Investment Recommendations: Nvidia vs Intel
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy NVDA?
Source: Fool
- Nvidia Investment Outlook: J.P. Morgan analyst Harlan Sur recommends buying Nvidia with a target price of $265, implying a 32% upside from the current share price of $200, reflecting strong market demand and growth potential in the AI sector.
- Nvidia Financial Performance: Nvidia reported a 73% year-over-year revenue increase to $68 billion in Q4, with non-GAAP net income rising 84% to $1.62 per share, indicating robust performance and sustained profitability in the data center market.
- Intel Market Challenges: Despite Intel's Q1 revenue growth of 7% to $13.6 billion and a 123% surge in non-GAAP earnings to $0.29 per share, J.P. Morgan analysts remain skeptical about its future market share, expecting continued losses in the data center segment.
- Intel New Client Opportunity: Tesla's decision to utilize Intel's 14A manufacturing technology for its Terafab plants could provide a new growth avenue for Intel's foundry business, although analysts generally view its current valuation as excessively high.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 199.570
Low
200.00
Averages
264.97
High
352.00
Current: 199.570
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Nvidia's Earnings Growth Expected to Accelerate Over Next Three Years
- Market Share Expansion: Nvidia's upcoming Vera Rubin processors are expected to reduce inference costs by 90%, significantly enhancing its competitiveness in the AI inference market, with projected data center sales reaching $1 trillion in 2026 and 2027, a substantial increase from the previous $500 billion forecast.
- Strong Profitability: Nvidia anticipates a 75% increase in earnings per share for the current fiscal year, reaching $8.34, far exceeding the tech sector's estimated 44% year-over-year growth, showcasing its robust profitability and market leadership in the AI sector.
- Partnership Growth: Nvidia has established partnerships with leading AI companies such as Anthropic, Meta, xAI, and OpenAI, providing a stable demand source as these companies see strong adoption of their AI inference applications, further solidifying Nvidia's market position.
- Long-Term Growth Potential: Despite Nvidia's current P/E ratio of 42.5, significantly higher than the Nasdaq-100's 33.4, its strong earnings growth potential justifies this valuation, with expectations of surpassing a $10 trillion market cap within the next three years, attracting more investor interest.
See More
NVIDIA Has Not Sold H200 Chips to Chinese Firms Amid Trade Concerns
- Sales Delay: NVIDIA has not sold its H200 AI chips to Chinese enterprises, as reported by Secretary Howard Lutnick, who attributed the delay to China's government banning acquisitions to favor domestic market investment, highlighting the tension in US-China trade relations.
- Policy Impact: The Trump administration approved shipments of H200 chips to China in January with conditions, raising concerns among US lawmakers about potential military applications, which has further complicated sales terms and slowed supply chains.
- Export Restrictions: Lutnick mentioned that the affiliates rule blocking exports to thousands of Chinese businesses is still under consideration, linked to broader trade negotiations, indicating that policy uncertainty may affect NVIDIA's market strategy.
- Investment Potential: While NVIDIA is recognized as one of the best data center hardware stocks, analysts suggest that certain AI stocks may offer greater upside potential and lower downside risk, reflecting a diverse outlook on the AI sector.
See More
Investment Recommendations: Nvidia vs Intel
- Nvidia Investment Outlook: J.P. Morgan analyst Harlan Sur recommends buying Nvidia with a target price of $265, implying a 32% upside from the current share price of $200, reflecting strong market demand and growth potential in the AI sector.
- Nvidia Financial Performance: Nvidia reported a 73% year-over-year revenue increase to $68 billion in Q4, with non-GAAP net income rising 84% to $1.62 per share, indicating robust performance and sustained profitability in the data center market.
- Intel Market Challenges: Despite Intel's Q1 revenue growth of 7% to $13.6 billion and a 123% surge in non-GAAP earnings to $0.29 per share, J.P. Morgan analysts remain skeptical about its future market share, expecting continued losses in the data center segment.
- Intel New Client Opportunity: Tesla's decision to utilize Intel's 14A manufacturing technology for its Terafab plants could provide a new growth avenue for Intel's foundry business, although analysts generally view its current valuation as excessively high.
See More
J.P. Morgan Analyst Recommends Buy Nvidia, Sell Intel
- Nvidia Stock Potential: J.P. Morgan analyst Harlan Sur recommends buying Nvidia with a target price of $265 per share, implying a 32% upside from the current price of $200, reflecting strong market confidence in its demand and growth in the AI sector.
