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Could Palantir Stock Help You Retire a Millionaire?
Palantir Technologies (PLTR 4.20%) stock was one of the top performers on the stock market in 2024, jumping 340% in 2024.
The defense tech stock was fueled by a ramp in revenue growth and operating margin, as its artificial intelligence platform (AIP) gained traction with both federal government customers and its U.S. commercial business.
The company got its start in counterterrorism serving the federal government after 9/11, and it’s since added new platforms, including AIP in 2023, which supercharged its business. Meanwhile, the AI boom also led investors to bid up the stock. Toward the end of last year, the stock jumped following a strong third-quarter earnings report and on the election, as investors anticipated more spending by defense contractors like Palantir.
Palantir enters 2025 with a lot of momentum in the business, as revenue growth has accelerated for five quarters in a row and operating margin has improved for eight consecutive quarters.
Driven by AI demand and improving utility in the commercial sector, Palantir scaled up its business, and margins have expanded significantly, delivering on the promise of its subscription business model. Along the way, it’s attracted a lot of attention among investors, but can Palantir help you retire a millionaire? Let’s take a look at the reasons to bet on the stock long term, as well as why you may want to look elsewhere.
Image source: Getty Images.
Palantir’s success story
Because of its unique history in counterterrorism and defense tech, Palantir has significant competitive advantages in its niche of data mining, and the company says that it generally competes with in-house solutions from its potential customers. As it said in its annual report, “Organizations frequently attempt to build their own data platforms before turning to buy ours.”
Additionally, the company’s AI platform significantly ramped up business with commercial customers, and it accelerated its sales cycles, going from product trial to a multimillion-dollar contract in less than two months.
U.S. commercial revenue rose 54% in the third quarter to $179 million, emerging as a key growth driver for the company. The U.S. commercial market is much larger than the federal government, so its growth in that segment is a bullish indicator for its future.
Palantir also continues to introduce new products, including a visual navigation AI that can guide autonomous drones in areas without GPS.
The risks facing Palantir
As a business, Palantir looks solid. It has an impressive set of competitive advantages, given its focus on defense tech and experience in data mining and analytics.
However, the company’s growth rate may not be enough to justify the stock’s lofty valuation. In fact, Palantir is now one of the most expensive stocks on the market based on its price-to-sales ratio of 72, which bakes in extraordinarily high expectations. While software stocks tend to trade at high valuations, even fast-growing ones tend to trade at a price-to-sales ratio of 20 or less, meaning Palantir trades at a significant premium compared even to its high-growth peers.
Given that most of its business comes from the government, it may be hard for Palantir to significantly accelerate its growth rate past the 30% it reported in the third quarter. Despite being connected to AI, it doesn’t have the same potential to go parabolic that a stock like Nvidia does.
Will Palantir help make you a millionaire?
Palantir still has a lot of growth potential over the long term, but at the current valuation, investors are better off taking a wait-and-see approach with the stock. The valuation is likely to come down, either by the stock price falling or the business growing into the multiple, and at that point, the risk/reward will be more favorable for Palantir.
After the stock more than quadrupled in one year, it shouldn’t be a surprise that it’s due for a breather.
Jeremy Bowman has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia and Palantir Technologies. The Motley Fool has a disclosure policy.
Palantir Technologies Inc. has been making waves in the tech industry with its data analytics software and government contracts. Its stock has seen significant growth in recent years, leading many investors to wonder if it could potentially help them retire as millionaires.Palantir’s stock price has been on a steady upward trajectory since its IPO in 2020, with the company’s market cap reaching over $40 billion. With its innovative technology and strong customer base, many analysts believe that Palantir has the potential for continued growth in the coming years.
For investors looking to retire as millionaires, Palantir stock could be a solid addition to their portfolio. However, as with any investment, it’s important to do thorough research and consider the risks involved. Palantir operates in a competitive industry and is subject to market fluctuations, so it’s essential to have a diversified investment strategy.
Ultimately, while Palantir stock has the potential to help investors retire as millionaires, it’s crucial to approach investing in it with caution and a long-term perspective. With careful planning and strategic investment decisions, retiring as a millionaire with Palantir stock in your portfolio could become a reality.
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Could Palantir Stock Help You Retire a Millionaire?
Palantir Technologies (NASDAQ: PLTR) stock was one of the top performers on the stock market in 2024, jumping 340% in 2024.
The defense tech stock was fueled by a ramp in revenue growth and operating margin, as its artificial intelligence platform (AIP) gained traction with both federal government customers and its U.S. commercial business.
