Volatility in Tech Stocks and Investment Opportunities
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 hours ago
0mins
Should l Buy NVDA?
Source: Fool
- Nvidia Market Dominance: Nvidia (NVDA) dominates the data center GPU market, trading 12.4% below its high, yet its upcoming AI chip Rubin is expected to drive future growth, with analysts forecasting a 46% annualized earnings growth.
- Broadcom's Diversification Advantage: Broadcom (AVGO) is 23% below its high, but over a third of its business comes from infrastructure software solutions, with a projected long-term earnings growth of 35%, making it attractive at 32 times forward earnings.
- Meta Platforms Growth Potential: Meta (META) is down 19% from its high, yet its daily active users grew 7% year-over-year to 3.58 billion, with analysts estimating a 19% annualized earnings growth over the next three to five years, making it a compelling investment at just over 21 times forward earnings.
- Microsoft's AI Risks and Opportunities: Microsoft (MSFT) trades 26% below its high, facing competitive pressure from OpenAI, yet holds a 27% stake in OpenAI, with analysts predicting a 16% annualized earnings growth over the next three to five years, making it a valuable investment at under 24 times forward earnings.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy NVDA?" 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 NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 184.970
Low
200.00
Averages
264.97
High
352.00
Current: 184.970
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
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 Q4 Earnings Forecast Shows Strong Growth Potential
- Optimistic Earnings Forecast: Nvidia anticipates fourth-quarter revenue for fiscal 2026 to reach $65 billion, representing a 65% year-over-year growth, highlighting the company's strong demand in the AI chip market and its leadership position.
- Increased Capital Expenditures: Major tech companies plan to further increase capital expenditures in 2026, primarily for AI infrastructure, which will directly boost Nvidia's GPU sales and solidify its market dominance.
- Surge in Product Demand: CEO Jensen Huang noted that demand for the Blackwell platform data center products is “off the charts,” indicating rapid growth in market demand for Nvidia's AI computing products.
- Record of Exceeding Estimates: Nvidia has surpassed Wall Street's earnings expectations in 20 out of the last 22 quarters, demonstrating strong performance stability and management's clear visibility into future results, with expectations to continue this trend.
See More
SOFTBANK GROUP CORP SELLS OFF ITS SHAREHOLDING IN NVIDIA CORP - SEC FILING
SoftBank Group Corp's Decision: SoftBank Group Corp has decided to dissolve its share stake in Nvidia Corp, indicating a strategic shift in its investment portfolio.
SEC Filing: The dissolution of the stake was formally communicated through a filing with the Securities and Exchange Commission (SEC), highlighting regulatory compliance in the process.
See More
Nvidia's Multi-Year Deal with Meta Seen as Positive Catalyst
- Deal Impact: Nvidia's multi-year agreement with Meta is viewed by Needham as a positive catalyst for the chipmaker, with expectations of stock price increases despite unknown specifics, reflecting strong demand for AI infrastructure.
- Growth Engine: Analyst Bolton emphasizes that Nvidia is likely to remain the primary growth engine in the data center market, driven by surging hyperscaler spending needs, although competitive dynamics may pressure long-term positioning.
- Innovative Deployments: Meta will increase its use of Nvidia's Grace CPUs in its data centers and plans to deploy Nvidia's upcoming Vera CPUs at scale next year, marking the first large-scale deployment of Nvidia's technology, showcasing the depth of their collaboration.
- Efficiency Enhancements: Meta will also utilize Nvidia's Spectrum-X to boost network efficiency and adopt Nvidia's Confidential Computing for WhatsApp, enhancing AI capabilities while safeguarding user privacy, further solidifying Nvidia's market position in AI technology.
See More
US Stock Markets Rise on Strong Economic Data
- Strong Economic Data: US December capital goods new orders rose 0.6% month-over-month, surpassing expectations of 0.3%, indicating a rebound in capital spending and boosting market confidence in economic recovery.
