ASML Holding is a Dutch supplier of lithography equipment essential for advanced chip manufacturing with a market value of $415 billion and significant growth.
ASML is set to ship high-NA EUV chipmaking machine to Taiwan Semiconductor and Intel in 2024, planning major expansion in Eindhoven.
Nvidia is a leading player in technology with a stock increase of 170% year-to-date and the largest company in the world.
Nvidia's involvement in AI boom offers $300 billion opportunity, benefits for cloud customers, and potential for enterprise demand.
Recurring software services expected to strengthen Nvidia's relationship with enterprise users and generate new revenue streams.
In recent times, Nvidia has emerged as a leading player in the world of technology. The company's stock has soared by 170% year-to-date and is currently the largest company in the world. This success can be attributed to Nvidia's significant involvement in the artificial intelligence (AI) boom, with its GenAI hardware deployments creating a $300 billion opportunity for the company. Benefits of Nvidia's next-generation AI accelerator systems are set to roll out later this year, primarily catering to cloud customers. The potential for on-premise enterprise and sovereign AI demand, along with software monetization, could open up a new leg of growth for Nvidia. Recurring software services are also expected to strengthen the company's relationship with enterprise users and generate new revenue streams. Despite the substantial increase in Nvidia's stock price, it is still considered to be trading at a relatively reasonable valuation when compared to last year. Unlike the dot-com boom, genAI deployment is viewed as a mission-critical race between well-funded cloud customers. As such, Nvidia's stock remains a compelling investment opportunity despite its recent growth.
In addition to Nvidia, ASML Holding (ASML), a Dutch supplier of lithography equipment essential for advanced chip manufacturing, is also expected to undergo a stock split. With a market value of $415 billion, ASML has been experiencing significant growth and is set to ship its high-NA EUV chipmaking machine to Taiwan Semiconductor (TSM) and Intel (INTC) in 2024. The company is also planning a major expansion in Eindhoven, Netherlands as part of its broader strategy to support business growth and maintain its position in the global semiconductor market.
Despite Nvidia's staggering gains, investors are left wondering whether to cash in or buy more. Notable figures such as Ivana Delevska, founder and CIO of Spear Invest, remain bullish on Nvidia shares with it being the top holding in her fund. As the technological shift towards AI continues to gain momentum, companies like Nvidia and ASML are expected to remain at the forefront of this transformation.
Nvidia stock has soared 170% year-to-date and is the largest company in the world this week.
GenAI hardware deployments are still only in Year 2 of a potential 3-5 year deployment cycle, creating a $300 billion opportunity for Nvidia.
Benefits of Nvidia’s next-gen AI accelerator systems will start later this year with solid demand from cloud customers.
On-premise enterprise and sovereign AI demand, as well as software monetization, could open the next leg of growth for Nvidia.
Recurring software services could strengthen Nvidia’s relationship with enterprise users and open up new revenue streams.
Nvidia is trading at a cheaper valuation today than it was last year, with a compelling valuation at 35-40x consensus and only ~30x PE on a bull-case $5/share earnings scenario.
Unlike the ‘dot-com boom’, genAI deployment is a mission-critical race between well-funded cloud customers.
Nvidia dominates the AI-chip sector and has a proprietary software framework that developers use to program AI processors
Ivana Delevska, founder and CIO of Spear Invest, remains bullish on Nvidia shares and it is the top holding in her fund
Accuracy
Nvidia has become the largest US company by market value
Nvidia's shares have tripled in the past year and are up 206% in the last 12 months
Revenues are expected to double this fiscal year to $120 billion and rise to $160 billion in the following year
Deception
(30%)
The article contains selective reporting as it only reports details that support the author's position of Nvidia's stock being a good investment. The author quotes several bullish investors and their reasons for investing in Nvidia without mentioning any bearish opinions or counterarguments. The article also uses emotional manipulation by describing the huge rally in Nvidia's shares and the fear of missing out on more gains, which can influence readers to make impulsive investment decisions.
Indeed, Nvidia’s forward price-to-earnings ratio of about 45 is only modestly higher than its five-year average P/E of 41, even after growing from 25 at the start of the year.
Optimistic investors point to Nvidia’s dominance of the AI-chip sector as a key reason for their bullishness.
Nvidia bulls say more gains are coming. The Santa Clara, California company stands at the forefront of a massive technological shift as the dominant provider of chips to support artificial intelligence applications.
The stock is up 164% in 2024, as its market value has surged to over $3.2 trillion, briefly putting it ahead of Microsoft and Apple this week.
Fallacies
(85%)
The author makes several appeals to authority by quoting various experts and analysts throughout the article. For example, 'Ivana Delevska, founder and chief investment officer of Spear Invest, remains bullish on the outlook for Nvidia shares.' This is an appeal to authority as Delevska's opinion is being presented as evidence that Nvidia's stock will continue to perform well. Another example can be found in 'Gil Luria, an analyst with D.A. Davidson, has a neutral rating on the stock and a $90 price target.' This is also an appeal to authority as Luria's analysis is being presented as evidence that Nvidia's future performance may not meet expectations. The author also uses inflammatory rhetoric by describing Nvidia's share price trajectory as 'eye-popping', 'staggering gains', and 'huge rally'. This language is intended to elicit an emotional response from the reader and can be misleading or manipulative.
][Ivana Delevska, founder and chief investment officer of Spear Invest, remains bullish on the outlook for Nvidia shares.][][Gil Luria, an analyst with D.A. Davidson, has a neutral rating on the stock and a $90 price target.]['The huge rally in Nvidia Corp’s shares has investors weighing whether to cash in, hold on for more gains or chase a stock that has tripled during the past year.]['Nvidia this week briefly became the largest U.S. company by market value on the back of a more than 1,000% surge in share price since October 2022.']
Bias
(95%)
The author expresses a neutral perspective towards Nvidia's stock performance and acknowledges the potential risks of its high valuation. However, he also highlights the company's dominance in the AI-chip sector and its solid earnings support. The author quotes several bullish investors who expect upside to earnings beyond what Wall Street analysts are forecasting.
Ivana Delevska, founder and chief investment officer of Spear Invest, remains bullish on the outlook for Nvidia shares.
]The stock is up 164% in 2024, as its market value has surged to over $3.2 trillion, briefly putting it ahead of Microsoft and Apple this week.[
Tom Plumb, president of Plumb Funds, believes the opportunity for Nvidia's chips beyond AI is underappreciated.
ASML Holding (ASML) is a Dutch supplier of lithography equipment essential for advanced chip manufacturing.
ASML recently surpassed LVMH (LVMUY) to become the second-largest listed company in Europe with a market value of $415 billion.
ASML stock has been on a tear, up over 3,000% since its last stock split in 2007.
ASML is projected to grow earnings to $31.19 per share in fiscal 2025 and revenue to $38.93 billion.
ASML is set to ship its high-NA EUV chipmaking machine to Taiwan Semiconductor (TSM) and Intel (INTC) in 2024.
ASML is collaborating with Belgium’s imec on the development of high-NA EUV lithography equipment, with funding from several EU programs and the Belgian government.
ASML is planning a major expansion in Eindhoven, Netherlands as part of its broader strategy to support business growth and maintain its position in the global semiconductor market.
