NVIDIA’s (NASDAQ: NVDA) stock price is melting up and can extend the move to lofty levels. While little has been confirmed, easing trade tensions with China, reduced semiconductor restrictions on Arab nations, and improving economic conditions point to an improved outlook for sales and market sentiment. Up 50% from the April low to the mid-May highs, this undervalued stock could add another 25% to its share price by summer and continue trending higher as the year progresses.
The latest news is that NVIDIA will provide Saudi Arabia’s Humain with hundreds of thousands of its most advanced semiconductors. The deal is slated to run over five years and lead to nearly two gigawatts of data center capacity by 2030. The first will link 18,000 Grace Blackwell GPUs in a supercomputer for Saudi Arabia’s people and businesses. Humain was launched in preparation for the announcement and is owned by Saudi Arabia’s Public Investment Fund (PIF).
There Is a Catalyst for Higher Share Prices in NVIDIA’s Upcoming Guidance
NVIDIA is scheduled to report at the end of this month and will likely provide numerous market catalysts. These include potential for outperformance and improved guidance, which were expected to be strong before the Humain announcement and are now amplified by it. Reasons to expect strength include the latest funding news from Perplexity, an AI start-up backed by NVIDIA, which suggests AI spending remains robust. It is reportedly valued at $14 billion, a 55% increase in just under six months.
The impact on NVIDIA’s outlook is significant. Assuming the average cost of Grace Blackwell GPUs is around $65,000, it could cost upward of $3 million per rack and thousands of racks are needed just for the initial order. This scales to billions in additional revenue in F2025 and annually thereafter until 2030, assuming it can meet the increased demand.
The analysts’ trends for NVIDIA are bullish. Some price target reductions in April and early May provided a headwind that evaporated in the wake of the Saudi news. The likely outcome is that analysts will lift sentiment by increasing revenue, earnings, and stock price estimates, leading this market into a rebound that will move into the high-end range of targets.
That is sufficient for new all-time highs and a solid 50% upside from May trading levels.
As it is, the consensus reported by MarketBeat forecasts another solid double-digit increase, although growth will slow from last year’s 262% and last quarter’s 77% to about 65%. Other critical details will be the earnings and cash flow, expected to be impacted by export curbs on China, but now offset by Saudi Arabia.
The takeaway will be the nature of charges, which are expected to be mostly non-cash, and the balance sheet health. Details at the end of F2024 included a significant cash build, a net cash position, low leverage, and a rapidly improving outlook for increased capital returns.
Institutions Buy NVIDIA at Low Prices
The institutional activity in NVIDIA stock is telling, with them having bought on balance in Q4 2024, Q1 2025, and quarter-to-date in Q2. The net result is an increase in total holdings to about 65% of the stock and a solid support base for the market.
The technical action reflects their buying, the price correction bottoming at critical targets, and will likely continue to move higher ahead of the release. The Saudi news sent price action above the 30-day EMA, where bullish day- and short-term traders are in control. The critical resistance point is near $140 and will likely be tested if not exceeded by the late May reporting date.
The financial markets have been in turmoil for the past month, filled with uncertainty and volatility. President Trump’s recently rolled out trade tariffs made it hard for many businesses to project their new order schedules and potential demand cycles down the line, a natural reaction to the sudden shocks brought on by cost increases and supply chain complications.
However, as the United States and China agreed to come together for a new round of negotiations around these trade tariffs, China offered an act of goodwill to show its willingness to move past current complications and get both economies out of the standstill they were both finding themselves in. This act of goodwill came in the form of resuming new ordersin one particular export.
China placed an order for Boeing Co. (NYSE: BA) planes for the rest of 2025, after it had once threatened to ban any new Boeing planes from being imported into the country as a retaliation against the latest tariffs placed by President Trump.
However, this is all now out of the way to give the stock a new path forward as it prepares for takeoff in the coming months.
Price Action Leads the Way for Boeing Stock
Stocks in the industrial sector aren’t known for being too exciting or the ones to move the needle in an investor’s portfolio. However, Boeing makes an exception under today’s circumstances. Over the past month alone, Boeing stock has outperformed the broader S&P 500 by as much as 22% to show signs of preference by the markets.
This sort of price action typically is the first building block for a potentially bullish thesis to start playing out in the near future of any stock. What follows next is a bit of a deeper dive into what the rest of the market is expecting out of Boeing to justify or deny the thesis that this market is treading on Boeing stock.
Whenever markets are willing to pay up for any given stock, a typical reason can be placed on the underlying financial growth that can be had in the near future of the company, since it is future earnings per share (EPS) that tend to drive the annual performance in the stock under question.
Looking at these forecasts, Wall Street analysts expect Boeing to report a net profitable quarter by the first quarter of 2026. They specifically see just over $0.60 in EPS as a massive jump from today’s reported net loss of $1.39 per share, therefore justifying the sort of price action that investors witness today and then some.
The Markets Are Optimistic About Boeing
These forecasts explain why analysts at the UBS Group decided to reiterate their Buy ratings on Boeing stock as of May 2025. They also raised their valuation targets to as much as $226 per share, up from the previous $207 price target, amplifying the themes currently being developed for the company’s bullish future.
