Category: Stock Market

Resolute Mining Ltd (ASX: RSG) shares have jumped 3.65% higher in Tuesday morning trade. At the time of writing, the ASX mining stock’s shares are changing hands at $1.14 a piece.

It’s been a year of success for the African-focused gold mining company. Its shares have climbed 8.1% higher over the past month and are now up a huge 183.75% higher over the past year.

The ASX mining stock joined the ASX 200 index this month.

And just yesterday, the ASX gold miner released more good news. A major update on its Doropo Gold Project in Côte d’Ivoire has revealed that there is a significantly larger, longer-life, and more valuable project than previously outlined. The new Definitive Feasibility Study (DFS) findings has increased the site’s ore reserves by approximately 55% and lengthened the expected mine life to 13 years, from 10 years previously.

Following the latest update, analysts at Macquarie Group Ltd (ASX: MQG) have written a note to investors outlining their latest expectations for the ASX mining stock.

More upside ahead for Resolute Mining shares

In the note, the broker confirmed its outperform rating on Resolute Mining shares. It also raised its target price to $1.45 a piece, up from $1.35 earlier this month.

At the time of writing, the upgraded target price represents a potential 27.2% upside for investors over the next 12 months.

“Our NAV increases 12% following the incorporation of Doropo DFS due to the longer mine life and increased production which drives a TP increase of 7%/8% to A$1.45/£0.72. Our 50/50 blend of 1.0x NAV, 7x OCF methodology is also unchanged,” the broker said.

“Doropo will become RSG’s third operational asset and provides important geographical diversification outside Mali (Syama) and Senegal (Mako), opening up a third production asset in Côte d’Ivoire.”

What else did Macquarie have to say about the ASX mining stock?

Macquarie analysts said they have incorporated the DFS findings into their forecasts for Resolute Mining, with initial capital costs of US$516 million and life of mining (LOM) gold production expected at around 2.14Moz. 

The broker said it conservatively estimates operating costs to be around US$1,652 per oz, compared with the DFS guidelines of US$1,406 per oz.

“After incorporating the DFS into our forecasts, our NAV [net asset value] for Doropo has increased 51% to A$1,633m (~US$1,085m), and we calculate a post-tax IRR of 39% which compares to the DFS at US$1,457m and 49%, respectively. Doropo is now RSG’s highest value project and is responsible for ~51% of the NAV for RSG,” Macquarie’s analysts said.

The post This ASX mining stock surged 188% in a year, tipped to jump another 27% appeared first on The Motley Fool Australia.

More reading

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• Broker ratings on 6 ASX shares about to join the ASX 200
• 7 ASX mining shares to buy for Christmas amid upgrades from Macquarie
• Should we be paying more attention to these two rocketing ASX small-cap mining stocks?
• 6 ASX shares including Ora Banda and Aussie Broadband ascend into ASX 200

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Dicker Data Ltd (ASX: DDR) share price has been steady in recent months and currently trades around $10 apiece.

At this level, the company offers a dividend yield close to 5%, but what really sets it apart from most ASX 200 dividend stocks is the frequency of its payouts. Dicker Data pays dividends every 3 months, which is why income investors often pay close attention to it.

For someone building a passive income stream, getting paid quarterly instead of twice a year can be incredibly appealing.

A company with a strong dividend habit

Dicker Data is one of the largest IT distributors in Australia and New Zealand, supplying hardware, software, and cloud solutions from major global brands, including Cisco, Microsoft, Lenovo, HP, and Dell. Although it may not be a household name, it powers a significant portion of the country’s IT channel through thousands of reseller partners.

The company has also benefited from ongoing demand for cloud migration, AI infrastructure, and cybersecurity spending. These tailwinds have supported steady revenue growth across its FY25 results, helping strengthen its cash flow and dividend capacity.

In August, Dicker Data reported:

• Double-digit revenue growth driven by cloud and AI products
• Improved gross margins
• Strong operating cash flow
• A fully-franked dividend of 11 cents per share

And management has been clear that dividends remain a priority, noting that distributions will continue to reflect the company’s cash generation.

A quarterly dividend that feels like passive income

The company has paid 11 cents fully franked every 3 months for the last 12 months. This works out to be 44 cents annually. At today’s share price, that is close to a 5% fully-franked yield.

For a $10,000 investment, that would translate into roughly:

• $440 a year in dividends, or
• $572 a year, including franking credits

Is Dicker Data still growing?

