Telstra Group Ltd (ASX: TLS) shares pushed to fresh highs, finishing Tuesday’s session at $5.25 — a new 52-week high.

That caps off a strong run. The ASX telecom giant is now up around 28% over the past 12 months. By comparison, the S&P/ASX 200 Index (ASX: XJO) gained 9.7% over the same period.

So, what’s driving the rally? In part, it looks like investors are leaning into defensive names. In volatile markets, companies with stable earnings and reliable dividends often come back into favour. And Telstra shares fit that bill.

But after such a strong run, what comes next?

Australian dominance

Telstra’s biggest advantage is its dominant position in Australia’s telecommunications market. It has a vast mobile and broadband network, along with millions of customers, giving it scale that competitors struggle to match.

Earnings are also relatively resilient. Telecom services are essential, which means demand tends to hold up even during economic slowdowns.

The company is also benefiting from its ongoing strategy focused on improving margins and monetising its infrastructure. Investments in 5G and network quality are helping support pricing power and customer growth.

Importantly, Telstra generates strong and consistent cash flow — a key factor behind its appeal to investors.

Pressure pricing, large investments

Despite its strengths, Telstra is not without risks.

Competition remains intense, particularly in mobile and broadband. Rivals like Optus and TPG Telecom Ltd (ASX: TPG) can still pressure pricing, especially in value segments of the market.

The business also requires ongoing capital investment to maintain and upgrade its network. These costs can weigh on free cash flow at times.

Another risk is valuation of Telstra shares. After a strong rally, the share price may already reflect much of the good news. That could limit upside in the near term if earnings growth doesn’t keep pace.

Dividend appeal

One of the biggest drawcards of Telstra shares is its dividend.

The company is known for paying fully franked dividends, making it popular with income-focused investors. Its stable cash flow supports consistent payouts, and recent results have shown growth in dividends.

Last month, Telstra lifted its FY2026 interim dividend by 10.5% to 10.5 cents per share. If that momentum continues, it could deliver a fourth straight year of dividend growth.

That means that Telstra offers a solid dividend yield of around 4% at current price level.

What next for Telstra shares?

Broker views on Telstra are currently mixed.

The average 12-month price target sits around $5.20, which is slightly below the current share price. That suggests analysts see limited upside from here in the short term.

The most bullish broker has a price target of $5.60, implying about 7% upside. On the other hand, the most pessimistic view sits at $4.50, which would represent a potential 14% downside over 12 months.

In other words, while Telstra shares have delivered strong recent gains, analysts are divided on where it goes next.

The post Telstra shares hit new highs: what’s next? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther 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 Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX dividend stocks are a perfect option for investors looking for passive income opportunities. 

You’ve got your high-yield income stocks and stable blue-chip companies. Choosing the right yield usually balancing potential for risk, income and growth 

But what about the high-yield ASX dividend shares which can offer both? 

Here’s one I’d pick.

Why I’d buy Accent Group Ltd (ASX: AX1) today

Accent is a footwear and clothing retailer, wholesaler, and distributor which owns and operates more than 800 retail stores and 35 online platforms across Australia and New Zealand. Its brands include The Athlete’s Foot and Saucony, which sell athletic footwear and general sportswear. Accent also distributes well-known brands like Vans, Timberland, and Sketchers.

The company has consistently expanded, hiked its sales volumes and has benefitted from solid cash generation. 

The company recently said that it is actively pursuing a growth strategy to expand its new and high-performing brands. In FY26 it plans to open over 40 new stores in Australia and New Zealand. The company is actively shifting its portfolio away from underperforming businesses to concentrate on operational efficiency and profitability.

It’s been a tricky 18 months for the business. At the time of writing, Accent shares closed nearly 5% higher yesterday, to 90 cents per share. But they’re currently a whopping 50% lower over the past 12 months. This is mostly due to overall weakness in the footwear sector of Australia’s retail sector.

