Shares of FTSE 100 retailer JD Sports (LSE:JD) certainly look good value. Down 20% since the start of the year, the stock trades at a price-to-earnings (P/E) ratio of around 12.

That puts it 62% below the top analyst estimate for the stock. And while that might be optimistic, investors might reasonably take a closer look at the stock from a value perspective.

Why the stock’s been falling (1)

There are – in my view – two main reasons why the stock‘s been falling. The first is that sales growth has been weak. 

In its January update, the firm announced sales growth of 3.4% for last year. That’s barely above inflation and the worse news is that this was entirely the result of opening new stores.

Like-for-like (LFL) sales were actually down 1.5% in 2024. That’s a trend we’ve seen elsewhere (Greggs, Associated British Foods, and B&M European Value Retail), but it’s also a problem.

The company won’t be able to keep opening new stores to offset this indefinitely, so LFL growth‘s important. And the guidance for this year is for LFL sales to be flat, not up. 

Why the stock’s been falling (2)

The latest reason the stock’s been falling has to do with Nike. The company might have one of the most recognisable brands anywhere, but it’s been struggling. A series of mistakes have caused sales to fall. And the latest news from the US firm is that revenues are down 9% in the most recent quarter. And the outlook for the next one’s also weak.

That’s a problem for JD Sports because – to put it simply – if Nike can’t sell its trainers, it’s hard to see how the FTSE 100 company will. And that’s another bad sign for sales.

It’s hard to assess the extent of the issue (JD Sports doesn’t disclose information about Nike sales because it’s another public company). But it’s clearly not a good thing. 

Is the stock actually cheap?

The investment bank with the 200p JD price target is Peel Hunt. The estimate is from January, so it doesn’t account for the latest news from Nike. 

According to the broker, JD Sports is in a good position. It’s hard to see an immediate increase in profits, but it’s expected to do well over the long term.

In particular, the report highlighted the fact the FTSE 100 retailer hasn’t been cutting prices to boost sales. Instead, it’s focused on margins – and it’s done well on this front. 

I suspect more short-term issues (this time coming from Nike) are unlikely to matter much to a broker focused on the long term. So should I buy the stock while it’s down 20% this year?

Retail investing

I agree that JD Sports has been facing problems that aren’t of its own making. But that makes me feel worse about the stock, not better. 

In general, I prefer companies that are in a position to control their own destiny. The more a business can do to increase its profitability, the better I like it. 

There are a few (very important) exceptions but this isn’t usually the case with retailers. And I don’t see that it’s true of JD Sports, which is why I’m going to look elsewhere for stocks to buy.

Investors often look to the US for high-growth stocks, but in 2025, some UK shares are leaving their American rivals in the dust. Despite market uncertainty, three standout British stocks have surged ahead, significantly outperforming their major US counterparts. 

Let’s take a closer look at the investment potential of three UK stocks worth considering this year.

BAE Systems

UK defence giant BAE Systems (LSE: BA.) has seen its stock soar 41% year to date (YTD). This mean it is vastly outperforming rival Lockheed Martin, down 3% over the same period.

Why is BAE Systems thriving?

Currently, there’s a growing demand for defence contracts and its order book is filling up. The ongoing geopolitical tensions in the EU have boosted defence spending in the UK and Europe. This has helped the company secure significant contracts, including its partnership in the AUKUS submarine deal and continued demand for its Typhoon fighter jets.

What’s more, it’s a reliable dividend payer with a moderate yield, appealing to income-focused investors.

The cyclical nature of defence spending and the potential for political shifts could lead to budget cuts in the near future. Supply chain disruptions are another major concern, causing delays in material sourcing and impacting production and profitability.

Fresnillo

Fresnillo (LSE: FRES), a leading precious metals miner, has surged 48% YTD, while its US-based rival, Freeport-McMoRan, has gained only 7%.

Why is Fresnillo performing well?

The prices of precious metals like gold and silver have been on the rise as investors opt for safe-haven assets amid economic uncertainty. The company also strategically ramped up its silver and gold output lately, taking advantage of rising commodity prices. With its core operations based in Mexico, it benefits from lower production costs.

Risks to consider

Commodity prices may be high for now but they can fluctuate significantly. Since the stock is heavily tied to gold and silver prices, it may experience volatility.

Compounding this issue is the operational and regulatory risks tied to Mexico, a region that can experience sudden and unexpected change.

