Nvidia (NVDA 0.75%) is back as the most valuable company in the world, and it just hit a crucial milestone. It has become the first company to hit a $4 trillion in value. Let's see why investors are getting more excited about it and why it can soar higher. Leading in AI Nvidia has been a successful company for decades, but its products have historically been geared toward the gaming industry. It became a household name when ChatGPT launched in 2022, forever changing how the world interacts with artificial i ...

V i e w p o i n t | 07 Jul 2025 02:00:00 ET │ 15 pages NVIDIA Corp (NVDA.O) Mid-Q Update – Lifting TP to $190 on Expanded AI TAM CITI'S TAKE We raise TP on Nvidia to $190 on AI TAM expansion. We model total 2028 data center semis AI TAM to now reach $563B or 13% above our prior expectation of $500B (Figure 3). The 4% increase in compute TAM is driven by higher-than-expected sovereign AI demand. Moreover, there was discussion of 10k GPUs or a supercomputer required per 10k employees at enterprises for agenti ...

Nvidia (NVDA 2.05%) remains one of the best artificial intelligence (AI) stocks on the market. But with the chipmaker now trading at a price-to-sales multiple of 26.4, many investors may wonder if shares have gotten too expensive to buy. Don't be fooled: Nvidia stock is still reasonably priced.Nvidia stock isn't as expensive as it seemsNvidia designs graphics processing units (GPUs) that provide the processing power required to support modern AI and machine-learning software. The company's gross margins are ...

Key Takeaways NVIDIA lost $2.5B in Q1 and expects $8B in Q2 from halted H20 chip shipments to China. Sovereign AI talks in Europe, Saudi Arabia, Taiwan and the UAE aim to reduce trade war exposure. NVIDIA's full-stack AI platform helps secure partnerships that are costly and complex to displace.NVIDIA Corporation (NVDA) is facing a major sales hit from U.S. export restrictions, particularly from the ongoing trade war between the United States and China. In the first quarter of fiscal 2026, the company los ...

Core Viewpoint - Nvidia has experienced significant stock fluctuations but is expected to rebound strongly in the second half of the year due to various growth drivers in the AI market and its own product developments [3][15]. Company Overview - Nvidia's stock surged over 800% in the past two years, driven by explosive earnings growth and its position as a leading supplier of AI chips [1]. - The company initially gained recognition for its GPUs in gaming but successfully expanded into AI through the development of the CUDA parallel computing platform [5]. Financial Performance - Nvidia's revenue has skyrocketed due to its focus on AI, with gross margins exceeding 70% in recent quarters, although a recent charge related to export controls reduced the latest quarter's gross margin to 60% [6][8]. - The stock is currently priced at 36 times forward earnings estimates, down from over 50 times, indicating potential for further growth [9]. Market Conditions - Trade-related news suggests that U.S. tariff levels may not be as high as initially feared, which could positively impact growth stocks like Nvidia [10]. - The overall AI market is booming, with forecasts indicating it could reach trillions of dollars in the coming years, benefiting Nvidia as a leading AI chip supplier [13]. Future Outlook - Strong spending plans from major customers like Meta Platforms and Alphabet, along with the recent launch of Nvidia's Blackwell platform, are expected to drive revenue growth in the upcoming quarter [11]. - The anticipated rollout of the Blackwell Ultra chip in the second half of the year may serve as a catalyst for further stock price appreciation [12]. - Despite challenges such as export restrictions to China, Nvidia has multiple growth drivers that could sustain earnings growth into the future [14].

Group 1: Market Overview - Technology stocks, which were significant drivers of stock market gains last year, faced challenges due to concerns over import tariffs and their potential impact on corporate earnings and the economy [1] - Recent trade agreements, including one with China, have alleviated investor fears, allowing tech stocks to regain upward momentum [1] Group 2: Analyst Insights - Dan Ives of Wedbush predicts a strong second half for technology stocks, referring to this period as the "golden age" for the industry [2] - The AI market, currently valued at approximately $300 billion, is expected to exceed $2 trillion within the next decade, driven by ongoing infrastructure buildout and new phases of AI growth [2] Group 3: Company Highlights - Nvidia - Nvidia has established itself as a leader in AI through its high-performance GPUs and a comprehensive suite of AI tools and services, resulting in significant revenue and net income growth [5][6] - The company is expanding its offerings with enterprise software and networking equipment, and is venturing into quantum computing with a new research center in Boston [6] - Nvidia shares are currently trading at 36 times forward earnings estimates, a decrease from 50 times earlier this year, presenting a potentially attractive valuation [8] Group 4: Company Highlights - Palantir Technologies - Palantir Technologies experienced a remarkable 340% increase in stock price last year and an additional 80% rise in the first half of this year, with further growth potential [9] - The company’s AI-powered system, the Artificial Intelligence Platform (AIP), has driven significant demand and revenue growth, particularly in its commercial business [10][11] - Despite a high valuation exceeding 200 times earnings estimates, Palantir's strong growth trajectory and effective AI solutions position it for continued success [12]

