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https://finnhub.io/api/news?id=e899a07b77d756395950c4f59d82ba17b4f3e1bef56f35d79e8afff06aa776b3 | First Mover Asia: Ethereum's Merge Starts to Hit Gaming Chip Prices | Prices for graphics processing units (GPUs) for personal computers are tumbling as the Ethereum blockchain's upcoming shift to a proof-of-stake network reduces demand for the chips from cryptocurrency miners. | 2022-09-05T15:28:13 | Yahoo | First Mover Asia: Ethereum's Merge Starts to Hit Gaming Chip Prices
Good morning. Here’s what’s happening:
Prices: Bitcoin waffles around $20K for the ninth straight day. Binance plans to halt exchange support for three stablecoins that rival its own BUSD.
Insights: With an end to Ethererum proof-of-work mining on the horizon, thanks to the upcoming Merge and its shift to a proof-of-stake blockchain system, prices for GPUs are dropping like a rock, Sam Reynolds reports.
Catch the latest episodes of CoinDesk TV for insightful interviews with crypto industry leaders and analysis. And sign up for First Mover, our daily newsletter putting the latest moves in crypto markets in context.
Prices
●Bitcoin (BTC): $19,726 −0.7%
●Ether (ETH): $1,593 +1.4%
●S&P 500 daily close: 3,924.26 −1.1%
●Gold: $1,721 per troy ounce +0.7%
●Ten-year Treasury yield daily close: 3.19% −0.07
Bitcoin, ether and gold prices are taken at approximately 4pm New York time. Bitcoin is the CoinDesk Bitcoin Price Index (XBX); Ether is the CoinDesk Ether Price Index (ETX); Gold is the COMEX spot price. Information about CoinDesk Indices can be found at coindesk.com/indices.
Bitcoin Waffles Around $20K and Binance
By Bradley Keoun
Bitcoin (BTC) waffled around the $20,000 mark for the ninth straight day, with traditional markets mostly closed in the U.S. in observance of Labor Day.
As of press time the largest cryptocurrency by market value was changing hands around $19,800, down 0.7% over the past 24 hours. Ether (ETH), the second-largest cryptocurrency, was up 1.7% to $1,598.
Crypto analysts were looking at a pattern in blockchain data known as "dormant supply peaks," suggesting that bitcoin might be poised for a bull run. Another metric called the Puell Multiple indicates that long-term investors have been adding to their stashes as prices declined.
Binance, the world's largest crypto exchange by volume, said it would move to stop supporting the stablecoins USDC, USDP and TUSD, with a plan to automatically convert users' holdings of those coins into its own stablecoin, BUSD, on Sept. 29.
Poolin, one of the largest bitcoin mining pools, suspended withdrawals as part of an effort to preserve assets and stabilize liquidity.
A Brazilian financial regulator barred the Singapore-based crypto exchange Bybit from brokering securities.
Biggest Gainers
Asset
Ticker
Returns
DACS Sector
Terra
+7.0%
Chainlink
+2.2%
Ethereum
+1.4%
Biggest Losers
Asset
Ticker
Returns
DACS Sector
Loopring
−4.3%
Cosmos
−3.0%
Shiba Inu
−2.9%
Insights
Prices for GPU Computer Chips Slide Toward MSRP as Ethereum Merge Approaches
By Sam Reynolds
As cryptocurrency entered the mainstream, the price of graphics processing units (GPU) for personal computers was often tied to the fate of the crypto market because they became popular for cryptocurrency mining. Now, with an end to Ethererum proof-of-work mining on the horizon thanks to the upcoming Merge and its shift to a proof-of-stake blockchain system, prices for GPUs are dropping like a rock.
A bull market for crypto has, in the recent past, come with a bull market for GPU prices. At the height of ether’s 2021 rally, some of the most powerful GPUs were retailing for an average of 114% over their manufacturer’s suggested retail price (MSRP). After all, for proof-of-work-based protocols — what Ethereum uses currently, since its launch in 2015 — GPUs and their parallel processing ability have been essential for mining.
But that was before The Merge. Ethereum’s shift away from computationally intensive proof-of-work to proof-of-stake means that the tens of millions of GPUs purchased over the last four years to mine ether no longer have a use. Some miners are considering moving their operations to Ethereum Classic, but despite the protocol being around for nearly six years it just hasn’t garnered the network effect needed to allure a critical mass of decentralized apps, non-fungible tokens (NFT) or decentralized finance (DeFi).
GPU prices are reflecting this. According to published data from industry analyst house Jon Peddie, overall GPU unit shipments decreased by 15% from last quarter. Part of this comes from a softening PC market, with analysts at IDC forecasting a 12.8% year-over-year decline for 2022. The rapid quarter-over-quarter drop in GPU prices puts the blame squarely on evaporating demand from crypto miners.
According to GPUTracker.eu, prices for some of the most popular GPUs are down by double-digits. The RTX 3080 Ti, a once-favorite for miners, has seen its average selling price drop by 45% in the last quarter, putting it almost at MSRP. In February, the card was being sold for around $2,000; now it's just over $1,100.
In China, wholesalers can’t get rid of these cards fast enough as inventory piles up from mining farms trying to offload supply.
All this is being felt on Nvidia’s (NVDA) bottom line. During recent earnings, the company said its gaming line (read: GPUs that were being used for mining) was down 33% on the year to $2.04 billion – sharper than executives anticipated. Its dedicated crypto mining chip revenue also fell, but sales of these chips represent a small fraction of the silicon the company sold to miners.
In many ways, executives at Nvidia couldn’t be happier. Jensen Huang, Nvidia’s CEO, never was too comfortable with miners pilfering what he thought should have been for gamers or other users of the chips.
“Gaming is growing, workstation is growing, AI hyperscale data center is growing, high-performance computing is growing. Quite frankly, I'd prefer that our GPUs were built to be used in those areas," he was quoted as saying at the company’s annual technology conference in 2018. "My preference would be, of course, that we allocate them for the people we build them for, but there's a logical reason for why [miners use] Nvidia GPUs, because it's the world's largest distributed supercomputer."
It looks like Huang and Nvidia will get their way. They just need the grit to deal with a few quarters of decline that comes just as the broader PC sector comes off its COVID-19 supercycle. The question is, will it recover as quickly without mining? Investors, and the U.S. Securities and Exchange Commission, would like to know.
Headlines
Ether Eyes Price Rally After 'Wedge' Breakout: Ether looked north, having exited a falling wedge pattern last week, analysts said. Buyers remained on the sidelines early Monday as Europe's worsening energy crisis zapped risk appetite.
Citi: Ether Extends Rally Ahead of the Merge Despite Bitcoin Weakness: There are key differences between previous upgrades to the Ethereum blockchain and now because, for the first time, digital assets are facing tightening financial conditions, the bank said.
Parabolic Bitcoin Bull Run Likely After Dormant Coin Supply Peaks, Past Data Suggests: Dormant supply peaks are springboards for upwards price action, one observer said.
Poolin, One of the World's Biggest Bitcoin Mining Pools, Acknowledges Liquidity Issues: Poolin CEO and founder Kevin Pan assured users that funds are safe and said the company might look to debt to solve its liquidity troubles.
LG Picks Lesser-Known Hedera Blockchain for Television NFTs: The consumer electronics company, which has served on the Hedera Governing Council since 2020, is bringing NFTs to television screens through a platform built on the Hedera network.
Australian Federal Police Forms Cryptocurrency Unit to Tackle Money Laundering, Offshoring: The unit was set up after the force's criminal asset confiscation command had seized more than $600 million from the proceeds of crime since its inception in February 2020. | NVDA |
https://finnhub.io/api/news?id=74295f0247b71748f387dad62031886bb330a96e2b60418daa7e5fda24570deb | Tech stocks: MATANA is the new FAANG, analyst says | It's time to rethink who's at the top of the Big Tech food-chain, Constellation Research Principal Analyst & Founder Ray Wang told Yahoo Finance Live. | 2022-09-05T07:55:11 | Yahoo | MATANA is the new FAANG, analyst says
It's time to rethink who's at the top of the Big Tech food-chain, Constellation Research Principal Analyst & Founder Ray Wang told Yahoo Finance Live (video above).
Wang argued that MATANA — Microsoft (MSFT), Apple (AAPL), Tesla (TSLA), Alphabet (GOOG, GOOGL), Nvidia (NVDA), and Amazon (AMZN) – is an upgrade to FAANG by dropping Meta (META) and Netflix (NFLX) while adding Microsoft, Tesla, and Nvidia.
In 2013, when Jim Cramer of CNBC's "Mad Money" coined the term FAANG, many of those companies were thought of as upstarts who'd taken their respective markets by storm. This was especially true of Meta — then Facebook — and Netflix. But now, Wang said, both should be re-assessed. Meta, in particular, needs a new plan.
"Facebook has got to do something besides ads," he told Yahoo Finance. "Once again, they're taking a beating for it. So, is it going to be the glasses? Is it going to be the metaverse? We're not there yet and that's really kind of what the challenge is."
For Netflix, it's a question of growth, and what is and isn't on the table. And because the company's operating on a subscription model, Wang has questions about how much further they could go.
"The reason they're out is because, how many more subscribers? How many more subscriptions are you going to handle?" he said. "Product placement should be where they are, plus the ability to do IP licensing. Look at how Disney makes its money."
Wang stressed that Microsoft, which is often viewed as one of tech's leading legacy names, should be included in the group of tech's most elite leaders (and sometimes has been with the bulky FAAMNG acronym).
"Microsoft has more than just business-to-business and consumer – they've been able to manage both," he said. "They're positioned well for the metaverse. They're positioned well for the cloud and, of course, they've got their gaming business."
Rounding out the new grouping would be Tesla — a well-known success story at this point — and Nvidia.
"Nvidia is a lot more than just the chips that we look at and more than the data center or gaming," Wang said. "They're sitting at the edge between AI, the metaverse, the future of computing, and the way they do their partnerships, they're set up in a way that's going to be dominant for quite some time."
Allie Garfinkle is a Senior Tech Reporter at Yahoo Finance. Follow her on Twitter at @agarfinks.
Download the Yahoo Finance app for Apple or Android.
Follow Yahoo Finance on Twitter, Facebook, Instagram, LinkedIn, and YouTube. | NVDA |
https://finnhub.io/api/news?id=0b9a4215f7a6406648b896df3f303b22aff02add3655bcc904a5c3cd1b4917b7 | Nvidia's China Ban: How Big a Hit Is It? | In this video, I will be talking about the recent China ban imposed on Nvidia (NASDAQ: NVDA) by the U.S. government and how bad it actually is. Nvidia could lose as much as $400 million in sales to China due to new export requirements on its data center chips. | 2022-09-05T07:30:00 | Yahoo | Nvidia's China Ban: How Big a Hit Is It?
In this video, I will be talking about the recent China ban imposed on Nvidia (NASDAQ: NVDA) by the U.S. government and how bad it actually is. Nvidia could lose as much as $400 million in sales to China due to new export requirements on its data center chips. | NVDA |
https://finnhub.io/api/news?id=f39c5ad4cfda811dc7fa588dbd1411ff6e9fea24212795728725af742f7c3e42 | PC Shipments Are Expected to Decline. Is This More Bad News for AMD, Nvidia, and Intel Stock? | Today's video focuses on Nvidia (NASDAQ: NVDA), Advanced Micro Devices (NASDAQ: AMD), and Intel (NASDAQ: INTC) and how each company could be affected by the weakness in PC shipments. Check out the short video to learn more, consider subscribing, and click the special offer link below. | 2022-09-05T07:00:00 | Yahoo | PC Shipments Are Expected to Decline. Is This More Bad News for AMD, Nvidia, and Intel Stock?
Today's video focuses on Nvidia (NASDAQ: NVDA), Advanced Micro Devices (NASDAQ: AMD), and Intel (NASDAQ: INTC) and how each company could be affected by the weakness in PC shipments. Check out the short video to learn more, consider subscribing, and click the special offer link below. | NVDA |
https://finnhub.io/api/news?id=cd465082b1521db76033b2fe9101cf9644a85554f961b347923abba6545e8199 | Why Nvidia Fell 16.9% in August | Shares of the largest chipmaker by market cap, Nvidia (NASDAQ: NVDA), swooned 16.9% in the month of August, according to data from S&P Global Market Intelligence. Like many other technology stocks, Nvidia had a nice July rally. Early in the month, Nvidia warned investors its second-quarter earnings would come in below expectations, especially its graphics segment. | 2022-09-05T05:45:00 | Yahoo | Why Nvidia Fell 16.9% in August
Shares of the largest chipmaker by market cap, Nvidia (NASDAQ: NVDA), swooned 16.9% in the month of August, according to data from S&P Global Market Intelligence. Like many other technology stocks, Nvidia had a nice July rally. Early in the month, Nvidia warned investors its second-quarter earnings would come in below expectations, especially its graphics segment. | NVDA |
https://finnhub.io/api/news?id=d7b0808e0e7944918d883b568ec41d74cdc1eb30c6eac3217e783233605ea90d | Nvidia (NASDAQ:NVDA) Stock Could Still Ride Out Tough U.S. Govt Licensing Norms, Says Top Analyst | Top-rated Needham analyst Rajvindra Gill was left disappointed recently by the U.S. Governmentâs hardened stance on chip exports to China and Russia, terming it a â... | 2022-09-05T05:07:00 | TipRanks | Top-rated Needham analyst Rajvindra Gill was left disappointed recently by the U.S. Government’s hardened stance on chip exports to China and Russia, terming it a “significant headwind” to Nvidia (NASDAQ:NVDA).
Shares of the company have been in a free fall the past month, dropping 28.1%, amid concerns that the new licensing requirements from the U.S. Government could adversely impact its sales to China by around $400 million in Q3 of FY23.
The analyst estimates that the U.S. Government is unlikely to soften its position anytime soon and has lowered his estimates for the U.S. chipmaker.
Data Center Sales Likely to Take a Hit
Analyst Gill believes that this stance is most likely to impact the sales of the A100 Data Centers, which contribute the most in terms of revenues to the Data Center business. He also pointed out that China now represents around 25% of NVDA’s overall data center revenues.
As a result, Gill remains concerned with the slowdown in the spending on data center buildouts by Chinese companies like Alibaba (BABA) and Baidu (BIDU). Moreover, he believes that the Chinese economy is in deterioration and expects this to continue for the rest of this year.
The analyst is of the view that while data center business is NVDA’s growth engine over the long term, competition in the business “will exert pressure on the company’s long-term positioning; however, we believe several industries will transition to AI [artificial intelligence]-based systems faster than before.”
Is NVDA a Buy, Sell or Hold?
The analyst remains bullish on the stock with a Buy rating but has lowered the price target from $185 to $170, implying an upside potential of 24.6% at current levels. However, other analysts on the Street remain cautiously optimistic about NVDA with a Moderate Buy consensus rating based on 23 Buys and eight Holds.
NVDA’s average price prediction of $209.60 implies 53.6% upside potential.
Similarly, financial bloggers are 83% Bullish on NVDA stock, compared to the sector average of 64%.
Concluding Remarks
Analysts are broadly expecting NVDA to take a hit in terms of revenues due to the tough stance of the U.S. Government. However, over the long term, the stock seems poised well and could even ride out this storm.
Read full Disclosure | NVDA |
https://finnhub.io/api/news?id=8fd779662f200bca65959936926a978369aadeacb2e4164bbb128159ff8de6b8 | Better Buy: Nvidia vs. Snowflake | When it comes to quality businesses that are growing rapidly, one company's current profits might give it the edge. | 2022-09-05T04:33:00 | Yahoo | Better Buy: Nvidia vs. Snowflake
When it comes to quality businesses that are growing rapidly, one company's current profits might give it the edge.
When it comes to quality businesses that are growing rapidly, one company's current profits might give it the edge.
Mark Spitznagel and Nassim Taleb have been watching for black swans for decades. "We’ve never seen anything like this level of total debt and leverage in the system," he tells Fortune. "It's an experiment."
Warren Buffett is undeniably the most famous and influential investor in modern history, based on his extraordinary performance record. Not surprisingly, the investment portfolio of Berkshire Hathaway Inc. (BRK.A), the holding company employing the Oracle of Omaha as chairman and CEO, receives wide media attention and scrutiny, even though Buffett is no longer making every investment decision. Despite his unparalleled success, Buffett's investment model has long been transparent, straightforward, and consistent.
Stocks have blown past expectations for 2023 – but some analysts are bracing for a sell-off as the market approaches record highs.
The JPMorgan Equity Premium Income ETF’s (NYSEARCA:JEPI) combination of high yield and monthly payments has quickly made it one of the market’s most popular ETFs. Investors who like JEPI’s style now have another high-yield competitor to consider — the NEOS S&P 500 High Income ETF (BATS:SPYI), which also pays on a monthly basis and yields 10.7%. Let’s take a closer look at this intriguing new option for high-yield investors. What is SPYI ETF’s Strategy? Launched in August of 2022, SPYI is still a
Just because you retire doesn't mean you have to stop working. And when work is an option rather than a requirement, it's possible to select a low-stress job that multiplies fulfillment without adding anxiety - but still provides a bit … Continue reading → The post 12 Low-Stress Jobs You Can Do in Retirement appeared first on SmartAsset Blog.
Berkshire Hathaway historically reports its quarterly financial results on weekends, and CEO Warren Buffet has a simple reason why. Berkshire (ticker: BRK.A, BRK.B) reported second-quarter earnings Saturday morning. Many other public companies, however, release their earnings results during the trading week, either before the market opens or after the closing bell.
The market rally is at an infection point after notable losses. Here's what to do. Warren Buffett's Berkshire earnings rose.
Is there a point at which I should stop reinvesting stock dividends and invest the money or save the cash? -Anonymous Many financial experts recommend that you reinvest dividends most of the time – and I'm inclined to agree. The … Continue reading → The post Ask an Advisor: Should I Stop Reinvesting Dividends? appeared first on SmartAsset Blog.
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The week ahead will feature a crucial inflation report and earnings out of Disney, UPS, and Alibaba as second quarter earnings season winds down.
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AustralianSuper, one of the world’s largest pensions, halved its Apple stock investment and sold Microsoft stock, while buying shares of Tesla and Nvidia.
One in 6 asset and wealth management companies will be bought or shut down in the next five years, according to a PwC survey of asset managers and institutional investors.
Warren Buffett's Berkshire Hathaway operating profit rose by 10%. BRKB stock is just out of buy range.
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Dubbed the Oracle of Omaha, Warren Buffett is renowned for his simple and frugal lifestyle. Despite being the sixth richest person globally, with a net worth estimated at $117.9 billion, Buffett continues to live in the same modest home in Omaha that he purchased in 1958 for just $31,500. Adjusted for inflation, that amount today would be approximately $328,990.80, a mere 0.000279% of his total net worth. Buffett has consistently ranked the purchase of his home as the third-best investment he ha
As a pandemic-inspired boom ends, entrepreneurs and giant corporations alike are counting on customers to keep accumulating more stuff than they can squeeze into their homes. | NVDA |
https://finnhub.io/api/news?id=a7fff2ac69fe27276371aa5462b6904fabe6f6bb0af929f3f111052788eb8cc2 | 7 Growth Stocks That Could 10X by 2027 | It takes courage and conviction right now to snap up growth stocks to buy that could appreciate 10-fold over the next five years. | 2022-09-05T00:44:00 | InvestorPlace | MarketWatch published an article early in 2022 which highlighted last year’s best-performing S&P 500, mid-cap, small-cap, Nasdaq-100, and Dow 30 stocks. Some of the names on the five lists were cited by analysts as the top growth stocks to buy in 2022.
We know in hindsight that growth stocks weren’t the best bet over the past eight months. That distinction goes to energy stocks. The energy stocks in the S&P 500 jumped almost 45% in the first eight months of 2022. Out of the 11 sectors in the index, utilities is the only one besides energy in positive territory in 2022. The S&P 500’s utilities rose 3.4% through the first eight months of 2022.
For this article, I’m tasked with selecting seven growth stocks to buy that have a better-than-average shot of appreciating ten-fold over the next five years.
I’m going to take at least one name from each of the five MarketWatch lists.
And to qualify for this column, stocks will have to have an average rating of “overweight” or “buy” from Wall Street analysts.
|NVDA||Nvidia||$136.47|
|DKS||Dick’s Sporting Goods||$108.23|
|PRFT||Perficient||$73.49|
|MRNA||Moderna||$138.57|
|AAPL||Apple||$155.81|
|ORLY||O’Reilly Automotive||$702.70|
|CCRN||Cross Country Healthcare||$24.79|
Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) gained 125.5% in 2021. It had tumbled 54% in 2022 through Friday.
However, the analysts remain bullish on NVDA stock. Of the 44 covering NVDA , 35 rate it a “buy” or an “overweight.” Only one analyst has a “sell” rating on it. Their average price target for the shares is $211.02, more than 50% above its current share price.
The chip maker’s three-year annualized average revenue growth is 32%.
That’s the good news. The bad news is that NVDA expects its Q3 revenue to fall by 17% compared to the same period a year earlier. Also, it took a $1.34 billion charge in Q2 to account for the inventory that it wrote down due to slower-than-expected revenue growth.
CEO Jensen Huang remains confident that the gaming market will rebound.
“While Gaming navigates significant short-term macroeconomic challenges, we believe the long-term fundamentals in Gaming remain strong,” Huang stated on the company Q2 earnings conference call.
“NVIDIA RTX has redefined computer graphics and is now supported by almost 300 games and applications. NVIDIA’s GeForce GPUs are the most coveted brand by gamers, representing 15 of the top 15 most popular GPUs on Steam.”
NVDA stock hasn’t been this low since April 2021, more than 17 months ago. I like the chances of its share price rising ten-fold over the next five years.
Dick’s Sporting Goods (DKS)
Dick’s Sporting Goods (NYSE:DKS) gained 116.4% in 2021. It has given 6% back in 2022.
Of the 26 analysts covering DKS stock, 13 rate it a “buy” or an “overweight.” Only one rates it a “sell,” and analysts’ average price target on the name is $124.78, about 16% higher than its current share price.
Investors who did not carefully read the retailer’s earnings report would likely have wrongly concluded that it had a dud of a quarter. It did not. That’s far from the truth.
The 5.1% decline in Dick’s same-store sales may scream “run for the hills,” but the retreat came on the heels of a 20% increase in SSS in Q2 of 2021. Even more impressively, Dick’s net sales of $3.1 billion last quarter were 38% higher than in the same period of 2019.
And, as Executive Chairman Ed Stack pointed out, its earnings before taxes (EBT) in Q2 was equal to its EBT for all of 2019.
“The state of our industry is strong, and we remain in a great lane. DICK’S is the clear market leader, and as a result of our transformation, we are well-positioned to extend our lead and deliver long-term sales and earnings growth,” Stack stated in the company’s quarterly press release.
Maybe DKS stock won’t appreciate ten-fold over the next five years, but you can be darn sure that you won’t lose much on the shares either. Their risk/reward outlook is excellent.
Perficient (PRFT)
Perficient (NASDAQ:PRFT) gained 171% in 2021. It’s down 43% in 2022.
The Missouri-based company is a consulting firm that helps its customers utilize digital technologies to better engage with their customers. It provides its services to healthcare, financial services, manufacturing, automotive firms, and companies in several other industries.
Over the past three years, its average annualized revenue growth was 15.2%. Out of nine analysts, seven rate it a “buy,” with two “holds” and no “sell” recommendations. Their average price target on the shares is $115.25, 52% versus its current level of $72.77.
The company’s Q2 results were excellent. Its revenues rose 21% year-over-year while its earnings per share, excluding some items, jumped 26%. For all of 2022, it expects revenue of $915 million at the midpoint of its guidance. On the bottom line, the midpoint of its outlook equates to adjusted EPS of $4.30
Based on the company’s 2022 guidance, it’s trading at 17.6 times its EPS and 2.9 times its sales. Those are both reasonable given its growth prospects.
In July, the company announced that it would expand in India by adding new locations in Hyderabad and Pune, and increasing the office space in three other cities. The move adds approximately 73,000 square feet of office space for almost 2,000 new employees.
These additions should meaningfully increase its revenue.
Moderna (MRNA)
Moderna (NASDAQ:MRNA) gained 143% in 2021. It’s down 45% in 2022.
August ended with some good news for MRNA. First, it announced on Aug. 31 that the U.S. Food and Drug Administration (FDA) approved the company’s emergency use authorization (EUA) application for its Omicron-targeting Covid-19 booster vaccine for adults 18 and over. A day later, Health Canada issued the same approval.
Moderna will initially supply 12 million doses to Canada, which will have an option to purchase an additional 4.5 million doses.
In early August, Moderna reported its earnings for the first six months of 2022. On the top line, its revenues rose 71% YOY to $10.8 billion. On the bottom line, it earned $6.7 billion from its operations, 56% higher than during the same period a year earlier.
Moderna is generating so much cash that it finished Q2 with $18.1 billion of cash and investments, up from $17.6 billion at the end of December. Moderna is trading at three times its cash. That’s a cheap valuation.
Despite its low valuation, analysts are lukewarm on MRNA. Of the 19 analysts covering its stock, only seven rate it “overweight” or “buy.” Most have “hold” ratings on it and one has an outright “sell” rating on the shares. However, the analysts’ median target price is $197.00, versus its current price of $138.
Moderna’s pipeline is substantial. It has 31 of its 43 development candidates in clinical trials. One or two of those are bound to pay off in a big way.
Apple (AAPL)
Apple (NASDAQ:AAPL) gained 34.6% in 2021. It’s down a little more than 12% in 2022.
A Barron’s article from August made an interesting point about Apple’s size being a big negative for AAPL stock.
“As the largest U.S. company by far—with a market capitalization more than $500 billion greater than the number-two, Microsoft (MSFT)—Apple is widely owned and has a tendency to drag around, and be dragged around by, the major indexes,” Barron’s contributor Jack Denton wrote.
“After all, it makes up more than 7% of the entire S&P 500. If Apple was its own sector, it would have the seventh-largest weighting out of 12 and be almost twice as large as the energy sector.”
Despite the concerns about China’s slowing economy hurting Apple’s sales, analysts remain relatively upbeat about its stock. Of the 41 analysts covering AAPL, 32 rate it “overweight” or a “buy.” Only two have an “underweight” or a “sell” rating on it.
Apple’s services business continues to be very profitable. In the first nine months of 2022, the gross margin of its services business was 72%, almost double that of its products business.
O’Reilly Automotive (ORLY)
O’Reilly Automotive (NASDAQ:ORLY) appeared in my July column, called the 7 Best Retail Stocks to Buy Now. ORLY made the list because it consistently grows its free cash flow. It’s up almost 20% in 2022 relative to the S&P 500. Over the past five years, it’s up four-fold compared to the index.
ORLY gained 56% in 2021. Analysts generally like the stock. Of the 24 covering it, 17 have “buy” or “overweight” ratings on it, and their average price target is $768.63, versus its current price of $701.50.
I know that doesn’t seem like much of a difference. However, the shares perform well over the long haul. Since 2000, they’re up 8,400%, representing a compound annual growth rate of 22.8%.
This little snippet from CEO Gregory Johnson’s Aug. 23 speech encapsulates the state of O’Reilly’s business:
“So when you look at a 2-year stack basis, that comp will be 21%; 3-year, 28.5%. Gross margin year-to-date 51.6%; operating margin, 21.1%. And we’ve opened 116 net new stores and are on track to meet our projection of 175 to 185 stores for the year,” Johnson stated.
“Diluted earnings per share came in at $15.94. We generated $1.2 billion in free cash flow and repurchased $2.2 billion worth of our stock year-to-date under the stock repurchase program.”
As I said earlier, O’Reilly knows how to grow its free cash flow, but it’s also better than most at allocating it. Over the long-term, you won’t do much better than ORLY.
Cross Country Healthcare (CCRN)
Cross Country Healthcare (NASDAQ:CCRN) gained 213% in 2021, so it’s not surprising that it’s cooled off in 2022. However, relative to the Russell 2000, it’s up more than 9% on the year.
Cross Country works with healthcare clients such as hospitals, outpatient clinics, ambulatory clinics, physician practice groups, and other healthcare-related facilities to recruit and staff their businesses. The demand for its services is very strong.
Over the last three years, its revenue has grown at an annualized rate of 27.1% , while its operating income rose by an average of 104.4% annually. That’s some pretty good growth–and I don’t think that the firm is going to stop growing anytime soon.
It’s fair to say that the sequential decreases in its financial results that occurred in Q2 will continue in the back half of the year as staffing shortages dissipate, returning to more normal historical levels.
For example, in Q3, the company expects revenue of $610 million at the midpoint of its guidance. That’s 62.5% higher than a year earlier but down 19% from the previous quarter. Its adjusted EPS should also fall in Q3 versus Q2.
The company’s biggest growth driver is its Managed Service Programs (MSPs). Between 2015 and 2021, the estimated revenue of these MSPs grew by $800 million to $1.1 billion. The annual run rate of its revenue in Q2 was $2.2 billion. It has approximately 100 customers across more than 550 facilities.
Investors should expect more moderate growth from CCRN– barring any significant M&A transactions — but not a return to the slower growth that it generated before the pandemic.
On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia. | NVDA |
https://finnhub.io/api/news?id=d3aae24787cbd5980e30d2cecb702a38313deea47709d6e17cc7ee7564e40452 | Page Not Found :( | 2022-09-05T00:05:00 | TipRanks | Shares of tech giant Nvidia (NASDAQ:NVDA) have lost substantial value this year. A slowdown in growth and overall selling in tech stocks weighed on its share price. Despite the decline, NVDA stock has negative signals from hedge funds, corporate insiders, and retail investors, implying the stock could remain pressured in the short term.
But before reaching a conclusion, let’s examine why Nvidia stock is down and what’s on the horizon for its investors.
Why Is Nvidia Share Price Falling?
Nvidia manufactures ICs (integrated circuits) and high-end GPUs (graphics processing units). It witnessed an overwhelming demand for its products, leading to a rally in its stock price. Come 2022, Russia’s invasion of Ukraine, COVID-led restrictions in China, and macro weakness across many parts of the world weighed on Nvidia’s growth and dragged its stock down.
It’s worth mentioning that NVDA stock has lost over 50% of its value this year alone. While macro and geopolitical headwinds continue to play spoilsport, the U.S. government’s hardened stance to prevent technology transfers to China (including Hong Kong) and Russia and the new license requirement for exports to these countries further pose challenges.
What Is the Prediction for Nvidia Stock?
Analysts remain cautiously optimistic about Nvidia’s prospect, given the increase in headwinds and a slowdown in its business. NVDA stock sports a Moderate Buy consensus rating on TipRanks based on 23 Buys and eight Holds. Further, due to a noteworthy decline in its price, NVDA’s average price target of $209.60 implies 53.6% upside potential.
Moreover, as stated above, hedge fund managers, corporate insiders, and retail investors have lowered their exposure to NVDA stock.
Hedge funds sold 417.9K NVDA stock last quarter. Meanwhile, insiders sold NVDA stock worth 36M during the same period. Also, 0.8% of investors holding portfolios on TipRanks lowered their exposure to NVDA stock in the last 30 days. Overall, NVDA stock carries a Neutral Smart Score of four out of 10.
Bottom Line: Ongoing Headwinds to Limit Upside in the Short Term
The U.S. government’s license requirement for exporting its A100 and forthcoming H100 ICs to China and Russia, continued sales decline in the gaming and professional visualization segment, a slowdown in the data center revenues, and supply constraints could limit the upside in NVDA stock in the short term.
Read full Disclosure | NVDA |
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https://finnhub.io/api/news?id=f3fdcf68ee5c4476321b2bbd5e6fd32ba56e310d7d529009411e78677a165cd7 | Stock Market Analysis: AMZN, AAPL, NVDA, META, NFLX, TSLA, GOOGL | 2022-09-04T23:14:00 | TalkMarkets | Sorry, the page you are looking for has been removed. Let's find a better place for you to go. Back to Home | NVDA |
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https://finnhub.io/api/news?id=f9b2d78cd4c5cf7de4e1483dcb6c2d9ab93c3fb523fe5a259ba959693509d9c9 | Top Stocks To Invest In Now? 3 Tech Stocks To Watch This Week | Is now the time to invest in these top tech stocks? | 2022-09-04T17:51:19 | StockMarket | Are These The Best Tech Stocks To Invest In September 2022?
Many investors are keeping a close eye on technology stocks as we kick off September 2022. For the uninitiated, tech stocks have been on a roller coaster ride over the past year. Meanwhile, many analysts are predicting that they will continue to be volatile in the months ahead. While there is no sure way to predict the future of the stock market, there are a few factors that could impact tech stocks in the coming months. First, interest rates are expected to rise in the second half of the year, which could put pressure on stock prices.
Additionally, the ongoing trade war between the United States and China could also lead to volatility in tech stocks, as tensions between the two countries continue to escalate. This is evident with tech firms like NVIDIA Corporation (NASDAQ: NVDA) and Micron Technology Inc. (NASDAQ: MU). Shares of both companies have fallen recently in light of new export rules from the U.S. in regards to exporting chips to China.
Finally, earnings reports from major tech companies will also being digested by investors. With so much uncertainty on the horizon, it’s important to stay disciplined with your investment strategy and keep a diversified portfolio. Technology stocks may be volatile, but they can still offer opportunities for long-term growth. With that, here are three top tech stocks to watch in the stock market today.
Tech Stocks To Invest In [Or Avoid] Right Now
- Shopify Inc. (NYSE: SHOP)
- Microsoft Corporation (NASDAQ: MSFT)
- Roblox Corporation (NYSE: RBLX)
Shopify (SHOP Stock)
Next, Shopify Inc. (SHOP) is a Canadian e-commerce company headquartered in Ottawa, Ontario. In brief, the company offers online retailers a platform to buy and sell products. As well as a suite of tools to manage inventory, orders, and customers. Shopify is an e-commerce platform that enables businesses of all sizes to sell online. In July, the company reported a miss for its second quarter 2022 financial results.
In detail, Shopify reported a 2nd quarter 2022 loss of $0.01 per share, with revenue of $1.3 billion. Versus, Wall Street’s consensus earnings estimate of $0.03 per share, with revenue of $1.8 billion. Additionally, the company notched in a revenue increase of 16% during the same period, in 2021. Moreover, the company reported that its subscription solutions revenue was up 10% year-over-year at $366.4 million for the quarter.
“While commerce through offline channels grew faster in Q2, where our exposure is lower but growing, we continued to see increased adoption of our solutions, enabling our merchants to remain agile against a challenging macro environment and highlighting the breadth and resilience of our business model,” stated Amy Shapero, Shopify’s CFO. With that, shares of SHOP have been beaten down by over 77%. This comes after closing Friday’s trading session at $30.11 per share. Considering all of this, do you think SHOP is a good buy at these price levels?
[Read More] 5 Top Dividend Stocks To Watch In A Bear Market
Microsoft (MSFT Stock)
Next, Microsoft Corporation (MSFT) is an American multinational technology company with headquarters in Redmond, Washington. It develops, manufactures, licenses supports, and sells computer software, consumer electronics, personal computers, and related services. Most notably, some of its best-known software products are; Microsoft Windows, Microsoft Office suite, Internet Explorer and Edge web browsers. For a sense of scale, Microsoft is one of the largest information technology companies in the world.
In July, Microsoft reported its most recent Q4 2022 financial results. In detail, the company posted earnings of $2.23 per share. As well as revenue of $51.9 billion. This is in comparison to, analysts’ consensus estimates of earnings of $2.28 per share, on revenue of $52.9 billion.
“In a dynamic environment we saw strong demand, took share, and increased customer commitment to our cloud platform. Commercial bookings grew 25% and Microsoft Cloud revenue was $25 billion, up 28% year over year,” commented Amy Hood, executive vice president, and CFO of Microsoft. “As we begin a new fiscal year, we remain committed to balancing operational discipline with continued investments in key strategic areas to drive future growth.” With that, shares of MSFT stock are still down over 23% since the start of 2022. As of Friday’s closing bell, shares of MSFT stock are trading at $256.06 per share.
[Read More] Cheap Stocks To Buy Now? 3 Marijuana Stocks To Watch
Roblox (RBLX Stock)
Lastly, Roblox Corporation (RBLX) is an American technology company that develops and operates the Roblox platform, which is a social networking service for people to play games, create experiences and interact with other people. Just last month, the company announced its second quarter 2022 financial results.
Diving in, Roblox reported a loss of $0.30 per share on revenue of $591.2 million for the second quarter. This is in comparison with the consensus estimates of a loss of $0.23 per share and revenue of $658.5 million. Though, Roblox was able to notch in a revenue increase of 30.2% during the same period, last year. Meanwhile, the company announced its Average Daily Active Users grew 21% year-over-year to 52.2 million.
David Baszucki, CEO of Roblox commented in his letter to shareholders, “We are driving record levels of users and engagement globally as we execute on our innovation roadmap and broaden the appeal of Roblox across geographies and age groups. We continue to make progress on key operational and product initiatives to enhance the long-term value of the Roblox platform.” Moving along, shares of RBLX stock are down over 60%. Meanwhile, RBLX stock is looking to start off this shortened trading week at $37.94 per share. With this in mind, will you be watching RBLX stock in the stock market this week?
If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel. CLICK HERE RIGHT NOW!! | NVDA |
https://finnhub.io/api/news?id=512c8dbfb4ff477a245208e7423cae0c99d8db173fa549051a679f242cb736d1 | Trading The Top 10 Stocks From 40 Large Hedge Funds: Trading Update 9/4/2022 | A strategy selecting 10 of the 50 stocks, equally weighted, would have increased total return to 178.0%, an active return of 61.6% vs. SPY. | 2022-09-04T17:24:20 | SeekingAlpha | Trading The Top 10 Stocks From 40 Large Hedge Funds: Trading Update 9/4/2022
Summary
- This portfolio strategy uses the quarterly 13F filings to extract 50 consensus stocks from 40 large hedge funds that have more than $3.5 billion in Assets Under Management.
- From 1/2/2016 to date investing in all 50 stocks, equally weighted, would have produced a total return of 78.5%, an active return of -37.8% when compared to SPY’s 116.3%.
- A strategy selecting 10 of the 50 stocks, equally weighted, would have increased the total return to 178.0%, an active return of 61.6% when compared to SPY.
- Here we report the most recent holdings and the trading signals for 9/6/2022.
Research from Barclays and Novus published in October 2019 found that a copycat stock selection strategy that combines conviction and consensus of fund managers that have longer-term views outperformed the S&P 500 by 3.80% on average annually from Q1 2004 to Q2 2019.
Based on that rational, we previously presented two trading models (in Article-1 and Article-2) that use the top 50 consensus stocks of 40 Large Hedge Funds (listed in Appendix A below), that historically outperformed the S&P 500. The iM-Top50(from 40 Hedge Funds) model holds all 50 stocks equally weighted and has a low turnover. The iM-Top10(from 40 Hedge Funds) model holds a subset of 10 stocks, also equally weighted, but with higher turnover which is rewarded by improved returns.
The performance simulation, and generation of trading signals, for these strategies is done using the platform Portfolio123 and reported below. For more comprehensive description of the 50 stock universe please refer to here.
Note: This update is published on Seeking Alpha, editor permitting, only if the model has generated trading signals.
Model Performance:
Note: The iM-Top10VariableWeight model (green line) is an experimental model. It holds the same stocks as the iM-Top10 model put position weights are adjusted to an inverse function of market capitalization, that is the higher the market cap of the stock the lower the position weight. As a consequence it is difficult to trade as market capitalization changes with the stock price.
