Billionaires Shift Focus from Nvidia to Emerging AI Stocks Amid Market Uncertainties

Forget Nvidia: Prominent Billionaires Are Selling It and Piling Into 2 Hypergrowth Stocks That Have Little to Do With Artificial Intelligence (AI)

Three decades ago, the advent of the internet changed the growth trajectory of corporate America forever. Since then, investors have been waiting for the next game-changing innovation, technology, or trend to rival what the internet did for businesses. After decades of patience, it appears as if artificial intelligence (AI) has been anointed as the next leap forward in innovation. The rise of AI is all about the use of software and systems for tasks that would typically be undertaken by humans. What gives AI such broad-reaching potential is the capacity for software and systems to learn and evolve without human intervention. Becoming more proficient at assigned tasks, as well as learning new skills, gives this technology a limitless long-term ceiling. Image source: Getty Images. Yet in spite of the otherworldly growth forecasts attached to AI -- the analysts at PwC expect AI to add $15.7 trillion to the global economy by 2030 -- not everyone on Wall Street is convinced of its upside. Based on Form 13F filings that detail the trading activity of Wall Street's smartest asset managers, prominent billionaire investors were big-time sellers of Nvidia (NASDAQ: NVDA) stock during the March-ended quarter. Over a half-dozen prominent billionaires have pared down their stakes in Nvidia Although artificial intelligence euphoria has largely been credited with pushing Wall Street's major stock indexes to fresh all-time highs, eight successful billionaire money managers chose to send shares of Nvidia to the chopping block during the March-ended quarter (total shares sold in parenthesis and adjusted for Nvidia's 10-for-1 stock split in June): While simple profit-taking following Nvidia's stellar run-up might explain some of this selling activity, history and valuation are the likelier catalysts. As I pointed out earlier, it's been about 30 years since the internet began changing the growth trajectory for businesses and the U.S. economy. Since then, numerous next-big-thing innovations and trends have come and gone. While some of these technologies and trends have gone on to be wildly successful over the long run, they all endured an early stage bubble. All new technologies and trends need time to mature, and artificial intelligence isn't any different. If the AI bubble were to burst, as history suggests it will, no company would take it on the chin more than Nvidia. Nvidia is also set to face growing competition for GPU real estate in high-compute data centers. What optimists seem to be overlooking is that even if Nvidia maintains its compute advantage, its inability to meet overwhelming demand is going to allow competitors to grab market share. Moreover, its four top customers (all members of the "Magnificent Seven") are developing AI-GPUs for their data centers. Even though these internally developed chips lack the compute advantage of Nvidia's H100 GPU, they're cheaper and are going to take up valuable data center real estate. The final nail in the coffin is that Nvidia's trailing-12-month (TTM) price-to-sales (P/S) ratio is on par with the peak TTM P/S ratios seen from market leaders like Cisco Systems and Amazon prior to the bursting of the dot-com bubble. What's truly interesting is that while these prominent billionaire money managers were dumping shares of Nvidia, they were busy piling into two hypergrowth stocks that have little or nothing to do with AI. The first supercharged growth stock that caught the attention of the billionaire asset managers who've been selling shares of Nvidia is hydrogen fuel-cell solutions company Plug Power (NASDAQ: PLUG). Nvidia's three biggest billionaire sellers were all buyers of Plug Power stock during the first quarter (total shares purchased in parenthesis): The lure of Plug Power as an investment is the high-ceiling potential of renewable energy as it pertains to transportation and infrastructure. Management believes the company can generate $20 billion in sales by 2030, which would be one phenomenal growth rate considering the company reported $891 million in full-year sales in 2023. Plug Power is in the midst of expanding its green hydrogen network. Among other things, this involves improving the efficiency of its supply chain, increasing prices across its product and service portfolio, and meaningfully improving its margins. But in spite of its rapid growth prospects, Plug Power's future is highly uncertain. It's been a cash-burning machine since its inception and has regularly turned to share offerings in order to keep the lights on. Last week, Plug announced a $200 million share offering that was priced well below where its stock had closed the previous day. With operating losses expected to continue for years to come, more share offerings seem likely. Plug Power also has to overcome a shift in sentiment toward clean-energy vehicles. Infrastructure limitations are one reason electric vehicle (EV) demand has weakened in recent quarters. With EV demand acting as something of a proxy for hydrogen fuel-cell vehicle demand, Plug may find that the market for its products is lukewarm, at best. Sea Limited The other hypergrowth stock that had Nvidia's billionaire sellers mashing the buy button is Singapore-based Sea Limited (NYSE: SE). Even though Sea has little to do with artificial intelligence, five of Nvidia's billionaire sellers were decisive buyers in the March-ended quarter, including (total shares purchased in parenthesis): What makes Sea such an appealing investment is the company's trio of fast-growing operating segments. The division consistently responsible for generating positive earnings before interest, taxes, depreciation, and amortization (EBITDA) is Sea's digital entertainment segment, known as "Garena." The biggest catalyst for Garena is Free Fire, which is one of the world's most-popular mobile games. During the first quarter, Garena had nearly 595 million quarterly active users, 8.2% of which were paying to play its games. This pay-to-play ratio is considerably higher than the industry average for mobile gaming. Sea's second rapidly growing segment is SeaMoney, its digital financial services operations. Many of the countries Sea operates in are chronically underbanked, with businesses and consumers lacking access to basic financial services. SeaMoney offers solutions (loans) to this common problem in Southeast Asia. But the most-promising of all operating segments is e-commerce platform Shopee, which operates in Southeastern Asia and Brazil. The $23.6 billion in gross merchandise value (GMV) traversing its platform during the first quarter equates to $94.4 billion on an annualized run-rate basis. For some context on just how quickly Shopee is growing, GMV in the entirety of 2018 was $10 billion. If these three operating segments continue to fire on all cylinders, Sea Limited can sustain annual sales growth of 15% (or greater), and deliver triple-digit annualized earnings growth through 2028, based on Wall Street's consensus forecast. The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Nvidia 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 $722,626!* 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. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Sean Williams has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Cisco Systems, Nvidia, and Sea Limited. 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.