- Housing Market Recovery: December housing starts increased by 6.2% month-over-month to 1.404 million, significantly exceeding expectations of 1.304 million, suggesting a revival in the real estate market that could drive growth in related sectors.
- Manufacturing Production Growth: January manufacturing production rose 0.6% month-over-month, beating expectations of 0.4%, marking the largest increase in 11 months, which indicates a recovery momentum in manufacturing that may further propel economic growth.
- Optimistic Corporate Earnings: Over 75% of S&P 500 companies reported earnings that exceeded expectations, with Q4 earnings growth projected at 8.4%, which will further boost market sentiment and attract investor interest.
See More
Big Tech Drives Market Higher Amid Key Earnings
- Tech Stocks Surge: Nvidia's shares rose 2% following a multiyear partnership with Meta, which will utilize millions of Nvidia chips for its data center expansion, thereby enhancing its competitive edge in the tech sector.
- Oil Price Impact: WTI crude oil prices increased by 3.4% amid concerns over potential hostilities between the U.S. and Iran, raising costs for gasoline, transportation, and goods, which could negatively affect several stocks in the portfolio.
- Cybersecurity Concerns: Despite Palo Alto Networks exceeding earnings expectations, its stock fell 7.3% due to ongoing fears that AI could erode its market share, although the CEO argues that increased AI usage will drive demand for security solutions.
- Pharmaceutical Breakthrough: Bristol Myers' FDA-approved drug Camzyos has contributed to a 27% stock price increase over three months, but setbacks in trials for its Alzheimer's treatment raise investor caution regarding future performance.
See More
Nvidia Fully Exits Arm Holdings Position
- Nvidia's Share Exit: According to CNBC, Nvidia's SEC filing revealed it sold its remaining 1.1 million shares of Arm at the end of Q3, valued at $155.8 million, marking a complete exit from its equity position since Arm's 2023 IPO, which may impact market confidence in Arm.
- Arm's Stock Performance: Despite Nvidia's exit, Arm shares rose by 1.89% to $129.29, indicating optimistic market sentiment towards its future performance, likely driven by technical indicators suggesting bullish momentum in the short term.
- Technical Analysis Signals: Arm's stock is currently above short-term moving averages but below both the 100-day and 200-day SMAs, indicating a cautious long-term outlook; investors should monitor key support at $108.50 and resistance at $131.00 for potential trend signals.
- Long-term Performance Challenges: Over the past 12 months, Arm's stock has declined by 19.44%, highlighting the challenges it has faced in the market, which investors should consider when evaluating entry or exit points.
See More
Nvidia's Q4 Earnings Forecast Shows Strong Growth Potential
- Optimistic Earnings Forecast: Nvidia anticipates fourth-quarter revenue for fiscal 2026 to reach $65 billion, representing a 65% year-over-year growth, highlighting the company's strong demand in the AI chip market and its leadership position.
- Increased Capital Expenditures: Major tech companies plan to further increase capital expenditures in 2026, primarily for AI infrastructure, which will directly boost Nvidia's GPU sales and solidify its market dominance.
- Surge in Product Demand: CEO Jensen Huang noted that demand for the Blackwell platform data center products is “off the charts,” indicating rapid growth in market demand for Nvidia's AI computing products.
- Record of Exceeding Estimates: Nvidia has surpassed Wall Street's earnings expectations in 20 out of the last 22 quarters, demonstrating strong performance stability and management's clear visibility into future results, with expectations to continue this trend.
See More
SOFTBANK GROUP CORP SELLS OFF ITS SHAREHOLDING IN NVIDIA CORP - SEC FILING
SoftBank Group Corp's Decision: SoftBank Group Corp has decided to dissolve its share stake in Nvidia Corp, indicating a strategic shift in its investment portfolio.
SEC Filing: The dissolution of the stake was formally communicated through a filing with the Securities and Exchange Commission (SEC), highlighting regulatory compliance in the process.
