Day: October 26, 2024

GM’s other options aren’t great, either. The company could eat the costs associated with higher tariffs, but that could significantly reduce its profit margin of around 6%. It could raise the prices of its vehicles. This alternative, though, could cause customers to hold off on buying new cars and trucks or push them to rivals with lower prices due to having less exposure to Mexico.

Which industries does UBS think will feel the brunt of Trump’s proposed tariffs nearly as much as retailers and automakers? Tech hardware and semiconductors. Intel (NASDAQ: INTC) could be among the most severely hurt semiconductor makers.

The company acknowledged the risks it faces from tariffs and protectionist trade policies in its 2023 annual report. Intel said that these measures “can increase our manufacturing costs, make our products less competitive, reduce demand for our products, limit our ability to sell to certain customers, limit our ability to procure components or raw materials, or impede or slow the movement of our goods across borders.”

Intel is already struggling. Its revenue fell 14% year over year in 2023. The company’s latest quarterly results were disappointing. It announced the suspension of its dividend along with major cost-cutting initiatives. It can ill afford additional headwinds.

Before you buy stock in General Motors, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and General Motors wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $860,447!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.

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*Stock Advisor returns as of October 21, 2024

Keith Speights has positions in Target. The Motley Fool has positions in and recommends Target and Walmart. The Motley Fool recommends General Motors and Intel and recommends the following options: long January 2025 $25 calls on General Motors and short November 2024 $24 calls on Intel. The Motley Fool has a disclosure policy.

Could These Stocks Be in Trouble If Trump Wins in November? was originally published by The Motley Fool

The additional 2% he is charging you besides the 2% AUM may be a sales charge, says certified financial planner Matt Bacon at Carmichael Hill & Associates. “It’s worth asking your current adviser more about their business model to really understand how they charge. Also, you can always move your money,” says Bacon. “That 26% return sounds like your account is probably invested aggressively so it may be worth consulting with someone else to make sure you have the right allocation as you enter retirement.”

In other words, your situation raises big red flags in that charging a 2% fee while also collecting commissions sounds like double dipping. “That’s not acceptable. Commissions can complicate investment decisions as they may create incentives that don’t align with your financial goals,” says Ryan Haiss at Flynn Zito Capital Management.

It’s understandable that you want to continue earning a good return, but it’s crucial to understand whether 26% was actually a good return because at this point, the S&P 500 has yielded more than 30% in a year, so perhaps you would have done better if you didn’t have to pay such high commissions, says Alonso Rodriguez Segarra, certified financial planner at Advise Financial. “A financial adviser and client relationship should be based on fiduciary criteria which means looking for the best for you and not for the adviser. When trust is broken, it’s always good to look for another option. Fortunately, any other good advisers should not be charging you more than 1% or as you say, a robo-adviser will charge you substantially less,” says Segarra.

Yes, another option is to roll the funds into a Vanguard or Fidelity account that you would manage yourself (note that in a rollover, most funds are accepted) but it doesn’t sound like you’re leaning towards a DIY route.

It depends on a few factors, including whether you want to talk to a human or not. “A robo-adviser could be good if you don’t want to do it yourself but don’t really need or want a person to talk to when things go wrong,” says Bacon. It can also save you money, as going the robo route is typically cheaper than going the human route, and tends to have no or low account minimums. This guide can help you decide between robo-adviser or human.

That said, if you want to talk through your investments with someone, a human adviser can be a great option. Even if you don’t want to go the AUM route, “you can hire a CFP who works on an hourly or project basis and is a fee-only adviser who doesn’t want to manage your portfolio and gives you a second opinion without conflicts of interest,” says Segarra. In addition to completing rigorous education requirements and thousands of hours of work-related experience, CFPs must uphold a fiduciary duty and put the best interests of their clients ahead of their own.