Lloyds Banking Group

Lloyds (LSE: LLOY) has impressed shareholders with a 28.7% gain this year, significantly outperforming JPMorgan Chase, which has suffered minor losses.

Why is Lloyds ahead?

The UK economy has shown a particular resilience of late, boosting investor confidence in domestic banks. The Black Horse bank also benefits from high interest rates, as this increases its income from loans. With potential losses from last year’s car financing scandal now priced in, it could be set for a decent recovery.

Helping to boost its appeal, it features a high yield and solid dividend track record, appealing to income-focused investors.

With significant exposure to the UK mortgage market, the bank’s profits could be affected if stubborn inflation makes housing unaffordable.

The banking sector is highly sensitive to the domestic economy — if it slows, loan defaults could rise, impacting profits.

Britain’s year?

While US stocks often grab the headlines, UK shares like BAE Systems, Fresnillo, and Lloyds have been the real winners so far in 2025. Each company has its strengths, from defence contracts to precious metals and banking, but investors should always weigh the risks before jumping in.

As these stocks continue to outperform rivals, could UK shares be the better bet for the rest of the year? Only time will tell.

A Stocks and Shares ISA is a great asset when it comes to earning passive income. Investors don’t have to pay tax on any dividends earned in an ISA – not just the first £500. 

The contribution limit is £20,000 per year. And with where the stock market currently is, I think an investor could reasonably aim to turn this into £1,300 per year in dividends.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Investing principles

There are lots of investing strategies and different ones will be right for different people. But there are also some key principles that nearly everyone should stick to. 

The first is to focus on the underlying business, rather than what the share price has been doing. When a stock goes up without the company improving much, that can make it risky. 

The second is to concentrate on the long term. Buying shares in a company that currently pays a big dividend can turn out badly if it’s not going to be able to maintain this after a few years.

The third is to look for a business that has a durable competitive advantages. Something that makes it hard for other companies to take its market share is crucial to a good investment.

An example

One example that I think is particularly interesting is Admiral (LSE:ADM). The FTSE 100 insurance company comes with a dividend yield of 6.5%. 

In some places, the stock shows up as having a dividend yield of around 4.85%. But that doesn’t include the special dividend, which the firm paid at the end of the year. 

Factoring this in might look misleading, but I don’t think so. Admiral has paid annual ‘special’ dividends for over 20 years, so I take the view that it’s much more misleading to leave it out.

A 6.5% return is enough to generate £1,300 per year from a £20,000 investment. But investors need to look past the dividend yield and focus on the quality of the underlying business.

Insurance

Insurance can be a difficult industry. The cost of car repairs increasing over time is a risk that can – and has – caused Admiral’s dividends to fluctuate in the past. 

That’s something to consider seriously for anyone looking at the stock as a potential passive income opportunity. But I think there’s also a lot to like about it from a long-term perspective.

Importantly, demand for car insurance isn’t going away in the near future. Operating in a market that is likely to grow over time means Admiral has a decent chance at durability.

On top of this, its proprietary data and analytics has allowed it to generate better underwriting margins than its peers on a consistent basis. And this looks like a long-term advantage to me.

Building a passive income portfolio

I’m not suggesting investors should commit their entire ISA to Admiral when the contribution limit resets. But I think it’s well worthy of consideration as part of a diversified portfolio. 

I see it as a quality company with durable prospects. And the 6.5% dividend yield indicates that there are good opportunities out there for investors that are willing to look for them.

With the S&P 500 falling into correction territory, a lot of terrific US stocks are suffering from volatility right now. But while most investors are busy panic-selling to protect their downside, I’m hunting for bargains to improve my potential upside.

Corrections have historically been some of the best windows of opportunity to snap up shares at a discount. And just looking at the track record of some of the largest companies in the index like Tesla (NASDAQ:TSLA), the potential gains from capitalising on volatility can be enormous.

In fact, between the end of the 2022 market correction and the start of this one, Tesla shares erupted by almost 250%!

Unsurprising volatility

Since this latest correction kicked off in mid-February, Tesla shares have plummeted by just over 33%. And this was just a continuation of its downward trajectory that started back in December. In total, from its latest peak, the electric vehicle (EV) manufacturer has seen its market-cap cut in half.

As troublesome as this seems, it’s worth pointing out that Tesla’s valuation has only reversed back to October levels. And given the company’s pretty lofty valuation of 87 times forward earnings even after shares have tumbled, such volatility shouldn’t have been a major surprise.

But is this sell-off just part of the general market panic, or is there another piece to this puzzle?

