Latest news with #GPU
Yahoo
12 hours ago
- Business
- Yahoo
Jim Cramer on Advanced Micro Devices: 'It's Going in the Right Direction'
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the stocks that Jim Cramer shed light on. A caller asked if Cramer thinks CEO Lisa Su can take the company to a trillion-dollar market cap, and he replied: 'I don't know, but it's going in the right direction. I mean, they obviously have now good GPUs. There's a GPU shortage everywhere. Stock's had a real big run off the bottom. I do think it could have a pullback, but I do think that she's got what it takes to be able to take that stock much higher.' Advanced Micro Devices (NASDAQ:AMD) is a global semiconductor company that designs and supplies microprocessors, graphics cards, chipsets, and embedded processors. On June 9, Cramer remarked: 'So traders say if I can't make money after Broadcom reporting a great quarter, the playbook says time to move into the lower quality, cheaper stocks that are less likely to disappoint or should never have been down to begin with. I understand the sentiment, but the problem is that these stocks have already rallied pretty hard, too…I saw some upgrades for AMD…. They've moved, especially AMD by the way, on speculation it might be involved with any China deal. Rare earth materials for us, AMD chips for them. While we acknowledge the potential of AMD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Se produjo un error al recuperar la información Inicia sesión para acceder a tu portafolio Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información
Yahoo
17 hours ago
- Business
- Yahoo
Better Cloud AI Stock: CoreWeave vs. DigitalOcean
Key Points CoreWeave's transformation from a crypto miner to a cloud GPU leader is paying off. DigitalOcean is expanding its cloud platform at a slower and steadier rate. The hare might beat the tortoise this time. 10 stocks we like better than CoreWeave › CoreWeave (NASDAQ: CRWV) and DigitalOcean (NYSE: DOCN) both help companies process artificial (AI) tasks with their cloud-based graphics processing units (GPUs). CoreWeave, previously a cryptocurrency mining company, mainly serves larger companies. DigitalOcean splits its servers into "droplets" for smaller businesses and developers. Each should be in a good position to profit from the explosive growth of the AI market. However, investors are clearly more bullish on CoreWeave, which went public at $40 in March but now trades at around $125. DigitalOcean trades at $29, which is nearly 40% below its initial public offering price of $47 from March 2021. Let's see which is the better cloud AI stock. The differences between CoreWeave and DigitalOcean CoreWeave was once an Ethereum (CRYPTO: ETH) miner, but it abandoned that business model in 2018 and started using its GPUs to remotely process AI tasks. In 2022, it spent about $100 million to install Nvidia's (NASDAQ: NVDA) H100 GPUs in its data centers, and it used those GPUs as collateral to secure more funding to build additional data centers. It subsequently attracted investments from Nvidia, Cisco, and other tech giants. Today, CoreWeave operates 33 data centers across the U.S. and Europe -- up from just three centers at the end of 2022. Its top customers include Microsoft (NASDAQ: MSFT) and OpenAI. DigitalOcean's cloud infrastructure platform, which provides remote storage and computing power, is similar to Amazon Web Services and Microsoft Azure. But unlike those leading cloud platforms, which mainly serve large enterprise clients, DigitalOcean carves up its cloud servers into thinner and more affordable slices for smaller businesses. In 2023, it added cloud-based GPUs to its platform via its acquisition of Paperspace. DigitalOcean has been expanding much more slowly than CoreWeave: It currently operates 15 data centers across nine geographic regions, up from 14 centers at the end of 2022. Which company is growing faster? From 2022 to 2024, CoreWeave's annual revenue grew at a staggering compound annual growth rate (CAGR) of 990%, from $16 million to $1.9 billion. DigitalOcean's revenue rose at a more modest (but still respectable) CAGR of 16%, from $576 million in 2022 to $781 million in 2024. CoreWeave grew much faster than DigitalOcean for three reasons. First, it focused only on providing cloud-based GPUs for demanding AI tasks instead of a broader range of storage and computing services. DigitalOcean's acquisition of Paperspace gave it a foothold in the AI market, but its non-AI cloud services aren't growing as rapidly. Second, CoreWeave locked in huge customers, like Microsoft and OpenAI, that could afford to quickly ramp up their spending on its cloud-based GPU services. DigitalOcean served smaller developers and small-to-medium-size businesses -- which paid less money to deploy their apps and sandboxes. Third, CoreWeave