But that's what the stock has been about over the past few years. We've never seen a company of Nvidia's size grow as rapidly as it has, let alone sustain that growth over a three-year time span. In the 2026 fiscal first quarter (ended April 28), revenue rose 69% year over year to $44.1 billion, and second-quarter growth is expected to be about 50% year over year. This is all because of the vast demand it is experiencing. GPUs have become the computing hardware of choice for AI models, mainly due to their ability to handle intense workloads. They can process multiple calculations in parallel, and units can be combined in clusters to amplify that effect. This allows these data centers to train AI models on vast data sets that would take years for a traditional PC to process. Even though demand for Nvidia's GPUs is already high, it's expected to increase even more over the next few years. The AI hyperscalers have announced record spending for this year. But building a data center is a multiyear task. As a result, investors shouldn't be surprised if the AI hyperscalers announce further increases over this year's already elevated levels. This backs up a third-party projection management cited during its 2025 GTC event that data center capital expenditures were $400 billion in 2024 and are expected to increase to $1 trillion by 2028. If this comes true, the chipmaker's rapid growth will continue. Nvidia's business has the fuel to continue growing, but can it hit $200 per share by 2026? There are a few ways to calculate a future stock price. You could start at $200 and see what growth assumptions are built into that, or you could assume a valuation and apply expected increases, then check to see if that works with the stock price target. I prefer the latter method since it allows you to get an estimated stock price, even if it isn't the answer you expected. Wall Street analysts expect $200 billion in revenue for fiscal 2026 and nearly $250 billion for fiscal 2027, indicating 53% and 25% revenue growth, respectively. Should the $250 billion revenue increase occur and the company has a profit margin of 50% (it's currently 52% but has been as high as 55%), then it would produce $125 billion in profit. Nvidia's share count has decreased over the past few years, but let's assume that today's share count is the same by the end of 2026. If that were the case, earnings per share (EPS) would be $5.12. Lastly, let's examine Nvidia's historical valuation to determine whether a $200 share price is reasonable. Nvidia's stock currently trades at 46 times trailing earnings. If we bumped that multiple down to 40 (to compensate for slowing growth), the stock price at the end of next year would be about $205. So, even with a few conservative estimates baked into the stock price (falling margins and a decreasing earnings multiple), Nvidia's stock would still have the growth necessary to hit $200 by the end of 2026. That makes it a smart buy, since the returns it would provide investors over the next year will likely crush the market. 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 $689,813!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $906,556!* Now, it's worth noting Stock Advisor's total average return is 809% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Keithen Drury has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy. Will Nvidia Hit $200 Per Share by 2026? 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
Bloomberg
2 days ago
- Business
- Bloomberg
Uber in Talks to Fund Kalanick Bid to Buy Pony AI Unit, NYT Says
Uber Technologies Inc. is in talks with founder Travis Kalanick to help fund his acquisition of the US arm of Chinese self-driving firm Pony AI Inc., the New York Times reported. Shares of both companies jumped in Thursday trading. The talks are preliminary, according to the Times, citing two unnamed people. Kalanick would run Pony if the deal is completed while continuing to lead his current company, CloudKitchens, the report cited the people as saying. Financial details of the potential transaction were not known, the report said.
Globe and Mail
3 days ago
- Business
- Globe and Mail
Top Analyst Views Microsoft Stock (MSFT) as a ‘Key Beneficiary of AI Adoption'
Joel Fishbein, a top analyst from Truist Securities, views tech giant Microsoft (MSFT) as a 'key beneficiary of AI [artificial intelligence] adoption,' due to the company's partnership with ChatGPT-maker OpenAI. The 5-star analyst reiterated a Buy rating on MSFT stock with a price target of $600, which indicates 23.5% upside potential from the current levels. Microsoft stock has risen 15.3% year-to-date. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Fishbein's bullish comments follow recent reports that Microsoft was considering halting its discussions with OpenAI on some vital issues, including the size of its future stake in the AI startup. OpenAI needs Microsoft's approval to transition into a for-profit structure. Reportedly, MSFT's existing commercial contract gives it access to OpenAI's technology until 2030. Let's look at other reasons supporting Fishbein's Buy rating on Microsoft stock. Truist Analyst Is Bullish on Upside in MSFT Stock Fishbein noted that Microsoft continues to work aggressively to sustain its early lead in the enterprise AI race. The top analyst's optimism is backed by several conversations with IT buyers and Truist's proprietary survey work. The analyst believes that Microsoft's advantage prevails across its infrastructure layer in the Azure cloud computing business and the application layer with its Copilots. Fishbein said that he sees many initiatives that will help Microsoft succeed in the AI space in both the near and long term. Based on his positive views, Fishbein expects MSFT stock to move higher, as the 'multiple levers in their AI strategy compound gains in the financial model.' To capture further growth, Microsoft is investing heavily in AI infrastructure. The company expects to spend $80 billion this year on building data centers to handle AI workloads. Meanwhile, Fishbein ranks 98th among more than 9,600 analysts tracked by TipRanks. His ratings have been successful 65% of the time, with an average return per rating of 18.7% over a one-year period. Is Microsoft Stock a Buy, Hold, or Sell? Most analysts covering Microsoft stock are bullish due to the company's solid fundamentals, AI tailwinds, and diversified revenue streams, including productivity software, cloud computing, and gaming, among others. With 30 Buys and five Holds, Microsoft stock scores a Strong Buy consensus rating. The average MSFT stock price target of $516.14 indicates 6.2% upside potential. See more MSFT analyst ratings