Even though the stock already trades at a 52-week high level, which might attract further momentum and value buyers to come into the scene and crowd the stock with more buying demand to drive prices higher, these recent valuation targets would imply as much upside as 14% from today’s prices, not to mention a new 52-week high price.
Some of these momentum and value buyers came from one of the most influential and powerful names on Wall Street. Allocators from the Vanguard Group decided to boost their stakes in Boeing stock by as much as 1.9% as of May 2025, netting their entire position to a high of $11.2 billion.
With this institution now owning as much as 8.7% of the entire Boeing company, investors can reasonably assume that the company’s future is filled with more upside potential left in the tank, even as it already trades at a high price for the year. However, as seasoned investors know, the market is always willing to overpay for the right stocks.
Economic Tailwinds Still Lie Ahead
Wall Street analysts are laying the foundation upon which Boeing stock can start to accelerate, given their bullish EPS projections. However, investors need to understand further what is driving these assumptions. As the United States and China have agreed to a 90-day pause on tariffs, economic activity will surely expand in the next phase.
Economic expansion typically involves more air travel, as business executives are called on to the scene for their respective companies. A newfound confidence level in the consumer sector may also push for more travel volumes for leisure purposes.
With this in mind, it isn’t only China but also all other major economies worldwide that will likely join in the new order demand wave for Boeing planes, as their aviation industries respond to new activity by feeding their fleets with the proper jet inventory.
Our analysts have identified five stocks with the potential to double in 2025. From a company poised to lead the crypto ETF market to an innovator in fuel cell technology for AI and data centers, these picks could be game-changers for your portfolio.
Internet retail gianteBay Inc. (NASDAQ: EBAY) has quietly delivered strong returns in 2025, even as many peers and broader indices have stumbled.
While the stock is up close to 12% year-to-date (YTD), easily outperforming its sector and the broader market, it remains under the radar for many investors.
Notably, it’s trading just 3% below a multi-month breakout level and its 52-week high. A breakout from here could potentially open the door to a test of its all-time high.
Is it time to gain exposure to eBay as it inches closer to this critical resistance level? Let’s take a closer look at what’s driving the move.
Strong Q1 Earnings Despite Economic Headwinds
eBay reported its first-quarter 2025 results on April 30, coming in ahead of expectations despite a challenging macroeconomic backdrop.
Revenue reached $2.58 billion, up 2% year-over-year, while non-GAAP earnings per share rose 10% to $1.38, beating consensus estimates. Gross Merchandise Volume (GMV) climbed nearly 2% to $18.8 billion, marking the fourth consecutive quarter of GMV growth.
The company also continued to return capital to shareholders, with $893 million in Q1 buybacks and dividends. Free cash flow surged 36% to $644 million, giving eBay continued flexibility to reinvest and reward shareholders.
Category-specific strength was a key highlight, especially in collectibles and fashion, which each saw over 6% GMV growth. On the innovation front, eBay rolled out several AI-powered tools to streamline the buying and selling experience, including its new “magical listing” tool and a fashion discovery platform.
Advertising revenue rose 13% to $442 million, and its expanded partnership with Klarna introduced “Buy Now, Pay Later” options, improving purchase flexibility for users.
Despite global tariff concerns, eBay noted that just 5% of its GMV is exposed to China-U.S. trade, and its global shipping programs and diverse seller base help mitigate regional risks.
Looking ahead, eBay guided for low single-digit GMV growth and high single-digit earnings per share growth for the full year, while committing to more than $2 billion in share repurchases in 2025. The company’s emphasis on enthusiast buyers, re-commerce, and operational efficiency is helping it carve out a defensible niche amid rising competition.
Compelling Valuation and Relative Strength
Alongside strong fundamentals and a 1.68% dividend yield, eBay’s valuation adds to its appeal. Despite the YTD rally, the stock trades at a forward P/E of just under 12, well within value territory, especially in the context of its earnings outlook and robust cash flow. eBay’s price-to-free-cash-flow ratio stands at 14.98.
Technically, momentum remains on eBay’s side. The stock consolidates above all major moving averages and shows clear relative strength versus the broader market. With just over 3% to go before testing its 52-week high, a breakout could draw further investor attention.
While the latest earnings report prompted several price target upgrades, the consensus rating remains a Hold, with a consensus price target implying roughly 2.5% downside from recent levels.
That said, institutional investors appear more bullish. Institutional ownership currently sits at 87% and has been trending higher.
Over the past year, institutional inflows totaled $3.9 billion versus $2.5 billion in outflows, a net positive of $1.4 billion, indicating that “smart money” continues to show confidence in the company’s long-term trajectory.
eBay: Undervalued, Steady, and Ready to Run
eBay may not have the flash of high-growth tech names, but its steady earnings, shareholder returns, AI innovation, and compelling valuation make it a stock worth watching. The stock could be surprised by the upside as it approaches a major technical breakout and continues to execute its strategic goals.
Investors looking for a value-oriented tech play with upside potential may want to consider this stock, especially if it breaks through its current resistance level.
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