Zion Tech Group

Tag: STOCK

  • Microsoft Stock Investors: 1 Very Important Artificial Intelligence (AI) Number to Watch Next Week


    A new quarterly earnings season is now underway in corporate America. Next week, we will hear from some of the “Magnificent Seven” technology companies, which collectively represent almost one-third of the value of the entire S&P 500 (SNPINDEX: ^GSPC). Wall Street will be particularly focused on their progress in the artificial intelligence (AI) space, because that could be a big source of their future earnings.

    On Jan. 29, Microsoft (MSFT -0.59%) will report results for its fiscal 2025 second quarter, which ended Dec. 31. Investors will be paying a great deal of attention to how well the company is monetizing its growing portfolio of AI products and services, but there is one number that could be more important than the rest.

    The Microsoft logo on a black background.

    Image source: Getty Images.

    Microsoft will provide updates on several AI products

    Microsoft has made huge investments in ChatGPT creator OpenAI, and it has used the start-up’s technology to fuel its own AI ambitions. For example, OpenAI’s models form part of the foundation of Microsoft’s Copilot virtual assistants, which are now embedded for free in flagship software products like the Windows operating system, the Bing search engine, the Edge internet browser, and more.

    Subscribers to Microsoft’s 365 productivity suite can also add Copilot to their plans for an additional monthly fee, allowing them to rapidly generate text and images in apps like Word, Excel, and PowerPoint. Organizations around the world pay for more than 400 million 365 licenses for their employees, and all of them are potential subscribers to Copilot.

    During the company’s fiscal 2025 first quarter, which ended Sept. 30, Microsoft said 70% of the Fortune 500 were using Copilot for 365 already, and the number of people using it daily had more than doubled from three months earlier. Investors should keep an eye out for further updates next week, because this could be a major source of new revenue for Microsoft.

    But details about the Azure cloud platform will likely headline Microsoft’s quarterly report once again, and Azure AI will be a big reason why. Azure has become a preferred platform for businesses seeking to deploy AI because it offers them computing power via state-of-the-art data centers, and ready-made large language models (LLMs) from leading third-party providers like OpenAI. Those are two of the key ingredients required to build AI software.

    The number that investors need to watch

    Azure has regularly been the fastest-growing segment of Microsoft’s entire organization. During the fiscal first quarter, its revenue jumped by 33% year over year — more than double Microsoft’s overall revenue growth rate of 16%.

    Azure AI is becoming an important contributor to Azure’s overall growth. It was responsible for 12 percentage points of Azure’s 33% revenue growth during the first quarter, which was a record high. In the year-ago period, Azure AI contributed just 5 percentage points to Azure’s top-line result.

    A chart showing Microsoft Azure's revenue growth, and the contribution from Azure AI.

    Microsoft allocated $20 billion to capital expenditures during the fiscal 2025 first quarter, most of which went toward building AI-capable data centers. That followed a staggering $55.7 billion in capex during fiscal 2024.

    The revenue generated by Azure AI is one way for investors to measure the return Microsoft is seeing on that enormous spending. For example, if Azure AI continues to contribute an increasing amount of Azure’s growth, then it’s a positive indication that businesses are ramping up their spending on AI processing capacity and LLMs.

    Why Microsoft’s AI bets need to pay off

    Microsoft stock currently trades at a price-to-earnings (P/E) ratio of 35.4, which is a 7.5% premium to its 10-year average of 32.9. It’s also a premium to the tech-heavy Nasdaq-100 index, which includes Microsoft’s big-tech peers and currently has a P/E ratio of 32.5.

    MSFT PE Ratio Chart

    MSFT PE Ratio data by YCharts.

    In other words, Microsoft stock isn’t cheap right now. Its massive spending on AI infrastructure is taking a bite out of its earnings, so investors might be hesitant to support its elevated valuation if they aren’t seeing clear benefits from those outlays each quarter.

    For example, if Azure AI’s contribution to Azure’s growth begins to decline, that could flip investor sentiment on its head and trigger a correction in Microsoft stock. That’s why I think it’s the single most important number for investors to watch on Jan. 29.

    Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.



    As investors in Microsoft stock, it’s important to keep a close eye on key metrics that can impact the company’s performance. One crucial number to watch next week is Microsoft’s artificial intelligence (AI) revenue.

    With Microsoft heavily investing in AI technologies and solutions, the growth of its AI revenue can provide valuable insights into the company’s future prospects. As AI continues to play a significant role in various industries, including cloud computing, cybersecurity, and productivity tools, Microsoft’s success in this space can drive long-term growth and profitability.

    By monitoring Microsoft’s AI revenue numbers, investors can gauge the company’s ability to capitalize on the growing demand for AI solutions and stay ahead of competitors in this rapidly evolving market. Keep a close eye on this important AI metric next week to stay informed about Microsoft’s performance and potential opportunities for investment.

    Tags:

    Microsoft stock, investors, artificial intelligence, AI, important number, stock market, tech industry, investment, data analysis, financial forecast, AI technology, Microsoft Corporation, stock trading, market trends, predictive analytics, stock performance.

    #Microsoft #Stock #Investors #Important #Artificial #Intelligence #Number #Watch #Week

  • Vertiv Stock Soared Tenfold And Project Stargate May Send It Higher


    Shares of Vertiv, the provider of liquid cooling systems chilling the computers running generative AI, have soared more than tenfold in the last two years.

    Vertiv’s outstanding stock market performance has not surprised me. The company’s technology is essential for removing the heat generated by the computers training and operating generative AI models such as ChatGPT, according to my book Brain Rush.

    Despite the big rise in Vertiv stock — a winner in my Generative AI Stock Index — the Stargate AI project could create even more demand for Vertiv’s products, according to InvestorPlace.

