This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

In April, I highlighted Nvidia (NASDAQ: NVDA) as one of two tech stocks that looked surprisingly cheap when it was trading for around $100 per share.

A few months later, the stock trades at $173, making the chip supplier the most valuable publicly traded company in the world, with a market capitalization topping $4.2 trillion. With shares near all-time highs, let's take a closer look at Nvidia's most recent earnings, what management is saying about the future, and whether the stock still looks like a buy today.

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Nvidia's growth continues to impress, even with geopolitical challenges

Nvidia's meteoric rise was made possible with unprecedented growth, which was exemplified by Nvidia's fiscal Q1 2026 results. The company generated $44.1 billion in revenue, up 69% year over year and 12% quarter over quarter. The highlight was its data center segment, which produced $39.1 billion alone, fueled by continued demand from cloud providers, government agencies, and enterprises building out artificial intelligence (AI) infrastructure.

As for its bottom line, Nvidia posted $18.8 billion in net income for the quarter, up 26% from the prior year but down 15% from the preceding quarter. The decline was primarily due to a $4.5 billion inventory charge related to U.S. export restrictions on its H20 chips, which were designed specifically for the Chinese market. In April, the U.S. government imposed new rules requiring Nvidia to obtain a license to sell these chips to China, a key growth market now effectively out of reach. As a result, the company was forced to write down excess inventory and purchase commitments tied to the H20 line.

CEO Jensen Huang was blunt on the earnings call: "The $50 billion China market is effectively closed to U.S. industry," he said. "Shielding Chinese chipmakers from U.S. competition only strengthens them abroad and weakens America's position."

More recently, however, Nvidia revealed that it's actively seeking approval to resume H20 sales in China. The company noted that U.S. officials committed to issuing the necessary licenses, with shipments expected to begin shortly. As part of the arrangement, Huang reiterated Nvidia's plans to boost U.S.-based investment, including job creation, bolstering domestic AI infrastructure and expanding manufacturing operations.

For now, Huang and Nvidia appear to be navigating the geopolitical turbulence with minimal long-term damage. Following the update, shares rose 4%, suggesting investors are optimistic that the worst may be in the past.

And looking ahead, Nvidia previously guided for $45 billion in revenue for the second quarter, with an $8 billion shortfall tied to export limitations. Those results may fare even better now that those limitations have been lifted, albeit late in its fiscal second quarter.

Nvidia's strong balance sheet gives management flexibility

In its most recent quarter, Nvidia reported a formidable $53.7 billion in cash and marketable securities, a 71% increase from $31.4 billion the year prior. That cash generated $515 million in interest income during the quarter, more than double the $244 million paid out in dividends.

With a dividend yield of just 0.02%, Nvidia's management clearly favors share repurchases as its primary method of returning capital to shareholders. In the first quarter of its fiscal year, the company bought back $14.1 billion worth of stock, up from $7.7 billion a year earlier. While that figure is modest relative to Nvidia's $4.2 trillion market cap, it still signals management's confidence in the company's long-term value, even after its extraordinary stock surge. Moreover, share repurchases enhance the value of existing holdings by shrinking the total share count, which Nvidia trimmed by 2% over the past three years.

NVDA Shares Outstanding data by YCharts

Is Nvidia still a buy?

Nvidia's stock is no longer the bargain it was a few months ago, with a valuation of nearly 40 times forward earnings.

But valuation alone doesn't tell the whole story. Nvidia is the undisputed leader in AI computing, a position becoming more entrenched with each product cycle. For a glimpse at how much companies are spending on AI, look no further than tech giants Amazon, Apple, Meta Platforms, and Microsoft, which are expected to spend at least $320 billion on technology in 2025, including data centers, up from $230 billion in 2024.

NVDA PE Ratio (Forward) data by YCharts

Huang underscored Nvidia's growing leadership in AI computing, calling this era "the next industrial revolution." The company continues to push the boundaries of innovation, most recently with the launch of its Blackwell NVL72 AI supercomputer, a "thinking machine" built for advanced reasoning, which is now in full-scale production.