has taken on lots of debt and racked up steep losses to buy more GPUs and open more data centers. DigitalOcean has been prioritizing its profit growth over its near-term expansion, and its net income has stayed in the black over the past two years. Which stock has more upside potential? From 2024 to 2027, analysts expect CoreWeave's revenue to grow at a CAGR of 106% to $16.7 billion as it turns profitable in the final year. They expect DigitalOcean's revenue to increase at a CAGR of 14% to $1.2 billion as its net income rises at a CAGR of 29% to $179 million. CoreWeave's projected growth trajectory looks incredible, but that expansion will likely be driven by a lot of debt and secondary offerings. Yet with a market cap of $63.5 billion, it doesn't seem that pricey relative to its growth potential at 13 times this year's sales. DigitalOcean, with a market cap of $2.7 billion, might seem a lot cheaper at 3 times this year's sales. But it's trading at that discount because it's growing at a much slower rate. Its conservative AI strategy also isn't attracting as much attention as CoreWeave's all-in expansion. So for now, CoreWeave still looks like a better play on the cloud and AI markets than DigitalOcean. Its business strategy is risky and aggressive, but it could generate much bigger long-term returns for its investors than DigitalOcean's less ambitious approach. Should you invest $1,000 in CoreWeave right now? Before you buy stock in CoreWeave, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and CoreWeave 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 $665,092!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,050,477!* Now, it's worth noting Stock Advisor's total average return is 1,055% — a market-crushing outperformance compared to 180% 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 July 21, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Leo Sun has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Cisco Systems, DigitalOcean, Ethereum, Microsoft, and Nvidia. The Motley Fool 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. Better Cloud AI Stock: CoreWeave vs. DigitalOcean was originally published by The Motley Fool
Yahoo
a day ago
- Business
- Yahoo
Nvidia Chips Are Flowing to China Again -- What That Means for AI Adoption Trends
Key Points The U.S. government just changed its rules to allow Nvidia to ship its H2O chips to China. Most AI is still limited to large companies, and as Nvidia expands into new regions and clients, the technology will scale up and become more affordable. As the support for AI infrastructure grows, Nvidia stands to gain in the long term. 10 stocks we like better than Nvidia › Nvidia (NASDAQ: NVDA) has had an almost unreal ascent over the past few years. It crossed the $1 trillion market cap threshold in 2023 and became the fifth-largest company in the world. And it has skipped over the front-runners in two years, increasing by 329%, to become the most valuable company in the world, as well as the first to reach $4 trillion in value. The stock got a further boost this week when President Donald Trump relaxed the government's stance on selling Nvidia's chips to China. Let's see why this is important for Nvidia and what it means about artificial intelligence (AI) adoption trends globally. Image source: Getty Images. Nvidia, the U.S., and China Nvidia is the premier graphics processing unit (GPU) company, making the most powerful chips for several industries. Before OpenAI changed the tech landscape with the launch of ChatGPT a few years ago, Nvidia was most known for its gaming chips. Today, its greatest growth and potential are in generative AI. Nvidia is based in California, and as a U.S. company, it's subject to government rules and guidelines. Both the Biden administration and today's Trump administration have leveraged the U.S. lead in AI in its favor and attempted to curtail some of the country's best technology outside of the U.S., specifically in China. The situation has changed several times, and from this past April until this week, the U.S. had implemented new restrictions on what chips Nvidia could export to China. In the short term, the company had to take a $4.5 billion charge on its fiscal first-quarter (ended April 27) financial statements related to its H2O chips for orders it couldn't fulfill in China. CEO Jensen Huang has been outspoken in his disagreement with these policies and how he sees this working against the U.S. in the long term. Without Nvidia's products, he believes, Chinese tech companies will figure out how to build their own AI chips and models. "General-purpose, open-source research and foundation models are the backbone of AI innovation," Huang said. "We believe that every civil model should run best on the U.S. technology stack, encouraging nations worldwide to choose America."