Incoming slowdown

A tactic that many investors have started using to gauge Tesla’s performance each quarter ahead of its earnings report is to look at the number of Tesla car registrations each month. And lately, the company seems to be in a bit of hot water.

In February, Tesla registrations fell by 66% in Australia, 49% in China, 24% in the Netherlands, 42% in Sweden, 45% in France, 55% in Italy, and 53% in Portugal. It’s a similar story in Denmark, Norway and Spain.

Only the UK seems to be an outlier, with registrations up by 21%, but that’s still slower than the 42% growth of EV sales in the country.

Some analysts are putting the blame on Elon Musk’s controversial jump into right-wing politics. However, I think this may also simply be a result of competition.

Up until recently, Tesla’s enjoyed a bit of a monopoly within the EV space, with very few competitors to worry about. However, with larger auto manufacturers finally catching up with their own EV offerings, consumers in Europe, China, and Australia are seemingly exploring their options.

And with fewer car sales, Tesla’s impressive growth story might now be in jeopardy.

Is this a falling knife?

Despite the headwinds, Tesla still shows a lot of promise. Its battery technology remains among of the best in the world, and management’s been investing heavily into technologies like AI and robotaxis that could re-spark growth if vehicle registrations continue to slow.

Having said that, I think there are other opportunities to consider among US stocks at cheaper valuations with similar growth prospects. That’s why I’m not rushing to buy Tesla shares right now but rather looking at other American companies in my portfolio that have also taken a recent hit.

Investors are constantly looking for the best shares to buy. And while there are a lot of seemingly attractive opportunities out there, not all of them end up delivering on expectations. Yet, one that appears to show particularly strong promise right now is Melrose Industries (LSE:MRO).

Until recently, the company focused on acquiring struggling industrial businesses, improving them, and then selling them for a profit. But since 2023, the firm’s transitioned into an aerospace pure-play enterprise, serving some of the biggest names in the industry, including Rolls-Royce, BAE Systems, and Airbus among others.

However, with the financial statements riddled with unusual expenses, as management completes the transition, Melrose doesn’t appear to offer much value. At least, not until digging deeper.

A lucrative turnaround opportunity?

Melrose is a bit of a complicated operation. But in short, it designs and manufactures aircraft and engine components for the civil and defence aerospace industries.

As part of its restructuring, management’s been streamlining operations to better position the company as well as boost profitability. And looking at the underlying figures, the results so far have been pretty remarkable. Underlying operating margins have expanded from 5% in 2022 to 15.6% at the end of 2024. And this appears to be just the tip of the iceberg.

In its latest results, Melrose outlined its 2029 objectives. And among them included the goal of increasing revenue from £3.5bn today to £5bn, boosting underlying profits from £540m to £1.2bn, delivering an operating margin of at least 24%, as well as reaching £600m in free cash flow generation.

The analysts at Investec took this information and baked it into their discounted cash flow model. And providing Melrose delivers on its promises, the model returned a 12-month price target of 1,000p.

That’s essentially double the current 520p price tag this stock currently carries. What’s more, the projection was an increase to Investec’s previous 735p forecast. Obviously, these analysts are bullish on the business. And with defence spending across Europe on the rise along with more passengers hopping on planes to go on holiday, Melrose certainly appears to have a lot of tailwinds to capitalise on.

What could go wrong?

Not everyone’s convinced that Melrose is a bargain. In fact, the analyst team at UBS seems to have a polar opposite view of Investec, with a price target of just 400p. In other words, it expects Melrose shares to fall. And digging into their thesis, there’s some logic to their argument.

Melrose’s 2029 targets assume that its customers, like Airbus and Boeing, are able to maintain their build rates of new aircraft and make progress in clearing an enormous backlog. They’re also dependent on the total number of aircraft flying hours continuing to trend upward. After all, the more planes fly, the sooner they need to be serviced and have their parts replaced.

Neither of these factors is in Melrose’s control. And should activity within the civil and defence aerospace markets unexpectedly cool, investors could be left disappointed.

Personally, I’m cautiously optimistic. Management seems to be taking the right steps. And with costs relating to the restructuring coming to an end this year, Melrose looks primed to deliver on its promises. That’s why I think investors may want to take a closer look.

The FTSE 100’s filled with dividend stocks and income opportunities. In fact, 99 of the 100 companies inside of the UK’s flagship index offer investors passive income. And the five largest yields right now are coming from Phoenix Group Holdings (10.3%), M&G (9.2%), Legal & General Group (8.8%), Taylor Wimpey (8.4) and Vodafone (LSE:VOD) at 7.7%.

