Headwinds aside, the outlook for NVIDIA’s (NASDAQ: NVDA) growth and long-term profitability is undeniable.
AI is driving results; the company is expanding into new verticals and is forecasted to grow at a double-digit pace for at least the next ten years.
Thus, the Q1 2025 sell-off is an anomaly, a buying opportunity likely leading to higher prices later this year.
If the analysts’ consensus and data trends can be used as a guide, the stock is stunningly undervalued at $110 and on track for a minimum 50% upside this year.
Most Analysts Agree NVIDIA’s Sell-Off Is Overdone
The analyst data provided by MarketBeat includes some price target reductions and downgrades, but the bulk—more than 90% over the preceding 12 months—is bullish. It contains numerous price target revisions and upgrades that have the consensus reported by MarketBeat up by 107%, indicating a nearly 60% upside in early March, with the high-end range adding another $50 or 30% of upside.
Assuming the upcoming earnings reports align with trends, including revenue and guidance strength, the analysts’ trends will likely continue to lift sentiment support the market.
Recent updates are from Wedbush, Wells Fargo, and Bernstein. They all make note of headwinds and policy uncertainty impacting the stock price, highlighting the value opportunity and the long-term outlook for sustained business strength.
The upcoming GTC developers conference is a potential catalyst, including news on things like optics/photonics, quantum computing, the launch of new Blackwell designs, and the upcoming release of Rubin.
Wells Fargo analyst Aaron Rakers says the GTC conference can’t come soon enough, while Bernstein analysts called the year-to-date stock price stunning so early in the product cycle. They also highlighted a multiyear value relative to historical P/E multiples and the Philadelphia Semiconductor Index.
Institutional activity aligns with analysts’ sentiment trends, providing a strong tailwind for the NVDA market, not considering NVIDIA’s impact on the overall market. The institutions have bought NVDA on balance for three consecutive quarters after selling in Q2 2024 and ramped their activity in Q1.
This solid show of support indicates the group buying into the sell-off. Assuming this continues, the bottom for NVIDIA stock will likely appear on the charts soon and lead to a solid rebound later this year.
There Are Catalysts to Unlock NVIDIA’s Value
Aside from the GTC developer conference, NVIDIA’s most likely catalysts lie in the upcoming FQ1 2026 earnings report. The company is forecasted to grow revenue by 10% sequentially and 66% annually and will likely outperform the consensus despite the high bar set by analysts.
The catalyst will be in the margin of outperformance and business updates, including new deals, advances in semiconductor technology, and monetization of ongoing projects.
Regarding the valuation, NVIDIA’s price correction has realigned the market, bringing it down to roughly 24x the C2025 outlook. That is near the 21x paid for the average S&P 500 company, providing nearly no premium for the growth outlook. The company is forecasted to grow earnings at a high double-digit CAGR through 2035, putting its valuation below 9x by the middle of the next decade.
NVIDIA Nears Bottom; Has Room to Fall
NVIDIA is nearing its bottom but has room to fall. The stochastic indicator is one sign that the market bottom will be found soon, entering oversold territory, but MACD disagrees.
It converges with the recent lows, suggesting even lower prices may come. That could result in another decline, but strong technical support exists at the $100 level, so downside risk is limited.
Oracle’s (NYSE: ORCL) CQ1 2025 price correction is an opportunity for investors because the market is resetting its outlook and not reversing. The market reset is due to the timing of AI’s tremendous impact on Oracle.
Unlike NVIDIA (NASDAQ: NVDA), which claims most of the AI glory to date, Oracle’s success lies in the long-term application of AI.
Details from the Q3 report affirm the company’s emergence as a critical player in AI infrastructure, a game-changing event for business and technology investors. Oracle is still a small player in the data center world but a budding hyperscaler on track to produce the fastest data center growth of them all.
1. Oracle’s Tepid Q3 Results Reveal Increased AI Momentum
Oracle’s Q3 results were tepid relative to MarketBeat’s reported consensus but are still solid, provide value to investors, and internal data reveal Oracle’s increasingly critical position in the AI world. The revenue of $14.13 billion fell short by 180 basis points due to weakness in legacy businesses, but the weakness is offset by the 6.4% annual growth and strength in the segments that count.
Services and Systems Support, the bulk of the business, grew by 10%, while Cloud License and On-Premise contracted by 10%. Within the services segment, total cloud grew by 23%, with strength in both sub-segments. SaaS, the weaker segment, grew by 9% on double-digit gains in its core offerings, while IaaS grew by 49%.
2. Oracle Guides for Sustained Business Acceleration
The business highlights from Q3 and long-term guidance point to accelerating growth and a potentially cautious outlook. The highlights include $48 billion in new contracts, a 92% sequential increase in business from the major hyperscalers, a 62% increase in the backlog to $130 billion, and a forecast for revenue to growth to accelerate to 15% in F2026 and then 20% in F2027.
3. Oracle’s New Product Makes It the Only Place to Train AI Models
Oracle unveiled an innovative new product it calls the Oracle AI Data Platform. It directly links leading AI models, including ChapGPT, Grok, and LLAM, to Oracle’s 23ai database. The service facilitates the training of AI models using private or public data with advanced vectorizing tools.