- Intel Stock Risk: Sur advises selling Intel, with a target price of $45 per share, indicating a 52% downside from the current price of $94, highlighting concerns over its declining market share in the data center segment.
- Nvidia Financial Performance: Nvidia reported a 73% year-over-year revenue increase to $68 billion in Q4, with non-GAAP net income rising 84% to $1.62 per share, showcasing its robust performance in AI training and inference, with earnings expected to grow at 53% annually over the next two years.
- Intel Market Challenges: Although Intel's Q1 revenue grew 7% to $13.6 billion and non-GAAP earnings soared 123% to $0.29 per share, analysts believe this was driven more by price increases than market share recovery, with expectations of continued market share loss ahead.
See More
Netflix Acquires AI Firm to Enhance Content Production
- AI Acquisition: In March, Netflix acquired InterPositive for approximately $600 million, aiming to develop AI-powered tools that enhance filmmaking efficiency, thereby reducing production costs and improving margins.
- Production Efficiency Boost: By implementing advanced AI tools, Netflix can accelerate content production, potentially delivering the same or higher quality films and shows at a lower cost, which is likely to increase user engagement on the platform.
- Advertising Business Growth Potential: Netflix projects its advertising segment will generate $3 billion in sales by 2025, a 100% increase, indicating significant potential in the emerging advertising market that could substantially drive revenue growth.
- Valuation Considerations: Although Netflix's current P/E ratio stands at 28.8, significantly above the 22.2 average for communication services, its leadership in the streaming sector and future growth opportunities make it a compelling investment for stakeholders.
See More
J.P. Morgan Bullish on Nvidia, Bearish on Intel
- Nvidia's Positive Outlook: J.P. Morgan analyst Harlan Sur forecasts a 32% upside for Nvidia, driven by its leadership in AI and full-stack data center systems, with expected earnings growth of 53% annually, indicating strong market demand and investment potential.
- Intel's Challenges: Despite Intel's first-quarter results beating estimates with a 7% revenue increase to $13.6 billion, analysts remain skeptical about its future market share, particularly in the data center segment, reflecting its disadvantage in the AI boom.
- Valuation Discrepancies: Nvidia's current P/E ratio stands at 42, with analysts generally viewing it as undervalued, while Intel's P/E ratio is a staggering 165, indicating significant overvaluation risks that investors should carefully assess.
- New Client Opportunity: Intel has secured Tesla as its first major foundry customer, potentially revitalizing its foundry business, although analysts remain doubtful about its ability to secure a foothold in the AI market, which could impact future competitive dynamics.
See More
Nvidia's Earnings Growth Expected to Accelerate Over Next Three Years
- Market Share Expansion: Nvidia's upcoming Vera Rubin processors are expected to reduce inference costs by 90%, significantly enhancing its competitiveness in the AI inference market, with projected data center sales reaching $1 trillion in 2026 and 2027, a substantial increase from the previous $500 billion forecast.
- Strong Profitability: Nvidia anticipates a 75% increase in earnings per share for the current fiscal year, reaching $8.34, far exceeding the tech sector's estimated 44% year-over-year growth, showcasing its robust profitability and market leadership in the AI sector.
- Partnership Growth: Nvidia has established partnerships with leading AI companies such as Anthropic, Meta, xAI, and OpenAI, providing a stable demand source as these companies see strong adoption of their AI inference applications, further solidifying Nvidia's market position.
- Long-Term Growth Potential: Despite Nvidia's current P/E ratio of 42.5, significantly higher than the Nasdaq-100's 33.4, its strong earnings growth potential justifies this valuation, with expectations of surpassing a $10 trillion market cap within the next three years, attracting more investor interest.
See More
NVIDIA Has Not Sold H200 Chips to Chinese Firms Amid Trade Concerns
- Sales Delay: NVIDIA has not sold its H200 AI chips to Chinese enterprises, as reported by Secretary Howard Lutnick, who attributed the delay to China's government banning acquisitions to favor domestic market investment, highlighting the tension in US-China trade relations.
- Policy Impact: The Trump administration approved shipments of H200 chips to China in January with conditions, raising concerns among US lawmakers about potential military applications, which has further complicated sales terms and slowed supply chains.
