15 December 2025 | 5:05AM EST Equity Research AMERICAS TECHNOLOGY: SEMICONDUCTORS 2026 Outlook: The next phase of the AI trade; continued momentum in WFE and cyclical improvement in Analog; Ratings re-stack We see AI spending among hyperscalers continuing to move higher, driving tailwinds for Digital, Memory, Storage, and SPE stocks in 2026. We also see a gradual industrial & automotive recovery driving cyclical tailwinds in Analog. (1) AI infrastructure builds should continue to drive higher CapEx levels a ...

Pre-market futures are averaging out to be flat at this hour, although we’re seeing a wider band of trading. The blue-chip Dow and the small-cap Russell 2000 — up +110 points and +2 points, respectively — are being slightly offset by -103 points on the tech-heavy Nasdaq and -2 on the comprehensive S&P 500 currently.Doubts continue about the levels of AI infrastructure spending, and whether they are sustainable into the new year. On Broadcom’s (AVGO) conference call yesterday afternoon following an otherwise ...

Oracle Corporation (NYSE:ORCL) is a leading technology company known for its software products and services, including database management systems and cloud solutions. The company competes with other tech giants like Microsoft and SAP. On December 10, 2025, Oracle reported earnings per share of $2.26, exceeding the estimated $1.63, but its revenue of $16.06 billion fell short of the expected $16.86 billion.The revenue miss led to a significant decline in Oracle's share price, dropping over 6% in after-hours ...

Group 1 - The core viewpoint is that AI stocks have attracted significant investor interest due to their potential to enhance efficiency and innovation, leading to increased earnings for companies involved in AI [1][4][6] - AI infrastructure, which includes platforms like chips and data centers, is emerging as a major investment opportunity, with companies like Meta Platforms and Tesla investing heavily in this area [2][4] - The demand for AI capacity is expected to drive significant spending, with predictions that AI infrastructure spending could reach $4 trillion in the coming years, highlighting the urgency for companies to secure capacity for AI workloads [7][8] Group 2 - The recognition of AI's potential by companies and governments has led to increased revenue and share prices for various firms, contributing to the overall rise of the S&P 500 [4][5] - The current landscape suggests that AI infrastructure spending could represent the next major investment theme, similar to past technology booms [6][7] - Tech giants like Oracle have reported strong demand for AI workload capacity, indicating a competitive environment for securing necessary resources [7]

19 November 2025 | 10:23PM EST Equity Research Nvidia Corp. (NVDA): Accelerating datacenter compute revenue should sustain upward trajectory for both estimates and the stock - Buy Key stock takeaways: We expect the stock to hold its gains (up 5% in the after market) following a stronger quarter with guidance that came in above Street expectations, against relatively balanced expectations heading into the quarter. Importantly, we believe management provided solid evidence that addressed several key investor ...

Core Viewpoint - Individual investors are preparing for a busy week of earnings reports from major tech companies and retail-trader favorites, with significant attention on SoFi Technologies and other big names in the industry [1]. Earnings Reports Schedule - **Monday, Oct. 27**: Companies reporting after market close include Bed Bath & Beyond Inc. (NASDAQ:BBBY), Waste Management Inc. (NYSE:WM), Nucor Corp. (NYSE:NUE), Avis Budget Group Inc. (NASDAQ:CAR), and NXP Semiconductors N.V. (NASDAQ:NXPI) [2]. - **Tuesday, Oct. 28**: - Before market open: SoFi Technologies Inc. (NASDAQ:SOFI) is expected to report Q3 earnings of $0.08 per share and quarterly revenue of $884.67 million [2]. - After market close: Visa Inc. (NYSE:V), ContextLogic Inc. (NASDAQ:LOGC), Enphase Energy Inc. (NASDAQ:ENPH), and Electronic Arts Inc. (NASDAQ:EA) will report [3]. - **Wednesday, Oct. 29**: - Before market open: Boeing Co. (NYSE:BA) and Verizon Communications Inc. (NYSE:VZ) will report [4]. - After market close: Major tech companies including Meta Platforms Inc. (NASDAQ:META), Microsoft Corp. (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG) will report, focusing on AI infrastructure spending and monetization trends [5]. - **Thursday, Oct. 30**: - Before market open: Apple Inc. (NASDAQ:AAPL) and Roblox Corp. (NYSE:RBLX) will be in the spotlight [8]. - After market close: Amazon.com Inc. (NASDAQ:AMZN) is expected to report earnings of $1.57 per share and quarterly revenue of $177.72 billion [9]. - **Friday, Oct. 31**: The week concludes with Exxon Mobil Corp. (NYSE:XOM) and Chevron Corp. (NYSE:CVX) reporting before market open, with investors looking for guidance on crude oil prices [9][10].