Trade Signals for 9/6/2022
|iM-Top10(of 40 Large Hedge Funds)|
|Action||Ticker||Shares||Name|
|SELL||ADBE||67||Adobe, Inc.|
|BUY||QCOM||192||QUALCOMM, Inc.|
|iM-Top50(of 40 Large Hedge Funds)|
|No Trades|
The models trade on the first trading day of the week. Trading signals are published on a weekly basis here on Seeking Alpha (subject to model trading and editor’s acceptance) and on iMarketSignals. Next update on Sunday 9/13/2022
Holdings for iM-Top10(of 40 Large Hedge Funds) as of 9/2/2022
|Current Portfolio 9/2/2022||Cash Flow|
|Ticker||Number of Shares||Weight||Value now||Open Date||Open Costs||Rebal Costs | Return||Dividends Received||Gain to date|
|(AAPL)||179||10.03%||$27,890||08/22/22||($30,109)||—||—||($2,219)|
|(ADBE)||67||8.87%||$24,665||08/08/22||($29,199)||—||—||($4,533)|
|(CHTR)||67||9.81%||$27,278||08/22/22||($29,707)||—||—||($2,429)|
|(DHR)||103||9.98%||$27,750||06/13/22||($25,190)||—||$26||$2,586|
|(INCY)||411||10.38%||$28,856||08/22/22||($30,326)||—||—||($1,470)|
|(MA)||87||10.10%||$28,063||05/02/22||($27,266)||($3,816)||$37||($2,982)|
|(SCHW)||416||10.53%||$29,261||08/08/22||($28,585)||—||$92||$768|
|(TDG)||50||10.81%||$30,060||05/23/22||($28,158)||—||$925||$2,827|
|(TSM)||321||9.34%||$25,969||08/08/22||($28,268)||—||—||($2,299)|
|(V)||140||9.96%||$27,686||12/07/20||($30,865)||$1,269||$360||($1,549)|
Holdings for iM-Top50(of 40 Large Hedge Funds) as of 8/19/2022
|Current Portfolio 9/2/2022||Cash Flow|
|Ticker||Number of Shares||Weight||Value now||Open Date||Open Costs||Rebal Costs | Return||Dividends Received||Gain to date|
|(AAPL)||24||2.09%||$3,739||01/04/16||($2,109)||$4,982||$269||$6,881|
|(ADBE)||9||1.86%||$3,313||01/04/16||($2,118)||$3,218||—||$4,414|
|(ALTR)||69||1.88%||$3,358||08/22/22||($3,714)||—||—||($357)|
|(AMT)||14||1.97%||$3,512||01/04/16||($2,033)||$1,727||$480||$3,686|
|(AMZN)||30||2.14%||$3,825||01/04/16||($1,913)||$3,912||—||$5,825|
|(APP)||140||1.89%||$3,373||05/30/22||($3,147)||($2,402)||—||($2,176)|
|(BRK.B)||13||2.02%||$3,610||05/23/22||($4,343)||$144||—||($589)|
|(BSX)||96||2.18%||$3,887||02/24/20||($3,949)||$152||—||$90|
|(CHTR)||8||1.82%||$3,257||08/22/22||($3,547)||—||—||($290)|
|(CNI)||32||2.10%||$3,744||05/23/22||($4,410)||$819||$23||$175|
|(COUP)||55||1.76%||$3,134||08/19/19||($3,549)||($3,491)||—||($3,906)|
|(CRM)||20||1.72%||$3,074||05/22/17||($2,315)||$840||—||$1,599|
|(CRWD)||20||1.93%||$3,449||05/26/20||($4,210)||$5,621||—||$4,860|
|(DHR)||13||1.96%||$3,502||08/19/19||($3,547)||$3,433||$54||$3,442|
|(DOCU)||57||1.74%||$3,104||08/24/20||($5,118)||($4,258)||—||($6,272)|
|(ELV)||8||2.16%||$3,856||02/28/22||($4,503)||$854||$29||$237|
|(FATE)||133||1.99%||$3,554||02/16/21||($6,499)||($3,851)||—||($6,796)|
|(FIS)||38||1.92%||$3,419||08/22/22||($3,724)||—||—||($305)|
|(FISV)||44||2.50%||$4,463||11/18/19||($3,209)||($1,830)||—||($576)|
|(FOLD)||396||2.54%||$4,538||05/23/22||($4,407)||$1,277||—||$1,408|
|(GFS)||62||2.01%||$3,589||08/22/22||($3,680)||—||—||($92)|
|(GOOGL)||34||2.05%||$3,667||01/04/16||($2,281)||$2,932||—||$4,318|
|(INCY)||45||1.77%||$3,159||02/28/22||($4,566)||$1,507||—||$100|
|(INTU)||8||1.88%||$3,360||02/19/19||($3,523)||$3,219||$112||$3,168|
|(KMX)||39||1.91%||$3,415||05/24/21||($5,377)||$721||—||($1,241)|
|(MA)||11||1.99%||$3,548||01/04/16||($2,088)||$2,636||$144||$4,241|
|(MCO)||12||1.91%||$3,413||01/04/16||($2,044)||$2,791||$259||$4,419|
|(META)||22||1.98%||$3,527||01/04/16||($2,047)||($928)||—||$553|
|(MSFT)||16||2.29%||$4,097||01/04/16||($2,085)||$3,882||$366||$6,260|
|(MU)||62||1.96%||$3,492||08/22/22||($3,634)||—||—||($142)|
|(NFLX)||17||2.15%||$3,844||01/04/16||($2,092)||$687||—||$2,439|
|(NOW)||8||1.95%||$3,476||11/19/18||($2,825)||$3,001||—||$3,652|
|(NVDA)||21||1.61%||$2,866||02/24/20||($3,830)||$6,951||$16||$6,003|
|(QCOM)||24||1.73%||$3,084||08/24/20||($5,106)||$3,168||$238||$1,384|
|(SCHW)||58||2.29%||$4,080||02/28/22||($4,555)||($526)||$24||($978)|
|(SGEN)||24||2.05%||$3,656||01/04/16||($2,099)||$2,907||—||$4,465|
|(SNOW)||26||2.50%||$4,459||02/16/21||($6,487)||($89)||—||($2,117)|
|(SPGI)||10||1.95%||$3,476||05/23/22||($4,544)||$976||$20||($72)|
|(TDG)||6||2.02%||$3,607||01/04/16||($2,071)||$2,572||$1,023||$5,131|
|(TMO)||8||2.44%||$4,348||05/23/22||($4,446)||—||$2||($95)|
|(TMUS)||28||2.23%||$3,975||05/23/22||($4,395)||$704||—||$285|
|(TSLA)||18||2.72%||$4,864||05/26/20||($4,098)||$10,984||—||$11,749|
|(TSM)||43||1.95%||$3,479||11/22/21||($6,768)||$1,599||$61||($1,629)|
|(UBER)||137||2.23%||$3,980||05/23/22||($4,358)||$1,350||—||$972|
|(UNH)||7||2.02%||$3,614||05/22/17||($2,274)||$3,836||$314||$5,492|
|(UNP)||17||2.13%||$3,807||05/23/22||($4,331)||$670||$48||$194|
|(V)||17||1.88%||$3,362||01/04/16||($2,046)||$1,693||$170||$3,179|
|(W)||71||1.98%||$3,527||11/23/20||($5,390)||($5,138)||—||($7,001)|
|(WDAY)||25||2.22%||$3,964||05/26/20||($4,213)||$159||—||($91)|
Appendix A
Hedge Fund Filers:
- Akre Capital Management LLC
- Alkeon Capital Management LLC
- Altimeter Capital Management, LP
- Aristotle Capital Management, LLC
- Baker Bros. Advisors LP
- Barings LLC
- Calamos Advisors LLC
- Capital International Ltd
- Citadel Advisors LLC
- Coatue Management LLC
- D. E. Shaw & Company, Inc.
- Disciplined Growth Investors Inc
- DSM Capital Partners LLC
- Echo Street Capital Management LLC
- FMR LLC
- Fort Washington Investment Advisors Inc
- GW&K Investment Management, LLC
- Hitchwood Capital Management LP
- Jennison Associates LLC
- King Luther Capital Management Corp
- Kohlberg Kravis Roberts & Company LP
- Lone Pine Capital LLC
- Loomis Sayles & Company LP
- Matrix Capital Management Company, LP
- Meritage Group LP
- Panagora Asset Management Inc
- Perceptive Advisors LLC
- Pinebridge Investments, LP
- Redmile Group, LLC
- Renaissance Technologies LLC
- Riverbridge Partners LLC
- Ruane, Cunniff & Goldfarb LP
- Steadfast Capital Management LP
- TCI Fund Management Ltd
- Tiger Global Management LLC
- Verition Fund Management LLC
- Viking Global Investors LP
- Westfield Capital Management Company LP
- Whale Rock Capital Management LLC
- Winslow Capital Management, LLC
This article was written by
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Comments (4) | NVDA |
https://finnhub.io/api/news?id=6e5a5b1a81f1f004c1641cc3352a99bc86f53200666feee1a6e918a7c8c09cbf | Is Nvidia Stock a Buy Now? | In late August, Nvidia (NASDAQ: NVDA) reported results for its fiscal second-quarter (ended July 31), and they weren't great. The long-term opportunity for Nvidia looks bright as semiconductors are rising in popularity, and the company is still seeing success in the industries with the highest potential. Second-quarter earnings results were a significant shift compared to Nvidia's previous quarters. | 2022-09-04T07:53:00 | Yahoo | Is Nvidia Stock a Buy Now?
In late August, Nvidia (NASDAQ: NVDA) reported results for its fiscal second-quarter (ended July 31), and they weren't great. The long-term opportunity for Nvidia looks bright as semiconductors are rising in popularity, and the company is still seeing success in the industries with the highest potential. Second-quarter earnings results were a significant shift compared to Nvidia's previous quarters. | NVDA |
https://finnhub.io/api/news?id=8510c14b6b28be6b8bb372577498f7f867ee2f01fca26c9534a5d0a71ddd4308 | 1 Growth Stock To Buy and Hold in a Market Downturn | Nvidia (NASDAQ: NVDA) has seen its share price fall 59% off its high. After soaring during the earlier stages of the pandemic, Nvidia's sales growth is slowing. Let's see why Nvidia could be an outstanding stock to buy if the broader-market declines take its share prices down even more. | 2022-09-04T07:34:00 | Yahoo | 1 Growth Stock To Buy and Hold in a Market Downturn
Nvidia (NASDAQ: NVDA) has seen its share price fall 59% off its high. After soaring during the earlier stages of the pandemic, Nvidia's sales growth is slowing. Let's see why Nvidia could be an outstanding stock to buy if the broader-market declines take its share prices down even more. | NVDA |
https://finnhub.io/api/news?id=c3efe70eca96a5d740e9c13e5c004869037bcb5b3df76ca275c9e1046044c429 | Worried About Nvidia? Buy This Tech Stock Right Now | Nvidia's (NASDAQ: NVDA) fiscal 2022 second-quarter results (for the three months ending July 31, 2022) sent shockwaves through the tech industry, as its tepid year-over-year growth, shrinking margins, and terrible outlook suggested that robust semiconductor demand may have come to an end. The 33% decline in revenue from sales of gaming graphics cards weighed heavily on Nvidia's quarterly results. The company had to contend with an oversupply of GPUs (graphics processing units) as cryptocurrency miners sold off their chips and demand from gamers weakened. | 2022-09-04T03:05:00 | Yahoo | Worried About Nvidia? Buy This Tech Stock Right Now
Nvidia's (NASDAQ: NVDA) fiscal 2022 second-quarter results (for the three months ending July 31, 2022) sent shockwaves through the tech industry, as its tepid year-over-year growth, shrinking margins, and terrible outlook suggested that robust semiconductor demand may have come to an end. The 33% decline in revenue from sales of gaming graphics cards weighed heavily on Nvidia's quarterly results. The company had to contend with an oversupply of GPUs (graphics processing units) as cryptocurrency miners sold off their chips and demand from gamers weakened. | NVDA |
https://finnhub.io/api/news?id=5ae205a97b1b8842b5feeec8f8ded70debc160197f29e538a6a9b1945878f7bb | The Fed Chief Speaks; Wall Street Reacts | And we talk with Harvard Business School professor Ranjay Gulati about key insights from his book "Deep Purpose: The Heart and Soul of High-Performance Companies." | 2022-09-03T06:00:00 | Yahoo | The Fed Chief Speaks; Wall Street Reacts
And we talk with Harvard Business School professor Ranjay Gulati about key insights from his book "Deep Purpose: The Heart and Soul of High-Performance Companies."
And we talk with Harvard Business School professor Ranjay Gulati about key insights from his book "Deep Purpose: The Heart and Soul of High-Performance Companies."
Mark Spitznagel and Nassim Taleb have been watching for black swans for decades. "We’ve never seen anything like this level of total debt and leverage in the system," he tells Fortune. "It's an experiment."
Warren Buffett is undeniably the most famous and influential investor in modern history, based on his extraordinary performance record. Not surprisingly, the investment portfolio of Berkshire Hathaway Inc. (BRK.A), the holding company employing the Oracle of Omaha as chairman and CEO, receives wide media attention and scrutiny, even though Buffett is no longer making every investment decision. Despite his unparalleled success, Buffett's investment model has long been transparent, straightforward, and consistent.
Stocks have blown past expectations for 2023 – but some analysts are bracing for a sell-off as the market approaches record highs.
The JPMorgan Equity Premium Income ETF’s (NYSEARCA:JEPI) combination of high yield and monthly payments has quickly made it one of the market’s most popular ETFs. Investors who like JEPI’s style now have another high-yield competitor to consider — the NEOS S&P 500 High Income ETF (BATS:SPYI), which also pays on a monthly basis and yields 10.7%. Let’s take a closer look at this intriguing new option for high-yield investors. What is SPYI ETF’s Strategy? Launched in August of 2022, SPYI is still a
Just because you retire doesn't mean you have to stop working. And when work is an option rather than a requirement, it's possible to select a low-stress job that multiplies fulfillment without adding anxiety - but still provides a bit … Continue reading → The post 12 Low-Stress Jobs You Can Do in Retirement appeared first on SmartAsset Blog.
Berkshire Hathaway historically reports its quarterly financial results on weekends, and CEO Warren Buffet has a simple reason why. Berkshire (ticker: BRK.A, BRK.B) reported second-quarter earnings Saturday morning. Many other public companies, however, release their earnings results during the trading week, either before the market opens or after the closing bell.
The market rally is at an infection point after notable losses. Here's what to do. Warren Buffett's Berkshire earnings rose.
Is there a point at which I should stop reinvesting stock dividends and invest the money or save the cash? -Anonymous Many financial experts recommend that you reinvest dividends most of the time – and I'm inclined to agree. The … Continue reading → The post Ask an Advisor: Should I Stop Reinvesting Dividends? appeared first on SmartAsset Blog.
There are many different approaches and strategies for retirement investing that might appeal to you. But how do you tell if a certain strategy works for your situation? When evaluating different approaches, consider how each strategy is put together and … Continue reading → The post Here's How Much to Keep in Stocks, Bonds and Cash in Retirement appeared first on SmartAsset Blog.
(Bloomberg) -- Dan Loeb is hardly the first Wall Street titan to lament how meme stock traders have made short selling a perilous endeavor. But that Loeb, who runs the hedge fund Third Point LLC, did so now is what’s interesting.Most Read from BloombergTexas Power Prices to Surge 800% on Sunday Amid Searing HeatNetanyahu Seeks to Change How Judges Are Named, Then Stop RevampChina Embassy Rips ‘Brutal’ Russia Border Incident in Rare MoveThe Most Dangerous Job for Lawyers Is Being on Trump’s Legal
The week ahead will feature a crucial inflation report and earnings out of Disney, UPS, and Alibaba as second quarter earnings season winds down.
AustralianSuper, one of the world’s largest pensions, halved its Apple stock investment and sold Microsoft stock, while buying shares of Tesla and Nvidia.
One in 6 asset and wealth management companies will be bought or shut down in the next five years, according to a PwC survey of asset managers and institutional investors.
Warren Buffett's Berkshire Hathaway operating profit rose by 10%. BRKB stock is just out of buy range.
Will generative artificial intelligence boost Palantir stock in the commercial market amid slowing revenue growth for the company?
VZ stock provides a dividend but a buyback has been shelved amid 5G wireless investments. When will revenue growth reaccelerate?
Travel scams are on the rise. Don't be a victim.
Retirement account withdrawals not only help you cover basic living expenses, but they also can fund the lifestyle you've always envisioned in your golden years. That money, however, can have unintended tax consequences. Required minimum distributions (RMDs) and other withdrawals … Continue reading → The post Social Security Taxes Can Hit You Hard in Retirement. Here's How to Lower Them appeared first on SmartAsset Blog.
Dubbed the Oracle of Omaha, Warren Buffett is renowned for his simple and frugal lifestyle. Despite being the sixth richest person globally, with a net worth estimated at $117.9 billion, Buffett continues to live in the same modest home in Omaha that he purchased in 1958 for just $31,500. Adjusted for inflation, that amount today would be approximately $328,990.80, a mere 0.000279% of his total net worth. Buffett has consistently ranked the purchase of his home as the third-best investment he ha
As a pandemic-inspired boom ends, entrepreneurs and giant corporations alike are counting on customers to keep accumulating more stuff than they can squeeze into their homes. | NVDA |
https://finnhub.io/api/news?id=286e322601cac148c4eff9d8bb464f910aa3c21a08c4fdc4ec6292f5642b5fa7 | How Much Revenue Does Nvidia Get From China? It's Complicated | The way Nvidia's gaming business works makes it hard to tell how important Chinese end users are. | 2022-09-03T05:50:00 | Yahoo | How Much Revenue Does Nvidia Get From China? It's Complicated
The way Nvidia's gaming business works makes it hard to tell how important Chinese end users are.
The way Nvidia's gaming business works makes it hard to tell how important Chinese end users are.
Mark Spitznagel and Nassim Taleb have been watching for black swans for decades. "We’ve never seen anything like this level of total debt and leverage in the system," he tells Fortune. "It's an experiment."
Warren Buffett is undeniably the most famous and influential investor in modern history, based on his extraordinary performance record. Not surprisingly, the investment portfolio of Berkshire Hathaway Inc. (BRK.A), the holding company employing the Oracle of Omaha as chairman and CEO, receives wide media attention and scrutiny, even though Buffett is no longer making every investment decision. Despite his unparalleled success, Buffett's investment model has long been transparent, straightforward, and consistent.
Stocks have blown past expectations for 2023 – but some analysts are bracing for a sell-off as the market approaches record highs.
The JPMorgan Equity Premium Income ETF’s (NYSEARCA:JEPI) combination of high yield and monthly payments has quickly made it one of the market’s most popular ETFs. Investors who like JEPI’s style now have another high-yield competitor to consider — the NEOS S&P 500 High Income ETF (BATS:SPYI), which also pays on a monthly basis and yields 10.7%. Let’s take a closer look at this intriguing new option for high-yield investors. What is SPYI ETF’s Strategy? Launched in August of 2022, SPYI is still a
Just because you retire doesn't mean you have to stop working. And when work is an option rather than a requirement, it's possible to select a low-stress job that multiplies fulfillment without adding anxiety - but still provides a bit … Continue reading → The post 12 Low-Stress Jobs You Can Do in Retirement appeared first on SmartAsset Blog.
Berkshire Hathaway historically reports its quarterly financial results on weekends, and CEO Warren Buffet has a simple reason why. Berkshire (ticker: BRK.A, BRK.B) reported second-quarter earnings Saturday morning. Many other public companies, however, release their earnings results during the trading week, either before the market opens or after the closing bell.
The market rally is at an infection point after notable losses. Here's what to do. Warren Buffett's Berkshire earnings rose.
Is there a point at which I should stop reinvesting stock dividends and invest the money or save the cash? -Anonymous Many financial experts recommend that you reinvest dividends most of the time – and I'm inclined to agree. The … Continue reading → The post Ask an Advisor: Should I Stop Reinvesting Dividends? appeared first on SmartAsset Blog.
There are many different approaches and strategies for retirement investing that might appeal to you. But how do you tell if a certain strategy works for your situation? When evaluating different approaches, consider how each strategy is put together and … Continue reading → The post Here's How Much to Keep in Stocks, Bonds and Cash in Retirement appeared first on SmartAsset Blog.
The week ahead will feature a crucial inflation report and earnings out of Disney, UPS, and Alibaba as second quarter earnings season winds down.
(Bloomberg) -- Dan Loeb is hardly the first Wall Street titan to lament how meme stock traders have made short selling a perilous endeavor. But that Loeb, who runs the hedge fund Third Point LLC, did so now is what’s interesting.Most Read from BloombergTexas Power Prices to Surge 800% on Sunday Amid Searing HeatNetanyahu Seeks to Change How Judges Are Named, Then Stop RevampChina Embassy Rips ‘Brutal’ Russia Border Incident in Rare MoveThe Most Dangerous Job for Lawyers Is Being on Trump’s Legal
AustralianSuper, one of the world’s largest pensions, halved its Apple stock investment and sold Microsoft stock, while buying shares of Tesla and Nvidia.
One in 6 asset and wealth management companies will be bought or shut down in the next five years, according to a PwC survey of asset managers and institutional investors.
Warren Buffett's Berkshire Hathaway operating profit rose by 10%. BRKB stock is just out of buy range.
Travel scams are on the rise. Don't be a victim.
VZ stock provides a dividend but a buyback has been shelved amid 5G wireless investments. When will revenue growth reaccelerate?
Will generative artificial intelligence boost Palantir stock in the commercial market amid slowing revenue growth for the company?
Retirement account withdrawals not only help you cover basic living expenses, but they also can fund the lifestyle you've always envisioned in your golden years. That money, however, can have unintended tax consequences. Required minimum distributions (RMDs) and other withdrawals … Continue reading → The post Social Security Taxes Can Hit You Hard in Retirement. Here's How to Lower Them appeared first on SmartAsset Blog.
Dubbed the Oracle of Omaha, Warren Buffett is renowned for his simple and frugal lifestyle. Despite being the sixth richest person globally, with a net worth estimated at $117.9 billion, Buffett continues to live in the same modest home in Omaha that he purchased in 1958 for just $31,500. Adjusted for inflation, that amount today would be approximately $328,990.80, a mere 0.000279% of his total net worth. Buffett has consistently ranked the purchase of his home as the third-best investment he ha
As a pandemic-inspired boom ends, entrepreneurs and giant corporations alike are counting on customers to keep accumulating more stuff than they can squeeze into their homes. | NVDA |
https://finnhub.io/api/news?id=dbcf5d5047d23c2c730aab97f34e57004c778f126ab47426d66f895be8ea9248 | 1 Big Reason Why Nvidia's Second-Quarter Earnings Results Underwhelmed Investors | Although this graphics processing unit manufacturer faces strong short-term headwinds, its long-term future remains bright. | 2022-09-03T03:01:00 | Yahoo | 1 Big Reason Why Nvidia's Second-Quarter Earnings Results Underwhelmed Investors
Although this graphics processing unit manufacturer faces strong short-term headwinds, its long-term future remains bright.
Although this graphics processing unit manufacturer faces strong short-term headwinds, its long-term future remains bright.
Mark Spitznagel and Nassim Taleb have been watching for black swans for decades. "We’ve never seen anything like this level of total debt and leverage in the system," he tells Fortune. "It's an experiment."
Warren Buffett is undeniably the most famous and influential investor in modern history, based on his extraordinary performance record. Not surprisingly, the investment portfolio of Berkshire Hathaway Inc. (BRK.A), the holding company employing the Oracle of Omaha as chairman and CEO, receives wide media attention and scrutiny, even though Buffett is no longer making every investment decision. Despite his unparalleled success, Buffett's investment model has long been transparent, straightforward, and consistent.
Stocks have blown past expectations for 2023 – but some analysts are bracing for a sell-off as the market approaches record highs.
The JPMorgan Equity Premium Income ETF’s (NYSEARCA:JEPI) combination of high yield and monthly payments has quickly made it one of the market’s most popular ETFs. Investors who like JEPI’s style now have another high-yield competitor to consider — the NEOS S&P 500 High Income ETF (BATS:SPYI), which also pays on a monthly basis and yields 10.7%. Let’s take a closer look at this intriguing new option for high-yield investors. What is SPYI ETF’s Strategy? Launched in August of 2022, SPYI is still a
Just because you retire doesn't mean you have to stop working. And when work is an option rather than a requirement, it's possible to select a low-stress job that multiplies fulfillment without adding anxiety - but still provides a bit … Continue reading → The post 12 Low-Stress Jobs You Can Do in Retirement appeared first on SmartAsset Blog.
Berkshire Hathaway historically reports its quarterly financial results on weekends, and CEO Warren Buffet has a simple reason why. Berkshire (ticker: BRK.A, BRK.B) reported second-quarter earnings Saturday morning. Many other public companies, however, release their earnings results during the trading week, either before the market opens or after the closing bell.
The market rally is at an infection point after notable losses. Here's what to do. Warren Buffett's Berkshire earnings rose.
Is there a point at which I should stop reinvesting stock dividends and invest the money or save the cash? -Anonymous Many financial experts recommend that you reinvest dividends most of the time – and I'm inclined to agree. The … Continue reading → The post Ask an Advisor: Should I Stop Reinvesting Dividends? appeared first on SmartAsset Blog.
There are many different approaches and strategies for retirement investing that might appeal to you. But how do you tell if a certain strategy works for your situation? When evaluating different approaches, consider how each strategy is put together and … Continue reading → The post Here's How Much to Keep in Stocks, Bonds and Cash in Retirement appeared first on SmartAsset Blog.
The week ahead will feature a crucial inflation report and earnings out of Disney, UPS, and Alibaba as second quarter earnings season winds down.
(Bloomberg) -- Dan Loeb is hardly the first Wall Street titan to lament how meme stock traders have made short selling a perilous endeavor. But that Loeb, who runs the hedge fund Third Point LLC, did so now is what’s interesting.Most Read from BloombergTexas Power Prices to Surge 800% on Sunday Amid Searing HeatNetanyahu Seeks to Change How Judges Are Named, Then Stop RevampChina Embassy Rips ‘Brutal’ Russia Border Incident in Rare MoveThe Most Dangerous Job for Lawyers Is Being on Trump’s Legal
AustralianSuper, one of the world’s largest pensions, halved its Apple stock investment and sold Microsoft stock, while buying shares of Tesla and Nvidia.
One in 6 asset and wealth management companies will be bought or shut down in the next five years, according to a PwC survey of asset managers and institutional investors.
Warren Buffett's Berkshire Hathaway operating profit rose by 10%. BRKB stock is just out of buy range.
Travel scams are on the rise. Don't be a victim.
VZ stock provides a dividend but a buyback has been shelved amid 5G wireless investments. When will revenue growth reaccelerate?
Will generative artificial intelligence boost Palantir stock in the commercial market amid slowing revenue growth for the company?
Retirement account withdrawals not only help you cover basic living expenses, but they also can fund the lifestyle you've always envisioned in your golden years. That money, however, can have unintended tax consequences. Required minimum distributions (RMDs) and other withdrawals … Continue reading → The post Social Security Taxes Can Hit You Hard in Retirement. Here's How to Lower Them appeared first on SmartAsset Blog.
Dubbed the Oracle of Omaha, Warren Buffett is renowned for his simple and frugal lifestyle. Despite being the sixth richest person globally, with a net worth estimated at $117.9 billion, Buffett continues to live in the same modest home in Omaha that he purchased in 1958 for just $31,500. Adjusted for inflation, that amount today would be approximately $328,990.80, a mere 0.000279% of his total net worth. Buffett has consistently ranked the purchase of his home as the third-best investment he ha
As a pandemic-inspired boom ends, entrepreneurs and giant corporations alike are counting on customers to keep accumulating more stuff than they can squeeze into their homes. | NVDA |
https://finnhub.io/api/news?id=a48047cd8d4c7afac9616944004e2bd0a0eb93ba335f4a6c39a21f5f116639d5 | Wall Street Breakfast: What Moved Markets | Listen on the go! A daily podcast of Wall Street Breakfast will be available this morning on Seeking Alpha, iTunes, Stitcher and Spotify. | 2022-09-03T00:58:09 | SeekingAlpha | Wall Street Breakfast: What Moved Markets
Listen on the go! A daily podcast of Wall Street Breakfast will be available this morning on Seeking Alpha, iTunes, Stitcher and Spotify.
The S&P 500 on Friday posted another week of hefty losses, falling 3.29% for the five-day session. The benchmark index has now posted a three-week losing streak after a four-week run of gains. The markets are closed on Monday for the Labor Day holiday. Muted investor sentiment carried on from last week after the U.S. Federal Reserve Chair at the Jackson Hole symposium indicated that policymakers were committed to raising rates in order to combat inflation. A trend of good-news-is-bad-news trading also weighed on the S&P 500, as economic data released during the week supported the case for a hawkish Fed. Investors digested job openings data that exceeded consensus expectations, a retooled ADP report that showed less-than-expected jobs were added in August, jobless claims figures, a stronger-than-expected ISM manufacturing PMI readout and an unexpected increase in the unemployment rate. The S&P 500 along with the broader market also took a hit from semiconductor stocks which fell after the U.S. prohibited Nvidia from selling some of its products to China. Oil prices ended the week higher on expectations that OPEC+ will discuss output cuts at a meeting next week. Brent crude futures settled at $93.02 a barrel, while U.S. West Texas Intermediate crude futures settled at $86.87 a barrel. Read Seeking Alpha's Catalyst Watch for a preview of some the big events scheduled for the week ahead.
As the fallout from Jackson Hole rippled through markets this week, investors had their eyes on more drama stemming from the central bank. The Federal Reserve began to raise the throttle of its quantitative tightening (QT) program by picking up the pace at which it unwinds its balance sheet. The move is a stark reversal of pandemic-era bond buying, which saw the central bank nearly double its balance sheet to nearly $9T from $4.2T over the past two years.
Bigger picture: Unlike the large rate hikes being broadcast by the Fed - which have been quick to capture investor attention - QT is a more opaque way of tightening financial conditions. Note that the central bank is not selling its Treasury holdings outright, but is rather letting them mature to shrink its balance sheet. After an initial few months at a slower pace, monthly caps for offloading Treasuries and mortgage-backed securities are set to double to $60B and $35B, respectively, compared to the peak combined rate of $50B the last time the Fed trimmed its balance sheet in 2017-2019.
The whole thing is somewhat of a complicated accounting process, involving settlement windows and redemption caps, but at a basic level, it ultimately reduces the supply of bank reserves and drains money from the financial system. Some safety valves have been implemented this time around, like the Standing Repo Facility, after chaos in the repo market prompted an early end to the last QT program in 2019. The new facility will allow primary dealers to borrow more reserves from the Fed against high-quality collateral, but some caution it might not be enough to stave off liquidity issues, and could complicate Chair Powell's plan to raise rates and bring inflation under control.
Commentary: "I don't think there is appreciation for QT, by markets or the Fed," said Solomon Tadesse, head of quantitative equities strategies North America at Societe Generale. "In the end, if QE mattered, so will QT. It might not be totally symmetrical, but there will be a meaningful impact." (9 comments)
Weeks after 'Big Short' investor Michael Burry said the "market silliness" is back, famed fund manager Jeremy Grantham issued a warning to "prepare for an epic finale" to the market cycle. He argued that the current "superbubble" in asset prices hasn't deflated yet and appears to be dangerously close to its "final act." Some have compared Grantham and Burry to "a broken clock" that is right twice a day, especially since they have been issuing "superbubble" warnings since the pandemic began, but the two have made serious money off bubbles in Japan in the late 1980s, the dot-com era and the U.S. housing market crash in 2008.
Quote: "One of those features is the bear-market rally after the initial derating stage of the decline but before the economy has clearly begun to deteriorate, as it always has when superbubbles burst," Grantham wrote in the fresh research note. "This, in all three previous cases, recovered over half the market's initial losses, luring unwary investors back just in time for the market to turn down again, only more viciously, and the economy to weaken. This summer's rally has so far perfectly fit the pattern."
"My bet is that we're going to have a fairly tough time of it economically and financially before this is washed through the system. What I don't know is: Does that get out of hand like it did in the '30s, is it pretty well contained as it was in 2000, or is it somewhere in the middle? The U.S. stock market remains very expensive and an increase in inflation like the one this year has always hurt multiples, although more slowly than normal this time. But now the fundamentals have also started to deteriorate enormously and surprisingly: Between COVID in China, war in Europe, food and energy crises, record fiscal tightening, and more, the outlook is far grimmer than could have been foreseen in January."
Outlook: Despite the warnings, an aggressive Fed tightening cycle and worries about the economy, most American retirement savers haven't made changes to their portfolios. Only 5% of 401(k) and 403(b) investors shifted their asset allocations during the second quarter, according to Fidelity Investments, and the majority of those investors only made one switch to more conservative assets. Set it and forget it? Don't time the market? (167 comments)
1 in 6 Americans are smoking marijuana these days, a new high in the latest Gallup poll, which painted how the times are rapidly changing. Only 1 in 8 Americans were toking last year, and that drops down to 7% of the population when going back to 2013. The trend has picked up as recreational use of cannabis becomes legal in nearly half of all U.S. states (with 38 states approving it for medical purposes), supported by shifting attitudes and cultural trends of the American public.
Putting it in perspective: Nearly a third of adult respondents under the age of 35 told Gallup that they smoke marijuana, while nearly half (a total of 48%) of Americans have tried pot at some point in their lifetime. That's up from 4% of the U.S. population that took a hit during the height of the hippie movement in 1969, 24% by 1977, 33% in 1985 and 38% in 2013. Another interesting find is that regular cannabis usage has surpassed cigarette use for the first time, with only 11% of Americans saying they smoke stoges in the poll conducted in July.
"The future of marijuana use is, I would say, somewhat up in the air, but the probability is higher that its use will increase rather than decrease," wrote Gallup Senior Scientist Dr. Frank Newport. "Those who have tried marijuana are particularly likely to say marijuana has positive effects, and the majority of Americans are not convinced that marijuana use is harmful either for its users or for society. In contrast, it should be noted, some authorities argue that marijuana is quite dangerous, particularly for young adults, and it is possible that attitudes toward its use could change if focus on the downsides of marijuana increases in the years ahead."
Legislative front: While Congress is looking to advance cannabis legislation at the federal level, there are still some strong headwinds to the measures being pitched on Capitol Hill. In July, the Cannabis Administration and Opportunity Act was introduced in the Senate to remove marijuana from the list of Schedule I controlled substances, but there are slim odds that the bill will pass. Back in April, the House also passed the Marijuana Opportunity Reinvestment and Expungement Act - which would erase prior marijuana convictions and conduct resentencing hearings - though the measure still needs approval in the Senate. (431 comments)
The shorts appear to be winning the recent battle at Bed Bath & Beyond (BBBY). A drubbing on Wednesday means investors can now buy the stock with the company's famous "20% off" coupon, and things didn't fare better the rest of week, with BBBY sliding to the $8 level. Shares were already deflating after meme mania pushed them up to the $23 range in mid-August, but they have shaved off nearly $1B in market value over the past two weeks.
The latest: Bed Bath unveiled a plan to reduce a third of its in-house home goods brands and cut 20% of jobs across corporate and the supply chain. It also announced commitments for more than $500M of new financing, while potentially raising capital by selling as many as 12M new shares. Following a strategic review, it will retain the buybuy BABY banner, but the company will shutter 150 "lower-producing" locations.
"While there is much work ahead, our road map is clear and we're confident that the significant changes we’ve announced today will have a positive impact on our performance,” said interim chief executive Sue Gove, after years of competition from the likes of Target (TGT) and Amazon (AMZN).
Burning through cash: Many of Bed Bath's efforts are aimed at steadying its balance sheet, which ended May with around $100M, compared to $1.1B a year earlier. The retailer also predicts it used up another $325M in cash during Q2, which is closer to the amount analysts forecast the company would use over two quarters. It also means the cash burn over the last half a year was north of $800M, not a great sign especially when BBBY's market cap is now around $760M. (76 comments)
Longtime Starbucks (SBUX) CEO Howard Schultz is passing over the reins again after returning as the head of the company for the third time in April. Schultz was previously CEO from 1986 to 2000, when his specialty coffee shop called Il Giornale merged with Starbucks (and eventually went public), and from 2008 to 2017, when he succeeded Jim Donald during the financial crisis. His latest stint followed the retirement of Kevin Johnson, though it was an interim position until a new CEO was found.
The new face of Starbucks: Hailing from consumer goods giant Reckitt Benckiser (OTCPK:RBGPF), Laxman Narasimhan will join Starbucks on October 1. The 55-year-old is credited for navigating the Lysol and Durex maker through the pandemic, and revitalizing the company following a sales slump that even led to a raise in annual guidance earlier this year. His move to Starbucks will be somewhat of a long onboarding process, with Narasimhan relocating from London to the Seattle area to work closely with Schultz, before assuming the CEO role and taking the helm in April 2023.
"Laxman is a strategic and transformational leader with deep experience in building powerful consumer brands," Schultz wrote in a letter to employees. "He is uniquely positioned to shape this work and lead the company forward with his partner-centered approach and demonstrated track record of building capabilities and driving growth in both mature and emerging markets."
Outlook: During the six-month onboarding process, Narasimhan will specifically dive into Starbucks' "Reinvention" program, which includes better pay for baristas and reimaging stores and the customer experience. Over the past year, more than 200 Starbucks stores in the U.S. have been unionized, with workers pushing for better benefits, wages and welfare. The cost of ingredients and labor is also surging along with inflation, while China's zero-COVID strategy has slowed business in one of the chain's largest overseas market. (44 comments)
U.S. Indices
Dow -3.% to 31,318. S&P 500 -3.3% to 3,924. Nasdaq -4.2% to 11,631. Russell 2000 -4.8% to 1,808. CBOE Volatility Index -0.4% to 25.47.
S&P 500 Sectors
Consumer Staples -2.4%. Utilities -1.6%. Financials -2.5%. Telecom -2.4%. Healthcare -1.8%. Industrials -3.6%. Information Technology -5.%. Materials -5.%. Energy -3.3%. Consumer Discretionary -2.7%.
World Indices
London -2.% to 7,281. France -1.7% to 6,168. Germany +0.6% to 13,050. Japan -3.5% to 27,651. China -1.5% to 3,186. Hong Kong -3.6% to 19,452. India -0.1% to 58,803.
Commodities and Bonds
Crude Oil WTI -6.2% to $87.25/bbl. Gold -1.6% to $1,722.6/oz. Natural Gas -4.2% to 8.902. Ten-Year Bond Yield -0.2 bps to 3.195.
Forex and Cryptos
EUR/USD -0.06%. USD/JPY +1.96%. GBP/USD -1.99%. Bitcoin -0.5%. Litecoin +15.6%. Ethereum +4.9%. XRP -1.8%.
Top S&P 500 Gainers
DXC Technology (DXC) +13%. Cardinal Health (CAH) +5%. Bath & Body Works (BBWI) +4%. Ulta Beauty (ULTA) +3%. Dollar General (DG) +3%.
Top S&P 500 Losers
NVIDIA (NVDA) -16%. PVH (PVH) -15%. Seagate Technology Holdings (STX) -12%. Catalent (CTLT) -12%. Freeport-McMoRan (FCX) -12%.
Where will the markets be headed next week? Current trends and ideas? Add your thoughts to the comments section.
This article was written by
Comments (6)
Get it!
Check out these other 19 EV's.
2. Probably anybody in the market needs to smoke some marijuana with everything getting whacked including bonds. Too bad cannabis companies cannot make money like regular drug dealers, maybe paying CEOs that don't know how to make money too much and or getting high on their own supply.
3. Apes should learn their lesson, don't buy doo doo just because other apes are buying doo doo. BBBY will gladly sell more and more stock to dumb apes so it has more cash to burn and stay afloat in the bathtub, management will always get paid no matter what.
We recognize that politics often intersects with the financial news of the day, so we invite you to click here - seekingalpha.com/... - to join the separate political discussion. | NVDA |
https://finnhub.io/api/news?id=4d634e6d87dffb2c01101cd5fef21003334eb13c9b5dad835fab2fcc83f01420 | Cryptocurrency News & Price Wrap-Up For Sept. 2, 2022 | It's been a busy week, from Ethereum and Bitcoin price action to Crypto.com backing out of its $495 million UEFA Champions League sponsorship, Snap (SNAP) scrapping its web3 team and analysts' latest views on Coinbase (COIN). Scroll down to catch up on all things crypto with IBD's weekly cryptocurrency news wrap-up. Be sure to also check this week's coverage of... | 2022-09-02T15:25:32 | Yahoo | Cryptocurrency News & Price Wrap-Up For Sept. 2, 2022
It's been a busy week, from Ethereum and Bitcoin price action to Crypto.com backing out of its $495 million UEFA Champions League sponsorship, Snap (SNAP) scrapping its web3 team and analysts' latest views on Coinbase (COIN). Scroll down to catch up on all things crypto with IBD's weekly cryptocurrency news wrap-up. Be sure to also check this week's coverage of... | NVDA |
https://finnhub.io/api/news?id=6effa1af8655a252ef6662b92e9153ad3be9a72f1ccf322928863cb4479d886c | S&P 500 Earnings Update: Slight Improvement But Market Action Trumps All | There was a slight sequential improvement in the forward 4-quarter estimate (FFQE) this week, but the 2023 and 2024 calendar year EPS for the S&P 500 continue to be revised lower. | 2022-09-02T14:45:00 | SeekingAlpha | S&P 500 Earnings Update: Slight Improvement But Market Action Trumps All
Summary
- There was a slight sequential improvement in the forward 4-quarter estimate (FFQE) this week, but the 2023 and 2024 calendar year EPS for the S&P 500 continue to be revised lower.
- The data really doesn’t give investors confidence that S&P 500 earnings will cure the stock market’s ills, but it’s not yet a disaster.