Even as the company pays out regular dividends, it continues to invest heavily in expanding its distribution network, warehouses, and vendor partnerships. Its exposure to AI-related infrastructure has also been growing, which could be a meaningful driver over the next few years.

Macquarie and other brokers have highlighted Dicker Data as a beneficiary of the multi-year shift toward cloud services, device upgrades, and data centre growth.

Foolish Takeaway

Dicker Data is one of the rare ASX dividend stocks that pays its shareholders every 3 months. With a near 5% yield, fully franked dividends, and a business tied to long-term technology growth, it offers a mix of stability and income that is hard to find.

The post This 5% ASX dividend stock could pay me every quarter like clockwork appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Dicker Data. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

With further interest rate cuts almost certainly off the table, picking winners in the ASX retail sector might have become just that little bit much harder.

The team at Macquarie have done a deep dive into the sector, and believe they’ve come up with some solid picks which will generate impressive share price returns over the next 12 months.

Growth stories to dominate

Given the challenges the sector is facing, Macquarie has advised that rather than looking for value on an earnings basis, investors should look for a strong growth thematic from companies.

As they wrote in a note to clients:

In our view, investors looking to retain exposure to the consumer are best placed to focus on stocks with share growth stories and brand strength (i.e. quality) rather than value, given upcoming macro volatility into 2H26 (driven by potential interest rate increases).

In household retail, Macquarie’s least preferred sector, share prices in general have been under pressure, particularly for Temple & Webster Ltd (ASX: TPW) which was sold off heavily after a trading update recently.

Another company which has seen its share price decline has been Nick Scali Ltd (ASX: NCK) however the Macquarie team are bullish on the outlook for Nick Scali shares, saying that while potential rate increases will be a negative, “Nick Scali foot traffic data tracking gives us confidence in the trading outlook”.

Macquarie has an outperform rating on Nick Scali shares and a price target of $28.20 versus the current price of $21.49, indicating potential upside of 31.2%.

Coffee a growth market

The Macquarie team is even more bullish on the prospects for Breville Group Ltd (ASX: BRG) shares, with a price target of $39.20 versus the current price of $29.64. If that were to be achieved it would be a 32.2% gain.

Macquarie says consumer data indicates that discretionary retail spend was strong heading into the sales events such as Black Friday, and they are confident that companies such as Breville represent value at current prices.

We remain confident in the health of discretionary consumption after Black November, and into Christmas, implying low macroeconomic risks to the small-cap discretionary retail stocks under our coverage. Our analysis … gives us confidence in the health of the underlying consumer for discretionary retailers, heading into 2H26. Given consumer discretionary share prices have all declined YTD FY26 so far (except Baby Bunting (ASX: BBN)), we think this represents a valuation opportunity.  

Macquarie said Breville was among its top picks in the discretionary sector, with structural growth in the coffee market and new products and market expansion to drive growth.

In the medium to long term, the expansion of coffee across all key geographic areas continues to be a driver for Breville. We expect revenue to be driven from coffee, as the market continues to go through coffee ‘premiumisation’ and structural growth driven by higher penetration across North America, Europe and APAC.

The post Macquarie says these two ASX retail stocks are good buying at current levels appeared first on The Motley Fool Australia.

More reading

• 3 ASX mid-cap rockets that could become future blue chips
• Here are the top 10 ASX 200 shares today
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• Bell Potter names more of the best ASX 200 shares to buy in December

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group. The Motley Fool Australia has recommended Nick Scali and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

We’re smack bang in the middle of the busiest retail season of the year, so what better time to have a look at what retail stocks are in favour?

Bell Potter has had a look at the big names in the sector and says while not all retailers are created equal, three in particular stand out as good buying at current levels.

Overall, the Bell Potter teams said retail has been “choppy as we’ve seen varying performance between discretionary categories with technology/electronics, wellness and sports and services such as cafes and recreation leading the suite while others such as mass apparel and lifestyle footwear and furniture and household goods lagging”.

They went on to say:

Looking ahead, while the pause in interest rate cuts in Australia limits catalysts for the consumer discretionary sector, we continue to prefer key beneficiaries from the rate cuts seen so far and category outperformers. We continue to look for retailers with differentiating customer value propositions and balance sheet strength and support names who may grow via market share expansion with more diverse customer demographics and category exposures.

So now, on to their retail stock picks for December.