Without question, Nvidia has positioned itself at the forefront of this revolution; however, with its stock surging in recent months, some investors might opt for a pullback before entering. For long-term investors, a more gradual approach, such as dollar-cost averaging, may offer a prudent strategy for gaining exposure to one of the most influential companies driving the future of technology.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Is Nvidia stock a buy now? appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, 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. Collin Brantmeyer has positions in Amazon, Apple, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Nvidia (NASDAQ: NVDA) just delivered another record-breaking quarter, sending its stock up 5% and tying Microsoft as the most valuable publicly traded company by market capitalization, at the time of this writing. Despite the strong results, questions linger as the company faces mounting geopolitical pressure and tariff uncertainty. Let's break down the chipmaker's latest performance and explore what the current challenges mean for long-term investors to determine whether Nvidia is a buy, hold, or sell.

Here are the results from Nvidia's latest blowout quarter

For the first quarter of fiscal 2026, Nvidia reported $44.1 billion in revenue, representing a 69% year-over-year increase and a 12% increase from its previous quarter, fiscal Q4 2025. Nvidia's net income totaled $18.8 billion, a 26% increase year over year, despite the company incurring a $4.5 billion charge related to new U.S. export restrictions.

As for highlights, the company's data center revenue surged to $39.1 billion in the quarter, representing a 73% increase from the prior year. Management also announced that it will be building factories in the U.S. in partnership with others to produce artificial intelligence (AI) supercomputers, which may alleviate some tariff concerns.

Additionally, Nvidia continued to return capital to shareholders, with a modest quarterly dividend of $0.01 per share, and repurchased $14.1 billion worth of shares during the quarter. Notably, the management has spent $40 billion over the past 12 months on share buybacks, decreasing its share count by just 0.8% due to the company's massive $3.4 trillion market capitalization.

Tariff twists and turns

While Nvidia continues to break records, it encountered the aforementioned geopolitical hiccup during the quarter. On April 9, the U.S. government abruptly required Nvidia to secure a license before shipping H20 chips to China. The problem? H2O was already deeply embedded in the company's go-to-market strategy and had generated $4.6 billion in revenue during the quarter. Nvidia was left holding the bag on $4.5 billion worth of unsellable inventory and was unable to ship an additional $2.5 billion in orders before the restrictions took effect.

The China market, once seen as a dependable pillar of growth, now represents a major wildcard for Nvidia. With U.S. firms locked out, Nvidia warned that losing access to this near-$50 billion AI accelerator market would materially benefit foreign competitors.

Just after Nvidia released its fiscal Q1 earnings, another twist emerged: A federal court blocked President Donald Trump from using emergency powers to impose broad tariffs. While the decision, which the Trump administration intends to appeal, may ease trade tensions for now, it highlights how quickly trade policy can shift and put the brakes on Nvidia's unparalleled growth.

Nvidia's Blackwell is its next growth driver

Despite the company's geopolitical headaches, Nvidia continues to innovate. Its Blackwell chips -- designed for massive-scale AI workloads -- are the company's next big breakthrough, according to CEO Jensen Huang. To support its growth, the company launched Blackwell Ultra and Nvidia Dynamo during its latest quarter, designed to power the next generation of reasoning AI models. Huang said:

Global demand for Nvidia's AI infrastructure is incredibly strong. AI inference token generation has surged tenfold in just one year, and as AI agents become mainstream, the demand for AI computing will accelerate. Countries around the world are recognizing AI as essential infrastructure -- just like electricity and the internet -- and Nvidia stands at the center of this profound transformation.

To support the development of its Blackwell product, Nvidia announced in April that it will build and test these chips in Arizona and its AI supercomputers in Texas. Given the company's tariff concerns, it's an unlikely coincidence that management chose the U.S. as the location for manufacturing its newest product.