    Moreover, the company’s optimism after its most recent earnings report and more recent strong growth forecasts suggest upside to the stock.

    Vertiv’s Strong Performance And Prospects

    Vertiv’s latest earnings report prompted bullish thoughts last November, according to my Forbes post. Since then, the company’s shares have increased 16%.

    Last October Vertiv raised its sales forecast for fiscal year 2024 and “exceeded expectations for Q3 results,” according to Investing.com. Vertiv’s $2.07 billion in Q3 2024 revenue exceeded investor expectations while the company forecast about $7.8 billion in 2024 revenue — $70 million ahead of analyst estimates, noted Investing.com.

    Vertiv’s strong financial performance derives from its market leadership in a rapidly growing industry. “We estimate they are the largest provider of thermal equipment and the second-largest vendor of electrical equipment to data centers globally,” noted BofA Securities.

    This year Gartner projects spending on data center systems will grow faster than overall IT spending. More specifically, the firm forecast a 34% rise in 2024 data center systems spending to $318 billion — with 15.5% growth to $367 billion in 2025, “outpacing the 9.3% rise that Gartner projects for overall global IT spending,” Investor’s Business Daily reported.

    In November, Vertiv raised its forecast for organic growth and profitability. More specifically, the company issued an upward revision of its compound annual growth rate through 2029 — expecting a 12% to 14% CAGR over the period. In 2029, Vertiv forecasts sales of about $14.4 billion and a higher margin target of 25%, Investing.com noted.

    How Stargate AI Project Could Boost Demand For Vertiv’s Technology

    The Stargate AI project — a joint venture between the White House, OpenAI, Oracle, and SoftBank — could invest up to $500 billion in U.S. advanced AI infrastructure by 2029, according to InvestorPlace.

    These funds would be spent in part on the construction of data centers and energy systems to build advanced AI models aimed at achieving Artificial General Intelligence.

    Investors boosted shares of companies supplying the technology required to complete the project. Following the announcement, Nvidia’s stock price increased 5%, AI chip designer Arm’s rose about 15%, and shares of Vertiv, chip design firm Lam Research, and semiconductor manufacturing equipment provider Applied Materials also rallied on the news, noted InvestorPlace.

    Where Will Vertiv Stock Go Next?

    Surprisingly, Wall Street analysts see Vertiv as slightly overvalued. That is the conclusion of 14 Wall Street analysts who estimate the company’s stock needs to drop 3.2% to reach their average target of $145 a share, noted TipRanks.

    Individual analysts appear more bullish. For example, Evercore ISI and Morgan Stanley maintained an outperform rating on Vertiv due to their confidence in the company’s growth — both setting price targets of $150 a share, according to Investing.com.

    Mutual funds eagerly purchased shares of Vertiv in 2024. For example, 1,850 of the funds owned Vertiv stock in September — a 25% increase from the number of funds owning the stock in March, according to IBD.

    As more capital pours into building AI data centers, Vertiv is well positioned to benefit from the need to keep them cool. That demand could enable the company to keep beating expectations and raising guidance — potentially boosting Vertiv’s stock price.



    Vertiv Holdings Co (NYSE: VRT) has been on an incredible run lately, with its stock price soaring tenfold in just a few short months. The company, which provides critical infrastructure solutions for data centers, communication networks, and other industries, has seen a surge in demand for its products and services as the world becomes increasingly reliant on digital technologies.

    One of the key drivers behind Vertiv’s impressive performance has been its involvement in Project Stargate, a groundbreaking initiative that aims to revolutionize the way data is stored and processed. With the potential to significantly reduce energy consumption and improve performance, Project Stargate could be a game-changer for Vertiv and its shareholders.

    Analysts are bullish on Vertiv’s prospects, with many predicting that the stock could continue to climb higher in the coming months. As more businesses and industries embrace digital transformation, the demand for Vertiv’s solutions is only expected to grow, further fueling the company’s growth trajectory.

    Investors who have already jumped on the Vertiv bandwagon have been handsomely rewarded, and with Project Stargate on the horizon, there could be even more gains in store for those who believe in the company’s long-term potential. Keep an eye on Vertiv stock as it continues its upward trajectory – the sky could be the limit for this innovative tech company.

    Tags:

    1. Vertiv stock price
    2. Vertiv stock news
    3. Vertiv stock analysis
    4. Vertiv stock performance
    5. Project Stargate
    6. Vertiv stock forecast
    7. Vertiv stock update
    8. Vertiv stock growth
    9. Vertiv stock potential
    10. Vertiv stock investment opportunities

    #Vertiv #Stock #Soared #Tenfold #Project #Stargate #Send #Higher

  • Tesla Stock Price Prediction


    Tesla Stock Price Prediction: Bear Flag Formation Developing (See the 4 hour Chart Below)

    Tesla’s (TSLA) stock has been trading within a defined range recently, and the latest price action is printing a concerning technical pattern—a bear flag. Here’s a breakdown of what this means for the Tesla stock price prediction and its implications for traders and investors.

    Why Tesla Stock Price Prediction Points to $360

    • Bear Flag Pattern: Tesla forms a bearish continuation pattern.
    • Anchored VWAP Cross: Indicates weakening bullish momentum as price crosses down.
    • Price Target: A potential drop to $360 based on the bear flag projection.
    • Upcoming Catalyst: Tesla’s earnings report in three days could act as a trigger for heightened volatility.

    TSLA Stock Technical Analysis: Bear Flag Formation

    Tesla stock price prediction to 360 as it prints a bear flag

    • What Is Happening: On the 4-hour chart, Tesla has formed a bear flag pattern. This bearish setup follows a significant decline and features a consolidation phase that angles upward within a red channel.
    • Key Signs:
      • Price touched the upper boundary of the red channel twice, establishing a second touchpoint.
      • A lower high has formed, signaling weakening bullish momentum.