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The company got its start in counterterrorism serving the federal government after 9/11, and it’s since added new platforms, including AIP in 2023, which supercharged its business. Meanwhile, the AI boom also led investors to bid up the stock. Toward the end of last year, the stock jumped following a strong third-quarter earnings report and on the election, as investors anticipated more spending by defense contractors like Palantir.
Palantir enters 2025 with a lot of momentum in the business, as revenue growth has accelerated for five quarters in a row and operating margin has improved for eight consecutive quarters.
Driven by AI demand and improving utility in the commercial sector, Palantir scaled up its business, and margins have expanded significantly, delivering on the promise of its subscription business model. Along the way, it’s attracted a lot of attention among investors, but can Palantir help you retire a millionaire? Let’s take a look at the reasons to bet on the stock long term, as well as why you may want to look elsewhere.
Image source: Getty Images.
Palantir’s success story
Because of its unique history in counterterrorism and defense tech, Palantir has significant competitive advantages in its niche of data mining, and the company says that it generally competes with in-house solutions from its potential customers. As it said in its annual report, “Organizations frequently attempt to build their own data platforms before turning to buy ours.”
Additionally, the company’s AI platform significantly ramped up business with commercial customers, and it accelerated its sales cycles, going from product trial to a multimillion-dollar contract in less than two months.
U.S. commercial revenue rose 54% in the third quarter to $179 million, emerging as a key growth driver for the company. The U.S. commercial market is much larger than the federal government, so its growth in that segment is a bullish indicator for its future.
Palantir also continues to introduce new products, including a visual navigation AI that can guide autonomous drones in areas without GPS.
The risks facing Palantir
As a business, Palantir looks solid. It has an impressive set of competitive advantages, given its focus on defense tech and experience in data mining and analytics.
However, the company’s growth rate may not be enough to justify the stock’s lofty valuation. In fact, Palantir is now one of the most expensive stocks on the market based on its price-to-sales ratio of 72, which bakes in extraordinarily high expectations. While software stocks tend to trade at high valuations, even fast-growing ones tend to trade at a price-to-sales ratio of 20 or less, meaning Palantir trades at a significant premium compared even to its high-growth peers.
Given that most of its business comes from the government, it may be hard for Palantir to significantly accelerate its growth rate past the 30% it reported in the third quarter. Despite being connected to AI, it doesn’t have the same potential to go parabolic that a stock like Nvidia does.
Will Palantir help make you a millionaire?
Palantir still has a lot of growth potential over the long term, but at the current valuation, investors are better off taking a wait-and-see approach with the stock. The valuation is likely to come down, either by the stock price falling or the business growing into the multiple, and at that point, the risk/reward will be more favorable for Palantir.
After the stock more than quadrupled in one year, it shouldn’t be a surprise that it’s due for a breather.
Don’t miss this second chance at a potentially lucrative opportunity
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Jeremy Bowman has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia and Palantir Technologies. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Palantir Technologies Inc. (NYSE: PLTR) has been a hot topic of conversation among investors lately, with many wondering if this data analytics company could be the key to retiring a millionaire.Palantir’s stock has seen significant growth since its IPO in September 2020, and the company’s innovative technology and impressive client list have many analysts bullish on its long-term potential.
But could investing in Palantir stock really help you retire a millionaire?
While there are no guarantees in the stock market, there are a few factors that make Palantir an intriguing investment opportunity. The company’s focus on big data analytics, artificial intelligence, and machine learning puts it at the forefront of the rapidly growing tech industry. Additionally, Palantir’s partnerships with government agencies and large corporations provide a steady stream of revenue and a strong competitive advantage.
Of course, investing in any individual stock comes with risks, and it’s important to do your own research and consider your own financial goals and risk tolerance before making any investment decisions.
That being said, if you believe in Palantir’s long-term potential and are willing to ride out any short-term volatility, investing in PLTR stock could potentially help you retire a millionaire. Just remember to diversify your portfolio and always consult with a financial advisor before making any investment decisions.
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Are Wall Street Analysts Bullish on Chevron Stock?
San Ramon, California-based Chevron Corporation (CVX) is a fully integrated oil & gas company focusing on oil & gas production, refining, and marketing. It operates through Upstream and Downstream segments. With a market cap of $279.8 billion, Chevron operates as one of the largest publicly traded oil & gas companies in the world.