Looking ahead, management projects $45 billion in revenue for its next quarter, plus or minus 2%. Notably, that outlook includes an $8 billion hit from ongoing H20 restrictions, which will continue to impact gross margins. When excluding the projected $8 billion loss, management believes it will achieve a range of "mid-70%" gross margins later in its fiscal 2026, which would be in line with its 75% gross margin for its previous fiscal year.

Is Nvidia a buy, sell, or hold?

Given Nvidia stock's meteoric rise, it still trades at a steep 45 times trailing earnings. Yet the company has largely grown into that premium, with a three-year median price-to-earnings ratio of around 63.

As a clear leader in the fast-moving world of artificial intelligence, Nvidia continues to break new ground, most recently with its next-generation Blackwell chips and AI supercomputers. For growth-focused investors seeking exposure to transformative AI technology, Nvidia remains a compelling long-term investment, even amid geopolitical risks and an elevated valuation multiple.

 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Is Nvidia a Buy? appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Why now could be the time to buy these popular ASX ETFs
• Why are ASX 200 tech stocks like WiseTech and Life360 going gangbusters on Wednesday?
• Nvidia CEO reveals massive US$1 trillion AI chip opportunity

Collin Brantmeyer has positions in Microsoft and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Microsoft and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Microsoft and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Amazon (NASDAQ: AMZN) has changed a lot since its founding in 1994, going from an online bookstore to a market leader in e-commerce, cloud computing, and advertising.

Due to its incredible growth, the company has split its stock four times to make its shares more affordable to retail investors. Let's examine Amazon's stock-split history and whether the stock is a buy, sell, or hold.

Amazon's stock-split history

Since its initial public offering (IPO) in 1997, Amazon has split its stock four times, with the most recent one being a 20-for-1 split in 2022. So if you purchased one share of Amazon from its IPO and held, you would own 240 shares in 2025.

A stock split does not change your proportionate ownership of the company but rather increases the number of a company's outstanding shares while maintaining its market capitalization. So, to demonstrate Amazon's success, consider that if you held on to one share of Amazon at its IPO, your investment would be worth over $48,000, delivering over a 200,000% return.

Data source: Amazon. Chart by author

Is Amazon a buy before another potential stock split?

For long-term investors, the real lesson isn't how many shares you own -- it's picking great companies and holding on long term. If Amazon continues to innovate and expand, shareholders should benefit, no matter how many times the stock splits along the way.

The tech giant has had a compound annual revenue growth rate of 11% over the past three years. With its reported $100 billion investment in artificial intelligence for 2025, it may already have found its next growth driver.

Until Amazon shows it can no longer innovate, the stock remains a buy, especially when considering the stock trades near a three-year low valuation as shown below.

AMZN PE Ratio data by YCharts

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post If you bought 1 share of Amazon at its IPO, here's how many shares you would own now appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Collin Brantmeyer has positions in Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Warren Buffett, the longtime head of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), has delivered an impressive nearly 20% annualised return for shareholders since 1965, doubling the S&P 500's benchmark return. These exceptional results stem from Buffett and his late partner Charlie Munger's business acumen, combined with Berkshire's ability to strategically invest funds generated by its insurance business.

In light of Buffett's stellar track record, let's examine a few of his favourite stocks and whether you should buy and hold them for the long term.

1. Berkshire Hathaway

Let's start with Buffett's favourite business: Berkshire Hathaway, with its Class B shares trading around $475 per share. The conglomerate holding company owns a majority stake in more than 60 businesses, like Dairy Queen and GEICO. Additionally, the company has a portfolio of over 40 stocks totalling $300 billion in value, with its largest stakes in Apple, American Express, and Bank of America.

Berkshire recently reported its third-quarter 2024 earnings, with slight revenue and operating earnings declines compared to Q3 2023. Specifically, Berkshire delivered $93 billion in revenue and $10.1 billion in operating earnings, a drop of 0.2% and 6.2%, respectively.