Universal Store Holdings Ltd (ASX: UNI)

The Bell Potter team says Universal is a leading youth-focused streetwear retailer with 100 stores under its Universal Store flagship brand, as well as private label brands Perfect Stranger and Thrills.

With a price-to-earnings (P/E) ratio of about 18 times, the Bell Potter team says the company is trading at a discount to its S&P/ASX 300 Index (ASX: XKO) peer group “and see the multiple justified by the distinctive growth traits supporting consistent outperformance in a challenging broader category”.

There is a longer term opportunity with three brands to grow margins organically via private label product penetration, and Universal is expected to benefit as youth consumers prioritise on-trend streetwear.

Bell Potter has a price target of $10.50 on Universal Store Holdings compared with the current price of $7.99.

Harvey Norman Holdings Ltd (ASX: HVN)

Bell Potter says Harvey Norman is the most diversified retailer in terms of category exposure and regional presence, “while benefitting from both as a quasi-retailer/landlord and channel mix via company operated stores and franchising”.

Bell Potter has a price target of $8.30 on Harvey Norman shares compared with $7.06 currently, and said the current P/E ratio was justified considering “multiple catalysts” for growth in the near and mid-term.

Adore Beauty Group Ltd (ASX: ABY)

The Bell Potter team said Adore is an “omni-channel retailer” selling more than 15,000 third party products from more than 360 brands as well as its own private label brands.

The Bell Potter team said:

Key drivers for business growth are its continued store-rollout targeting a network of 25+ stores, along with its private label brands and high-margin retail media arm contributing to margin expansion and thus a strong earnings trajectory. We view ABY as well positioned to take advantage of the high performing beauty category within the Australian market.

Bell Potter has a price target of $1.25 on Adore Beauty shares compared with $1.20 currently.

The post Bell Potter names three retail stock picks for your Christmas hamper appeared first on The Motley Fool Australia.

More reading

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• 1 ASX dividend stock down 17% I’d buy right now

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group. The Motley Fool Australia has positions in and has recommended Harvey Norman. The Motley Fool Australia has recommended Adore Beauty Group and Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Electro Optic Systems Holdings Ltd (ASX: EOS) shares have been on fire this week.

Thanks to the announcement of another major contract win, this ASX defence and space stock has rocketed over 40%.

This means that its shares are now up over 400% since the start of the year.

But if you thought it was too late to invest, think again! That’s because Bell Potter believes there’s more upside to come for this high-flying stock.

What is the broker saying?

Bell Potter was pleased with the company’s announcement of an US$80 million contract from a South Korean customer for a High Energy Laser Weapon (HELW) and an agreement to establish a joint venture in the country. It said:

Establishment of a joint venture (JV) between EOS and the customer to develop and supply the Korean market with 100kW HELWs on terms to be agreed; and licensing of IP relating to 100kW HELWs for the Korean market to the JV. The contract is expected to be fulfilled after delivery at the end of CY27e and subsequent demonstrations. The contract was previously expected to be awarded in CY26e.

We view this award as further evidence of the significant revenue opportunity available to EOS from the directed energy counter-drone (C-UAS) vertical. Currently, EOS is the only supplier in the world to have been awarded a HELW export contract for a 100kW system. We believe that current competitive dynamics in the HELW industry are favourable for EOS, with US companies unable to export directed energy technology; the UK offering a lower power (30kW) weapon; and Israel’s “Iron Beam” system lacking clarity on export restrictions.

In response, the broker has boosted its earnings estimates meaningfully again. It adds:

We have upgraded EPS +15%/+42% in CY26/27e, reflecting: revenue upgrades due to the larger than expected HELW contract and increased confidence of further HELW contracts awarded; gross margin expansion on account of greater revenue skew to higher margin HELW contracts; and favourable working capital changes.

Should you buy Electro Optics Systems (EOS) shares?

According to the note, the broker has retained its buy rating on Electro Optics Systems (EOS) shares with an improved price target of $9.00 (from $8.10).

Based on its current share price of $7.19, this implies potential upside of 25% for investors over the next 12 months.

Bell Potter concludes:

We retain our Buy rating and raise our TP to $9.00. EOS is positioned as a market leader in C-UAS solutions and is leveraged to increasing budget allocations to C-UAS technologies. We see positive news flow over the next 6 months stemming from CUAS and RWS contract awards.

The post Why it isn’t too late to buy Electro Optic Systems (EOS) shares appeared first on The Motley Fool Australia.