Combined, this basket of five dividend stocks offers an average yield of 8.9% – almost triple the FTSE 100’s current level of payout. And with exposure to the financial services, insurance, construction and telecommunications industries, it appears to be a fairly diversified mini-income portfolio.

So is now the time to maybe snap up these dividend stocks while the yields are still high?

Yield vs risk

As exciting as earning a near-9% dividend yield sounds, this high level of payout’s usually attached with considerable risk. After all, a dead-cert dividend is often jumped upon by investors almost immediately. And the high volume of buying activity pushes up the stock price and drags down the yield. So when yields are nearing double-digit territory, that usually means investors are being cautious of a looming threat.

Digging deeper

Let’s zoom in on Vodafone. Over the last 12 trailing months, investors have earned around 5.68p in dividends per share after converting from euros. Compared to the current share price of 74.4p, that gives a yield of 7.7%.

And when looking at the price-to-earnings ratio, Vodafone shares don’t exactly appear to be very expensive, trading at a 9.2 earnings multiple. So why aren’t more investors jumping on board this opportunity?

The answer lies in Germany. The company’s core market is proving problematic, with many customers switching to cheaper competitors as Vodafone continues to hike prices. Pairing this with a recent law change that prevents landlords from bundling cable TV into tenancy charges, revenue from Germany has shrunk by 6.4% in its third quarter ended in December.

That’s more than the 6.2% loss in the previous quarter. And even when removing the impact of this law change, sales are still heading in the wrong direction at an accelerating pace.

Considering Germany’s responsible for a third of Vodafone’s top line, this is a serious problem. Management’s actually warned of an incoming impairment charge to its German business in the upcoming May results.

What does this mean for dividends?

Besides the disappointing results in Germany, Vodafone’s business has some bright spots. The UK market appears to be back on track with its upcoming merger with Three, which is expected to spark fresh growth in the enterprise. Meanwhile, its M-Pesa fintech mobile payments platform continues to deliver robust growth in the African markets.

Sadly, this progress appears insufficient to maintain shareholder payouts. And management’s subsequently slashed dividends in half. Instead of paying €0.45 per share every six months, Vodafone shares will now only offer €0.225 per share. And when converted into pounds at the current exchange rate, the yield isn’t 7.7% but rather 5.1%.

All things considered, management seems to be taking the necessary steps to right the ship. But for now, Vodafone shares will be staying on my watchlist. The other stocks on this list also have their challenges. Before investing, be sure to do plenty of research to decide whether the potential reward’s worth the risk.

The Diageo (LSE: DGE) share price is nursing the mother of all hangovers. Once seen as one of the most solid stocks on the FTSE 100, it’s now in the bargain bin, down a whopping 44% over the last three years.

Those who bravely bought the dip – me included – have taken a thumping as the stock keeps sinking. Over the past year, it’s down 28%. Even in the last month, it’s shed another 5%. It just won’t stop.

Can this FTSE 100 flop fight back?

Its struggles began with a November 2023 profit warning over sales in Latin America & the Caribbean, and it’s been bad news all the way since.

Economic instability and currency depreciation have hammered sales, while its premium spirits brands have struggled in tougher times. When budgets are tight, luxury malts, celeb-backed Tequilas and fancy craft gins stay on the shelf while cheaper rivals fly.

Trade war fears haven’t helped, with Diageo’s Canadian whisky and Mexican Tequila brands on the frontline of Donald’s Trump’s tariffs. On 4 February, it scrapped profit guidance, saying it was too early to assess the impact on financial performance.

As if that wasn’t enough, young people simply aren’t pulling their weight by drinking enough booze. It’s a huge generational shift and nobody knows where it will end.

When Deutsche Bank upgraded the stock from Sell to Hold on 3 March, it was seen as a major win. That’s how low expectations have sunk.

Diageo’s market cap has plunged to £45bn, and its once lofty price-to-earnings ratio of nearly 25 has collapsed to around 15. It’s cheaper than it was, but not dirt cheap.

The dividend, which had been a lowly 2%, has shot up to nearly 4% as the shares slumped. Good news for new investors, bad news for those (like me) who’ve seen their capital shredded.

So, is Diageo worth considering today? Here’s where things get interesting. 