Chevron has notably underperformed the broader market over the past year. CVX stock has gained 4.1% over the past 52 weeks compared to the S&P 500 Index’s ($SPX) 23.3% surge during the same time frame. However, CVX has soared 7.9% on a YTD basis outpacing SPX’s 2.6% gains in 2025.
Narrowing the focus, while CVX has slightly lagged the industry-focused First Trust Nasdaq Oil & Gas ETF’s (FTXN) 5.2% gains over the past year, it has surpassed FTXN’s 4.9% surge in 2025.
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Chevron’s stock prices soared nearly 2.9% after the release of its impressive Q3 results on Nov. 1. The company posted a total revenue of $50.7 billion for the quarter which surpassed the consensus estimates by 1.6%. Although its performance was impacted due to a slump in oil prices and downstream margins, the record production from the Permian Basin and the acquisition of PDC Energy led to notable gains in its Upstream segment. Furthermore, the company’s adjusted EPS of $2.51 surpassed the Street’s expectations by 1.6% which boosted investor confidence.
Chevron is set to announce its fiscal 2024 results before the markets open today and analysts anticipate a 22.5% year-over-year drop in earnings to 10.18 per share. The company has a mixed earnings surprise history. It has surpassed the consensus estimates thrice over the past four quarters while missing on one other occasion.
However, analysts remain strongly bullish on the stock’s longer-term prospects. Among the 22 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 15 “Strong Buy” ratings, two “Moderate Buy,” and five “Hold.”
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This configuration is notably more bullish than three months ago when the CVX had a consensus “Moderate Buy” rating, and 13 analysts recommended “Strong Buys.”
On Jan. 17, Raymond James analyst Justin Jenkins maintained a “Buy” rating on CVX while raising the price target to $180.
CVX’s mean price target of $177.41 represents a 13.5% premium to current price levels, while its street-high target of $197 suggests a 26% upside potential.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Are Wall Street Analysts Bullish on Chevron Stock?Chevron Corporation (NYSE: CVX) is one of the largest oil and gas companies in the world, with operations spanning across the globe. With the energy sector experiencing fluctuations in recent years, investors are keen to know whether Wall Street analysts are bullish on Chevron’s stock.
According to a recent survey of Wall Street analysts, the majority are bullish on Chevron stock. Out of 25 analysts covering the stock, 18 have rated it as a “Buy,” while only 3 have rated it as a “Sell.” The remaining 4 analysts have given it a “Hold” rating.
Analysts cite several factors for their bullish outlook on Chevron, including its strong balance sheet, diversified portfolio of assets, and strategic investments in renewable energy. Additionally, the company’s focus on cost-cutting measures and efficiency improvements has been well-received by investors.
While some analysts remain cautious due to uncertainties in the energy market and regulatory challenges, the overall sentiment towards Chevron stock remains positive. Investors looking to capitalize on the potential growth of the energy sector may find Chevron to be a lucrative investment opportunity.
As always, investors are advised to conduct their own research and due diligence before making any investment decisions. The opinions of Wall Street analysts should serve as one of many factors to consider when evaluating a potential investment in Chevron stock.
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Stock Futures Rise on Earnings as Dollar Jumps: Markets Wrap
(Bloomberg) — US and European stock futures gained after strong earnings from Apple Inc. and Intel Corp. boosted sentiment, while the dollar also rose as traders brace for President Donald trump’s tariffs announcements on Saturday.
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The Euro Stoxx 50 futures rose 0.1%, while S&P 500 and Nasdaq 100 contracts climbed during Asian trading. The increases were aided by more US mega-cap earnings — robust results from the iPhone-maker lifted its shares in after-market trading. Intel also rose post-market after reporting better-than-projected fourth-quarter revenue.
The dollar rose against most of its Group-of-10 peers as Trump is poised to unleash his first wave of tariffs Saturday. Treasuries suffered losses, while oil jumped as Goldman Sachs Group Inc. warned that commodity markets are pricing in elevated odds that sanctions against Canadian imports will include crucial raw materials like crude.
In Asia, a gauge of the region’s shares halted a two-day gain, with SK Hynix Inc. and Samsung Electronics Co. falling in delayed reaction to the selling of AI stocks, as the nation’s markets reopened after Lunar New Year holidays. The former is a key supplier to Nvidia Corp., while Samsung’s pivotal chip division reported a smaller-than-expected profit. Markets in mainland China, Hong Kong and Taiwan remain closed.
“There is lot more” recalibration to come in the AI trades, Gareth Nicholson, chief investment officer at Nomura Singapore Ltd. told Bloomberg Television. “We will see more rotation and it makes us even more bullish, albeit we needed some steam to come out of the system to build a stronger momentum forward.”