Also keep in mind that investing your money is only one of the many dimensions that financial planning covers. “You must add tax planning, estate planning, long-term care costs and many others as well,” says Segarra. To find a CFP who can give you a second opinion, Andrew J. Evans at Rossby Financial recommends getting a referral from a friend who is like-minded. “Or you can use some online tools to find another adviser. Willow is one of the adviser ranking and research tools that individual investors can use to find someone like-minded,” says Evans.

Ultimately, the choice is yours whether to work with a human or computer program. “In my experience, working person-to-person has advantages over working with a computer. Mainly, you will get answers to questions you have. The answers won’t be broad based, they will be answers to your specific circumstances,” says certified financial planner Mark Humphries at Sentinel Financial Planning.

Have an issue with your financial adviser or looking for a new one? Email picks@marketwatch.com.

Questions edited for brevity and clarity. By emailing your questions to The Advicer, you agree to have them published anonymously on MarketWatch; they may appear anonymously in other media and platforms.

Investors should expect the stock to be volatile, since the company has yet to report a profit. However, it has a potentially lucrative business model built on earning royalties from volume usage of the product, in addition to subscription revenue. Over time, it could also generate growing revenue from commissions earned when someone completes a transaction using SoundHound’s voice AI.

Management’s guidance calls for revenue to exceed $150 million in 2025 as SoundHound integrates the acquisition of Amelia. This represents an increase of 83% over expected 2024 revenue. The stock has risen 212% over the last year but could reach the Street’s price target in 2025 as SoundHound continues to report more robust growth and expand into new markets.

Urban air transportation could see incredible growth over the next few decades, particularly in the growing adoption of electric air taxi networks. Morgan Stanley has previously predicted the urban air mobility market to reach $29 billion by 2030 before surging to surpass $1 trillion by 2040.

As a leading manufacturer of electric vertical takeoff and landing aircraft, Archer Aviation (NYSE: ACHR) is well positioned to capitalize on this opportunity. Wall Street’s average price target is $9.06, implying upside of 196% over the current $3.01 share price.

Archer has plans with Southwest Airlines and United to launch air taxi networks in major cities. It also has a manufacturing deal in place with Stellantis, which will fund up to nearly $400 million for labor and other capital expenditures for the production of 650 aircraft annually.

With a $6 billion order book, Archer is having no trouble raising capital to fund operations until it receives final certifications from the Federal Aviation Administration (FAA) to launch its commercial service. The company ended the second quarter with $360 million in cash and equivalents.

Wall Street has kept its price target fairly consistent over the last few years. The only thing that has changed is Archer’s share price, which, after the recent sell-off, could be undervaluing the company’s long-term growth. The long-term return potential is massive for a company with a market cap of just $1 billion.

The stock is a great buy at these lower share prices. The FAA has already finalized the airworthiness of Archer’s Midnight aircraft, which sets the stage for the final stages of the certification process. Investors should buy the shares before news of the final FAA certification sends the stock higher.

Before you buy stock in SoundHound AI, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SoundHound AI wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $860,447!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.

See the 10 stocks »

*Stock Advisor returns as of October 21, 2024

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Ballard has positions in Archer Aviation, Nvidia, SoundHound AI, and Toast. The Motley Fool has positions in and recommends Alphabet, Amazon, Block, Nvidia, and Toast. The Motley Fool recommends Southwest Airlines and Stellantis. The Motley Fool has a disclosure policy.

2 Small-Cap Stocks With Far More Upside Than Any “Magnificent Seven” Stock, According to Wall Street was originally published by The Motley Fool

With its extensive nuclear infrastructure already in place and proven operational expertise, Constellation stands out as a natural partner for tech companies racing to secure reliable power sources for their AI operations. This unique market position, combined with growing demand from the tech sector, creates a compelling growth trajectory for the company and its shareholders.

Lightbridge (NASDAQ: LTBR) is revolutionizing nuclear fuel technology with its metallic fuel design. The company’s innovative approach could significantly improve the efficiency and safety of existing and future nuclear reactors.

This advanced fuel technology could prove particularly valuable as data centers drive unprecedented demand for reliable power. Lightbridge’s next-generation fuel design promises to increase power output in existing reactors while enhancing safety margins, making it an attractive solution for utilities serving tech companies’ growing energy needs.