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• Why 4DMedical, EOS, Gorilla Gold, and Neuren shares are racing higher today
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in Southern Cross Electrical Engineering Ltd (ASX: SXE) were trading higher on Tuesday after the company announced $90 million in new contracts across data centres and rail.

The company said in a statement to the ASX that it had been awarded a range of works on DigiCo Infrastructure REIT (ASX: DGT)’s SYD1 project located in Sydney’s inner-west, where the existing data centre is being expanded with additional levels and increased power capacity.

Package of work won

Southern Cross subsidiary Heyday has been awarded the design and construct scope “for the installation of low-voltage switchboards, busways, generators, and UPS systems, along with the supply and installation of cable containment, LV reticulation, lighting, and general power systems”.

Fellow subsidiary Force Fire has been awarded the fire services and design and construct works for the project, in addition to demolition works it had already completed.

In addition to this, Trivantage Manufacturing had received an order for the supply of electrical switchboards, and would work closely with Heyday on the design.

The company said further re the switchboards:

They are being manufactured locally at our Sydney facilities and are expected to reach completion in accordance with the approved project schedule.

In rail, Southern Cross said it had been awarded a package of work relating to Sydney Metro’s St Marys Station Project, with that work relating to the electrical and communications systems.

Experience a key differentiator

Southern Cross Managing Director Graeme Dunn said it was pleasing to win new contracts in both sectors, which the company had deep experience in.

He went on to say:

I am pleased to be announcing further awards in the data centre and rail transport sectors which have been strong and growing sources of activity for us. I note that in both this particular data centre facility and on the Sydney Metro infrastructure development generally, we have done significant volumes of work previously and so to secure these new works is a testament to the quality of our past delivery. I also observe that on both of these developments we are drawing on multiple disciplines from across the group, which not all of our competitors are able to match. This of course benefits us as we are able to get more out of each project, but I believe also benefits our clients as we are able to deepen our relationships with them and better co-ordinate delivery across disciplines to them.

Southern cross shares were 2.5% higher on Tuesday morning at $2.46. The company was valued at $638.3 million at the close of trade on Monday.

The post Data centre and rail contract wins have boosted this engineering firm’s shares appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
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• DigiCo Infrastructure REIT appoints new CEO and sets strategic growth path

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Southern Cross Electrical Engineering. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX All Ords gold stock Ausgold Ltd (ASX: AUC) is slipping today.

Ausgold shares closed up 4% yesterday, trading for $1.04. In morning trade on Tuesday, shares are changing hands for $1.02 apiece, down 1.9%.

For some context, the All Ordinaries Index (ASX: XAO) is up 0.3% at this same time.

Today’s underperformance is unusual for the miner in 2025.

Amid a surging gold price and Ausgold’s own successes on the ground this year, investors who bought the ASX All Ords gold stock on 2 January are now sitting on gains of 142.9%.

Here’s what the miner reported this morning.

ASX All Ords gold stock ramping to production

In an ASX release before market open, Ausgold announced that it had completed the updated Definitive Feasibility Study (DFS) for its 100%-owned Katanning Gold Project (KGP), located in Western Australia.

The ASX All Ords gold stock needed to update its June 2025 DFS following a key land acquisition deal adjacent to Katanning, which it reported in August.

The miner explained that its June 2025 KGP Ore Reserve was artificially constrained to remain within the eastern boundary due to land access restrictions. At the time, Ausgold didn’t expect to be able to mine the area outside of its existing land holdings in the near future. As such, this was excluded from the June DFS.

Now, following its expanded tenure position, the ASX All Ords gold stock said it has completed a further optimisation of the KGP mine plan. Ausgold expects to add incremental life-of-mine gold production from areas within the Central Zone of the deposit. And management said mining costs will come down after Ausgold relocates waste dumps to more strategic locations, reducing haulage distances.

Digging into the numbers, the life-of-mine forecast gold production increased by 82,000 ounces to 1.22 million ounces. Ausgold expects to be able to increase its average annual gold production to 143,000 ounces in the first four years.

And costs will come down as well, with the all-in sustaining cost (AISC) now forecast to be $2,157 per ounce over the first four years and $2,252 per ounce over the life-of-mine.

What did management say?

Commenting on the DFS results, which could support the ASX All Ords gold stock longer-term, Ausgold executive chairman John Dorward said, “We are delighted with the outcomes of the optimised DFS Update, which clearly demonstrate the robust financial returns that will be generated by the KGP.”