    Anchored VWAP Insights for Tesla Stock Analysis

    • Key Level: The purple line represents the Anchored VWAP (Volume Weighted Average Price) from the start of 2025.
    • What It Means: Price crossing below the Anchored VWAP shows the average buyer is now underwater, potentially adding selling pressure as investors exit positions.

    Tesla Stock Forecast: Key Levels to Watch

    • Bear Flag Target: $360 aligns with previous support zones and the measured move of the bear flag’s pole.
    • Catalyst: Tesla’s earnings report in three days could provide the momentum needed to confirm this downside move.
    • Key Technical Zones:
      • Lower boundary of the bear flag for potential breakdown.
      • Stops placed above the upper boundary for risk management.

    TSLA Stock Price Prediction: Trade Strategy

    • Bearish Setup:
      • Entry: Consider short positions on a confirmed breakdown below the bear flag. Or follow the ForexLive.com TradeCompass for possible earlier entries, as you take quick partial profits (when the trade succeeds) and can hang on to ‘runners’ for a swing trade.
      • Stops: Above the upper boundary of the channel.
      • Target: Around $360, based on the measured move projection.
    • Risk Management:
      • Earnings volatility could impact this trade setup, so position sizing and proper stop placement are crucial.

    ForexLive.com TradeCompass on Tesla Stock

    Conclusion: Tesla Stock Forecast Remains Bearish

    Tesla’s 4-hour chart is flashing warning signals with the bear flag formation. The crossing down of the Anchored VWAP adds another layer of bearish confirmation. While earnings could introduce surprises, technically, a move toward $360 seems probable. Traders should monitor these levels and prepare for potential volatility.

    Disclaimer: This analysis reflects the author’s opinion and is not financial advice. For additional views and insights, visit ForexLive.com.



    As we head into the second half of the year, many investors are closely watching the stock price of electric vehicle giant Tesla. After a rollercoaster ride in the first half of 2021, where the stock surged to record highs before experiencing a significant pullback, the question on everyone’s mind is: where will Tesla’s stock price go next?

    With the recent chip shortage impacting production and delivery timelines, as well as increased competition in the EV market from traditional automakers, some analysts are predicting a bearish outlook for Tesla. They believe that the stock price may continue to face pressure in the coming months, potentially dropping below current levels.

    On the other hand, Tesla bulls remain optimistic about the company’s long-term growth prospects. With new factories in the works, innovative technology advancements, and a loyal customer base, they believe that Tesla’s stock price will bounce back and reach new highs before the end of the year.

    Ultimately, predicting the future stock price of Tesla is a challenging task, as it is influenced by a multitude of factors. Whether you’re a bear or a bull, one thing is for certain – the stock price of Tesla is sure to keep investors on their toes in the months ahead. What are your predictions for Tesla’s stock price? #Tesla #StockPricePrediction #Investing #ElectricVehicles

    Tags:

    Tesla, stock price, prediction, Tesla stock, bearish forecast, market analysis, financial outlook, investment strategy, Tesla Inc, stock market trends, stock market news, stock market forecast.

    #Tesla #Stock #Price #Prediction

  • Going Into Earnings, Is Tesla Stock a Buy, a Sell,…


    Tesla TSLA is set to release its fourth-quarter earnings report on Jan. 29. Here’s Morningstar’s take on what to look for in Tesla’s earnings and stock.

    • Morningstar Rating: ★

    • Economic Moat: Narrow

    • Morningstar Uncertainty Rating: Very High

    Earnings Release Date

    • Wednesday, Jan. 29, 2025, after the close of trading

    What to Watch for in Tesla’s Q4 Earnings

    • Automotive gross profit margins: Tesla’s 495,570 vehicles delivered were a quarterly record for the company. As a result, the firm should benefit from operating cost leverage from higher volumes. We also expect it will benefit from raw materials deflation, though this may be partially offset by lower average selling prices.

    • Autonomous driving software progress: In 2025, Tesla aims to launch its Level 3 Full Self-Driving (FSD) unsupervised software in California and Texas and roll out its Level 2 FSD supervised software in Europe and China. These are key milestones for management’s vision of a Robotaxi service.

    • New vehicle launch: Tesla plans to launch a smaller SUV, nicknamed the Model Q, later this year. This vehicle will likely have a price in the mid-$30,000 range and allow Tesla to compete in the affordable SUV market. We view this as key to Tesla’s deliveries growth in 2025 and beyond, so we will look for updates on the timeline and any details management will share.

    • Energy generation and storage growth: The energy generation and storage business had record battery storage deployments in 2024. This business recently opened a new factory in China that aims to double its production once ramped up. We await management’s growth plan for this business.

    Tesla Stock Price

    Source: Morningstar Direct.

    Fair Value Estimate for Tesla

    With its 1-star rating, we believe Tesla’s stock is significantly overvalued compared with our long-term fair value estimate of $210 per share. We use a weighted average cost of capital of just under 9%. Our equity valuation adds back nonrecourse and nondilutive convertible debt. In 2024, Tesla’s deliveries came in at 1.79 million, slightly below the 1.81 million achieved in 2023. In 2025, we forecast deliveries will return to growth as the affordable vehicle is launched by midyear. However, we forecast deliveries will come in below management guidance for 20%-30% growth.

    Read more about Tesla’s fair value estimate.

    Tesla Stock vs. Morningstar Fair Value Estimate

    Source: Morningstar Direct.

    Economic Moat Rating

    We award Tesla a narrow moat based on its intangible assets and cost advantage. The company’s strong brand cachet as a luxury automaker commands premium pricing, while its EV manufacturing expertise lets it make its vehicles more cheaply than competitors.

