Year: 2024

• Nvidia’s stock rally has another 12-18 months left to go, according to S&P Global’s Andrew Chang.

• The stock has at least another year of “strong runaway” amid big demand for its chips, Chang said.

• He aired concerns over AI investment pulling back in future quarters, which could impact shares.

Nvidia stock has a lot more room to climb — and shares of the market’s most popular chip maker are bound to soar for at least another year, according to Andrew Chang, a technology director at S&P Global Ratings.

The banking veteran pointed to recent comments from Jensen Huang, who sparked a sharp rally in NVDA shares this week after speaking at a Goldman Sachs conference in San Francisco. The Nvidia CEO issued more guidance on consumer demand and, in particular, demand for Blackwell, the company’s next-gen GPU.

His comments bolster predictions of continued upside for Nvidia, Chang said in an interview with Schwab Network on Friday.

“It just confirms our view that we have strong runway for at least the next 12 months,” Chang said.

Nvidia’s partners are also showing signs of strong chip demand. Oracle, which has an ongoing partnership with Nvidia, bumped up its revenue forecasts after beating earnings for the first quarter. The software firm also doubled its planned capital expenditures for the fiscal year — which are all bullish signs for Nvidia.

“All of these are great data points that, at least for the next 12 to 18 months, things look great,” Chang said of the Jensen Huang-led firm.

Still, he acknowledged some concerns investors have been airing. Some have floated worries that Nvidia’s growth is unsustainable, given the stock’s monster 2,514% gain over the last five years.

Some analysts have warned demand for Nvidia’s chips may not hold strong in the coming years, as the firm’s largest customers could eventually turn into competitors. Apple and Microsoft, two huge customers of Nvidia’s GPUs, are reportedly working on their own AI chips.

“Ultimately, if Oracle, if Microsoft, if Amazon don’t see the ROI that they expect, they’re going to cut orders. So hyperscale, demand volatility is something that really concerns us,” Chang said. “But, you know, these data center players have been known to order a bunch and then pause for several quarters. That’s what we’re looking out for.”

Investors will also need to be on the lookout for tighter regulation of AI. Nvidia was recently targeted by the Department of Justice in a fresh antitrust probe, Bloomberg reported, and it’s just a “matter of time” before other countries follow suit and try to regulate the technology, Chang said.

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Nvidia stock sold off in the weeks following its earnings report at the end of August, but the stock staged a fresh rally this week alongside other tech stalwarts including Oracle and Super Micro Computer.

Wall Street remains generally bullish on Nvidia. According to Nasdaq data, analysts have issued an average price target of $153 a share, implying a 29% upside from current levels.

Read the original article on Business Insider

Investing in biotech companies, especially relatively small ones, can be a double-edged sword. Their shares often soar on strong clinical trial or regulatory news, but they can lose much of their value overnight if a study’s results don’t go their way. That makes many biotech stocks somewhat risky investments, but some could deliver excellent results for those who can stomach the risk.

Two biotech companies whose shares could gain significant traction in the months and years ahead are Viking Therapeutics (NASDAQ: VKTX) and Sarepta Therapeutics (NASDAQ: SRPT).

1. Viking Therapeutics

Viking Therapeutics is a clinical-stage biotech whose stock rose significantly this year. The drugmaker owes that run-up to its leading candidate, VK2735, a potential GLP-1 weight loss therapy that produced strong results in a phase 2 study. At least two scenarios could lead to Viking’s shares soaring even more in the coming months and years.

The first scenario involves Viking Therapeutics advancing VK2735 to late-stage studies and the medicine proving safe and effective. The biotech could then get a foothold in the fast-growing weight loss market. It’s hard to come up with accurate estimates years before a drug might hit the market, but William Blair analyst Andy Hsieh has projected that VK2735 could generate about $21.6 billion in annual sales at its peak. If this prediction is anywhere close to the truth, Viking’s shares could maintain their momentum for a while. The stock could also skyrocket if the company becomes an acquisition target.