Forget Nvidia: Prominent Billionaires Are Selling It and Piling Into 2 Hypergrowth Stocks That Have Little to Do With Artificial Intelligence (AI) | The Motley Fool

Eight of Wall Street's top billionaire money managers dumped shares of Nvidia in the March-ended quarter in favor of two high-octane growth stocks outside of the artificial intelligence (AI) arena. Three decades ago, the advent of the internet changed the growth trajectory of corporate America forever. Since then, investors have been waiting for the next game-changing innovation, technology, or trend to rival what the internet did for businesses. After decades of patience, it appears as if artificial intelligence (AI) has been anointed as the next leap forward in innovation. The rise of AI is all about the use of software and systems for tasks that would typically be undertaken by humans. What gives AI such broad-reaching potential is the capacity for software and systems to learn and evolve without human intervention. Becoming more proficient at assigned tasks, as well as learning new skills, gives this technology a limitless long-term ceiling. Yet in spite of the otherworldly growth forecasts attached to AI -- the analysts at PwC expect AI to add $15.7 trillion to the global economy by 2030 -- not everyone on Wall Street is convinced of its upside. Based on Form 13F filings that detail the trading activity of Wall Street's smartest asset managers, prominent billionaire investors were big-time sellers of Nvidia (NVDA 4.76%) stock during the March-ended quarter. Although artificial intelligence euphoria has largely been credited with pushing Wall Street's major stock indexes to fresh all-time highs, eight successful billionaire money managers chose to send shares of Nvidia to the chopping block during the March-ended quarter (total shares sold in parenthesis and adjusted for Nvidia's 10-for-1 stock split in June): While simple profit-taking following Nvidia's stellar run-up might explain some of this selling activity, history and valuation are the likelier catalysts. As I pointed out earlier, it's been about 30 years since the internet began changing the growth trajectory for businesses and the U.S. economy. Since then, numerous next-big-thing innovations and trends have come and gone. While some of these technologies and trends have gone on to be wildly successful over the long run, they all endured an early stage bubble. All new technologies and trends need time to mature, and artificial intelligence isn't any different. If the AI bubble were to burst, as history suggests it will, no company would take it on the chin more than Nvidia. Nvidia is also set to face growing competition for GPU real estate in high-compute data centers. What optimists seem to be overlooking is that even if Nvidia maintains its compute advantage, its inability to meet overwhelming demand is going to allow competitors to grab market share. Moreover, its four top customers (all members of the "Magnificent Seven") are developing AI-GPUs for their data centers. Even though these internally developed chips lack the compute advantage of Nvidia's H100 GPU, they're cheaper and are going to take up valuable data center real estate. The final nail in the coffin is that Nvidia's trailing-12-month (TTM) price-to-sales (P/S) ratio is on par with the peak TTM P/S ratios seen from market leaders like Cisco Systems and Amazon prior to the bursting of the dot-com bubble. What's truly interesting is that while these prominent billionaire money managers were dumping shares of Nvidia, they were busy piling into two hypergrowth stocks that have little or nothing to do with AI. The first supercharged growth stock that caught the attention of the billionaire asset managers who've been selling shares of Nvidia is hydrogen fuel-cell solutions company Plug Power (PLUG -0.60%). Nvidia's three biggest billionaire sellers were all buyers of Plug Power stock during the first quarter (total shares purchased in parenthesis): The lure of Plug Power as an investment is the high-ceiling potential of renewable energy as it pertains to transportation and infrastructure. Management believes the company can generate $20 billion in sales by 2030, which would be one phenomenal growth rate considering the company reported $891 million in full-year sales in 2023. Plug Power is in the midst of expanding its green hydrogen network. Among other things, this involves improving the efficiency of its supply chain, increasing prices across its product and service portfolio, and meaningfully improving its margins. But in spite of its rapid growth prospects, Plug Power's future is highly uncertain. It's been a cash-burning machine since its inception and has regularly turned to share offerings in order to keep the lights on. Last week, Plug announced a $200 million share offering that was priced well below where its stock had closed the previous day. With operating losses expected to continue for years to come, more share offerings seem likely. Plug Power also has to overcome a shift in sentiment toward clean-energy