Finance
Nvidia stock paces toward weekly loss as Wall Street sees 'urgent demand' keeping the chip trade intact
Nvidia stock (NVDA) was on track Friday for a weekly loss of nearly 2% as investors continue to sort through what’s been a challenging last several weeks for the year’s hottest trade.
But Wall Street analysts this week remained confident in the long-term prospects for Nvidia, which is now down about 20% over the last month and off more than 25% from its record closing high.
Earlier this week, Piper Sandler analysts called out a “tremendous opportunity” to buy Nvidia, AMD (AMD), and ON Semiconductor (ON) following the sector’s recent sell-off.
Some analysts also took the opportunity to upgrade the stock during this sell-off.
“I think that for 2025 … things are fairly well set,” New Street Research technology infrastructure analyst Antoine Chkaiban told Yahoo Finance on Thursday. “We know roughly how much [hyperscalers] expect to grow capex. Plans are already set.” New Street upgraded Nvidia to a Buy this week with a $120 price target.
On Friday, chip manufacturer TSMC (TSM), a supplier to Nvidia, posted a 45% year-over-year increase in sales in July — a sign that AI demand remains strong.
“We still sense an urgent demand across the board, and that mitigates the risk in a pause in shipments as customers wait for the next generation of chips to be available in volumes,” said Chkaiban.
The so-called hyperscalers — Microsoft (MSFT), Meta (META), Amazon (AMZN), and Alphabet (GOOG, GOOGL) — each remained consistent during recent earnings reports in their commitment to AI investment. And much of this investment flows right to Nvidia.
“Investors will likely revisit the AI-levered names because that within [semiconductors] is still the one area spending is flowing in terms of customer spending as evidenced by increases in capex by multiple hyperscalers this earnings period,” Jefferies analyst Blayne Curtis told Yahoo Finance on Friday.
Talk of a possible delay for Nvidia’s Blackwell next-generation chip put added pressure on the stock earlier this week. A two-month wait for the chips wouldn’t be inconsequential, analysts say, but it would still not be enough to move the needle on Wall Street expectations.
Curtis’s team stated in a recent note the Nvidia delays “are real, but not a thesis changer.” The company is set to report quarterly results at the end of August.
Analysts and strategists looking at markets more broadly also see the recent cooling in the AI trade as an opportunity.
Truist Advisory’s chief marketing strategist Keith Lerner upgraded the tech sector to Overweight on Thursday after a 12% decline from its mid-July peak with semiconductors down almost 20%. Lerner noted that despite the drop in the price of these stocks, tech’s forward earnings estimates continue to rise.
“This suggests the recent setback was due more to crowded positioning as opposed to a shift in fundamentals,” Lerner wrote in a note to clients.
“Moreover, in a cooling economic environment, we expect investors to come back to tech given some of the secular tailwinds stemming from artificial intelligence (AI) and its premium growth prospects. Moreover, during the current earnings season, we have seen capital spending trends toward AI continue to rise.”
But recent sentiment shifts don’t necessarily resolve the looming question, which investors will in time want answered — how do these massive AI investments eventually pay off?
“When it comes to technology, what’s very apparent is not just the macroeconomic picture but also the fact that people want to see … evidence that that GenAI trade is actually driving positive outcomes,” Luke Barrs, managing director at Goldman Sachs Asset Management, told Yahoo Finance on Friday.
“We have to just be cautious and let it play out over the next year or two.”
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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Harley-Davidson’s new CEO wants to transform how people think about the iconic motorcycle brand, so the company is trying something different.
This week, Harley announced a new strategy that focuses on lower-priced bikes, rather than relying on older, more affluent customers to buy its higher-margin touring models.
“Back to the Bricks builds on our core strengths and competitive advantages, harnessing the passion of our riders to deliver profitable growth for the Company and both our dealers and shareholders,” Harley CEO Artie Starrs said this week. “As we drive towards this new phase of growth, we remain committed to the craftsmanship and dedication that define our brand.”
