There's nothing particularly magical about a 10% drop in a stock market index. It is just a number, like any other. But it still stirs up emotions, particularly the fear of losing money. That's a very powerful motivator, and with the Nasdaq Composite off by more than 10% as of this writing, fear is in the air today.If you feel like you need to find some "safe" (or least safer) stocks, try looking at reliable dividend payers like PepsiCo (PEP -2.51%), Enterprise Products Partners (EPD -1.43%), and Black Hill ...

In times of market turmoil -- like now -- two ideas in particular stand out: the need to own some "safe" stocks, or those that can hold up under pressure, and the opportunity to buy stocks, after declines, for a great price.Though the Nasdaq soared in the double digits over the past two years and even showed positive momentum in the first weeks of the year, recent times have been tougher. President Donald Trump announced tariffs on imports from Canada, China, and Mexico -- the U.S.'s biggest trading partner ...

Core Viewpoint - The recent sell-off in AI stocks, particularly Nvidia, presents a buying opportunity for long-term investors despite a 30% decline from its all-time high [1] Group 1: AI Adoption and Market Potential - The AI industry is still in its early stages of adoption, with significant spending expected on AI-related hardware by 2025 [2][3] - Nvidia's GPUs are essential for AI training and inference, making them the preferred choice for AI infrastructure [2] Group 2: Technological Advancements - Nvidia's new Blackwell architecture significantly enhances performance, allowing AI models to be trained four times faster and achieving 30 times greater inference speeds compared to the previous Hopper architecture [4][5] Group 3: Revenue Growth - Nvidia has demonstrated substantial revenue growth, with a 265% increase in fiscal year 2024 and a projected 114% increase in fiscal year 2025, followed by an expected 56% growth in fiscal year 2026 [6][7] - Despite a decrease in percentage growth, the absolute revenue increase is accelerating, indicating strong and growing demand for AI [7] Group 4: Margin Recovery - Initial concerns about declining gross margins are attributed to ramping up Blackwell production, with expectations for margins to recover to the mid-70% range as production efficiency improves [8][9] Group 5: Stock Valuation - Nvidia's stock is currently reasonably priced, with its trailing price-to-earnings (P/E) ratio at levels not seen since 2019, and a forward P/E of 25 suggests it is an attractive investment opportunity [11][12]

Group 1: Market Context - The Nasdaq Composite Index has dropped 13% below its previous high, entering correction territory [1] - Many investors are exhibiting fear in the current market environment [1] Group 2: Investment Activities - Berkshire Hathaway initiated a new position in Domino's Pizza, acquiring approximately 1.28 million shares in Q3 2024 and an additional 1.1 million shares in the following quarter [3][4] - Domino's stock has declined roughly 10% from its peak this year, and its current share price is slightly below the average level since Q3 [4] - Domino's Pizza's board repurchased $112 million of its stock in Q4 2024 and has $814.3 million authorized for further buybacks [6] Group 3: Valuation and Investment Rationale - Domino's Pizza trades at a forward earnings multiple of 25.5, which is considered high, but Buffett has previously invested in high-quality businesses with solid growth prospects [5] - Sirius XM Holdings is viewed as a potential favorite for Buffett, with Berkshire owning 35.4% of the company and shares trading below 8x forward earnings [7] - Sirius XM has a price-to-earnings-to-growth (PEG) ratio of 0.66, indicating an attractive valuation [7] Group 4: Dividend and Cash Flow - Sirius XM offers a forward dividend yield of 4.53%, which is appealing to Buffett despite Berkshire not paying dividends [9] - Recent regulatory filings indicate that Buffett has been buying shares of Sirius XM in 2025 [10] Group 5: Investment Strategy - While Buffett is likely purchasing shares of Domino's Pizza and Sirius XM, it is suggested that he is not overly aggressive in deploying Berkshire's cash reserves [11] - Overall stock valuations remain high, and Buffett may wait for more significant market fear before making larger investments [12]

Although Warren Buffett can't predict the future, he almost certainly wasn't surprised by the Nasdaq Composite (^IXIC -0.18%) falling into correction territory. In fact, based on the investment decisions he and his team have been making at Berkshire Hathaway (BRK.A -0.03%) (BRK.B -0.17%), it seems likely that he was rather expecting something like this to happen at some point. But the real takeaway for investors from the correction and from Buffett is much bigger than just a few months of stock performance. ...