Many prominent drugmakers are racing to join the lucrative market for effective new weight loss treatments. Yet few have produced the kinds of clinical trial results this mid-cap company has. Buying out Viking Therapeutics would be a quick way for one of them to acquire a promising pipeline candidate in this niche and the team that developed it.

Viking is also working on an oral version of VK2735. And elsewhere in its pipeline, a phase 2 clinical trial of VK2809 produced positive results as a potential therapy for metabolic dysfunction-associated steatohepatitis (MASH), another condition with a high unmet need. The Food and Drug Administration (FDA) approved the first MASH therapy earlier this year, but there is room in the marketplace for more.

If Viking Therapeutics can make steady progress with its leading candidates, the stock could produce further outsized returns. However, this biotech stock is somewhat risky: If VK2735’s clinical results fail to impress, its share price could fall off a cliff. Invest accordingly.

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2. Sarepta Therapeutics

Sarepta Therapeutics specializes in developing medicines for Duchenne muscular dystrophy, a rare, pediatric, progressive neuromuscular disorder.

The company’s most important product is Elevidys, a gene therapy for Duchenne muscular dystrophy. Elevidys recently earned traditional FDA approval for ambulatory patients and accelerated approval for non-ambulatory patients. This means that Sarepta Therapeutics will have to prove its efficacy in non-ambulatory patients in a post-marketing study to get the full blessing of regulators.

So far, Elevidys is performing well and helping Sarepta deliver strong results. In the second quarter, its total revenue increased by 39% year over year to $362.9 million. Earnings per share of $0.07 were much better than its loss per share of $0.27 in the prior-year period. The company’s shares have performed better than the broader market so far in 2024, but things could get even better if it does earn full approval for Elevidys for non-ambulatory Duchenne muscular dystrophy patients. Elevidys is already contributing significantly to strong financial results.

But this regulatory win could improve things. It’s also worth noting that Sarepta is looking to diversify its lineup. All four of its approved therapies treat Duchenne muscular dystrophy, but in January it started a phase 3 study for a potential therapy for Limb-Girdle muscular dystrophy. Overall, Sarepta Therapeutics has more than 40 candidates for conditions across the rare disease spectrum — not bad for a biotech worth just under $13 billion.

The company’s shares could deliver above-average returns if it keeps developing innovative therapies for diseases with high unmet needs.

Should you invest $1,000 in Viking Therapeutics right now?

Before you buy stock in Viking Therapeutics, consider this:

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*Stock Advisor returns as of September 9, 2024

Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

These 2 Biotech Stocks Are Set to Soar was originally published by The Motley Fool

JPMorgan Chase CEO has laid out the “worst outcome” for America’s economic future, beyond recession.

“The worst outcome is stagflation,” said Dimon. “And by the way, I wouldn’t take it off the table.”

68-year-old Jamie Dimon made his remarks on Tuesday at the Council of Institutional Investors in New York.

INFLATION RISES 2.5% IN AUGUST, LESS THAN EXPECTED

JPMorgan Chase is the largest bank in the United States according to Bankrate, with $3.4T in assets.

Stagflation, a portmanteau of stagnation and inflation, refers to a state where economic growth slows while inflation and unemployment rise.

The economic consequences of stagflation may cause retirement savings to go down as well as the stock market to crash; it was last seen in the U.S. during the 1970s, according to Investopedia.

While inflation in August grew less than expected at 2.5%, the outlook for the federal debt is bleak, with the growing number measuring $35,309,184,612,870.00 as of September 12.

CONSUMERS SEE INFLATION EASING, ANXIOUS ABOUT JOB MARKET, PERSONAL DEBT: NY FED SURVEY

Interest payments due in October on the national debt now exceed the costs of both Medicare and the national defense budget. National debt may contribute to further inflation on the horizon.

This is the first time in American history that interest payments on the national debt have risen above $1T. 

