NVIDIA's Explosive Earnings: Should You Buy the Stock or ETFs Now?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 28 2024
0mins
Should l Buy GOOGL?
Source: NASDAQ.COM
- NVIDIA's Exceptional First-Quarter Results: NVIDIA reported outstanding first-quarter fiscal 2025 results with a significant increase in data center revenues driven by AI technology adoption.
- Key Players in Data Center Revenue: Microsoft, Amazon, and Alphabet accounted for approximately 45% of NVIDIA's data center revenue.
- Split-Adjusted Stock Trading: NVIDIA's stock will begin trading on a split-adjusted basis on June 10, potentially making it more attractive to retail investors and opening the possibility of inclusion in the Dow.
- Competition and Dominance in AI Chip Market: While NVIDIA holds a dominant position in cutting-edge chips for training AI models, competition may arise in the future as other companies develop their own chips.
- ETFs and Investment Opportunities: Single-stock ETFs tracking NVIDIA have gained popularity, offering short-term trading opportunities, while chip and AI-focused ETFs are well-positioned to benefit from the AI boom.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy GOOGL?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to rise
34 Analyst Rating
27 Buy
7 Hold
0 Sell
Strong Buy
Current: 309.000
Low
279.00
Averages
338.25
High
390.00
Current: 309.000
Low
279.00
Averages
338.25
High
390.00
About GOOGL
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
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.
SpaceX Restructures xAI Amid Co-Founder Departures
- Restructuring and Layoffs: Elon Musk announced a reorganization at xAI aimed at improving execution speed, although he did not specify the number of layoffs, which could impact operational efficiency and employee morale.
- Co-Founder Departures: The announcement of two co-founders leaving xAI, following several other founding members' exits, indicates internal turmoil that may negatively affect team dynamics and project progress.
- Acquisition Deal: Last week, SpaceX completed an all-stock acquisition of xAI, valuing the company at $250 billion post-merger, highlighting Musk's commitment to the AI sector and paving the way for a potential public offering.
- Regulatory Scrutiny: xAI is under investigation in multiple jurisdictions, including Europe, Asia, and the U.S., regarding potential violations related to its Grok chatbot, which could harm the company's reputation and market performance.
See More
UK Treasury Considers Expanding Short-Dated T-Bill Issuance
- Short-Dated Risk: Jessica Pulay, CEO of the UK's Debt Management Office, cautioned Parliament about the refinancing risks associated with expanding T-bill issuance, particularly during market turmoil, which could exacerbate public finance vulnerabilities.
- Issuance Comparison: This fiscal year, T-bills are projected to account for only £11 billion in net issuance, significantly lower than the £304 billion in long-dated gilt sales, indicating the UK's relative lag in short-term debt issuance compared to countries like the US.
- Market Reaction Impact: While T-bills typically offer lower interest rates, their frequent resale exposes them to greater market volatility; Pulay emphasized the need to consider liquidity and execution risks to ensure long-term borrowing value.
- Future Issuance Plans: The Debt Management Office will outline its issuance plans for the 2026/27 fiscal year on March 3, as demand for long-dated gilts declines, despite recent successful sales of ultra-long bonds, highlighting a need for ongoing market trend monitoring.
See More
Alphabet's Promising AI Investment Outlook
- Significant Revenue Growth: Alphabet's revenue increased by 18% year-over-year in Q4 2025, reaching $113.8 billion, reflecting a strong rebound in advertising spending post-election year, thereby solidifying its market position.
- Substantial Net Income Surge: The net income soared by 30% in Q4 compared to the same period in 2024, exceeding Wall Street expectations, indicating robust performance in advertising and subscription revenues, particularly with YouTube's annual revenue surpassing $60 billion.
- Surge in Capital Expenditures: Last year, Alphabet's capital expenditures totaled $91 billion, with forecasts for 2026 rising to between $175 billion and $185 billion, primarily for building AI-related infrastructure, demonstrating the company's strong commitment to future technological advancements.
- Strong User Growth: The Gemini app now boasts 750 million monthly active users, while Google Cloud achieved a remarkable 48% revenue growth in Q4, indicating robust demand for enterprise AI offerings and further enhancing Alphabet's long-term growth potential.