- Export Restrictions: Lutnick mentioned that the affiliates rule blocking exports to thousands of Chinese businesses is still under consideration, linked to broader trade negotiations, indicating that policy uncertainty may affect NVIDIA's market strategy.
- Investment Potential: While NVIDIA is recognized as one of the best data center hardware stocks, analysts suggest that certain AI stocks may offer greater upside potential and lower downside risk, reflecting a diverse outlook on the AI sector.
See More
Investment Recommendations: Nvidia vs Intel
- Nvidia Investment Outlook: J.P. Morgan analyst Harlan Sur recommends buying Nvidia with a target price of $265, implying a 32% upside from the current share price of $200, reflecting strong market demand and growth potential in the AI sector.
- Nvidia Financial Performance: Nvidia reported a 73% year-over-year revenue increase to $68 billion in Q4, with non-GAAP net income rising 84% to $1.62 per share, indicating robust performance and sustained profitability in the data center market.
- Intel Market Challenges: Despite Intel's Q1 revenue growth of 7% to $13.6 billion and a 123% surge in non-GAAP earnings to $0.29 per share, J.P. Morgan analysts remain skeptical about its future market share, expecting continued losses in the data center segment.
- Intel New Client Opportunity: Tesla's decision to utilize Intel's 14A manufacturing technology for its Terafab plants could provide a new growth avenue for Intel's foundry business, although analysts generally view its current valuation as excessively high.
See More
J.P. Morgan Analyst Recommends Buy Nvidia, Sell Intel
- Nvidia Stock Potential: J.P. Morgan analyst Harlan Sur recommends buying Nvidia with a target price of $265 per share, implying a 32% upside from the current price of $200, reflecting strong market confidence in its demand and growth in the AI sector.
- Intel Stock Risk: Sur advises selling Intel, with a target price of $45 per share, indicating a 52% downside from the current price of $94, highlighting concerns over its declining market share in the data center segment.
- Nvidia Financial Performance: Nvidia reported a 73% year-over-year revenue increase to $68 billion in Q4, with non-GAAP net income rising 84% to $1.62 per share, showcasing its robust performance in AI training and inference, with earnings expected to grow at 53% annually over the next two years.
- Intel Market Challenges: Although Intel's Q1 revenue grew 7% to $13.6 billion and non-GAAP earnings soared 123% to $0.29 per share, analysts believe this was driven more by price increases than market share recovery, with expectations of continued market share loss ahead.
See More
Netflix Acquires AI Firm to Enhance Content Production
- AI Acquisition: In March, Netflix acquired InterPositive for approximately $600 million, aiming to develop AI-powered tools that enhance filmmaking efficiency, thereby reducing production costs and improving margins.
- Production Efficiency Boost: By implementing advanced AI tools, Netflix can accelerate content production, potentially delivering the same or higher quality films and shows at a lower cost, which is likely to increase user engagement on the platform.
- Advertising Business Growth Potential: Netflix projects its advertising segment will generate $3 billion in sales by 2025, a 100% increase, indicating significant potential in the emerging advertising market that could substantially drive revenue growth.
- Valuation Considerations: Although Netflix's current P/E ratio stands at 28.8, significantly above the 22.2 average for communication services, its leadership in the streaming sector and future growth opportunities make it a compelling investment for stakeholders.
See More
J.P. Morgan Bullish on Nvidia, Bearish on Intel
- Nvidia's Positive Outlook: J.P. Morgan analyst Harlan Sur forecasts a 32% upside for Nvidia, driven by its leadership in AI and full-stack data center systems, with expected earnings growth of 53% annually, indicating strong market demand and investment potential.
- Intel's Challenges: Despite Intel's first-quarter results beating estimates with a 7% revenue increase to $13.6 billion, analysts remain skeptical about its future market share, particularly in the data center segment, reflecting its disadvantage in the AI boom.
- Valuation Discrepancies: Nvidia's current P/E ratio stands at 42, with analysts generally viewing it as undervalued, while Intel's P/E ratio is a staggering 165, indicating significant overvaluation risks that investors should carefully assess.
- New Client Opportunity: Intel has secured Tesla as its first major foundry customer, potentially revitalizing its foundry business, although analysts remain doubtful about its ability to secure a foothold in the AI market, which could impact future competitive dynamics.
See More