Dorward added:

In addition to the extensive drilling program currently underway, we are progressing pre-development activities at pace, including front-end engineering and design and tendering of key contracts including construction of the workforce accommodation facility, power supply and EPC/EPCM and debt financing, whilst in parallel progressing activities to finalise permitting for the project.

The post Up 143% in 2025, ASX All Ords gold stock announces 82,000-ounce gold boost appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Australian tech sector has had a relatively tough time in 2025, with only a handful of tech stocks outperforming the market.

But Bell Potter doesn’t think this should put you off from investing in the sector in 2026. In fact, it has just picked out three of the best ASX tech stocks to buy and is predicting strong returns from them. Here’s what it is recommending:

Life360 Inc (ASX: 360)

Life360 has been on form in 2025, rising by over 50%. However, things were significantly better at the beginning of October, with the location technology company’s shares pulling back by 37% since then.

Bell Potter thinks this is an opportunity in 2026 and has put a buy rating and $52.50 price target on its shares. It said:

Life360 has had a large pullback in its share price like many other stocks in the technology sector (peak of ~$55 in early October down to ~$35 in mid November). Outside of the general correction in the sector there was one factor specific to the company which also drove down the share price – slowing monthly active user or MAU growth in 3Q2025. Q3 is traditionally the strongest quarter for MAU growth so the relatively slow growth was a big surprise and was also not well explained by the company.

Outside of this number, however, everything was as expected or better and importantly paying subscriber growth was still strong. Our view is the outlook remains very positive for the company and the one quarter of relatively soft MAU growth was an aberration. We therefore expect a return to reasonable or even strong MAU growth in 4Q2025, and this could also serve as a potential catalyst for the share price.

WiseTech Global Ltd (ASX: WTC)

Another ASX tech stock that has pulled back materially this year is logistics solutions technology company WiseTech.

Bell Potter remains positive and believes that new products, a new commercial model, and the acquisition of e2open will help drive growth. It has put a buy rating and $100.00 price target on its shares. It commented:

WiseTech has also had a large pullback in its share price but this has been more driven by company specific issues like slowing growth in the core business, management and board upheaval and insider trading allegations against CEO and founder Richard White. These issues, however, are starting to subside and focus is returning to the outlook for the core business which is improving with the launch of new products, a new commercial model and the integration of a large acquisition (e2open).

These initiatives are all expected to help drive a much stronger 2HFY26 result relative to 1HFY26 and then the first full year of benefits will be evident in FY27. All of these changes/initiatives are not without risk and there is still some risk of a soft downgrade to revenue guidance in FY26 at the half year result but the 12-month outlook is positive in our view.

CAR Group Limited (ASX: CAR)

A third ASX tech stock that could be a best buy in 2026 according to the broker is auto listings company CAR Group.

With its shares trading on a lower than normal price to earnings (P/E) ratio, the broker sees now as an opportune time to invest. It has a buy rating and $42.20 price target on its shares. It said:

Similarly to both 360 and WTC, CAR has seen a drawdown in recent months, though lacks a company specific driver which in our view provides an entry opportunity. CAR is diversified throughout verticals (automotive and non-automotive) and geographies (Australia, North America, South Korea, Brazil, and Chile), with revenues supported by a dealer subscription model which can provide for a level of safety against volatility in listings volumes.

CAR is trading around two-year lows at a P/E of ~28x, despite a defined product rollout map to drive value from its market-leading networks in its large, addressable markets, which includes C2C payments, pay-per lead model, regional expansion and scope to develop market-based legacy advertising practices, underpinning a steady growth profile in our forecast EPS through FY26e-FY28e.

The post Bell Potter names the best ASX tech stocks to buy in 2026 appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor James Mickleboro has positions in Life360 and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360 and WiseTech Global. The Motley Fool Australia has positions in and has recommended Life360 and WiseTech Global. The Motley Fool Australia has recommended CAR Group Ltd. 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.

Considering all of this, could Nvidia become the first $10 trillion company? Let’s find out. 

An amazing growth story

Before answering that question, let’s take a quick look at this amazing growth story. Nvidia, for a number of years, focused on selling GPUs to video gaming companies. But, when talk of AI started to circulate about a decade ago, Nvidia knew it could play a significant role and jumped on the opportunity. The company designed GPUs for this powerful new technology, building its reputation as an expert and leader in the field.