vehicles. Infrastructure limitations are one reason electric vehicle (EV) demand has weakened in recent quarters. With EV demand acting as something of a proxy for hydrogen fuel-cell vehicle demand, Plug may find that the market for its products is lukewarm, at best. The other hypergrowth stock that had Nvidia's billionaire sellers mashing the buy button is Singapore-based Sea Limited (SE -1.29%). Even though Sea has little to do with artificial intelligence, five of Nvidia's billionaire sellers were decisive buyers in the March-ended quarter, including (total shares purchased in parenthesis): What makes Sea such an appealing investment is the company's trio of fast-growing operating segments. The division consistently responsible for generating positive earnings before interest, taxes, depreciation, and amortization (EBITDA) is Sea's digital entertainment segment, known as "Garena." The biggest catalyst for Garena is Free Fire, which is one of the world's most-popular mobile games. During the first quarter, Garena had nearly 595 million quarterly active users, 8.2% of which were paying to play its games. This pay-to-play ratio is considerably higher than the industry average for mobile gaming. Sea's second rapidly growing segment is SeaMoney, its digital financial services operations. Many of the countries Sea operates in are chronically underbanked, with businesses and consumers lacking access to basic financial services. SeaMoney offers solutions (loans) to this common problem in Southeast Asia. But the most-promising of all operating segments is e-commerce platform Shopee, which operates in Southeastern Asia and Brazil. The $23.6 billion in gross merchandise value (GMV) traversing its platform during the first quarter equates to $94.4 billion on an annualized run-rate basis. For some context on just how quickly Shopee is growing, GMV in the entirety of 2018 was $10 billion. If these three operating segments continue to fire on all cylinders, Sea Limited can sustain annual sales growth of 15% (or greater), and deliver triple-digit annualized earnings growth through 2028, based on Wall Street's consensus forecast.

5 'Pick and Shovel' AI Growth Stocks to Scoop Up Now

Artificial intelligence (AI) is driving a seismic shift across industries worldwide. While Nvidia's (NVDA) advancements in AI capture headlines, the next wave of opportunity might lie with the unsung heroes behind the scenes. As the world shifts from research to real-world applications, the demand for scalable AI infrastructure is surging. The explosive growth of AI is driving an increased need for hyperscale data centers, with the market size expected to soar from $45 billion in 2024 to $262 billion by 2032 at a compound annual growth rate of 24.7%. These data centers, along with other key infrastructure providers, are becoming the modern-day "picks and shovels" of the AI gold rush. As AI capabilities evolve, these infrastructure companies are uniquely positioned to capitalize on the rapid expansion of this sector. Let's dive into five standout stocks in this exciting space to scoop up now. Stock #1: Hewlett Packard Enterprise Founded in 1939, Texas-based information technology (IT) company Hewlett Packard Enterprise Company (HPE) provides solutions that allow customers to capture, analyze, and act upon data seamlessly worldwide. It offers general-purpose servers, storage products, networking solutions, and professional services, catering to commercial and large enterprise clients. Its market cap currently stands at $26.6 billion. Fueled by excitement around its role in AI servers, HPE stock has been on a remarkable run this year. Over the past 52 weeks, shares of Hewlett Packard Enterprise have soared 19.3%, with an impressive 32.8% surge in just the last six months. Hewlett Packard Enterprise is riding the AI wave thanks to its cutting-edge data center solutions. With its AI Ops optimizing power and cooling and its cloud portfolio empowering scalable AI model training, HPE looks poised to benefit from the soaring demand for robust AI infrastructure. HPE has a consensus "Hold" rating overall. Of the 14 analysts in coverage, two recommend a "Strong Buy," one suggests a "Moderate Buy," and the remaining 11 analysts are playing it safe with a "Hold" rating. While the stock currently trades roughly flat with the average analyst price target of $20.25, the Street-high target price of $24 implies a 16.6% upside potential. Stock #2: Equinix Real estate investment trust (REIT) Equinix, Inc. (EQIX) provides colocation space, interconnection services, and cloud computing solutions. With over 260 interconnected data centers spanning 33 countries, it connects networks and cloud providers, offering top-tier colocation and cloud solutions. With a market cap of $74.6 billion, Equinix is a go-to hub for digital connectivity worldwide. The REIT stock has underperformed over the past year, dipping 1% over the past 52 weeks. EQIX yields over 2% annually. Equinix is making waves in the AI scene by weaving a global network of data centers into a powerhouse for AI