In a recent segment with CNBC, Wedbush analyst Dan Ives named Tesla (TSLA) and Nvidia (NVDA) as the top physical artificial intelligence (AI) plays in the world. In fact, Ives referred to Nvidia as the "Godfather of AI," claiming that no other firm comes close to its dominance in the AI ecosystem. The latest tech selloff has also hurt NVDA stock. This pullback could be a terrific opportunity to buy this outstanding AI stock at a discount. www.barchart.com Ives Calls Nvidia “The Backbone of the Compute La ...

Core Insights - The article discusses the contrasting investment opportunities in the AI-robotics sector, focusing on Serve Robotics Inc. (SERV) as a niche player in autonomous delivery and NVIDIA Corporation (NVDA) as a dominant AI infrastructure provider [1][2]. Group 1: Serve Robotics (SERV) - Serve Robotics is experiencing significant growth, having deployed over 1,000 robots, marking a transition from experimentation to operational execution [2]. - The company is expanding its partner ecosystem, supporting deliveries for thousands of restaurants and increasing its addressable market through partnerships with major delivery platforms [3]. - Serve Robotics is leveraging technology to build a proprietary urban data set that enhances its AI capabilities, with the acquisition of Vayu Robotics expected to accelerate data conversion into improved AI models [4]. - Despite operational progress, Serve Robotics is still in an investment phase, incurring substantial operating losses and facing execution risks that could delay financial improvements [5]. Group 2: NVIDIA Corporation (NVDA) - NVIDIA dominates the AI infrastructure market, reporting record revenue growth driven by high demand for data center computing and networking, with GPU utilization at full capacity [6]. - The company is expected to see strong growth in fiscal 2027, with a projected year-over-year sales increase of 46.8% and earnings per share growth of 57% [12]. - NVIDIA's product development is advancing rapidly, with the Blackwell platform and upcoming Rubin architecture expected to significantly enhance performance [8]. - The company's full-stack ecosystem positions it uniquely in the AI market, benefiting from widespread adoption across cloud platforms and robotics applications [9]. Group 3: Investment Comparison - NVIDIA is viewed as a more stable investment option due to its scale, profitability, and lower execution risk compared to Serve Robotics, which is still in a heavy investment phase [20]. - SERV stock has declined by 28.3% over the past year, while NVDA shares have increased by 34.1% during the same period [13]. - The forward price-to-sales ratio for SERV is 23.54X, below its historical median, while NVDA's ratio is 14.47X, above its median, indicating differing valuations [16].

Core Viewpoint - Nvidia has experienced significant growth due to its role in the AI infrastructure layer, making it a compelling investment opportunity despite recent stock price fluctuations [2][3]. Financial Performance - Nvidia's revenue surged by 62% year-over-year to $57 billion in Q3 2026, with analysts projecting further increases of 51% and 28% for fiscal years 2027 and 2028, respectively [3]. - The company's net income margin has dramatically improved from 11% to 56% over the past three years, showcasing exceptional profitability [3]. Innovation and Product Development - Nvidia's management prioritizes innovation, recently unveiling the Rubin computing platform, which promises a 10x reduction in inference token costs and a 4x reduction in GPU requirements compared to its predecessor [4]. - The launch of Alpamayo, an open-source AI model aimed at supporting autonomous driving technology, positions Nvidia to compete with Tesla in the automotive sector [5]. Market Position and Valuation - Nvidia's current market capitalization stands at $4.5 trillion, with shares trading at a forward price-to-earnings ratio of 23.9, suggesting that the stock may still be a good buy during its current dip [6][7]. - Despite a recent 11% decline from its peak, the stock is viewed as trading at a discount, prompting some investors to consider it a favorable entry point [2][6].

