Market Overview - The Nasdaq Composite Index experienced a 4% drop on March 10, marking the worst one-day decline since fall 2022, which may be alarming for newer investors [1] Company Analysis: AMD - AMD has transformed into a diversified semiconductor company, designing chips for various applications including data centers and gaming systems [3] - Despite trailing behind Nvidia in the AI accelerator market and struggling in the gaming segment, AMD's financials are improving, with 80% of its business growing rapidly [4][6] - In Q4 2024, AMD reported revenue of $7.7 billion, a 24% year-over-year increase, with the data center segment experiencing a 69% revenue increase [5] - The client segment, which produces PC chips, accounted for about 30% of revenue and saw a 58% rise [5] - AMD's trailing P/E ratio is around 98, but the forward P/E ratio is about 21, indicating potential for recovery as the market recognizes AMD as a growth stock [7] Company Analysis: Roku - Roku's recovery story may seem less convincing compared to AMD, with the stock down 86% from its 2021 peak, raising concerns about profitability [8] - The shift from traditional TV to streaming continues to benefit Roku, which derives most of its revenue from advertising [9] - Roku's platform engagement is improving, with 90 million households on the platform, a 12% increase from last year, and streaming hours rising 18% [10] - In Q4 2024, Roku's revenue rose 22% year-over-year to $1.2 billion, with average revenue per user (ARPU) increasing by 4% to $41.92 [12] - Roku currently has no P/E ratio due to elusive profitability but trades at a low price-to-sales (P/S) ratio of 2.5, suggesting potential for stock recovery as ARPU growth continues [13]

The artificial intelligence (AI) chip giant's stock is trading at an attractive valuation.Nvidia (NVDA 5.20%) stock has been a fantastic medium- and long-term winner and even a winner over the last year. But shares of the artificial intelligence (AI) chip and technology leader have been having a tough time recently. Nvidia stock closed at $108.76 on Tuesday, March 11, which represents a decline of 19% in 2025 and a drop of 27.2% from its all-time closing high of $149.43, reached on Jan. 6 of this year.For c ...

Nasdaq Sell-Off - The Nasdaq has entered correction territory, dropping over 10% from its December peak [1][2] - Concerns about an imminent recession, ongoing tariff wars, and potential government shutdowns have contributed to the decline [2] Company Analysis: Alphabet - Alphabet's Google Cloud segment has seen a significant increase in revenues and operating income, indicating a shift towards profitability [3][4] - The company plans to invest $75 billion in building data centers this year, up from $52.5 billion last year, to capitalize on AI growth opportunities [4] - The Google Services segment also reported double-digit revenue growth, with an expected earnings growth rate of 10.7% for the current year [5] Company Analysis: Amazon - Amazon Web Services (AWS) has become a profitable unit, with a 19% revenue increase last quarter, making it the fastest-growing segment [6][7] - The company has invested over $100 billion in AI infrastructure and developed its own AI chip to reduce costs [7] - Amazon's expected earnings growth rate for the current year is 14.3% [7] Company Analysis: NVIDIA - NVIDIA maintains a competitive edge in the GPU market, with high demand for its CUDA software platform [8] - The new Blackwell chips have experienced strong demand, and the company is well-positioned to support AI growth [9][10] - NVIDIA's estimated earnings growth rate for the current year is 46.8% [10]

With the Nasdaq Composite hitting correction territory earlier this week, which is defined as at least a 10% decline from a recent high, investors may be getting worried. That's normal. In fact, there are a number of things to be nervous about in the near term. The threat of trade wars and a potential economic recession have helped push stocks lower.However, that does not mean that investors should panic and dump all their stock investments. There are a few reasons for this. One is that market corrections a ...

The start of 2025 has proven to be more challenging for investors compared to the stock market's record-breaking highs of 2024. The Nasdaq Composite index is down approximately 13% from its all-time high, amid renewed jitters regarding the strength of the economy and uncertainty over the effect of trade tariffs being implemented by the Trump administration.Investors seeking some relief from the volatility should take a closer look at index constituent PepsiCo (PEP -2.51%). Shares of the packaged foods giant ...

With fears of a trade war and a potential economic recession rising, the Nasdaq Composite has fallen into correction territory, retreating more than 10% from its mid-December high. With this decline, a number of quality stocks have fallen to attractive entry points.Two stocks that stand out are Meta Platforms (META 1.29%) and Alphabet (GOOGL -1.10%) (GOOG -1.09%). The companies are the largest digital advertising companies in the world. While a weakened economy would hurt their advertising revenue in the sh ...

Group 1: Honeywell International - Honeywell plans to split into three publicly traded businesses, which may outperform as individual entities based on successful examples from peers [2][7] - The focus is on Honeywell Aerospace and Honeywell Automation, with management citing peers like GE Aerospace, RTX, and TransDigm, all of which have undergone significant corporate changes [3][5] - Honeywell Aerospace will gain flexibility for acquisitions to enhance its portfolio, while Honeywell Automation will focus on industrial and building automation, competing with companies like Emerson Electric and Rockwell Automation [4][5] Group 2: Hexcel Corporation - Hexcel specializes in advanced graphite composites, which are increasingly used in the aerospace industry, providing long-term growth prospects due to rising airplane production and composite content [9][10] - Despite recent challenges from Boeing and Airbus falling behind production schedules, Hexcel's valuation has declined, allowing investors to buy at 19 times its estimated 2025 free cash flow, which is favorable given its growth potential [11][12]

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 ...

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]

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 ...