The Zacks Analyst Blog Highlights NVIDIA, Alphabet and Intel

For Immediate ReleaseChicago, IL – January 30, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: NVIDIA Corp.'s NVDA, Alphabet Inc. GOOGL and Intel Corp. INTC.Here are highlights from Wednesday’s Analyst Blog:Buy NVIDIA Stock: DeepSeek Threat Is ExaggeratedA Chinese startup's latest affordable artificial intelligence (AI) chatbot sent NVIDIA Corp.'s shares into a tailspin, erasing half a trillion in market capitalization. However, the widespread anxiety among NVIDIA investors is overblown. In fact, it provides them with a better buying opportunity. Let's see in detail –Why DeepSeek's Threat Is OverdoneIn China, a Hangzhou-based startup recently introduced DeepSeek. This low-cost AI breakthrough rattled tech behemoths in the United States, eroding NVIDIA's $589 billion in market value on Monday. The development cost of the DeepSeek AI model is estimated at around $6 million, an impressive feat that poses serious challenges to costly U.S. endeavors like Open AI's Chat GPT.NVIDIA's sell-off, however, is an overreaction to DeepSeek's cost-effective model, which could increase AI usage and lower technology costs, thus maintaining demand for NVIDIA's chips. Moreover, NVIDIA's high-end chip demand will remain robust as the new Blackwell chips are set to widen the performance gap in the AI market.Let us also admit that for AI development, a huge amount of capital is required to maintain data design centers, software and cooling systems Now, with Stargate, a momentous $500 billion investment in AI infrastructure, American AI platforms have a massive capital advantage over DeepSeek AI.So, astute investors should focus on NVIDIA's next-generation chips for better performance over cheaper options. Tuesday's rebound in NVIDIA's shares suggests that DeepSeek's impact is temporary. While fluctuations may occur in the short term, the long-term outlook for the NVIDIA stock is positive.3 Reasons to be Bullish on NVIDIA StockStrong demand for NVIDIA's chips will push its share prices upward. Shipments for Blackwell chips have picked up this quarter due to strong demand among the likes ofAlphabet Inc.. Blackwell chips are in demand due to their faster AI interface and enhanced energy efficiency compared to older chips. However, older Hopper chips are still in demand due to their superior quality over rival Intel Corp.Another reason for NVIDIA's shares going up is the company's dominant position in the graphic processing units (GPU) market, which gives it a competitive advantage. The GPU market is globally estimated to reach $1,414.39 billion by 2034 from the current $101.54 billion at a CAGR of 13.8%, according to Precedence Research.NVIDIA, anyhow, is a sound company, which bodes well for its stock. NVIDIA efficiently controls costs and generates profits. With a return on equity (ROE) of 120.4%, it outperforms the Semiconductor - General industry average of 78.3%, indicating higher net income relative to equity.NVIDIA Stock to Buy Hand Over FistStrong demand for NVIDIA's chips, GPU market dominance and healthy fundamentals make NVDA stock a compelling buy with potential for growth. The recent drop in NVIDIA's share prices led by DeepSeek presents investors with a favorable opportunity to purchase NVDA shares at a discounted rate. To top it off, NVIDIA's lower debt-to-equity ratio of 12.8% reduces investment risk compared to the industry average of 22.1%.NVIDIA rightfully has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.com                                      https://www.zacks.com                                                   Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intel Corporation (INTC): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Alphabet Inc. 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