The stock has surged alongside other nuclear technology companies as investors recognize the sector’s critical role in meeting the escalating power demands of AI data centers. While Lightbridge shares have significantly outperformed the S&P 500 this year, the company represents a unique approach to nuclear innovation through enhanced fuel efficiency that should keep its shares racing higher.

These three companies represent different aspects of the nuclear power renaissance, from Oklo’s innovative reactor designs to Lightbridge’s enhanced fuel technology and Constellation’s established infrastructure. Each stock offers investors a unique way to participate in nuclear power’s resurgence, making them worth considering as part of a well-diversified portfolio.

Before you buy stock in Oklo, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Oklo wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $860,447!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.

See the 10 stocks »

*Stock Advisor returns as of October 21, 2024

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. George Budwell has positions in Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, Constellation Energy, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

3 Nuclear Power Stocks That Could Power the Artificial Intelligence Revolution was originally published by The Motley Fool

Wall Street’s consensus estimate (according to Yahoo) suggests Nvidia will deliver $125.6 billion in total revenue for the whole of fiscal 2025, representing a 125% increase from fiscal 2024. The company is expected to follow that up with $179.2 billion in revenue in fiscal 2026.

The data center segment will be responsible for the majority of that growth. It accounted for 87% of Nvidia’s total revenue during the fiscal 2025 second quarter (which ended July 28), coming in at a record $26.3 billion — a whopping 154% increase from the year-ago period.

The incredible demand for Blackwell should drive more record results in the coming quarters. Microsoft is rumored to be one of the biggest buyers of the new GPUs. During its fiscal 2024 (which ended June 30), Microsoft spent a staggering $55.7 billion on capital expenditures, most of which went toward AI data center infrastructure and chips. The company has already stated that it will spend even more in fiscal 2025.

Amazon is also on track to spend over $60 billion on AI infrastructure in calendar 2024, and Meta Platforms has told investors it will spend up to $40 billion. Those numbers are likely to climb further in 2025.

Nvidia’s dominant market share in the data center GPU space has afforded it an incredible amount of pricing power, which is driving a surge in its profits. The company generated $54.9 billion in net income over the last four quarters, which translated to $2.21 in earnings per share (EPS).

Based on that EPS figure and Nvidia’s current stock price of $139.56, it trades at a price-to-earnings (P/E) ratio of 63.1. That isn’t cheap at face value — in fact, it’s almost double the 32.1 P/E ratio of the Nasdaq-100 technology index.

However, Wall Street expects Nvidia to generate $4.06 in EPS in fiscal 2026, placing its forward P/E ratio at 34.3. That might be far too cheap for two reasons.

First, Nvidia stock traded at an average P/E ratio of 58.2 for the last 10 years, and it was regularly above 50 even before the AI revolution gripped Wall Street.

Second, as fiscal 2026 progresses, analysts will start issuing their forecasts for fiscal 2027. If Nvidia appears likely to deliver incredible revenue and earnings growth yet again, investors might be willing to pay a much higher P/E ratio for its stock. In other words, 34.3 might be far too attractive to pass up.

So, if Wall Street’s EPS forecast for fiscal 2026 is accurate, and if Nvidia trades in line with its 10-year average P/E ratio, that implies that its stock could rise by 70% or more over the course of next year.

There is no other company in the trillion-dollar club that has anywhere near as much revenue or earnings growth forecasted for next year, which is why I think Nvidia is the obvious choice to outperform.

Huang believes data center operators will spend $1 trillion building AI infrastructure over the next five years, and if he’s right, Nvidia’s incredible run might have legs way beyond 2025.

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Amazon: if you invested $1,000 when we doubled down in 2010, you’d have $20,991!*

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Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

See 3 “Double Down” stocks »

*Stock Advisor returns as of October 21, 2024

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Prediction: This Will Be the Best-Performing Stock in the $1 Trillion Club in 2025 was originally published by The Motley Fool