- The fact is the S&P 500 earnings data is more “coincident” than leading or lagging, at least looking through the aggregate earnings data.
There was a slight sequential improvement in the forward 4-quarter estimate (FFQE) this week, but the 2023 and 2024 calendar year EPS for the S&P 500 continue to be revised lower.
The data really doesn’t give investors confidence that S&P 500 earnings will cure the stock market’s ills, but it’s not yet a disaster. The fact is the S&P 500 earnings data is more “coincident” than leading or lagging, at least looking through the aggregate earnings data.
S&P 500 data:
- The forward 4-quarter estimate rose two cents this past week to $232.57 from last week’s $232.55 and if there is anything notable about this data point, it’s that it is the first sequential increase in the FFQE since the week of July 1.
- The S&P 500 PE ratio ended the week at 16.9x.
- The S&P 500 earnings yield jumped to 5.93% this week from last week’s 5.73%. Anything above 6% since gets interesting, and 7% was the S&P 500 earnings yield during Christmas week 2018.
These calendar year and quarterly bottom-up S&P 500 EPS estimates indicate that 2022-2024 full-year EPS estimates peaked this Spring ’22.
- 2024 peaked the first week of April at $276 and change and has declined to $263 today.
- 2023 peaked numerous times from late April ’22 to May ’22 at $251 and change and has been revised lower from there to $243.61 today.
- 2022 peaked between $229 and $230 in mid-June ’22 and has declined to its current print of $225.37.
- The Q3 ’22 bottom-up quarterly estimate has been revised lower by 5% to $56.23 today, from its peak near $59 as of late July ’22.
- The Q4 ’22 bottom-up quarterly estimate has been revised lower also by 5% from its peak near $61 per share to today’s $58.40.
The data is right above for you to look at, and at least so far anyway this isn’t that extreme.
However, one high profile earnings warning from an Apple (AAPL) or a Microsoft (MSFT) or any of the mega-cap 5 and it could get grim in a hurry.
Technology is worrisome:
The above table shows the “expected” full-year 2022 S&P EPS growth rates (YoY) by sector.
Highlighted in dark border is the Tech sector’s expected growth rate for 2022 since April 1 ’22.
Technology’s expected growth rate has been cut by 2/3rds since April 1 ’22, probably pretty consistent with the action in semiconductors, and Intel (INTC) in particular. Intel still has a pretty sizable market cap weighting in the S&P 500 (63rd if I counted right) but Nvidia (NVDA) is 11th even after their miss, with a 1.13% weight. Bespoke has long written that watch semis for a tell for technology and often for the market in general, and the news of late isn’t good.
The nice thing is – in terms of the Tech sector – was that their troubles started in Q4 ’21 with the ad spending slowdown. Q2 ’22 was a very tough quarter for comps for technology as a whole, but tech comps get easier as we get into year-end.
Summary/conclusion: Given the stock market action today, Friday, September 2nd, 2022, there is little reason to do anything in the stock market until we get some kind of technical improvement in the action.
The August ’22 jobs report was almost picture-perfect today with unemployment rising to 3.7%, the average hourly earnings coming in better-than-expected, the actual “new new jobs added” to the US economy was almost exactly inline with what was expected – around 300,000 – and we even saw a big negative revision to June’s numbers, which made the aggregate number look even lighter.
The stock market is clearly saying “we will wait to hear from Jay Powell” before we get too excited about expecting higher future stock market returns.
The CPI and PPI don’t come out until a week from next Monday, September 5th, 2002, and Tuesday, so there will be another 5 days to wait before the data confirms the numbers are actually “disinflating”. The market signals are indicating inflation is declining rapidly.
Here’s what’s worrisome: The stock and bond market action from January to May ’22 was all about higher inflation and waiting for it to break, since May-June and the mid-June ’22 lows, as market-based inflation data has fallen sharply, the Fed seems to have ever-so-slightly shifted its focus to labor and wages, and now today – albeit the average hourly earnings is just one data point – but if the labor and wage data softens and stocks still do not get a footing, the only conclusion is that the US economy is headed for a weaker recession than the pundits expect.
That’s my own calculus, so take it all with a hefty wheelbarrow of salt. Jay Powell changed his mind quickly in the last two weeks of 2018, and the stock market sniffed it out and rallied sharply after Christmas and all through 2019. But again, there wasn’t the inflation issue there is today.
There isn’t really one company that will report earnings next week that is of interest, but the next week, September 12th to 16th, investors will hear from both Oracle (ORCL) and Adobe (ADBE), two software companies and software hasn’t fared too well since 2021 ended.
Long weekends like memorial and Labor Day usually make for good writing. More to come (hopefully) over the weekend.
Remember all of this is one opinion, it can change quickly, it can be very wrong, so take it as such. Past performance is no guarantee of future results.
Thanks for reading.
Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.
This article was written by
Comments (15)
"Russia stopped delivering gas through the Nord Stream 1 pipeline (NS1) that supplies much of western Europe on Wednesday, claiming a two-day shutoff was necessary for maintenance work. On Friday, just hours before it was due to reopen, Russia's state-owned company Gazprom said repairs now require it to "suspend further operation." This would seem not to bode well for Europe and their energy needs over the months ahead, unless the Russians are just using this as leverage to get something else. But either way, this kind of action has got to ripple across the Atlantic to hit us, right?Suggest this topic for you for a future article. | NVDA |
https://finnhub.io/api/news?id=64fe37f84b14d160133f1eafb09840d659f461e13c7601611e27a8bd41aabe58 | This week's top movers: Bed Bath & Beyond, Lululemon, Nvidia, Snap | Yahoo Finance's Seana Smith discusses volatile stocks over the past week. | 2022-09-02T13:52:11 | Yahoo | This week's top movers: Bed Bath & Beyond, Lululemon, Nvidia, Snap
Yahoo Finance's Seana Smith discusses volatile stocks over the past week.
Video Transcript
SEANA SMITH: We are wrapping up a very busy week on Wall Street. Let's take a look at some of those individual movers that made some of the biggest moves. We got to start with Bed Bath Beyond first, because it was a huge move to the downside.
You can see this chart dropping right around Wednesday. Now this company-- the stock sold off after the company revealed its strategic update, including new financing plans, plans to close 150 stores, reducing the workforce by 20%. Also, the chief operating officer, chief stores officer roles, were cut here from the company.
The stock tanked 21% on Wednesday alone. That's the day that we got those details. Taking a look at a five-day chart here for the stock, the company ending the week in the red, off just around 19%. So stemming some of those earlier losses.
All right, next up is the Lululemon. Now shares jumped nearly 7% today, solid results from the retail company fueling today's gains. Two big numbers that stood out to us, same store sales growing 23% during the quarter, net sales of 1.87 billion, inventories though rising 85% to 1 and 1/2 a billion. Although, it looks like the street is able to brush that off for the week.
Let's take a look at what that means for Lululemon. Again, today, the stock closing up just around 7% for the week, barely in positive territory, up nearly 1%. Next up, let's talk about NVIDIA. Certainly a very tough week for NVIDIA. Shares selling off after the US government ordered the chip giant to halt sales of some of its chips to China.
It is a critical market for the company, and that band could cost NVIDIA as much as $400 million in potential sales during the current quarter. During that sell off here, the stock hitting a 52-week low earlier this week. One of the worst performers in the S&P for the week, again, as we close out the week closing at 136.47, so just off the lows that we hit yesterday.
All right, let's around it out. Here was Snap bringing its losses here. Actually, the stock popped though initially after it announced plans to lay off 20% of its workforce. Now, the company also saying that this restructuring helps it really focus on three priorities, community growth, revenue growth, and augmented reality. The stock popping yesterday over the last five days, closing up just around 5 and 1/2 today, off nearly 3 and 1/2, so giving back some of yesterday's gains. | NVDA |
https://finnhub.io/api/news?id=3cc94651bef8d45ae79f6375f4730f967b43392cd3698b1d485bfc6aae3c5c42 | Bull of the Day: Taiwan Semiconductor (TSM) | Premier sub-10 nanometer "fab" for Apple and NVIDIA chips is growing sales 37% and EPS 53% | 2022-09-02T13:40:08 | Yahoo | Bull of the Day: Taiwan Semiconductor (TSM)
Taiwan Semiconductor TSM is a central player in the manufacture of chips for companies like Apple, NVIDIA, and Marvell.
My colleague Derek Lewis profiled TSM last month and highlighted the company's stunning doubling of revenue in less than 3 years.
This year's topline will ramp a projected 37% to nearly $78 billion, while profits are expected to top $6.30 for 53% growth.
In 2021, Apple AAPL was the largest customer of the Taiwanese semiconductor foundry, aka TSMC, contributing a quarter of the company's revenues.
Why TSM Services Are In High Demand
TSM is known as a "fab" or "foundry" for chip making. They take the designs of major semiconductor companies and execute their precise -- and top-secret proprietary -- manufacturing parameters.
And this precision and protected privacy has accelerated to new levels in the past few years.
Or maybe I should say it has "shrunk" to new levels.
Because Moore's Law about chips doubling in power as they shrink in half every 18 months or so has been reaccelerated after leveling off in the past decade.
This means that chips have entered what I call The Nanosphere.
A nanometer is one-billionth of a meter. And chip micro-circuitry has gone under 10 nanometers in the past few years.
That's why smartphones can do more even as they shrink.
And why NVIDIA NVDA can cram 50 billion transistors into the space of a shoebox for their advanced GPU (graphics processiing unit) cards that stack together for artificial intelligence engines in the DGX system.
This year, Taiwan Semi is helping major chip designers go to 5 nanometers (nm) and even 3nms!
To illustrate the microscopic scale of going sub-10nm, imagine how big the coronavirus might be.
Fact: the coronavirus is around 50 nanometers!
And TSM is the premier foundry for going sub-10nm.
Their only real competition is Samsung.
What if NVDA Stumbles?
Since NVIDIA might be TSM's third or second biggest customer, investors might be concerned about this recent news...
NVDA shares plunged 6.6% in Wednesday’s extended trading session after it revealed that the U.S. government told it to stop exporting top artificial intelligence (AI) chips to China and Russia.
In a filing with the Securities and Exchange Commission, NVIDIA disclosed that the U.S. government informed it on Aug 26 about imposing a new licensing requirement, effective immediately, for its A100, A100X and forthcoming H100 integrated circuit sales in China and Russia.
The government has also banned NVIDIA from exporting DGX or any other systems that incorporate A100 or H100 integrated circuits.
The new licensing requirements will also be implied on any future chip designs developed by NVIDIA that have a threshold greater than or equivalent to A100. Additionally, any systems developed in the future incorporating the aforementioned types and thresholds will also fall under export restrictions.
With the new licensing requirements, the U.S. government intends to "address the risk that the covered products may be used in, or diverted to, a 'military end use' or 'military end user' in China and Russia," per NVDA in the SEC filing.
Export Restrictions to Hurt NVIDIA Sales
NVIDIA's A100 and H100 are its highest-performance chips used in data centers for AI, data analytics and computing applications. Though the company does not sell products to customers in Russia, the new licensing requirements are going to significantly hurt its data center chip sales in China.
The newly imposed restrictions are likely to impact the company’s ability to support the existing customers of A100 as well as complete the development of H100 timely. This could also require NVIDIA to transition some of its operations outside China.
The restrictions are expected to hamper NVIDIA’s business in China from where the company is expecting to generate $400 million in revenues from the sale of the aforementioned chips in the third quarter of fiscal 2023. The company warned that it may lose revenues if Chinese firms decide not to buy alternative NVIDIA products.
The latest restriction is a new blow to NVIDIA, which is already being hurt by the weakening demand for its chips used in gaming products. Last week, the company reported revenues of $6.7 billion for the second quarter of fiscal 2023, way lower than its May 2022 forecast of $8.10 billion (+/-2%), due to weaker sales across its Gaming and Data Center business segments.
NVIDIA's Gaming segment revenues plunged 33% year over year due to a lower sell-in of Gaming products, reflecting reduced channel partner sales due to macroeconomic headwinds. Although Data Center revenues jumped 61% year over year, the company stated that sales were below expectations due to ongoing supply-chain disruptions and lower sales to China’s hyperscale customers, who are affected by economic conditions.
Considering the current business environment, the company issued dim revenue guidance for the third quarter, wherein it expects to generate $5.9 billion (+/- 2%) in sales, approximately 17% lower than the year-ago quarter’s revenues. Looking at the latest U.S. government’s restriction on chip sales to China, the company is highly probable to report third-quarter revenues way lower than its August 2022 guidance.
Bottom line on TSM: Despite NVDA's downfall, with the SOX index down 35% since its highs and TSM down 43%, it seems the best value in chips right now trading near 13X EPS. Buy some TSM.
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https://finnhub.io/api/news?id=506d62456147f46cb2f673c893dfcea0ba99737a12b520b31fe9f6dd7a46552e | New Export Restrictions Threaten 7% Of Nvidia's Sales | Nvidia stock and AMD stock fell on Thursday after the U.S. government imposed new export restrictions on chips to China and Russia. | 2022-09-01T13:05:35 | Yahoo | New Export Restrictions Threaten 7% Of Nvidia's Sales
Nvidia stock and AMD stock fell on Thursday after the U.S. government imposed new export restrictions on chips to China and Russia.
Nvidia stock and AMD stock fell on Thursday after the U.S. government imposed new export restrictions on chips to China and Russia.
Mark Spitznagel and Nassim Taleb have been watching for black swans for decades. "We’ve never seen anything like this level of total debt and leverage in the system," he tells Fortune. "It's an experiment."
Warren Buffett is undeniably the most famous and influential investor in modern history, based on his extraordinary performance record. Not surprisingly, the investment portfolio of Berkshire Hathaway Inc. (BRK.A), the holding company employing the Oracle of Omaha as chairman and CEO, receives wide media attention and scrutiny, even though Buffett is no longer making every investment decision. Despite his unparalleled success, Buffett's investment model has long been transparent, straightforward, and consistent.
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The week ahead will feature a crucial inflation report and earnings out of Disney, UPS, and Alibaba as second quarter earnings season winds down.
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Dubbed the Oracle of Omaha, Warren Buffett is renowned for his simple and frugal lifestyle. Despite being the sixth richest person globally, with a net worth estimated at $117.9 billion, Buffett continues to live in the same modest home in Omaha that he purchased in 1958 for just $31,500. Adjusted for inflation, that amount today would be approximately $328,990.80, a mere 0.000279% of his total net worth. Buffett has consistently ranked the purchase of his home as the third-best investment he ha
As a pandemic-inspired boom ends, entrepreneurs and giant corporations alike are counting on customers to keep accumulating more stuff than they can squeeze into their homes. | NVDA |
https://finnhub.io/api/news?id=b89168f10c827a248c2005857fa01740820cceeb473bb6aa02a73f60edfb7610 | A Balanced Case For Nvidia: A Bullish Analyst Grows 'More Concerned' For The Chipmaker's Prospects | Nvidia Corp (NASDAQ: NVDA) elaborated on U.S.'s new license requirement for exports into China and Russia, acknowledged Needham analyst Rajvindra S. Gill. Future A100 (and eventual H100) exports are subject to license requirements. The company included $400 million in potential data center sales (mainly A100 related) in their 3Q23 guide subject to the new requirements. In Gill's view, the hardened government stance presents a significant headwind to the business. Gill lowered his Data Center rel | 2022-09-02T10:41:55 | Yahoo | A Balanced Case For Nvidia: A Bullish Analyst Grows 'More Concerned' For The Chipmaker's Prospects
Nvidia Corp (NASDAQ: NVDA) elaborated on U.S.'s new license requirement for exports into China and Russia, acknowledged Needham analyst Rajvindra S. Gill.
Future A100 (and eventual H100) exports are subject to license requirements.
The company included $400 million in potential data center sales (mainly A100 related) in their 3Q23 guide subject to the new requirements.
In Gill's view, the hardened government stance presents a significant headwind to the business.
Gill lowered his Data Center related estimates to account for this risk.
He reiterated a Buy on Nvidia. His price target moves from $185 to $170 on his reduced FY24 (CY23) non-GAAP EPS estimate of $4.61 (down from $5.00).
The analyst's Buy rating factored in attractive valuation, superior balance sheet, and artificial intelligence capability will be crucial during the COVID-19 outbreak, especially regarding medical research and genomics. Datacenter build-outs are robust as the cloud accelerates throughout the world.
Gill said the data center, the end-market that he views as NVDA's most significant growth engine, is experiencing a recovery as hyper-scale sales have ramped the past few quarters, and visibility has improved.
He expects the competitive dynamics in the data center market will exert pressure on the company's long-term positioning.
However, several industries will transition to AI-based systems faster. Moreover, Gaming sales are expected to rebound post-COVID-19, especially as the number of games with ray-tracing capabilities ramps.
Price Action: NVDA shares traded lower by 1.66% at $137.12 on the last check Friday.
Photo via Wikimedia Commons
Latest Ratings for NVDA
Date
Firm
Action
From
To
Mar 2022
Goldman Sachs
Reinstates
Neutral
Feb 2022
Summit Insights Group
Downgrades
Buy
Hold
Feb 2022
Mizuho
Maintains
Buy
View More Analyst Ratings for NVDA
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https://finnhub.io/api/news?id=d25f589a72914e636a4663300841d5b5a14b6c13ea1308d09491a95e10dce1ea | NVIDIA Corp. stock falls Friday, underperforms market | Shares of NVIDIA Corp. shed 2.08% to $136.47 Friday, on what proved to be an all-around dismal trading session for the stock market, with the S&P 500 Index... | 2022-09-02T10:12:00 | MarketWatch | Shares of NVIDIA Corp.
NVDA,
+0.37%
shed 2.08% to $136.47 Friday, on what proved to be an all-around dismal trading session for the stock market, with the S&P 500 Index
SPX,
-0.53%
falling 1.07% to 3,924.26 and Dow Jones Industrial Average
DJIA,
-0.43%
falling 1.07% to 31,318.44. This was the stock's sixth consecutive day of losses. NVIDIA Corp. closed $210.00 short of its 52-week high ($346.47), which the company achieved on November 22nd.
The stock underperformed when compared to some of its competitors Friday, as Microsoft Corp.
MSFT,
+0.34%
fell 1.67% to $256.06, Intel Corp.
INTC,
+1.14%
fell 1.70% to $31.22, and Texas Instruments Inc.
TXN,
-1.96%
fell 1.90% to $163.00. Trading volume (74.2 M) eclipsed its 50-day average volume of 53.6 M.
Editor's Note: This story was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones and FactSet. See our market data terms of use. | NVDA |
https://finnhub.io/api/news?id=b496a1b8090feddf989001dcb6d7196df669b5d2184ef9e21a8e2a46c94768a0 | Stock Market Skids, But Bounces Off Lows; Nvidia, Pinduoduo, BYD, Jobs In Focus: Weekly Review | The stock market suffered significant weekly losses again, but bounced off lows, helped by Friday's jobs report. Nvidia, BYD were big losers as Pinduoduo soared. | 2022-09-02T09:54:34 | Yahoo | Investopedia
Warren Buffett is undeniably the most famous and influential investor in modern history, based on his extraordinary performance record. Not surprisingly, the investment portfolio of Berkshire Hathaway Inc. (BRK.A), the holding company employing the Oracle of Omaha as chairman and CEO, receives wide media attention and scrutiny, even though Buffett is no longer making every investment decision. Despite his unparalleled success, Buffett's investment model has long been transparent, straightforward, and consistent. | NVDA |
https://finnhub.io/api/news?id=21996bf8e2965e7266d5dcdf01c3aca5bac8ae1dbb0c977eb91188288895b884 | The Outlook for Tech Stocks Darkens. There’s Rising Pressure on Profits. | Growing evidence of slumping demand for both software and hardware points to tougher times ahead. Says one CEO: “Our customers are in planning meetings,... | 2022-09-02T09:33:00 | MarketWatch | In early summer, I wrote a Tech Trader column previewing the June quarter earnings season, and advised investors to “brace for trouble.” Well, trouble finally has arrived. In bulk.
Admittedly, I was early. The Nasdaq Composite rallied 13% from the publication of that July 11 column through the market peak in mid-August. In that period, stocks benefited from softening interest rates and a widespread view that slashed September-quarter earnings estimates had positioned technology stocks for better performance.
But the summer rally is now just a memory, the gains have evaporated, and there are reasons to expect lower lows. I stand by my warning. And the situation has grown grimmer.
The most obvious change came with Federal Reserve Board Chairman Jerome Powell’s late July speech at the annual Fed economic conference in Jackson Hole. Heading into that eight-minute talk, the market had rallied on the misguided view that he would signal a softened stance on raising rates to fight inflation, given a recent reversal of fuel prices, rising retail inventories, and other signs of an improving picture on prices. But instead, he staked out a hawkish stance, declaring himself a determined inflation fighter, and warning that households and companies alike should brace for pain. Over the next few trading days tech stock prices declined, and interest rates ratcheted skyward, with the closely watched 10-year Treasury yield ratcheting up a quarter-point to 3.25%, the highest level since the market bottom in June.
Increasing interest rates spell trouble for stocks generally, and tech shares in particular. But that’s far from the only issue. I’m more concerned with the growing chorus of enterprise tech CEOs and CFOs warning about the outlook, slashing estimates and generally acknowledging that they aren’t going to escape the recession unscathed. OK, so maybe we’re not officially in a recession—declaring recessions is for some reason the job of the National Bureau of Economic Research, a private group of economists. But they’re being too slow.
Just ask C3.ai (ticker: AI) CEO Tom Siebel. A Silicon Valley legend best known for building Siebel Systems, once the leading player in customer-relationship management software, Siebel now runs a company focused on artificial intelligence software. This past week, C3.ai reported soft earnings for its July quarter, and provided guidance for the October quarter that came in well short of Street estimates. The day after, the stock fell 19%. Blame the economy.
“No question, we’re in a recession,” Siebel declares in an interview with Barron’s. “Our customers are in planning meetings, trying to figure out how they’ll operate in a recession. Did we see a slowdown in our business? Absolutely. And it accelerated in July.”
Siebel’s observation isn’t an outlier. Over the past few weeks, there have been a flurry of earnings reports from tech companies like C3.ai that have quarters ending in July, rather than June. And it appears the July quarter was worse than the June quarter.
The trend is not your friend.
Trouble is cropping up across the software sector. Okta (OKTA), which makes identity-management software, last week noted that it was “starting to notice some tightening of IT budgets and lengthening sales cycles relative to last quarter.” Veeva Systems (VEEV), which makes cloud-based software for life sciences companies, cut guidance, citing changes in the macroeconomic environment. Samsara (IOT), an internet-of-things play that sells software for tracking transportation fleets, posted strong earnings, but nevertheless reported “elongated sales cycles,” with higher levels of required deal approval to close transactions.
There are similar problems in hardware. It’s no secret that PC demand is sagging. In recent weeks Micron Technology (MU), Western Digital (WDC), Intel (INTC) and Nvidia (NVDA) have warned about softening PC demand. Right on cue, Dell (DELL) reported punk results two weeks ago, and there was vivid confirmation of the trend this past week from HP Inc. (HPQ).
In its July quarter, HP’s PC unit sales fell 25%, year over year, with a whopping 32% drop in notebook purchases. Why? HP CEO Enrique Lores says that commercial customers took a “more cautious, more measured approach.”
Alas, it isn’t just PCs. Dell CFO Tom Sweet a week earlier told Barron’s that his company is seeing buyers getting more cautious on enterprise hardware, in particular data-center servers and cloud-computing gear. This past week, disk-drive maker Seagate Technology (STX) said that since mid-July it has been seeing “weaker economic trends in certain Asian regions,” and “more cautious buying” by large companies, including “certain U.S. cloud customers.”
That’s alarming. Cloud computing has been one of the strongest parts of the tech sector, and just two weeks ago Snowflake (SNOW) surprised the Street with better-than-expected Julyquarter results. That followed strong growth in the June quarter from all three of the leading cloud players: Amazon Web Services, Microsoft Azure, and Google Cloud.
The warning signs are growing. MongoDB (MDB), a cloud-based database software provider, sees demand from some customers falling, as their own businesses slow. That indicates that AWS, Azure, and Google Cloud could post disappointing results for the September quarter or soon after. And the market wouldn’t like that.
So, we’re in a new phase of the valuation reset that started in November 2021. In the first phase, rising rates triggered lower valuation multiples. In this second leg, the issue will be crumbling earnings. Look out below.
Write to Eric J. Savitz at [email protected] | NVDA |
https://finnhub.io/api/news?id=904b00f2af576c39213023cc26f7205df0e9133c20fb9569494b64274c08c82d | Nvidia: U.S. government to allow chip ‘development’ despite export ban, analyst says | KeyBanc Capital Markets Equity Research Analyst John Vinh joins Yahoo Finance Live to discuss Broadcom earnings, chip stocks, supply chain issues, U.S. government banning the export of chips to China, and the outlook for the space. | 2022-09-02T09:08:26 | Yahoo | Nvidia: U.S. government to allow chip ‘development’ despite export ban, analyst says
KeyBanc Capital Markets Equity Research Analyst John Vinh joins Yahoo Finance Live to discuss Broadcom earnings, chip stocks, supply chain issues, U.S. government banning the export of chips to China, and the outlook for the space.
Video Transcript
AKIKO FUJITA: Well, same with tech. Broadcom shares firmly higher after the chipmaker said it sees revenue this quarter coming in ahead of expectations at $8.9 billion. The forecast will help dispel fears that business internet spending is set for a sharp slowdown.
Third quarter EPS also beating the street, with CEO Hock Tan citing solid demand across enterprise and cloud. For more on this, let's bring in John Vinh. He is KeyBanc Capital Markets equity research analyst. John, good to talk to you today. A solid pop on the stock here, up more than 4%. What stood out to you in the numbers?
JOHN VINH: Yeah, thanks for having me. I think they put up really solid results. They had strong numbers across the board, across all of their segments, Enterprise Cloud, and broadband access. You know, I think in the near-term, they're seeing great near-term demand. They've got great visibility with their lead time standing at 50 weeks. But the one thing I would say is that they are starting to acknowledge that their visibility going into the second part of 2023 is starting to get a little bit more murky at this point.
BRIAN CHEUNG: Hey, John, Brian Cheung here. I mean, the broad story for the chip space is that it's really all about their ability to enforce-- or increase the supply to meet the massive demand. So when you see the guidance coming out from Broadcom, I mean, what does that tell you about whether or not they're seeing any sort of alleviation in the supply chain pressures, or is that still continuing this deep into 2022?
JOHN VINH: Yeah, I think they're clearly starting to make some progress in terms of increasing their supply. Their lead times have not really eased, but I think you will start to see their lead times ease over the next couple of quarters, which is typically an indication that supply is starting to get better. But I think the broader issue that you're seeing with the supply chain is that there's kitting issues and mismatches and lead times. And potentially, we'll likely get to supply-demand balance probably sometime next year.
AKIKO FUJITA: John, we got a big selloff in Nvidia yesterday on the back of those reports that they had been advised by the Commerce Department to essentially limit selling specific AI chips to China. Investors trying to parse through what the implications are not just for NVIDIA, but other semiconductors as well, including AMD. What's your read?
JOHN VINH: Yes, I think the impact right now is primarily isolated to Nvidia. They make GPU chips that are widely used by the industry for machine learning and AI training. The implications here is the US wants to limit China's ability to develop kind of military applications with it. There are some broader implications, I would say, generally all pretty negative. I would say, one, this is only going to push China to more regionalize their vertical semiconductor supply chain, which is going to be inefficient for the broader industry.
It's also going to limit demand for some of the other chipmakers that supply into that data center server supply chain. In terms of impacting AMD, I think it's actually pretty minimal. For AMD, their GPU data center is roughly about 1% of revenues. They're not widely-- as widely adopted as NVIDIA for machine learning and AI at this point in time. But the impact right now is really focused around NVIDIA.
BRIAN CHEUNG: John, as a follow-up to that, there was another 8-K that Nvidia filed yesterday, where they said that the government has actually authorized exports, re-exports, and in-country transfers needed to continue development of the H100 circuits that they're making. It hadn't seen a massive reversal in the stock selloff that we saw yesterday. Just wondering how you're reading that clarification there. What does that tell you about whether or not we'll see the full impact of that $400 million they were warning about as an impact to their potential sales to China the day before that?
JOHN VINH: Yeah, that additionally doesn't really impact the overall restrictions that are placed by this licensing agreement. All that is indicating is that the US government is going to allow them to continue development of this next generation H100 chip that is coming out at the end of the year. It still is not going to allow them to export those chips to Chinese entities at this point in time.
AKIKO FUJITA: Finally, John, there's a lot of noise in this space. On the one hand, we've got the earnings reports that seem to point to some companies being better positioned. We've seen, heard the reports of those slowdowns, especially in PC sales. And then you've got all the geopolitical headwinds that continue to surround the sector. When you look at all of that, who do you think is best positioned? Where do you think investors should be putting their money right now?
JOHN VINH: We like companies that have de-risked their guidance. I think the wall of worry right now is that a lot of these companies are not seeing some of these headwinds. And that's potentially going to be the next shoe to drop. We like Nvidia here. Obviously, there's a little bit of uncertainty in terms of what's going on with the China restrictions right now, but they really have de-risked their forward estimates related to kind of the consumer gaming risk.
We also like onsemi, who is extremely well positioned with kind of the EV, electrical vehicle, trends. They've really starting to ramp up their silicon carbide revenue pipeline, which is expected to exceed a billion dollars next year. And I also like Qualcomm, even though they're tied to the consumer right now. They've taken down their risk on smartphones and handsets in the second half of the year. And next year, we're expecting outsize share gains at customers such as Samsung.
BRIAN CHEUNG: All right, John Vinh, KeyBanc Capital Markets equity research analyst, thanks so much. Really appreciate the time. | NVDA |
https://finnhub.io/api/news?id=baba44e73bb8742201e62c2da128a9986ecaf003d80b2cf494f999f5134b00f9 | Should Semiconductor Investors Be Worried About This Risk? | Today's video focuses on Nvidia (NASDAQ: NVDA), ASML Holding (NASDAQ: ASML), Cadence Design Systems (NASDAQ: CDNS), and how they have all been affected one way or another by various government regulations. | 2022-09-02T07:30:00 | Yahoo | Investopedia
Warren Buffett is undeniably the most famous and influential investor in modern history, based on his extraordinary performance record. Not surprisingly, the investment portfolio of Berkshire Hathaway Inc. (BRK.A), the holding company employing the Oracle of Omaha as chairman and CEO, receives wide media attention and scrutiny, even though Buffett is no longer making every investment decision. Despite his unparalleled success, Buffett's investment model has long been transparent, straightforward, and consistent. | NVDA |
https://finnhub.io/api/news?id=5dceb6db0fd1edade9d8956a3805d5441d9a93085271fdaab021492c1d41c1cc | Nvidia stock downgraded to Neutral by Daiwa Capital Markets | Yahoo Finance Live anchors discuss Daiwa Capital Markets downgrading Nvidia stock to Neutral and how the stock has fared this year. | 2022-09-02T07:29:14 | Yahoo | Nvidia stock downgraded to Neutral by Daiwa Capital Markets
Yahoo Finance Live anchors discuss Daiwa Capital Markets downgrading Nvidia stock to Neutral and how the stock has fared this year.
Video Transcript
BRAD SMITH: Switching gears here, Nvidia hit with a downgrade from Daiwa Capital Markets, rating shares of the chip maker from outperform to neutral. Now, analyst Louis Massiara or Louis Masiocha says that citing recent government restrictions and weakening economy is setting up NVIDIA for plenty of future headwinds here.
I was looking through some of what they were looking at with the valuation specifically. They said a price to earnings ratio of 42 times their fiscal year 2023 earnings is just too high. They're actually using their new fiscal year 2025 or calendar year 2024 earnings per share estimate of $5.10 and a 26 times price to earnings ratio to set a new target price of $133 here for the stock.
BRIAN SOZZI: That is a material cut-- [CLEARS THROAT] excuse me-- in terms of valuation for NVIDIA. And the stock, I've seen it trade 60 to 70 times forward earnings. But it is warranted. Look what we have heard from NVIDIA over the past month. Remember, we were sitting here when they came out, and they warned.
And then they came out reported earnings last week. And it was a dismal quarter, dismal outlook. But despite all that, they have a lot of strong supporters on Wall Street. Most analysts on the Street rate this stock a buy because they are leading in so many areas in the chip market.
And look, it's going to be a company like this that gets re-embraced by the market when the market gets a little more comfortable with what the Fed is going to do moving forward.
BRAD SMITH: Yeah, absolutely. We've been continuing to keep an eye on shares of NVIDIA. As I mentioned, volume for this one was one of the only ones in the mega-cap tech stocks that was actually up during the month of August. And why? Because it was so dismal. There were so many warnings that were taking place, the warning and then the actual earnings that dropped as well.
BRIAN SOZZI: Bad news equals page views. That's what I was taught. | NVDA |
https://finnhub.io/api/news?id=2f02bb3cee799ab1f06bd5a37e54a0b63126ce838af93b9eef9b5ee2104fae7a | Why Nvidia Stock Is Plunging This Week | A new licensing requirement from the U.S. government could impact Nvidia's revenue by up to $400 million in the current quarter. | 2022-09-02T06:50:32 | Yahoo | Why Nvidia Stock Is Plunging This Week
A new licensing requirement from the U.S. government could impact Nvidia's revenue by up to $400 million in the current quarter.
A new licensing requirement from the U.S. government could impact Nvidia's revenue by up to $400 million in the current quarter.
Mark Spitznagel and Nassim Taleb have been watching for black swans for decades. "We’ve never seen anything like this level of total debt and leverage in the system," he tells Fortune. "It's an experiment."
Warren Buffett is undeniably the most famous and influential investor in modern history, based on his extraordinary performance record. Not surprisingly, the investment portfolio of Berkshire Hathaway Inc. (BRK.A), the holding company employing the Oracle of Omaha as chairman and CEO, receives wide media attention and scrutiny, even though Buffett is no longer making every investment decision. Despite his unparalleled success, Buffett's investment model has long been transparent, straightforward, and consistent.
Stocks have blown past expectations for 2023 – but some analysts are bracing for a sell-off as the market approaches record highs.
The JPMorgan Equity Premium Income ETF’s (NYSEARCA:JEPI) combination of high yield and monthly payments has quickly made it one of the market’s most popular ETFs. Investors who like JEPI’s style now have another high-yield competitor to consider — the NEOS S&P 500 High Income ETF (BATS:SPYI), which also pays on a monthly basis and yields 10.7%. Let’s take a closer look at this intriguing new option for high-yield investors. What is SPYI ETF’s Strategy? Launched in August of 2022, SPYI is still a
Just because you retire doesn't mean you have to stop working. And when work is an option rather than a requirement, it's possible to select a low-stress job that multiplies fulfillment without adding anxiety - but still provides a bit … Continue reading → The post 12 Low-Stress Jobs You Can Do in Retirement appeared first on SmartAsset Blog.
Berkshire Hathaway historically reports its quarterly financial results on weekends, and CEO Warren Buffet has a simple reason why. Berkshire (ticker: BRK.A, BRK.B) reported second-quarter earnings Saturday morning. Many other public companies, however, release their earnings results during the trading week, either before the market opens or after the closing bell.
The market rally is at an infection point after notable losses. Here's what to do. Warren Buffett's Berkshire earnings rose.
Is there a point at which I should stop reinvesting stock dividends and invest the money or save the cash? -Anonymous Many financial experts recommend that you reinvest dividends most of the time – and I'm inclined to agree. The … Continue reading → The post Ask an Advisor: Should I Stop Reinvesting Dividends? appeared first on SmartAsset Blog.
There are many different approaches and strategies for retirement investing that might appeal to you. But how do you tell if a certain strategy works for your situation? When evaluating different approaches, consider how each strategy is put together and … Continue reading → The post Here's How Much to Keep in Stocks, Bonds and Cash in Retirement appeared first on SmartAsset Blog.
The week ahead will feature a crucial inflation report and earnings out of Disney, UPS, and Alibaba as second quarter earnings season winds down.
(Bloomberg) -- Dan Loeb is hardly the first Wall Street titan to lament how meme stock traders have made short selling a perilous endeavor. But that Loeb, who runs the hedge fund Third Point LLC, did so now is what’s interesting.Most Read from BloombergTexas Power Prices to Surge 800% on Sunday Amid Searing HeatNetanyahu Seeks to Change How Judges Are Named, Then Stop RevampChina Embassy Rips ‘Brutal’ Russia Border Incident in Rare MoveThe Most Dangerous Job for Lawyers Is Being on Trump’s Legal
AustralianSuper, one of the world’s largest pensions, halved its Apple stock investment and sold Microsoft stock, while buying shares of Tesla and Nvidia.
One in 6 asset and wealth management companies will be bought or shut down in the next five years, according to a PwC survey of asset managers and institutional investors.
Warren Buffett's Berkshire Hathaway operating profit rose by 10%. BRKB stock is just out of buy range.
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Retirement account withdrawals not only help you cover basic living expenses, but they also can fund the lifestyle you've always envisioned in your golden years. That money, however, can have unintended tax consequences. Required minimum distributions (RMDs) and other withdrawals … Continue reading → The post Social Security Taxes Can Hit You Hard in Retirement. Here's How to Lower Them appeared first on SmartAsset Blog.
Dubbed the Oracle of Omaha, Warren Buffett is renowned for his simple and frugal lifestyle. Despite being the sixth richest person globally, with a net worth estimated at $117.9 billion, Buffett continues to live in the same modest home in Omaha that he purchased in 1958 for just $31,500. Adjusted for inflation, that amount today would be approximately $328,990.80, a mere 0.000279% of his total net worth. Buffett has consistently ranked the purchase of his home as the third-best investment he ha
As a pandemic-inspired boom ends, entrepreneurs and giant corporations alike are counting on customers to keep accumulating more stuff than they can squeeze into their homes. | NVDA |
https://finnhub.io/api/news?id=ac016fac2e34d4626953671218389c160cb9fc4610279872d60f2ee6ca6ea9c8 | 2 High-Conviction Growth Stocks That Billionaires Are Buying Hand Over Fist | The Nasdaq Composite entered a bear market in mid-March, and the losses accelerated in the second quarter as investors reacted to worsening inflation. In the second quarter, Overdeck increased his stake in Nvidia (NASDAQ: NVDA) more than fivefold, making it his sixth-largest position. Here's why investors can buy both growth stocks with confidence today. | 2022-09-02T05:58:00 | Yahoo | 2 High-Conviction Growth Stocks That Billionaires Are Buying Hand Over Fist
The Nasdaq Composite entered a bear market in mid-March, and the losses accelerated in the second quarter as investors reacted to worsening inflation. In the second quarter, Overdeck increased his stake in Nvidia (NASDAQ: NVDA) more than fivefold, making it his sixth-largest position. Here's why investors can buy both growth stocks with confidence today. | NVDA |
https://finnhub.io/api/news?id=f357d3701d395f34876ec5e5b95dde9808e8e12bad9954353ca785368448e225 | Weekend reads: Investors get a wakeup call | Also, a guide to the Fed's eventual policy pivot, the housing slowdown and good advice for air travelers. | 2022-09-02T05:55:00 | MarketWatch | U.S. investors have soured on stocks again.
The S&P 500 Index had fallen 23% through June 17 this year and then had reversed course to rise 17% through Aug. 16. Since then, the benchmark has fallen 8% as investors worry about rising interest rates and a possible recession down the line.
Jeremy Grantham, co-founder of GMO of Boston, warned that the stock market was still in a “superbubble” and that the recent rally had lulled investors into a false sense of security.
Meanwhile, Steve Hanke, a professor of applied economics at Johns Hopkins University, predicted a “whopper” of a recession in 2023, even with inflation remaining high.
Another warning: This corner of the credit market could be first to implode as interest rates rise
Prepare for the Fed’s pivot — eventually
Markets always look ahead. We are at an early point in the Federal Reserve’s cycle of increasing interest rates to reduce price inflation. But eventually the tide will turn, the pace of interest rates will slow before they eventually decline again and help feed a rise in asset prices.
Based on his analysis of the stock market during several previous interest-rate cycles, Mark Hulbert concludes that “there are hefty gains to be had if you get it even partially right.”
Here’s Hulbert’s approach to taking best advantage of the Fed’s eventual policy reversal.
The housing slowdown — good news and bad
The doubling of mortgage rates has driven some potential home buyers out of the market. Then again, houses are staying on the market longer now, and prices are beginning to fall. There is softening of demand, making it easier to shop for a new home.
More housing coverage from Aarthi Swaminathan:
- I hate living in New York City — I have a $450,000 condo unit. Should I sell it now — or should I rent it out and move to New Jersey?