See More
Nvidia's Multi-Year Deal with Meta Seen as Positive Catalyst
- Deal Impact: Nvidia's multi-year agreement with Meta is viewed by Needham as a positive catalyst for the chipmaker, with expectations of stock price increases despite unknown specifics, reflecting strong demand for AI infrastructure.
- Growth Engine: Analyst Bolton emphasizes that Nvidia is likely to remain the primary growth engine in the data center market, driven by surging hyperscaler spending needs, although competitive dynamics may pressure long-term positioning.
- Innovative Deployments: Meta will increase its use of Nvidia's Grace CPUs in its data centers and plans to deploy Nvidia's upcoming Vera CPUs at scale next year, marking the first large-scale deployment of Nvidia's technology, showcasing the depth of their collaboration.
- Efficiency Enhancements: Meta will also utilize Nvidia's Spectrum-X to boost network efficiency and adopt Nvidia's Confidential Computing for WhatsApp, enhancing AI capabilities while safeguarding user privacy, further solidifying Nvidia's market position in AI technology.
See More
US Stock Markets Rise on Strong Economic Data
- Strong Economic Data: US December capital goods new orders rose 0.6% month-over-month, surpassing expectations of 0.3%, indicating a rebound in capital spending and boosting market confidence in economic recovery.
- Housing Market Recovery: December housing starts increased by 6.2% month-over-month to 1.404 million, significantly exceeding expectations of 1.304 million, suggesting a revival in the real estate market that could drive growth in related sectors.
- Manufacturing Production Growth: January manufacturing production rose 0.6% month-over-month, beating expectations of 0.4%, marking the largest increase in 11 months, which indicates a recovery momentum in manufacturing that may further propel economic growth.
- Optimistic Corporate Earnings: Over 75% of S&P 500 companies reported earnings that exceeded expectations, with Q4 earnings growth projected at 8.4%, which will further boost market sentiment and attract investor interest.
See More
Big Tech Drives Market Higher Amid Key Earnings
- Tech Stocks Surge: Nvidia's shares rose 2% following a multiyear partnership with Meta, which will utilize millions of Nvidia chips for its data center expansion, thereby enhancing its competitive edge in the tech sector.
- Oil Price Impact: WTI crude oil prices increased by 3.4% amid concerns over potential hostilities between the U.S. and Iran, raising costs for gasoline, transportation, and goods, which could negatively affect several stocks in the portfolio.
- Cybersecurity Concerns: Despite Palo Alto Networks exceeding earnings expectations, its stock fell 7.3% due to ongoing fears that AI could erode its market share, although the CEO argues that increased AI usage will drive demand for security solutions.
- Pharmaceutical Breakthrough: Bristol Myers' FDA-approved drug Camzyos has contributed to a 27% stock price increase over three months, but setbacks in trials for its Alzheimer's treatment raise investor caution regarding future performance.
See More
Nvidia Fully Exits Arm Holdings Position
- Nvidia's Share Exit: According to CNBC, Nvidia's SEC filing revealed it sold its remaining 1.1 million shares of Arm at the end of Q3, valued at $155.8 million, marking a complete exit from its equity position since Arm's 2023 IPO, which may impact market confidence in Arm.
- Arm's Stock Performance: Despite Nvidia's exit, Arm shares rose by 1.89% to $129.29, indicating optimistic market sentiment towards its future performance, likely driven by technical indicators suggesting bullish momentum in the short term.
- Technical Analysis Signals: Arm's stock is currently above short-term moving averages but below both the 100-day and 200-day SMAs, indicating a cautious long-term outlook; investors should monitor key support at $108.50 and resistance at $131.00 for potential trend signals.
- Long-term Performance Challenges: Over the past 12 months, Arm's stock has declined by 19.44%, highlighting the challenges it has faced in the market, which investors should consider when evaluating entry or exit points.
See More