    We see the potential for Tesla to outearn its cost of capital over at least the next 20 years, which is the measurement we use for a wide moat rating. However, the second 10-year period carries significant uncertainty for both Tesla and the broader automotive industry, given the rapid advancement of autonomous vehicle technologies, which could transform how consumers use vehicles. As such, we view a narrow moat rating, which assumes a 10-year excess return duration, as more appropriate.

    Read more about Tesla’s economic moat.

    Financial Strength

    Tesla is in excellent financial health. Cash, cash equivalents, and investments were over $33.6 billion and far exceeded total debt as of Sept. 30, 2024. Total debt was around $7.4 billion, while total debt excluding vehicle and energy product financing (nonrecourse debt) was a little over $10 million.

    To fund its growth plans, Tesla has historically used credit lines, convertible debt financing, and equity offerings to raise capital. In 2020, the company raised $12.3 billion in three equity issuances. We think this makes sense, as funding massive growth solely through debt adds additional risk in a cyclical industry.

    Read more about Tesla’s financial strength.

    Risk and Uncertainty

    We assign Tesla a Very High Uncertainty Rating, as we see a wide range of potential outcomes for the company. The automotive market is highly cyclical and subject to sharp demand declines based on economic conditions. As the EV market leader, Tesla is vulnerable to growing competition from traditional automakers and new entrants. As new lower-priced EVs enter the market, the firm may be forced to continue to cut prices, reducing its industry-leading profits. With more EV choices, consumers may view Tesla less favorably.

    The firm is investing heavily in capacity expansions that carry the risk of delays and cost overruns. The company is also investing in R&D to maintain its technological advantage and generate software-based revenue, with no guarantee these investments will bear fruit. Tesla’s CEO effectively owns a little more than 20% of its stock and uses it as collateral for personal loans, which raises the risk of a large sale to repay debt.

    Read more about Tesla’s risk and uncertainty.

    TSLA Bulls Say

    • Tesla could disrupt the automotive and power generation industries with its technology for EVs, AVs, batteries, and solar generation systems.

    • Tesla will see higher profit margins as it reduces unit production costs over the next several years.

    • Tesla’s full self-driving software should generate growing profits in the coming years as the technology continues to improve, leading to increased adoption by Tesla drivers and licensing from other auto manufacturers.

    TSLA Bears Say

    • Traditional automakers and new entrants are investing heavily in EV development, resulting in Tesla seeing a deceleration in sales growth and cutting prices due to increased competition, eroding profit margins.

    • Tesla’s reliance on batteries made in China for its lower-price Model 3 vehicles will hurt sales as these autos will not qualify for US subsidies.

    • Solar panel and battery prices will decline faster than Tesla can reduce costs, resulting in little to no profits for the energy generation and storage business.

    This article was compiled by Gautami Thombare.

    The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.



    or a Hold?

    With Tesla’s highly anticipated earnings report just around the corner, investors are left wondering whether now is the right time to buy, sell, or hold onto the electric vehicle giant’s stock.

    On one hand, Tesla has consistently beaten Wall Street’s expectations with its impressive revenue growth and expanding market share. The recent surge in demand for electric vehicles, coupled with Tesla’s innovative technology and sustainable business model, has positioned the company as a leader in the industry.

    However, some analysts have raised concerns about Tesla’s high valuation and the potential impact of supply chain disruptions and increasing competition from other automakers. With the stock trading at historically high levels, there is a risk of a potential pullback in the near future.

    So, is Tesla stock a buy, a sell, or a hold going into earnings? Ultimately, the decision will depend on your own risk tolerance and investment strategy. It’s always important to do your own research and consider the long-term prospects of the company before making any investment decisions.

    Tags:

    • Tesla stock
    • Tesla earnings
    • Tesla stock analysis
    • Tesla investment
    • Tesla stock buy or sell
    • Tesla stock price
    • Tesla stock forecast
    • Tesla stock news
    • Tesla stock performance
    • Tesla stock market

    #Earnings #Tesla #Stock #Buy #Sell..

  • ‘A Major Red Flag,’ Says Investor About Tesla Stock


    According to Elon Musk, Tesla, Inc. (NASDAQ:TSLA) has always been more than just a car company. It is not hard to see the logic, as TSLA’s focus on technology, innovation, and AI have helped create a different dynamic surrounding the company than that of a traditional vehicle manufacturer.

    And yet, at the end of the day, the company’s most tangible products—at least for now—are vehicles. Judging by this metric, Tesla stumbled a bit during 2024, experiencing its first year-over-year decline in vehicle sales, while slowing Q4 deliveries failed to match expectations.

    What should investors be expecting in the run-up to the release of the EV maker’s Q4 2024 print on January 29th? Investor Bohdan Kucheriavyi believes that a harsh wake-up call could be on the horizon.

    “Now that its sales are declining in a favorable environment, while various challenges are likely to increase in 2025 under the Trump administration, the major problems for Tesla might just be getting started,” explains the 5-star investor.

    While honing in on the disappointing sales and delivery numbers, Kucheriavyi anticipates that more challenges are likely to pop up under Trump 2.0 due to regulatory changes that are on the docket.

    For instance, Tesla was one of the largest beneficiaries of the $7,500 EV tax credit, the investor notes. The probable elimination of this tax credit could very well have a harmful impact on sales, and profits.

    “If the regulatory credits indeed disappear, Tesla’s profit margins could tank to significantly lower levels,” details Kucheriavyi.

    Further squeezing margins, the investor mentions that any trade kerfuffles with Canada and Mexico would also be acutely felt. This is particularly the case when it comes to the company’s supply chains, as up to 25% of the parts used to make Tesla vehicles come from Mexico.