Wealth & Leadership - Larry Ellison's wealth reached nearly $400 billion, surpassing Elon Musk's $385 billion, making him the richest person in the world [1] Stock Performance & Market Cap - Oracle's shares are surging roughly 40% [2] - Oracle is on track for its best day since 1992 [2] - Oracle is nearing $1 trillion in market capitalization [2] Revenue & Growth - Oracle issued an extremely positive outlook specifically for cloud computing infrastructure revenue projections [2] - Oracle is a beneficiary of massive new AI infrastructure spending through the end of the decade [2]

Financial Performance & Estimates - Analyst estimates Nvidia could achieve $8 earnings per share, which, at a multiple of 30, leads to a $240 price target [1][3] - Analyst projects data center revenues to grow from a stretch goal of $200 billion this year to $300 billion next year [3] - Nvidia anticipates a potential $2 billion to $5 billion upside in the October quarter, primarily due to derisking China [7] Market Dynamics & Growth Drivers - Nvidia's CEO envisions $3 trillion to $4 trillion in AI infrastructure spending between now and 2030 [3] - Strong inference demand is driving significant uplift, leading to Nvidia being sold out [5] - Hyperscalers and sovereign entities are investing billions in AI development, contributing significantly to Nvidia's sales [6] Inventory & Supply Chain - Inventory is up 93% year-over-year, which is attributed to gearing up the supply chain for a fast and accelerating Blackwell ramp [4][6] - The company is experiencing supply constraints and cannot build fast enough to meet demand [5] China Market - China is currently not included in Nvidia's guidance [6] - Nvidia hopes to work with the US administration and China to sell its platform in China [7][8] Stock Performance & Investor Sentiment - The stock is down slightly despite a stellar report, possibly due to not being "100% clean," but is up 80% in the last 6 months [9][10] - Investors are generally not selling, and some would add to their positions if the stock pulls back further [10]

Core Insights - Nvidia reported $46.74 billion in revenue and adjusted earnings per share of $1.05 for Q2 2025, exceeding analyst expectations, and forecasted Q3 sales of approximately $54 billion [1][9] - Despite strong earnings, Nvidia's shares declined due to data center revenue falling short of forecasts for the second consecutive quarter and signs of slowing growth [1] Group 1: China Market Uncertainty - H20 chip shipments to China remain uncertain, with CFO Colette Kress stating no shipments have occurred this quarter, despite some customers receiving licenses [3] - Potential shipments worth $2 to $5 billion could occur if restrictions ease, but this revenue has been excluded from the Q3 forecast [3] - CEO Jensen Huang emphasized the importance of the Chinese market, noting it is home to about 50% of the world's AI researchers [4] Group 2: Sales Outlook and Stock Reaction - Nvidia projected Q3 revenue at $54 billion with a 2% margin, surpassing the analyst expectation of $53.4 billion [9] - The company announced an additional $60 billion in stock buybacks, but concerns about slowing growth have led to comparisons with Tesla's past performance [10] - Current growth rate is at 50-55%, significantly lower than the 100%+ revenue growth from the previous year, impacting stock momentum [10] Group 3: AI Infrastructure Spending - Nvidia anticipates $3 to $4 trillion in AI infrastructure spending by 2030, viewing it as a significant long-term growth opportunity [11] - JPMorgan noted strong near-term AI fundamentals driven by hyperscale capital expenditure, indicating robust growth forecasts in the sector [12] Group 4: Robotics and Future Growth - Robotics is expected to drive future growth, with Nvidia's CFO stating that robotic applications require significantly more compute power [13] - The Jetson AGX Thor platform has seen rapid adoption, with over 2 million developers utilizing it, and automotive revenue increased by 69% year-over-year to $586 million [14] Group 5: Next-Generation Chips - Nvidia's next-generation Rubin chips are on track for volume production in 2026, which is anticipated to generate significant revenue [15] - The manufacturing process for Rubin has begun, aligning with Nvidia's annual product cadence and innovation strategy [16]

Group 1 - Nvidia's stock has rebounded significantly, increasing by 93% from its lows earlier this year, with a current market capitalization of $4.4 trillion, making it the most valuable company globally [2][17] - The primary revenue source for Nvidia is its computing and networking business, which includes data center services and GPUs [3] - Major tech companies are increasing their spending on Nvidia's chips, driven by the rising demand for AI infrastructure [6][10] Group 2 - The evolution of AI infrastructure spending is broadening, with new opportunities emerging in areas such as robotics, autonomous driving, and quantum computing [8][9] - Nvidia is scaling up its chips and CUDA software platform to capitalize on these emerging opportunities, indicating strong future growth potential [10][16] - The forward price-to-earnings (P/E) ratio for Nvidia is expected to remain between 24 and 30, suggesting a valuation floor that supports long-term growth despite market fluctuations [13][14] Group 3 - If Nvidia's forward P/E expands to historical highs by the end of the year, the stock price could exceed $200, potentially reaching $220, indicating a projected increase of 10% to 20% [17]