Earnings for large tech companies still face heightened scrutiny after investors dumped AI-related stocks earlier this month. Nvidia shares rose Thursday but remained on track for their worst week since September. The Nasdaq 100 is also set to drop for the first week in three.
Despite this week’s selloff in technology stocks, Asian equities are on pace for their first monthly advance in four as concerns over Trump’s use of tariffs eased after he held back from imposing levies on China.
Samsung “missed consensus, mainly from the semiconductor division,” said SK Kim, Daiwa Securities executive director and analyst, speaking on Bloomberg Television. “In semiconductors, Samsung has higher exposure to China and they are also supplying the AI chips to Chinese customers.”
Stock Futures Rise on Earnings as Dollar Jumps: Markets WrapAs earnings season continues to unfold, stock futures are on the rise as companies report better-than-expected results. This positive news has helped boost investor sentiment and drive markets higher.
Additionally, the dollar has seen a significant jump, with the US currency gaining strength against other major currencies. This has added to the bullish sentiment in the markets, as a strong dollar is often seen as a sign of confidence in the US economy.
Overall, the combination of strong earnings reports and a rising dollar has created a positive outlook for investors. However, as always, it’s important to remain cautious and monitor the markets closely for any potential changes in sentiment.
Stay tuned for more updates as earnings season continues to unfold and market dynamics evolve.
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Stock market today: Live updates
Traders work at the New York Stock Exchange on Jan. 30, 2025.
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Stock futures edged higher early Friday as investors analyzed earnings reports from Apple and other well-known companies ahead of the release of a closely followed inflation report.
Futures tied to the S&P 500 ticked higher by 0.24%, while Nasdaq 100 futures gained 0.51%. Dow Jones Industrial Average futures added 57 points, or 0.13%.
Investors honed in on Apple, whose shares rose nearly 3% in extended trading after the company exceeded expectations of analysts polled by LSEG on both lines for its fiscal first quarter. While Apple reported disappointing sales tied to the iPhone, services revenue appeared to take the spotlight.
Chip plays Intel and KLA both rose more than 3% on the back of stronger-than-forecast earnings. Beyond tech, Deckers Outdoor shares plunged around 16% as full-year revenue guidance came in slightly short of Wall Street estimates.
Thursday night’s action follows a winning — but volatile — trading session for the three major indexes. Technology has been a major focus of investors this week given Monday’s big sell-off sparked by developments out of China’s DeepSeek artificial intelligence startup and earnings reports from key players over recent days.
Despite those advances, only the Dow is on track to finish the week higher. While the blue-chip index has risen about 1%, the S&P 500 and Nasdaq Composite are poised to finish down by 0.5% and 1.4%, respectively.
Friday also marks the last day of what has been a rocky January for traders. Nevertheless, the three major averages are on pace for monthly gains, with the S&P 500 up 3.2% and the Nasdaq on pace for a 1.9% advance. The Dow outperformed in the period, on track for a 5.5% jump.
Investors will focus Friday on December data for the personal consumption expenditures price index, the Federal Reserve’s preferred inflation gauge. They’ll also monitor economic releases focused on employment costs and personal income.
Earnings season also continues, with Chevron and Exxon Mobil expected to post results before the bell on Friday. With just over 30% of S&P 500-listed firms done reporting earnings this quarter, about 77% have surpassed analyst expectations, according to FactSet.
“We still do have a fair amount of earnings,” said Jay Hatfield, CEO of Infrastructure Capital Advisors. “Usually, it pays to be long during earnings, so we would continue to be bullish into February.”
Stock market today: Live updatesStay up to date with the latest developments in the stock market with our live updates. Follow along as we track the highs and lows of the market, analyze trends, and provide insights on what to expect in the coming days. Whether you’re a seasoned investor or just getting started, our real-time updates will keep you informed and prepared for any shifts in the market. Don’t miss out on this valuable resource for staying ahead of the game in the world of stocks. #StockMarket #LiveUpdates #Investing
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#Stock #market #today #Live #updatesNvidia stock begins recovery after DeepSeek AI frenzy prompted near $600 billion loss
Nvidia (NVDA) stock rose nearly 9% Tuesday as the AI chipmaker began to recover from a massive decline the prior day that shaved nearly $600 billion off its market cap.
Nvidia’s 17% freefall Monday was prompted by investor anxieties related to a new, cost-effective artificial intelligence model from the Chinese startup DeepSeek. Some Wall Street analysts worried that the cheaper costs DeepSeek claimed to have spent training its latest AI models, due in part to using fewer AI chips, meant US firms were overspending on artificial intelligence infrastructure.