All of this fueled massive growth in revenue, with sales climbing in the double and triple digits as the AI boom advanced. Customers rushed to Nvidia for chips and related tools to power their large language models, and Nvidia, seeing the potential ahead, pledged to innovate on an annual basis to satisfy the need for speed and efficiency. This commitment to innovation is what has kept — and should continue to keep — Nvidia ahead of the rest.

Now, let’s take a look at our question: Could Nvidia become the first company to reach $10 trillion? To reach that level, Nvidia stock would have to climb 128% to about $411, which seems like a reasonable feat for this company over, say, a five-year period. (Nvidia soared 1,200% over the past five years.) But it’s important to consider whether Nvidia’s growth rate would support such a price.

Nvidia’s price in relation to sales

We can gather clues by looking at Nvidia’s price-to-sales ratio. Today, the company trades for 23x trailing 12-month sales, but over the past year, this ratio has most often been around 25 or even higher. Nvidia’s sales reached $130 billion in the latest fiscal year, and analysts project levels of $213 billion for the current fiscal year and $316 for the next fiscal year (fiscal 2027). That suggests year-over-year growth of 63% in this fiscal year and 48% in the next fiscal year.

Now let’s use the example of $400 billion in annual revenue by the end of the decade. This represents growth of only 27% from the fiscal 2027 projected figure — a much lower growth rate than Nvidia has delivered in recent years. Nvidia could reach a $10 trillion market value in this example, because at this revenue level, the company’s P/S ratio would be 25.

This means, mathematically, it’s possible for Nvidia’s market value to reach these levels. But does it have the business to fuel such revenue gains?

I’m optimistic, and here’s why: Nvidia is the GPU market leader and is innovating to ensure its position. Meanwhile, we’re now in a major stage of infrastructure ramp-up, meaning big cloud service providers are expanding data centers to accommodate soaring AI demand. And players like Meta Platforms, aiming to train models in-house and grow their own AI programs, also are turning directly to Nvidia for its products. In fact, Nvidia has predicted that AI infrastructure spending may reach as much as $4 trillion over the coming five years.

Nvidia, which already works closely with these deep-pocketed customers, may be one of the biggest winners of this movement. And all of this could shepherd this top AI company to yet another major milestone: $10 trillion in market value by 2030.

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

The post Could Nvidia become the first $10 trillion company? 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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Adria Cimino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended 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 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.

DroneShield Ltd (ASX: DRO) shares are on the move on Tuesday morning.

At the time of writing, the counter drone technology company’s shares are up 20% to $2.76.

Why are DroneShield shares jumping?

Investors have been scrambling to buy the company’s shares this morning after it made a big announcement before the market open.

According to the release, DroneShield has received a contract valued at a total of $49.6 million from an in-region European reseller.

It notes that this European reseller is contractually required to distribute the products to a European military end-customer. However, it was not at liberty to disclose who that end-customer is.

Though, management confirmed that it does not consider the identity of the counterparty/customers to be information that a reasonable person would expect to have a material effect on the price or value of the DroneShield’s securities.

In addition, it stressed that the announcement contains all material information relevant to assessing the impact of the contract on the price or value of the DroneShield’s shares and is not misleading by omission.

What is the contract for?

The release notes that the $49.6 million contract is for handheld counter drone systems, associated accessories, and software updates.

The good news is that DroneShield has a large portion of this stock on-the-shelf. As a result, it expects to complete all deliveries in the first quarter of 2026.

Cash payments are also expected to be fully received during the same quarter and no additional material conditions need to be satisfied.

This isn’t the first order from this reseller. DroneShield revealed that it over the past three years, it has received 15 contracts from this reseller totalling over $86.5 million. And while it likely won’t be the last, there are no obligations for any additional contracts from this reseller or end-customer.

Should you invest?

The team at Bell Potter sees a lot of value in DroneShield shares at current levels.

While it hasn’t responded to this news yet, it last had a buy rating and $5.30 price target on its shares. This is more than double where they currently trade. The broker said:

We believe DRO has the market leading counter-drone offering and a strengthening competitive advantage owing to its years of experience and large R&D team, focused on detect and defeat capabilities. We expect 2026 will be an inflection point for the global counter-drone industry with countries poised to unleash a wave of spending on soft-kill detect and defeat solutions. Consequently, we believe DRO should see material contracts flowing from its $2,550m potential sales pipeline over the next 3-6 months as defence budgets roll over to FY26.

The post Why are DroneShield shares jumping 20% today? appeared first on The Motley Fool Australia.

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• Will the Droneshield share price double in 2026?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.