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How to avoid air-travel delays
Charles Passy interviews Samantha Brown, who provides advice on how to avoid air-travel delays and steps you can take to be rebooked quickly if your flight is canceled.
Stock picks for these trying times
No matter what is going on in the world of finance day-to-day, stocks have proven to be excellent compounders of value over long periods. During a period of high inflation and rising interest rates, an emphasis on financial strength and competitive staying power might work best.
Michael Brush interviews Justin White, who manages the T. Rowe Price All-Cap Opportunities Fund and shares his approach for picking quality stocks.
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- These 2 dividend-stock funds use different strategies that work well in tough market times
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Alessandra Malito writes the Help Me Retire column. This week she helps a 62-year-old man who has saved up some money but worries that it may be too late for him to invest and build up a retirement nest egg.
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Morey Stettner explains why you aren’t too young to have a will, and what to do if your estate plan gets complicated.
The down cycle for chip makers
This has been a difficult year for semiconductor stocks, as you can see on the two-year chart above, which shows total returns for Nvidia Corp.
NVDA,
Nvidia hit a new 52-week low on Thursday.
Chip makers have always been cyclical. Citigroup analyst Christopher Danley warned this week that semiconductor stocks could drop another 25%.
But Broadcom Inc. CEO Hock Tan defended his company’s rosy outlook after analysts pushed back.
The overlooked risks of self-driving technology
There are all sorts of driver-assistance features in modern cars, although the names for these features, such as Tesla’s
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Hear from Ray Dalio at MarketWatch’s Best New Ideas in Money Festival on Sept. 21 and Sept. 22 in New York. The hedge-fund pioneer has strong views on where the economy is headed.
Want more from MarketWatch? Sign up for this and other newsletters, and get the latest news, personal finance and investing advice. | NVDA |
https://finnhub.io/api/news?id=5c77704dd3b3b71990591d306587a406a494ce8652bb241d911fef1e651b4384 | Taiwan Semiconductor and Cars.com have been highlighted as Zacks Bull and Bear of the Day | Taiwan Semiconductor and Cars.com are part of Zacks Bull and Bear of the Day article. | 2022-09-02T05:38:12 | Yahoo | Taiwan Semiconductor and Cars.com have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – September 2, 2022 – Zacks Equity Research shares Taiwan Semiconductor TSM as the Bull of the Day and Cars.com CARS asthe Bear of the Day. In addition, Zacks Equity Research provides analysis on BCB Bancorp BCBP, Sonoco SON and Otter Tail OTTR.
Here is a synopsis of all five stocks:
Bull of the Day:
Taiwan Semiconductor is a central player in the manufacture of chips for companies like Apple, NVIDIA, and Marvell.
My colleague Derek Lewis profiled TSM last month and highlighted the company's stunning doubling of revenue in less than 3 years.
This year's topline will ramp a projected 37% to nearly $78 billion, while profits are expected to top $6.30 for 53% growth.
In 2021, Apple was the largest customer of the Taiwanese semiconductor foundry, aka TSMC, contributing a quarter of the company's revenues.
Why TSM Services Are in High Demand
TSM is known as a "fab" or "foundry" for chip making. They take the designs of major semiconductor companies and execute their precise -- and top-secret proprietary -- manufacturing parameters.
And this precision and protected privacy has accelerated to new levels in the past few years.
Or maybe I should say it has "shrunk" to new levels.
Because Moore's Law about chips doubling in power as they shrink in half every 18 months or so has been reaccelerated after leveling off in the past decade.
This means that chips have entered what I call The Nanosphere.
A nanometer is one-billionth of a meter. And chip micro-circuitry has gone under 10 nanometers in the past few years.
That's why smartphones can do more even as they shrink.
And why NVIDIA can cram 50 billion transistors into the space of a shoebox for their advanced GPU (graphics processiing unit) cards that stack together for artificial intelligence engines in the DGX system.
This year, Taiwan Semi is helping major chip designers go to 5 nanometers (nm) and even 3nms!
To illustrate the microscopic scale of going sub-10nm, imagine how big the coronavirus might be.
Fact: the coronavirus is around 50 nanometers!
And TSM is the premier foundry for going sub-10nm.
Their only real competition is Samsung.
What if NVDA Stumbles?
Since NVIDIA might be TSM's third or second biggest customer, investors might be concerned about this recent news...
NVDA shares plunged 6.6% in Wednesday's extended trading session after it revealed that the U.S. government told it to stop exporting top artificial intelligence (AI) chips to China and Russia.
In a filing with the Securities and Exchange Commission, NVIDIA disclosed that the U.S. government informed it on Aug 26 about imposing a new licensing requirement, effective immediately, for its A100, A100X and forthcoming H100 integrated circuit sales in China and Russia.
The government has also banned NVIDIA from exporting DGX or any other systems that incorporate A100 or H100 integrated circuits.
The new licensing requirements will also be implied on any future chip designs developed by NVIDIA that have a threshold greater than or equivalent to A100. Additionally, any systems developed in the future incorporating the aforementioned types and thresholds will also fall under export restrictions.
With the new licensing requirements, the U.S. government intends to "address the risk that the covered products may be used in, or diverted to, a 'military end use' or 'military end user' in China and Russia," per NVDA in the SEC filing.
Export Restrictions to Hurt NVIDIA Sales
NVIDIA's A100 and H100 are its highest-performance chips used in data centers for AI, data analytics and computing applications. Though the company does not sell products to customers in Russia, the new licensing requirements are going to significantly hurt its data center chip sales in China.
The newly imposed restrictions are likely to impact the company's ability to support the existing customers of A100 as well as complete the development of H100 timely. This could also require NVIDIA to transition some of its operations outside China.
The restrictions are expected to hamper NVIDIA's business in China from where the company is expecting to generate $400 million in revenues from the sale of the aforementioned chips in the third quarter of fiscal 2023. The company warned that it may lose revenues if Chinese firms decide not to buy alternative NVIDIA products.
The latest restriction is a new blow to NVIDIA, which is already being hurt by the weakening demand for its chips used in gaming products. Last week, the company reported revenues of $6.7 billion for the second quarter of fiscal 2023, way lower than its May 2022 forecast of $8.10 billion (+/-2%), due to weaker sales across its Gaming and Data Center business segments.
NVIDIA's Gaming segment revenues plunged 33% year over year due to a lower sell-in of Gaming products, reflecting reduced channel partner sales due to macroeconomic headwinds. Although Data Center revenues jumped 61% year over year, the company stated that sales were below expectations due to ongoing supply-chain disruptions and lower sales to China's hyperscale customers, who are affected by economic conditions.
Considering the current business environment, the company issued dim revenue guidance for the third quarter, wherein it expects to generate $5.9 billion (+/- 2%) in sales, approximately 17% lower than the year-ago quarter's revenues. Looking at the latest U.S. government's restriction on chip sales to China, the company is highly probable to report third-quarter revenues way lower than its August 2022 guidance.
Bottom line on TSM: Despite NVDA's downfall, with the SOX index down 35% since its highs and TSM down 43%, it seems the best value in chips right now trading near 13X EPS. Buy some TSM.
Bear of the Day:
Cars.com may be a casualty of inflation as auto prices surge above MSRP by 10% in many areas of the country.
The small-cap operator of an online automotive platform offers new and used vehicle listings, expert and consumer reviews, and research tools to millions of consumers each month.
The company also engages in the sale of display advertising to national advertisers.
Cars.com Inc. is based in Chicago.
CARS delivered quarterly earnings of $0.08 per share, beating the Zacks Consensus Estimate of $0.05 per share. This compares to earnings of $0.08 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 60%. A quarter ago, it was expected that this online automotive marketplace would post earnings of $0.03 per share when it actually produced earnings of $0.06, delivering a surprise of 100%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Cars.com, which belongs to the Zacks Internet - Commerce industry, posted revenues of $162.87 million for the quarter ended June 2022, surpassing the Zacks Consensus Estimate by 0.61%. This compares to year-ago revenues of $155.53 million. The company has topped consensus revenue estimates four times over the last four quarters.
The reason that CARS is in the cellar of the Zacks Rank is that analysts continue to lower EPS estimates.
This may be a function of consumers retracting from high prices for autos and doing more competitive shopping.
With over $650 million in sales projected this year, CARS seems like a diamond in the junk yard.
But let's wait before grabbing the keys until the estimates stop going down and start going back up.
The Zacks Rank will let you know.
Additional content:
3 Top Ultra-Safe Stocks to Buy for a Notorious September
Fed Chair Jerome Powell's plans to keep increasing interest rates did little to boost investors' sentiment, with stocks closing broadly lower in August. To make matters worse, the stock market is now bracing for a historically unpleasant September.
However, investors shouldn't shun equities completely. Instead, they should look out for low-risk stocks that can generate better returns in the near future. Notable among them are BCB Bancorp, Sonoco and Otter Tail.
Summer Market Bounce Back in Doubt
U.S. stocks did witness the sharpest first-half decline in more than 50 years. However, the major indexes started to gain momentum in July and picked up steam during the first half of August. This is because market pundits were expecting a limited increase in interest rates as inflation began to show signs of easing.
Regrettably, Powell's recent hawkish speech sparked a fresh sell-off in stocks. In his Jackson Hole speech, Powell reaffirmed that the central bank remains committed to taming inflation, and will continue to hike interest rates despite concerns about a looming recession. In reality, a rate hike doesn't bode well for the stock market as it raises borrowing costs, curtails consumer spending, and impacts economic growth.
Undoubtedly, stocks extended their losing streak for the fourth-straight trading session on Aug 31, following Fed Chair's speech. In fact, for the month of August, the Dow, the S&P 500, and the Nasdaq posted a drop of 3.9%, 4.2%, and 4.6%, respectively, according to Dow Jones Market Data, citing a MarketWatch article.
September – An Ugly Month for Stocks
With the stock market ending August in the red, it is now headed for the historically worst month of the year. Typically, the three major indexes have given the poorest performance in September. To put things into perspective, the S&P 500 declined an average 1% in September from 1928 to 2021. Likewise, when the S&P 500 declined from the beginning of the year through the end of August, as it is this year, the broader index registered an average drop of 3.4% in September, per analysts at Bespoke Investment Group, quoting another MarketWatch article.
So, why is September a weak month for the stock market? It is mostly presumed that investors after returning from their summer vacations want to lock in gains by selling some of their stock holdings for the year in September. At the same time, it is believed that investors sell their stock holdings in order to pay for back-to-school items.
How to Play the Stock Market
With the stock market now historically entering its worst phase of the year after witnessing a pullback in August, it is prudent for investors to place bets on stocks that provide risk-adjusted returns. Thus, it's imperative to invest in low-beta stocks. These stocks are comparatively less volatile than the markets they trade in. Low beta, by the way, ranges from 0 to 1.
To top it off, these stocks are high dividend payers. Thus, they not only provide a steady flow of income but also are immune to market vagaries due to their healthy financial structure and, of course, a better-quality business. Further, they flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 stocks here.
BCB Bancorp operates as the holding company for BCB Community Bank, a state-chartered commercial bank. BCBP has a beta of 0.58. It has a dividend yield of 3.5%. Over the past 5 years, BCBP has increased its dividend once, and its payout ratio presently sits at 29% of earnings. Check BCB Bancorp's dividend history here.
The Zacks Consensus Estimate for its current-year earnings has moved 15.1% north over the past 60 days. BCBP's shares have gained 17.6% year to date. It's expected earnings growth rate for the current year is 34.9%.
Sonoco is a leading provider of consumer packaging, industrial products, protective packaging, and packaging supply-chain services. SON has a beta of 0.73. It has a dividend yield of 3.1%. Over the past 5 years, SON has increased its dividend four times, and its payout ratio presently sits at 36% of earnings. Check Sonoco's dividend history here.
The Zacks Consensus Estimate for its current-year earnings has moved 13.2% north over the past 60 days. Sonoco's shares have gained 10.8% so far this year. It's expected earnings growth rate for the current year is 78.3%.
Otter Tail is involved in the production, transmission, distribution and sale of electric energy. OTTR has a beta of 0.46. It has a dividend yield of 2.2%. Over the past 5 years, OTTR has increased its dividend five times, and its payout ratio presently sits at 26% of earnings. Check Otter Tail's dividend history here.
The Zacks Consensus Estimate for its current-year earnings has moved 31.8% north over the past 60 days. Otter Tail's shares have gained 6% year to date. It's expected earnings growth rate for the current year is 67.4%.
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https://finnhub.io/api/news?id=d202781cec4a77c4fc7f2c48973a5a168ce9a9765c840394730660db0a58aa32 | Cathie Wood Just Doubled Down on Nvidia (NVDA) Stock | Cathie Wood sold roughly $32 million worth of Tesla to buy Nvidia shares on Thursday. What does this mean for NVDA stock? | 2022-09-02T05:11:00 | InvestorPlace | As Nvidia (NASDAQ:NVDA) stock sank on Thursday, Ark Invest’s Cathie Wood took it upon herself to bolster her holdings of the chip maker — at the expense of one electric vehicle (EV) behemoth. Wood sold more than 115,000 shares of Tesla (NASDAQ:TSLA) on Thursday to buy an additional 226,000 shares of NVDA stock, worth almost $32 million.
This news may come as a surprise to investors, given the recent developments related to U.S. chip exports. So, what’s going on with Wood and Nvidia lately?
On Thursday, Nvidia announced in a filing that the U.S. government had levied a new licensing requirement “covering any exports of Nvidia’s A100 and upcoming H100 products to China, including Hong Kong, and Russia.”
This news comes as an immediate bearish signal to semiconductor stocks like Advanced Micro Devices (NASDAQ:AMD) and Nvidia, both of which maintain large trade operations with China. AMD and NVDA stock each dropped more than 5% yesterday as investors digested the discouraging trade news.
Nvidia quickly responded to the requirement news, attempting to ease concerns by offering potential workarounds. An unnamed Nvidia spokesperson informed Barron’s of the following in an email:
“We are working with our customers in China to satisfy their planned or future purchases with alternative products and may seek licenses where replacements aren’t sufficient. The only current products that the new licensing requirement applies to are A100, H100 and systems such as DGX that include them.”
It seems one investors sell sign is Wood’s buy sign, however.
NVDA Stock Makes Up Lost Ground on ARKK Investment
Cathie Wood took no time to jump on this discounted semiconductor company. Specifically, Wood bought up about 0.4% of her total fund weight with Thursday’s NVDA stock purchase. The investment was made under the flagship fund of Wood’s many exchange-traded funds (ETFs), the Ark Innovation ETF (NYSEARCA:ARKK)
Nvidia is now Wood’s 24th largest holding in the fund, with a market capitalization worth $347 billion. Despite this, Nvidia has been one of the year’s biggest losers coming off of 2021’s historic run-up.
Supply constraints paired with cooling demand for computers and graphics cards have left NVDA stock down more than 50% so far this year. For context, the S&P 500 is down only 16% year-to-date (YTD).
Last week’s tumultuous earnings call certainly didn’t help the company’s standing with investors. Nvidia reported a significant slowdown in sales and offered future guidance substantially below estimates.
Nvidia seems to continue taking hits straight to the chin. Whether the company can regain lost ground before year-end remains to be seen.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. | NVDA |
https://finnhub.io/api/news?id=a3a23fdd431a9d4158d14dc327ee2878dc9a90e0694185759ae175923f0044a1 | US Offers Relaxations To Nvidia For AI Chip Development In China | Nvidia Corp (NASDAQ: NVDA) informed that the U.S. government would allow it to continue developing its H100 artificial intelligence chip in China. The U.S. granted permission to Nvidia to perform exports needed to support U.S. customers of A100 through March 1, 2023. Additionally, it permitted A100 and H100 order fulfillment and logistics through Nvidia’s Hong Kong facility through September 1, 2023. Also Read: China Voices Displeasure Over US Chips Act; Warns Against Aggressive Standoff Earlier | 2022-09-02T04:44:27 | Yahoo | US Offers Relaxations To Nvidia For AI Chip Development In China
Nvidia Corp (NASDAQ: NVDA) informed that the U.S. government would allow it to continue developing its H100 artificial intelligence chip in China.
The U.S. granted permission to Nvidia to perform exports needed to support U.S. customers of A100 through March 1, 2023.
Additionally, it permitted A100 and H100 order fulfillment and logistics through Nvidia’s Hong Kong facility through September 1, 2023.
Also Read: China Voices Displeasure Over US Chips Act; Warns Against Aggressive Standoff
Earlier, it acknowledged that U.S.’s new export restrictions could hamper its operations in the country.
Nvidia noted that its third-quarter guidance included about $400 million in potential sales to China, which may be subject to the new license agreement.
U.S. restricted sales of high-performance AI chips for servers, the A100 and H100, to China and Russia.
However, it authorized exports, reexports, and in-country transfers needed to continue Nvidia’s development of H100 integrated circuits.
The U.S. aimed to restrict U.S. exports of certain semiconductors and equipment, fearing China’s exploitation of the same for military purposes.
Nvidia CEO Jensen Huang warned analysts against Chinese cloud companies slowing down building out their data centers and that China was a “very large market” for the company, CNBC reports.
Now Nvidia can continue to ship AI chips from its Hong Kong facility through September 2023.
Some analysts are optimistic that Nvidia can reduce the impact of the new export restrictions by working with the government. However, clarity is pending over China’s retaliation.
The U.S. took steps to restrict China’s access to cutting-edge semiconductor technology, including imposing restrictions on China’s chipmakers.
Price Action: NVDA shares traded lower by 0.17% at $139.14 in the premarket on the last check Friday.
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https://finnhub.io/api/news?id=c876815fbf5d47b54fcc608fb1ecfb1ca164b8e8cfecbee4007b1e0e734d049a | Uniswap leads way as most big cryptocurrencies post increases | Most of the largest cryptocurrencies were up during morning trading on Friday, with Uniswap seeing the biggest change, climbing 4.46% to $6.58. Seven... | 2022-09-02T03:00:00 | MarketWatch | Most of the largest cryptocurrencies were up during morning trading on Friday, with Uniswap UNIUSD seeing the biggest change, climbing 4.46% to $6.58.
Seven additional currencies posted upswings Friday. Litecoin LTCUSD increased 3.54% to $59.43, and Polkadot DOTUSD rose 3.46% to $7.40.
Ethereum ETHUSD climbed 3.05% to $1,629.00, while Bitcoin Cash BCHUSD rallied 1.21% to $118.19. Bitcoin BTCUSD increased 0.95% to $20,298.43.
Cardano ADAUSD and Dogecoin DOGEUSD rounded out the increases for Friday, with gains of 0.95% to 46 cents and 0.21% to 6 cents, respectively.
On the other hand, Ripple XRPUSD posted the only drop, falling 0.78% to 33 cents.
In crypto-related company news, shares of Coinbase Global Inc. COIN dropped 1.74% to $64.39, while MicroStrategy Inc. MSTR declined 1.65% to $217.27. Riot Blockchain Inc. RIOT shares dropped 2.55% to $6.68, and shares of Marathon Digital Holdings Inc. MARA dropped 3.56% to $11.10.
Overstock.com Inc. OSTK shed 1.43% to $25.46, while Block Inc. SQ dropped 2.45% to $67.07 and Tesla Inc. TSLA inched down 0.44% to $275.93.
PayPal Holdings Inc. PYPL slipped 0.94% to $91.79, and Ebang International Holdings Inc. Cl A EBON shares sank 0.09% to 46 cents. NVIDIA Corp. NVDA dropped 1.01% to $137.96, and Advanced Micro Devices Inc. AMD sank 0.94% to $81.93.
In the fund space, the Bitwise Crypto Industry Innovators ETF BITQ, which is focused on pure-play crypto companies, inched down 0.28% to $7.24. Blockchain-focused Amplify Transformational Data Sharing ETF BLOK inched down 0.39% to $20.44. Grayscale Bitcoin Trust GBTC, which tracks the Bitcoin market price, rallied 2.28% to $12.56.
Editor's Note: This story, which tracks nine of the top cryptocurrencies and excludes stable coins, was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones, FactSet and Kraken. See our market data terms of use. | NVDA |
https://finnhub.io/api/news?id=b695ae3e1770d020a399f771a49ed77d0a6b5803c352ce56235c210732883f52 | What Is the Qualcomm-Meta Agreement All About? | Chip manufacturer Qualcomm (QCOM) (GB:0QZ3) has joined hands with social media giant Meta Platforms (META) for the production of custom chips. Under the multi-year ... | 2022-09-02T02:34:00 | TipRanks | Chip manufacturer Qualcomm (QCOM) (GB:0QZ3) has joined hands with social media giant Meta Platforms (META) for the production of custom chips. Under the multi-year agreement, Qualcomm will provide custom chips for Meta’s Quest VR headsets.
The announcement came at a consumer electronics conference in Berlin today and teams from both companies are expected to work together to develop the chips, which will use Qualcomm’s Snapdragon XR platforms.
While financial terms remain undisclosed, the chips (which won’t be exclusive to Meta) will be optimized for the Quest headsets. With this move, Meta continues to forge ahead in its Metaverse journey.
Qualcomm, on its part, has already supplied chips for the Oculus Go and Meta Quest 2. It has most recently agreed to make chips for Microsoft’s AR smart glasses.
The Founder and CEO of Meta, Mark Zuckerberg, said, “Unlike mobile phones, building virtual reality brings novel, multi-dimensional challenges in spatial computing, cost, and form factor. These chipsets will help us keep pushing virtual reality to its limits and deliver awesome experiences.”
Is Meta a Good Stock?
Loop Capital market’s Rob Sanderson has reiterated a Buy rating on Meta while decreasing his price target on the stock to $165 from $180. Overall, analysts have a Moderate Buy consensus rating on META stock with an average price target of $224.21, indicating a 35.59% upside.
Qualcomm Is Being Sued
In another development, Qualcomm and Nuvia have been sued for license violations in a federal district court of Delaware by Softbank-owned Arm.
Arm, which designs semiconductors, has accused Qualcomm and Nuvia of violating its licenses. Arm has now asked Qualcomm and Nuvia not to infringe its trademarks, and stop the use of and destroy the relevant technology. The company has also asked for compensation for the infringement.
What Is QCOM Stock’s Price Target?
QCOM’s average price target of $189.85 indicates 46.13% upside potential for the stock. Overall, the Street is cautious but optimistic about Qualcomm, which carries a Moderate Buy consensus rating.
Closing Thoughts
While Mark Zuckerberg’s Meta continues to make strides in the metaverse space, Qualcomm is expanding its expertise and offerings in virtual reality. The substantial double-digit upside seen by analysts in these stocks is icing on the cake for investors.
Read full Disclosure | NVDA |
https://finnhub.io/api/news?id=2d67eebbb1ec801fec9ec6432e175f05166192e1999f4e4e51589ffb83bda95d | Qualcomm: Wait For Another Bottom In September | Qualcomm is already showing signs of weakness post FQ3'22 earnings call. Check out at what price QCOM stock can be bought. | 2022-09-02T02:00:00 | SeekingAlpha | Qualcomm: Wait For Another Bottom In September
Summary
- Qualcomm is already showing signs of weakness post FQ3'22 earnings call, significantly worsened by the Fed's hawkish comments.
- We may potentially see another $120s over the next few weeks, which has proved to be QCOM's support level for the past two years.
- With aggressive plans to diversify into the server market, QCOM should easily deliver growth, with a promising $700B Total Addressable Market.
Investment Thesis
Qualcomm's (NASDAQ:QCOM) stellar performance in FQ3'22 was obviously overshadowed by the softer guidance for FQ4'22. However, we must highlight that QCOM is already performing by leaps and bounds better than expected, given the destruction of demand in the PC, mobile, and gaming industries. The company had side-stepped the massive headwinds experienced by Nvidia (NVDA) and Intel (INTC), due to the strength in the former's premium smartphone segment, significantly cushioned by its long-term partnership with Apple (AAPL) and Samsung Electronics (OTCPK:SSNNF). Therefore, we reckon that the reaction post FQ3'22 earnings call is probably overblown.
Nonetheless, due to the Fed's hawkish commentary on the rising inflation, we may expect to see a steep interest hike in its upcoming meeting on 20 September. Combined with the weakening consumer demand in the mid-tier Android segment due to the worsening macroeconomics, we may see a further stock weakness ahead, as witnessed since 25 August 2022.
Massive Growth In The Global Server Market
In any case, we believe that the dip would offer an attractive entry point for those looking to add QCOM. Furthermore, the company is rumored to re-enter the server market moving forward, through the Nuvia acquisition previously completed in March 2021. That strategic expansion would provide the management with a much-needed diversification beyond the existing smartphone, IoT, and automotive segments, since the server market represents yet another avenue of global digital transformation beyond its $700B addressable market by 2026. Tai Liani, the analyst at Bank of America, said:
The deflating handset demand is a risk, yet we believe it is already reflected in expectations, and remain confident in the company’s long-term revenue opportunities and diversification strategy beyond handsets. (Seeking Alpha)
QCOM Has Performed Well Thus Far - Despite The Destruction In The Semi Market
In FQ3'22, QCOM reported revenues of $10.94B and gross margins of 56%, representing an increase of 35.7% though a decline of 1.8 percentage points YoY, respectively. In contrast, the company grew its profitability impressively to net incomes of $3.73B and net income margins of 34.1%, indicating an increase of 83.7% and 9 percentage points YoY, respectively.
The growth in QCOM's sales mainly was attributed to the record growth in the QCT Automotive and IoT segments, which recorded impressive YoY increases of 38% and 31%, respectively. Naturally, this is on top of the revenue driver segment, namely the handsets, which accounted for 56% of its revenues with a remarkable YoY growth of 58% in FQ3'22.
In FQ3'22, QCOM reported total operating expenses of $2.71B, representing a minimal increase of 10.1% YoY. This has massively improved the ratio to its growing sales at 24.8% of its revenues and 44.2% of its gross profits for the latest quarter, compared to 30.5%/52.9% in FQ2'21 and 41.5%/72.2% in FQ2'20, respectively. Thereby, boosting QCOM's profitability at the moment.
In the meantime, QCOM reported a 9.4% YoY increase in capital expenditures to $554M, on top of 18.4% revenue reinvested back into R&D efforts in FQ3'22. Long-term investors should be encouraged since these investments are expected to eventually be top and bottom line accretive, further accelerating the company's goal of a $700B TAM.
For now, QCOM still reported a relatively decent Free Cash Flow (FCF) generation at an FCF of $2.34B and an FCF margin of 21.4%. While investors may be concerned about the relatively low cash and equivalents of $3.2B on its balance sheet in FQ3'22, we must highlight that this is attributed to the $4.6B cash paid for the Arriver acquisition. Therefore, not an accurate reflection of QCOM's fundamental performance.
QCOM's Growth Will Normalize While Remaining Highly Profitable
Between FY2021 and FY2024, QCOM is expected to report revenues and net income growth at a CAGR of 13.26% and 18.83%, respectively. Otherwise, 5.04% and 3.21%, respectively, over the next two years. It is evident that the pandemic-driven hyper-growth is coming to an end, similarly reflected in its stock prices now. Nonetheless, it is essential to note that these numbers reflect its steady performance ahead, without suffering a similar downgrade from consensus estimates, such as Nvidia and Intel, since our previous analysis in April 2022.
Furthermore, analysts remain optimistic about QCOM's profitability, given the growth in its net income margins from 18.1% in FY2019, to 26.9% in FY2021, and finally to 31.1% by FY2024, though partly attributed to Arriver. Stellar indeed, since it would be directly translated to its FCF generation and ability in sustaining dividend growth ahead. Assuming a similar FCF margin in FQ3'22, we are looking at an aggressive estimate of up to $10.43B of cash flow generation by FY2024, which would represent an exemplary milestone in QCOM's profitability then.
For FY2022, QCOM is expected to report revenues of $44.19B and net incomes of $14.24B, representing impressive YoY growth of 31.6% and 57.5%, respectively. Consensus also estimates revenues of $11.4B and net incomes of $4.19B for FQ4'22, representing an excellent increase of 22.1% and 50.1% YoY, respectively, despite the perceived softer guidance from the management in its FQ3'22 earnings call. Therefore, long-term QCOM investors have nothing to fear ahead, since the normalization of revenue growth is a natural post-reopening cadence.
In the meantime, we encourage you to read our previous article on QCOM, which would help you better understand its position and market opportunities.
- Qualcomm Is A Strong Buy With Robust Global Demand
- Qualcomm: $700 Billion Market Opportunity - Why We Are Buying
So, Is QCOM Stock A Buy, Sell, or Hold?
QCOM 5Y EV/Revenue and P/E Valuations
QCOM is currently trading at an EV/NTM Revenue of 3.46x and NTM P/E of 10.55x, lower than its 5Y mean of 4.19x and 17.16x, respectively. The stock is also trading at $132.27, down 31.6% from its 52 weeks high of $193.58, though at a premium of 11.8% from its 52 weeks low of $118.23.
QCOM 5Y Stock Price
In the meantime, consensus estimates still rate QCOM as an attractive buy with a price target of $190.45 and a 41.6% upside from current prices. However, we are starting to see some weakness in the sector, especially given the Fed's potentially aggressive rate hikes ahead. The stock will likely continue to retrace over the next few weeks, reaching the time of maximum pain before the Fed's next meeting. As a result, we encourage investors to wait till then, before adding this stellar stock at near bottom levels of $120.
This article was written by
Analyst’s Disclosure: I/we have a beneficial long position in the shares of QCOM, NVDA, INTC, AAPL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Comments (17)
Once gain Chinese revenues are linked to OEM, not end customers. If you want to have some real insight, you’ll need to dive into each OEM report and see the geographical split of revenues on the high end smartphone they sell. If not, this is once again misguided information. | NVDA |
https://finnhub.io/api/news?id=1db1f6e06a26848d2f85c7f4ed6bb6ec0e11a6b45d1a0031bb4fe4587478714e | Qualcomm and Meta teaming to build future VR headsets | Qualcomm and Meta have entered into a years-long agreement that will see the chipmaker provide chips for Meta's VR headsets. | 2022-09-02T01:00:47 | Yahoo | Qualcomm and Meta teaming to build future VR headsets
Qualcomm (QCOM) and Facebook parent Meta (META) continue to lean further into the metaverse. The latest move comes in the form of a new multi-year agreement between the companies that will see Meta use Qualcomm’s Snapdragon XR platform to power its VR and AR devices for the foreseeable future.
The news came during Qualcomm CEO Cristiano Amon’s keynote at the IFA conference in Berlin on Sept.2.
“By partnering with Meta, we are bringing together two of the world’s metaverse leaders to revolutionize the future of computing for billions of people in the coming years,” Amon said. “Building off our joint leadership in XR, this agreement will allow our companies to deliver best-in-class devices and experiences to transform how we work, play, learn, create, and connect in a fully realized metaverse.”
Meta already uses Qualcomm’s Snapdragon XR2 platform to power its Meta Quest 2, and the original Quest ran on the Snapdragon 835, so the two companies are intimately familiar with each other.
As we continue to build more advanced capabilities and experiences for virtual and augmented reality, it has become more important to build specialized technologies to power our future VR headsets and devices.
Meta raised the price of its Quest 2 headset in July by $100 to $399 for a headset with 128GB of storage and $499 for 256GB. The move was a bit of a head scratcher considering the Quest 2 first hit the market in Oct. 2020. Device makers usually lower their prices as time goes on.
During an appearance on Joe Rogan’s podcast last month, Zuckerberg said his company is preparing to release a new headset next month. The device is largely expected to be Meta’s highly-anticipated Project Cambria platform. The headset is expected to cost nearly far more than the Quest 2 and could target enthusiasts.
Meta is pouring money into its attempts to own the metaverse, plowing $10 billion into the project in 2021 alone. And Zuckerberg has admitted that it will continue to cost the company billions for years to come.
As it stands Meta’s own metaverse software Horizon Worlds leaves much to be desired. Graphics are still rather crude compared to modern high-end video games and there’s not much to do outside of some basic games.
I wrote in my latest column that the enterprise is the best way for companies to prove the metaverse’s worth to consumers. Meta is already working on those kinds of capabilities via its Horizon Workrooms, though it’s not alone. Microsoft (MSFT) has a similar product in its Teams Mesh software.
Nvidia (NVDA), meanwhile, is pushing forward with its own Omniverse software designed for enterprise solutions including creating digital twins for engineering purposes, among others.
Most consumers still don’t even understand the metaverese. According to Forrester, some 23% of U.S. online adults are familiar with the metaverse. That number drops significantly outside of the U.S. with just 17% of German adults knowing about the metaverse.
If Meta’s big bet is going to pay off, it will need to do more to convince its broad user base as to why it needs to jump into metaverse in the first place.
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More from Dan
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Got a tip? Email Daniel Howley at [email protected]. Follow him on Twitter at @DanielHowley.
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https://finnhub.io/api/news?id=f630a10a71057c230782db3def4fce1cf72f7f1a13eb0a9c5dbc0c540b346d22 | Taiwan Semiconductor Manufacturing Company | 2022-09-01T23:59:00 | TalkMarkets | Sorry, the page you are looking for has been removed. Let's find a better place for you to go. Back to Home | NVDA |
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https://finnhub.io/api/news?id=252dc41d4a089bc9c8c0aaab588914a19c4aab4f08063bc6e8e970fb2db9d34b | Broadcom’s Solid Forecast Fails to Give Chip Stocks a Boost | Shares of Nvidia, Micron and Intel are slipping even after fellow chip maker Broadcom said it expected 'solid demand' to continue in its fiscal fourth quarter. | 2022-09-01T21:41:00 | MarketWatch | Semiconductor stocks were slipping Friday even after chip maker Broadcom said it expected “solid demand” to continue in its fiscal fourth quarter. Chief Executive Hock Tan told analysts that “infrastructure spending is still very much holding.”
Broadcom (ticker: AVGO) shares rose 1.9% in premarket trading Friday to $501.50 after the company said it expected fourth-quarter revenue of $8.9 billion, higher than analysts’ expectations of $8.77 billion. The stock has declined 26% this year.
Third-quarter earnings and revenue at the chip supplier also beat Wall Street forecasts.
Tan told analysts on a conference call following the release of the earnings report that “while consumer IT hardware spending has been reported to be weak, very weak, from our vantage point, infrastructure spend is still very much holding.”
The CEO added that it was “true demand what we’re seeing with respect to the various end markets and the infrastructure products we sell to into those end markets.” He admitted the company’s earnings report was “somewhat surreal.”
Piper Sandler analyst Harsh Kumar, who rates Broadcom stock at Overweight, said the company “reported a very stable and solid quarter,” adding that the company saw growth “across the software business and, more importantly, across the semiconductor business as well.”
Shares of chip stocks have stumbled this year as demand has waned for consumer products such as personal computers and smartphones.
Nvidia (NVDA) shares fell slightly Friday after tumbling 7.7% in Thursday’s session. The decline Thursday was related to new licensing requirements from the U.S. on some of the company’s advanced chips, which will impact sales to China. The stock has declined nearly 53% this amid the weaker demand environment.
Chip makers Micron Technology (MU), Intel (INTC) and Qualcomm (QCOM) also were posting modest losses in premarket trading. They had traded higher earlier in the session. Advanced Micro Devices (AMD) was rising, but only slightly with the stock barely in positive territory.
Write to Joe Woelfel at [email protected] | NVDA |
https://finnhub.io/api/news?id=4068d342500f96c4564c6896c50663afd01185c76e9ea7a1fe5cdd350686bbef | Nvidia (NVDA): New Buy Recommendation for This Technology Giant | Needham analyst Rajvindra Gill maintained a Buy rating on Nvidia (NVDA – Research Report) today and set a price target of $170.00. The company’s shares ... | 2022-09-01T21:32:00 | TipRanks | Needham analyst Rajvindra Gill maintained a Buy rating on Nvidia (NVDA – Research Report) today and set a price target of $170.00. The company’s shares closed yesterday at $139.37.
Gill covers the Technology sector, focusing on stocks such as Nvidia, Pixelworks, and GlobalFoundries Inc. According to TipRanks, Gill has an average return of 12.2% and a 57.00% success rate on recommended stocks.
In addition to Needham, Nvidia also received a Buy from Bernstein’s Stacy Rasgon in a report issued yesterday. However, on August 25, Morgan Stanley maintained a Hold rating on Nvidia (NASDAQ: NVDA).
See today’s best-performing stocks on TipRanks >>
Based on Nvidia’s latest earnings release for the quarter ending July 31, the company reported a quarterly revenue of $6.7 billion and a net profit of $656 million. In comparison, last year the company earned a revenue of $6.51 billion and had a net profit of $2.37 billion
Based on the recent corporate insider activity of 76 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of NVDA in relation to earlier this year.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
NVIDIA Corp. designs and manufactures computer graphics processors, chipsets, and related multimedia software. The company operates through two segments:
• Graphics segment: Includes GeForce GPUs (graphics processing units) for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms, Quadro GPUs for enterprise design, GRID software for cloud-based visual and virtual computing, as well as automotive platforms for infotainment systems.
• Compute & Networking segment: Includes Data Center platforms and systems for artificial intelligence, high performance computing, and accelerated computing, Mellanox networking and interconnect solutions, DRIVE for autonomous vehicles and Jetson for robotics and other embedded platforms.
The company was founded by Jen-Hsun Huang, Chris A. Malachowsky, and Curtis R. Priem in January 1993 and is headquartered in Santa Clara, CA.
Read More on NVDA: | NVDA |
https://finnhub.io/api/news?id=da73b938cbc821a6bc2b2117be59807af636c1c0ac9ce99fe571450016cac01f | After selling Nvidia last month, Cathie Wood's ARK snaps up graphic chipmaker's stock as it hits 52-week low | Cathie Wood's ARK Invest cut its stake in Nvidia ahead of the graphic chipmaker's results last month. Now it's snapped up the stock which has dropped to a... | 2022-09-01T20:40:00 | MarketWatch | That was a quick turnaround. After cutting its stake in Nvidia ahead of the graphic chipmaker’s results last month, Cathie Wood’s ARK Invest has now bought the stock in three of the company’s funds.
The flagship ARK Innovation Fund
ARKK,
It came on a day Nvidia’s stock dropped 8%, reeling from the disclosure that the U.S. will limit exports to China, which marked its fourth downgrade in guidance this year. Wood’s caution ahead of the results was warranted, as that was the company’s third downgrade.
Nvidia shares has tumbled 53% this year.
The purchases were offset by virtually identical sales in each of the funds of Tesla
TSLA,
ARK’s flagship innovation fund has dropped 56% this year. It’s also suffered $803 million in outflows over the last month, according to FactSet data, though it’s brought in $982 million worth of inflows this year. | NVDA |
https://finnhub.io/api/news?id=97dcafc700dbe1dd5053157c892f74ff2e50e6a0b83f08066953fe417cf9c090 | Dow Jones Futures: Market Rally Gets Reprieve; The Key Metric In Friday's Jobs Report | The stock market rally rebounded off lows Thursday, but is still ailing. Here's the key metric in Friday's jobs report. | 2022-09-01T18:57:55 | Yahoo | Dow Jones Futures: Market Rally Gets Reprieve; The Key Metric In Friday's Jobs Report
The stock market rally rebounded off lows Thursday, but is still ailing. Here's the key metric in Friday's jobs report.
The stock market rally rebounded off lows Thursday, but is still ailing. Here's the key metric in Friday's jobs report.
Mark Spitznagel and Nassim Taleb have been watching for black swans for decades. "We’ve never seen anything like this level of total debt and leverage in the system," he tells Fortune. "It's an experiment."
Warren Buffett is undeniably the most famous and influential investor in modern history, based on his extraordinary performance record. Not surprisingly, the investment portfolio of Berkshire Hathaway Inc. (BRK.A), the holding company employing the Oracle of Omaha as chairman and CEO, receives wide media attention and scrutiny, even though Buffett is no longer making every investment decision. Despite his unparalleled success, Buffett's investment model has long been transparent, straightforward, and consistent.
Stocks have blown past expectations for 2023 – but some analysts are bracing for a sell-off as the market approaches record highs.
The JPMorgan Equity Premium Income ETF’s (NYSEARCA:JEPI) combination of high yield and monthly payments has quickly made it one of the market’s most popular ETFs. Investors who like JEPI’s style now have another high-yield competitor to consider — the NEOS S&P 500 High Income ETF (BATS:SPYI), which also pays on a monthly basis and yields 10.7%. Let’s take a closer look at this intriguing new option for high-yield investors. What is SPYI ETF’s Strategy? Launched in August of 2022, SPYI is still a
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Berkshire Hathaway historically reports its quarterly financial results on weekends, and CEO Warren Buffet has a simple reason why. Berkshire (ticker: BRK.A, BRK.B) reported second-quarter earnings Saturday morning. Many other public companies, however, release their earnings results during the trading week, either before the market opens or after the closing bell.