Lower stock price, higher dividend income

The 21 analysts serving up one-year share price forecasts have produced a median target of 2,537.5p. If correct, that’s a pretty hefty increase of almost 23% from today. Combined with that yield, this would give investors a total return of 27%. That would be a pretty stunning turnaround, if it happens.

But forecasts are slippery things. Some of those estimates are probably outdated by now. Plus, every stock is at the mercy of external events, both predictable and unforeseeable. Let’s say I’m sceptical.

Diageo certainly has room to recover. It’s fallen so far that new investors have a safety net of sorts. Even if it doesn’t surge back to its former highs, there’s a case to be made that the worst is over.

And it always has Guinness. The brand is flying, arguably cooler than ever. It’s now the jewel in Diageo’s crown.

Diageo is worth considering for long-term investors who believe in the group’s resilience. As a battle-scarred veteran, I’d say don’t go into it thinking this is a guaranteed win. There’s still plenty of uncertainty ahead.

As one of the most successful investors alive today, it’s not too surprising to hear that Warren Buffett seemingly predicted the recent US stock market correction. While Buffett didn’t explicitly call for stocks to fall, he’s repeatedly highlighted his concerns over valuations. What’s more, actions often speak louder than words.

His investment firm, Berkshire Hathaway, has been hoarding cash – a process that started back in 2024 following a series of sell trades. In fact, he sold around $134bn worth of shares last year, which included reducing his stake in Apple and Bank of America. Skip ahead to today, Berkshire now has around $334bn of cash just sitting on the balance sheet awaiting deployment.

Be fearful when others are greedy

Following the stock market correction in 2022, plenty of US businesses were trading at discounted valuations, in particular growth stocks. So it’s no surprise Buffett was a net buyer of shares that year. In fact, across all his trades in 2022, he put roughly $34bn of capital to work.

What followed was two years of phenomenal growth. Since the end of 2022, the S&P 500 climbed almost 60% before the recent market downturn. At the same time, the Nasdaq was up close to 90% over the same period. For reference, the stock market average return is usually closer to 10%.

With valuations once again getting out of hand, Buffett started heeding his own advice and started selling shares. In 2023, he sold a net of $34bn of shares. In 2024, this number increased to $134bn. And now that US stocks are once again in decline, Berkshire has an enormous cash pile to snap up new bargains just like in 2022.

Be greedy when others are fearful

Despite the significant slide in valuations, Buffett’s opinion of an overinflated market seems to remain in place. He’s explicitly expressed concerns over the geopolitical landscape and the impact of US tariffs on consumers as prices are expected to rise.

As such, it seems Buffett’s looking abroad to international markets for bargains. And for investors aiming to follow in his footsteps, the FTSE 100 might be a perfect hunting ground for buying opportunities. Take Hikma Pharmaceuticals (LSE:HIK) as an example.

The healthcare enterprise is rapidly expanding its dominant position in the generics space, making drugs and treatments far more affordable for patients. Altruism aside, management’s strategy is proving to be highly lucrative, with revenue and earnings maintaining a consistent upward trajectory that’s resulted in 13 years of continuous dividend hikes at an average growth rate of 14%.

Yet, despite its trajectory, Hikma shares are still only trading at a forward price-to-earnings (P/E) ratio of 11.5. That’s about half the forward P/E of the S&P 500 right now.

Being a pharmaceutical business, Hikma’s far from a risk-free enterprise. Drug development is costly even when making generics. Not to mention, the intense level of competition forces Hikma to innovate continuously or be left behind.

Nevertheless, it looks like a potentially attractive opportunity worthy of closer inspection, in my opinion. And it’s not the only bargain on the London Stock Exchange that investors can consider to diversify away from high volatility US stocks.

London’s stock market is a great place to consider going shopping for dividend shares. A strong culture of dividend distribution means it’s packed with top high-yield shares and companies with strong records of sustained payout growth.

With this in mind, here are two great passive income stocks to consider today:

Dividend share	Predicted dividend growth this year	Dividend yield
Ramsdens (LSE:RFX)	4%	5.2%
Primary Health Properties (LSE:PHP)	2%	7.3%

As you can see, the forward dividend yield on each of these shares comfortably beats the FTSE 100 average of 3.6%. Here’s why I think they could prove great ways to make a second income over the long term.

Ramsdens

Pawnbrokers like Ramsdens can see revenues sink during periods of economic strength. But a murky outlook for Britain’s economy suggests businesses like this could continue to thrive.

