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Opportunity in the Dip of Nvidia Stock
By Daniel Foelber
Despite impressive financial results and optimistic guidance, Nvidia saw its stock price drop by 8.5% last Thursday following the release of its fourth-quarter and full-year fiscal 2025 earnings. While the headline numbers were staggering with a 114% revenue growth compared to the previous fiscal year and notable increases in data center and overall revenue, some investors may have been overly concerned about a slight decline in gross margins. Looking ahead to Q1 fiscal 2026, Nvidia projects a substantial revenue increase, albeit with a projected decline in gross margins. Long-term investors should focus on the company’s robust growth trajectory rather than short-term fluctuations in stock price. While Nvidia may appear pricier based on trailing earnings, its forward price-to-earnings ratio suggests a compelling investment opportunity compared to other tech giants.
Investing Wisely in Micron Technologies
By Anders Bylund
Amid market fluctuations, it is crucial to adopt a contrarian approach to investing. Micron Technology, a key player in the memory chip industry, presents an attractive investment proposition given the ongoing AI advancements. As the AI sector continues to evolve, Micron stands to benefit significantly. In times of market volatility, seizing the opportunity to invest in undervalued stocks like Micron can lead to substantial returns in the long term.
The age of gigantic AI servers is just beginning, and it’s set to shape the technological landscape for years to come. This trend is akin to the internet explosion in the 1990s and the rise of smartphones in the 2010s. Just as phones and global networks have become integral parts of our lives, AI is here to stay. The current generative AI tools are just the tip of the iceberg compared to the cutting-edge technologies on the horizon.
Future AI systems will demand substantial processing power and vast amounts of memory chips. As a leading provider of these chips, particularly the high-bandwidth memory featured in top-tier AI accelerators, Micron is poised to experience significant growth in the foreseeable future. Surprisingly, the market has not fully recognized Micron’s potential, as evidenced by its underperformance compared to the S&P 500 index over the past year, despite the release of ChatGPT. With Micron’s stock trading at just 8.4 times forward earnings estimates, it presents a great investment opportunity for long-term gains. Investing in Micron today could yield market-beating returns in 2025 and beyond.
On the other hand, Airbnb investors have faced challenges since the company’s IPO in late 2020, with negative returns while the broader market has surged. However, the future looks promising for the innovative growth stock. Recent data shows that Airbnb’s sales growth accelerated to 12% in the fourth quarter of 2024, driven by global travel industry expansion and platform enhancements. CEO Brian Chesky emphasized the company’s commitment to affordability and unveiled plans for product releases and service upgrades to drive growth in the upcoming year. Airbnb’s strong financial position, highlighted by improved free cash flow and operating profit margin, positions it well for future success in the travel industry.
Meanwhile, Vertex Pharmaceuticals has been experiencing a winning streak, securing two crucial FDA approvals and achieving a 16% year-over-year revenue increase in the fourth quarter of 2024. With its share price soaring, Vertex is a high-performing biotech stock that shows no signs of slowing down. The recent FDA approvals, particularly for Alyftrek, underscore Vertex’s strong momentum in the biotech sector.
Alyftrek, a new treatment for cystic fibrosis (CF), is administered once daily, offering more convenience compared to Vertex’s popular Trikafta. It is equally effective in improving lung function and more successful in reducing chloride levels in CF patients’ sweat. Vertex will pay lower royalties for Alyftrek than its other CF medications and plans to price it around 7% higher than Trikafta, indicating a potential increase in revenue and profits.
Another recent FDA approval was granted for Journavx to manage acute pain, marking the first non-opioid drug approved for pain relief in the U.S. in over two decades. Vertex’s sales and marketing efforts for Journavx are off to a strong start following FDA approval, and the therapy is expected to achieve significant commercial success.
Vertex is also making strides with the launch of Casgevy, a CRISPR gene-editing therapy with potential applications in sickle cell disease and beta-thalassemia. The company is optimistic about the multibillion-dollar opportunity presented by Casgevy as a one-time treatment.
Additionally, Vertex’s pipeline includes four late-stage programs, including suzetrigine for diabetic peripheral neuropathy, inaxaplin for APOL1-mediated kidney disease, povetacicept for IgA nephropathy, and zimislecel for severe type 1 diabetes. These programs represent potential future successes for the company.
In the energy sector, Enterprise Products Partners offers a compelling investment opportunity amid volatile oil prices. With ongoing capital projects worth nearly $6 billion set to come online by 2025, Enterprise Products is positioned for growth and enhanced cash flows. The company’s dividend track record, with over 25 consecutive years of dividend increases, makes it an attractive choice for investors seeking stability and income in the oil and gas industry.
Considering the current market conditions and the potential for growth in both Vertex Pharmaceuticals and Enterprise Products Partners, investors may find these stocks to be promising additions to their portfolios.
I wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $765,576! Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002. Don’t miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks. Stock Advisor returns as of March 3, 2025. 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. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Anders Bylund has positions in Amazon, Micron Technology, and Nvidia. Daniel Foelber has no position in any of the stocks mentioned. Demitri Kalogeropoulos has positions in Amazon, Apple, Meta Platforms, and Tesla. Keith Speights has positions in Amazon, Apple, Enterprise Products Partners, Meta Platforms, Microsoft, and Vertex Pharmaceuticals. Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Airbnb, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Tesla, and Vertex Pharmaceuticals. The Motley Fool recommends Broadcom and Enterprise Products Partners and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
