Nvidia's latest sell-off highlights how heavily its lofty valuation depends on a few hyperscale customers.Shares of Nvidia (NVDA +1.37%), the leading supplier of artificial intelligence (AI) accelerators for data centers, were knocked down hard this week when reports circulated that social media company Meta Platforms (META 0.41%) may be considering a chip deal with Google parent Alphabet (NASDAQ: GOOGL) (GOOG 0.96%) to help power some of its data centers beginning in 2027. This news may have caught Nvidia ...

Core Viewpoint - The semiconductor industry is poised for long-term growth, driven by advancements in artificial intelligence (AI), with significant investment opportunities available through exchange-traded funds (ETFs) like the VanEck Semiconductor ETF [1][11]. Investment Strategy - Investing in infrastructure related to AI is preferred over selecting individual companies, as diversification across a basket of stocks in a hot sector can mitigate risks [2][3]. VanEck Semiconductor ETF Overview - The VanEck Semiconductor ETF tracks the MVIS US Listed Semiconductor 25 index, focusing on the largest and most liquid semiconductor companies in the U.S. [4]. - The ETF has shown a strong performance, with a 38% gain in 2025 compared to a 17% gain for the Nasdaq Composite [4]. Top Holdings - Nvidia is the largest holding in the ETF, with an 18.5% weighting, followed by Taiwan Semiconductor Manufacturing, Broadcom, Micron Technology, and Advanced Micro Devices, which collectively represent nearly half of the ETF [5][6]. - Nvidia specializes in graphics processing units (GPUs) for AI workloads, while Advanced Micro Devices provides central processing units (CPUs) essential for data center operations [6]. Company Contributions - Broadcom is involved in designing AI accelerators and has partnered with OpenAI for custom AI solutions [7]. - Micron produces dynamic random access memory (DRAM) critical for AI applications, and Taiwan Semiconductor is a leading chip manufacturer for various companies [8]. Expense Ratio and Value Proposition - The VanEck ETF has an expense ratio of 0.35%, which is competitive given its focused nature and the high returns associated with the semiconductor sector [9]. - The global AI market is projected to grow from $279 billion in 2024 to $3.5 trillion by 2033, indicating a compound annual growth rate (CAGR) of 31.5% [10]. Long-term Outlook - While the ETF may not consistently double market returns, it is expected to outperform the broader market over the long term, supporting investors' retirement savings goals [11].

Nvidia Corp. delivered a surprisingly strong revenue forecast and pushed back on the idea that the AI industry is in a bubble, easing concerns that had spread across the tech sector.The world’s most valuable company expects sales of about $65 billion in the January quarter — roughly $3 billion more than analysts predicted. Nvidia also said that a half-trillion-dollar revenue bonanza due in coming quarters may be even bigger than anticipated. The outlook signals that demand remains robust for Nvidia’s artif ...

Core Viewpoint - Nvidia's upcoming earnings report is highly anticipated as it will reflect the company's performance in the AI chip market, which significantly influences market sentiment [1][2]. Recent Performance and Outlook - In Q2 of fiscal 2026, Nvidia's revenue increased by 56% year-over-year to $46.7 billion, driven by strong demand for data center chips, which also saw a 56% year-over-year rise to $41.1 billion [4]. - Non-GAAP earnings per share rose by 54% year-over-year to $1.05, indicating robust volumes and high gross margins [4]. - For Q3 fiscal 2026, Nvidia expects revenue of approximately $54 billion, representing about 54% year-over-year growth compared to $35.1 billion in the same period last year [6]. Market Dynamics - The AI race is central to Nvidia's strategy, with the Blackwell platform being a key focus for growth [5]. - Despite impressive growth, the pace is moderating compared to previous quarters, which saw year-over-year growth rates of 94% and 78% [6]. Valuation and Risks - Nvidia's current market capitalization is around $4.6 trillion, with a price-to-earnings ratio of 53, indicating high expectations for continued strong growth [11]. - Risks include potential slowdowns in revenue growth due to capital spending cycles, competition from cloud giants designing their own AI chips, and geopolitical factors affecting demand [9][10]. - The stock reflects significant confidence in sustained customer spending, but there is a risk of a valuation reset if growth slows unexpectedly [11][12]. Investment Considerations - For long-term investors willing to accept volatility, a small position in Nvidia may be justified as part of a diversified portfolio [13]. - More cautious investors might consider waiting for a more favorable entry point [13].

RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its “RiverPark Large Growth Fund” Q3 2025 investor letter. A copy of the letter can be downloaded here. U.S. equity markets recorded strong gains in the third quarter, with the S&P 500 Total Return Index rising 8.12% and the Russell 1000 Growth Index returning 10.51%. The fund also surged in the quarter and returned 4.73%. Market leadership was narrow in the quarter, with a few mega-cap tech and con ...

Advanced Micro Devices (AMD) shares rallied on Wednesday after the AI chips specialist said its data center revenue will grow by 60% annually over the next three to five years. In an interview with CNBC, the company’s chief executive, Lisa Su, also downplayed concerns of overspending on artificial intelligence, saying “I think it’s the right gamble.” More News from Barchart Including today’s gains, AMD stock is up roughly 230% versus its year-to-date low in early April. www.barchart.com AMD Stock Look ...

Sales Performance - Hon Hai reports an 11% sales increase [1] AI Market - Demand for AI accelerators remains robust [1]

Core Insights - Nvidia's stock has surged approximately 50% year-to-date in 2025, driven by strong demand for AI chips, particularly from hyperscale data centers [2] - The company's valuation is significantly higher than its semiconductor peers, trading at about 43x forward earnings and 34x forward sales, indicating high investor optimism [1] - Nvidia's Q2 revenue tripled over two years, with data center business growing 56% year-over-year to $41.1 billion, representing about 88% of total sales [6] Company Overview - Founded in 1993, Nvidia is a leading chipmaker known for its GPUs and AI accelerators, playing a crucial role in data centers and gaming industries [3] - Nvidia recently achieved a market capitalization milestone of over $5 trillion, marking a first for any chipmaker [3] Recent Developments - Nvidia announced major partnerships, including projects with SK Group and Samsung, utilizing approximately 50,000 GPUs for AI chip design and fabrication [10] - Collaboration with Oracle aims to create the largest AI supercomputer in the U.S. Department of Energy, utilizing 100,000 Nvidia GPUs [11] Financial Performance and Expectations - Analysts expect Nvidia to report a "beat-and-raise" quarter for Q3, with guidance of approximately $54.0 billion in revenue, a 16% increase from Q2 [4][7] - Morgan Stanley raised its FY2026 revenue estimate to $273.2 billion, reflecting updated growth assumptions [7] Analyst Sentiment - Wall Street remains bullish on Nvidia, with Goldman Sachs reiterating a "Buy" rating and raising its 12-month target to $240 [13] - The consensus among 47 analysts is a "Strong Buy" with a mean price target of $230.14, suggesting potential upside from current levels [15]

Core Insights - Broadcom's stock surged 12% in October following a significant partnership with OpenAI to develop custom AI accelerators [1][5] - The collaboration involves a 10-gigawatt AI supply deal, with Broadcom expected to generate substantial revenue from this agreement, estimated between $150 billion and $200 billion [4][9] - The first systems from this partnership are anticipated to be deployed in the second half of 2026, with full capacity expected by the end of 2029 [5] Company Developments - Broadcom will collaborate with OpenAI on designing chips and systems, which will include connectivity solutions [3] - The deal represents a major revenue opportunity for Broadcom, significantly boosting its annual revenue, which was approximately $51 billion in fiscal 2024 [5] - Broadcom has also secured a separate $10 billion deal with another unnamed customer, indicating strong demand for its AI-related products [8] Industry Context - OpenAI has been actively securing AI computing capacity through various large-scale agreements, including a $300 billion deal with Oracle and a $38 billion deal with Amazon [7] - The AI chip market is experiencing a shift as companies seek to reduce reliance on Nvidia, positioning Broadcom favorably within this competitive landscape [8]

Group 1 - Advanced Micro Devices, Inc. (AMD) is recognized for its competition with NVIDIA, with CEO Lisa Su leading the charge in the GPU market [1][2] - AMD's stock experienced a 7.6% increase, reaching a new high, attributed to supply constraints and advancements in quantum computing in collaboration with IBM [2] - The company maintains a focus on traditional PCs while also expanding into AI and GPU markets, showcasing strategic thinking by the CEO [2] Group 2 - There is a belief that certain AI stocks may offer greater upside potential compared to AMD, despite AMD's strong performance [2] - AMD designs and manufactures a range of products including processors, graphics cards, and AI accelerators for computing and data center applications [2]