“So, it’s hard to look at [it] and say, ‘Well, no, we’re out of the woods.’ I don’t think so,” said Dimon.

JPMorgan shares have gained over 18% this year, inline with the S&P 500’s rise.

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Original article source: CEO of JPMorgan warns US of economic fate worse than recession: ‘The worst outcome’

If you’re in the market for dividend income, good for you! It’s hard to beat the power of dividend investing. Not only do you get a regular stock that will, ideally, grow in value over time, but it will also regularly plunk extra dollars into your investment account.

If you’re retired, that retirement income can come in very handy — without requiring you to shave off any shares. If you’re a pre-retiree, you might just reinvest those dividends into more shares of stock. Better still, healthy and growing dividend-paying companies will generally increase their payouts over time.

It’s reasonable to wonder whether Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) would be a good dividend-paying stock for you. It’s certainly a terrific stock to own. It specializes in insurance, energy, and transportation, and encompasses many businesses owned outright (such as GEICO, Benjamin Moore, Dairy Queen, McLane, and the entire BNSF railroad), along with sizable chunks of other companies (such as Apple, American Express, Coca-Cola, and Bank of America).

Here’s the catch, though: Berkshire doesn’t pay a dividend!

Buffett does love dividends, though. Thanks to the shares of stock owned by Berkshire, the company collects more than $5 billion in dividend income annually. So why no dividends from the company? Well, remember that when a company earns income, it can do many things with it. It might use that money to fuel growth — and that’s why many young, faster-growing companies opt not to pay dividends. It might alternatively pay down debts, acquire other companies, buy investments, or repurchase shares. Buffett does like to repurchase shares when they seem undervalued to him, and he’s famous for buying other businesses when he finds ones he likes available at a great or good price.

Buffett has explained that, essentially, when Berkshire has more cash than can be deployed in useful ways, it might initiate a dividend. But that might not happen for a long time. For now, the company was recently sitting on about $277 billion in cash!

Should you invest $1,000 in Berkshire Hathaway right now?

Before you buy stock in Berkshire Hathaway, 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 Berkshire Hathaway 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 $716,375!*

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*.

Story continues

See the 10 stocks »

*Stock Advisor returns as of September 9, 2024

Bank of America is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. Selena Maranjian has positions in American Express, Apple, Bank of America, and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool has a disclosure policy.

What Is the Dividend Payout for Berkshire Hathaway? was originally published by The Motley Fool

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.

Many investors dream of passive income. Not relying only on a paycheck can free you up to pursue your dreams, get you closer to retirement, or provide a solid safety cushion for potential times of trouble.

Dividend investing can be a way to build a nest egg and let your money work for you. Getting to $1,000 in monthly income means you would have to generate $12,000 in dividends annually. To do that, you must have stocks meeting a few criteria. They have to provide a consistent and stable dividend payment. Some high-yield stocks can be tempting, but peering at the dividend history may reveal dividend cuts or pauses. The company’s health, the sector it is in, and the strength of the balance sheet all help determine which stocks can go the distance.

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Can you generate $1,000 in monthly income using just four dividend-paying stocks? This portfolio would aim for yield and reliability, focusing on industry diversification. Assuming an average dividend yield across four stocks is around 4%, the total investment needed would be around $300,000 to generate $12,000 annually at a 4% yield.

Choosing The Right Stocks

A mix of stocks from different sectors can balance risk while targeting high and stable dividend yields. These might include:

1. Altria Group, Inc. (NYSE:MO)

• Sector: Consumer Staples (Tobacco)

• Dividend Yield: 7.6%

• Why: Altria has a long history of paying high dividends despite operating in a declining industry. Its high yield helps meet income goals faster.

• Watch For: Revenue for the company’s smokeable products declined by 5.6% in the second quarter of 2024. The company is transitioning toward more smoke-free offerings. Investors will want to keep tabs on the company’s progress in that area. “We’re confident in the long-term outlook for our smoke-free portfolio, and we have a significant opportunity to responsibly lead the transition of adult smokers to a smoke-free future,” said Billy Gifford, Altria’s CEO, during the second-quarter earnings call.