    On the other hand, the investor acknowledges that the likelihood of more lenient regulations under Trump could support the roll-out of TSLA’s self-driving vehicles. The expected release of the compact Tesla Model Q might also provide a bump for the stock in the coming year, adds Kucheriavyi.

    Still, the investor is not sold by the bullish arguments.

    “While Tesla still has some growth opportunities, it’s going to be hard for the company to offset the decline in vehicle sales,” concludes the investor, who is rating TSLA a Sell. (To watch Kucheriavyi’s track record, click here)

    Wall Street’s views, on the other hand, are a bit mixed. With 12 Buy, 10 Hold, and 8 Sell ratings, TSLA holds a consensus Hold (i.e. Neutral) rating. Its 12-month average price target of $345.11 hints at losses of ~15% in the coming year. (See TSLA stock forecast)

    To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.

    Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.



    Investors beware! A major red flag has been raised about Tesla stock. With the electric car company facing numerous challenges and controversies, some investors are growing increasingly cautious about the future of the stock.

    From production delays to executive turnover to regulatory scrutiny, there are a number of factors contributing to the uncertainty surrounding Tesla. The recent resignation of CEO Elon Musk as chairman of the board only adds to the turmoil.

    While Tesla has been a favorite among investors in the past, some are now questioning whether the company can continue to deliver on its promises and maintain its high valuation.

    As one investor put it, “The writing is on the wall for Tesla. It’s time to take a step back and reassess our investment in this company.”

    Whether you’re a long-time Tesla investor or considering buying in, it’s important to carefully evaluate the risks and potential rewards before making any decisions. Keep a close eye on the news and developments surrounding the company, as the future of Tesla stock remains uncertain.

    Tags:

    tesla stock, investor, red flag, major red flag, tesla, stock market, stock investment, investing, tesla news, tesla stock price, stock market analysis

    #Major #Red #Flag #Investor #Tesla #Stock

  • Is Super Micro Computer’s Stock Too Cheap to Pass Up?


    Buying a top growth stock after it plummets in value can have the potential to produce significant returns. But investors should be careful in picking up stocks which crashed heavily, as there are often good reasons for the sell-off. The risk is you may end up buying a stock that’s destined to fall even further in value.

    Super Micro Computer (NASDAQ: SMCI) is a good example of a stock which may have a lot of potential upside that’s down big. In just six months, its shares dropped 57%. There are significant questions surrounding the company as it has recently changed auditors, and it has been several months since it last filed its quarterly earnings.

    But is the stock cheap enough to be worth buying right now despite these concerns?

    As cheap as Super Micro’s stock looks right now, everything depends on what its new auditor, BDO, says and what its audited financials show. The Nasdaq exchange granted Super Micro an extension until Feb. 25 to file its annual report for the 2024 fiscal year ending June 30, 2024, and its first quarter 2025 report for the period ending Sept. 30, 2024. If it can do that successfully, that should calm investors’ fears about the stock.

    The big concern back in October was that its auditor at the time, Ernst & Young, resigned. And it wasn’t just the fact that it resigned which was the concern; it was the manner in which it did that raised eyebrows. The auditor had reservations about the company’s internal controls and the board’s independence from CEO Charles Liang. Its concerns were so great that the auditor was “unwilling to be associated with the financial statements prepared by management.”

    It’s not unusual for a company to change auditors or even to have disagreements with them. But the scale of this disagreement and the nature of the resignation letter raised some big questions around the business. If, however, BDO gives Super Micro’s financials its seal of approval, there are no major adjustments to be made, and the company files its quarterly and annual reports next month in accordance with its agreement with the Nasdaq’s regulators, shares of Super Micro could soar.

    But if that doesn’t end up happening, then there could be even greater sell-off to follow.

    By looking at Super Micro’s stock, it may appear that it’s still worth the risk, since it’s trading at a fairly modest 15 times earnings. For a company that is involved with selling servers and IT infrastructure, and which has benefited greatly from an influx of demand due to artificial intelligence (AI), it may seem like it’s a no-brainer buy, even if there is some risk relating to its financials.



    Is Super Micro Computer’s Stock Too Cheap to Pass Up?

    Super Micro Computer, Inc. (SMCI) is a global leader in high-performance, high-efficiency server technology and innovation. With a strong track record of delivering cutting-edge solutions to a wide range of industries, including cloud computing, data centers, and enterprise IT, Super Micro Computer has established itself as a key player in the tech industry.

    Despite its impressive performance and market position, Super Micro Computer’s stock has been trading at a relatively low price compared to its competitors. This has sparked speculation among investors and analysts about whether the stock is a hidden gem that is too good to pass up.

    With a strong balance sheet, solid financial performance, and a promising outlook for future growth, some experts believe that Super Micro Computer’s stock is undervalued and presents a great buying opportunity for investors looking to capitalize on the company’s potential.

    However, others caution that the tech industry is highly competitive and unpredictable, and that there may be risks associated with investing in Super Micro Computer at this time. It’s important for investors to conduct their own research and due diligence before making any investment decisions.

    What do you think? Is Super Micro Computer’s stock too cheap to pass up, or is it a risky bet? Share your thoughts in the comments below.

    Tags:

    Super Micro Computer, stock, investment, cheap, opportunity, analysis, market, technology, growth, potential, value, financial, stock market, NASDAQ, SMCI.

    #Super #Micro #Computers #Stock #Cheap #Pass

  • Is Micron Technology (MU) the Most Promising Growth Stock According to Wall Street Analysts?


    We recently published a list of 12 Most Promising Growth Stocks According to Wall Street Analysts. In this article, we are going to take a look at where Micron Technology, Inc. (NASDAQ:MU) stands against other most promising growth stocks according to Wall Street analysts.

