2 months ago
Nvidia (NVDA) being more generous with dividends and stock buybacks could be a nice catalyst for the stock, just as it has been for Apple (AAPL).
The AI chip darling returned a record $26 billion to shareholders in its second fiscal quarter, $20 billion through share repurchases and $6 billion by way of a $0.25 a share quarterly dividend. Relative to its plan to return 50% or more of free cash flow to shareholders, Nvidia has returned 60% year to date.
Executives said the company intends to increase capital returns going forward.
"We forecast Nvidia to return $115 billion in cash to shareholders in 2026 and $230b billion in 2027, which we expect will translate to P/E multiple expansion, similar to what happened to Apple in 2015," Evercore ISI ******* yst Mark Lipacis wrote in a note on Thursday.
Lipacis pointed out in the chart below that after five years of compression, Apple's price-to-earnings ratio began expanding with increases in its capital returns program.
#billion #lipacis #returned #cash
The AI chip darling returned a record $26 billion to shareholders in its second fiscal quarter, $20 billion through share repurchases and $6 billion by way of a $0.25 a share quarterly dividend. Relative to its plan to return 50% or more of free cash flow to shareholders, Nvidia has returned 60% year to date.
Executives said the company intends to increase capital returns going forward.
"We forecast Nvidia to return $115 billion in cash to shareholders in 2026 and $230b billion in 2027, which we expect will translate to P/E multiple expansion, similar to what happened to Apple in 2015," Evercore ISI ******* yst Mark Lipacis wrote in a note on Thursday.
Lipacis pointed out in the chart below that after five years of compression, Apple's price-to-earnings ratio began expanding with increases in its capital returns program.
#billion #lipacis #returned #cash
4 months ago
Credo Technology Group Holding Ltd (NASDAQ:CRDO) is one of the best performing AI stocks over the last 3 years, with a 3Y CAGR of 153%. On July 6, William Blair **** yst Sebastien Naji named Credo his top semiconductor pick for the next six months. That followed several constructive June calls. Evercore ISI **** yst Mark Lipacis initiated coverage on June 22 with an Outperform rating and a $325 target, describing Credo as an AI-connectivity leader moving from a mainly copper portfolio toward a combined copper-and-optical offering.
The same day, Stifel **** yst Tore Svanberg maintained a Buy rating and raised his target to $350 from $250 after management meetings, citing the company's vertically integrated, system-level approach across both technologies. Bank of America kept Buy on June 26. The common thread is that larger AI clusters require more high-speed, energy-efficient connections. Credo's active electrical cables, digital signal processors and optical products address that need. Risks include customer concentration, rapid interface transitions, and expectations that already **** ume substantial growth.
Credo Technology Group Holding Ltd (NASDAQ:CRDO) provides high-speed connectivity solutions, including active electrical cables, digital signal processors, retimers, SerDes chiplets, and optical components for hyperscale, cloud, and AI networks.
While we acknowledge the potential of CRDO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy.
The same day, Stifel **** yst Tore Svanberg maintained a Buy rating and raised his target to $350 from $250 after management meetings, citing the company's vertically integrated, system-level approach across both technologies. Bank of America kept Buy on June 26. The common thread is that larger AI clusters require more high-speed, energy-efficient connections. Credo's active electrical cables, digital signal processors and optical products address that need. Risks include customer concentration, rapid interface transitions, and expectations that already **** ume substantial growth.
Credo Technology Group Holding Ltd (NASDAQ:CRDO) provides high-speed connectivity solutions, including active electrical cables, digital signal processors, retimers, SerDes chiplets, and optical components for hyperscale, cloud, and AI networks.
While we acknowledge the potential of CRDO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy.
4 months ago
Credo Tech (NASDAQ:CRDO) is one of the 15 AI Stocks ****** ysts Are Watching: Microsoft, Nvidia, and More.
On June 22, Evercore ISI ****** yst Mark Lipacis initiates coverage on Credo Tech (NASDAQ:CRDO) with an Outperform rating and a $325 price target. ****** ysts at the firm believe that Credo could increasingly benefit from growth in optical connectivity.
Currently, it is mostly known for its copper-based AI connectivity products because it created the active electric cable, or AEC, interconnect standard and developed a reliable full system solution combing both whole cable and chips instead of just chips.
However, we believe it will be increasingly viewed as a broad copper + optical AI-connectivity play as it prosecutes its optical roadmap, which includes optical DSPs, Silicon Photonics ICs, microLED cables and most importantly its ZFOptics modules, where consistent with its AEC playbook, it is also taking a systems approach.
The firm believes that Credo's current total addressable market of roughly $5 billion to $10 billion could expand by 10 to 20 times due to its product roadmap. The firm models 100% and 60% growth for its AEC solutions during 2026 and 2027. Meanwhile, it believes that CRDO's optical portfolio could accelerate and contribute up to 25% of revenues in 2027.
On June 22, Evercore ISI ****** yst Mark Lipacis initiates coverage on Credo Tech (NASDAQ:CRDO) with an Outperform rating and a $325 price target. ****** ysts at the firm believe that Credo could increasingly benefit from growth in optical connectivity.
Currently, it is mostly known for its copper-based AI connectivity products because it created the active electric cable, or AEC, interconnect standard and developed a reliable full system solution combing both whole cable and chips instead of just chips.
However, we believe it will be increasingly viewed as a broad copper + optical AI-connectivity play as it prosecutes its optical roadmap, which includes optical DSPs, Silicon Photonics ICs, microLED cables and most importantly its ZFOptics modules, where consistent with its AEC playbook, it is also taking a systems approach.
The firm believes that Credo's current total addressable market of roughly $5 billion to $10 billion could expand by 10 to 20 times due to its product roadmap. The firm models 100% and 60% growth for its AEC solutions during 2026 and 2027. Meanwhile, it believes that CRDO's optical portfolio could accelerate and contribute up to 25% of revenues in 2027.