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2. AT&T Inc. (NYSE:T)

• Sector: Telecommunications

• Dividend Yield: 5.29%

• Why: While AT&T has faced challenges, it maintains a strong dividend. It operates in a cash flow-heavy industry, which supports stable dividends over time.

• Watch For: As one analyst said, AT&T needs to manage “growth and profitability.” That means expanding the mobility business and preparing for the broadband future. “This story is about growing customers and profitability as our consumer wireline business delivered more than 7% EBITDA growth during the second quarter. This was driven by approximately 18% growth in fiber revenues and improved operating leverage as we transition from legacy networks to advanced broadband infrastructure,” said AT&T CEO John Stankey on the second-quarter earnings call.

3. Realty Income Corporation (NYSE:O)

• Sector: Real Estate (REIT)

• Dividend Yield: 5.06%

• Why: Realty Income is a REIT known for paying monthly dividends, offering stability and regular income. It’s a strong choice for consistent cash flow.

• Watch For: Investors will want to track how Realty Income handles debt. In August, it announced a $500 million public offering of 5.375% senior unsecured notes due 2054, with an effective yield of 5.486%. The company has also signaled it may be quicker to sell some properties. “As we continue to calibrate and hone our predictive analytic tools, advancing our investment pieces on each property in our portfolio, we may be more active on dispositions than in the past,” said Realty Income CEO Sumit Roy on the second-quarter earnings call.

4. Johnson & Johnson (NYSE:JNJ)

• Sector: Healthcare

• Dividend Yield: 3.02%

• Why: Though it has a lower yield than the others, J&J is highly stable and has a strong record of dividend growth, making it a good defensive stock.

• Watch For: Johnson & Johnson is deepening its exposure to medtech through strategic acquisitions. Last month, it announced paying $1.7 billion for V-Wave, a medical device company focused on cardiovascular issues. “We continue to advance our pipeline, launch new commercial products, and integrate strategic acquisitions that broaden and further differentiate our portfolio,” said Joseph Wolk, the company’s Chief Financial Officer, on the most recent earnings call.

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Adjusting The Allocation

Given the different yields, we would allocate more capital to lower-yielding but more stable stocks like Johnson & Johnson and Realty Income. Higher-yielding stocks like Altria and AT&T could require less capital. The combined yield of these four stocks is 5.2%, meaning it could take less than $300,000 to reach that $12,000 yearly goal.

These are just assumptions, and investors will want to remember that high-yield stocks like Altria and AT&T come with more risk, while J&J provides stability but a lower yield. Each stock’s dividend payout ratio and financial health must be monitored to ensure sustainable dividends. Although this portfolio is diversified across sectors, it’s still important to review it regularly. Diversifying into other stocks, bonds, and real estate can provide additional income and safety against broader downturns.

Another Way To Build Wealth

The current high-interest-rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through dividend stocks… Certain private market real estate investments are giving retail investors the opportunity to capitalize on these high-yield opportunities and Benzinga has identified some of the most attractive options for you to consider.

For instance, the Ascent Income Fund from EquityMultiple targets stable income from senior commercial real estate debt positions and has a historical distribution yield of 12.1% backed by real assets. With payment priority and flexible liquidity options, the Ascent Income Fund is a cornerstone investment vehicle for income-focused investors. First-time investors with EquityMultiple can now invest in the Ascent Income Fund with a reduced minimum of just $5,000. Benzinga Readers: Earn a 1% return boost on your first EquityMultiple investment when you sign up here (accredited investors only).

Don’t miss out on this opportunity to take advantage of high-yield investments while rates are high. Check out Benzinga’s favorite high-yield offerings.

This article How Much Would It Take To Earn $1,000 A Month In Dividends With Just Four Stocks? originally appeared on Benzinga.com