Core Viewpoint - Monolithic Power Systems (MPWR) has demonstrated significant stock performance, with returns exceeding 5,800% over two decades, and a 160% increase since its inclusion in the S&P 500 in 2021, reflecting strong execution and institutional relevance [1][2]. Company Overview - Founded in 1997, Monolithic Power Systems specializes in high-efficiency power management integrated circuits (ICs) and has expanded its portfolio to include power converters, controllers, motor drivers, and battery management systems, with a market capitalization of $49.5 billion [2][3]. - The company has established itself as a key player in modern electronics, providing critical solutions across various technology markets, including data centers, automotive platforms, industrial systems, and consumer devices [2][3]. Recent Performance - MPWR's stock has surged 73% over the past year, reaching an all-time high of $1,123.38 in October, driven by strong demand across multiple end markets, not solely reliant on AI trends [7]. - The third-quarter earnings report revealed revenue of $737.2 million, a 19% year-over-year increase, surpassing Wall Street expectations, with notable growth in storage and computing (30% increase), automotive (36% increase), and industrial (26% increase) sectors [11][12]. Financial Health - Non-GAAP net income for the third quarter rose to $227.1 million, or $4.73 per share, with operating cash flow at $239.3 million, indicating robust cash generation and a strengthened balance sheet with $1.26 billion in cash and equivalents [13]. - The company has maintained a dividend for over a decade, recently distributing $1.56 per share, reflecting a 0.62% yield and a 46.38% payout ratio, providing a steady return to shareholders [10]. Future Outlook - Monolithic Power expects Q4 revenue between $730 million and $750 million, with non-GAAP gross margins projected between 55.2% and 55.8% [15]. - Analysts anticipate adjusted EPS for Q4 to be $3.63, a 15% year-over-year increase, with fiscal 2025 EPS expected to rise 26% to $13.50, and further growth projected for fiscal 2026 [16]. - Wells Fargo has upgraded MPWR to "Overweight," raising the price target to $1,125, with expectations of 39% year-over-year revenue growth in 2026, indicating a positive outlook aligned with Nvidia's expanding AI infrastructure [17][18]. Analyst Sentiment - The consensus rating for MPWR stock is "Strong Buy," with 12 out of 16 analysts recommending a "Strong Buy," and a mean price target of $1,219.23, suggesting an 18% upside potential [19].

Core Insights - Nvidia's CEO Jensen Huang highlighted the upcoming delivery of the Rubin platform at CES 2026, which is generating significant excitement among analysts due to its innovations in physical AI [1][2] Performance and Efficiency - The Rubin platform consists of six separate Nvidia chips and is expected to lower the cost per token for AI inference workloads by up to 90% compared to the Blackwell platform, enhancing performance and efficiency [2] - Data center operators are expected to benefit greatly from the Rubin platform, which will have substantial impacts on performance and efficiency at scale [3] Market Position and Growth - Nvidia currently holds a market capitalization of approximately $4.5 trillion and anticipates major companies like Microsoft, Oracle, Amazon, Alphabet, and CoreWeave to be among the first to adopt the Rubin systems [3] - The transition from a chip supplier to an end-to-end platform provider is seen as a crucial long-term growth engine for Nvidia [4] Revenue Projections - Nvidia projects that combined sales from the Rubin and Blackwell platforms could reach around $500 billion in 2026, representing a significant increase from its recent quarterly revenue of $57 billion and trailing-12-month revenue of $187 billion [5] - The company expects to generate $65 billion in revenue for the fourth quarter of fiscal 2026, ending January 25 [7]

Key Takeaways NVDA's Data Center revenues hit $51.22B in Q3 FY26, nearly 90% of sales, up 66% year over year.NVDA's Blackwell GB300 systems are shipping in volume, offering higher performance and energy efficiency.NVDA expects continued data center strength from cloud, sovereign AI and enterprise AI demand.NVIDIA Corporation’s (NVDA) Blackwell platform is becoming a key driver of its Data Center revenue growth. In the third quarter of fiscal 2026, the Data Center segment generated $51.22 billion in revenues ...

Core Insights - The launch of Starcloud-1 satellite marks the first instance of an artificial intelligence model, Gemma, being trained and operated in space, utilizing a Nvidia H100 GPU that is 100 times more powerful than previous space GPUs [2][3] - Starcloud aims to establish orbital data centers to address the growing digital infrastructure crisis on Earth, which is facing increasing energy consumption and environmental concerns [4][5] Company Overview - Starcloud, co-founded in 2024, is backed by Nvidia and has successfully demonstrated the operation of AI models in space, indicating the feasibility of space-based data centers [5][6] - The company plans to build a 5-gigawatt orbital data center equipped with solar and cooling panels, which would be more efficient and cost-effective compared to terrestrial facilities [8] Technological Innovations - The satellite's AI model, Gemma, is capable of sophisticated responses similar to Earth-based databases, showcasing the potential of space-based AI applications [7] - Starcloud has also trained another model, NanoGPT, using the complete works of Shakespeare, demonstrating the versatility of its technology [7] Environmental Impact - Orbital data centers are projected to have 10 times lower energy costs than terrestrial data centers, addressing the constraints of energy consumption on Earth [5] - These space-based facilities can harness constant solar energy, unaffected by terrestrial weather and day-night cycles, contributing to environmental sustainability [9][12] Applications and Use Cases - Starcloud's orbital data centers have potential commercial and military applications, such as real-time intelligence for disaster response, including wildfire detection [10] - The company is working on integrating advanced AI workloads from space, enhancing capabilities for various industries [11]