The market rally is at an infection point after notable losses. Here's what to do. Warren Buffett's Berkshire earnings rose.
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The week ahead will feature a crucial inflation report and earnings out of Disney, UPS, and Alibaba as second quarter earnings season winds down.
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AustralianSuper, one of the world’s largest pensions, halved its Apple stock investment and sold Microsoft stock, while buying shares of Tesla and Nvidia.
One in 6 asset and wealth management companies will be bought or shut down in the next five years, according to a PwC survey of asset managers and institutional investors.
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Dubbed the Oracle of Omaha, Warren Buffett is renowned for his simple and frugal lifestyle. Despite being the sixth richest person globally, with a net worth estimated at $117.9 billion, Buffett continues to live in the same modest home in Omaha that he purchased in 1958 for just $31,500. Adjusted for inflation, that amount today would be approximately $328,990.80, a mere 0.000279% of his total net worth. Buffett has consistently ranked the purchase of his home as the third-best investment he ha
As a pandemic-inspired boom ends, entrepreneurs and giant corporations alike are counting on customers to keep accumulating more stuff than they can squeeze into their homes. | NVDA |
https://finnhub.io/api/news?id=3223ddd8f5955eddc76fa68d19b80ea524931e2f9f27db12491cca02014a5305 | Divergence: the Rare Market Phenomenon To Hoist Your Portfolio | Divergence is a rare market phenomenon that has a perfect track record of minting millionaires. And now it's emerging yet again. | 2022-09-01T18:00:00 | InvestorPlace | [Editor’s note: “Divergence: the Rare Market Phenomenon To Hoist Your Portfolio” was previously published in September 2022. It has since been updated to include the most relevant information available.]
If you’ve been feeling anxious about the market recently, you’re not alone.
Just a few months ago, the number of Wall Street bulls dropped to its lowest since the financial crisis of 2008.
Now, it’s pretty obvious why all the bulls disappeared. A war is raging on in Europe. Inflation has been running at record high levels. The U.S. Federal Reserve has been on an aggressive quantitative tightening cycle. And in March, we saw a regional banking meltdown that resulted in several banks’ failures and sent major shockwaves through the entire financial market.
Not to mention, oil prices have been surging again. The housing market has slowed. And as the labor market shows signs of cracking, folks are worried the Fed will hike the economy right into a recession.
Obviously, in the face of these economic and political headwinds, it’s time to sell stocks and run for the hills. Right?
Wrong.
Ever heard the saying, be greedy when others are fearful? Well, that saying has never been truer than it is today.
While everyone else is panicking, my team and I have identified a unique stock market phenomenon that’s emerging right now. And it only emerges in times like these, when everyone is worried sick over a crash.
In fact, this phenomenon is the most bullish market indicator in history.
It would’ve led you to buy Microsoft (MSFT) at 40 cents in 1988 or Amazon (AMZN) at $6 in 2001. You would’ve snatch up Nvidia (NVDA) at 40 cents in 2002. Each of those investments have since turned modest $10,000 stakes into million-dollar paydays.
Well, right now, my team and I are witnessing this phenomenon emerge yet again. So, while everyone else may be running for the hills, we’re running toward the stocks displaying this phenomenon. History says we’ll have the chance to turn thousands into millions…
But only if we act now.
So, what’s this phenomenon all about? Let’s find out.
The “Divergence” Phenomenon That Repeatedly Mints Millionaires
We’ve discussed this rare market phenomenon in these issues before, so we’ll be brief in our description this time around.
In short, we call this trend a “divergence.” It centers on huge divergences that emerge between where a stock is trading and where it should be trading.
Essentially, our analysis suggests that the long-term trajectory of stocks is ultimately determined by the company’s earnings and revenues. The correlation is unmistakably strong at more than 90%. And that’s about as strong as any correlation gets in the real world.
Occasionally, though, the two trends diverge. That is, stock prices drop, while revenues and earnings rise. Typically, this happens during times of widespread fear in the market. Investors let sentiment analysis – not fundamental analysis – drive their decision-making.
Every time this happens, it’s followed by a convergence. The stock price snaps back to the revenue/earnings trend lines.
Basically, the relationship between stocks and earnings is like a rubber band. Whenever it gets stretched, it eventually snaps back. And those snapbacks tend to produce enormous returns in stocks that have the biggest divergences.
This happened in the late 1980s after Black Monday. Investors who capitalized on the divergence back then had the chance to make 500% returns over the following five years.
It happened again in the early 2000s with the dot-com crash. That divergence phenomenon allowed savvy investors to score nearly 750% average returns over the next five years.
And it happened most recently with the 2008 financial crisis. During that divergence, investors had the chance to score 1,000% gains over the next five years.
It’s a rare stock market phenomenon that has a perfect track record of minting millionaires.
And now it’s emerging yet again.
The Biggest Divergence Yet?
Obviously, there’s a lot of fear out there right now. Just like there was a lot of fear in 1988, 2000 and 2008. And just as it did back then, this fear is creating a divergence.
Across the market, companies are seeing stock prices fall sharply while revenues and earnings keep growing.
Previous divergences created excellent (some would say life-changing) buying opportunities. This one will be no different.
In fact, per our data analysis, the divergence we’re seeing today could be the biggest one yet.
Our proprietary divergence metric – which we call the “divergence magnitude” – quantitatively calculates the size of a stock’s divergence. And it shows that many stocks are currently amid historically large divergences.
Moreover, our analysis also revealed a strong correlation between the size of the divergence and the size of the convergence. That is, the more an individual stock diverged, the bigger its subsequent rebound was. Think of the rubber band analogy. The farther you pull back a rubber band, the faster and more furiously it snaps back into equilibrium.
And right now, what we’re seeing with stocks is the rubber band stretched to its maximum. What comes next will be the biggest individual stock rally in the market’s history.
The Final Word
I’m not a comedian, but if I may, I’d like to finish this issue with a joke.
Knock, knock!
Who’s there?
Opportunity.
Opportunity who?
You fool. Opportunity only knocks once.
Currently, folks, an enormous investment opportunity is knocking on your door. It won’t knock twice.
And honestly, the timing couldn’t be better. We’ve recently talked in these issues about pouncing on a stock at just the right moment – when it’s preparing for a big breakout. And when it comes to divergent stocks, what a breakout that will be…
Now, leaving these interpretations up to human reasoning can be a great way for emotions to lead to sub-optimal market moves. Countless studies have proven that emotions trip up investors, resulting in losses or missed gains.
Instead, we believe that a high-power computer network running detailed, complex algorithms is a vastly superior approach. And we’ve just finished developing a new quant system that does just that.
This means we’re not finding trades based on hunches, gut feel, or emotions. We’re using computers that don’t get greedy or scared. They process cold, hard data, then produce impartial results.
And that’s how we reduce false breakouts and avoid most premature, whipsaw sell signals. This new system holds the key to creating massive wealth in any market climate.
Take advantage of our groundbreaking tech, and set yourself up for enormous gains.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article. | NVDA |
https://finnhub.io/api/news?id=1909b813786f66967143c7559afff2d8cbee79f81ecc21d67389e2287ffad927 | Explainer-Biden's curbs on chips to China part of broader effort | Chip designer Nvidia Corp this week said the United States told it to restrict exports to China of two computing chips for artificial intelligence work, the latest move in a broader government effort to hamper China's access to the most sophisticated semiconductors. News of the letter to Nvidia, and a similar one to rival AMD, follows an August announcement from the Commerce Department curbing exports of materials and software used to make next generation chips, as well as recent reporting from Reuters on other actions under consideration that would make it much harder for the Chinese semiconductor sector to compete on a global scale. The U.S. notice to chipmakers could cripple Chinese firms' ability to carry out advanced work like image recognition and hamper Nvidia's business in the country. | 2022-09-01T17:05:09 | Yahoo | Explainer-Biden's curbs on chips to China part of broader effort
WASHINGTON (Reuters) - Chip designer Nvidia Corp this week said the United States told it to restrict exports to China of two computing chips for artificial intelligence work, the latest move in a broader government effort to hamper China's access to the most sophisticated semiconductors.
News of the letter to Nvidia, and a similar one to rival AMD, follows an August announcement from the Commerce Department curbing exports of materials and software used to make next generation chips, as well as recent reporting from Reuters on other actions under consideration that would make it much harder for the Chinese semiconductor sector to compete on a global scale.
The U.S. notice to chipmakers could cripple Chinese firms' ability to carry out advanced work like image recognition and hamper Nvidia's business in the country.
While a Commerce Department spokesperson did not shed much light on the letters in a statement, they suggested it was part of a broader effort aimed at China: "While we are not in a position to outline specific policy changes at this time, we are taking a comprehensive approach to implement additional actions necessary related to technologies, end-uses, and end-users to protect U.S. national security and foreign policy interests."
As in the past, the agency said it wanted to prevent China's access to technology that could be used "to fuel its military modernization efforts."
At the same time, Commerce Secretary Gina Raimondo has said the agency "is pursuing strategies like 'nearshoring' and 'friendshoring,' so like-minded partners are integrated into our supply chains... As we rebuild our supply chains, we can’t be dependent on foreign countries that don’t share our values for our critical chip components."
In a move interpreted as aimed at China, the department in August adopted new export controls on technologies that support the production of advanced semiconductors and gas turbine engines that the United States says are critical to its national security.
The controls include ECAD, a category of software tools used for validating integrated circuits or printed circuit boards "that can advance many commercial as well as military applications including defense and communications satellites," the department said at the time.
Soon after that Biden signed a bill to boost U.S. competition with China's science and technology efforts by subsidizing U.S. chip manufacturing and expanding research funding. The law aims to "reduces reliance on vulnerable or overly concentrated foreign production for both leading-edge and mature microelectronics."
The United States is also considering limiting shipments of American chipmaking equipment to memory chip makers in China including Yangtze Memory Technologies Co Ltd (YMTC), four people familiar with the matter told Reuters, part of the bid to halt China's semiconductor sector advances.
The crackdown, if approved, would involve barring the shipment of U.S. chipmaking equipment to factories in China that manufacture advanced NAND chips.
Tensions between China and the United States over the tech sector deepened under Biden's predecessor Donald Trump and have continued since. Reuters reported in July that Biden's administration is also considering restrictions on shipments to China of tools to make advanced logic chips, seeking to hamstring China's largest chipmaker, SMIC.
(Reporting by Chris Sanders; Editing by Alistair Bell) | NVDA |
https://finnhub.io/api/news?id=ba5cc5ad57fbd2f5cfd8c1520e9a5af0e8658ac8e77df5f9bf1ad53fadebbf6d | Is Nvidia's Drop Signaling the Beginning of a New China-U.S. Trade War? | Stock markets finally came back to life on Thursday, as major market benchmarks recovered from substantial losses early in the session. The Nasdaq Composite (NASDAQINDEX: ^IXIC) still lost ground, but the Dow Jones Industrial Average (DJINDICES: ^DJI) and S&P 500 (SNPINDEX: ^GSPC) moved higher to break a multi-day losing streak. One stock that played a big role in holding the Nasdaq back from gains was Nvidia (NASDAQ: NVDA). | 2022-09-01T15:49:00 | Yahoo | Is Nvidia's Drop Signaling the Beginning of a New China-U.S. Trade War?
Stock markets finally came back to life on Thursday, as major market benchmarks recovered from substantial losses early in the session. The Nasdaq Composite (NASDAQINDEX: ^IXIC) still lost ground, but the Dow Jones Industrial Average (DJINDICES: ^DJI) and S&P 500 (SNPINDEX: ^GSPC) moved higher to break a multi-day losing streak. One stock that played a big role in holding the Nasdaq back from gains was Nvidia (NASDAQ: NVDA). | NVDA |
https://finnhub.io/api/news?id=1fc3ac43b26f527e070be0e9d0de50984bae91e89621c3c72116db92c38bf337 | What's Going On With NVIDIA? | NVIDIA has recently fallen on tough times, with its earnings outlook shifting negative for the near term amid new licensing requirements and a massive growth slowdown within its gaming segment. | 2022-09-01T14:27:09 | Yahoo | What's Going On With NVIDIA?
Semiconductor stocks have lost serious power in 2022 after providing supercharged returns over the last several years.
To put things into perspective, SOXX, the iShares Semiconductor ETF, is down more than 30% year-to-date, vastly underperforming the S&P 500.
Image Source: Zacks Investment Research
As we can see, it’s been anything but fun for chip stocks in 2022 amid a hawkish Fed and supply-chain disruptions.
An investor favorite, NVIDIA NVDA, has been no exception to the adverse price action, with shares losing more than half of their value YTD and coming nowhere near the general market’s performance.
In fact, the share performance even widely lags a few of its peers, including Advanced Micro Devices AMD and Intel INTC. This is shown in the chart below.
Image Source: Zacks Investment Research
It raises a valid question, what’s going on with NVIDIA shares to make them perform so poorly relative to other chip stocks? Let’s take a closer look.
Near-Term Outlook Appears Grim
Flipping the pages back a little, NVIDIA shocked the market in early August, providing disheartening guidance that they were forecasting Q2 sales of $6.7 billion vs. the previous $8.1 billion outlook.
This was when the tide started to shift, and the market didn’t react well to the guidance, to say the least – NVDA shares lost nearly 7% the day of.
NVDA reported quarterly sales of $6.7 billion, right at their guidance. The value reflected year-over-year growth of 3% but a sequential decrease of 19%. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Still, why did they initially guide lower? One primary reason included their gaming revenue, which was negatively impacted by macroeconomic headwinds that heavily affected demand.
Fast-forward to today, and the semiconductor titan is back in the headlines following news that the U.S. government will impose a new license requirement for future exports to China.
It’s a significant development, with NVIDIA stating that it could lose up to $400 million in quarterly revenue as a result, which is obviously not a positive sign.
Is It Time To Buy?
As expected, analysts have substantially pulled back their earnings estimates over the last 60 days, pushing the stock into a Zack Rank #5 (Strong Sell).
Image Source: Zacks Investment Research
Investors should target Zacks Rank #1 (Strong Buy) or Zacks Rank #2 (Buy) stocks, as they provide much higher odds of investors reaping considerable gains. With NVDA carrying a Zacks Rank #5 (Strong Sell), it tells us that its near-term earnings outlook is a bit cloudy and under pressure.
The Zacks Consensus EPS Estimate for the company’s current fiscal year (FY23) resides at $3.48, suggesting a Y/Y decrease of a steep 21%. NVDA’s bottom-line is projected to see some relief in FY24, with the $4.57 per share estimate reflecting year-over-year growth of 31%.
Image Source: Zacks Investment Research
However, the company’s valuation levels have fallen extensively, suggesting that long-term investors could start becoming interested.
NVDA’s forward 12-month price-to-sales ratio has fallen to 12.3X, right at its median of 12.4X over the last five years. Further, the value is 55% off its high of a steep 27.5X in 2021.
Image Source: Zacks Investment Research
Bottom Line
Once seemingly unstoppable investments, chip stocks have fallen from glory in 2022, leaving dents in many portfolios.
A poster-child for the industry, NVIDIA, has recently fallen on tough times, with its earnings outlook shifting negative for the near term amid new licensing requirements and a massive growth slowdown within its gaming segment.
Following the deep sell off, the company’s valuation levels have come down substantially, perhaps intriguing investors with a long-term horizon.
However, it’s vital to recognize that its unfavorable Zacks Rank indicates that more pain could be ahead.
A great strategy would be to wait until NVIDIA’s NVDA earnings outlook strengthens, especially amid the currently cloudy outlook.
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Zacks Investment Research | NVDA |
https://finnhub.io/api/news?id=73df9e8ce26be12da9f17d9d7675c4d507bd2043942a4c61449c0cab7f4a1e01 | Stock Market Today - 9/1: Stocks End Mixed as Dow, S&P Snap Losing Street | Wall Street entered September, the market's toughest month, on a high note as the Dow and S&P 500 snaped losing streaks. | 2022-09-01T14:26:00 | Yahoo | Stock Market Today - 9/1: Stocks End Mixed as Dow, S&P Snap Losing Street
Wall Street entered September, the market's toughest month, on a high note as the Dow and S&P 500 snaped losing streaks.
Wall Street entered September, the market's toughest month, on a high note as the Dow and S&P 500 snaped losing streaks.
Mark Spitznagel and Nassim Taleb have been watching for black swans for decades. "We’ve never seen anything like this level of total debt and leverage in the system," he tells Fortune. "It's an experiment."
Warren Buffett is undeniably the most famous and influential investor in modern history, based on his extraordinary performance record. Not surprisingly, the investment portfolio of Berkshire Hathaway Inc. (BRK.A), the holding company employing the Oracle of Omaha as chairman and CEO, receives wide media attention and scrutiny, even though Buffett is no longer making every investment decision. Despite his unparalleled success, Buffett's investment model has long been transparent, straightforward, and consistent.
Stocks have blown past expectations for 2023 – but some analysts are bracing for a sell-off as the market approaches record highs.
The JPMorgan Equity Premium Income ETF’s (NYSEARCA:JEPI) combination of high yield and monthly payments has quickly made it one of the market’s most popular ETFs. Investors who like JEPI’s style now have another high-yield competitor to consider — the NEOS S&P 500 High Income ETF (BATS:SPYI), which also pays on a monthly basis and yields 10.7%. Let’s take a closer look at this intriguing new option for high-yield investors. What is SPYI ETF’s Strategy? Launched in August of 2022, SPYI is still a
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Berkshire Hathaway historically reports its quarterly financial results on weekends, and CEO Warren Buffet has a simple reason why. Berkshire (ticker: BRK.A, BRK.B) reported second-quarter earnings Saturday morning. Many other public companies, however, release their earnings results during the trading week, either before the market opens or after the closing bell.
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The week ahead will feature a crucial inflation report and earnings out of Disney, UPS, and Alibaba as second quarter earnings season winds down.
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Retirement account withdrawals not only help you cover basic living expenses, but they also can fund the lifestyle you've always envisioned in your golden years. That money, however, can have unintended tax consequences. Required minimum distributions (RMDs) and other withdrawals … Continue reading → The post Social Security Taxes Can Hit You Hard in Retirement. Here's How to Lower Them appeared first on SmartAsset Blog.
Dubbed the Oracle of Omaha, Warren Buffett is renowned for his simple and frugal lifestyle. Despite being the sixth richest person globally, with a net worth estimated at $117.9 billion, Buffett continues to live in the same modest home in Omaha that he purchased in 1958 for just $31,500. Adjusted for inflation, that amount today would be approximately $328,990.80, a mere 0.000279% of his total net worth. Buffett has consistently ranked the purchase of his home as the third-best investment he ha
As a pandemic-inspired boom ends, entrepreneurs and giant corporations alike are counting on customers to keep accumulating more stuff than they can squeeze into their homes. | NVDA |
https://finnhub.io/api/news?id=6c48be1a46e66d0b136fc773d9fe6eddabc7d51c6b0059ea2688bb3154c11543 | UPDATE 1-With new China AI chip restrictions, U.S. takes aim at a critical niche | The United States beefed up its effort to cut off the flow of advanced technology to China by instructing Nvidia Corp and Advanced Micro Devices to stop sending their flagship artificial intelligence chips there. While the news shocked the chip sector by the time markets closed Thursday, sending the Philadelphia semiconductor index down 1.9% and Nvidia and AMD down 7.6% and 3% respectively, the letters from the U.S. officials appeared to target a narrow but critical part of China's computing industry. The regulations appear to focus on chips called GPUs with the most powerful computing capabilities, a critical but niche market with only two meaningful players, Nvidia and AMD. | 2022-09-01T13:36:17 | Yahoo | UPDATE 1-With new China AI chip restrictions, U.S. takes aim at a critical niche
(Adds closing prices, updates headline)
By Stephen Nellis and Alexandra Alper
Sept 1 (Reuters) - The United States beefed up its effort to cut off the flow of advanced technology to China by instructing Nvidia Corp and Advanced Micro Devices to stop sending their flagship artificial intelligence chips there.
While the news shocked the chip sector by the time markets closed Thursday, sending the Philadelphia semiconductor index down 1.9% and Nvidia and AMD down 7.6% and 3% respectively, the letters from the U.S. officials appeared to target a narrow but critical part of China's computing industry.
The regulations appear to focus on chips called GPUs with the most powerful computing capabilities, a critical but niche market with only two meaningful players, Nvidia and AMD. Their only potential rival - Intel Corp - is trying to break into the market but has not released competitive products.
Originally designed for video games, the usage of GPUs, or graphic processing units, have been expanded to a wider array of applications that include handling artificial intelligence work like image recognition, categorizing cat photos or scouring digital satellite imagery for military equipment. Because all the chip suppliers are American, the U.S. controls access to the technology.
Some national security experts saw the U.S. move as a long time coming.
GPUs "have been totally uncontrolled to China and to Russia, so in a lot of ways I see this action as kind of catching up to where the controls probably should have been if we were really serious about trying to slow China’s AI growth," said Emily Kilcrease, a senior fellow at the Center for a New American Security.
The U.S. Department of Commerce, which declined to comment on the specifics of whatever new rules it may be developing, appears to have targeted the effort narrowly.
The only products Nvidia said would be affected are its A100 and H100 chips. Those chips cost tens of thousands of dollars each, with full computers containing the chips costing hundreds of thousands of dollars.
Similarly, AMD said that only its most powerful MI250 chip - a version of which is being used at Oak Ridge National Laboratory, one of several U.S. supercomputing sites that supports nuclear weapons - is affected by the new requirement. Less powerful chips such as AMD's MI210 and below are not affected.
What the affected chips share is the ability to carry out calculations for artificial intelligence work quickly, at huge scale and with high precision. Less powerful AI chips can work quickly at lower levels of precision, which is sufficient for tagging photos of friends and where the cost of an occasional mistake is low - but are insufficient for designing fighter jets.
The only major market rival to AMD and Nvidia's chips is Intel's still-unreleased Ponte Vecchio chip, whose first customer is Argonne National Lab, another U.S. installation that supports nuclear weapons.
"While we understand the U.S. Government is continuing to look at new restrictions, no new export control rules have been published and there are currently no changes to our business," Intel told Reuters in a statement. "We are closely monitoring the process." (Reporting by Stephen Nellis and Jane Lee in San Francisco and Alexandra Alper in Washington; editing by Jonathan Oatis) | NVDA |
https://finnhub.io/api/news?id=9437c2b45606d35c773050d27ba3f6cd5595d4c74aeb6f09445b462c571e9879 | With new China AI chip restrictions, U.S. takes aim at a critical niche | The United States beefed up its effort to cut off the flow of advanced technology to China by instructing Nvidia Corp and Advanced Micro Devices to stop sending their flagship artificial intelligence chips there. While the news shocked the chip sector by the time markets closed Thursday, sending the Philadelphia semiconductor index down 1.9% and Nvidia and AMD down 7.6% and 3% respectively, the letters from the U.S. officials appeared to target a narrow but critical part of China's computing industry. The regulations appear to focus on chips called GPUs with the most powerful computing capabilities, a critical but niche market with only two meaningful players, Nvidia and AMD. | 2022-09-01T13:25:41 | Yahoo | With new China AI chip restrictions, U.S. takes aim at a critical niche
By Stephen Nellis and Alexandra Alper
(Reuters) - The United States beefed up its effort to cut off the flow of advanced technology to China by instructing Nvidia Corp and Advanced Micro Devices to stop sending their flagship artificial intelligence chips there.
While the news shocked the chip sector by the time markets closed Thursday, sending the Philadelphia semiconductor index down 1.9% and Nvidia and AMD down 7.6% and 3% respectively, the letters from the U.S. officials appeared to target a narrow but critical part of China's computing industry.
The regulations appear to focus on chips called GPUs with the most powerful computing capabilities, a critical but niche market with only two meaningful players, Nvidia and AMD. Their only potential rival - Intel Corp - is trying to break into the market but has not released competitive products.
Originally designed for video games, the usage of GPUs, or graphic processing units, have been expanded to a wider array of applications that include handling artificial intelligence work like image recognition, categorizing cat photos or scouring digital satellite imagery for military equipment. Because all the chip suppliers are American, the U.S. controls access to the technology.
Some national security experts saw the U.S. move as a long time coming.
GPUs "have been totally uncontrolled to China and to Russia, so in a lot of ways I see this action as kind of catching up to where the controls probably should have been if we were really serious about trying to slow China’s AI growth," said Emily Kilcrease, a senior fellow at the Center for a New American Security.
The U.S. Department of Commerce, which declined to comment on the specifics of whatever new rules it may be developing, appears to have targeted the effort narrowly.
The only products Nvidia said would be affected are its A100 and H100 chips. Those chips cost tens of thousands of dollars each, with full computers containing the chips costing hundreds of thousands of dollars.
Similarly, AMD said that only its most powerful MI250 chip - a version of which is being used at Oak Ridge National Laboratory, one of several U.S. supercomputing sites that supports nuclear weapons - is affected by the new requirement. Less powerful chips such as AMD's MI210 and below are not affected.
What the affected chips share is the ability to carry out calculations for artificial intelligence work quickly, at huge scale and with high precision. Less powerful AI chips can work quickly at lower levels of precision, which is sufficient for tagging photos of friends and where the cost of an occasional mistake is low - but are insufficient for designing fighter jets.
The only major market rival to AMD and Nvidia's chips is Intel's still-unreleased Ponte Vecchio chip, whose first customer is Argonne National Lab, another U.S. installation that supports nuclear weapons.
"While we understand the U.S. Government is continuing to look at new restrictions, no new export control rules have been published and there are currently no changes to our business," Intel told Reuters in a statement. "We are closely monitoring the process."
(Reporting by Stephen Nellis and Jane Lee in San Francisco and Alexandra Alper in Washington; editing by Jonathan Oatis) | NVDA |
https://finnhub.io/api/news?id=8b58e029f5cb7ef562a522775a87a8bbc30911566a881048621fb32286bbf6b6 | With new AI chip rules, U.S. takes aim at a critical niche | The United States beefed up its effort to cut off the flow of advanced technology to China by instructing Nvidia Corp and Advanced Micro Devices to stop sending their flagship artificial intelligence chips there. While the news rocked the chip sector, sending the Philadelphia semiconductor index down 2.18% and Nvidia and AMD down 8.4% and 3.8% respectively, the letters from the U.S. officials appeared to target a narrow but critical part of China's computing industry. The regulations appear to focus on chips called GPUs with the most powerful computing capabilities, a critical but niche market with only two meaningful players, Nvidia and AMD. | 2022-09-01T13:21:51 | Yahoo | With new AI chip rules, U.S. takes aim at a critical niche
By Stephen Nellis and Alexandra Alper
Sept 1 (Reuters) - The United States beefed up its effort to cut off the flow of advanced technology to China by instructing Nvidia Corp and Advanced Micro Devices to stop sending their flagship artificial intelligence chips there.
While the news rocked the chip sector, sending the Philadelphia semiconductor index down 2.18% and Nvidia and AMD down 8.4% and 3.8% respectively, the letters from the U.S. officials appeared to target a narrow but critical part of China's computing industry.
The regulations appear to focus on chips called GPUs with the most powerful computing capabilities, a critical but niche market with only two meaningful players, Nvidia and AMD. Their only potential rival - Intel Corp - is trying to break into the market but has not released competitive products.
Originally designed for video games, the usage of GPUs, or graphic processing units, have been expanded to a wider array of applications that include handling artificial intelligence work like image recognition, categorizing cat photos or scouring digital satellite imagery for military equipment. Because all the chip suppliers are American, the U.S. controls access to the technology.
Some national security experts saw the U.S. move as a long time coming.
GPUs "have been totally uncontrolled to China and to Russia, so in a lot of ways I see this action as kind of catching up to where the controls probably should have been if we were really serious about trying to slow China’s AI growth," said Emily Kilcrease, a senior fellow at the Center for a New American Security.
The U.S. Department of Commerce, which declined to comment on the specifics of whatever new rules it may be developing, appears to have targeted the effort narrowly.
The only products Nvidia said would be affected are its A100 and H100 chips. Those chips cost tens of thousands of dollars each, with full computers containing the chips costing hundreds of thousands of dollars. Nvidia on Thursday said U.S. officials will allow it to fulfill orders for the chips through its Hong Kong facility for a year.
Similarly, AMD said that only its most powerful MI250 chip - a version of which is being used at Oak Ridge National Laboratory, one of several U.S. supercomputing sites that supports nuclear weapons - is affected by the new requirement. Less powerful chips such as AMD's MI210 and below are not affected.
What the affected chips share is the ability to carry out calculations for artificial intelligence work quickly, at huge scale and with high precision. Less powerful AI chips can work quickly at lower levels of precision, which is sufficient for tagging photos of friends and where the cost of an occasional mistake is low - but are insufficient for designing fighter jets.
The only major market rival to AMD and Nvidia's chips is Intel's still-unreleased Ponte Vecchio chip, whose first customer is Argonne National Lab, another U.S. installation that supports nuclear weapons.
"While we understand the U.S. Government is continuing to look at new restrictions, no new export control rules have been published and there are currently no changes to our business," Intel told Reuters in a statement. "We are closely monitoring the process." (Reporting by Stephen Nellis and Jane Lee in San Francisco and Alexandra Alper in Washington; editing by Jonathan Oatis) | NVDA |
https://finnhub.io/api/news?id=7ec6f7212fa28698d4d14ab88168dfda3b255fe2b2c413abb39e98bed0388479 | Markets edge toward mixed close, chip stocks continue to feel pressure | Markets reporter Jared Blikre examines the market and sector action ahead of the day's close, while also looking at the U.S. dollar and losses seen in the semiconductor industry. | 2022-09-01T13:19:18 | Yahoo | Markets edge toward mixed close, chip stocks continue to feel pressure
Markets reporter Jared Blikre examines the market and sector action ahead of the day's close, while also looking at the U.S. dollar and losses seen in the semiconductor industry.
Video Transcript
SEANA SMITH: Just about 90 seconds here from the closing bell. Let's get a closer look at the reversal that we've seen in just the past hour or so with Jared Blikre. Jared.
JARED BLIKRE: That's right. And let's take a look at the YFi Interactive, where we are seeing a comeback rally of sorts today in the Dow. This is over the last two days. So you can see it is down about half a percent. We're going back to last month. NASDAQ down about 1/3 of a percent. Russell 2000, the small caps, off more than 1%. Just want to show a quick chart of the US Dollar Index. This is-- this goes back to the 1980s.
Just want to show you that we are at the highest level in 20 years. This is having all sorts of repercussions in the market. You take a look at the sector action today, energy down 2 and 1/2%. That's as WTI crude closes at the lowest level since I believe January. Don't quote me on that, though. Materials also weak. That's off more than 1%. And tech having another bad day. That is off 1/2 a percent.
And you take a look inside the NASDAQ 100, got some action going on in the mega-caps, Alphabet and Meta each up more than 1%. But it's really the chip stocks that are flagging today. We've been talking about that. Nvidia down 7 and 1/2%, ASML down 4%, and software not looking a lot better. Here, we see Okta down 33% in one day. | NVDA |
https://finnhub.io/api/news?id=03056a3181cd96236f2b00b031cb3720c9cec7c07a9908b3472868504ea7149f | US STOCKS-S&P 500 snaps four-session losing streak with payrolls on deck | A late rally helped the S&P 500 snap a four-session losing skid on Thursday with investor focus turning to a key report on the labor market on Friday. Stocks had been solidly lower for most of the session, after data showed weekly jobless claims fell more than expected to a two-month low last week and layoffs dropped in August, giving the Fed a cushion to continue raising rates to slow the labor market. | 2022-09-01T13:17:40 | Yahoo | US STOCKS-S&P 500 snaps four-session losing streak with payrolls on deck
(For a Reuters live blog on U.S., UK and European stock markets, click or type LIVE/ in a news window.)
* U.S. manufacturing sector steady in August - ISM
* All eyes on August nonfarm payrolls report on Friday
* Nvidia, AMD fall after U.S. export ban on AI chips to China
* Dow up 0.46%, S&P 500 up 0.30%, Nasdaq down 0.26% (Adds volume, market breadth data)
By Chuck Mikolajczak
NEW YORK, Sept 1 (Reuters) - A late rally helped the S&P 500 snap a four-session losing skid on Thursday with investor focus turning to a key report on the labor market on Friday.
Stocks had been solidly lower for most of the session, after data showed weekly jobless claims fell more than expected to a two-month low last week and layoffs dropped in August, giving the Fed a cushion to continue raising rates to slow the labor market. Investors now await the monthly nonfarm payrolls report on Friday for more evidence on the labor market.
Economists polled by Reuters see a jobs increase of 300,000, while Wells Fargo economist Jay Bryson revised his forecast for nonfarm payrolls to 375,000 from 325,000 and Morgan Stanley economist Ellen Zentner expects August payrolls of 350,000.
"Today's market is about tomorrow morning. You've got a market that is oversold ... and a catalyst for a rally or at least not to sell off would be a weaker employment report especially with regard to wages," said Quincy Krosby, chief global strategist for LPL Financial in Charlotte, North Carolina. "The market is as data-dependent as the Fed. It's going to be on guard for every data release that could suggest when the Fed could be closer to finishing."
The S&P managed to bounce in the latter stages of trading after hitting a low of 3,903.65, near what some analysts see as a strong support level for stocks at 3,900.
The Dow Jones Industrial Average rose 145.99 points, or 0.46%, to 31,656.42; the S&P 500 gained 11.85 points, or 0.30%, to 3,966.85; and the Nasdaq Composite dropped 31.08 points, or 0.26%, to 11,785.13.
The benchmark S&P index has stumbled nearly 6% over the prior four sessions, which began after Fed Chair Jerome Powell signaled on Friday the central bank will remain aggressive raising rates to fight inflation even after consecutive hikes of 75 basis points, a message echoed by other Fed officials in recent days.
Despite the gains, the tone was defensive, with healthcare up 1.65%, and utilities, which gained 1.42%, the leading sectors to the upside.
Weighing on the tech sector, down 0.48%, were chipmakers as the Philadelphia semiconductor index dropped 1.92%, led by a 7.67% tumble in shares of Nvidia as the biggest weight on the S&P 500, and a 2.99% fall in Advanced Micro Devices after the United States imposed an export ban on some top AI chips to China.
Other economic data showed a further easing in price pressures, while manufacturing grew steadily in August, thanks to a rebound in employment and new orders.
Traders expect a 73.1% chance of a third straight 75 basis points increase in rates in September and expect it to peak around 3.993% in March 2023.
The expected path of Fed rate hikes has increased worry the central bank could potentially make a policy mistake and raise rates too high, tilting the economy into a recession, even if inflation shows signs of abating.
Investors have also become more concerned about corporate earnings in a rising rate environment that has also stoked a rally in the U.S. dollar. Hormel Foods Corp fell 6.56% after the packaged foods maker cut its full-year profit forecast.
Volume on U.S. exchanges was 11.19 billion shares, compared with the 10.51 billion average for the full session over the last 20 trading days.
Declining issues outnumbered advancing ones on the NYSE by a 2.82-to-1 ratio; on Nasdaq, a 1.96-to-1 ratio favored decliners.
The S&P 500 posted one new 52-week high and 35 new lows; the Nasdaq Composite recorded 29 new highs and 356 new lows.
(Reporting by Chuck Mikolajczak; additional reporting by Caroline Valetkevitch; editing by Jonathan Oatis) | NVDA |
https://finnhub.io/api/news?id=c95c3586b23842bd39c952173ca98e45171dfb60bfb8019871461ecab0977061 | NVIDIA Corp. stock falls Thursday, underperforms market | Shares of NVIDIA Corp. shed 7.67% to $139.37 Thursday, on what proved to be an all-around positive trading session for the stock market, with the S&P 500... | 2022-09-01T10:11:00 | MarketWatch | Shares of NVIDIA Corp.
NVDA,
+0.37%
shed 7.67% to $139.37 Thursday, on what proved to be an all-around positive trading session for the stock market, with the S&P 500 Index
SPX,
-0.53%
rising 0.30% to 3,966.85 and the Dow Jones Industrial Average
DJIA,
-0.43%
rising 0.46% to 31,656.42. This was the stock's fifth consecutive day of losses. NVIDIA Corp. closed $207.10 short of its 52-week high ($346.47), which the company achieved on November 22nd.
The stock underperformed when compared to some of its competitors Thursday, as Microsoft Corp.
MSFT,
+0.34%
fell 0.41% to $260.40, Intel Corp.
INTC,
+1.14%
fell 0.50% to $31.76, and Texas Instruments Inc.
TXN,
-1.96%
rose 0.58% to $166.16. Trading volume (117.5 M) eclipsed its 50-day average volume of 52.1 M.
Editor's Note: This story was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones and FactSet. See our market data terms of use. | NVDA |
https://finnhub.io/api/news?id=2b1fbb6556706c7c0f5ae5f9e1febe7f5a6aaaa3a9f52675a5216cc197f9f0a1 | Nvidia's 'China Syndrome': Is the stock melting down? | Like the nuclear reactor in the 1979 film "The China Syndrome," Nvidia Corp.'s share price and sales forecast have been melting down, and a sales ban of... | 2022-09-01T09:32:00 | MarketWatch | Like the nuclear reactor in the 1979 film “The China Syndrome,” Nvidia Corp.’s share price and sales forecast have been melting down, and a sales ban of artificial-intelligence chips to China is the latest to add to the temperature.
Nvidia
NVDA,
At a 52.6% plummet, Nvidia is 2022’s worst-performing chip stock out of the 30 that make up the PHLX Semiconductor Index
SOX,
Nvidia stock’s move on Thursday arrived after the chip maker disclosed in a Securities and Exchange Commission filing late Wednesday that U.S. regulators are imposing “a new license requirement, effective immediately, for any future export to China (including Hong Kong) and Russia of the company’s A100 and forthcoming H100 integrated circuits. DGX or any other systems which incorporate A100 or H100 integrated circuits and the A100X are also covered by the new license requirement.”
Full news: Nvidia stock fall after U.S. moves to restrict its data-center sales in China
Analysts already debated whether Nvidia was in the clear after the chip maker cut its outlook not for the first, not for the second, but for the third time in as many months. Now, for the fourth time this year, Nvidia is suggesting to analysts that the revenue forecast could still be off.
The near-term effect: Roughly $400 million in expected third-quarter revenue from China could be at risk. At last check, analysts surveyed by FactSet were forecasting annual revenue, on average, of $28.09 billion, a far cry from the $33.35 billion expected at the end of July, and the $34.54 billion estimate at the end of February. Now, analysts are forced to consider whether they should lower their targets again.
Read: Chip stocks could plunge another 25% as ‘we are entering the worst semiconductor downturn in a decade,’ analyst says
“It feels prudent to take the impacted China revenues out of our Nvidia numbers,” said Bernstein analyst Stacy Rasgon in a note titled, “China syndrome?”
“The China Syndrome” depicted a nuclear reactor that would theoretically start burning its way to other side the earth, i.e., China. The previously little-known term quickly found its way into the American lexicon as the film made its debut on March 16, 1979, less than two weeks before the accident at the Three Mile Island nuclear power plant near Middletown, Pa.
Rasgon acknowledged that the company is working on alternatives and has expressed seeking licenses for nonmilitary customers, but he said the timing and impact of these remedies, however, is unclear. The new cut is “not trivial but not an insurmountable blow either, though of course it is clearly an incremental negative as the business may be permanently impaired,” he said.
Rasgon also noted that some of Advanced Micro Devices Inc.’s
AMD,
The effects of the ban could last well beyond the current quarter, though. Morgan Stanley analyst Joseph Moore said he expects regulators to take 18 to 24 months to determine the total scope of products affected by the ban, and Nvidia stands to lose at least $2 billion in 2023 revenue based on the known restrictions even with a forecast for weak data-center demand from China.
“We don’t know the broader ramifications of the restrictions, but the specific restrictions on A100 and H100 (basically training products introduced last 3 years) would say that this impacts new products,” wrote Moore, who has an in-line rating and a $182 price target on Nvidia. “We would guess that this is a restriction related to AI, so we wouldn’t expect ramifications for non-AI chips, but we don’t know if the restriction is just GPUs, vs. custom AI ASICs or specialty chips such as Intel’s
INTC,
In-depth: Chip stocks tanked as pandemic demand for electronics slumped, but there are still some winners
The restrictions also could cause problems beyond Nvidia. Citi Research analyst Atif Malik wrote that “we see an escalation in U.S. semiconductor restrictions to China and increased volatility for the semiconductors and equipment group,” while taking Nvidia off the firm’s positive “catalyst watch,” which had just been instituted on Friday.
Mizuho analyst Jordan Klein said he senses that “negativity will spread broadly across Semis as to what restrictions could come next.”
This all comes ahead of Nvidia’s big GTC conference that begins Sept. 19, where the company is expected to unveil its next generation “Lovelace” chip architecture to replace the now two-year old “Ampere” architecture during a consumer tech slump. In fact, Nvidia’s recent $1.22 billion inventory charge went to clear out a lot of that old inventory before the “Lovelace” launch.