    The new regulatory environment has the technology sector eyeing prominent growth opportunities in 2025 and beyond. Big Tech is set to release earnings next week and investors are excited to see how the group performed in the last quarter. On January 24, Dan Ives, managing director and global head of technology research at Wedbush Securities, appeared in an interview on Morning Brief at Yahoo Finance to share his 2025 outlook for the tech sector.

    Ives suggested that the Street is underestimating the potential of Big Tech and advises investors to “grab popcorn” for the earnings week ahead. He also shared his optimism towards the billion-dollar investments made by the group before 2025 and claimed that the “fourth industrial revolution” has just begun. He also suggested that AI spending by companies heavily depends on the use cases for the company, and emphasized the unique selling point for each of the names in mega-cap tech names. Ives stated that the ability to monetize stall bases has been the crucial factor driving the growth among tech names, which happens to mimic what the hyperscalers have done.

    Ives emphasized that investments in artificial intelligence are now going to play out on the consumer side and remained confident that Big Tech is a step ahead in terms of the AI journey to monetization. He believes that seeing the return on investment play out, the Street is underestimating the growth in the tech sector, not just for the earnings next week but for 2025 as a whole.

    He also suggested that the regulatory environment is drastically changing especially in favor of the autonomous vehicles market and expects a massive year ahead for the segment and stocks associated with self-driving technologies and autonomous vehicle driving.

    The year ahead looks super solid for companies in the growth sector, namely artificial intelligence, autonomous vehicles, biotechnology, fintech, and software. While most of it is because of the efforts made by these names over the past year, the promising regulatory environment is going to boost the position of these stocks significantly.

    We used Finviz to look for companies operating in growth sectors such as technology, financials (fintech), biotech, and communication services. We only focused on companies with a market cap of at least $2 billion. We then examined the analyst upside surrounding 25 stocks and picked the 12 stocks with the highest upside as of January 23, 2025. We have also included the hedge fund sentiment around each stock.



    Micron Technology (MU) has been making waves in the tech industry with its cutting-edge memory and storage solutions. With a strong track record of innovation and growth, many Wall Street analysts are touting Micron as one of the most promising growth stocks in the market.

    The company’s recent earnings report showed impressive revenue and profit growth, surpassing analyst expectations. This has fueled optimism among investors and analysts alike, who believe that Micron is well-positioned to capitalize on the growing demand for memory and storage solutions in various industries.

    Furthermore, Micron’s strategic partnerships and investments in research and development have positioned it as a leader in the competitive semiconductor market. Analysts see this as a key driver for future growth and believe that the company has the potential to continue outperforming its competitors.

    Despite the recent volatility in the tech sector, many analysts remain bullish on Micron’s long-term prospects. With a solid financial foundation and a strong product portfolio, Micron is considered a top growth stock by many on Wall Street.

    Investors looking for a promising growth stock with a solid track record and strong potential for future growth may want to consider adding Micron Technology to their portfolio. As always, it’s important to conduct thorough research and consult with a financial advisor before making any investment decisions.

    Tags:

    1. Micron Technology stock analysis
    2. Wall Street analysts on Micron Technology
    3. Growth potential of Micron Technology
    4. MU stock forecast
    5. Micron Technology investment analysis
    6. MU stock price prediction
    7. Micron Technology market outlook
    8. Wall Street views on MU stock
    9. Micron Technology growth stock analysis
    10. MU stock performance analysis

    #Micron #Technology #Promising #Growth #Stock #Wall #Street #Analysts

  • Here’s 1 Trillion-Dollar Artificial Intelligence (AI) Chip Stock to Buy Hand Over Fist While It’s Still a Bargain


    Taiwan Semiconductor is a newer member of the trillion-dollar club after its stock soared 90% in 2024.

    There are currently 10 public companies in the world boasting a market capitalization over $1 trillion. Among newer entrants into the trillion-dollar club is chip stock Taiwan Semiconductor Manufacturing (TSM -1.22%).

    In 2024, the company, also known as TSMC, gained 90% — essentially doubling the company’s market cap from roughly $500 billion to more than $1 trillion today. Indeed, this is a steep increase in valuation in just 12 months, but what if I told you the stock is still a bargain?

    Below, I’ll make the case for why TSMC is attractively priced right now and why it should be on growth investors’ radar.

    Examining TSMC’s current financial profile

    In the table below, you can see TSMC’s annual growth figures for both revenue and profit across the last several quarters:

    Metric Q1 2024 Q2 2024 Q3 2024 Q4 2024
    Revenue growth (YOY)  16.5% 40.1% 39.0% 38.8%
    Earnings per share growth (YOY) 8.9% 36.3% 54.2% 57.0%

    Data source: Taiwan Semiconductor. YOY = year over year.

    Over the last 12 months, TSMC has rapidly accelerated its top-line growth. But more importantly, the company’s gross margin is widening, leading to strong earnings growth as well. With a financial profile like this, it makes sense that shares of TSMC have been soaring to new heights.

    Moreover, industry trends suggest the company’s long-term growth potential looks equally robust. Hyperscalers such as Microsoft, Alphabet, Amazon, and Oracle all plan on spending billions on AI infrastructure over the next several years, which will require TSMC’s leading foundry operations.

    TSM Revenue Estimates for Current Fiscal Year Chart

    Data by YCharts.

    To my eyes, the revenue and earnings projections illustrated above suggest TSMC is well positioned to continue capturing a significant portion of AI spending as new data centers and chipware emerge onto the scene.

    And yet, even with impressive revenue and earnings-per-share projections, TSMC stock is far from expensive.

    An engineer working in a chip factory.

    Image source: Getty Images.