Yahoo
2 days ago
- Business
- Yahoo
Up 1,590%, Should You Buy Nvidia at Its All-Time High?
Key Points The demand for Nvidia's GPUs isn't letting up, which is driving strong revenue and profit growth. Ongoing uncertainty surrounding changing trade policies could have a material impact on the business. Given Nvidia's earnings outlook, the current valuation still looks reasonable. 10 stocks we like better than Nvidia › There has been no company that has gotten more attention in the past couple of years than Nvidia (NASDAQ: NVDA). The leader in graphics processing units (GPUs) that support artificial intelligence (AI) training has won over investors in remarkable fashion. In just the last five years, this top AI stock has soared 1,590%. For comparison's sake, the S&P 500 index is up just 95% over the same period. Investors are clearly enamored with the business, which they believe is and will continue to be a winner as an AI-driven technological shift takes shape. But for investors new to the company or those looking to increase their position, is Nvidia still a buy with shares trading at their all-time high? Incredible financial performance The demand for Nvidia's data center GPUs is impossible to overstate. Between fiscal 2020 and fiscal 2025, the company's total revenue increased at a compound annual rate of 64%. And during the first quarter of fiscal 2026 (ended April 27), the top line soared 69% year over year to $44.1 billion. Nvidia's profitability is also impressive, driven by strong pricing power. Net income totaled $18.8 billion last quarter, and the company's net profit margin has averaged a superb 36% over the past five years. Such an exceptional financial performance has only been possible thanks to the dominant position Nvidia has established in AI. It has positioned itself as the leading picks-and-shovels play, supporting the development of the AI infrastructure atop which platforms and apps will be built. At the end of the day, Nvidia shareholders don't need to choose between OpenAI's ChatGPT, Anthropic's Claude, or Alphabet's Gemini -- they stand to benefit as long as the overall AI industry continues to expand. Investors shouldn't overlook key risk factors Nvidia recently announced that it should soon be able to export and sell its H20 chips in China, following the U.S. government's approval of the company's application for export licenses. Management stated that existing export restrictions resulted in $2.5 billion in lost H20 revenue last quarter. While the new approval is a positive development as it reopens a major market for AI chips, it also highlights just how dynamic the trade situation has been. The Trump administration is willing to change course in an instant, and as AI technology is increasingly viewed as a topic with geopolitical ramifications, the tense relationship between the U.S. and China can still affect Nvidia's business in the future. This risk shouldn't be ignored. There's also the uncertainty around what a possible recession might do to all this AI spending. Should economic conditions deteriorate, executives will likely cut their capital spending plans, putting Nvidia's sales under pressure. Nvidia's valuation is hard to believe There aren't many stocks that have gone parabolic like Nvidia has. After all, over the past five years, shares have climbed nearly 17-fold. Even when you think the company has gotten too large or the market cap, now at $4.2 trillion, can't go any higher, Nvidia continues to prove the skeptics wrong. Along the same vein, it's hard to believe the current valuation is still reasonable. While shares trade at an all-time high, investors can buy the stock at a forward price-to-earnings ratio of 39.9. Meanwhile, the consensus analyst estimate calls for earnings per share to grow at an annualized pace of 32% between fiscal 2025 and fiscal 2028. That level of growth makes the premium valuation look far more reasonable. With Nvidia's dominance in the industry, impressive growth, and substantial margins, the case for buying the stock remains compelling, even as it trades near record levels. Should you buy stock 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 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 $665,092!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,050,477!* Now, it's worth noting Stock Advisor's total average return is 1,055% — a market-crushing outperformance compared to 180% 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 July 21, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Nvidia. The Motley Fool has a disclosure policy. Up 1,590%, Should You Buy Nvidia at Its All-Time High? 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
Yahoo
2 days ago
- Business
- Yahoo
Up 1,590%, Should You Buy Nvidia at Its All-Time High?
