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2 Growth Stocks That Could Skyrocket in 2024

2 years 4 months ago
Investors have already seen some big stock price jumps in 2024. Several winners are in the popular artificial intelligence (AI) space, of course, with companies like Nvidia and Meta Platforms posting excellent year-to-date returns. But there are also a few top stock performers th
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Forget Amazon: These Unstoppable Stocks Are Better Buys

2 years 4 months ago
You're, of course, familiar with e-commerce giant Amazon (NASDAQ: AMZN). It's one of the world's biggest companies (as measured by market cap), while its stock is one of the market's best-performing equities since the company went public back in 1997, up nearly 250,000% from that
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3 Top Artificial Intelligence Stocks to Buy in May

2 years 4 months ago
Everyone is talking about artificial intelligence (AI) these days, and for good reason. This hot technology that's driven some stocks to triple-digit gains has the potential to transform everything from our daily lives to how a company operates. AI's powers range from the simple,
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Retail Earnings: A Closer Look

2 years 4 months ago
Walmart’s WMT beat-and-raise quarterly release should ordinarily provide favorable read-throughs for Target TGT, which is scheduled to report results before the market’s open on Wednesday, May 22nd. But the two companies have diff
Zacks

Nvidia Stock (NASDAQ:NVDA): Is It a Buy at 71.3x Earnings?

2 years 4 months ago
Nvidia ( NASDAQ:NVDA ) is the kingpin of the artificial intelligence (AI) revolution. Its GPUs (graphics processing units) have become synonymous with cutting-edge AI-enabled applications, powering everything from ChatGPT to autonomous vehicles and medical diagnostics. With its relentless innovation and strategic partnerships, Nvidia continues to shape the landscape of AI, driving further advancements. Despite the high trailing valuation (71.3x earnings), I find it hard to be anything but bullish on NVDA stock. NVDA stock has gained 198% in the past year. Nvidia Earnings Are Coming Up — What to Expect Nvidia could be poised to exceed expectations once again with the company due to report earnings on May 22. Analysts are anticipating adjusted diluted earnings per share (EPS) of $5.59 for the quarter ending on April 28 — or GAAP EPS of $5.18. In the last 90 days, there have been 35 positive revisions and only two negative revisions to the company’s Q1 earnings expectations. These projections represent a 413% increase year-over-year. Revenue is expected to come in at $24.47 billion. In turn, this would represent a staggering 240% increase year-over-year. Nvidia’s official guidance for Fiscal Q1 2025 (the current quarter), announced at the conclusion of the previous quarter, indicated anticipated revenues of $24 billion, with a margin of error of plus or minus 2%. However, Nvidia has developed a track record of beating and outperforming its revenue and earnings expectations. The company has actually beaten revenue expectations in all of the last eight quarters. Plus, it has beaten earnings expectations in six of the last eight quarters and has surpassed all forecasts in the past 12 months. This is certainly a positive trend for Nvidia. Moreover, investors will be looking at the impressive quarterly results posted by two of Nvidia’s key suppliers — Taiwan Semiconductor ( NYSE:TSM ) and SK Hynix. The latter — the world’s second-largest memory chip maker — attributed its impressive growth to a boom in AI demand. SK Hynix said that sales reached 12.43 trillion South Korean Won in Q1, a 144% increase from a year ago. Meanwhile, TSMC’s sales rose 12.9% in the first quarter. The impressive showings of these Nvidia suppliers suggest a positive outlook for the Santa Clara company’s upcoming results. Nvidia: Still the AI Kingpin Nvidia is the kingpin of AI. And for now, there doesn’t appear to be much risk of this changing. The company is continuing to innovate. Its latest innovation, the Blackwell Architecture, offers a massive performance boost versus earlier chipsets. For certain tasks, the GB200 NVL72 is up to 30x faster than its predecessor, the H100. However, there are some signs of competition. Advanced Micro Devices ( NASDAQ:AMD ) is continuing to invest heavily in the development of its chips. In April, AMD unveiled its latest processors to power AI-enabled personal computers. Meanwhile, big tech companies like Google ( NASDAQ:GOOGL ) ( NASDAQ:GOOG ), Microsoft ( NASDAQ:MSFT ), Amazon ( NASDAQ:AMZN ), and Meta ( NASDAQ:META ) are designing their own AI chips to reduce their reliance on Nvidia. These custom-made chips cater to their specific needs but could eat into Nvidia’s market share, as these companies also represent major customers currently. Chinese companies may one day represent a threat to Nvidia as well. Although, for now, they appear some way behind. According to Reuters, two Chinese chipmakers are looking to manufacture high bandwidth memory (HBM) semiconductors used in AI chipsets. It comes as the U.S. and its allies have tightened Chinese access to advanced chip technology. Nevertheless, given China’s persistence and investments in the area, Chinese chips could possibly represent a threat to Nvidia’s leadership in the future. Nvidia’s Value Proposition Nvidia certainly doesn’t look cheap at 71.3x non-GAAP TTM earnings and 36.6x non-GAAP forward earnings. However, as the difference between the TTM and forward figures highlights, the value is in the company’s growth prospects. Nvidia’s earnings are expected to grow at 34.5% annually over the medium term — the next three to five years. In turn, Nvidia’s price-to-earnings-to-growth (PEG) ratio is just 1.06x (1.0x and under is traditionally considered undervalued). I find this to be a particularly attractive metric, given the company’s strong net cash position. Is Nvidia Stock a Buy, According to Analysts? Nvidia stock comes in as a Strong Buy based on the ratings of 42 analysts in the past three months. There are currently 40 Buys, two Holds, and zero Sell ratings. The  average NVDA stock price target is $1,027.95, with a high forecast of $1,400 and a low forecast of $620. The average price target represents 11.15% upside potential. The Bottom Line on Nvidia Stock Nvidia stock isn’t trading too far below its average stock price target, but I think that reflects the strong momentum of the share price. Analysts may be simply struggling to keep up with the stock’s growth in recent months. Nonetheless, I’m bullish on Nvidia, given its near-term dominance in the AI chip sector and its very strong growth trajectory. I’m already an investor in Nvidia, but I certainly wouldn’t think twice about putting my money behind a company of this caliber with a PEG ratio of 1.06x. Disclosure   
TipRanks

5 Stocks Powering the Dow ETF Year to Date

2 years 4 months ago
The Dow Jones Industrial Average touched the milestone of 40,000 for the first time on strong corporate earnings and renewed bets for rate cuts. SPDR Dow Jones Industrial Average ETF DIA, which tracks the Dow Jones Index, has gain
Zacks

Amazon Stock: Buy, Sell, or Hold?

2 years 4 months ago
From a certain point of view, growth investors might have good reason to move on from Amazon (NASDAQ: AMZN) stock. Its market cap now exceeds $1.9 trillion. Since large companies face greater challenges in achieving high-percentage growth, one might achieve higher long-term retur
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