Despite this, the company has continued to pay attractive dividend yields every six months dating back to 2016.

Ascent will pay its shareholders an interim dividend of 3.25 cents per share this week, which translates to a yield around 7% based on the current share price. And it includes franking credits too.

This is well above the average ASX dividend yield which is around 5%. 

And the best part is, analysts are tipping huge growth for the year ahead.

What are analysts predicting for the ASX dividend stock and its share price?

TradingView data shows that many analysts are bullish on Ascent shares. Out of 13 analysts, five have a buy or strong buy rating and another seven have a hold rating.

But they all agree that an upside is ahead.

The average target price is $1.21 a piece, which implies around 35% upside at the time of writing. Meanwhile others think the ASX dividend stock could jump nearly 100% to $1.75.

Analysts are tipping its dividends to increase over the next year or two too. The dividend per share is projected to increase to 4.3 cents in FY26, up to 6 cents in FY27 and 8 cents in FY28. 

The post 1 ASX dividend stock down 50% I’d buy today appeared first on The Motley Fool Australia.

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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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

National Australia Bank Ltd (ASX: NAB) shares closed 0.85% higher on Tuesday afternoon, at $47.46 a piece. For the year-to-date the banking giant’s shares are 11.93% higher.

NAB has been the best-performing ASX bank stock over the past 12 months. It has outpaced its peers Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corporation Ltd (ASX: WBC) and ANZ Group Holdings Ltd (ASX: ANZ), and also other mid-tier regional bank stocks.

NAB, and the other big-four major banks, have been in the spotlight over the past 12 months after the sector soared in value in 2025 thanks to high interest rates and high-cost of living. 

NAB also reported stronger-than expected profits in its first quarter FY26 earnings result last month. The banking giant revealed a 15% hike in its cash earnings and a 6% increase in revenue. 

So, if I bought $5,000 worth of NAB shares 12 months ago, what are they worth today?

At the time of writing, NAB shares are a whopping 42.78% higher than 12 months ago.

For context, CBA shares are 21.75% higher, Westpac shares are up 38.81% and ANZ shares have hiked 30.81% over the same period.

The current share price means that an investor who bought $5,000 worth of NAB shares 12 months ago would now have $7,139!

Any investors who bought the same amount of shares 5 years ago would now be sitting on double those returns. A 83.03% five-year increase means $5,000 would now be worth a huge $9,154.

Can NAB shares keep climbing at the same rate?

Unfortunately, it’s probably unlikely.

Although some analysts haven’t given up hope just yet.

TradingView data shows that four out of 16 analysts still have a strong buy rating on NAB shares. Another six have a hold rating and six have a strong sell position on NAB’s stock.

The maximum target price is $50.64, which implies a potential 6.7% upside at the time of writing.

But some also think NAB shares could sink 11.71% to $41.90. Or worse, plummet 36.79% to just $30 a piece.

Is there any reason for investors to buy NAB shares?

Analyst forecasts are mixed, but there are other reasons that NAB shares are still a good investment option. 

The ASX bank stock is a good, stable option for investors seeking passive income. It’s a defensive stock which is able to remain stable in times of economic crisis. 

The NAB share price typically trades at a lower price-earnings (P/E) ratio than other sectors, which means investors are able to earn a higher dividend yield. The bank paid an annual dividend per share of $1.70 in FY25, which was 1 cent per share higher than FY24. This is forecast to be $1.705 per share in FY27 and $1.72 per share in FY28. 

The post $5,000 invested in NAB shares 12 months ago is already worth… appeared first on The Motley Fool Australia.

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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 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.

This ASX growth stock has been smashed in recent months. Shares in Megaport Ltd (ASX: MP1) are down around 39% year to date and roughly 49% over the past 6 months, hovering near a 52-week low.

That kind of drop would normally scare investors away. But brokers are taking the opposite view on this ASX growth stock. Many see the sell-off as an opportunity — not a warning sign.

So, could now be the perfect time to jump in?