Revenues and pre-tax profits here soared 14% and 12%, respectively, in the 12 months to September 2024. The top and bottom lines were also boosted by the strong rise in gold prices that has continued in recent weeks.

This encouraged the company to raise the the total dividend in fiscal 2024 by 8% year on year.

Admittedly Ramsden’s history has been lumpy so far this decade, with payouts disrupted by the Covid-19 emergency. But they’ve been rising steadily since financial 2021, and I think the company looks in good shape to meet this year’s predicted cash rewards.

The forecast dividend is covered 2.3 times by expected earnings, providing a healthy margin for error. The company also benefits from a strong balance sheet, with net cash standing at £7.4m as of September.

Primary Health Properties

Real estate investment trusts (REITs) are required to pay out at least nine-tenths of profits from their rental operations in dividends each year. While this provides some peace of mind for investors, it doesn’t guarantee a large or growing dividend over time, as payouts are still sensitive to core performance.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

In this regard, Primary Health Properties is (in my opinion) one of the most secure REITs for dividend income. Indeed, annual payouts have risen every year for more than a quarter of a century.

This stability is thanks to the firm’s focus on the ultra-defensive healthcare market. Unlike REITs that operate in cyclical sectors, demand for the properties it lets out (like GP surgeries) remain unaffected by the broader economic landscape.

This isn’t to say that trading conditions will remain supportive looking ahead. For instance, changes to NHS budgets could impact future rents. But NHS reform that’s putting greater focus on good primary healthcare provides me with some reassurance.

I’m also confident earnings and dividends will rise as our ageing population drives demand for healthcare services.

In the meantime, a strong balance sheet provides solid foundations for Primary Health to keep raising dividends over the near term. The firm’s loan-to-value (LTV) of 48.1% in December remained comfortably within its target range of 40-50%.

After sprinting 2,200% higher in five years, Nvidia (NASDAQ: NVDA) stock has paused for a breather. It’s basically flat over the past nine months. Where it heads in future will ultimately come down to demand for its latest AI-focused chips.

Earlier this week, Nvidia held its flagship annual GTC event. Here, I’ll touch on three things that we learned.

Restless innovation

The first thing that struck me was just the relentless innovation still going on at Nvidia. My email inbox was inundated by a flurry of press releases from the event.

Here are some of them:

• Partnered with telecom giants to build AI-native 6G networks, integrating AI into wireless architecture. 
• Unveiled Blackwell Ultra, a powerful AI factory platform built for reasoning, agentic, and physical AI.
• Partnered with Google to use AI and simulation to develop robots with grasping skills, reimagine drug discovery, and optimise energy grids.
• Will build a quantum computing research centre to accelerate quantum supercomputing.

This shows how the company is looking well beyond generative AI towards quantum computing and physical AI (particularly self-driving vehicles and robots). Nvidia certainly isn’t resting on its laurels.

This level of innovation and drive to stay ahead of rivals is a key competitive strength. Indeed, I would argue that Nvidia carries more key person risk in the form of founder-CEO Jensen Huang than any other company. Without his vision and leadership, I would think twice about investing in the company.

Blackwell ramp up

Next, we got some news about demand for the firm’s latest Blackwell chips. In a nutshell, it’s very strong.

Nvidia said that demand from the top four US cloud service providers (CSPs) is significantly higher than when the Hopper chip was released in 2024. In other words, it has been the fastest ramp up of a product in the company’s history.

Product roadmap

Finally, Nvidia gave us a display of its product roadmap through to 2028. The key takeaway is that there will be a new annual release cadence rather than every other year.

A family of Blackwell Ultra chips will start shipping in the second half of this year, while the next-generation Vera Rubin chip is expected to reach customers in 2026.

Beyond that is Feynman, though whether those chips will have enough additional performance and efficiency to convince the cloud giants to keep forking out for them is anyone’s guess. That adds a bit of uncertainty in the mid-term here.

What about the stock?

It’s hard not to be bullish on the company’s growth in the near term. Longer term, it sees a multi-trillion dollar market opportunity in robots. There are a number of companies working on humanoid robots, including Tesla. Nvidia is positioning its chips to be at the centre of it all.

Looking at valuation, the stock appears attractively priced at 26 times forward earnings. That’s not a high multiple for a company like this.

Of course, there are big risks here if AI infrastructure spending unexpectedly cools. Meanwhile, Nvidia is spending heavily to shift its supply chain from Asia as President Trump’s policies have their affect.

On balance though, I think the stock is worth considering at $116 for long-term investors.