    Investors could be significantly underpricing this AI gem

    It’s understandable to believe you already missed the boat with TSMC. Stocks do not rise at a 90% pace forever, and a trillion-dollar valuation could give the illusion that shares of TSMC don’t have much higher to go.

    The stock trades for $223 as of this writing — nearly an all-time high. Looking at the momentum fueling TSMC could further suggest the stock is overvalued.

    However, even with its soaring share price, TSMC’s forward price-to-earnings (P/E) ratio is only 25. I say “only” because the average forward P/E of the S&P 500 is 24.

    As I outlined in the table and chart in the prior section, TSMC is a rare example of a business this size that’s accelerating it top- and-bottom-line growth. More importantly, the company’s EPS growth is climbing at a faster rate than sales. This is important to understand because when you analyze TSMC using earnings-based methodologies, the company’s valuation begins to appear much more reasonable.

    To me, the current valuation expansion occurring for TSMC is completely appropriate. This is a period of normalization after it traded at a discount to other chip companies for a prolonged period.

    I’m bullish that secular tailwinds fueling AI will remain strong, thereby supporting TSMC’s leading position in the chip industry. For this reason, Taiwan Semi could witness many more years of compounding revenue and earnings growth. At its current levels, investors should be pouncing on this growth stock.

    Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Adam Spatacco has positions in Alphabet, Amazon, and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, Oracle, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.



    Are you looking for the next big investment opportunity in the world of artificial intelligence (AI)? Look no further than this trillion-dollar AI chip stock that is currently flying under the radar. With the potential to revolutionize the way we use technology, this stock is a must-buy for investors looking to capitalize on the AI boom.

    As AI continues to reshape industries and drive innovation, the demand for high-performance AI chips is only going to increase. This company is at the forefront of developing cutting-edge AI chip technology that is set to disrupt the market and deliver massive returns for shareholders.

    Despite its incredible growth potential, this stock is still trading at a bargain price, making it the perfect time to buy in before it takes off. Don’t miss out on this trillion-dollar opportunity to invest in the future of AI technology. Buy this stock hand over fist and watch your portfolio soar to new heights.

    Tags:

    1. Artificial Intelligence chip stock
    2. Trillion-dollar investment opportunity
    3. AI technology investment
    4. Bargain AI stock
    5. Best AI chip stock to buy
    6. Top AI investment pick
    7. Future of AI technology
    8. High-growth AI stock
    9. Investing in AI chips
    10. AI stock market analysis

    #Heres #TrillionDollar #Artificial #Intelligence #Chip #Stock #Buy #Hand #Fist #Bargain

  • NVDA, GOOGL, or META: Which “Strong Buy” Magnificent 7 Stock has the Highest Upside Potential?


    The Magnificent 7 stocks: Alphabet (GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA), are prominent tech companies that are known for their market dominance, innovation, and influence on the NASDAQ (NDAQ) and S&P 500 (SPX) indices. In 2024, semiconductor giant Nvidia led the pack, with a 171% gain fueled by the AI wave. Using TipRanks’ Stock Comparison Tool, we will compare three Magnificent 7 stocks with a Strong Buy consensus rating and “Perfect 10” smart score to pick the one with the highest upside potential, according to analysts.

    Nvidia (NASDAQ:NVDA)

    Nvidia stock has rallied over 132%, thanks to the robust demand for its advanced GPUs (graphics processing units) that are required to power AI models. The impressive growth in the company’s revenue and earnings in recent quarters reflects the solid momentum that NVDA’s GPUs are witnessing due to the ongoing generative AI boom. Given these AI tailwinds, Nvidia has surpassed iPhone maker Apple (AAPL) to become the world’s most valuable company with a market cap of $3.61 trillion.

    Looking ahead, there are high expectations from the company’s Blackwell platform. Moreover, the company is expected to benefit from the recently announced U.S. AI infrastructure project called Stargate.

    Is NVDA a Good Stock to Buy?

    Recently, Barclays analyst Thomas O’Malley highlighted the semiconductor stocks that he likes for 2025, including Nvidia. The analyst stated that Nvidia remains the dominant player in AI compute. He expects the company’s data center compute business to grow by nearly 60% year-over-year in 2025, driven by next-generation GPUs and advancements in networking architecture.

    O’Malley expects the company’s Blackwell offering to generate around $15 billion in revenue in the first quarter, with the potential to more than double the number quarter-over-quarter. Additionally, the analyst sees significant upside in the second half of 2025, supported by the robust momentum in the B200 cycle and the growth in the B300/Ultra offerings.

    With 36 Buys and three Holds, Nvidia stock scores a Strong Buy consensus rating. The average NVDA stock price target of $176.86 implies 24% upside potential.

    See more NVDA analyst ratings

    Alphabet (NASDAQ:GOOGL)

    Alphabet shares have risen about 35% over the past year. The company reported market-beating third-quarter results, with 35% year-over-year growth in its Cloud unit and continued strength in the Search and YouTube businesses.

    Despite investors’ concerns about the impact of growing competition in Search and regulatory pressures, Alphabet is optimistic about maintaining its dominance through its AI offerings.

    Alphabet is scheduled to announce its Q4 2024 results on February 4. Analysts expect the company’s EPS (earnings per share) to rise more than 29% year-over-year to $2.12. They forecast a 12% growth in Q4 revenue to $96.62 billion.

    What Is the Target Price for GOOGL Stock?

    Heading into Alphabet’s Q4 2024 results, Truist Securities analyst Youssef Squali reiterated a Buy rating on the stock with a price target of $225. The analyst expects Q4 results to reflect persistent momentum in Search, YouTube, and Cloud, with AI continuing to be in focus.

