Today I’m making Rockwell Automation my sixth pick in my Special Report 5 Next Big Things. This pick just about completes the picks for my first of those 5 Nect Big Things, the Next Phase in the AI boom.
I can’t give you a definitive call on the top for this stock and this rally, but I cam sure of one thing, I don’t want to sell Nvidia before the company’s new Blackwell chip architecture has hit full launch speed in late 2024 and 2025. My read is that this is the “perfect” AI chip for this moment in the AI boom.
I will be adding shares of ServiceNow to my 12-18 month Jubak’s Picks Portfolio tomorrow June 27.
I think there are reasons to worry about Nvidia’s valuation and its ability to continue to generate revenue and earnings growth at a pace that would support a forward price to earnings ratio above 40, but I think those re worries for 2025. In 2024, I don’t see anything that disrupts the AI boom story. Over the next six months or so I’d like to be buyer, especially id I can get the shares on a temporary drop. So yesterday’s drop to $118 was a promising development. There was technical support at the 50-day moving average near $100 so there was a chance the stock would move lower. Today, Tuesday, June 25, though, shares of Nvidia rallied, closing ups 6.76% at $126.09. This doesn’t mean the drop is over or the opportunity is lost,
At this point in the AI cycle I’d like to own shares of companies providing AI solutions in relatively “easy” data universes. (Nothing as complex as voice recognition for an interface with a diverse customer universe under uncontrolled environmental conditions. Like a family in a car at a McDonald’s drive-through.) And I’d like to focus on shares of companies with products that provide clear enhancements to customers bottom lines. Like my Pick #4 Salesforce (CRM). in my 5 Next Big Things Special Report.
I’d buy Broadcom even at this price as one of my three core AI stocks from the current generation of leaders. I’m adding it today to my long-term 50 Stocks Portfolio.
Yesterday, May 22, after the market close, Nvidia (NVDA) crushed Wall Street projections for revenue and earnings for the company’s fiscal first quarter of 2025. Nvidia reported that revenue soared 262% year-over-year to a record $26 billion, marking an 18% quarter-over-quarter increase. Adjusted earnings per share climbed 461% to $6.12. The Wall Street consensus had called for revenue of $24.65 billion and earnings per share of $5.59. And it even beat the Wall Street “whisper number,” which in a bullish momentum situation like this runs considerably above the official consensus. Data center revenue hit a record $22.6 billion, up 427% year over year. Data center revenue represents 87% of Nvidia’s total sales. For the current fiscal second quarter of 2025 Nvidia told investors to expect sales of $28 billion, up 107% year over year.
Microsoft will buy more than 10.5 GW of clean energy from Brookfield Asset Management and its Brookfield Renewable affiliate (BEPC), the companies announced on Wednesday, May 1. Shares of Brookfield Renewable were up 5.13% today, May 2, on the news. I added Brookfield Renewable to my Dividend Portfolio on March 26, 2024. The shares are up 10.82% since then as of the close on May 2. They pay a dividend of 5.52%.
After the close today, Alphabet (GOOG) reported revenue of $80.5 billion, easily beating the consensus projection of $78.7 billion. Earning per share came in at $1.89 versus expectations for $1.50 a share. And none of the worries before the news turned out to be problems. Advertising revenue rose 13% to $61.7 billion. Ad revenue for YouTube–an area of worry rose 21% to $8.09 billion. Subscriptions, platforms and devices revenue jumped 18%.
Tuesday, April 23, after the market close Visa (V) reported adjusted net income of $2.51 a share. That ws 7 cent a share more than the consensus of estimates from Wall Street analysts. Earnings rose 7% year-over-year in the quarter. Revenue climbed 10% from a year prior to $8.8 billion, also exceeding Wall Street estimates
I certainly understand the sell off in shares of development stage lithium producer Lithium Americas (LAC). Today, April 23, the stock closed at $4.68 a share, down another 1.47%. On April 16 the stock closed at $6.49 after hitting $7.34 on April 11. The culprit? The company closed a previously announced stock offer to 55 million shares at a price of $5 a share to raise $275 million.
You can see the problem, right? Stock is trading at $7.34 or $6.49 and then a big public offer dumps 55 million shares on the market at $5 a share. Ouch!! So I understand the price plunge–36.2% from April 11 to the close on April 23. And as someone who owns shares in his personal portfolio, I can’t say I’m a happy camper. But I will be being more in my personal account three days after this is posted.