Vector-based search is vital to AI because it allows machines to analyze complex data sets and order the information numerically in vectors. Vectorizing facilitates similarity searches and, ultimately, comprehension, which is the key to unlocking AI’s full potential.
4. Oracle’s AI Empire Generates Robust Cash Flow
Oracle is spending plenty on AI but insufficient to negatively impact the balance sheet, given the earnings leverage AI provides.
Balance sheet highlights from Q3 include increased cash, current, and total assets partially offset by increased liability.
The net result is a near-doubling of shareholder equity to $17.2 billion and a drastic reduction in debt leverage.
Leverage is still elevated at 5x, but it is manageable and a significant improvement from the 8x reported at the start of the fiscal year.
The bottom line is that cash flow and dividends are safe, including the 25% increase authorized by the board.
The new payment is worth $2.00 annually, with a yield of about 1.3%. The stock is at $145 and still only 35% of the earnings forecast.
5. Oracle’s Analyst and Institutional Support Is Strong
Oracle’s analysts reset their price targets following the FQ3 release but not their sentiment ratings. The stock is pegged at a Moderate Buy with a bullish bias and comes with a forecast for a 20% upside. The price target reductions are a concern but do little to alter the outlook, with most indicating a consensus or higher price point by year’s end.
Regarding the institutions, their buying activity ramped to a multiyear high in Q1. Buying activity outpacing selling by roughly $4.5 billion or about 1% of the stock, providing strong support for the market.
Dylan Jovine predicted the 2008 crash over a year before it happened. Folks who listened to him had the chance to walk away with gains as high as 235%, 459%, and 700% – all while the stock market got cut in half. Could he be right again?
As relentless selling pressure grips U.S. markets and fear mounts, the benchmark SPY ETF has tumbled 4.35% year-to-date as of Monday’s close, now down nearly 9% from its 52-week high. The technology sector has spearheaded the decline, with the QQQ ETF shedding 7.5% YTD and almost 13% from its peak, leaving investors scrambling for returns beyond the usual suspects.
While dividend-yielding stocks, consumer staples, and gold offer defensive appeal, foreign markets quietly steal the spotlight. Year-to-date, China, emerging markets, and European markets have significantly outperformed their U.S. counterparts. How can investors seeking diversification and exposure to these dynamic regions navigate this shift? Here are three popular ETFs to gain exposure to those regions.
3 ETFs to Gain Exposure to Outperforming Foreign Markets
China Continues to Wow Investors in 2025
China has been one of the best-performing markets this year and has gained immense popularity among large investors and institutions. The iShares China Large-Cap ETF (NYSEARCA: FXI) has significantly outperformed its U.S. counterparts and has surged over 18% year to date.
This comes after Chinese stocks and the broader market staged a robust recovery in 2025, driven primarily by aggressive government intervention and a shift in economic policy.
Following years of underperformance due to a property crisis, weak consumer demand, and geopolitical tensions, Beijing rolled out a comprehensive stimulus package in late 2024, including interest rate cuts, a large stock market stabilization fund, and targeted fiscal measures to boost domestic consumption.
This policy pivot, signaled by a moderately loose monetary stance and a focus on revitalizing the equity market as a wealth-building avenue, has restored investor confidence, breaking a cycle of low sentiment and sluggish investment. Coupled with stabilizing earnings, historically low valuations (with forward P/E ratios well below long-term averages), and signs of a property sector bottoming out, these efforts have fueled a rally, positioning Chinese equities to outperform many global peers year-to-date.
The iShares ETF, FXI, seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the FTSE China 25 Index. Several of its top holdings include many household names, even in America, such as Alibaba, Tencent Holdings, JD.com, and BYD.
It tracks the price and yield performance of publicly traded equities across global emerging markets, and its strength isn’t shocking, given Asia’s dominance lately.
The fund has heavy exposure to the region, with 18% in Taiwan, over 10% in Chinese stocks, and 9% in South Korea. Beyond that, it also has 16% exposure in India, 3.5% in Brazil, and 2.8% in South Africa, which are its other big geographic bets.
Top holdings are Taiwan Semiconductor Manufacturing Company, Tencent Holdings, Alibaba, and Samsung Electronics lead the pack.
The fund has $16 billion in AUM, a 2.35% dividend yield, and a 0.7% expense ratio. Notably, while it may be outperforming the U.S. market year-to-date, a broader view shows it remains range-bound, with $45 serving as the near-term ceiling. A breakout there could spark some further momentum to the upside.
European Equities Trade Near Record Highs
European stocks are crushing it so far in 2025, and the iShares Europe ETF (NYSEARCA: IEV) is proof. It hit a fresh all-time high last Friday before easing off on Monday.
Tracking the S&P Europe 350, this ETF is up over 13% YTD and sits just 2.7% below its peak as of Monday’s close.
With a market cap of $1.76 billion and $1.49 billion in AUM, it delivers a 2.34% dividend yield and a 0.67% expense ratio. Exposure-wise, it’s loaded with 21.5% in the UK, 16% in France, 14% in Germany, and 15% in Switzerland, its top four territories.
$2 trillion has disappeared from the US government’s books.
The reason why is a new, secretive move being carried out by the Fed that has nothing to do with lowering or raising interest rates… but could soon have an enormous impact on your wealth.
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