Latest news with #trillionDollarCompanies
Wall Street Journal
04-07-2025
- Business
- Wall Street Journal
Microsoft and Nvidia Are the Odd $4 Trillion Power Couple
Nvidia NVDA 1.33%increase; green up pointing triangle and Microsoft MSFT 1.58%increase; green up pointing triangle could soon become $4 trillion companies, forming the most exclusive club in the stock market. Enthusiasm over artificial intelligence is what got both of them there. But for Microsoft, the story is more complicated—and the payoff fuzzier.
Globe and Mail
28-06-2025
- Business
- Globe and Mail
Microsoft Stock (MSFT) Hits All-Time High as AI Trade Comes Roaring Back
Microsoft's (MSFT) stock is at an all-time high on June 27 and on the cusp of breaking above $500 a share as the artificial intelligence (AI) trade comes roaring back. Confident Investing Starts Here: MSFT stock was trading at $499.30 at noon hour and could close above $500 a share on a split adjusted basis. The current rally coming off April lows has pushed Microsoft's share price up 19% this year and put its market capitalization at $3.70 trillion, second only to Nvidia (NVDA) at $3.84 trillion. Analysts and traders on Wall Street are now debating which technology giant will be the first to reach a $4 trillion market cap, Microsoft or Nvidia. Several analyst have also been raising their ratings and price targets on MSFT stock during its current bull run. Wedbush tech analyst Daniel Ives recently raised his price target on Microsoft's shares to $600 from $515 while reiterating a Buy rating on the stock. Bullish Sentiment Analysts and investors are turning increasingly bullish on Microsoft as sentiment towards artificial intelligence (AI) again turns positive. The Seattle-based technology giant's share price has also been rising since the company reported strong first-quarter financial results in May that showed hefty growth in the Azure cloud computing unit. More recently, reports have surfaced that the Windows maker is planning to cut thousands of jobs as it looks to reduce its labor costs while increasing its AI spending. Microsoft is seen as a leader in generative AI and is cascading the technology across its various business segments and consumer-facing products. Is MSFT Stock a Buy? Microsoft's stock has a consensus Strong Buy rating among 35 Wall Street analysts. That rating is based on 30 Buy and five Hold recommendations issued in the last three months. The average price target on MSFT stock of $521.41 implies 4.71% upside from current levels. Disclaimer & Disclosure Report an Issue
Globe and Mail
18-06-2025
- Business
- Globe and Mail
The Best Trillion-Dollar Stock to Buy Right Now? Wall Street Has a Clear Answer for Investors.
Ten public companies have achieved a market value exceeding $1 trillion as of June 16. They are listed below in descending order based on upside implied by the median target price set by Wall Street analysts. Nvidia (NASDAQ: NVDA) has a median target price of $175 per share. That implies 21% upside from its current share price of $145. Apple has median target price of $235 per share. That implies 18% upside from its current share price of $198. Broadcom has a median target price of $290 per share. That implies 15% upside from its current share price of $252. Alphabet has a median target price of $200 per share. That implies 13% upside from its current share price of $177. Amazon has a median target price of $240 per share. That implies 11% upside from its current share price of $216. Microsoft has a median target price of $510 per share. That implies 6% upside from its current share price of $479. Taiwan Semiconductor Manufacturing has a median target price of $225 per share. That implies 4% upside from its current share price of $216. Berkshire Hathaway has a median target price of $490 per share. That implies 0% upside from its current share price of $490. Meta Platforms has a median target price of $700 per share. That implies less than 1% downside from its current share price of $702. Tesla has a median target price of $306 per share. That implies 7% downside from its current share price of $329. Wall Street clearly sees Nvidia as the best trillion-dollar stock to buy right now. Here's what investors should know about the chipmaker. Nvidia is a market leader in AI chips and networking gear Nvidia is the market leader in data center graphics processing units (GPUs), chips used to accelerate artificial intelligence (AI) training and inference tasks. The company is also the market leader in InfiniBand networking equipment, the leading connectivity technology for back-end AI networks. Importantly, Nvidia has struggled with two headwinds throughout the year. First, Chinese start-up DeepSeek developed sophisticated large language models using fewer GPUs than U.S. competitors, causing investors to worry demand would decline. Second, the Trump administration restricted the export of H20 GPUs built for the Chinese market, effectively preventing Nvidia from operating in the country. Nvidia more or less put the first concern to rest with impressive first-quarter financial results that exceeded expectations on the top and bottom lines. Revenue increased 69% to $44 billion due to what CEO Jensen Huang characterized as "incredibly strong" demand for Nvidia AI infrastructure. And non-GAAP (adjusted) net income jumped 33% to $0.81 per diluted share. However, while first-quarter results show robust demand, export controls still hurt Nvidia. The company took a $4.5 billion charge due to excess H20 inventory, and adjusted earnings would have increased 57% to $0.96 per diluted share had the Trump administration not imposed new restrictions. Huang also said the company will miss out on $8 billion in sales in the July-ending quarter. Nevertheless, Morgan Stanley believes the downside related to export restrictions is fully priced into the stock and that Nvidia will eventually be able to participate in the Chinese market to some degree. "China is entirely derisked, at least for direct shipments, and we are optimistic that there will be some path to monetize at least a portion of that demand," analysts wrote in a recent note. Grand View Research estimates the data center GPU market will expand at 28.5% annually through 2030, while spending across AI hardware, software, and services increases at 35.9% annually during the same period. Nvidia is exceptionally well positioned to benefit from that explosive growth. Nvidia stock trades at a reasonable price Wall Street expects Nvidia's adjusted earnings to increase at 40% annually through the fiscal year ending January 2027. That makes the current valuation of 45 times adjusted earnings look reasonable, especially when Nvidia beat the consensus estimate by an average of 4% in the last six quarters. As a caveat, the semiconductor industry is cyclical, meaning Nvidia's sales tend to ebb and flow as companies intermittently invest in chips and other data center infrastructure. For instance, revenue growth could slow toward the beginning of fiscal 2027 as the company ramps up production of its next-generation Rubin GPU (slated to launch in the second half of next year). However, investors should also bear in mind that Nvidia has a substantial opportunity in its often overlooked automotive and robotics segment, which currently accounts for less than 2% of total sales. Generative AI has been in the spotlight since ChatGPT launched in late 2022, but Huang says the "ChatGPT moment" for autonomous cars and robots is right around the corner. Importantly, Nvidia has three computing platforms that address those markets: data center infrastructure to train models, a simulation engine to test those models, and embedded systems that handle on-board computing. Also, the company provides software tools that help developers build the necessary applications. Here's the bottom line: Nvidia enjoys a leadership position in a quickly growing market, and shares trade at a reasonable valuation. The stock price may be volatile over relatively short periods (i.e., months) due to the cyclical nature of the industry, but Nvidia still has a long runway for growth as the physical AI (autonomous cars and robots) market takes shape. Should you invest $1,000 in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks 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 $660,821!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $886,880!* Now, it's worth noting Stock Advisor 's total average return is791% — a market-crushing outperformance compared to174%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Trevor Jennewine has positions in Amazon, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, Taiwan Semiconductor Manufacturing, and Tesla. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