That created a concern among the investment community that Nvidia’s high GPU (graphics processing unit, or AI chip) prices could come under pressure and that demand for semiconductors could wane.
Nvidia’s $589 billion market cap decline was the largest single-day loss in stock market history.
The DeepSeek announcements drove down not only Nvidia but the market at large, with the tech-heavy Nasdaq (^IXIC) dropping 3%. Chip stocks dropped across the board Monday, but some names began to recover. After dropping more than 17% to start the week, Broadcom (AVGO) rose 2.6% Tuesday.
Nvidia itself didn’t express much anxiety over the DeepSeek buzz, calling R1 “an excellent AI advancement” in a statement Monday.
Jensen Huang speaking at NVIDIA Keynote at Michelob Ultra Arena in Las Vegas, NV, on Jan. 6, 2025. Credit: DeeCee Carter/MediaPunch /IPX · DeeCee Carter/MediaPunch/MediaPunch/IPx Wall Street analysts continued to reflect on the DeepSeek-fueled market rout Tuesday, expressing skepticism over DeepSeek’s reportedly low costs to train its AI models and the implications for AI stocks.
JPMorgan analyst Harlan Sur and Citi analyst Christopher Danley said in separate notes to investors that because DeepSeek used a process called “distillation” — in other words, it relied on Meta’s (META) open-source Llama AI model to develop its model — the low spending cited by the Chinese startup (under $6 billion to train its recent V3 model) did not fully encompass its costs.
“We believe it is crucial to validate these costs before drawing conclusions,” Sur wrote.
Danley added: “Given Deepseek is based on leveraging cloud service providers [Meta] and AI is still in its infancy, we lean towards the argument of continued strong growth in AI spending.”
Even so, DeepSeek “clearly doesn’t have access to as much compute as US hyperscalers and somehow managed to develop a model that appears highly competitive,” Raymond James analyst Srini Pajjuri wrote in a note to investors Monday.
StockStory aims to help individual investors beat the market. Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @laurabratton.bsky.social. Email her at laura.bratton@yahooinc.com.
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Nvidia stock has started a steady recovery after the recent DeepSeek AI frenzy caused the tech giant to suffer a near $600 billion loss in market value.Investors were initially spooked by the sudden surge in interest surrounding DeepSeek AI, a new artificial intelligence technology that has been hailed as a game-changer in the industry. This led to a massive sell-off of Nvidia shares, causing the stock price to plummet.
However, in the days following the initial panic, Nvidia stock has shown signs of resilience and has begun to claw back some of its lost value. The company’s strong fundamentals and solid track record have helped to reassure investors that the recent downturn was more of a temporary blip than a long-term trend.
Analysts are now cautiously optimistic about Nvidia’s prospects moving forward, with many predicting that the stock will continue to rebound in the coming weeks. While the DeepSeek AI frenzy may have caused some turbulence in the market, it seems that Nvidia is well-positioned to weather the storm and emerge stronger than ever.
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Visitors take pictures by a sign posted in front of Meta headquarters on Jan. 29, 2025 in Menlo Park, California.
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My top 10 things to watch Thursday, Jan. 30
1. Meta was outstanding both on top and bottom line. I didn’t think a quarter like that would be possible. Meta.ai has already become the largest assistant, and it is learning from all of the interactions people have. It will have won the personal agent role by the end of the year and can’t be stopped because it will outspend everyone.
2. Microsoft is problematic because it always seems to be growing these days as expected or a little bit slower. I thought CEO Satya Nadella had good things to say about Copilot and how so many companies are using it. Can Microsoft be the de facto corporate agent? Yes, but only because of its relationship with Open AI.
- DeepSeek comments from Wednesday night’s conference calls: Microsoft said falling software prices will increase consumption. Nadella embraced the advances made my Chinese AI startup DeepSeek with open arms. Meta CEO Mark Zuckerberg didn’t revise last week’s capital expenditure guidance after Monday’s DeepSeek tech rout.
3. Wall Street was looking at a mixed open after a Wednesday decline driven by pressure on Club stock Nvidia and the Fed holding interest rates steady and saying inflation remains “somewhat elevated.” Nvidia has been crushed this week on the DeepSeek developments. The inflation comments from the Fed implied rates may stay on hold for a while. GDP in the fourth quarter grew slower than expected.