Core Insights - Apple reached a market capitalization of $3.9 trillion but did not become the first $4 trillion company, while Nvidia and Microsoft are positioned to potentially reach that milestone [1][2] Nvidia's Position - Nvidia is currently the closest company to $4 trillion, being just over 3% away as of July 3 [4] - Nvidia's stock is more volatile and has shown significant recovery, being up over 18% year to date after a decline of around 30% earlier in the year [6] - The company's earnings have surged from under $10 billion to $76.8 billion in a few years, indicating strong growth [9] Earnings Growth and Valuation - Earnings growth and investor sentiment are the primary drivers of stock price appreciation, with Nvidia and Microsoft benefiting from increasing earnings and premium valuations [8] - Nvidia's valuation remains reasonable due to its dominant market share in AI-related products, allowing it to convert over half of its sales into profit [12][13] - Even with a projected earnings growth of 25% per year, Nvidia's P/E ratio could decrease significantly over five years, indicating potential for continued investment appeal [15][18] Microsoft’s Stability - Microsoft offers a more balanced investment option with a lower P/E ratio and diverse earnings sources, including cloud computing and software [20][21] - The company has a consistent capital-return program, including stock buybacks and dividend increases, which may appeal to long-term investors [22] Investment Considerations - Both Nvidia and Microsoft are seen as strong companies that could surpass $4 trillion in market cap, but their stock prices are rising faster than earnings growth, creating pressure to meet investor expectations [23]

Artificial intelligence (AI) is proving to be the next big technology innovation, and investors don't have to look far to find the companies at the center of it. Some of the best opportunities in the tech sector lie with companies that are either powering the infrastructure behind AI or using it to improve their operations.Let's look at five top tech stocks to buy this month.NvidiaNvidia (NVDA 1.28%) is the top name in AI infrastructure. Its graphics processing units (GPUs) have become the main chips used f ...

Summary of Key Points Core Viewpoint - The market has reached new highs, but several growth stocks remain down 20% or more from their all-time highs, presenting attractive investment opportunities. Group 1: Advanced Micro Devices (AMD) - AMD is down 35% from its high but is gaining traction in the AI inference market, which is expected to surpass AI training in size over time [3][5] - The company reported a 57% increase in data center revenue last quarter, contributing to a total revenue growth of 36% [5] - AMD's strategy does not require it to surpass Nvidia in the GPU market; a modest share can drive significant growth from its smaller base [5] Group 2: GitLab - GitLab's stock is down 65% from its high, yet it plays a crucial role in secure software development with its DevSecOps platform [6][8] - The company experienced a 27% year-over-year revenue growth last quarter, with a dollar-based net retention rate of 122% [7] - Concerns about AI reducing the number of coders are unfounded, as AI has led to increased software development and coder numbers [8] Group 3: e.l.f. Beauty - e.l.f. Beauty's stock is down 40% from its high, with a recent revenue growth slowdown to 4% in fiscal Q4 [9] - The $1 billion acquisition of Hailey Bieber's Rhode brand, which has $212 million in annual sales, could significantly accelerate growth [10] - e.l.f. has opportunities for market share expansion in mass-market cosmetics and potential growth in skincare and other categories [11] Group 4: Dutch Bros - Dutch Bros is down 21% from its high and is in the early stages of a multi-year growth story, targeting 2,029 shops by 2029 [12][14] - The company reported a 4.7% increase in same-store sales last quarter, with company-owned comps climbing 6.9% [13] - Dutch Bros is exploring mobile ordering and food items to enhance sales, recognizing the importance of food offerings in driving revenue [13] Group 5: Cava Group - Cava Group's stock is down 43% from its high, but it has achieved four consecutive quarters of double-digit same-store sales growth, including 10.8% last quarter [15] - The company is expanding rapidly, adding 15 new restaurants last quarter and planning to open 64 to 68 new locations this year [17] - Cava's expansion strategy, particularly its recent push into the Midwest, positions it for significant growth ahead [17]

Core Insights - Artificial intelligence (AI) investing is thriving in 2025, with record data center spending and major tech companies expanding their plans, indicating strong investment opportunities in the sector [1] Group 1: AI Infrastructure - Companies like Nvidia, Broadcom, and Taiwan Semiconductor Manufacturing (TSMC) are key players in AI infrastructure, benefiting from significant AI spending [4] - Nvidia's GPUs are central to the AI revolution, with no true competition, while Broadcom's custom AI accelerators (XPUs) can outperform GPUs under specific workloads [5][6] - TSMC is crucial for both Nvidia and Broadcom, providing advanced chip technology, which is expected to see a compound annual growth rate (CAGR) of 45% for AI-related chips over the next five years [7][8] Group 2: Cloud Computing - Major AI companies like Alphabet and Amazon are expanding data centers not only for internal use but also for rental to other businesses lacking resources for AI infrastructure [9] - Companies are increasingly renting computing power from cloud providers like Amazon Web Services (AWS) and Google Cloud, which is driving demand for GPUs from Nvidia [10] - The cloud computing market is projected to grow from $750 billion in 2024 to $2.4 trillion by 2030, presenting significant investment opportunities in companies like Amazon and Alphabet [11]