development. In 2024, it's supercharging its AI-focused infrastructure, teaming up with Nvidia, and crafting bespoke solutions for enterprises to build their own AI innovations. As demand for cutting-edge AI soars, Equinix is set to become a critical hub for data-hungry algorithms. EQIX stock has a consensus "Strong Buy" rating overall. Out of the 26 analysts offering recommendations for the stock, 19 suggest a "Strong Buy," one advises a "Moderate Buy," and the remaining six analysts recommend a "Hold" rating. The mean price target is $899.91, representing an upside potential of 12.6% from current levels. Stock #3: Digital Realty Trust San Francisco-based Digital Realty Trust, Inc. (DLR) is a powerhouse in the data center REIT world. With a market cap of $48.47 billion, it is a key player in owning, developing, and managing data centers globally, offering vital IT infrastructure and services to businesses in need of robust digital solutions. Shares of Digital Realty have rallied 29.5% over the past 52 weeks and 14.5% over the past three months. The REIT yields over 3% annually. Digital Realty is flexing its AI muscles to supercharge data centers with its in-house AI platform, Apollo, which optimizes energy use, detects anomalies, and tweaks performance for peak efficiency. As demand for scalable AI infrastructure surges, Digital Realty is well-positioned to lead in providing robust, adaptable data center solutions crucial for the next generation of AI advancements. Owning and operating over 300 data centers across six continents, the company is set to be a key player in supporting the expanding AI ecosystem. Digital Realty stock has a consensus "Moderate Buy" rating overall. Out of the 23 analysts covering the stock, 14 suggest a "Strong Buy," one advises a "Moderate Buy" rating, seven recommends a "Hold," and the remaining one gives a "Strong Sell." While DLR currently trades at a premium to its mean price target of $154.54, the Street-high price of $185 indicates a potential upside of 18.9% from the current price levels. Stock #4: American Tower American Tower Corporation (AMT), with a market cap of $98.1 billion, is a heavyweight in global REITs. As a premier owner, operator, and developer of multitenant communications real estate, AMT boasts a portfolio of over 224,000 sites and a highly interconnected network of U.S. data center facilities. AMT stock has rallied 13.2% over the past 52 weeks, and over the past three months alone, it surged an impressive 21.5%. The REIT offers a 3.1% yield at current levels. American Tower isn't just about cell towers; it's a hub for all things digital. It provides fiber optics, the high-speed backbone that AI thrives on, supporting data centers with its nationwide network of lightning-fast connections. Data centers lean on American Tower to keep their nationwide network of ultra-fast connections running smoothly. American Tower's CoreSite division is primed for the AI boom. With top-tier data centers across North America, CoreSite caters to enterprises and cloud giants needing high-speed, scalable solutions. On Wall Street, AMT stock has a consensus "Strong Buy" rating. Out of 20 analysts in coverage, 15 recommend a "Strong Buy," one gives a "Moderate Buy," and four advise a "Hold" rating. The mean price target is $226.89, suggesting a potential upside of 8.4% from current levels. Stock #5: Nippon Telegraph and Telephone With a market cap of $86 billion, Tokyo-headquartered Nippon Telegraph and Telephone Corporation (NTTYY), since its launch in 1952, has been a pioneer in telecom, transforming global communications. Operating through various segments like Integrated ICT, Regional Communications, and Global Solutions, NTT excels in mobile, international, and intra-prefectural communications while also delving into real estate, energy, and innovative tech solutions. Shares of Nippon Telegraph and Telephone have dipped 16.3% on a YTD basis, but rallied 10.8% over the past month. The telecom giant is integrating AI across its operations, optimizing networks and enhancing customer service. By developing AI chips and exploring quantum computing, NTT aims to dominate the digital landscape. Its AI, like Tsuzumi, excels in language processing and visual comprehension, boosting productivity by transforming complex documents into easily extractable information. Plus, a unit of NTT operates over 160 data centers in 20 countries, delivering cutting-edge digital infrastructure and advanced data-center solutions and services to support businesses globally with advanced digital infrastructure. Analysts have a consensus rating of "Moderate Buy" on NTTYY stock, with a mean target price of $36.10, which indicates an upside potential of about 41.5% from current levels. Out of two analysts covering the stock, one advises a "Strong Buy" rating, while the other one recommends a "Hold." On the date of publication, Sristi Suman Jayaswal 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. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is Nvidia Stock a High-Risk Play Ahead of the U.S. Election?

