Could Nvidia extend its enormous gain?Nvidia's (NVDA 2.57%) shares are on fire -- but this isn't a short-term phenomenon. The chip designer's stock has been on the rise for a few years. It took off in 2020, and since that time, it's soared more than 1,600%.Investors have piled into the stock on optimism about the company's position in artificial intelligence (AI), a market forecast to grow in the double digits to more than $1 trillion by the end of the decade. Today, Nvidia is the world's AI chip leader, wi ...

Plowing $9 billion into a manufacturing facility could help a successful tirzepatide launch reach new heights.Eli Lilly (LLY -0.13%) stock is already up by about 90% over the past year, and it could climb even higher. BMO Capital analyst Evan Seigerman recently raised his price target to $1,001 per share, which implies a gain of about 24% from recent prices.Seigerman recently noted that soaring demand for Eli Lilly's weight management drug, Zepbound, is outpacing supply. The company plans to improve on the ...

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

Core Insights - xAI is developing a supercomputer utilizing 100,000 Nvidia H100 AI chips [1] Company Impact - The news highlights a significant demand for Nvidia's H100 AI chips, indicating strong market interest and potential revenue growth for Nvidia [1] Industry Trends - The construction of a supercomputer by xAI reflects the increasing trend towards advanced AI capabilities and the growing reliance on high-performance computing in the tech industry [1]

These quality companies can pay you passive income for the rest of your life.Investing in leading consumer brands can be a rewarding dividend investment strategy. History shows that brands that become household names tend to stay that way and keep growing for years.Some of the best income investments may be companies where you shop routinely, which can give you insights about the company's competitive position that Wall Streeters may not fully understand.To give you some ideas, read why three Motley Fool co ...

Core Insights - Apple is poised to unveil its AI development and partnerships at the upcoming Worldwide Developers Conference (WWDC) starting June 10, which is expected to have significant implications for its stock [2] Group 1: AI Development and Features - Apple's AI strategy emphasizes data privacy and security, with most AI features designed to operate on personal devices [3] - The company has developed its own large language model (LLM) capable of summarizing notifications, providing news synopses, and transcribing voice memos, among other features [3] - Future improvements in on-device AI capabilities could position Apple as a leader in the next phase of AI development, focusing on privacy and security [3] Group 2: Partnerships and Collaborations - Apple has partnered with OpenAI to integrate its technology into the next version of iOS and is in discussions with Google regarding the use of its Gemini model [4] Group 3: Competitive Advantage in Chip Development - Apple is utilizing its own chips, specifically the M2 Ultra and potentially the M4 chips, in its AI data centers, which allows for cost savings and reduced bottlenecks compared to competitors reliant on Nvidia [5][6] - The use of the same chips for training its LLM as in its devices enhances the potential for future on-device AI capabilities [6] Group 4: Implications for Sales and Revenue - The introduction of new AI features may encourage a significant portion of Apple's 2.2 billion user base to upgrade their devices, particularly as many iPhones in the U.S. are over two years old [7] - Advanced AI capabilities could lead to the creation of new AI-powered apps, potentially resulting in an "AI App Store" and increased services revenue for Apple [8] Group 5: Stock Performance and Valuation - Despite approaching all-time highs, Apple's stock remains attractive due to its substantial share repurchase program, strong net cash position, and positive long-term earnings growth outlook [9]

Target seems to be falling behind Walmart in the U.S. market.Target (TGT 0.57%) recently posted its latest earnings report. For the first quarter of fiscal 2024, which ended on May 4, the retail-giant's revenue fell 3% year over year to $24.53 billion but still roughly matched analysts' expectations. Its comparable-store sales dropped nearly 4%, which marked the fourth consecutive quarter of declining comps.On the bottom line, adjusted earnings per share (EPS) dipped 1% to $2.03 and missed the consensus for ...

Group 1: Taiwan Semiconductor Manufacturing (TSMC) - TSMC is a leading chip foundry with a net profit of nearly $27 billion on $69 billion of revenue last year, reflecting a strong competitive position [2] - The company is experiencing a 5% revenue decline in Q1 compared to Q4, primarily due to weak end-market demand, although AI chip demand remains strong [2][3] - TSMC's earnings per share are projected to grow at an annualized rate of 22% over the next several years, supported by the demand for Nvidia's GPUs and a potential recovery in other markets [3] Group 2: Uber Technologies - Uber has over 7 million drivers and couriers, with double-digit growth in trips, monthly active customers, and revenue, indicating strong demand in its mobility business [4] - The number of trips grew by 21% year over year in Q1, and the company is expanding its platform to include more restaurants and grocery deliveries while managing costs [4] - Wall Street projects Uber's earnings to grow at an annualized rate of 45%, with an EPS estimate of $4.30 by 2026, suggesting significant upside potential for investors [5]

Core Viewpoint - Alphabet is positioned as a potential long-term investment opportunity, capable of generating significant wealth over decades, unlike many other stocks that may not withstand market fluctuations [1][6]. Investment Performance - An investment of $15,000 in Alphabet at its IPO in 2004 would have grown to over $1 million, while the same amount in the S&P 500 ETF would yield only $105,000 [1]. - The S&P 500 index has shown a compound average return of 10.3% over 20 years, illustrating the power of consistent, modest investments [2]. Investment Strategy - A hypothetical investment of $100 per month for 44 years in an S&P 500 index ETF could result in approximately $1.07 million at retirement, demonstrating the effectiveness of long-term, disciplined investing [3]. - The strategy of setting up automatic investments in diversified mutual funds or ETFs is highlighted as a viable approach for building wealth over time [4]. Company Resilience - Alphabet is identified as a rare company likely to thrive over decades due to its flexible business model and diverse revenue streams, including online search, advertising, Android, YouTube, and Google Cloud [6][7]. - The company is also exploring innovative sectors such as self-driving technology and health data, which could contribute to its long-term growth [6]. Future Outlook - Alphabet's ability to adapt and innovate positions it to potentially outperform the S&P 500's long-term returns, which could accelerate wealth accumulation for investors [7]. - A slight increase in return rates could significantly enhance portfolio value over time, with projections indicating a potential $1.5 million portfolio if returns exceed the average by just one percentage point [7].

Core Insights - Walmart reported better-than-expected fiscal first-quarter results, leading to a stock increase of approximately 10% [1] - The company is well-positioned to benefit from inflationary pressures on consumers, leveraging its low-price model and growing e-commerce segment [1] E-commerce Growth - Walmart's e-commerce sales increased by 21%, with home delivery growth surpassing store pickups for the first time [2] - The combination of traditional in-store sales and rising e-commerce performance enhances Walmart's competitive position against Amazon [2] Consumer Spending Trends - The cost disparity between dining out and eating at home is significant, with eating out being roughly 4.3 times more expensive, benefiting Walmart's business [2] - Foot traffic for fast food and fast-casual restaurants declined by 3.5% in the first quarter, indicating a shift in consumer spending habits [3] Financial Performance - Walmart's revenue for the latest quarter was $161.5 billion, reflecting a 6% year-over-year increase, while adjusted earnings per share rose by 22.4% to $0.60 [4] - The company revised its full fiscal year adjusted earnings guidance to the high end of the previous range, indicating strong future performance [4] Competitive Advantage - Walmart's pricing advantage is approximately 25% lower than traditional supermarkets, attracting a broader demographic, including higher-income shoppers [5] - The company is experiencing growth in comparable store sales and expanding its e-commerce operations at double-digit rates, focusing on essential products like groceries [5]