Nvidia stock was also the most actively traded on the S&P 500 index
SPX,
Of the 44 analysts who cover Nvidia, 35 have buy-grade ratings, eight have sell ratings, and one has a sell rating. Of those, six lowered their price targets on the stock, resulting in an average target price of $210, down from $237.50 from a month ago. | NVDA |
https://finnhub.io/api/news?id=11bfd80d98ad891ea158d0ee1762873d014066bd77f52cdc7d96bf542786125f | Stocks slide, dollar soars as September starts stormy | September kicked off on astormy note on Thursday, as persistent worries about risingglobal interest rates and recessions hounded stocks, bonds andoil prices, and vaulted the U.S. dollar to a... | September 1, 2022 | 2022-09-01T09:31:03 | Finnhub | NVDA
(Updates prices, adds quote)
* Dollar hits 24-year high against yen; euro, sterling slide
* MSCI world stock index falls for fifth straight day
* US S&P 500 recover to finish higher, Europe down over 1%, Nikkei down 1.5%
* Industrial metals suffer heavy falls
* U.S. yields climb, oil prices dip
* Fed, ECB expected to hike rates aggressively in September
NEW YORK, Sept 1 (Reuters) - September kicked off on a stormy note on Thursday, as persistent worries about rising global interest rates and recessions hounded stocks, bonds and oil prices, and vaulted the U.S. dollar to a 24-year high against the yen.
Indeed, data released early Thursday that showed U.S. manufacturing grew steadily in August, as employment and new orders rebounded, was not welcomed by investors, who worried a strong economy strengthens the case for the Federal Reserve to keep raising interest rates in the next few months.
Investors fear that continued monetary policy tightening by central banks in the United States and Europe would scupper the two regional economies, and trigger a recession.
"The US data this week has suggested the Fed still has a lot of work to do to reduce demand sufficiently to bring inflation down," analysts at ANZ Bank said in a note to clients.
All eyes are now on U.S. August nonfarm payroll data due on Friday. Analysts expect 285,000 jobs were added last month, while unemployment hovered at 3.5%. Investors may not like a strong number if it supports the basis for a continuation of aggressive rate hikes, which could further boost the U.S. dollar.
After dropping over a percent earlier in the day, U.S. stocks reversed by the end of the session to eke out modest gains. The U.S. S&P 500 index climbed 0.3%, the Dow Jones Industrial Average rose 0.5%, while the Nasdaq Composite finished down 0.3%.
Europe's STOXX share index of 600 companies slid 1.8%, and MSCI's main world stocks index lost 0.8% to stand at its lowest since mid-July, while Europe's government bond markets saw more selling after their worst monthly rout in decades.
The bearishness was being fed by the possibility that the European Central Bank will raise its policy rate by a record 75 basis points next week, following Wednesday's record high inflation reading.
Heavy shelling at Ukraine's giant Zaporizhzhia nuclear plant rattled nerves, too. Russia had shut its main gas pipe to Europe for maintenance, Washington ordered Nvidia Corp to stop selling high-tech chips to China, while veteran investor Jeremy Grantham warned of an "epic finale" to the stock market "superbubble" inflated by years of cheap money.
"The whole world is now fixated on the growth-reducing implications of inflation, rates, and wartime issues such as the energy squeeze," Grantham said.
Add to that COVID-19 in China, food and energy crises, demographics and climate change and "the outlook is far grimmer than could have been foreseen," he added.
The dive for safety saw the dollar advance to a new 24-year high of 140.21 yen in currency markets as investors braced for higher U.S. rates, while expecting anchored Japanese rates to go nowhere anytime soon.
The euro tumbled 1% against a surging dollar to $0.99435, sterling fell 0.7% to $1.15385, while the risk-sensitive Australian and New Zealand dollars drooped to their lowest levels since July.
Hawkish Fed expectations saw Treasury yields hit fresh highs. The yield on benchmark two-year notes jumped to 3.5510% to the highest since late 2007, while the yield on 10-year bonds rose to a high of 3.2970%.
Bets on a bumper ECB move next week were gaining traction, too. Euro zone money markets were now pricing in a roughly 80% chance of an unprecedented 75 basis point hike, up from 50% earlier in the week.
Benchmark German Bund yields, which are a key driver of borrowing costs, went above 1.63% before pulling back to 1.57%. Italy's 10-year bond yield climbed to its highest since mid-June at 4% at one point, and the closely watched gap between German and Italian bond yields expanded to its widest since late July.
"The ECB's September 8th meeting is still a close call, but this latest data will likely be enough to tip even the centrist members towards a 75 basis point hike," Mizuho analysts said.
HEAVY METALS
Overnight, Cleveland Fed President Loretta Mester said the U.S. central bank would need to boost interest rates somewhat above 4% by early next year, and hold them there in order to bring inflation back down to the Fed's goal. She also warned that the risks of recession over the next year or two had moved up.
Credit rating agencies were dishing out warnings as well. Moody's slashed its forecast for the world's top 20 economies to 2.5% growth from 3.1%, while Fitch acknowledged the euro zone was now set for recession.
"A full shutoff of Russian pipeline gas to the EU increasingly looks like a reasonable assumption," Fitch's Brian Coulton said, adding that the hit to growth already seen meant a recession was clearly starting.
Asian stocks slid overnight as well as investors there also sold everything risky that was not nailed down.
Japan's Nikkei skidded 1.5% and Hong Kong's Hang Seng index fell 1.8%, while Chinese blue-chips ended down 0.9%, having been anchored earlier in the session by hopes for more economic stimulus from Beijing.
Regional purchasing managers' indexes from South Korea, Japan and China on Thursday had all pointed to slowing global economic activity as rising interest rates, high inflation, the war in Ukraine and China's COVID curbs took a heavy toll.
"August has been a terrible month for balance fund investors with no diversification gains from holding a portfolio of equities and bonds," Rodrigo Catril, senior FX strategist at National Australia Bank, said in a note to clients.
"Month end yields no surprises, but rather an extension of the major themes seen during August with further increases in core global bond yields and weaker equities."
In the main commodity markets, Brent crude declined 3.9% to $91.95 per barrel, as reports of new COVID-19 lockdown measures in China added to concerns about softening demand. U.S. crude fell 3.7% to $86.27 a barrel, although European gas prices did provide some relief as they fell back 4% as markets got used to Russia's supply cut.
Gold fell 0.9% to $1,695.0219 an ounce , but industrial metals all took a heavy pounding with tin down 8% , zinc down 5.3% and copper down 1.75%.
(Additional reporting by Reporting by Stella Qiu in Sydney; Editing by Kirsten Donovan and Jonathan Oatis) | NVDA |
https://finnhub.io/api/news?id=503481f7f7f3bfbddd8089e6adf3da6ec12871fecf3cfba9f6ad5ca7b0bb9ffd | New U.S. curbs on sales of Nvidia AI chips to China spark selloff | New restrictions on exports of cutting-edge chips from Nvidia Corp to China have signaled an escalation of the U.S. crackdown on Beijing's technological prowess and alarmed investors already worried about an industry downturn. | 2022-09-01T09:22:20 | Reuters | New U.S. curbs on sales of Nvidia AI chips to China spark selloff
Sept 1 (Reuters) - New restrictions on exports of cutting-edge chips from Nvidia Corp (NVDA.O) to China have signaled an escalation of the U.S. crackdown on Beijing's technological prowess and alarmed investors already worried about an industry downturn.
Shares of Nvidia fell 11% to $133.46 on Thursday, wiping out more than $40 billion in market value and dragging the Philadelphia SE Semiconductor Index (.SOX) down by more than 4%.
The U.S. move to restrict exports of two of Nvidia's top computing chips for artificial intelligence - the H100 and A100 - to China could hurt the company's business in the key market, according to a filing on Wednesday. read more
The action by Washington comes as tensions rise over access to advanced chip technology and the future of Taiwan, where Nvidia and nearly all other big semiconductor companies source their chips from.
"On the surface, it looks like the U.S. government is looking to refrain from sales of next generation advanced chips, 7 nanometers and below, specifically for military end use in China," said CFRA Research analyst Angelo Zino.
Rival Advanced Micro Devices Inc (AMD.O) was also asked on Wednesday to stop AI chip exports to China.
The Nvidia and AMD chips targeted by Washington are used for AI and machine learning applications, particularly building training modules for tasks such as natural language processing.
These modules could be also be useful for militaries in modeling bomb simulations and designing weapons.
Market watchers say the restrictions are likely to hit a swathe of Chinese tech companies including Alibaba Group Holding Ltd (9988.HK), Tencent Holdings Ltd (0700.HK), Baidu Inc , and Huawei Technologies Co Ltd [RIC:RIC:HWT.UL].
Nvidia also said on Wednesday that the move could interfere with the development of its flagship H100 chip, which is expected to ship later this year.
On Thursday, it announced the U.S. government has allowed exports and tech transfer needed to complete the development of the H100 chip. U.S. officials have also authorized the company to perform exports needed to provide support for U.S. customers of A100 through March 1, 2023.
The company has also been allowed to fulfill orders of the chips via its Hong Kong facility through Sept. 1, 2023. (https://bit.ly/3Q5YfhR)
Chinese customers are still required to obtain licenses from the U.S. government for the technology, a spokesperson for Nvidia said.
AMD did not respond to a request for comment on whether it received a similar authorization.
Our Standards: The Thomson Reuters Trust Principles. | NVDA |
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https://finnhub.io/api/news?id=d4dd272d22b6c58ac1e24cccf12e63cd8920919dacb3c9aaed889ce97af0f822 | Marketmind: Financial conditions noose tightens | A look at the day ahead in Asian markets from Jamie McGeever ... | September 1, 2022 | 2022-09-01T09:13:02 | Finnhub | NVDA
The new month has not signalled a new dawn for financial markets, and the noose of tightening financial conditions - a soaring dollar, rising bond yields, aggressive expectations for central bank policy rates - is choking investor sentiment even more.
U.S. manufacturing data was the catalyst for Thursday's dollar surge to a fresh 20-year high, the two-year U.S. Treasury yield rising above 3.55% for the first time since 2007, and money markets pushing the Fed's implied 'terminal rate' close to 4.0%.
GRAPHIC: US implied rates (
Investors in Asia in particular will have noted the dollar's rise above 140.00 yen, a new 24-year peak. Given the polar opposite U.S. and Japanese monetary policy stances, few would bet against the dollar soon testing 150 yen for the first time in over 30 years.
Wall Street snapped a four-day losing streak on Thursday, but the pullback was shallow.
Attention will focus squarely on the U.S. non-farm payrolls data for August, and a strong report will likely intensify the view that rates are headed higher for longer.
Economists expect the pace of job growth to slow to 300,000 from over 500,000 in July, and the unemployment rate to hold steady at a historically low 3.5%. Anything in that ballpark could firm up expectations of a third consecutive 75 basis point rate hike later this month.
On the political front, U.S.-China relations could also drag on investor confidence Friday. On top of long-standing tensions over Taiwan, Washington has imposed new restrictions on exports of cutting-edge chips from Nvidia Corp to China.
Nvidia shares slumped nearly 10% Thursday.
Key developments that should provide more direction to markets on Friday:
S Korea inflation (July)
Japan money supply (Aug)
US jobs report (Aug)
(Reporting by Jamie McGeever in Orlando, Florida; Editing by Andrea Ricci) | NVDA |
https://finnhub.io/api/news?id=cf813d0a09d2f056735316a1d39553b5c6e8110898896a9e8fda4c51bb9d7cf5 | MORNING BID-Financial conditions noose tightens | A look at the day ahead in Asian marketsfrom Jamie McGeeverThe new month has not signalled a new dawn for financialmarkets, and the noose of tightening financial conditions - asoaring dollar,... | September 1, 2022 | 2022-09-01T09:09:43 | Finnhub | NVDA
Sept 1 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever The new month has not signalled a new dawn for financial markets, and the noose of tightening financial conditions - a soaring dollar, rising bond yields, aggressive expectations for central bank policy rates - is choking investor sentiment even more.
U.S. manufacturing data was the catalyst for Thursday's dollar surge to a fresh 20-year high, the two-year U.S. Treasury yield rising above 3.55% for the first time since 2007, and money markets pushing the Fed's implied 'terminal rate' close to 4.0%.
Investors in Asia in particular will have noted the dollar's rise above 140.00 yen, a new 24-year peak. Given the polar opposite U.S. and Japanese monetary policy stances, few would bet against the dollar soon testing 150 yen for the first time in over 30 years.
Wall Street snapped a four-day losing streak on Thursday, but the pullback was shallow.
Attention will focus squarely on the U.S. non-farm payrolls data for August, and a strong report will likely intensify the view that rates are headed higher for longer.
Economists expect the pace of job growth to slow to 300,000 from over 500,000 in July, and the unemployment rate to hold steady at a historically low 3.5%. Anything in that ballpark could firm up expectations of a third consecutive 75 basis point rate hike later this month.
On the political front, U.S.-China relations could also drag on investor confidence Friday. On top of long-standing tensions over Taiwan, Washington has imposed new restrictions on exports of cutting-edge chips from Nvidia Corp to China.
Nvidia shares slumped nearly 10% Thursday.
Key developments that should provide more direction to markets on Friday:
S Korea inflation (July)
Japan money supply (Aug)
US jobs report (Aug)
(Reporting by Jamie McGeever in Orlando, Florida; Editing by Andrea Ricci) | NVDA |
https://finnhub.io/api/news?id=46f9d12c4f1a40b8a88fa7770f3c6c85c247691c6c7a49b3576036d34d0bb3a4 | S&P 500 falls for fifth straight day on rate hike worry | U.S. stocks were lower for afifth straight session on Thursday as the latest signs the labormarket remains robust solidified expectations the FederalReserve will remain aggressive in hiking... | September 1, 2022 | 2022-09-01T07:46:47 | Finnhub | NVDA
(For a Reuters live blog on U.S., UK and European stock markets, click or type LIVE/ in a news window.)
* U.S. manufacturing sector steady in August - ISM
* All eyes on August nonfarm payrolls report on Friday
* Nvidia, AMD fall after U.S. export ban on AI chips to China
* Dow up 0.05%, S&P 500 down 0.24%, Nasdaq down 0.98%
NEW YORK, Sept 1 (Reuters) - U.S. stocks were lower for a fifth straight session on Thursday as the latest signs the labor market remains robust solidified expectations the Federal Reserve will remain aggressive in hiking interest rates even at the risk of a potential recession.
Data showed weekly jobless claims fell more than expected to a two-month low last week and layoffs dropped in August, giving the Fed a cushion to continue raising rates to slow the labor market. Investors now await the monthly nonfarm payrolls report on Friday for more evidence on the labor market.
Economists polled by Reuters see a jobs increase of 300,000, while Wells Fargo economist Jay Bryson revised his forecast for nonfarm payrolls to 375,000 from 325,000 and Morgan Stanley economist Ellen Zentner expects August payrolls of 350,000.
Stocks have stumbled more than 6% during the five-session decline, its longest losing streak in about six weeks, which began after Fed Chair Jerome Powell signaled on Friday the central bank will remain aggressive raising rates to fight inflation even after consecutive hikes of 75 basis points, a message echoed by other Fed officials in recent days.
"Its hard to believe the marketplace was that convinced that somehow the Fed was going to magically change course here, the genesis of the whole thing is the Powell speech," said Stephen Massocca, senior vice president at Wedbush Securities in San Francisco.
"Part of this might have just been that we had this equally surprising rally in July and if that rally was based off the notion the Fed was going to change course quickly ... now we could argue the rally that took place in July seemed to be based on some misconceived notion that got put to bed by the speech."
The Dow Jones Industrial Average rose 16.36 points, or 0.05%, to 31,526.79; the S&P 500 lost 9.45 points, or 0.24%, to 3,945.55; and the Nasdaq Composite dropped 115.88 points, or 0.98%, to 11,700.32.
As the 10-year Treasury yield rose to its highest level since June 21, technology and growth stocks such as Microsoft, down 1.30%, and Tesla, off 0.66%, were among the biggest drags on the benchmark S&P index.
Also weighing on the tech sector were chipmakers as the Philadelphia semiconductor index dropped 2.69%, led by a 8.92% drop in shares of Nvidia as the biggest weight on the S&P 500 and a 4.44% fall in Advanced Micro Devices after the United States imposed an export ban on some top AI chips to China.
Other economic data showed a further easing in price pressures, while manufacturing grew steadily in August, thanks to a rebound in employment and new orders.
Traders expect a 77.1% chance of a third straight 75 basis points increase in rates in September and expect it to peak around 3.977% in March 2023.
Investors are concerned the Fed could potentially make a policy mistake and raise rates too high, tilting the economy into a recession, even if inflation shows signs of abating.
Reflecting the defensive tone, Healthcare, consumer staples andutilitieslities were the leading sectors to the upside.
Investors have also become more concerned about corporate earnings in a rising rate environment that has also stoked a rally in the U.S. dollar. Hormel Foods Corp fell 7.16% after the packaged foods maker cut its full-year profit forecast.
Declining issues outnumbered advancing ones on the NYSE by a 3.92-to-1 ratio; on Nasdaq, a 2.60-to-1 ratio favored decliners.
The S&P 500 posted one new 52-week high and 35 new lows; the Nasdaq Composite recorded 21 new highs and 337 new lows.
(Reporting by Chuck Mikolajczak; editing by Jonathan Oatis) | NVDA |
https://finnhub.io/api/news?id=ab1e07c73a82e28a5052578ee238e775e2297264688fa867830defb8e9249078 | Nvidia: Short-Term Headwinds, Long-Term Opportunity | Nvidia is a technology leader in high-performance GPUs for Gaming. Read why NVDA's Q2 weren't as bad as many analysts had expected. | 2022-09-01T07:10:40 | SeekingAlpha | Nvidia: Short-Term Headwinds, Long-Term Opportunity
Summary
- Nvidia is a technology leader in high-performance GPUs for Gaming.
- The company generated poor financial results for the second quarter, FY23, but they weren't as bad as many analysts had expected.
- Nvidia is facing short-term headwinds from lower gaming demand and the "crypto winter."
- The business is poised to ride long-term growth trends across Gaming, AI, Self-Driving Cars, Data Centers, and much more.
Nvidia (NASDAQ:NVDA) is a technology powerhouse that provides specialist building blocks for the gaming, data center, and even the AI industry. The company's share price has been butchered and is now down 54% from its all-time highs, which were in November 2021. Its most recent decline was driven by poor earnings results for the second quarter, but it still beat analyst expectations as they weren't as bad as expected. Nvidia is facing short-term headwinds, but in my opinion, these do not impact the long-term secular growth trends. In this post, I'm going to filter the signal from the noise and breakdown of Nvidia's Q2 earnings report and its valuation, let's dive in.
Filter the Signal from the Noise
Nvidia reported mixed financial results for the second quarter FY23. Revenue was $6.7 billion which was up just 3% year-over-year and down 19% Q/Q. This may seem terrible at first glance, but when we dive under the hood, it's clear the reasons why. Gaming revenue was $2.04 billion, which declined by an eye-watering 33% year-over-year. Again, this was driven by a combination of factors such as the tepid consumer demand for gaming which also showed up in Microsoft's (MSFT) earnings for the Xbox. Taking a step back, it's clear the gaming market is cyclical and had an unexpected boom over the lockdown of 2020, where the gaming market increased by 23% in value, which was the fastest rate in over a decade. So now we are just seeing a correction in demand to "normal levels", but the long-term secular trend is still clear. According to a study by PwC, the gaming market is forecasted to grow at a rapid 9% Compounded Annual Growth Rate [CAGR] between 2021 and 2026, reaching ~$321 billion by the end of the period.
Due to the secular growth trends, I expect Nvidia's gaming revenue to start to grow again longer term. Intel (INTC) has the largest market share in the Graphical Processing Unit (GPU) industry with ~60% market share. But Nvidia and AMD are leading in "high performance" GPUs which are necessary for gaming. Diving into the chart below, it's clear to see Nvidia [light blue] had just 15% of the overall GPU market in Q1,21 but by Q1,22, the company had a substantial 21% of the market, while Intel's market share got squeezed.
The second major factor which caused a large decline in Nvidia's gaming revenue was the "Crypto correction". It has been wildly known that a portion of Nvidia's GPUs are bought and used for Bitcoin mining. But with the price of Bitcoin plummeting, it is just not economical to mine bitcoin for most people. But this cyclical trend is not something new for Nvidia, and we saw the same boom in "Gaming" revenue during the first crypto bull market of 2017. A slight difference this time is many miners are now using ASICs or (application-specific integrated circuits). In addition, Ethereum is switching to a proof-of-stake model, as with the Proof-of-Work model, the cryptocurrency uses as much power as the Netherlands [yes, the country!] to validate its blocks.
Therefore, if we combine, a boom in gaming and a boom in crypto at the top of the cycle, we are now just seeing the cycle reverse. I expect the gaming market to rebound and continue to grow strong following the secular trend. I believe the crypto revenue may not bounce back as high due to the aforementioned reasons. But there are other positive secular trends such as the growth in video editing, driven by the popularity of YouTube and video-based social media apps, which also require high-powered GPUs.
Nvidia's management has used this decline to execute inventory adjustments and "pricing programs" with channel partners. My best guess is these are a series of discounts to help sell old inventory, which will impact the company's margins, but it would be better than holding expensive inventory. The company has also announced a series of Gaming laptops and Monitors, which really will help expand the company's total addressable market.
As someone who runs a large YouTube channel [Motivation 2 Invest] where I interview CEOs and Hedge Fund Managers, video editing is a prime purpose I need high powered computing for. My extensive research online brought me to Nvidia GPUs which are usually sold inside high-powered $3000+ laptops such as the Dell XPS. But with Nvidia's venture into laptops, it now may make more sense to purchase directly from Nvidia, which would effectively enable them to capture more value from its products. After all, the most complex and important parts of any PC are the GPU and CPU, the other components can generally be purchased from many manufacturers cheaply.
Data Center Boom
Nvidia is not just a gaming company, its Data Center segment is rapidly growing with strong industry tailwinds. Nvidia generated $3.81 billion in Data Center revenue for Q2, which was up just 1% Q/Q but increased by a blistering 61% year-over-year. The recent quarter-over-quarter decline was down to "supply chain disruptions," according to management. But in my opinion, this may also have been driven by a short-term slowdown in IT spending due to the macroeconomic conditions [discussed in the risk section]. However, it's great to remember the long-term secular trend is up. The Data Center market is forecasted to grow at a blistering 21.98% CAGR between 2021 and 2026. Over this period, an extra $615 billion is expected to be added to the market value. Large companies are "digitally transforming" their IT operations to the cloud. This is for a few reasons which include more "agility" and the ability to lower costs long term, as you only pay for the computing power you need. The boom in data centers is already showing up across the board in other companies' earnings reports, such as Amazon (AMZN), where AWS is its fastest growing and most profitable segment.
Nvidia's expertise in Artificial intelligence is also another major advantage, given the AI industry is forecasted to grow by a blistering 38% CAGR between 2022 and 2030.
Metaverse?
Professional Visualization revenue for Q2 was $496 million, which did decline slightly by 4% year-over-year and 20% over the prior quarter. This decline was driven by "macroeconomic headwinds" and slowing enterprise demand. Management expects these trends to persist in the third quarter, which isn't a great sign. However, there were some positives in the quarter, which included Nvidia's expanded partnership with Siemens to enable the "industrial Metaverse" and increase the adoption of AI digital twins. This is an amazing technology that enables entire manufacturing plants to be replicated digitally, and thus, new layouts and adjustments can be made virtually before implementing inside the real factory. For example, Amazon Robotics is using Nvidia's technology to build AI digital twins of its warehouses.
Nvidia also announced its Omniverse Avatar Cloud Engine, which makes it easier to build "lifelike" virtual assistants and "digital humans" powered by AI.
The Metaverse industry is forecasted to grow at a blistering 39.1% CAGR between 2022 and 2030, reaching a value of $824.53 billion by the end of the period. Nvidia is in prime position to ride this trend as a leader in both gaming, visualization and AI. The company even co-founded the Metaverse Standards Forum, which is basically like the declaration of independence but for the Metaverse. Nvidia even created a "Virtual CEO" for its GTC keynote, which was switched seamlessly with the real person and the majority of people didn't even notice.
Automotive Revenue Growth
Nvidia's automotive segment generated $220 million in the second quarter and popped by 45% year-over-year and a rapid 59% over the prior quarter. This is a small but fast-growing segment with a huge market opportunity across self-driving vehicles. Nvidia's hardware for self-driving cars called "DRIVE Orin" is expected to be rolled about by partners such as NIO (NIO), Li Auto (LI), JIDU, and many more. Pony.ai even plans to use the hardware for its range of self-driving trucks and robotaxis.
Profitability?
Nvidia has achieved an extremely high gross margin historically of over 65%, however, this has been compressed in the most recent quarter to 43.7%. The good news is management believes its "long-term gross margin profile remains intact".
Nvidia's operating expenses popped by a substantial 36% year-over-year, which was driven by a one-off expense of $1.35 billion related to the acquisition of Arm, which didn't go through. Nvidia also increased the salaries of its employees (which I do not think is a bad thing long term) and also continued to invest heavily into R&D for new products. The good news is operating expenses actually decreased by 32% quarter-over-quarter which is a positive sign.
Despite declining Net income, Earnings per share was $0.26 in the second quarter, FY23, which was $0.06 better than analysts had expected.
Share Buybacks Continue
Nvidia has returned $5.5 billion to shareholders in the form of buybacks and cash dividends in the first half of fiscal 2023. The company plans to "continue stock buybacks" as the CFO foresees "strong cash generation and future growth".
Nvidia has a solid balance sheet with $17 billion in cash, cash equivalents and short-term investments, in addition, to total debt of $11.7 billion.
Moving Forward
Management expects Gaming and Visualization revenue to continue to decline sequentially next quarter as channel partners "reduce inventory levels" to "align with current demand". But the company is forecasting solid growth in its Data Center and Automotive segments.
For Q3,23, Revenue is forecasted to be ~$5.9 billion, plus or minus 2%, with a return to strong gross margins of over 62%, which is a positive.
GAAP operating expenses are forecasted to be $2.59 billion, which would represent a further ~8% increase quarter-over-quarter.
Advanced Valuation
In order to value Nvidia, I have plugged the latest financials into my advanced valuation model, which uses the discounted cash flow method of valuation. I have slashed my revenue growth forecast from previous rates of 30% to 40% to a 10% decline in revenue for next year, followed by 22% revenue growth compounded over the next 2 to 5 years. This valuation is based upon a rebound in cyclical gaming revenue and continued growth in the Data Center and Automotive segments.
I have also forecasted a 45% operating margin over the next 8 years, as the company continues to expand and benefits from greater economies of scale. This also includes an adjustment for the company's R&D expenses which I have capitalized.
Given these factors, I get a fair value of $140 per share, the stock is trading at $150 at the time of writing and is thus ~7% overvalued.
As an extra data point, Nvidia is trading at a Price to Sales Ratio [FWD] = 14.23, which is ~3% below its five-year average. Therefore, overall, I deem the stock to be "fairly valued" as the bad news for the next quarter has already been priced in.
Risks
Sales stopped in China
Nvidia has recently received a notice from the U.S. government, which has imposed a new license requirement to stop the sale of its A100 and new H100 Integrated circuits in China. This is for national security reasons as it believes the products may have a "military end user" in China and Russia. This makes sense from a security perspective, but it also means a $400 million hit to revenues that were expected to come from China in Q3,23.
Lower IT spend/Recession
A Recession has also been forecasted due to the rising interest rate and high inflation environment, which is expected to further impact consumer sentiment and reduce spending.
Final Thoughts
Nvidia is a leader in high-performance GPUs and is a technology powerhouse. The company's financials are coming off a strong high last year and the cyclical gaming and crypto industry has taken a major hit. However, the long-term trends are still intact and Nvidia's innovation is still strong. The majority of the bad news next quarter is already baked into the stock, thus, for long-term investors, the recent panic is mostly noise.
This article was written by
Analyst’s Disclosure: I/we have a beneficial long position in the shares of NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Comments (50)
Including his understanding of long term semi conductor demand ...or lack of.
And boy is the long term 5 year demand dying rapidly. I am really close to semi conductor manufacturing and supply and I know the demand forecast has just been cut in half for 2024 25. Good luck anyone selling modern snake oils
You are just not exposed to how valuations are set, which is not in your control.
Semi stocks have not corrected 50% normalized to demand. They been pushed up by 300% and still over 200% valuation.
Typically things get undervalued in a downturn, but you don't need to react now. Just help validate my hypothesis as we go
Nvidia q2 @ 83.2% = 8,634,186 Nvidia game revenue $2.042 B / JPRs q1 unit volume appears to be $236 per unit and rolling R&D and MG&A back into net JPR gross is $370. I have on channel supply data $375.34 at x3 margin over cost (TMSC price to Nvidia) before pulling R&D and MG&A. Note I don't believe Nvidia price was ever x3 over cost however played with x3.63 as price over cost the Vivek Arya mystical magical $482 gross for RTX 30x0 and I do not believe that for this product line. x3.63 would mean a $684 GA102, a $430 GA 104, a $300 GA106/104 and I dismiss as not competitive.I have AMD N6x dGPU full line gross in q2 at $165.96 on all the down bin run end. AMD does not like less $180 and in q1 gross was at $257.On Nvidia channel supply data I'm getting gross $250.27 at * 1.64 margin over TSMC cost : price and $183.43 on x2 over price before the TSMC 20% 2021 price increase. $263 net is my q1 gross but less R&D and MGA = $159.99 net for 22,500,527 q1 units that is 91% more than JPRs q1. The first question is the price to the customer which on Professional Visualization side is easy because there are Nvidia board MSRPs for determining Average Weighed Price from which to pull costs but not for gaming component sales direct to board houses.My TSMC price to Nvidia is based on TSMC MC x2 = MR = P to Nvidia determined from AMD total revenue total cost assessment for processors. Nvidia price then to the board house is range x 1.5 to x 2 over TSMC price to Nvidia the basic profit maximization rule.q2 Pro Vis $1K AWP = $593.36 net < 44% from q1 same as gaming
q1 Pro Vis $1K AWP = $1150.13 netMy suspicion is on Nvidia q2 2022 gaming revenue down 44% that Nvidia pulled an Intel sales discount called Buy 1 Get 1 or Buy 2 Get 1?At * 1.64 margin over component cost (TSMC price to Nvidia) $250.27 sold in q2 12,761,655 gaming dGPUs < R&D < MG&A = net $160 each that points to Buy 2 get 1. And for Pro Visualization Buy 1 Get 1.Looking back JPR has q1 dGPU at 13,400,000 units which I divide by my channel share data;AMD q1 @ 12.4% = 1,659,176
Nvidia q1 @ 87.6% = 11,740,824 but I think it was double.On JPR method my AMD q1 dGPU is at 62.3% of 7,919,007 units fabrication ON CHANNEL SUPPLY with a quarter to go. JPR has AMD q1 dGPU share at 17% for a positive change now at 70% of my q1 7,919,007 units produced supplying through RDNA lll;AMD q1 @ 17% = 2,278,000
Nvidia q1 @ 83 % = 11,122,824JPR Board Association volume smooths from quarter to quarter where AMD production is sporadic and opportunistic swinging from vine-to-vine what fits in any quarter. What product category gets fabricated opportunistically to fill a quarterly production void. Nvidia q2 2022 GPU production by category on channel supply data;Data Center A100 Accelerator = 0.15%
CMP Mining = 0.14%
Pro Visual = 4.86%
Gaming Desktop = 64.85% (68% RTX 30x0 no Pro Vis)
Gaming Mobile = 30.0% (32% RTX 30x0 no pro Vis)q2 is a transition quarter and about cleaning out inventory at run end. The only production is next generation and I don't have the channel data to call that yet although can predict into future production volume from Turing and Ampere.
Puts AD at 11.5 M units for the second half and 13 M to 15 M units per quarter through run end at 94 M units over eight quarters. Which is 19 M units or 25% over what JPR would likely project. If a dGPU slow down can back off to 67 M units.On channel data in relation NVDA financial Camp Marketing places Nvidia GPU production in q2 at,Data Center A100 Accelerator = 1,591,882
CMP Mining = inclusive in data center
Pro Visual = 835,904 units + 54% over q1 = Buy 1 Get 1
Gaming Desktop = 8,672,277 revenue units that's equal to JPRs total
Gaming Mobile = 4,049,378 not counted dGPU by JPR but something else?JPR counts Switch as iGPU my take is Maxwell is past run end = 0
Auto / robotics = 142,834 control modules
Embedded = 964,535Total Revenue Units = 16,296,810
Sales Sacrifice Units = 11,000,000
All up = 27,296,810 Note that 11,000,000 RTX 30x0 for free at a net loss of $1.749 B is the revenue difference for gaming q2 + 5% over q1. In relation 12,721,655 combined RTX 30x0 desktop + mobile revenue units it seems like Buy 1 Get 1 got Nvidia this round.Mike Bruzzone, Camp Marketing
Crypto is gone forever and China was the catalyst for data centers. I am not saying people won't pay a premium over fair valuation, but not 140.
Ask yourself, are things better or worse when Nvidia hit it's last 52 week low of 140? I think it is obvious that things are much, much worse.
Nvidia is great at creating and maintaining some new hype.
Unfortunately they are running out of hypes and facing the reality now.
It is extremely overvalued.
Metaverse hype is a joke. | NVDA |
https://finnhub.io/api/news?id=811c33a84a7fad9b0680e4076fdb4a62d540ff949c2cfbbd723bf48d87da6307 | Chip wreck: Nvidia sinks sector after U.S. restricts China sales | U.S. chip stocks tumbled on Thursday,with the main semiconductor index down more than 3% after Nvidiaand Advanced Micro Devices said U.S. officialstold them to stop exporting cutting-edge... | September 1, 2022 | 2022-09-01T07:02:58 | Finnhub | NVDA
Sept 1 (Reuters) - U.S. chip stocks tumbled on Thursday, with the main semiconductor index down more than 3% after Nvidia and Advanced Micro Devices said U.S. officials told them to stop exporting cutting-edge processors for artificial intelligence to China.
Nvidia's stock plummeted 11%, on track for its biggest one-day percentage drop since 2020, while smaller rival AMD's stock fell almost 6%.
As of mid-day, about $40 billion worth of Nvidia's stock market value had evaporated. The 30 companies making up the Philadelphia semiconductor index lost a combined about $100 billion worth of stock market value.
Traders exchanged over $11 billion worth of Nvidia shares, more than any other stock on Wall Street.
The restricted exports to China of two of Nvidia's top computing chips for artificial intelligence - the H100 and A100 - could impact $400 million in potential sales to China in its current fiscal quarter, the company warned in a filing on Wednesday.
AMD also said U.S. officials told it to stop exporting its top artificial intelligence chip to China, but that it does not believe the new rules will have a material impact on its business.
Washington's ban signals the intensification of a crackdown on China's technological development as tensions simmer over the fate of Taiwan, where components designed by most U.S. chip firms are manufactured.
"We see an escalation in US semiconductor restrictions to China and increased volatility for the semiconductors and equipment group following NVIDIA's update," Citi analyst Atif Malik wrote in a research note. The announcements also come as investors worry that the global chip industry may be heading for its first sales downturn since 2019, as rising interest rates and stuttering economies in the United States and Europe cut into demand for personal computers, smartphones and data center components.
The Philadelphia chip index has now lost almost 16% since mid-August. It is down about 35% in 2022, on track for its worst calendar-year performance since 2009.
(Reporting by Noel Randewich in Oakland, Calif.; Additional reporting by Lance Tupper in New York; Editing by Lisa Shumaker) | NVDA |
https://finnhub.io/api/news?id=21379767fd3b1e9c94ccc644004c6a8e313ac824eba7b3aef43369d6b8da2ccb | Stocks slide, dollar spikes as September starts stormy | September got off to a stormystart on Thursday, as persistent worries about rising globalinterest rates and recessions hounded stocks and bonds and drovethe safe-haven U.S. dollar to a 24-year high... | September 1, 2022 | 2022-09-01T06:10:50 | Finnhub | NVDA
(Updates prices)
* Dollar hits 24-year high against yen; euro, sterling slide
* MSCI world stock index falls for fifth straight day
* US S&P 500 drops 1.3%, Europe down over 1%, Nikkei down 1.5%
* Industrial metals suffer heavy falls
* U.S. yields climb, oil prices dip
* Fed, ECB expected to hike rates aggressively in September
NEW YORK, Sept 1 (Reuters) - September got off to a stormy start on Thursday, as persistent worries about rising global interest rates and recessions hounded stocks and bonds and drove the safe-haven U.S. dollar to a 24-year high against the yen.
Indeed, data released early Thursday that showed U.S. manufacturing grew steadily in August, as employment and new orders rebounded, was not welcomed by investors, who worried a strong economy strengthens the case for the Federal Reserve to keep raising interest rates in the next few months.
Investors fear that continued monetary policy tightening by central banks in the United States and Europe would scupper the two regional economies, and trigger a recession.
The U.S. S&P 500 index slumped 1%, the Dow Jones Industrial Average fell 0.5%, and the Nasdaq Composite tumbled 2.1%.
A 1.8% fall in Europe's STOXX share index of 600 companies helped pushed MSCI's main world stocks index down 1.7% to its lowest since mid-July, while Europe's government bond markets saw more selling after their worst monthly rout in decades.
The bearishness was being fed by the possibility that the European Central Bank will raise its policy rate by a record 75 basis points next week following Wednesday's record high inflation reading.
Heavy shelling at Ukraine's giant Zaporizhzhia nuclear plant rattled nerves, too. Russia had shut its main gas pipe to Europe for maintenance, Washington ordered Nvidia Corp to stop selling high-tech chips to China, while veteran investor Jeremy Grantham warned of an "epic finale" to the stock market "superbubble" inflated by years of cheap money.
"The whole world is now fixated on the growth-reducing implications of inflation, rates, and wartime issues such as the energy squeeze," Grantham said.
Add to that COVID-19 in China, food and energy crises, demographics and climate change and "the outlook is far grimmer than could have been foreseen," he added.
The dive for safety saw the dollar advance to a new 24-year high of 140.21 yen in currency markets as investors braced for higher U.S. rates, while expecting anchored Japanese rates to go nowhere anytime soon.
The euro tumbled 1.1% against a surging dollar to $0.99425, sterling fell 0.7% to $1.15360, while the risk-sensitive Australian and New Zealand dollars drooped to their lowest levels since July.
Hawkish Fed expectations saw Treasury yields hit fresh highs. The yield on benchmark two-year notes jumped to 3.5510% to the highest since late 2007, while the yield on 10-year bonds rose to a high of 3.2970%.
Bets on a bumper ECB move next week were gaining traction, too. Euro zone money markets were now pricing in a roughly 80% chance of an unprecedented 75 basis point hike, up from 50% earlier in the week.
Benchmark German Bund yields, which are a key driver of borrowing costs, went above 1.63% before pulling back to 1.57%. Italy's 10-year bond yield climbed to its highest since mid-June at 4% at one point, and the closely-watched gap between German and Italian bond yields expanded to its widest since late July.
"The ECB's September 8th meeting is still a close call, but this latest data will likely be enough to tip even the centrist members towards a 75 basis point hike," Mizuho analysts said.
HEAVY METALS
Markets are awaiting U.S. non-farm payrolls data on Friday and they may not like a strong number if it supports the basis for a continuation of aggressive rate hikes, which could further boost the U.S. dollar.
Overnight, Cleveland Fed President Loretta Mester said the U.S. central bank would need to boost interest rates somewhat above 4% by early next year and hold them there in order to bring inflation back down to the Fed's goal. She also warned that the risks of recession over the next year or two had moved up.
Credit rating agencies were dishing out warnings as well. Moody's slashed its forecast for the world's top 20 economies to 2.5% growth from 3.1%, while Fitch acknowledged the euro zone was now set for recession.
"A full shut-off of Russian pipeline gas to the EU increasingly looks like a reasonable assumption," Fitch's Brian Coulton said, adding that the hit to growth already seen meant a recession was clearly starting.
Asian stocks slid overnight as well as investors there also sold everything risky that was not nailed down.
Japan's Nikkei skidded 1.5% and Hong Kong's Hang Seng index fell 1.8%, while Chinese blue-chips ended down 0.9% having been anchored earlier in the session by hopes for more economic stimulus from Beijing.
Regional purchasing managers' indexes from South Korea, Japan and China on Thursday had all pointed to slowing global economic activity as rising interest rates, high inflation, the war in Ukraine and China's COVID curbs took a heavy toll.