Entry-level Harley-Davidsons cost about $13,000, while the higher-end Adventure Touring models average about $23,250, and the Premium Range &CVO models cost about $38,500, according to Reuters.
Harley’s new strategy targets a core profit of over $350 million from its motorcycle business by 2027 and over $150 million in cost reductions.
To kick off the new strategy, Harley is introducing Sprint, a new entry-level model powered by a smaller 440cc engine, later in the year.
What is Harley-Davidson’s “Back to the Bricks” strategy?
Harley’s new strategy relies on more than just pushing buyers toward cheaper vehicles to increase volume. The 123-year-old company has a set of five pillars on which it is building its future.
Harley-Davidson “Back to the Bricks” 5-point plan
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Deep appreciation of Harley-Davidson’s competitive advantages and legacy: The Company’s iconic brand, diversified and powerful revenue channels, and best-in-class dealer network provide a powerful foundation for growth.
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Renewed commitment to exclusive dealer network to drive enterprise profitability: Harley-Davidson’s dealers are a competitive advantage. The Company is planning actions to enable dealers to double profitability in 2026 and then double it again by 2029.
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Immediate actions to recapture share in areas where Harley-Davidson has right to win: Harley-Davidson has strong legacy equity in existing markets including new motorcycles, used motorcycles, Parts & Accessories, and Apparel & Licensing. The Company’s new strategy is focused on positioning the Company to regain share and drive meaningful volume growth in categories where it benefits from credibility, scale, and deep rider connection.
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Strong financial position with a path to stronger free cash flow and EBITDA margin: Cost and restructuring actions already underway support a path to stronger free cash flow and EBITDA margin over time.
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Bolstered management team with balance of fresh perspectives and institutional knowledge: Harley-Davidson has made a number of leadership appointments that support the Company as it leverages its innate strengths.
Written by Jitendra Parashar at The Motley Fool Canada
Dividend investing can be one of the simplest ways to build long-term wealth while creating a steady stream of passive income. But in my opinion, a good dividend stock is about much more than just a high yield. Beyond dividend yield, investors should also look for companies with durable businesses, reliable cash flows, and a history of rewarding shareholders consistently over time.
That’s exactly why many investors turn to financial stocks. Banks and asset managers often generate recurring earnings through lending, investing, and wealth management activities, allowing them to support stable dividend payments even during uncertain market conditions.
Two Canadian financial stocks that stand out right now are AGF Management (TSX:AGF.B) and Toronto-Dominion Bank (TSX:TD). Both companies offer attractive dividends backed by solid financial performance and long-term growth strategies. In this article, I’ll explain why these two financial stocks could be worth considering for income-focused investors right now.
AGF Management stock continues to reward shareholders
AGF Management is a Toronto-based asset manager with businesses across investments, private markets, and wealth management. Through these divisions, the company offers equity, fixed income, alternative, and multi-asset investment strategies to retail, institutional, and private wealth clients.
Following a 59% rally over the last 12 months, AGF stock currently trades at $16.67 per share with a market cap of roughly $1.1 billion. At current levels, the stock offers a quarterly dividend yield of 3.3%.
One reason behind AGF’s strong recent performance is its increasingly diversified business model. The company has expanded its investment capabilities and broadened its geographic reach, helping it perform well across varying market environments.
In the first quarter of its fiscal 2026 (ended in February), AGF posted free cash flow of $36 million, up 14% year over year (YoY), driven mainly by higher management, advisory, and administration fees. These fees climbed to $92.5 million as demand for the company’s investment offerings strengthened.
AGF has also been focusing on expanding its alternative investment business and introducing new investment products. With strong cash generation and growing demand for alternative investments, AGF Management looks well-positioned to continue rewarding investors over the long term.
TD Bank stock remains a dependable dividend giant
Toronto-Dominion Bank, or TD Bank, is one of North America’s largest banks, serving millions of customers through its Canadian banking, U.S. retail banking, wealth management and insurance, and wholesale banking operations.
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