See More
US Stocks Decline Amid Rising AI Concerns
- Market Pressure Intensifies: The S&P 500 index fell by 0.22% and the Nasdaq 100 by 0.23%, reflecting investor concerns about AI technologies potentially disrupting multiple sectors, leading to a depressed market sentiment and extending Thursday's sharp losses.
- Inflation Data Impact: The US January Consumer Price Index rose by 2.4% year-over-year, below the expected 2.5%, marking the smallest increase in seven months, which drove the 10-year Treasury yield down to a 2.25-month low of 4.05%, potentially prompting the Fed to continue cutting rates.
- Earnings Optimism: Over two-thirds of S&P 500 companies have reported earnings, with 76% exceeding expectations, and Q4 earnings growth is projected at 8.4%, marking the tenth consecutive quarter of year-over-year growth, indicating resilience in corporate earnings.
- Tech Stocks Underperform: The so-called
See More
Alphabet Issues $32 Billion in Debt to Fund AI Investments
- Debt Issuance Scale: Alphabet issued $32 billion in new debt within 24 hours, including $20 billion in U.S. dollar bonds and $12 billion in bonds denominated in sterling and Swiss francs, showcasing its strong financing capability in the capital markets.
- Accelerated AI Investment: Despite having over $126 billion in cash and short-term investments, Alphabet plans to spend $185 million this year on AI data center construction, doubling last year's expenditure, indicating its commitment to the AI sector.
- Industry Trend: Similar to Alphabet, major tech companies like Amazon, Meta, and Microsoft are raising substantial funds in the global debt market, planning to spend $100 billion, $135 billion, and $105 billion respectively on AI infrastructure, highlighting intensifying competition within the industry.
- Positive Investor Response: According to Bloomberg, bond investors welcomed the new issuances with high demand, reflecting an optimistic market outlook on tech companies' investments in AI, further energizing the capital markets.
See More
Pinterest Price Target Cut to $25 Amid Deteriorating Fundamentals
- Price Target Reduction: Evercore ISI has cut Pinterest's price target from $40 to $25 and downgraded its rating from 'Outperform' to 'In Line', indicating a clear deterioration in the company's fundamentals as revenue growth continues to slow.
- Revenue Growth Deceleration: Pinterest's revenue growth rate fell from 17% in Q2 to 16% in Q3, and further down to 13% in Q4, highlighting the severe challenges the company faces in an increasingly competitive market.
- Market Reaction: Following the Q4 revenue miss against Wall Street expectations, Pinterest's stock dropped over 21% in pre-market trading on Friday, and has declined nearly 33% over the past month, reflecting a significant loss of investor confidence.
- Increased Competitive Pressure: Analysts noted rising competitive intensity from AI-driven rivals like Google and Meta, compounded by the impact of tariffs from the Trump administration on major retailers' advertising budgets, which has further exacerbated Pinterest's market challenges.
See More
SpaceX Restructures xAI Amid Co-Founder Departures
- Restructuring and Layoffs: Elon Musk announced a reorganization at xAI aimed at improving execution speed, although he did not specify the number of layoffs, which could impact operational efficiency and employee morale.
- Co-Founder Departures: The announcement of two co-founders leaving xAI, following several other founding members' exits, indicates internal turmoil that may negatively affect team dynamics and project progress.
- Acquisition Deal: Last week, SpaceX completed an all-stock acquisition of xAI, valuing the company at $250 billion post-merger, highlighting Musk's commitment to the AI sector and paving the way for a potential public offering.
- Regulatory Scrutiny: xAI is under investigation in multiple jurisdictions, including Europe, Asia, and the U.S., regarding potential violations related to its Grok chatbot, which could harm the company's reputation and market performance.
See More
UK Treasury Considers Expanding Short-Dated T-Bill Issuance
- Short-Dated Risk: Jessica Pulay, CEO of the UK's Debt Management Office, cautioned Parliament about the refinancing risks associated with expanding T-bill issuance, particularly during market turmoil, which could exacerbate public finance vulnerabilities.
- Issuance Comparison: This fiscal year, T-bills are projected to account for only £11 billion in net issuance, significantly lower than the £304 billion in long-dated gilt sales, indicating the UK's relative lag in short-term debt issuance compared to countries like the US.