As we approach the 2024 U.S. election, Nvidia (NVDA) stock has been on an increasingly volatile ride, leaving investors to wonder each day whether they're in for an exciting adventure or a nerve-wracking drop. Last week, Nvidia was among the high-profile semiconductor stocks to turn lower, with the artificial intelligence (AI) chip leader responding to headlines from both President Biden and GOP nominee Donald Trump that ramped up the hawkish talk around advanced semiconductor tech and China trade. That followed closely on the heels of a rocky end to June for NVDA, with many investors taking profits after the stock's 10-for-1 split. While Vice President Harris seems the likeliest nominee following Biden's weekend withdrawal from the presidential race, the DNC convention is about a month away. That said, the VP isn't necessarily expected to deviate from the current administration's stance on semiconductors, including advanced tech trade with China and semiconductor manufacturing at domestic companies, like Intel (INTC). Despite the recent volatility, Nvidia's financial performance has been stellar. The company reported record revenue, with its data center segment showing an incredible 427% surge. This growth is driven by the relentless demand for AI technologies, putting Nvidia at the forefront of the AI revolution. And reports today suggest that the AI chip giant is working to design a compliant AI chip for the Chinese market, with shipments expected as soon as Q2 of 2025. So, is Nvidia stock a high-risk play ahead of the U.S. election, or do the recent dips present a golden buying opportunity for savvy investors? Let's examine the numbers, growth engines, and analysts' latest insights. Nvidia's Financial Performance Nvidia (NVDA), the tech giant behind top-tier GPUs and AI technologies, is known for its dominance in gaming and data centers. Nvidia's business model revolves around selling specialized chips that power everything from gaming consoles to autonomous vehicles. Nvidia's stock performance has been nothing short of spectacular. The stock is up 178% over the last 52 weeks, and NVDA has surged 149% in 2024 alone. However, the shares have retreated about 16% from their June 1 all-time highs, presenting a potential buying opportunity. For Q1 of fiscal year 2025, Nvidia posted record-breaking revenue of $26.0 billion, up 262% year-over-year, primarily driven by their data center segment, which recorded a staggering 427% increase. GAAP earnings per diluted share hit $0.59, up 21% from the previous quarter and 629% from a year ago. Non-GAAP earnings per diluted share were $0.61, up 19% from the previous quarter and up 461% from a year ago. This growth was fueled by the high demand for AI chips, which have become essential for tech giants like Alphabet (GOOGL), Microsoft (MSFT), and Meta (META). Of course, with a market cap of $2.9 trillion, Nvidia is something of a tech giant itself. And Nvidia's valuation metrics reflect both its stellar performance and the optimistic consensus expectations for the company. With a forward P/E ratio of 43.10, NVDA is valued at an (arguably deserved) premium to the tech sector median. That said, the P/E to growth (PEG) ratio of 1.29 looks quite reasonable, and suggests NVDA might still be reasonably valued, given its expected growth trajectory. Analysts are split on Nvidia's valuation. Some argue the stock is overvalued due to its high P/E ratio and the challenge of maintaining such rapid growth over time. However, Nvidia's ongoing innovation and strategic investments in AI and data center technologies, bolstered by its asset-light business model, suggest the company is well-positioned for long-term upside. Nvidia also offers a modest dividend yield of 0.02%, and the company may have room to reward shareholders with buybacks or special dividends if its financial performance continues to outpace expectations. Beyond the Chips: Nvidia's Growth Engines and Headwinds Nvidia has made big moves in AI and cloud computing, with some analysts arguing that it's undervalued for its software prowess. One standout development is its partnership with Hewlett Packard Enterprise (HPE) to launch the NVIDIA AI Computing by HPE portfolio. This collaboration aims to speed up the adoption of generative AI in businesses by combining Nvidia's AI computing power with HPE's cloud infrastructure. The highlight, HPE Private Cloud AI, offers a fast, energy-efficient, and flexible solution for developing AI applications, potentially boosting Nvidia's market reach and revenue. In June, Nvidia also introduced the Omniverse Cloud Sensor RTX, a set of microservices designed to simulate sensors accurately. This AI-powered innovation is crucial for developing autonomous machines, enabling safer and more cost-effective testing environments. This kind of AI tech positions Nvidia at the forefront of the growing autonomous technology sector. Furthermore, Nvidia's AI Enterprise-IGX platform, combined with Holoscan, aims to streamline AI deployment in medical, industrial, and scientific fields. This enterprise-grade solution enhances real-time AI computing at the edge, offering robust performance and security, which could attract a broad range of industrial clients. While these advancements highlight Nvidia's growth engines, the company does face challenges - most notably from geopolitical tensions and potential U.S. tech export restrictions to China, given its key relationship with Taiwan Semiconductor (TSM). Stricter policies could potentially limit Nvidia's market expansion and impact its stock performance, making it a somewhat higher-risk play ahead of the U.S. election, as trade with China will no doubt remain a key talking point. However, the company's efforts to adapt to tighter trade conditions, coupled with longer-term growth initiatives, should provide a longer-term floor - which means that Nvidia still looks like a strong buy on pullbacks. What Do Analysts Say About Nvidia Stock? Wall Street analysts are bullish on NVDA, with Loop Capital raising its price