Technology

Nvidia (NVDA) is likely to post strong fiscal fourth-quarter results, despite certain concerns that have lingered since its last quarterly report, UBS Securities said in a note e-mailed Tuesday. The chip-making giant is scheduled to report fourth-quarter results Feb. 26. In November, its third-quarter earnings more than doubled year over year as demand for generative artificial intelligence propelled revenue above Wall Street’s estimates. “(Nvidia) has essentially tread water since last earnings, in part due to supply chain noise and concerns around the ramp of Blackwell server racks,” UBS analysts Timothy Arcuri and Grant Joslin said. UBS projects Nvidia’s fourth-quarter adjusted earnings at $0.95 a share on revenue of $42.15 billion. The Street is looking for $0.84 and $37.97 billion, respectively, according to UBS. The brokerage sees revenue from the Blackwell gen AI system at about $9 billion, up from its prior outlook of $5 billion, with the potential to reach

Nvidia stock has had a slow start to 2025 after back-to-back years of triple-digit gains — and that could soon become the new normal. Shares have climbed 2.6% to $137.71 so far this year — meaning the chip maker is only just outperforming the S&P 500, which is up 2%. Last year, Nvidia soared 171%, while the benchmark index rose 23%. That doesn’t mean investors should worry. Nvidia still dominates the market for the graphics processing units required to power artificial-intelligence programs — so its profit should keep rising as long as tech companies keep dipping into their pockets to splash the cash on AI. But there’s a sense on Wall Street that another year of eye-popping returns looks unlikely. The 66 analysts who cover Nvidia have set an average price target of about $176, according to FactSet data, which implies shares can climb 28% from their level as of

Looking to invest in artificial intelligence stocks this year and worried you’ve missed the boat? Don’t worry, a pivot away from obvious winners like Tesla and Nvidia is the solution. That’s according to Morningstar’s chief U.S. market strategist David Sekera, who believes investors will have to take a more selective approach to the theme in 2025. His view is based on the idea that Big Tech companies’ capital expenditure levels can’t carry on rising at such a fast pace, more than two years after the launch of OpenAI’s ChatGPT kicked off an AI spending war. “We’re not going to see that explosive increase in demand of the past two years again,” Sekera told Barron’s. “It will still increase, but we won’t see anywhere near the same upside surprises in spending on AI hardware as this megatrend is better understood.” That means Morningstar is more bearish than most on Nvidia, which

Nvidia stock was rising alongside rival chip makers on the first trading day of Trump’s second presidency. In his first hours back in the Oval Office, the president revoked an order on artificial intelligence signed by his predecessor Joe Biden, in a potential sign of what’s to come for chip makers under Trump. Nvidia shares rose 0.4% to $138.32 in premarket trading while futures tracking the benchmark S&P 500 were up 0.3%. U.S. markets were closed on Monday for the Martin Luther King Jr. holiday. Trump rescinded almost 80 executive orders signed by Biden on Monday, including one from October 2023 aimed at limiting AI risks, Barron’s reported. The order required AI developers that pose a risk to national security to share any results of safety tests with the government before they are disclosed to the public. It isn’t clear what, if any, practical impact the new administration’s backtrack on

Nvidia is trading toward the low end of its recent range, with Wall Street questioning whether the chip maker is facing manufacturing issues with its newest server racks. Nvidia shares were down 0.3% at $131.31 in premarket trading. The stock fell 1.1% on Tuesday and is marginally down over the past three months. The headline news for Nvidia this week has been the Biden administration’s proposal to impose AI chip restrictions that would apply caps on U.S. exports to more than 120 countries. However, a more important driver for the stock could be reports of issues with the manufacturing of its GB200 NV liquid-cooled rack systems, which contain dozens of its Blackwell chips networked together and is used to train and run AI models. “Blackwell GPU supply [is] ramping in line; however, low manufacturing yields are significantly limiting shipments of GB200 NVL racks,” wrote KeyBanc analyst John Vinh in a