Core Viewpoint - The cryptocurrency markets indicate that the likelihood of Nvidia reaching a new record high above $201 by December 31, 2025, is low, despite strong interest at various price levels [1][2]. Price Predictions - The market assigns a 57% chance for Nvidia to finish near $200, with lower probabilities for higher targets: 19% for $215, 4% for $230, and under 1% for $245 and $260 [1][2]. - There is a 10% chance of Nvidia stock finishing near $165 and a 5% chance of ending at $160, while the $190 bracket has an 85% probability, indicating confidence in maintaining elevated prices [3]. Market Sentiment - The overall sentiment suggests a stable but capped outlook for Nvidia, with little conviction that the stock will break into record territory over the next year [3]. Company Fundamentals - Nvidia benefits from increasing demand for AI infrastructure, strong data-center revenue, and an upcoming product roadmap, including the Blackwell platform and Rubin architecture expected in late 2025 [4]. Recent Stock Performance - As of the latest update, Nvidia stock was trading at $185, having closed the previous session up nearly 2%, and showed strength in pre-market trading [5]. - The stock gained momentum following an announcement that the U.S. will allow Nvidia to sell its H200 AI chips to approved customers in China, subject to a 25% levy, easing previous export restrictions [7]. - This announcement coincides with Congress considering a bipartisan bill that could block H200 and Blackwell shipments for 30 months, creating uncertainty in policy direction [8].

Core Insights - Nvidia has demonstrated significant revenue and profit growth, primarily driven by its leadership in the AI chip market, with the latest earnings report showing record revenue levels [2][3] - Cathie Wood, founder of Ark Invest, has increased her investment in Nvidia, reflecting confidence in the company's long-term potential despite short-term stock fluctuations [4][5] Company Performance - Nvidia's recent earnings report revealed double-digit revenue gains, with sales of its latest Blackwell platform described as "off the charts" by CEO Jensen Huang [3][6] - The company has a market capitalization of $4,436 billion, with a gross margin of 70.05% and a current stock price of $177.87 [8] Investment Activity - Cathie Wood purchased 93,374 additional shares of Nvidia, bringing her total holdings in the Ark Innovation fund to 620,955 shares, which now represent about 1.5% of the fund's portfolio [5] - The stock is currently positioned 22nd out of 48 holdings in the Ark Innovation fund [5] Market Outlook - Nvidia is expected to benefit from increased infrastructure spending in AI, with major cloud service providers committing to invest more in this area [8] - The company has a roadmap for annual updates to its AI chips, indicating a proactive approach to maintaining its competitive edge [8] Valuation Perspective - Despite recent stock price declines, Nvidia's valuation at 38 times forward earnings estimates is considered reasonable, presenting a potential buying opportunity for long-term investors [9]

Core Insights - Nvidia stock has experienced a remarkable increase of 1,000% over the past five years, driven by high demand for AI chips [1][2] - Despite strong earnings reports, Nvidia's stock fell approximately 3% following the latest quarterly report due to low expectations for interest rate cuts and concerns about a potential AI bubble [2] Company Performance - Nvidia's strategic focus on the AI market has positioned it as a leader in the design of AI chips, resulting in significant earnings growth and stock performance [4][5] - In the third quarter of the 2026 fiscal year, Nvidia reported a revenue increase of 62% to $57 billion, with a gross margin exceeding 73% [6] Market Demand - Sales of Nvidia's latest Blackwell platform are described as "off the charts," indicating strong compute demand from major customers like Amazon and Alphabet [7] - Competitors in the chip design industry, such as Broadcom and Advanced Micro Devices, also report high demand for AI-related products, reinforcing the optimistic outlook for AI growth [7] Historical Performance - Historical data shows that Nvidia's stock has advanced in seven out of the last nine quarterly earnings reports, typically resulting in double-digit gains [8] - The two instances of stock decline were limited to single-digit losses, suggesting a strong track record of performance following earnings reports [8] Long-term Outlook - Nvidia is expected to benefit from substantial investments in AI infrastructure, with trillions of dollars projected to be spent in the coming years [10] - Currently, Nvidia stock is trading at 38 times forward earnings estimates, which is considered reasonable for a leader in a high-growth industry [11]