Forbes
4 days ago
- Business
- Forbes
How Business Leaders Can Leverage Blockchain And AI To Unlock New Opportunities
Daniel A. Keller, CEO and President of InFlux Technologies Limited and Flux. Blockchain and AI are increasingly becoming more integrated—the duo can work symbiotically to bolster one another. At its core, blockchain provides a decentralized, consensus-based infrastructure that enables AI solutions to operate without third parties controlling the data and algorithms. There's the privacy element as well. Blockchain can help companies address data privacy issues inherent in AI solutions that run on centralized Web2 platforms. Both of these technologies are continuously evolving. However, business leaders should embrace them sooner rather than later to avoid falling behind. The Key Business Benefits Of Using Blockchain And AI In Tandem Why should leaders embrace blockchain and AI sooner rather than later? Consider the benefits that both technologies can offer companies when used in tandem. Blockchain gives businesses more control and ownership over their data. Third-party platforms—cloud providers, social networks, etc.—can be fickle. Overnight, a third-party platform could change the rules of engagement, such as by raising costs or adding new content restrictions, that make it difficult, if not impossible, for companies to control their costs, maintain their operations and share their narratives. Blockchain breaks that grip of control from third parties. With blockchain, leaders can create cost-effective infrastructure that runs on their terms. As for AI, it can help companies streamline their operations, pinpoint issues in real time and personalize customer service, to name a few of the many use cases. However, AI comes with various risks, namely, data privacy issues and concerns about centralized data control and training when using publicly available platforms. In certain industries, such as healthcare and finance, the consequences that can stem from those risks are magnified. By using the decentralized, open-source infrastructure and consensus mechanisms that blockchain provides, leaders can more effectively safeguard their data—both at the input and output stages. Best Practices For Implementing Blockchain And AI Together Business leaders should adopt blockchain and AI before these technologies mature. The more they delay adoption, the further behind they risk falling. To effectively leverage both technologies, leaders should start by identifying how blockchain and AI can serve their business needs. They should focus on their strategic vision for the next six months to a year and then evaluate where blockchain and AI can fit in. Short iterations are vital, given how quickly both technologies are evolving; long planning cycles could render them obsolete before implementation. Once leaders have identified their strategic vision for the next six months to a year, they can research vendors and find one that aligns with their business needs. From there, they proceed to the implementation stage. There's room for flexibility here. Leaders shouldn't go all-in on adopting both technologies at once. In most cases, an incremental, scalable approach to implementing blockchain and AI will be more manageable. For instance, the executives of a local consulting firm might opt to stay in Web2 and keep 50% of their company's infrastructure there. It could move the other half of its infrastructure to Web3 and then gradually start migrating customers there. On that decentralized infrastructure, it could begin running AI tools that refine certain processes, such as client scheduling and communication. Over time, the consulting firm can move more of its infrastructure to Web3, increase the number of AI tools it runs and shift more customers. Following implementation, leaders should remain proactive in keeping their systems current. Blockchain and AI are rapidly changing, and by staying informed about those changes, leaders can pinpoint how they factor into their business needs. Risks—And How Business Leaders Can Navigate Them Business leaders should be aware that adopting blockchain and AI comes with risks. For instance, aside from technical complexity, another prominent risk is that both operate in an uncertain regulatory environment. Consider recent regulatory activity in the United States. According to TheStreet, on May 29, 2025, lawmakers 'introduced the Digital Asset Market Clarity (CLARITY) Act—a bill designed to finally bring clear regulations to the crypto and digital asset industry.' A June 3, 2025, StateScoop article noted that 'A bipartisan coalition of more than 260 state legislators from all 50 states on Tuesday sent a letter to Congress opposing a provision in the federal budget reconciliation bill that would impose a 10-year ban on state and local regulation of artificial intelligence.' The outcomes of these regulatory activities can have serious ramifications for businesses implementing blockchain and AI, making it paramount for leaders to stay informed about developments on the policy side. A new law could render a company's adoption of blockchain and AI noncompliant, requiring a costly overhaul to get back on track. Another significant risk is workforce disruptions. When a company switches to Web3 and starts implementing AI, its existing workforce will likely be restructured or cut. Leaders must carefully consider the potential workforce disruptions that may arise from leveraging blockchain and AI. However, now is the time for leaders to explore blockchain and AI. Acting proactively, rather than reactively, gives leaders the best chance at mitigating risks, leveraging blockchain and AI symbiotically to drive business results and staying ahead of their competitors. Ultimately, it's by embracing open-source, decentralized platforms and AI solutions that leaders can safeguard their costs, operations and narratives. Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