"August has been a terrible month for balance fund investors with no diversification gains from holding a portfolio of equities and bonds," Rodrigo Catril, senior FX strategist at National Australia Bank, said in a note to clients.
"Month end yields no surprises, but rather an extension of the major themes seen during August with further increases in core global bond yields and weaker equities."
In the main commodity markets, Brent crude declined 3% to $92.67 per barrel, as reports of new COVID-19 lockdown measures in China added to concerns about softening demand. U.S. crude fell 2.9% to $87.01 a barrel, although European gas prices did provide some relief as they fell back 4% as markets got used to Russia's supply cut.
Gold fell 1% to $1,694.58 an ounce , but industrial metals all took a heavy pounding with tin down 8% , zinc down 5.3% and copper down 1.75%.
(Additional reporting by Reporting by Stella Qiu in Sydney; Editing by Kirsten Donovan and Jonathan Oatis) | NVDA |
https://finnhub.io/api/news?id=d92d529996ef9664504218ce1f020f940438ff174abdb59e81788c74c9d0c2d7 | Some of Nvidia’s China Business ‘May Be Permanently Impaired,’ Says Analyst. | Bernstein says the U.S. government’s new export restrictions on Nvidia’s high-end AI products to China could have a lasting negative impact on its business. | 2022-09-01T04:58:00 | MarketWatch | Bernstein believes the U.S. government’s new export restrictions on Nvidia’s high-end artificial-intelligence products to China could have a lasting negative impact on its business.
Late Wednesday, chip maker Nvidia (ticker: NVDA) said in a filing the U.S. government has informed the company it has imposed a new licensing requirement, effective immediately, covering any exports of Nvidia’s A100 and upcoming H100 products to China, including Hong Kong, and Russia. The government “indicated that the new license requirement will address the risk that the covered products may be used in, or diverted to, a ‘military end use’ or ‘military end user’ in China and Russia,” the filing said.
read more
Nvidia’s A100 products are used in data centers for AI, data analytics, and high-performance computing applications, according to the company’s website.
In addition, Nvidia said in Wednesday’s filing, it doesn’t sell any products to Russia, but noted its current outlook for the third fiscal quarter had included about $400 million in potential sales to China that could be affected by the new license requirement.
On Thursday, Bernstein analyst Stacy Rasgon reaffirmed his Outperform rating on Nvidia stock, but lowered his price target to $180 from $210, citing the new requirements from the government.
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The news “is clearly an incremental negative as the business may be permanently impaired,” he wrote. “It feels prudent to take the impacted China revenue out of our Nvidia numbers.”
Nvidia stock is down 10.4% to $135.23 in Thursday trading.
The analyst noted Nvidia is working on possibly selling less-powerful products that could serve the affected customers in China.
Nvidia said in an emailed statement on Wednesday: “We are working with our customers in China to satisfy their planned or future purchases with alternative products and may seek licenses where replacements aren’t sufficient.”
In the report, Rasgon lowered his fiscal 2023 earnings estimate for Nvidia to $3.20 a share from $3.39.
Nvidia’s stock has declined by about 54% so far this year, versus the 35% drop in the iShares Semiconductor ETF (SOXX), which tracks the performance of the ICE Semiconductor Index.
Write to Tae Kim at [email protected] | NVDA |
https://finnhub.io/api/news?id=50031de2daa2c86f91509cabe02dccba2589e3ac5ca216db604e084ff1a24cdf | Why Are Chip Stocks NVDA, AMD, INTC Down Today? | Chips stocks aren't doing so hot on Thursday after the U.S. reportedly introduced new bans on sales to China and Russia. | 2022-09-01T04:56:00 | InvestorPlace | Chips stocks aren’t doing so hot on Thursday after the U.S. reportedly introduced new bans on sales to China and Russia.
This ban keeps chipmakers from selling certain types of products to China and Russia. Why? The idea here is that types of chips included in the ban could be used by the militaries of those countries. The U.S. doesn’t want that to happen.
Nvidia (NASDAQ:NVDA) spoke about the matter in a filing with the U.S. Securities and Exchange Commission (SEC). The chipmaker warns that this ban will result in it losing $400 million in sales to China in its current quarter. The company also says it has no customers in Russia affected by this ban.
News of the ban is causing several chip stocks to take a beating on Thursday. Let’s take a look at how bad the damage is below.
Why Chip Stocks Are Down Today
- Nvidia starts us off with the company’s stock falling more than 11% as of Thursday afternoon.
- Advanced Micro Devices (NASDAQ:AMD) stock is next; shares are taking a 7% beating as of this writing.
- Intel (NASDAQ:INTC) closes out our list of falling chip stocks falling, dropping nearly 2% as of Thursday afternoon.
Investors seeking out more of the latest stock market news will want to keep reading!
InvestorPlace is home to all of the latest stock market coverage that traders need to know about for Thursday! A few examples include why shares of Polestar (NASDAQ:PSNY) stock are falling, mortgage rate discussions and what’s going on with MicroStrategy (NASDAQ:MSTR) stock. You can read all about these matters at the links below!
More Thursday Stock Market News
- Why Is Polestar (PSNY) Stock Down Today?
- Will Mortgage Rates Drop in 2023?
- Michael Saylor Tax Evasion Lawsuit Stunts MicroStrategy (MSTR) Stock
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. | NVDA |
https://finnhub.io/api/news?id=7d3c4c710d9fcf226c149800bbbdf32f04642e348c09abccfcc50a5ea4c7a0f8 | Most Active Equity Options For Midday - Thursday, Sept. 1 | 2022-09-01T04:45:00 | TalkMarkets | Sorry, the page you are looking for has been removed. Let's find a better place for you to go. Back to Home | NVDA |
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https://finnhub.io/api/news?id=bb4898a93eae11af546c05a9ebc536e4247f41ee804acc881cd3c157d9c346fa | U.S. allows Nvidia to do exports, transfers needed to develop its AI chip | Nvidia Corp said on Thursday that the U.S. government has allowed exports and in-country transfers needed to develop the company's H100 artificial intelligence chip. | 2022-09-01T04:31:38 | Reuters | New U.S. curbs on sales of Nvidia AI chips to China spark selloff
Sept 1 (Reuters) - New restrictions on exports of cutting-edge chips from Nvidia Corp (NVDA.O) to China have signaled an escalation of the U.S. crackdown on Beijing's technological prowess and alarmed investors already worried about an industry downturn.
Shares of Nvidia fell 11% to $133.46 on Thursday, wiping out more than $40 billion in market value and dragging the Philadelphia SE Semiconductor Index (.SOX) down by more than 4%.
The U.S. move to restrict exports of two of Nvidia's top computing chips for artificial intelligence - the H100 and A100 - to China could hurt the company's business in the key market, according to a filing on Wednesday. read more
The action by Washington comes as tensions rise over access to advanced chip technology and the future of Taiwan, where Nvidia and nearly all other big semiconductor companies source their chips from.
"On the surface, it looks like the U.S. government is looking to refrain from sales of next generation advanced chips, 7 nanometers and below, specifically for military end use in China," said CFRA Research analyst Angelo Zino.
Rival Advanced Micro Devices Inc (AMD.O) was also asked on Wednesday to stop AI chip exports to China.
The Nvidia and AMD chips targeted by Washington are used for AI and machine learning applications, particularly building training modules for tasks such as natural language processing.
These modules could be also be useful for militaries in modeling bomb simulations and designing weapons.
Market watchers say the restrictions are likely to hit a swathe of Chinese tech companies including Alibaba Group Holding Ltd (9988.HK), Tencent Holdings Ltd (0700.HK), Baidu Inc , and Huawei Technologies Co Ltd [RIC:RIC:HWT.UL].
Nvidia also said on Wednesday that the move could interfere with the development of its flagship H100 chip, which is expected to ship later this year.
On Thursday, it announced the U.S. government has allowed exports and tech transfer needed to complete the development of the H100 chip. U.S. officials have also authorized the company to perform exports needed to provide support for U.S. customers of A100 through March 1, 2023.
The company has also been allowed to fulfill orders of the chips via its Hong Kong facility through Sept. 1, 2023. (https://bit.ly/3Q5YfhR)
Chinese customers are still required to obtain licenses from the U.S. government for the technology, a spokesperson for Nvidia said.
AMD did not respond to a request for comment on whether it received a similar authorization.
Our Standards: The Thomson Reuters Trust Principles. | NVDA |
https://finnhub.io/api/news?id=3ca7db96992dbb8f6112c694711cfed700940a692ba9f9b5db0e039b869b8912 | VMware's vSphere 8 Brings DPUs From AMD, Intel, And Nvidia To Life | With the launch of vSphere 8, the latest version of its cloud computing virtualization platform, the VMware is bringing support for new server architectures using DPUs from AMD and Nvidia. | 2022-09-01T04:30:00 | SeekingAlpha | VMware's vSphere 8 Brings DPUs From AMD, Intel, And Nvidia To Life
Summary
- Data Processing Units (DPUs) are starting to make an impact in corporate and cloud datacenters because of their ability to offload certain infrastructure tasks from a server’s main CPU.
- With the launch of VMware's vSphere 8 with support for Project Monterey, officially known as the vSphere Distributed Services Engine, the awareness and impact of DPUs is bound to get much larger.
- Aside from the vSphere news, VMware also made several announcements around its end-user computer offerings at VMware Explore.
Those who follow the semiconductor market likely know that chipmakers AMD, Intel (INTC), and Nvidia (NVDA) all compete in various markets, most notably GPUs or graphics processing units. What few may realize, however, is that all three of these companies are also now competing in a market for a relatively new class of chip called a DPU, or Data Processing Unit. Sometimes also referred to as a Smart NIC (Network Interface Card), DPUs are starting to make an impact in corporate and cloud datacenters because of their ability to offload certain infrastructure tasks from a server’s main CPU.
Thanks to the official launch of VMware’s (NYSE:VMW) vSphere 8 with support for Project Monterey, officially known as the vSphere Distributed Services Engine, the awareness and impact of DPUs is bound to get much larger. The reason? With vSphere 8, the latest version of VMware’s cloud computing virtualization platform, the company is officially bringing support for new server architectures using DPUs from AMD and Nvidia. In addition, new server systems incorporating those DPUs are being introduced by Dell (DELL) and Hewlett Packard Enterprise (HPE). Support for Intel-based DPUs and server systems from Lenovo (OTCPK:LNVGY) will follow in subsequent releases.
Intel has been developing its DPU technology for several years, but both AMD and Nvidia acquired other chip companies to bring DPUs into their portfolios. Nvidia purchased Mellanox Technologies in 2020, and AMD purchased Pensando Systems earlier this year. Early on, in talking about the purchase of Mellanox’s Bluefield DPU technology, Nvidia emphasized the growing importance of what they called “east-west” traffic in a datacenter. This basically referred to the network traffic that went from one server rack to another nearby rack as the result of the growing use of cloud-native, containerized applications that used these types of connections.
Thanks to vSphere 8’s support for Distributed Services Engine, we’re seeing an even more compelling application of DPUs from all the vendors. These new applications leverage the onboard compute and storage capabilities that DPU server expansion boards also include. Specifically, DPUs are SOCs (system on chip) that include an Arm-based CPU core and a dedicated accelerator that’s designed to handle the infrastructure requirements (such as connecting to storage, performing networking, security tasks, etc.) that modern container-based applications require. vSphere Distributed Engine offloads these infrastructure services from the server CPU to the DPU, freeing the CPU up to work on the actual application workload. The result is better consolidation of workloads, more efficient performance on these core workloads, as well as separation of application workloads from those solely focused on infrastructure tasks, such as distributed firewalls, network traffic routing, and other storage and network-focused efforts.
vSphere Distributed Services Engine manages the lifecycle of the DPU, including updating the software that runs in the DPU. Down the road, a potential added benefit of this arrangement is that DPUs would also be able to connect with bare metal servers that run their own dedicated OS and application workload, thus allowing them to connect to the larger VMware hybrid cloud infrastructure. The end result would be that any combination of virtualized, containerized, or bare metal workloads would all be capable of being managed from a single location via VMware’s Tanzu portfolio of modern application development and management tools.
Aside from the vSphere news, VMware also made several announcements around its end-user computer offerings at VMware Explore. In particular, the company focused on enabling more effective hybrid work scenarios, via the concept of Workspaces, that integrate easy access to all corporate applications and key data across a range of different devices. At this year’s event, the company put a strong focus on automation of the Workspaces and on leveraging technologies like AI to help predict and prevent potential problems. The company also continued to refine its Horizon desktop-as-a-service cloud client computing solution with new enhancements in root cause analysis tools for Help Desk personnel. VMware previewed an automation tool for mobile devices, called Freestyle Orchestrator, that is designed to ease the process of provisioning mobile devices for use in corporate environments.
Given all the focus that has been placed on Broadcom’s (AVGO) intended purchase of VMware and the concerns that has raised, it’s good to see that VMware doesn’t seem to be distracted and continues to make the kind of important technical innovations for which it is known.
Disclaimer: Some of the author's clients are vendors in the tech industry.
Disclosure: None.
Source: Author
Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.
This article was written by
Comments (1) | NVDA |
https://finnhub.io/api/news?id=fd98fdd2fd1c6ffc6ee1d77fb35a3d2179919509d66e6dbceb21def62aac94ee | Stocks Set To Extend Losing Streaks As Treasury Yields Rise | 2022-09-01T04:20:00 | TalkMarkets | Sorry, the page you are looking for has been removed. Let's find a better place for you to go. Back to Home | NVDA |
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https://finnhub.io/api/news?id=053f3fa10ef5847c82df448ca470670d256875ee43c976eca755df6faec27b9b | NVDA October 14th Options Begin Trading | Staff article entitled NVDA October 14th Options Begin Trading, about stock options, from Stock Options Channel. | 2022-09-01T04:02:00 | Stock Options Channel | |
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Stock Options Channel Staff - Thursday, September 1, 12:01 PMInvestors in NVIDIA Corp (NVDA) saw new options begin trading today, for the October 14th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the NVDA options chain for the new October 14th contracts and identified one put and one call contract of particular interest.
The put contract at the $130.00 strike price has a current bid of $9.15. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $130.00, but will also collect the premium, putting the cost basis of the shares at $120.85 (before broker commissions). To an investor already interested in purchasing shares of NVDA, that could represent an attractive alternative to paying $133.10/share today.
Because the $130.00 strike represents an approximate 2% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 58%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 7.04% return on the cash commitment, or 59.75% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for NVIDIA Corp, and highlighting in green where the $130.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $135.00 strike price has a current bid of $9.95. If an investor was to purchase shares of NVDA stock at the current price level of $133.10/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $135.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 8.90% if the stock gets called away at the October 14th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if NVDA shares really soar, which is why looking at the trailing twelve month trading history for NVIDIA Corp, as well as studying the business fundamentals becomes important. Below is a chart showing NVDA's trailing twelve month trading history, with the $135.00 strike highlighted in red:
Considering the fact that the $135.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 49%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 7.48% boost of extra return to the investor, or 63.46% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 65%, while the implied volatility in the call contract example is 66%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $133.10) to be 62%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com. | NVDA |
https://finnhub.io/api/news?id=a9ed143717d5f08681a54de5766b1d92f58f176136248b60cfd7b0328671c69c | What Is Going on With Shuttle Pharmaceuticals (SHPH) Stock Today? | Shuttle Pharmaceuticals (SHPH) stock is in the news today as its shares rocket higher following its initial public offering (IPO). | 2022-09-01T04:01:00 | InvestorPlace | Shuttle Pharmaceuticals (NASDAQ:SHPH) stock is in the news today as shares rocket higher following its initial public offering (IPO).
SHPH stock went public yesterday in an offering that included 1.23 million units. These units each contained one share of the company’s common stock and a warrant to purchase an additional share. The warrants have an exercise price of 1 cent and are “immediately exercisable.”
According to Shuttle Pharmaceuticals, the IPO has it set to raise $9.96 million in gross proceeds. Boustead Securities acted as the lead underwriter of the offering while Valuable Capital was the co-underwriter.
Chairman and CEO Anatoly Dritschilo said the following in a news release.
“With the commencement of our shares listing on Nasdaq, we are excited to advance our lead product candidate aimed at improving the outcomes of cancer treatment through radiation therapy while reducing its side effects.”
It’s worth noting that IPOs have been seeing incredible volatility lately. Several initial public offerings have been targeted by traders jumping on shares as soon as they go public and selling after they rise higher.
It appears this might be happening with SHPH stock today as some 1 million shares change hands as of this writing. The company’s stock is also soaring 92% higher as of Thursday morning.
There’s more stock market news worth diving into below!
InvestorPlace is home to all of the hottest stock news traders need to know about for Thursday! A few examples of that include what has shares of MongoDB (NASDAQ:MDB), Disney (NYSE:DIS) and Nvidia (NASDAQ:NVDA) stock on the move today. You can get all those details from the following links!
More Thursday Stock Market News
- Why Is MongoDB (MDB) Stock Down 20% Today?
- DIS Stock Alert: What to Know as Disney Considers Membership Program
- NVDA Stock Alert: Why Is Nvidia Plunging Today?
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. | NVDA |
https://finnhub.io/api/news?id=ecfb7dacae00b0d416946aa33a78f00b79cb026ed78c4ed0f17883eb77c84fd3 | Best Undervalued Stocks To Buy Now? 3 Semiconductor Stocks To Watch | Do these semiconductor stocks deserve a spot on your watchlist? | 2022-09-01T04:00:00 | StockMarket | 3 Undervalued Semidoncutor Stocks To Check Out Today
Semiconductors are the foundation of the modern world, and semiconductor stocks are vital to the economy. For the uninitiated, semiconductors power nearly all our favorite technology products we use today. This includes cell phones to computers to cars, and they enable some of the most important technologies we rely on. Additionally, semiconductor stocks are widely viewed as a bellwether for the health of the tech sector. Chip makers have been struggling so far this year, as a slowdown in the global economy has led to weaker demand for their products. This is evident, by taking a look at top semiconductor stocks like Intel Corporation (NASDAQ: INTC) and QUALCOMM Incorporated (NASDAQ: QCOM). Shares of both semiconductor firms are down 40.01%, and 28.7% so far in 2022, respectively.
However, with the CHIPS Act recently being passed, optimism grows that a rebound is on the horizon. Meanwhile, it remains to be seen whether this rally will continue. It wouldn’t surprise me if investors were paying close tabs on semiconductor stocks right now. Considering this, let’s take a look at three undervalued semiconductor stocks to check out in the stock market now.
Undervalued Semiconductor Stocks To Watch Now
- Advanced Micro Devices Inc. (NASDAQ: AMD)
- NVIDIA Corporation (NASDAQ: NVDA)
- Taiwan Semiconductor Manufacturing Company Ltd. (NYSE: TSM)
Advanced Micro Devices (AMD)
Starting off, Advanced Micro Devices, Inc. (AMD) is an American multinational semiconductor company based in Santa Clara, California. For starters, the company develops computer processors and related technologies for business and consumer markets. AMD’s main products include microprocessors, motherboard chipsets, embedded processors and graphics processors for servers, workstations and personal computers, and embedded systems applications.
Just last month the company announced its Q2 2022 financial results. In detail, AMD reported a record quarterly revenue of $6.6 billion. This reflects a whopping 70% increase in revenue during the same period, a year prior. Additionally, Advanced Micro Devices notched a record quarter for operating cash flow, which moved past $1 billion. Furthermore, Advanced Micro Devices posted earnings of $1.05 per share versus Wall Street estimates of $1.03 per share.
In the same report, the company provided guidance for Q3 2022. Specifically, the company announced it estimates third-quarter revenue in the range of $26 billion to $26.6 billion. Compared with the consensus revenue estimate for the quarter is $6.86 billion, and revenue of $26.36 billion for the full-year fiscal 2022. Year-to-date shares of AMD are down over 43%, closing Wednesday’s trading day at $84.87 per share. Do you think this makes AMD stock undervalued at these current price levels?
[Read More] Gaming Stocks To Invest In Right Now? 5 Names To Know
NVIDIA Corporation (NVDA)
Next, NVIDIA Corporation (NVDA) is an American technology company that designs and manufactures graphics processing units (GPUs) for the gaming, cryptocurrency, and professional markets. NVIDIA’s GPU products are the most popular NVIDIA brand. The company also sells chipsets that are used in mobile devices, automobiles, and gaming consoles. For a sense of scale, NVIDIA is the largest chip maker in the United States by market value.
Shares of NVDA stock are down over 49% so far in 2022. Meanwhile, during Wednesday’s after-hours trading session, NVDA stock fell another 6.56% to $141.04 per share. This comes after the company said in a regulatory filing that it was notified last week that it would be required to get a license from the United States government before being able to ship certain semiconductor chips to China and Russia. As a result of this, NVDA could lose as much as $400 million in quarterly sales due to these new licensing requirements.
Moving along, this month NVIDIA reported its second quarter 2023 fiscal results. Diving in, the semiconductor giant reported a beat for the quarter. In detail, the company posted earnings of $0.54 per share, on revenue of $6.7 billion. On the other hand, NVIDIA revised its outlook forecast lower for Q3 2023. Given all of this, could now be a good time for investors to be watching NVDA stock for the long-term?
[Read More] Good Stocks To Invest In Right Now? 4 Fertilizer Stocks In Focus
Taiwan Semiconductor Manufacturing Company (TSM)
Lastly, let’s look at Taiwan Semiconductor Manufacturing Company (TSM). As of today, TSM is the largest dedicated semiconductor foundry in the world. Additionally, the company is a market leader in advanced process node technologies. In fact, Taiwan Semiconductor has been a pioneer in the development and commercialization of cutting-edge semiconductor process technologies. The company has been at the forefront of introducing leading-edge processes to the market.
In July, the company reported better-than-expected Q2 2022 financial results. In the report, TSM posted a revenue increase of 37% year-year-over to $18.2 billion. This beat analysts’ estimates by $580 million. What’s more, the company reported earnings per share of $1.55, on revenue of $18.2 billion for the quarter. Additionally, the company raised its revenue guidance for the full year. Specifically, The report showed an increase in results from strong markets for IoT chips & automotive. After reading this, will you be adding TSM stock to your list of semiconductor stocks to watch in the stock market today?
If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel. CLICK HERE RIGHT NOW!! | NVDA |
https://finnhub.io/api/news?id=4165b19ae015bd3a49dab5953e64029278c8473b7f7f3a0bd046c4757bd0e04c | Trending : Nvidia Expects Sales Hit From U.S. Licensing Rule | 10:28 ET -- Nvidia Corp. is one of the most talked about companies in the U.S. across all news items in the last 12 hours, according to Factiva data, after the chip maker forecast a hit to sales... | September 1, 2022 | 2022-09-01T03:44:01 | Finnhub | NVDA
10:28 ET -- Nvidia Corp. is one of the most talked about companies in the U.S. across all news items in the last 12 hours, according to Factiva data, after the chip maker forecast a hit to sales from a U.S. licensing rule. In a regulatory filing, Nvidia says it could lose as much as $400 million in quarterly sales after the U.S. imposed new licensing requirements on shipments of some of its most advanced chips to China. The company says it was in talks with Chinese customers to fulfill planned purchases with other products and may seek licenses from the government if the replacements weren't sufficient. The U.S. Commerce Department says it taking action to protect U.S. national security. The new rule is weighing on Nvidia's shares, which were down 8.6% in morning trading, widening the year-to-date drop to 53%. Dow Jones & Co. owns Factiva. ([email protected])
(END) Dow Jones Newswires
09-01-22 1043ET | NVDA |
https://finnhub.io/api/news?id=909f5c0790e1b114b9170c3dfa25bbde30bd47da091626033482dae50ec0db71 | DIS Stock Alert: What to Know as Disney Considers Membership Program | Disney (DIS) stock is in the news Thursday following reports that the company is considering a premium membership program. | 2022-09-01T03:28:00 | InvestorPlace | Disney (NYSE:DIS) stock is in the news Thursday following reports that the company is considering a membership program.
According to insiders, Disney wants to develop a premium membership program that would include benefits for customers. That could include discounts across its various services, as well as other bonuses.
Executives at Disney are still discussing what this would all mean for consumers. They also haven’t decided on a name yet. Instead, the placeholder title of “Disney Prime” is reportedly being used internally.
Of course, Disney isn’t considering this option just to benefit its customers. The company wants to launch the service as a way to increase consumer spending. That includes ways to get people to spend more at its parks, as well as on Disney+.
Since these discussions still aren’t complete, several things haven’t been hammered out yet. That includes what the price for the service would be, as well as when the service could become available to consumers.
Investors should note that there’s no guarantee Disney will move forward with these membership plans. Even so, it’s something to keep in mind as we await more news in the coming months.
DIS stock is down slightly as of Thursday morning.
Investors seeking out more of the latest stock market news will want to stick around!
We’ve got all of the hottest stock news traders need to know about for Thursday! Among that is what’s hitting Nvidia (NASDAQ:NVDA) stock, why shares of Bed Bath & Beyond (NASDAQ:BBBY) stock are dropping and the news sending Guardforce AI (NASDAQ:GFAI) stock higher today. You can find all of that at the following links!
More Thursday Stock Market News
- NVDA Stock Alert: Why Is Nvidia Plunging Today?
- Bed Bath & Beyond (BBBY) Stock Continues to Fall on Layoffs
- Guardforce AI (GFAI) Stock Gets a Boost From New Exec Team
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. | NVDA |
https://finnhub.io/api/news?id=58b7d145a0d2cbd9360910f2378e08118a1e470afa2417ac2eb2493d966181ae | Most big cryptocurrencies decrease as Ripple declines | Most of the largest cryptocurrencies were down during morning trading on Thursday, with Ripple seeing the biggest move, shedding 1.62% to 33 cents. Seven... | 2022-09-01T03:00:00 | MarketWatch | Most of the largest cryptocurrencies were down during morning trading on Thursday, with Ripple
XRPUSD,
+0.46%
seeing the biggest move, shedding 1.62% to 33 cents.
Seven additional currencies posted drops Thursday. Dogecoin
DOGEUSD,
-0.98%
dropped 1.45% to 6 cents, and Bitcoin
BTCUSD,
-0.00%
fell 1.22% to $19,961.28.
Uniswap
UNIUSD,
-0.36%
fell 1.22% to $6.14, while Polkadot
DOTUSD,
+0.67%
slipped 0.99% to $7.02. Cardano
ADAUSD,
-0.05%
slipped 0.96% to 45 cents.
Ethereum
ETHUSD,
-0.19%
and Bitcoin Cash
BCHUSD,
-1.39%
rounded out the decreases for Thursday, dropping 0.43% to $1,566.21 and 0.40% to $115.52, respectively.
On the other hand, Litecoin
LTCUSD,
-0.23%
posted the only increase among the largest cryptos, rising 1.81% to $55.72.
In crypto-related company news, shares of Coinbase Global Inc.
COIN,
-3.79%
shed 4.78% to $63.61, while MicroStrategy Inc.
MSTR,
-3.32%
fell 3.48% to $223.51. Riot Blockchain Inc.
RIOT,
-3.93%
shares dropped 3.91% to $6.89, and shares of Marathon Digital Holdings Inc.
MARA,
-4.41%
shed 3.21% to $11.47.
Overstock.com Inc.
OSTK,
-6.52%
declined 3.41% to $25.21, while Block Inc.
SQ,
-13.64%
fell 3.68% to $66.38 and Tesla Inc.
TSLA,
-2.11%
slid 0.62% to $273.89.
PayPal Holdings Inc.
PYPL,
-2.23%
declined 1.61% to $91.94, and Ebang International Holdings Inc. Cl A
EBON,
-2.53%
shares shed 2.84% to 45 cents. NVIDIA Corp.
NVDA,
+0.37%
declined 7.56% to $139.53, and Advanced Micro Devices Inc.
AMD,
+2.36%
shed 1.61% to $80.99.
In the fund space, blockchain-focused Amplify Transformational Data Sharing ETF
BLOK,
-1.86%
declined 2.09% to $20.40. The Bitwise Crypto Industry Innovators ETF
BITQ,
-4.08%,
which is focused on pure-play crypto companies, dropped 4.91% to $7.17. Grayscale Bitcoin Trust
GBTC,
which tracks the Bitcoin market price, fell 1.18% to $12.39.
Editor's Note: This story, which tracks nine of the top cryptocurrencies and excludes stable coins, was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones, FactSet and Kraken. See our market data terms of use. | NVDA |
https://finnhub.io/api/news?id=2bf1faf2e897b57a6ad1aa6550a3a37cb9a2189a4eaa446774a6b308398a25dc | NVDA Stock Alert: Why Is Nvidia Plunging Today? | After Washington moved to further restrict the sale of computer chips to China, NVDA stock is sinking 4.5% today. | 2022-09-01T03:00:00 | InvestorPlace | Following the U.S. government’s decision to further restrict the sale of computer chips to China and Russia, Nvidia (NASDAQ:NVDA) stock is sinking more than 9%. The shares of a number of other chip makers are also retreating, while Nvidia and some of its peers are trending on social media today.
Washington is requiring Nvidia to meet new criteria to obtain a license to sell its chips to Chinese customers, Nvidia reported yesterday via an SEC filing. The firm estimates the rule could reduce its annual revenue by $400 million. The new requirement also applies to Russia, but Nvidia reported that it does not have any customers in that country.
According to the filing, the U.S. is implementing the new rule to “address the risk that the covered products may be used in, or diverted to, a ‘military end use.'” The measure will negatively impact sales of Nvidia’s A100 and H100 offerings, which are used to facilitate the development of artificial intelligence.
AMD Will Also Be Hurt
Meanwhile, another prominent chip maker, Advanced Micro Devices (NASDAQ:AMD), received a similar notice from Washington, Investor’s Business Daily reported today.
AMD’s financial results could actually be affected significantly more than those of Nvidia by the new restrictions. That’s because, according to one publication, in 2020, China, including Hong Kong, accounted for roughly 24% of AMD’s total revenue.
In pre-market trading, AMD stock stock was retreating 2.2% and is now down more than 6% for the day.
Wall Street Firms React to the NVDA Stock News
Research firm Bernstein responded to the news by cutting its price target on NVDA stock to $180 from $210, while JPMorgan wrote Nvidia is “working to limit downside risk” of Washington’s move, according to The Fly.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. | NVDA |
https://finnhub.io/api/news?id=d4238e1565207563c1aabd30bc92648426fdda0292c15466c877a164b58502f2 | U.S. export ban on some advanced AI chips to hit almost all China tech majors - analysts | A U.S. order to ban exports of some advanced chips to China is likely to hit almost any major tech company running public clouds or advanced artificial intelligence training modules in the country, experts said. | 2022-09-01T02:59:49 | Reuters | U.S. export ban on some advanced AI chips to hit China tech majors
SHANGHAI, Sept 1 (Reuters) - A U.S. order to ban exports of some advanced chips to China is likely to hit almost any major tech company running public clouds or advanced artificial intelligence training modules in the country, experts said.
Chip designer Nvidia Corp (NVDA.O) said on Wednesday that U.S. officials told it to stop exporting two top computing chips for AI work to China.
Advanced Micro Devices (AMD.O) also said it had received new license requirements that will stop its advanced AI chip called MI250 from being exported to China. read more
Shu Jueting, a Chinese Commerce Ministry spokesperson, said on Thursday that Beijing opposes the measures, saying they undermine the rights of Chinese companies and threaten to disrupt global supply chains.
The orders underscore deepening U.S.-China tensions over access to advanced chip technology.
"We’re going from blocking certain U.S. companies from supplying to a certain company, as was the case with Huawei, to banning certain U.S. products from selling to China period," said Jay Goldberg, CEO of D2D Advisory, a finance and strategy consulting firm.
The worst case scenario would be Washington broadening the ban to block contract chipmakers such as Taiwan Semiconductor Manufacturing Co (2330.TW) and Samsung (005930.KS) from making chips for Chinese chip designers, Jefferies' analysts said in a note.
"We are not there yet, and the U.S. will likely evaluate the effectiveness of each incremental step before drastic action is considered," it said.
Market watchers say the latest ban is likely to hit a swathe of Chinese tech companies including such giants as Alibaba Group Holding Ltd (9988.HK), Tencent Holdings Ltd (0700.HK), Baidu Inc , and Huawei Technologies Co Ltd (HWT.UL).
Jefferies added affected companies could either rely on cloud services from Alphabet Inc's (GOOGL.O) Google or Amazon.com Inc's (AMZN.O) AWS to develop AI software and export it back to China, or use multiple lower-end chips to replicate the processing power of the banned, high-end chips.
One former senior staffer at AMD in China said that the restrictions won't stop Chinese tech companies from advancing their AI research, but will make research more expensive and less efficient in the short-term.
"It's a resource impact. They will still work on the same projects, they will still be moving forward, it just slows them down," he told Reuters.
Alibaba, Tencent and Baidu did not immediately reply to Reuters' requests for comment. Huawei declined to comment.
The Nvidia and AMD chips targeted by Washington are used for AI and machine learning applications, particularly building training modules for tasks such as natural language processing.
These modules could be also be useful for militaries in modeling bomb simulations and designing weapons.
Goldberg at D2D said there are few Chinese companies that could offer chips to replace those of AMD and Nvidia quickly and the restrictions would likely spur more funding for domestic chip startups to narrow its gap with U.S. firms.
China is home to a number of startups aspiring to make chips that can compete with Nvidia and AMD. Many were founded by former staffers of those companies, though few have attained meaningful scale.
Shares in Chinese AI chip makers Hygon Information Technology Co (688041.SS) and Loongson Technology Corp (688047.SS) surged on Thursday, rising 10% and 6%, respectively.
Last week, Biren, a company founded by alumni of Nvidia and Alibaba, unveiled a 7nm chip that experts say marks notable progress for China's chip sector.
"There are several dozen Chinese chip companies working on all flavors of AI accelerators, and their order books are going to fill up tomorrow," said Goldberg.
Our Standards: The Thomson Reuters Trust Principles. | NVDA |
https://finnhub.io/api/news?id=5fe3edf0eeb697e2db56d02d8a23bbd7a9eb3fe35fde524d719d63850ced18dc | Video: S&P 500 Movers: NVDA, DG | In early trading on Thursday, shares of Dollar General topped the list of the day's best performing components of the S&P 500 index, trading up 1.9% - Year to date, Dollar General registers a 2.6% gain - NVDA,DG,MPWR,DOV. | 2022-09-01T02:18:00 | Market News Video | In early trading on Thursday, shares of Dollar General topped the list of the day's best performing components of the S&P 500 index, trading up 1.9%. Year to date, Dollar General registers a 2.6% gain.
And the worst performing S&P 500 component thus far on the day is NVIDIA, trading down 7.8%. NVIDIA is lower by about 52.7% looking at the year to date performance.
Two other components making moves today are Monolithic Power Systems, trading down 6.8%, and Dover, trading up 1.5% on the day.
Any ideas and opinions presented in all Market News Video clips are for informational and educational purposes
only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners.
In no way should any content contained herein be interpreted to represent trading or investment advice.
None of the information contained herein constitutes a recommendation that any particular security, portfolio,
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https://finnhub.io/api/news?id=ecee86a9df9c695a49d2672939bea161ffab5768accbeb2babe112d6bf08dd00 | Beijing calls U.S. ban on Nvidia chip sales to China an attempt at 'tech blockade' | Chinese foreign ministry spokesperson Wang Wenbin said on Thursday that the United States was attempting to impose a "technological blockade" on China after chip designer Nvidia Corp said on Wednesday it was told by U.S. officials to stop exporting two top computing chips... | 2022-09-01T01:19:11 | Reuters | BEIJING, Sept 1 (Reuters) - Chinese foreign ministry spokesperson Wang Wenbin said on Thursday that the United States was attempting to impose a “technological blockade” on China after chip designer Nvidia Corp said on Wednesday it was told by U.S. officials to stop exporting two top computing chips to China.
Wang also told a regular briefing that the ban showed the United States was trying to maintain its “technological hegemony” and stretching the concept of national security. (Reporting by Yew Lun Tian in Beijing, writing by Eduardo Baptista; editing by Jason Neely)
Our Standards: The Thomson Reuters Trust Principles. | NVDA |
https://finnhub.io/api/news?id=2f70cb8df926e98d759583855affffb08c0769d925a7bf51cf9d4c651eeaaa57 | China opposes U.S. move barring Nvidia from selling it high-end chips | A U.S. move to stop Nvidia Corp from selling top artificial intelligence chips to China undermines the legitimate rights and interests of Chinese companies and the stability of global industrial and supply chains, Chinese Commerce Ministry spokesperson Shu Jueting told a... | 2022-09-01T01:00:06 | Reuters | China opposes U.S. move barring Nvidia from selling it high-end chips
BEIJING, Sept 1 (Reuters) - A U.S. move to stop Nvidia Corp (NVDA.O) from selling top artificial intelligence chips to China undermines the legitimate rights and interests of Chinese companies and the stability of global industrial and supply chains, Chinese Commerce Ministry spokesperson Shu Jueting told a regular news conference on Thursday.
Chip designer Nvidia Corp said on Wednesday that U.S. officials told it to stop exporting two top computing chips for artificial intelligence work to China. read more
Our Standards: The Thomson Reuters Trust Principles. | NVDA |
https://finnhub.io/api/news?id=dd7225f71a6e93e9ba9ff6d1fdd2fe207f327a309e22890ec637d14cabf13765 | U.S. allows Nvidia to export, transfer tech to develop AI chip | Nvidia Corp said on Thursdaythat the U.S. government has allowed exports and in-countrytransfers needed to complete the development of the company'sH100 artificial intelligence chip. ... | September 1, 2022 | 2022-09-01T00:52:46 | Finnhub | NVDA
Sept 1 (Reuters) - Nvidia Corp said on Thursday that the U.S. government has allowed exports and in-country transfers needed to complete the development of the company's H100 artificial intelligence chip.
The chip designer has also been allowed to fulfill orders of the A100 and H100 AI chips via its Hong Kong facility through Sept. 1, 2023.
U.S. officials told Nvidia on Wednesday to stop exporting its two top computing chips for AI work to China, a move the company said would interfere with the development of the H100.
The company said on Thursday Washington has also allowed it to perform exports needed to provide support for U.S. customers of A100 through March 1, 2023. (https://bit.ly/3Q5YfhR)
Shares of the company were down 4% in premarket trading on concerns that the U.S. ban could hurt Nvidia's business in the key Chinese market.
Rival Advanced Micro Devices Inc also said on Wednesday that U.S. officials have told it to stop exporting its top artificial intelligence chip to China.
(Reporting by Akash Sriram and Tiyashi Datta in Bengaluru; Editing by Aditya Soni) | NVDA |
https://finnhub.io/api/news?id=655e7b4339616e2e960667a29620070a2086328ef83635969e36de9a43de3891 | Nvidia, MongoDB, Okta, C3.ai, NIO, and More Stock Market Movers Thursday | Seagate and Western Digital are trading lower in Thursday's premarket session. | 2022-09-01T00:52:00 | MarketWatch | Stock futures were lower Thursday as the fears of a more aggressive Federal Reserve continued to weigh on investors and new lockdowns in China hit sentiment.
Contracts linked to the the Dow Jones Industrial Average fell 0.5%, S&P 50 0 futures declined 0.5%, and futures on the tech stock-heavy Nasdaq Composite were down 0.7%.
These are some of the stocks making notable moves in premarket trading Thursday.
Nvidia (NVDA) stock was 4.3% lower after the chip maker said in a filing the U.S. government has informed the company it has imposed a new licensing requirement, covering any exports of Nvidia’s A100 and upcoming H100 products to China, including Hong Kong, and Russia. Fellow chip maker, Advanced Micro Devices (AMD), fell 2.6% Thursday.
MongoDB (MDB) shares plunged 17% after the database software provider said it expects to report a loss for fiscal 2023 worse than its previous expectations.
Okta (OKTA) sank 16% despite posting strong earnings and lifting its financial forecast for the year, after the company noted that business growth has been affected by unexpected problems with integrating Auth0, which Okta acquired in 2021.
C3.ai (AI) stock fell 14% after the artificial intelligence software company cut its revenue outlook and said it plans on overhauling its business model.
Seagate Technology (STX) was down 2.4% after the data-storage company was downgraded to Hold from Buy at Benchmark, one day after the company reduced its financial forecasts. Western Digital (WDC) was downgraded to Sell from Hold by an analyst at Benchmark. The stock fell 2.2%.
American depositary receipts of Li Auto (LI) were down 2% after the Chinese electric-vehicle maker’s deliveries droppedfrom a year earlier. NIO (NIO) shares were 2.2% lower and XPeng’s (XPEV) stock was down 2.2% despite their delivery reports looking better.