- Market Reaction Impact: While T-bills typically offer lower interest rates, their frequent resale exposes them to greater market volatility; Pulay emphasized the need to consider liquidity and execution risks to ensure long-term borrowing value.
- Future Issuance Plans: The Debt Management Office will outline its issuance plans for the 2026/27 fiscal year on March 3, as demand for long-dated gilts declines, despite recent successful sales of ultra-long bonds, highlighting a need for ongoing market trend monitoring.
See More
Alphabet's Promising AI Investment Outlook
- Significant Revenue Growth: Alphabet's revenue increased by 18% year-over-year in Q4 2025, reaching $113.8 billion, reflecting a strong rebound in advertising spending post-election year, thereby solidifying its market position.
- Substantial Net Income Surge: The net income soared by 30% in Q4 compared to the same period in 2024, exceeding Wall Street expectations, indicating robust performance in advertising and subscription revenues, particularly with YouTube's annual revenue surpassing $60 billion.
- Surge in Capital Expenditures: Last year, Alphabet's capital expenditures totaled $91 billion, with forecasts for 2026 rising to between $175 billion and $185 billion, primarily for building AI-related infrastructure, demonstrating the company's strong commitment to future technological advancements.
- Strong User Growth: The Gemini app now boasts 750 million monthly active users, while Google Cloud achieved a remarkable 48% revenue growth in Q4, indicating robust demand for enterprise AI offerings and further enhancing Alphabet's long-term growth potential.
See More
US Stocks Decline Amid Rising AI Concerns
- Market Pressure Intensifies: The S&P 500 index fell by 0.22% and the Nasdaq 100 by 0.23%, reflecting investor concerns about AI technologies potentially disrupting multiple sectors, leading to a depressed market sentiment and extending Thursday's sharp losses.
- Inflation Data Impact: The US January Consumer Price Index rose by 2.4% year-over-year, below the expected 2.5%, marking the smallest increase in seven months, which drove the 10-year Treasury yield down to a 2.25-month low of 4.05%, potentially prompting the Fed to continue cutting rates.
- Earnings Optimism: Over two-thirds of S&P 500 companies have reported earnings, with 76% exceeding expectations, and Q4 earnings growth is projected at 8.4%, marking the tenth consecutive quarter of year-over-year growth, indicating resilience in corporate earnings.
- Tech Stocks Underperform: The so-called
See More
Alphabet Issues $32 Billion in Debt to Fund AI Investments
- Debt Issuance Scale: Alphabet issued $32 billion in new debt within 24 hours, including $20 billion in U.S. dollar bonds and $12 billion in bonds denominated in sterling and Swiss francs, showcasing its strong financing capability in the capital markets.
- Accelerated AI Investment: Despite having over $126 billion in cash and short-term investments, Alphabet plans to spend $185 million this year on AI data center construction, doubling last year's expenditure, indicating its commitment to the AI sector.
- Industry Trend: Similar to Alphabet, major tech companies like Amazon, Meta, and Microsoft are raising substantial funds in the global debt market, planning to spend $100 billion, $135 billion, and $105 billion respectively on AI infrastructure, highlighting intensifying competition within the industry.
- Positive Investor Response: According to Bloomberg, bond investors welcomed the new issuances with high demand, reflecting an optimistic market outlook on tech companies' investments in AI, further energizing the capital markets.
See More
Pinterest Price Target Cut to $25 Amid Deteriorating Fundamentals
- Price Target Reduction: Evercore ISI has cut Pinterest's price target from $40 to $25 and downgraded its rating from 'Outperform' to 'In Line', indicating a clear deterioration in the company's fundamentals as revenue growth continues to slow.
- Revenue Growth Deceleration: Pinterest's revenue growth rate fell from 17% in Q2 to 16% in Q3, and further down to 13% in Q4, highlighting the severe challenges the company faces in an increasingly competitive market.
- Market Reaction: Following the Q4 revenue miss against Wall Street expectations, Pinterest's stock dropped over 21% in pre-market trading on Friday, and has declined nearly 33% over the past month, reflecting a significant loss of investor confidence.
- Increased Competitive Pressure: Analysts noted rising competitive intensity from AI-driven rivals like Google and Meta, compounded by the impact of tariffs from the Trump administration on major retailers' advertising budgets, which has further exacerbated Pinterest's market challenges.
See More