target to $175 today, and Piper Sandler hiking its own target to $140. The average analyst price target for NVDA was $139.41 heading into Monday's trading, about 13% higher than current levels. Out of 39 analysts covering Nvidia, 33 rate it as a "strong buy," two as a "moderate buy," and four suggest a "hold." Finally, it's worth pointing out that record levels of insider selling on NVDA stock - including by CEO Jensen Huang - isn't necessarily cause for concern, or some indication that he's lost confidence in his own company. Executives at growth-fueled tech companies are often compensated in stock, and their stock sales are generally scheduled ahead of time, and are often set to be triggered based on price and/or volume - specifically to avoid the implication of nefarious intentions on the part of company insiders. Rolling the Dice or Calculated Risk? When you look at the big picture, Nvidia's stock feels more like a smart bet than a risky dice roll. Sure, there may be some bumps in the road caused by broader market swings and geopolitical issues, but the company's strong growth, remarkable AI innovations, and generally reasonable valuation make it a solid buy when the price dips. With a bright future ahead and plenty of room to grow, Nvidia seems ready to handle whatever the U.S. election throws its way and keep climbing. On the date of publication, Ebube Jones 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. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Set to Open Higher After Biden's Withdrawal, Earnings and Key U.S. Inflation Data in Focus

September S&P 500 E-Mini futures (ESU24) are up +0.47%, and September Nasdaq 100 E-Mini futures (NQU24) are up +0.59% this morning as investors looked past Joe Biden's exit from his presidential reelection campaign and awaited a slew of corporate earnings reports, with a particular focus on results from "Magnificent Seven" companies Tesla and Alphabet, as well as the release of the Fed's preferred inflation gauge later in the week. U.S. President Joe Biden ended his reelection campaign on Sunday and endorsed Vice President Kamala Harris as the Democratic nominee. In a post on X, Biden said that he will stay in his role as President and Commander in Chief until his term ends in January 2025 and will address the nation later this week. "It has been the greatest honor of my life to serve as your President. And while it has been my intention to seek reelection, I believe it is in the best interest of my party and the country for me to stand down and to focus solely on fulfilling my duties as President for the remainder of my term," Biden wrote. The move was widely anticipated following Biden's poor debate performance in June and amid polls indicating a growing likelihood of an election win by former President Donald Trump in November. In Friday's trading session, Wall Street's major averages closed in the red, with the benchmark S&P 500 dropping to a 2-1/2 week low and the tech-heavy Nasdaq 100 falling to a 3-1/2 week low. CrowdStrike Holdings (CRWD) plunged over -11% and was the top percentage loser on the S&P 500 and Nasdaq 100 after a botched upgrade of its cybersecurity software brought down Microsoft's systems and triggered a global IT outage. Also, chip stocks lost ground, with Intel (INTC) sliding more than -5%, ON Semiconductor (ON) dropping over -3%, and Nvidia (NVDA) falling more than -2%. In addition, Travelers Cos. (TRV) slumped over -7% and was the top percentage loser on the Dow after reporting weaker-than-expected Q2 revenue. On the bullish side, Intuitive Surgical (ISRG) surged more than +9% and was the top percentage gainer on the S&P 500 and Nasdaq 100 after the company reported better-than-expected Q2 results. Also, Starbucks (SBUX) climbed over +6% following a report from the Wall Street Journal that activist investor Elliott Management has built a "sizeable" stake in the coffee chain. Second-quarter earnings season kicks into high gear this week, with investors awaiting fresh reports from major companies such as Tesla (TSLA), Alphabet (GOOGL), IBM (IBM), AT&T (T), Verizon (VZ), Comcast (CMCSA), ServiceNow (NOW), Texas Instruments (TXN), NXP Semiconductors N.V. (NXPI), Spotify Technology S.A. (SPOT), General Motors (GM), Ford (F), AbbVie (ABBV), Bristol-Myers Squibb Company (BMY), Visa (V), 3M Company (MMM), Coca-Cola (KO), Lockheed Martin (LMT), American Airlines Group (AAL), and United Parcel Service (UPS). On the economic data front, the June reading of the U.S. core personal consumption expenditures price index, the Fed's preferred inflation gauge, will be the main highlight in the coming week. Also, market participants will be monitoring a spate of other economic data releases, including the U.S. GDP (preliminary), S&P Global Composite PMI (preliminary), S&P Global Manufacturing PMI (preliminary), S&P Global Services PMI (preliminary), Existing Home Sales, Richmond Manufacturing Index, Building Permits, Goods Trade Balance, New Home Sales, Crude Oil Inventories, Durable Goods Orders, Core Durable Goods Orders, Initial Jobless Claims, Personal Income, Personal Spending, and Michigan Consumer Sentiment. Federal Reserve officials are in a blackout period before the Federal Open Market Committee meeting at the end of July, so they are prohibited from making public comments this week. Meanwhile, U.S. rate futures have priced in a 4.7% chance of a 25 basis point rate cut at July's monetary policy meeting and a 91.7% probability of a 25 basis point rate cut at the conclusion of the Fed's September meeting. The U.S. economic data slate is mainly empty on Monday. In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.236%, down -0.07% The Euro Stoxx 50 futures are up +1.34% this morning, recovering from significant losses in the previous session, while investors assessed the impact of President Joe Biden's withdrawal from the U.S. presidential election race. Construction and materials stocks outperformed on Monday. Meanwhile, investors are bracing for a busy week of earnings reports from major