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Nvidia’s Growth Prospects in China
Nvidia (NASDAQ: NVDA) is projected to boost its Q2 growth from 50% to 77% year-over-year if it secures a U.S. export license for its H20 chips to China. The company anticipates $8 billion in H20 sales, which could significantly affect its Q3 and Q4 guidance. Recently, Nvidia’s stock has risen around 30% this year, reinforcing its status as the world’s largest company.
Alphabet and Adobe Valuations
Alphabet (NASDAQ: GOOG, GOOGL) and Adobe (NASDAQ: ADBE) are currently trading well below the broader market valuations, despite strong performance histories. The S&P 500 is at 23.7 times forward earnings, while both companies are seen as undervalued due to concerns over generative AI disrupting their businesses. Their current pricing presents a potential buying opportunity as they continue to show solid growth.
Amazon’s Profit from Cloud Computing
Amazon’s (NASDAQ: AMZN) profitability largely hinges on its cloud computing division, Amazon Web Services (AWS), which accounted for 63% of the company’s operating profits in Q1 despite representing only 19% of its revenue. AWS grew by 17% in Q1, indicating strong potential for continued growth, which is expected to drive Amazon’s profitability higher throughout the year.
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