Write to Angela Palumbo at [email protected] | NVDA |
https://finnhub.io/api/news?id=905c40920c9aeea8c0e6d06d2010b27577d566e7f8e66631ea9f7cd40dea0d9d | Thoughts For Thursday: On The Downward Trail | 2022-09-01T00:35:00 | TalkMarkets | Sorry, the page you are looking for has been removed. Let's find a better place for you to go. Back to Home | NVDA |
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https://finnhub.io/api/news?id=055f99f13eb25866c1dd4d54428f75881ba05da02d8d18988d057a6417c33bd1 | 7 of Cathie Wood's Favorite Stocks to Buy Now | These are some of Cathie Wood's favorite stocks, trading at massive discounts, boasting incredible track records and a healthy outlook ahead. | 2022-09-01T00:33:00 | InvestorPlace | During the pandemic years, Cathie Wood’s favorite stocks became massive wealth-builders. Her tech-heavy representative ARK Innovation ETF (NYSEARCA:ARKK) increased in value by more than 10% in a single day.
However, with the current market downturn, and the risk-off attitude of investors, ARKK has shed a ton of value. Nevertheless, many of Cathie Wood’s favorite stocks show she has an incredible track record of picking wealth-compounding that cannot be ignored.
Wood has made her career as a maverick stock picker, claiming that her success lies in the number of ideas she generates. Last year, she became more of a cult-like figure during the speculative tech boom.
Markets have pulled back substantially amidst multiple economic headwinds, but Cathie Wood’s favorite stocks remain as relevant as ever, considering these stocks can be picked up at historic lows.
|MTTR||Matterport||$4.61|
|COIN||Coinbase Global||$66.80|
|RBLX||Roblox||$39.11|
|U||Unity Software||$42.72|
|NVDA||Nvidia||$150.94|
|DKNG||DraftKings||$16.06|
|GM||General Motors||$38.21|
Matterport (MTTR)
Matterport (NASDAQ:MTTR) is a 3D spatial mapping specialist that soared in popularity last year. Shortly after merging with a special purpose acquisition company (SPAC) last year, MTTR stock traded at an all-time high of $33. It only trades at a fraction of that price at this time.
Matterport produces software that enables its users to create “digital twins” of real-world spaces using 3D cameras. The scans are then uploaded to a cloud-based platform for further application, including virtual reality experiences.
Supply-chain issues have marred its recent results, but its subscriber base rose 52% from the prior-year period to 616,000 in the second quarter. A full 90% of their user base consists of free users, which points to an incredible opportunity for the company.
After the second quarter, its CEO RJ Pittman said that the firm still had a massive order backlog to fulfill in the upcoming quarter. Therefore, there’s healthy upside potential for MTTR stock ahead.
Coinbase Global (COIN)
Coinbase Global (NASDAQ:COIN) is one of the leading cryptocurrency exchanges, with over 100 million verified users. In April last year, it became a publicly-traded business through its IPO. The company has struggled since then, but it’s still head and shoulders above its competition regarding the trading volume and user base.
Naturally, the company has been struggling to get going in the ‘crypto winter.’ Second quarter results for its business were down remarkably from the prior-year period.
The exchange stated in its shareholder letter, “a shift in customer and market activity, driven by macroeconomic and crypto credit factors alike.”
The crypto markets won’t be down in the doldrums forever, and once they start picking up momentum again, so will COIN stock.
Roblox (RBLX)
Metaverse gaming company Roblox (NYSE:RBLX) turned heads during the pandemic with its spectacular subscriber and revenue growth numbers.
With the behavioral shifts in the post-pandemic world, though, things have been moving south for the business. The company still is poised to succeed in the long run when the metaverse concept goes mainstream. Its numbers from July suggest that investor concerns are a bit overblown.
The second quarter results were rough despite the double-digit growth in sales. On the upside, bookings (direct purchases of its in-game currency Robux) dropped 4% during the quarter. Considering it generates nearly 50% of its sales from Roblox, the decline is a major cause for concern.
The platform reported 8% to 10% growth in bookings, with a 26% increase in daily active users to 58.5 million in July. With the stock down more than 60% year-to-date, it’s significantly more attractive at current levels.
Unity Software (U)
Unity Software (NYSE:U) is a 3D content creation platform known as a top video game engine.
Its leadership position in its niche has enabled it to grow rapidly over the past several years. Its revenues have grown by an incredible 43% on average over the past five years. Consequently, its stock has grown at a healthy pace alongside the growth in sales.
Growth rates have normalized considerably of late, prompting Unity to pursue new acquisition targets aggressively. IronSource is perhaps its biggest acquisition in recent months in boosting its software and app monetizing potential.
Apple’s iOS privacy updates have thrown off Unity’s advertising business, where the ironSource deal holds immense value. As we advance, it would be interesting how the acquisition could fix Unity’s advertising woes. However, it’s perhaps the best time to pick up Unity stock at a massive discount.
Nvidia (NVDA)
Semi-conductor giant Nvidia (NASDAQ:NVDA) had a rough second quarter where growth rates were substantially lower than market expectations and from past quarters.
Inventory issues from its partners have weighed down its top and bottom-line results. Moreover, the declines in gaming and crypto revenues have also contributed to revenue growth.
Nvidia’s long-term case remains firmly intact because of its impressive track record and incredible outlook. It has spread its tentacles in some of the most profitable verticals, including the autonomous vehicles market, edge computing, and the metaverse.
The worldwide graphics processing unit (GPU) market alone is set to grow by 33.6% through 2027. Nvidia has a hefty 21% control of the market. Additionally, its data center business continues to impress despite the headwinds. It wrapped up another quarter generating over 61% growth in sales.
DraftKings (DKNG)
DraftKings (NASDAQ:DKNG) is among the top online sportsbook operators in the U.S. It operates in 17 states and continues to grow each year.
DKNG has been a remarkably consistent business, generating revenues over the 50% mark in recent years.
Its second-quarter results showed a healthy 57% bump in sales to $466 million. Customer engagement levels were impressive, and its management raised its full-year sales guidance. Despite the troubling business conditions, it was able to grow at a healthy pace.
The legal sports betting market has been growing exponentially and is likely to grow by double digits for the foreseeable future.
CEO Jason Robin feels that the current market conditions have little impact on the platform’s spending. Hence, with the firm’s robust growth rates and expansion plans, DKNG stock remains an excellent bet over the long run.
General Motors (GM)
General Motors (NYSE:GM) is one of the biggest names in the automotive space. However, it has been struggling to grow top-line results in recent years, prompting a pivot towards an all-electric future.
GM fully embraces the EV future and plans to ditch its legacy combustion engine business. It has plans to invest over $35 billion in its EV efforts by 2025. Moreover, by 2035, it plans only to be producing EVs.
The focus on EVs will likely prove extremely beneficial to GM stock in the long run. It recently announced it was re-instating its dividend and increased its buyback capacity by a whopping $5 billion with a forward yield of close to 1%. Additionally, its stock has been trading at under 0.37 times forward sales.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines | NVDA |
https://finnhub.io/api/news?id=dfa153f0f22d278d1dd8bf60b12abfe3d52eac888bf1e5cfe40c31c93a229470 | Wall Street Breakfast: Power Chords | Listen on the go! A daily podcast of Wall Street Breakfast will be available by 8:00 a.m. on Seeking Alpha, iTunes, Stitcher and Spotify. | 2022-09-01T00:20:55 | SeekingAlpha | Wall Street Breakfast: Power Chords
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There's a lot of news hitting energy markets, which in turn, is hitting prices. Reports now suggest that OPEC+ is not looking at crude production cuts, while a renewed Iranian nuclear deal could push more barrels on the market. G7 finance ministers will also meet virtually tomorrow, and are expected to endorse a plan to set a cap on the price of Russian oil and commit to finalizing its implementation.
How would the caps work? Details are still being discussed, but they would likely be implemented close to the cost of Russian production, thereby denting Moscow's finances, but still ensuring critical energy flows. To accomplish this, Europe would restrict the availability of transport and insurance services to shippers that agree to observe the price ceiling (~95% of the world's oil tanker fleet is covered by the International Group of P&I Clubs in London and companies based in continental Europe). Another proposal would apply similar caps on Russian gas prices, or limit the usage of U.S. financial services that could also benefit the scheme.
WTI crude fell below $90 a barrel on the news after posting a third monthly decline in August (the longest losing streak since April 2020). The sentiment has also flowed into September, with WTI futures (CL1:COM) down 2% to $87.55/bbl at the time of writing. "Energy traders anticipate a brutal period for global growth," added Edward Moya, senior market analyst at OANDA. "China factory activity remains depressed and another eurozone record-high inflation reading has raised the prospects of much more aggressive ECB tightening that could trigger a severe recession."
A wild card: Markets have priced in a previously announced shutdown of the Nord Stream 1 pipeline, which will be closed over the next 72 hours for maintenance work. However, if Russia prolongs the closure (it has been restricting gas supplies over the past three months), energy prices could spike once again. Many in the industry say that Vladimir Putin is "weaponizing" supplies by creating uncertainty around the limited gas flows, while leveraging his position by adding to the anxiety in Europe. (3 comments)
The shorts appear to be winning the recent battle at Bed Bath & Beyond (BBBY). A drubbing on Wednesday means investors can now buy the stock with the company's famous "20% off" coupon, and things aren't looking any better premarket, with BBBY down another 6% to the $9 level. Shares were already deflating after meme mania pushed them up to the $23 range in mid-August, but they have shaved off nearly $1B in market value over the past two weeks.
The latest: Bed Bath has unveiled a plan to reduce a third of its in-house home goods brands and cut 20% of jobs across corporate and the supply chain. It also announced commitments for more than $500M of new financing, while potentially raising capital by selling as many as 12M new shares. Following a strategic review, it will retain the buybuy BABY banner, but the company will shutter 150 "lower-producing" locations.
"While there is much work ahead, our road map is clear and we're confident that the significant changes we’ve announced today will have a positive impact on our performance,” said interim chief executive Sue Gove, after years of competition from the likes of Target (TGT) and Amazon (AMZN).
Burning through cash: Many of Bed Bath's efforts are aimed at steadying its balance sheet, which ended May with around $100M, compared to $1.1B a year earlier. The retailer also predicts it used up another $325M in cash during Q2, which is closer to the amount analysts forecast the company would use over two quarters. It also means the cash burn over the last half a year was north of $800M, not a great sign especially when BBBY's market cap is now around $760M. (64 comments)
Shares of Nvidia (NVDA) are also under pressure, down 6% in early trading, after warning that U.S. export restrictions on some of its products may hurt sales. According to an 8-K filing, Washington has imposed a new license requirement for any future export to China (including Hong Kong) and Russia of the company's A100 and H100 integrated circuits. The latter is Nvidia's forthcoming flagship chip that was announced earlier this year.
Bigger picture: Chinese organizations are reliant on cost-effective chips from Nvidia and others to carry out advanced artificial intelligence tasks like image and speech recognition. The chips also have military applications, such as scanning satellite imagery for weapons bases or filtering communications for intelligence gathering, and the U.S. government feels the new license requirement will mitigate those risks.
If Nvidia's customers don't want to purchase the company's alternative product offerings, or if the U.S. doesn't grant licenses in a timely manner or denies licenses to significant customers, it could impact the company's outlook for its fiscal third quarter (which includes $400M in potential sales to China). Advanced Micro Devices (AMD) also warned that it received a similar note from the U.S. government, though it doesn't see a material impact.
Go deeper: Recent reports stated that the Biden administration was reviewing new export sanctions on China, which involved chip equipment tools that could be used for making semiconductor advancements. The Commerce Department is also trying to figure out how to ban exports of tools that are sent to factories of Semiconductor Manufacturing International Corp. (OTCQX:SMICY), or SMIC, to prevent them from creating semiconductors at the 14-nanometer node and smaller. (107 comments)
Weeks after 'Big Short' investor Michael Burry said the "market silliness" is back, famed fund manager Jeremy Grantham has issued a warning to "prepare for an epic finale" to the market cycle. He argues that the current "superbubble" in asset prices hasn't deflated yet and appears to be dangerously close to its "final act." Some have compared Grantham and Burry to "a broken clock" that is right twice a day, especially since they have been issuing "superbubble" warnings since the pandemic began, but the two have made serious money off bubbles in Japan in the late 1980s, the dot-com era and the U.S. housing market crash in 2008.
Quote: "One of those features is the bear-market rally after the initial derating stage of the decline but before the economy has clearly begun to deteriorate, as it always has when superbubbles burst," Grantham wrote in a fresh research note. "This, in all three previous cases, recovered over half the market's initial losses, luring unwary investors back just in time for the market to turn down again, only more viciously, and the economy to weaken. This summer's rally has so far perfectly fit the pattern."
"My bet is that we're going to have a fairly tough time of it economically and financially before this is washed through the system. What I don't know is: Does that get out of hand like it did in the '30s, is it pretty well contained as it was in 2000, or is it somewhere in the middle? The U.S. stock market remains very expensive and an increase in inflation like the one this year has always hurt multiples, although more slowly than normal this time. But now the fundamentals have also started to deteriorate enormously and surprisingly: Between COVID in China, war in Europe, food and energy crises, record fiscal tightening, and more, the outlook is far grimmer than could have been foreseen in January."
Outlook: Despite the warnings, an aggressive Fed tightening cycle and worries about the economy, most American retirement savers haven't made changes to their portfolios. Only 5% of 401(k) and 403(b) investors shifted their asset allocations during the second quarter, according to Fidelity Investments, and the majority of those investors only made one switch to more conservative assets. Set it and forget it? Don't time the market? (84 comments)
Today's Markets
In Asia, Japan -1.5%. Hong Kong -1.8%. China -0.5%. India -1.3%.
In Europe, at midday, London -1.5%. Paris -1.5%. Frankfurt -1.4%.
Futures at 6:30, Dow -0.6%. S&P -0.7%. Nasdaq -1.1%. Crude -2.2% to $87.55. Gold -0.8% to $1711.90. Bitcoin -1.8% to $19,993.
Ten-year Treasury Yield +7 bps to 3.20%
Today's Economic Calendar
7:30 Challenger Job-Cut Report
8:30 Initial Jobless Claims
8:30 Productivity and Costs
9:45 PMI Manufacturing Index
10:00 ISM Manufacturing Index
10:00 Construction Spending
10:30 EIA Natural Gas Inventory
3:30 PM Fed's Bostic Speech
4:30 PM Fed Balance Sheet
Companies reporting earnings today »
What else is happening...
Pfizer (PFE), Moderna (MRNA) win FDA nod for updated COVID boosters.
Snap (SNAP) logs best trading day since May on focused restructuring.
Report: Disney (DIS) is considering an Amazon-like membership program.
DC Attorney General sues Michael Saylor, MicroStrategy (MSTR) over taxes.
Nutanix (NTNX) jumps 20% postmarket on earnings beat, bright outlook.
3M (MMM) to eliminate jobs as part of broad cost-cutting push - Bloomberg.
Toyota (TM) investing $5.6B in EV battery production in U.S. and Japan.
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Comments (62)
What a week so far, and the excitement concerning the Market's has just started, much excitement coming forth yet.Cheers.
Markets will be fun to watch tomorrow.Ciao
Yes, the worst is yet to come, as I have been stating this selloff was coming forth on WSB for quite some time now, all looks to be coming to fruition, and keep an eye on the foreign market's also, as this snowballs throughout the global community, as dire straits prevail for all and in particular, keep a very, very close eye on Chinas market and economic situation, as if they selloff all hell breaks loose imo throughout.
Many analysts are currently coming out of the woodwork predicting / forecasting doom and gloom scenarios now at a more intense pace as of late, but I had been adamant about my forecasting concerning the markets, housing market crash and the imminent Global financial meltdown and currency reset coming forth in time, as time is on our side mm-hmmm.
Invest wisely my friends during these very, very trying times.DOW 15K-20K coming forth? Me thinks very likely.Ciao
Let the chips fall...
They're still pointing towards the price level of $75-$80 bbl for oil, or possibly even under $75 bbl oil coming forth, as $70 bbl bottom likely.
Then they signal a rise back up towards new highs after the drop has cycled out.Adding to my energy sector on significant drops of 5%-10% during volatility.
Just as I'm currently doing with my precious metal's portfolio of investments.
Awaiting the Global financial meltdown, and currency reset thereafter.
Buying opportunities are an advantage for those willing.Cheers.
No end in sight of what's likely coming forth, much pain for all.Cheers and best regards Ishi.
Too funny, as Cali goes, so goes the rest of the country. NOT!!Cheers.
I was laughing also as I watched Gov Newsome on the local news station. What is even more funny, is the millions of people out there who voted for this exact scenario and are told NOT to live in the 21st century.
Crazy destructive measures and policies will last only for so long, and just maybe our God above is wanting it to happen this way to open their eyes throughout mmm-hmmm.Ciao
I like this man's thinking, as its in line with what I've been preaching here on WSB for some time.
Jeremy Grantham says, "the worst is yet to come amid 'super bubble' cycle."Indeed, the worst is yet to come forth as the economic situation throughout the Global community intensifies as inflation runs rampant in many countries and will likely get much worse, leading to hyperinflation, recession and then depression for many economies throughout the Globe.Market crashes throughout? Me thinks, yes eventually.Ciao
I disagree. As he's cleansing the country of the corrupted $ launderers, biolabs and Nazi child traffickers. And that puppet leadership which was installed by the CIA who does the U.S. bidding, until he can't any longer, as his days are numbered imo.
Viva V. Putin!!Cheers.
died on Thursday after falling from a hospital window in Moscow, two sources familiar with the situation said, becoming the latest in a series of businessmen to meet with sudden unexplained deaths.Gatorade is entering the energy drink category with a caffeinated spin-off called Fast Twitch. No sugar and no carbonation. Fast Twitch seems to be a pre-workout option. This is "Breaking News" on CNBC. Slow day, I guess.A facility described by Danish energy firm Orsted as the “world’s biggest offshore wind farm” is now fully operational, with its 165 turbines set to help power in excess of 1.4 million U.K. homes. Hornsea 2 has a capacity of more than 1.3 gigawatts and stretches across an area of 462 square kilometers — more than half the size of New York City. Hornsea 2 uses Siemens Gamesa
turbines with blades measuring 81 meters, or more than 265 feet.More as Mr. Market charts his course for the day.Peace and progress.
wind (138)
nuclear (95)
conventional hydro (80)
solar (66)
other (76)Retired capacity: Of the 15.1 GW of electric generating capacity that U.S. operators plan to retire during 2022, more than half (8.8 GW) was retired in the first half of the year. Coal-fired power plants will account for 76% of the retirements this year, followed by natural gas (12%) and nuclear (9%). The largest U.S. coal power plant retirements in 2022 include the 1,305 MW William H. Zimmer plant in Ohio, which retired in May, and the 1,205 MW Morgantown Generating Station in Maryland, which retired in June. In addition, the 769 MW Palisades nuclear power facility in Michigan retired in June.Operating capacity: Wind generation accounts for the largest share, 34%, of the 15.1 GW of capacity that came online in the United States during the first half of 2022, followed by natural gas, solar, and battery storage. More than 40% of the wind capacity added so far in 2022 is located in Texas, 2.2 GW of the 5.2 GW wind total. The largest renewable projects that came online in the first six months of 2022 include the 999 MW Traverse Wind Project in Oklahoma, the 492 MW Maverick Creek Wind in Texas, and the 440 MW solar and battery storage project at Slate Hybrid in California.Planned capacity: Developers and project planners report plans to add 29.4 GW of new capacity in the United States in the second half of 2022. Nearly half of that planned capacity is from solar (13.6 GW), followed by wind (6.0 GW). As in previous years, many projects plan to come online in December because of tax incentives.Respondents to our survey currently plan to add 3.7 GW less solar capacity in 2022 than what they had expected at the beginning of the year. Pandemic-related challenges in supply chains and a U.S. Department of Commerce tariff investigation are likely causes for this decrease."
Sanctions backfired, as the EU and others are paying higher prices economically throughout, and the inflationary pains inflicted on their citizens is beginning to rile the locals as the higher prices on energy and other essentials skyrocket even higher, and this as the U.S. $ heads towards potential all -time highs, the U.S. will be exporting our inflation once other foreign currencies devalue and become weaker, and the EU is at risk. Their prices will continue climbing for goods / products and essentials.
Economic disaster is inflicting the EU currently, as Russia continues to survive sanctions, how ironic indeed.Ciao
Look what some Europeans are suffering through.www.zerohedge.com/...
"Inflation has exploded all over the world but all I read around here is that it's the current administration's fault."Not sure that anyone has said that the inflation in OTHER countries is the current US administration's fault ( even as there is such a concept as "exporting our inflation" since the USD is the world's reserve currency but let's say that effect is small relative to each countries' own destructive policies ). But it would be equally foolish to say that because there is inflation in other countries that our own domestic policies aren't affecting us adversely here. Time to retire this flawed line of reasoning of spreading the blame globally because it is squid-like rhetoric which desires to lump everyone in the same boat so that everyone is equally "hidden".
For comparison the Irish ratepayers were charged ~ $1,000 per megawatt hour. | NVDA |
https://finnhub.io/api/news?id=929ff99b1fbd9fe5e487e3a2d0cf316baadf709180616f59821f9333b4a5220d | GLOBAL BROKER RATINGS: HSBC cuts LVMH, Hermes; BofA likes SocGen | Looking for stock market analysis and research with proves results? Zacks.com offers in-depth financial research with over 30years of proven results. | 2022-08-31T23:52:00 | Alliance News | This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.
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https://finnhub.io/api/news?id=e45faa8b0e2d396f65c6c7dcda706f6ccb8e4b1ece1fdb4a62f14e629391df39 | China demands US drop tech export curbs after Nvidia warning | BEIJING — The Chinese government on Thursday called on Washington to repeal its technology export curbs after chip designer Nvidia Corp. said a new product might be delayed and some work might... | September 1, 2022 | 2022-08-31T23:11:07 | Finnhub | NVDA
BEIJING (AP) — The Chinese government on Thursday called on Washington to repeal its technology export curbs after chip designer Nvidia Corp. said a new product might be delayed and some work might be moved out of China.
The latest controls add to mounting U.S.-Chinese tension over technology and security. American officials say they need to limit the spread of technology that can be used to make weapons.
Nvidia said it was told Friday it needs a U.S. government license to export any product with performance equal to its A100 graphics processing chips or better to China, Hong Kong or Russia. It said buyers of the A100 and development of the newer H100 might be affected.
China's Commerce Ministry accused Washington of abusing export controls to limit semiconductor sales to China. It said trade curbs would disrupt supply chains and global economic recovery.
“China firmly opposes this,” said a ministry spokesperson, Shu Jueting. “The U.S. side should immediately stop its erroneous practices, treat companies from all countries equally, including from China, and do more to contribute to world economic stability.”
U.S. officials increasingly worry about Chinese technology development as both a strategic threat and a potential challenge to American industrial leadership.
Washington has tightened controls and lobbied allies to limit Chinese access to the most advanced chips and tools to develop its own. China is spending heavily to develop its fledgling producers but cannot make high-end chips used in the most advanced smartphones and other devices.
Nvidia said it may be required to “transition certain operations out of China.” The company said it was asking the U.S. government for exemptions for its development and support activities.
It said it would try to meet Chinese customer needs with products that aren’t subject to license requirements. It said the company may seek a license for customers that need them but “has no assurance” the U.S. government will agree.
Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission., source Associated Press News | NVDA |
https://finnhub.io/api/news?id=334ac6fd5924fe6c63b39ca34979fb08aea3ac670e295bc1d5f269ca169684b8 | MORNING BID-Markets enter The Fall | A look at the day ahead in U.S. and global markets from MikeDolan. Meteorological Autumn is upon us, Monday's Labor Day holidayis in view and world markets are in a sour... | September 1, 2022 | 2022-08-31T23:03:36 | Finnhub | NVDA
A look at the day ahead in U.S. and global markets from Mike Dolan.
Meteorological Autumn is upon us, Monday's Labor Day holiday is in view and world markets are in a sour mood.
With the exception of Japan, short-term bond yields across the G7 continue to surge on a toxic mix of sky-high inflation, increasingly hawkish interest rate expectations and the prospect of a gradual withdrawal of central banks as bidders for bonds as they attempt to unwind their bloated balance sheets.
The sell-off in U.S. Treasuries shows no sign of abating, with markets leaning strongly to another 75 basis point rate rise from the Federal Reserve this month, despite Thursday's surprisingly soft ADP private sector jobs report for August. Markets also now see an 80% chance of a similar hike from the European Central Bank next week too.
Two-year U.S. yields hit a fresh 15-year high of 3.52% overnight and 10-year yields above 3.2% for the first time since June - and euro zone and UK bond yields spiraled higher too. With stocks on the slide across the world again, the S&P500 futures were deep in the red ahead of Thursday's open.
The dollar remains pumped up across the board, but Japan's yen and Britain's pound were in the firing line on Thursday.
With the Bank of Japan determined not to follow its G7 peers in tightening monetary policy and amid yawning bond yield gaps, the yen hit a 24-year low just under 140 per dollar - drawing warnings about excessive currency market volatility from government officials.
The pound skidded to its lowest level against the dollar since the pandemic hit - following its worst month since just after the Brexit referendum in 2016. The fear for Britain is that a winter energy price crunch is aggravating both inflation expectations and deep recession fears and the Bank of England may lag peers in tightening to plow a middle ground, even as it actively sells government bonds from its portfolio.
There was some respite on the energy front on Thursday as crude oil prices ebbed further and German power prices continued their sharp retreat from early week highs.
G7 finance ministers will discuss the U.S. proposal of a price cap on Russian oil when they meet on Friday, the White House said.
The European Commission is also looking into options to cap energy prices and cut electricity demand, as part of its upcoming proposals to tackle soaring energy costs.
Chipmakers may be in focus again after news that the U.S. government has told Nvidia to stop exporting certain chips to China.
And geopolitical tensions between the economic superpowers remained tense. The departing U.N. human rights chief has said detention of Uyghurs in Xinjiang may constitute crimes against humanity, drawing a vigorous denial from Beijing.
Key developments that should provide more direction to U.S. markets later on Thursday: * U.S. August ISM manufacturing survey; weekly jobless claims, revised Q2 labor costs and productivity data * Atlanta Fed chief Raphael Bostic scheduled to speak * U.S. Corporate Earnings:
(By Mike Dolan, editing by Alex Richardson [email protected]. Twitter: @reutersMikeD) | NVDA |
https://finnhub.io/api/news?id=2a138164c232c6237f090ed245d78524d08fa939d6e308bd218ff0fedf03b056 | 2022-08-31T21:57:00 | TipRanks | The growing rivalry between the world’s two largest economies might put about $400 million of Nvidia Corporation’s (NASDAQ:NVDA) third-quarter sales at stake. In an SEC filing, the chip maker recently informed its stakeholders that the U.S. government has imposed new licensing requirements on the future export of its most advanced A100 and upcoming H100 integrated circuits to China (including Hong Kong), and Russia, effective immediately.
According to the filing, the U.S. government intends to keep a check on the national security risk with the new licensing requirement that may arise from the covered products being utilized in or diverted to ‘military end use’ or ‘military end user’ in China and Russia.
Although Nvidia doesn’t sell products in Russia, it estimates that the new requirements by the U.S. government will dent its sales to China by about $400 million in the third quarter of Fiscal Year 2023.
The company’s management stated that the new export rule will hurt its ability to develop H100 in time and may have to move some of its operations out of China.
The largest chip maker by market value in the United States has already been treading through tough times. It has been witnessing plunging Gaming revenues, which were partially getting offset by strong Data Center performance in the second quarter of Fiscal Year 2023. The latest development can hammer the Data Center segment revenue in the future.
What Is the Prediction for NVDA Stock?
NVDA’s average price prediction of $215.18 implies 42.6% upside potential. According to TipRanks, NVDA has a Strong Buy consensus rating based on 23 Buys and seven Holds.
Similarly, financial bloggers are 82% Bullish on NVDA stock, compared to the sector average of 66%.
Contrary to analysts and financial bloggers, hedge funds are apprehensive about NVDA stock. They have sold 456,200 shares of NVDA stock in the last quarter. Retail investors on TipRanks also seem to be sharing a similar stance and have decreased their NVDA stock holdings by 0.6% in the last 30 days.
Tough Times Continue for NVDA Stock
NVDA’s stock came under pressure due to the new export rules and lost about 6.6% in the after-hours trading session on Wednesday. Shares of NVDA have already had a disappointing run in 2022, as they have lost around 49.9% so far this year, in comparison to the wider PHLX Semiconductor Index’s 32.2% fall in the same period.
Read full Disclosure | NVDA |
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https://finnhub.io/api/news?id=88828f3fd7af3f73c02b77c655b12f9c40c7fe17ac36ed076f900c93670460f0 | Dow Gains to Start September, Nvidia Slides—and What Else Happened in the Stock Market Today | Strong economic data reinforced expectations of a hawkish Federal Reserve, but the indexes were able to recover toward the end of the day. | 2022-08-31T21:36:00 | MarketWatch | The stock market began September with a mixed Thursday. Strong economic data reinforced expectations of a hawkish Federal Reserve, but the indexes were able to recover toward the end of the day.
The Dow Jones Industrial Average gained 146 points, or 0.5%. The S&P 500 rose 0.3%, and the Nasdaq Composite declined 0.3%. All three indexes began the day solidly in the red and ended above their low points.
First, here’s the bad news.
Overall, “Markets still perceive good economic news as bad news when it comes to markets and the Fed,” wrote Stefanos Bazinas, execution strategist at New York Stock Exchange.
The market has already been in a bad way. The S&P 500 came into Thursday with a four-day losing streak and is down 8% from the peak of its summer rally, hit in mid-August.
The pullback comes as Fed Chairman Jerome Powell said at the annual Jackson Hole Symposium that the Fed intends on lifting interest rates aggressively, rather than slowing down the pace of rate hikes. The central bank is prioritizing the fight against inflation, potentially at the expense of economic growth.
And more news on the state of the economy hit the wires Thursday. The Institute for Supply Management’s manufacturing index held steady at 52.8 in August, slightly above expectations for a reading of 51.8.
But weekly jobless claims weren’t exactly what markets had wanted. They came in at 232,000, below expectations and below last week’s 237,000. That could indicate strong demand for labor, which could keep inflation elevated—and the Fed serious about lifting rates.
“The hard data clearly points to a still-tight labor market,” wrote Citigroup economist Andrew Hollenhorst. “A tight labor market will continue to exert inflationary pressure on wages, which in turn will drive inflation …the Fed will remain focused on fighting inflation.”
But the big news comes Friday, when the Bureau of Labor Statistics will release the August employment report. Economists are looking for 318,000 jobs to have been added, which would be lower than the 528,000 jobs in July.
“Tomorrow’s jobs report once again carries risks for stocks because if it runs ‘too hot,’ that will increase the prospects of more hikes and, more importantly, delay when markets expect rates will be cut,” wrote Sevens Report’s Tom Essaye.
It also carries a possible reward, which partially explains why the stock market came back a bit in the final hour of trading. The indexes had already dropped precipitously since Powell’s Jackson Hole speech Friday, and if the jobs result comes in anywhere below July’s result, the stock market could rally tomorrow.
“If you get this jobs report to disappoint, you’re going to have a whole bunch of people start to say the Fed isn’t staring to get more hawkish and you’re going see stocks rally tomorrow,” Essaye said.
Elsewhere, the city of Chengdu is locking down as Covid-19 outbreaks prompt citywide testing. Residents have been ordered to stay home.
This is a reminder to markets about China’s zero-covid policy, which will take effect whenever there is a virus breakout. It means that any company that derives a significant portion of sales from China will see lowered sales results until the policy is over.
U.S. stocks with significant China exposure were getting hit Thursday. Wynn Resorts (ticker: WYNN) saw its stocks drop 2.3%, while Las Vegas Sands (LVS) dropped 2.4%. Nike (NKE) saw shares fall, then recover to finish in the green. Estee Lauder (EL) stock dropped 1.3%.
The China issue is also weighing on the price of oil, as the country is a significant buyer of the commodity. WTI crude oil dropped more than 3% and is now below $90 a barrel. That is pressuring oil stocks, with the Energy Select Sector SPDR Fund (XLE) down more than 2%.
Here are some stocks on the move Thursday:
Nvidia (NVDA) tumbled 7.7% in the wake of a filing that revealed the U.S. government has imposed a new licensing requirement covering exports of some of Nvidia’s chips to China, including Hong Kong, and Russia. The chips included in the requirement are used in data centers for artificial intelligence, data analytics, and high-performance computing applications.
C3.ai (AI) plunged 19% after the artificial intelligence software group cut its revenue outlook and said it would overhaul its business model, acknowledging an economic downturn.
Okta (OKTA) fell 34% after the identity software company said that business growth has been affected by unexpected problems with integrating Auth0 after a 2021 merger. News of the integration issues eclipsed what were otherwise better-than-expected quarterly results.
MongoDB (M DB ) was 25% lower after the database software provider said it expects to report a loss for fiscal 2023 that is worse than previous estimates.
Western Digital (WDC) stock dropped 0.6% after getting downgraded to Sell from Hold at The Benchmark Company.
Write to Jack Denton at [email protected] and Jacob Sonenshine at [email protected] | NVDA |
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https://finnhub.io/api/news?id=bc59dcb36d9115c772cd8ed32f1ac9ec48080f328697569835329eee19298f5f | Market Timers, Beware: Now Isn’t the Time to Buy the Dip | Many experts caution that stocks may have further to fall, and investors should be cautious about rushing in to buy beat-up shares of tech companies in... | 2022-08-31T19:30:00 | MarketWatch | While the market’s slide might tempt some bargain hunters, now’s not the time to buy the dip, some experts caution.
In recent days, the stock market has approached its lows of mid-June. Stocks fell sharply last Friday as investors digested Federal Reserve Chairman Jerome Powell’s speech at Jackson Hole, where he reiterated the central bank’s commitment to raising rates to contain inflation even if that meant inflicting “some pain” on families and businesses, and the market’s losses have extended into this week.
Some investors might see these price declines as an opportunity to scoop up highflying stocks whose prices have fallen. In particular, they might be eyeing tech stocks, which outperformed during the long bull market and also got a boost off the June lows.
Yet, there are some problems with this strategy, Dan Suzuki, deputy CIO at Richard Bernstein Advisors in New York, wrote in a recent research note: First of all, this bear market may have a ways to go, and there’s no advantage to rushing in to “be there for the bottom.” What’s more, bear markets always signal a change in market leadership. In other words, yesterday’s winners will not be tomorrow’s winners, so investors shouldn’t be looking for deals in the rearview mirror.
Take tech, for example. High-growth tech stocks are particularly vulnerable to rising interest rates. Just because a stock is a good deal relative to its past price doesn’t mean it’s cheap based on its future earnings potential, said Michael Landsberg, chief investment officer of Landsberg Bennett Private Wealth Management in Punta Gorda, Fla. Nvidia, the semiconductor company, is an example of a stock that’s taken a beating that might look like a good buy on the surface, Landsberg said, when in fact it faces some headwinds.
Defensive sectors such as healthcare, utilities, and consumer staples are currently more attractive than tech and consumer discretionary stocks, Landsberg said. Those who are overweight in tech stocks can take this opportunity to dial back their allocation, he noted.
Investors who want to make tactical allocations right now should prioritize quality, said Quincy Krosby, chief global strategist at LPL Financial, in Charlottesville, Va. That means focusing on companies with a strong cash flow and also a solid record of paying dividends.
Broadly diversified investors should continue to dollar-cost-average into the market through their 401(k) or 529 college savings plan, Landsberg said. That’s not buying the dip, he noted, that’s just buying the broad market when it’s on sale. “When you’re buying everything, you want to buy when there’s uncertainty,” he said.
Write to Elizabeth O’Brien at [email protected] | NVDA |
https://finnhub.io/api/news?id=d803d4912bd07460a40347706cebdc6bd7224b9d227ae35e53bed0a127436f97 | Market Briefing For Thursday, Sept. 1 | 2022-08-31T18:19:00 | TalkMarkets | Sorry, the page you are looking for has been removed. Let's find a better place for you to go. Back to Home | NVDA |
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https://finnhub.io/api/news?id=a3b1bdd7b4cefefee5692e77d9385ba17dbf71971fb2efd05c87a6cb6eb27f9c | Chinese Stocks Helping FANG+ | The FANG+ index is a good, but far from perfect, proxy for mega caps because of the inclusion of Chinese names which face exogenous risks that do not apply to US-based mega-caps. | 2022-08-31T18:05:00 | SeekingAlpha | Chinese Stocks Helping FANG+
Summary
- On a relative basis versus the S&P 500, the NYSE’s FANG+ index has been trending lower since last November around the time of the peak of the growth/Tech trade.
- One important factor to note about the FANG+ Index is the membership of two Chinese mega-cap stocks: Baidu and Alibaba.
- Given the past year and a half’s news slate regarding the potential delisting of Chinese stocks on US equity markets, these two names are in a different boat than the rest of the FANG+ cohort, and that has been reflected in price action.
Originally posted on August 30, 2022
Given the market cap-weighted methodology of the index, the S&P 500 receives outsized impacts from the largest stocks, making mega caps like Apple (AAPL) or Amazon (AMZN) a critical group to look at. The FANG+ index, which tracks some of the largest and most highly traded tech giants, helps to provide a glimpse at the performance of said mega caps. On a relative basis versus the S&P 500, the NYSE’s FANG+ index has been trending lower since last November around the time of the peak of the growth/Tech trade, but it peaked even further back in early 2021. The relative strength line then hit a low in the late spring of this year and has been on the move higher alongside the S&P 500 ever since. In the past few weeks, however, the line has begun to roll over, moving in line with that downtrend.
One important factor to note about the FANG+ Index is the membership of two Chinese mega-cap stocks: Baidu (BIDU) and Alibaba (BABA). Given the past year and a half’s news slate regarding the potential delisting of Chinese stocks on US equity markets, these two names are in a different boat than the rest of the FANG+ cohort, and that has been reflected in price action. Put differently, the FANG+ index is a good, but far from perfect, proxy for mega caps because of the inclusion of Chinese names which face exogenous risks that do not apply to US-based mega caps. Excluding those two, the FANG+ index’s relative strength line versus the S&P 500 peaked far later in late 2021, and the recent turn lower has been a more concrete rejection of a breakout from the recent downtrend.
While delisting risk has generally plagued BABA and BIDU for more than a year, leaving them 70% and 58% below all-time highs respectively, at least in the short term there has been some relief. Headlines out late last week reported the signing of a cooperative agreement for auditing these companies, resulting in a lower - but still real - probability of delisting. As a result, BIDU and BABA have left their peers behind as the only two FANG+ members in the green since the broader market’s August 16th high. For BIDU, that positive performance so far has held in spite of a weak reaction to earnings Tuesday as well. In other words, positive news for Chinese members of the FANG+ stocks has helped to mask a degree of the weakness of one of the more important indicators of broader market health.
Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.
This article was written by
Comments (1) | NVDA |
https://finnhub.io/api/news?id=f7519ed4a0e828af5f1eaa186efa71ed4cae1dca4fd607a24f6b5641235fcdb7 | MORNING BID-Moment in the sun | A look at the day ahead in European and global markets from TomWestbrook Summer may be finished, but the hot sun is helping energyprices off eye-watering highs.... | September 1, 2022 | 2022-08-31T18:00:00 | Finnhub | NVDA
A look at the day ahead in European and global markets from Tom Westbrook
Summer may be finished, but the hot sun is helping energy prices off eye-watering highs. Benchmark German year-ahead power prices have collapsed 35% this week, helped by solar supply and ebbing gas costs.
As Rabobank's Michael Every put it, that brings us from "'nobody can pay' to 'very few can afford to pay' territory."
What a relief! As anyone schlepping back to the desk this week has found, in addition to airport chaos, markets are down, euro zone inflation is at record highs and energy costs have British pubs in an existential crisis.
Another month of contractionary PMIs loom today, and the latest out of Asia has not been great. China's factory activity fell for the first time in three months and there were weak readings in Japan, South Korea and Taiwan.
The yen hit a 24-year low. Asia's stock markets fell for a fifth straight session and U.S. and Europe futures are firmly in the red.
The chill over geopolitics, meanwhile, is deepening as winter approaches. Russia may or may not resume sending gas down the Nord Stream pipe on Saturday. The U.S. has told Nvidia to stop exporting certain chips to China.
The U.N. human rights chief has said detention of Uyghurs in Xinjiang may constitute crimes against humanity, drawing a vigorous denial from Beijing.
Springtime seems a long way away.
Key developments that could influence markets on Thursday:
Economics: European manufacturing PMI and unemployment. U.S. ISM survey
Speakers: ECB's Mario Centeno, Atlanta Fed President Raphael Bostic
(Reporting by Tom Westbrook; Editing by Ana Nicolaci da Costa) | NVDA |
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