- Federal Reserve Meeting: Investors will be closely watching the outcome of the Federal Reserve’s meeting for any signals on interest rate changes or economic policies.
- Earnings Reports: Keep an eye on earnings reports from companies such as Apple, Amazon, and Facebook, as they could have a significant impact on the market.
- Trade Talks: Any updates on trade negotiations between the U.S. and China could cause volatility in the stock market.
- Inflation Data: The release of inflation data could provide insight into the health of the economy and impact market sentiment.
- Oil Prices: Fluctuations in oil prices can influence the stock market, so keep an eye on any developments in the oil market.
- Consumer Confidence: Reports on consumer confidence levels can provide insight into consumer spending habits and the overall health of the economy.
- Political Developments: Any news related to political events, such as Brexit or the U.S. election, could impact the stock market.
- Tech Stocks: Technology stocks have been a major driver of the market’s recent gains, so keep an eye on how these stocks are performing.
- Global Markets: Pay attention to how global markets are performing, as international developments can have a ripple effect on U.S. stocks.
- Volatility Index: Keep an eye on the VIX, also known as the fear index, as it can provide insight into market sentiment and potential future market movements.
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Is NVIDIA Corporation (NVDA) the Unstoppable Tech Stock to Buy Right Now?
We recently published a list of 10 Unstoppable Tech Stocks to Buy Right Now. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other unstoppable tech stocks to buy right now.
The technology sector continues to be driven by rapid innovation and the adoption of cutting-edge technologies. Advances in technology are significantly impacting lives, industries, and economies worldwide, with the integration of AI and ML revolutionizing workflows, enhancing productivity, and creating new revenue opportunities. Organizations around the globe are undergoing digital transformation to stay competitive, streamline operations, improve customer engagement, and drive innovation in their products and services.
With substantial growth potential, the technology sector has consistently outperformed other sectors. In 2024, the S&P 500 Information Technology Sector Index rose by approximately 37%, outpacing the broader S&P 500 Index by an impressive 11.5%. This performance has led to skyrocketing market capitalizations for tech sector companies, prompting caution regarding high valuations. Following the market downturn triggered by DeepSeek’s emergence, JJ Kinahan, CEO of IG North America, stated in an interview with BNN Bloomberg that while the market had reached incredibly high levels, macroeconomic concerns such as inflation and high interest rates persist. He also suggests that developments related to DeepSeek provided an excuse for profit-taking with a ‘reset’ occurring in tech stocks. Now the focus should shift to earnings and the actual benefits derived from those substantial investments.
On a positive note, in his report on December 13, Adam Benjamin, Sector Portfolio Manager at Fidelity Investments, highlighted that the sector benefited in 2024 from outstanding results in the semiconductor industry, reflecting major corporate investments in AI infrastructure. He remains optimistic for 2025, as evident from his positive outlook:
“The outlook for the sector in 2025 and beyond may be bright, as tech companies continue to innovate and digitization and automation become increasingly important in our lives. I believe the next phase of development could present opportunities for software firms, as the application layer begins to roll out generative AI agents across end markets, and as the full benefits of AI begin to be realized. Progress may not be linear, though, and investors must be mindful of stock valuations and the timing and potential impact of further technological advances in the field, as well as the broader macroeconomic environment.”
When it comes to investing in tech stocks, NVIDIA Corporation (NVDA) is often at the top of many investors’ lists. With its strong track record of innovation and growth, NVDA has become a powerhouse in the semiconductor industry. But is NVIDIA truly the unstoppable tech stock to buy right now?There are several factors that make NVIDIA a compelling investment opportunity. Firstly, the company has a dominant position in the high-performance computing and artificial intelligence markets. Its GPUs are widely used in data centers, gaming, and autonomous vehicles, giving NVIDIA a strong competitive edge.
Additionally, NVIDIA has a strong history of revenue growth, with its revenue increasing by over 50% in the past year alone. This growth is expected to continue as demand for its products continues to rise.
Furthermore, NVIDIA has a solid balance sheet with ample cash reserves and minimal debt, making it a stable and financially sound company.
However, it’s important to note that investing in any stock carries risks. While NVIDIA has shown strong growth potential, the tech industry is constantly evolving and competition is fierce. Additionally, there is always the risk of market fluctuations and economic uncertainties that could impact the stock price.
Overall, NVIDIA Corporation (NVDA) has proven itself to be a strong player in the tech industry with solid growth potential. While it may not be completely unstoppable, it is certainly a tech stock worth considering for long-term investors looking to capitalize on the continued growth of the semiconductor industry.
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