Key Points The demand for Nvidia's GPUs isn't letting up, which is driving strong revenue and profit growth. Ongoing uncertainty surrounding changing trade policies could have a material impact on the business. Given Nvidia's earnings outlook, the current valuation still looks reasonable. 10 stocks we like better than Nvidia › There has been no company that has gotten more attention in the past couple of years than Nvidia (NASDAQ: NVDA). The leader in graphics processing units (GPUs) that support artificial intelligence (AI) training has won over investors in remarkable fashion. In just the last five years, this top AI stock has soared 1,590%. For comparison's sake, the S&P 500 index is up just 95% over the same period. Investors are clearly enamored with the business, which they believe is and will continue to be a winner as an AI-driven technological shift takes shape. But for investors new to the company or those looking to increase their position, is Nvidia still a buy with shares trading at their all-time high? Incredible financial performance The demand for Nvidia's data center GPUs is impossible to overstate. Between fiscal 2020 and fiscal 2025, the company's total revenue increased at a compound annual rate of 64%. And during the first quarter of fiscal 2026 (ended April 27), the top line soared 69% year over year to $44.1 billion. Nvidia's profitability is also impressive, driven by strong pricing power. Net income totaled $18.8 billion last quarter, and the company's net profit margin has averaged a superb 36% over the past five years. Such an exceptional financial performance has only been possible thanks to the dominant position Nvidia has established in AI. It has positioned itself as the leading picks-and-shovels play, supporting the development of the AI infrastructure atop which platforms and apps will be built. At the end of the day, Nvidia shareholders don't need to choose between OpenAI's ChatGPT, Anthropic's Claude, or Alphabet's Gemini -- they stand to benefit as long as the overall AI industry continues to expand. Investors shouldn't overlook key risk factors Nvidia recently announced that it should soon be able to export and sell its H20 chips in China, following the U.S. government's approval of the company's application for export licenses. Management stated that existing export restrictions resulted in $2.5 billion in lost H20 revenue last quarter. While the new approval is a positive development as it reopens a major market for AI chips, it also highlights just how dynamic the trade situation has been. The Trump administration is willing to change course in an instant, and as AI technology is increasingly viewed as a topic with geopolitical ramifications, the tense relationship between the U.S. and China can still affect Nvidia's business in the future. This risk shouldn't be ignored. There's also the uncertainty around what a possible recession might do to all this AI spending. Should economic conditions deteriorate, executives will likely cut their capital spending plans, putting Nvidia's sales under pressure. Nvidia's valuation is hard to believe There aren't many stocks that have gone parabolic like Nvidia has. After all, over the past five years, shares have climbed nearly 17-fold. Even when you think the company has gotten too large or the market cap, now at $4.2 trillion, can't go any higher, Nvidia continues to prove the skeptics wrong. Along the same vein, it's hard to believe the current valuation is still reasonable. While shares trade at an all-time high, investors can buy the stock at a forward price-to-earnings ratio of 39.9. Meanwhile, the consensus analyst estimate calls for earnings per share to grow at an annualized pace of 32% between fiscal 2025 and fiscal 2028. That level of growth makes the premium valuation look far more reasonable. With Nvidia's dominance in the industry, impressive growth, and substantial margins, the case for buying the stock remains compelling, even as it trades near record levels. Should you buy stock 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 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 $665,092!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,050,477!* Now, it's worth noting Stock Advisor's total average return is 1,055% — a market-crushing outperformance compared to 180% 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 July 21, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Nvidia. The Motley Fool has a disclosure policy. Up 1,590%, Should You Buy Nvidia at Its All-Time High? was originally published by The Motley Fool