    Notably, Squali expects GOOGL’s Q4 2024 results to be almost in line with the Street’s estimates, with revenue up by low double-digits. Moreover, the analyst expects an operating margin of more than 30%, as efforts to control operating expenses are expected to have more than offset higher capital expenditure.

    Overall, Alphabet stock scores Wall Street’s Strong Buy consensus rating based on 24 Buys and eight Holds. The average GOOGL stock price target of $217.93 indicates about 9% upside potential from current levels.

    See more GOOGL analyst ratings

    Meta Platforms (NASDAQ:META)

    Meta Platforms stock has rallied 66% over the past year, thanks to the company’s streamlining efforts and rebound in ad spending. However, regulatory pressures, significant losses in the Reality Labs unit (operating loss of over $58 billion since 2020), and massive investments in AI could limit the upside in the stock this year.

    On Friday, Meta CEO Mark Zuckerberg said that the company plans to invest $60 billion to $65 billion this year in capex to build AI infrastructure. Zuckerberg views 2025 as “a defining year for AI.” The company expects its massive AI investments to drive innovation and future growth.

    Meanwhile, Meta Platforms is scheduled to announce its Q4 2024 on January 29. Analysts expect the social media giant to report about a 27% year-over-year jump in Q4 EPS to $6.75. Revenue is expected to rise 17% to $46.97 billion.

    Is META Stock a Buy, Sell, or Hold?

    In reaction to Zuckerberg’s announcement of the $60 billion to $65 billion in capex to support the company’s product roadmap, Citi analyst Ronald Josey reiterated a Buy rating on META stock with a price target of $75 and called it his Top Pick. Josey added that while Meta’s 2025 capex range is modestly ahead of his $58.5 billion estimate, he expects these investments to drive continued engagement growth and monetization benefits as “newer product vectors emerge, like Search (with Meta AI), Agents (with AI Studio), and Enterprise (with Llama 4), among others.”

    Overall, Wall Street has a Strong Buy consensus rating on META stock based on 40 Buys, three Holds, and one Sell rating. The average META stock price target of $692.23 implies about 7% upside potential.

    See more META analyst ratings

    Conclusion

    While analysts are highly bullish on the three Magnificent 7 stocks discussed here, they see higher upside potential in NVDA stock even after a stellar rally over the past year. Nvidia continues to capture the solid demand for its advanced GPUs in the AI space and is well-positioned to maintain its dominance in the semiconductor market through continued innovation and strong execution.

    Disclosure



    When it comes to investing in tech stocks, it can be overwhelming to choose which ones have the most potential for growth. Three standout companies that are currently rated as “Strong Buy” by analysts are NVIDIA (NVDA), Alphabet Inc. (GOOGL), and Meta Platforms Inc. (META).

    These companies are known for their innovative products and services, and have shown strong performance in recent years. But which one of these “Magnificent 7” stocks has the highest upside potential for investors?

    In this post, we will dive into each company’s recent performance, growth prospects, and overall market sentiment to determine which one stands out as the top pick for investors looking for substantial returns. Stay tuned as we analyze NVDA, GOOGL, and META to help you make an informed investment decision.

    Tags:

    NVDA, GOOGL, META, stock analysis, strong buy, investment, upside potential, market trends, tech stocks, growth opportunities, financial analysis

    #NVDA #GOOGL #META #Strong #Buy #Magnificent #Stock #Highest #Upside #Potential

  • Should You Buy Intel Stock Before Jan. 30?


    Motley Fool – Tue Jan 21, 10:15AM CST

    Intel(NASDAQ: INTC) struggles to get on the right path as the company seeks better leadership.

    Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. See the 10 stocks »

    *Stock prices used were the afternoon prices of Jan. 16, 2025. The video was published on Jan. 18, 2025.

    Should you invest $1,000 in Intel right now?

    Before you buy stock in Intel, consider this:

    The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Intel wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

    Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $843,960!*

    Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. TheStock Advisorservice has more than quadrupled the return of S&P 500 since 2002*.

    See the 10 stocks »

    *Stock Advisor returns as of January 21, 2025

    Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intel. The Motley Fool recommends the following options: short February 2025 $27 calls on Intel. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

    This article contains syndicated content. We have not reviewed, approved, or endorsed the content, and may receive compensation for placement of the content on this site. For more information please view the Barchart Disclosure Policy here.



    As we approach the end of January, many investors are wondering whether it’s a good time to buy Intel stock before their upcoming earnings report on January 30. With the recent volatility in the market and concerns about Intel’s competition in the semiconductor industry, it’s important to weigh the pros and cons before making any investment decisions.

    On one hand, Intel has a strong track record of innovation and a dominant market position in the semiconductor industry. They have a diverse product portfolio and a loyal customer base, which could bode well for their future growth potential. Additionally, Intel’s stock price has been relatively stable in recent months, making it a potentially attractive investment for those looking for a more conservative option.

    On the other hand, Intel has faced increased competition from companies like AMD and Nvidia, who have been gaining market share in the semiconductor space. Additionally, Intel has experienced some setbacks in their manufacturing process, which could impact their ability to deliver new products on time and maintain their competitive edge.

    Ultimately, whether or not you should buy Intel stock before January 30 will depend on your individual investment goals and risk tolerance. It’s important to do your own research and consult with a financial advisor before making any investment decisions. Keep a close eye on Intel’s earnings report and any guidance they provide for the future, as this could have a significant impact on their stock price in the short term.

    Tags:

    • Intel stock
    • Intel stock price
    • Intel stock analysis
    • Intel stock forecast
    • Should I buy Intel stock
    • Intel stock before Jan 30
    • Intel stock news
    • Intel stock prediction
    • Intel stock market
    • Investing in Intel stock

    #Buy #Intel #Stock #Jan

  • Hello, how can I help you today?
Gathering thoughts.. ...
Powered by AI
Chat Icon