While those numbers appear uninspiring on the surface, it's important to note that Berkshire's insurance business can be cyclical, which played out to the company's detriment in its recent quarter. Notably, insurance losses reached $15.2 billion, up 10.5% year over year, and underwriting expenses cost the company $4.9 billion, an increase of 41.1% year over year.

The biggest bull case for Berkshire is undoubtedly its $325 billion pile of cash and cash equivalents, making it arguably the company most prepared for a market downturn and a perfect hedge play for individual investors. When that will be is anybody's guess, but as Buffett awaits to deploy Berkshire's cash hoard, the company will earn approximately $14 billion annually at the current 4.5% Treasury bill rate.

2. Chubb Limited

Berkshire also recently purchased a 6.7% stake in Chubb Limited (NYSE: CB). This Switzerland-based company, known for property and casualty insurance, trades for $285 per share and has surged 25% in 2024 following record revenue and operating income.

During Q3 2024, Chubb generated $14.9 billion in revenue and $2.3 billion in operating income, up 14.3 billion, representing a year-over-year increase of 7.2% and 14.3%, respectively. Notably, Chubb did have an increase of pre-tax catastrophe losses of $765 million during the quarter, an increase of $95 million, including $250 million attributable to Hurricane Helene.

The company's balance sheet is healthy, with $23.8 billion in net cash, even after it acquired Healthy Paws, a leading pet insurance provider, for an undisclosed price, and increased its controlling stake in Huatai Group, a Chinese-based insurance and financial services company.

Additionally, management consistently returns capital to shareholders through dividends and share repurchases. Chubb has paid and raised its dividend for 15 consecutive years and currently pays a quarterly dividend of $0.91 per share, equating to an annual yield of 1.3%. Also, management has repurchased 10.8% of its outstanding shares over the past five years.

In a recent shareholder letter, Buffett talked about the stockholder benefit of the capital allocation strategy, saying, "The math isn't complicated: When the share count goes down, your interest in our many businesses goes up."

Chubb trades at a hefty price-to-book value of 1.75, which is near the high end of its five-year median. Still, given its record revenue and earnings, robust balance sheet, and shareholder-friendly history, the stock appears deserving of its high valuation.

CB Price to Book Value data by YCharts

3. DaVita

Berkshire owns a 44% stake in the final stock on the list, DaVita (NYSE: DVA), a healthcare company specialising in outpatient kidney dialysis services. Trading at around $164 per share, it has delivered an outstanding 54% return in 2024.

As of Sept. 30, DaVita provided dialysis services to approximately 265,400 patients across 3,113 outpatient centres, 85% of which were located in the United States. In its latest reported quarter, the company achieved record financial results, generating $3.3 billion in revenue and $535 million in operating income.

The company does have some balance sheet concerns, considering it has $8.5 billion in net debt and a market capitalisation of $13.5 billion. That debt is also gradually costing more to service each quarter as interest rates remain elevated, carrying an expense of $134.6 million for Q3 2024, an increase of $37 million from Q2 2024.

Still, with its trailing 12-month free cash flow of $1.4 billion, management could pay it down if it so chooses. Instead, management is aggressively buying back its stock, lowering its shares outstanding by 36% over the past five years, suggesting it believes the company is undervalued at a price-to-free-cash-flow ratio of 10.4.

DVA Shares Outstanding data by YCharts

Finally, DaVita does have long-term growth potential as it is expected to expand into new markets. In fact, earlier this year, it unveiled plans to strengthen its presence in Brazil and Colombia and to establish operations in Chile and Ecuador for the first time.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post The best Warren Buffett stocks to buy with $1,000 right now appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Collin Brantmeyer has positions in American Express, Apple, and Berkshire Hathaway. American Express is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of Motley Fool Money. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Bank of America, and Berkshire Hathaway. The Motley Fool Australia has recommended Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.