The Nasdaq-100 index is home to 100 of the largest technology companies listed on the Nasdaq stock exchange. It's coming off a barnstorming two-year run, returning 53.8% during 2023 and a further 24.8% in 2024, but it's currently approaching correction territory with a drop of 9% from its record high. Market downturns can be unsettling, but they are a normal part of investing. In fact, history shows they produce the best buying opportunities, because U.S. stock indexes like the Nasdaq-100 have always climbe ...

Group 1: Nvidia - Nvidia reported a 78% increase in revenue to $39 billion in Q4, driven by strong demand for AI hardware in the data center segment [3] - Non-GAAP net income rose 71% to $0.89 per diluted share, although gross margin declined by 3 points [3] - Concerns about AI infrastructure spending have been alleviated, with DeepSeek's efficient training methods potentially increasing demand for Nvidia chips [4] - The durability of the AI boom positions Nvidia favorably, especially with the rise of physical AI technologies [5] - Nvidia's GPUs are the leading AI accelerators, supported by a robust software ecosystem, particularly the CUDA platform [6] - Despite a nearly 30% decline from its peak, Nvidia's stock is currently trading at 24 times forward earnings, the lowest valuation in the past year, making it attractive for patient investors [7] Group 2: Amazon - Amazon's total revenue increased by 10% to $187 billion in Q4, with GAAP net income rising 86% to $1.00 per diluted share [8] - The company is well-positioned in three growing industries: online retail, advertising, and cloud services, aiming to become the world's largest retailer by 2025 [9] - Morgan Stanley analysts view Amazon as an underappreciated leader in generative AI within retail and cloud services, expecting it to capture a larger share of consumer spending [10] - Amazon's stock has fallen 20% from its high, but adjusted earnings are projected to grow 14% in 2025, making the current valuation of 35 times adjusted earnings appear relatively expensive [11]

In recent years, investors showed their optimism about the future by flocking to high-growth stocks -- and that pushed the prices of some of these players into the stratosphere. The idea was these companies would benefit from a potentially lower interest-rate environment ahead, and, in many cases, the development of artificial intelligence (AI).And speaking of AI, companies connected to AI in particular stood out, their stocks advancing in the double and triple digits, helping fuel double-digit increases in ...

Group 1: Market Overview - The stock market has experienced a rocky start to 2025, with major market indexes declining due to concerns over President Trump's tariff policies potentially leading to a recession [1] - The tech-centric Nasdaq Composite has fallen more than 10% year to date [1] Group 2: Investment Opportunities - Market sell-offs can present opportunities to invest in strong companies that are currently underestimated [2] - Nvidia is highlighted as a leading supplier of chips for AI data centers, with its share price down 20% year to date, presenting an attractive buying opportunity [3][5] - Amazon is also recommended as a stock to buy on the dip, benefiting from its dominance in the $4 trillion e-commerce market and long-term growth in its cloud computing business [8] Group 3: Nvidia Insights - Nvidia's revenue doubled to $130 billion last year, with 88% from data center sales, indicating strong demand despite potential tariff impacts [5] - Nvidia offers a complete system of hardware and software for AI research, contributing to its dominant position in the data center market [6] - The current price-to-earnings (P/E) ratio for Nvidia is 24, compared to the S&P 500 average of 28, suggesting good value for investors [7] Group 4: Amazon Insights - Amazon has over 200 million Prime members, providing a strong customer base for its e-commerce platform [8] - Amazon Web Services (AWS) generated $115 billion in annualized revenue, contributing significantly to Amazon's operating profit [10] - Amazon's operating cash flow increased by 36% to $116 billion last year, indicating improved profitability [11] - The stock trades at 18 times trailing cash from operations per share, below its five-year average of 25, suggesting solid long-term value [12]

The Nasdaq entered correction territory earlier this week, and a number of leading artificial intelligence (AI) semiconductor stocks have been swept up in the market downturn. However, spending on AI infrastructure has not suddenly dried up, and in fact it is still on the rise.The three big cloud computing companies, for example, have budgeted spending a combined $250 billion in capital expenditures (capex) this year largely related to AI infrastructure. Meanwhile, a group of companies led by OpenAI and Sof ...