European lenders such as Deutsche Bank, Lloyds Banking Group, BNP Paribas, Banco Santander, and UniCredit. In corporate news, Ryanair Holdings Plc (RYA.I.DX) plunged over -12% after the budget airline reported a 46% year-over-year decline in its first-quarter profit after tax and stated that fares would be lower than anticipated during the summer months. At the same time, Belimo Holding Ag (BEAN.Z.IX) surged more than +11% after the Swiss heating and ventilation solutions maker lifted its sales guidance. European Central Bank policymaker Peter Kazimir suggested on Monday that there could be two additional interest rate cuts by the end of the year if data justified them. "The doors remain open to additional easing should the environment warrant and justify such action," Kazimir said in a blog post. "Financial markets are betting on two more rate cuts before the year ends. While this isn't entirely misplaced, it should not be taken as a given or a baseline scenario." The European economic data slate is largely empty on Monday. Asian stock markets today settled in the red. China's Shanghai Composite Index (SHCOMP) closed down -0.61% and Japan's Nikkei 225 Stock Index (NIK) closed down -1.16%. China's Shanghai Composite Index closed lower today as President Xi Jinping's policy blueprint disappointed investors despite the People's Bank of China's unexpected rate cut. Energy stocks led the declines on Monday. China issued a policy document over the weekend outlining familiar goals, such as developing advanced industries and improving the business environment, without signaling any major policy shift. Meanwhile, Chinese bond yields fell on Monday after the central bank unexpectedly lowered a key policy rate to bolster the nation's struggling economy. The People's Bank of China cut the 7-day reverse repo rate to 1.70% from 1.80%, stating that it aimed to "step up financial support for the real economy." Minutes later, China reduced benchmark lending rates by the same margin at the monthly fixing. The one-year loan prime rate was cut to 3.35% from 3.45%, while the five-year LPR was trimmed to 3.85% from 3.95%. In other news, China's Ministry of Commerce announced on Monday that it will carry out a final review of anti-dumping measures on imports of stainless steel billets and hot-rolled stainless steel plates from the European Union, Britain, South Korea, and Indonesia. In corporate news, Pharmaron surged over +6% in Hong Kong after the clinical services group said it anticipates H1 net profit to increase between 34% and 45% year-over-year. Japan's Nikkei 225 Stock Index closed lower today amid ongoing uncertainty about the Bank of Japan's policy outlook. Electronics and heavy industry stocks underperformed on Monday. Meanwhile, Japan's 10-year government bond yield climbed on Monday, recovering losses from last week amid rising expectations that the Bank of Japan would hike interest rates again at its July policy meeting. The BOJ has been under constant pressure to raise rates as a significant gap between domestic and foreign yields pushed the yen to a 38-year low. Prime Minister Fumio Kishida also stated that normalizing the central bank's monetary policy would aid Japan's shift to a growth-driven economy. In corporate news, Shinwa Co. Ltd. dropped more than -2% after reporting a 36.2% decline in its profit to 1.81 billion yen for the nine months ending May 31. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed up +5.48% to 20.60. Pre-Market U.S. Stock Movers Nvidia (NVDA) gained more than +1% in pre-market trading after Reuters reported that the company is developing a version of its new flagship AI chips for the China market that would comply with existing U.S. export controls. CrowdStrike Holdings (CRWD) slid over -3% in pre-market trading after Guggenheim downgraded the stock to Neutral from Buy. Fiserv (FI) rose more than +1% in pre-market trading after Morgan Stanley upgraded the stock to Overweight from Equal Weight with a price target of $175. Lennar (LEN) fell over -1% in pre-market trading after Goldman Sachs downgraded the stock to Neutral from Buy. C.H. Robinson (CHRW) advanced more than +2% in pre-market trading after BofA upgraded the stock to Buy from Underperform with a $99 price target. American Airlines (AAL) dropped over -1% in pre-market trading after Bernstein downgraded the stock to Market Perform from Outperform. Verizon (VZ), Cadence Design (CDNS), NXP Semiconductors (NXPI), Truist Financial Corp (TFC), IQVIA Holdings (IQV), Nucor (NUE), Brown&Brown (BRO), Alexandria RE (ARE), WR Berkley (WRB), Medpace Holdings (MEDP), Equity Lifestyle (ELS), Crown (CCK), Simpson Manufacturing (SSD), AGNC Invest (AGNC), Zions (ZION), Cleveland-Cliffs (CLF), BOK Financial (BOKF), RLI (RLI), Cadence Bancorp (CADE), Cathay (CATY), Agilysys (AGYS), Bank of Hawaii (BOH), Calix (CALX), NBT Bancorp (NBTB), Bank of N.T. Butterfield Son (NTB), Metals Acquisition (MTAL), Metals Acquisition (MTAL), Dynex Capital (DX), Hbt Fin (HBT), KKR Real Estate (KREF), TrustCo Bank NY (TRST), Washington Trust (WASH), SmartFinancial Inc (SMBK), RBB Bancorp (RBB). More Stock Market News from Barchart On the date of publication, Oleksandr Pylypenko 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. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Here are Monday's biggest analyst calls: Apple, Nvidia, Amazon, Burlington, CrowdStrike, Berkshire Hathaway, Coinbase & more

