Core Viewpoint - Semiconductor companies, particularly Nvidia, have experienced significant stock performance due to the rise of AI adoption, but concerns about valuations and potential corrections loom [1]. Group 1: Nvidia's Performance and Market Position - Nvidia's year-to-date returns stand at 188.08%, with current shares trading at $138.76, reflecting a 3.61% loss over the past week [1]. - The company's market capitalization is approximately 12% of the United States GDP, raising concerns about overvaluation and the possibility of a market correction if AI is in a bubble [1]. Group 2: Risks from Super Micro Computer (SMCI) - SMCI, a key customer for Nvidia, faces potential delisting due to regulatory noncompliance, which could trigger a selloff of Nvidia shares [2]. - Nvidia's revenue is highly concentrated, with 46% coming from just four customers, and SMCI is estimated to account for nearly 9% of Nvidia's revenue [3][4]. Group 3: SMCI's Recent Troubles - SMCI's stock plummeted by 30% following allegations of accounting fraud and the resignation of its auditor, Ernst & Young [5]. - The company is at risk of being delisted on November 16, coinciding with Nvidia's Q3 2025 earnings report, which could negatively impact investor sentiment regarding AI spending [6]. Group 4: Nvidia's Strategic Response - Nvidia is reportedly shifting orders away from SMCI to other customers, mitigating the impact of SMCI's potential downfall [7]. - Demand for Nvidia's latest Blackwell architecture chips is extremely high, with products sold out for the next 12 months, suggesting that Nvidia can compensate for any revenue loss from SMCI [8].

Advanced Micro Devices (NASDAQ: AMD) recently reported its fiscal Q3 earnings, revealing a mixed bag that left investors divided.The company’s earnings per share met expectations at $0.92, while revenue exceeded predictions at $6.8 billion, compared to the anticipated $6.7 billion.Despite these positive results, AMD’s stock tumbled over 9% following a conservative Q4 revenue outlook of $7.2 billion to $7.8 billion, below Wall Street’s midpoint estimate of $7.55 billion. AMD one-month stock price.Source: Fin ...

Eli Lilly (NYSE: LLY), one of the U.S.’s foremost pharmaceutical giants, faced a sharp 8% drop in its stock price after reporting disappointing third-quarter results, erasing nearly $70 billion from its market value.The pharmaceutical giant missed both earnings and revenue expectations, prompting several analysts to lower their price targets.LLY five-day stock price chart. Source: FinboldAt the time of writing, LLY stock is down over 8% in the 5-day chart to its press-time price of $818. Sales miss sparks i ...

Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A) has made another significant reduction in its Apple (NASDAQ: AAPL) holdings, marking four consecutive quarters of sell-offs in its largest equity stake. According to Berkshire’s Q3 2024 earnings report, the Omaha-based conglomerate held $69.9 billion in Apple shares at the end of September, a stark decrease from its peak value of $174.3 billion in late 2023.The recent sale trimmed Berkshire’s Apple stake by nearly 25%, reducing it to approximately 400 millio ...

Microsoft’s (NASDAQ: MSFT) stock technical setup is signaling more losses ahead as the equity faces bearish pressure, with investors digesting the company’s Q3 earnings report.In the last trading session, MSFT attempted a recovery, ending the day up almost 1% at $410.37. The recent sell-off has seen the stock drop nearly 5% on the weekly chart.MSFT one-day stock price chart. Source: Google Finance Looking at the technical indicators, MSFT has formed its first death cross since March 2022. Notably, this char ...

As Amazon’s (NASDAQ: AMZN) share price approaches the $200 resistance level following impressive Q3 earnings, the stock has witnessed significant insider trading activity.Specifically, Amazon founder and executive chairperson Jeff Bezos is escalating his stock-selling spree for 2024, this time offloading over $3 billion worth of the company’s shares in a recent transaction, according to regulatory filings on November 1.Jeff Bezos stock sale filing. Source: SECThe latest sale involved over 16 million shares ...

Nvidia (NASDAQ: NVDA) is set to officially join the 30-member Dow Jones Industrial Average (DJIA) on Friday, November 8, replacing Intel (NASDAQ: INTC), which has held its spot in the index since 1999. This shift, announced by S&P Dow Jones Indices after the market closed on November 1, reflects a move to align the DJIA more closely with the evolving semiconductor industry, particularly the rising prominence of artificial intelligence (AI).For Nvidia investors, this inclusion holds substantial implications, ...

On November 1, shares of electric vehicle maker Tesla (NASDAQ: TSLA) opened at $252.34 before dropping to an intraday low of $250. However, shortly after, the stock began a gradual climb upward as co-founder and CEO Elon Musk took to X.Tesla’s full self-driving (FSD) technology is now almost entirely artificial intelligence — as per the response Musk made to a 2022 video where the innovator predicted such an outcome.Tesla FSD is now almost entirely AI https://t.co/mMtgz4r0q1— Elon Musk (@elonmusk) November ...

Semiconductor titan Nvidia (NASDAQ: NVDA) is one of the best-performing stocks of 2024, lagging behind only AI sympathy play Vistra Corp (NASDAQ: VST).The company has managed to secure outsized returns propped up by increasing AI demand from key industries. Nvidia now has a market capitalization equal to roughly 12% of the United States GDP. At press time, NVDA shares are trading at $136.84 — after shedding 3.08% on the weekly chart on account of broadly disappointing earnings and guidance from the tech sec ...

Analysts typically consider a range of factors when revising stock forecasts, including Nvidia’s strides in AI technology, its expanding footprint in data centers, and the growing demand for its GPUs within AI and machine learning applications. Upward revisions in recent months have reflected Nvidia’s strong positioning in the AI chip market, with innovative products like the H100 Tensor Core GPU enhancing its competitive edge. As industries continue adopting AI-driven solutions, demand for Nvidia’s hardwar ...