Here are Monday's biggest calls on Wall Street: Wells Fargo reiterates Apple as overweight Wells raised its price target on the stock to $275 per share from $225 ahead of earnings on Aug. 1. "Heading into Apple's F3Q24 print we see potential for moderate upside to iPhone ests; our / investor focus firmly centered on Apple Intelligence's ability to drive significant refresh on an aging install base w/ room for ASP upside in F4Q24 / F1Q25." Piper Sandler reiterates Nvidia as overweight Piper raised its price target on the stock to $140 per share from $120. "We view the setup for NVDA positively ahead of the July quarter earnings and the October quarter guidance." Goldman Sachs initiates Talos Energy as buy Goldman said the energy company has a "strong oil mix and free cash flow." "We initiate on Talos Energy (TALO) with a Buy rating and a 12-month target price of $14." Guggenheim downgrades CrowdStrike to neutral from buy Guggenheim downgraded the stock following Friday's global IT outage. "We are downgrading CRWD to Neutral from Buy due to likely resistance to new deals in the near-term as a result of anticipated fallout from the apparent quality assurance issue that caused a massive disruption of IT systems across the globe, in addition to what we always saw as risk in F4Q consensus estimates, especially ARR [annual recurring revenue]." Goldman Sachs downgrades Lennar to neutral from buy Goldman downgraded the homebuilder stock mainly on valuation. "Moving to the Sidelines Following Recent Outperformance: As we consider the operating environment over the coming quarters, we see less upside in LEN vs others in our coverage." Goldman Sachs initiates Webtoon as buy Goldman said it's bullish on shares of the digital storytelling company. "We are initiating coverage of Webtoon Entertainment, Inc. (WBTN) with a Buy rating and a $62 12-month PT." TD Cowen initiates Berkshire Hathaway as hold TD Cowen said it likes the stock but valuation is full right now. " Berkshire Hathaway' s old-school conglomerate structure has faced challenges in a number of key areas of late despite being powered by an insurance business that continues to shine." Raymond James downgrades Estee Lauder to market perform from strong buy Raymond James said it's concerned about a China recovery. "We downgrade EL to Market Perform as a slower recovery in China and travel retail and heavy competition in the U.S. dampen our prior expectations for a more significant rebound in FY25." JPMorgan upgrades Abercrombie & Fitch to overweight from neutral JPMorgan said it sees rising demand for the clothing retailer. "With shares down ~20% since 1Q EPS we upgrade ANF to Overweight with our fieldwork & mgmt access pointing to continued broad-based demand at the Abercrombie brand..." JMP initiates nCino as market outperform JMP said the fin tech company is best-in-class. "We like nCino for several reasons, including: we believe, and our customer checks support, that nCino offers a best-of-breed lending platform that scales from small consumer loans to large commercial loans.." Citi initiates Tamboran Resources as buy Citi said it's bullish on the nat gas company. "We initiate coverage of Tamboran Resources (TBN) with a Buy/High Risk rating and a target price of $32/share." Citi adds a positive catalyst watch on Nvidia Citi said it's further upside for Nvidia ahead an annual conference where the company is appearing. "Third, we expect to hear accelerating AI demand trend at the conference with no signs of an air pocket and view the recent pullback in the stock (13% P/E discount to 3-year average) on geopolitical concerns as a buying opportunity." Jefferies reiterates Amazon as buy Jefferies said the setup looks favorable heading into Amazon earnings on Aug. 1. "But the focus remains on high-margin AWS (accelerating) and Advertising (early in ramping Prime Video), which give tailwinds to rev and margins. Maintain Buy $235 PT." Benchmark initiates Enovix as buy Benchmark said it's bullish on shares of the battery manufacturer. "We believe Enovix is positioned in the $12B smartphone lithium-ion battery market with superior battery technology providing increased energy density." Baird upgrades Henry Schein to outperform from neutral Baird said in its upgrade of Henry Schein that the dental company has potential upside. "With dental stocks underperforming the S & P 500 by 20+ points year-to-date, a lot of bad is clearly priced into the group." Bernstein downgrades American Airlines to market perform from outperform Bernstein said a commercial recovery will take time for American . "While a catch up event could still be in the cards, there's enough working against AAL at present to give us pause in under-writing a longer term investment case." Stifel upgrades International Flavors to buy from hold Stifel said the stock is at a volume inflection point. "From a stock standpoint, we upgrade IFF shares to Buy anticipating the 1Q24 volume inflection continues, with the company likely lifting 2024 guidance." Wells Fargo names Burlington a top pick Wells raised its price target on the stock to $300 from $275 and says it's a new top pick at the firm. "Naming BURL our 'Top Pick' in the space and raise PT to $300." Morgan Stanley upgrades Fiserv to overweight from equal weight Morgan Stanley said in its upgrade of Fiserv that the financial services company is an "attractive earnings compounder." "We're upgrading Fiserv to OW, as we view the stock as an attractive earnings compounder with opp to keep delivering modest upside to results and benefitting from consistent management execution and strong long-term investor support." Jefferies upgrades 10X Genomics to buy from hold Jefferies said it's getting bullish on shares of the biotech company. "We upgrade TXG to Buy on conviction in single cell recovery given 1) continued utility in areas such as oncology research, 2) superior technology vs. competitors..." Citi opens a negative catalyst watch on Micron Citi said it's sticking with its long term buy but is concerned about Nvidia competition. "We are initiating a negative catalyst watch on MU as we expect the stock to trade poorly over the next month as we expect Samsung to qualify HBM [high bandwidth memory] with NVDA in 3Q24 and raise capex." Bank of America upgrades C.H. Robinson to buy from underperform The firm said it sees margin upside for the trucking company. "We upgrade CHRW to Buy from Underperform and raise our PO to $99 from $76, on 22.5x our 2025e EPS." Oppenheimer reiterates Coinbase as outperform Oppenheimer said it sees an "attractive entry point" for Coinbase shares. " Coinbase's Long-Term Thesis Is Underappreciated."