Key enabler cloud computing

Megaport is a network-as-a-service provider. In simple terms, it helps businesses connect to cloud services like AWS, Microsoft Azure, and Google Cloud through its global software-defined network.

Instead of building their own infrastructure, customers can quickly scale connectivity up or down. This makes the ASX growth stock a key enabler of cloud computing, data centres, and AI-driven workloads.

Rapid growth, relative low cost

Megaport is exposed to powerful long-term tailwinds. Demand for cloud computing, artificial intelligence, and data transfer continues to grow rapidly.

The company’s platform is also highly scalable. Once built, it can add customers with relatively low incremental cost — a key feature of successful tech businesses.

Importantly, analysts expect strong growth ahead. Forecasts suggest revenue could grow more than 20% annually, with earnings accelerating even faster as the business scales.

Megaport is also building out new services, including cloud and compute offerings, which could expand its addressable market further.

Fast-moving industry

Despite the growth story, there are real risks.

Megaport is still not consistently profitable. Its recent half-year result showed a statutory loss of about $19 million, which weighed on investor sentiment. This included acquisition costs of $15.8 million that were incurred.

The company also operates in a competitive and fast-moving sector. Larger players and evolving technology could pressure margins or market share over time.

And after years of hype, investor expectations remain high. When results don’t fully impress, the price of an ASX growth stock can fall sharply — as recent months have shown.

What next for the ASX growth stock?

Here’s where things get interesting.

Analysts remain overwhelmingly bullish on Megaport despite the heavy share price decline. The stock currently carries a consensus buy rating, with the majority of brokers recommending it as a strong buy.

The average 12-month price target sits around $15.58, implying roughly 111% upside from current levels.

And the most bullish analysts see even more potential for the ASX growth stock. The highest price target is $23.98, suggesting a massive 225% upside if the company delivers on its growth plans.

Foolish Takeaway

Megaport is not a low-risk investment. The company is still scaling, still investing, and still proving its long-term profitability.

But that’s exactly why the opportunity may exist.

With the share price near a 52-week low and analysts tipping triple-digit upside, Megaport could be one of the more compelling ASX growth stocks to watch in 2026 and beyond.

The post 1 ASX growth stock that could skyrocket in 2026 and beyond appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther 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 Megaport. 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.

S&P/ASX All Ords Index (ASX: XAO) shares finished higher on Tuesday amid an 0.25% lift in interest rates as the Iran war raged on.

The Reserve Bank of Australia said the board decided to raise rates due to a recent inflation uptick and higher oil prices resulting from the war.

This was the second rate rise of 2026 so far, with the cash rate now 4.1%. The RBA also lifted rates by 0.25% last month.

In a statement, the board said:

While inflation has fallen substantially since its peak in 2022, it picked up materially in the second half of 2025. Information since the February meeting suggests that some of the increase in inflation reflects greater capacity pressures.

In addition, the conflict in the Middle East has resulted in sharply higher fuel prices, which, if sustained, will add to inflation. Short-term measures of inflation expectations have already risen.

As a result, the Board judged that there is a material risk that inflation will remain above target for longer than previously anticipated.

The RBA’s inflation target band is 2% to 3%, and the board is aiming to reach 2.5% over time.

While the ASX All Ords index gained value yesterday, several shares tumbled to 52-week lows.

Do they present a buying opportunity? Let’s find out.

ASX All Ords shares trading at 52-week lows

Megaport Ltd (ASX: MP1)

The Megaport share price fell to a 52-week low of $7.26 on Tuesday.

The ASX All Ords tech share is down 26% over 12 months.

This month, Canaccord Genuity retained its buy rating with a 12-month price target of $14.30.

Citi also kept its buy rating on the ASX All Ords tech share; however, it reduced its target from $15.75 to $14.65.

This implies a more than 100% potential upside from yesterday’s low.

Pinnacle Investment Management Group Ltd (ASX: PNI)

The Pinnacle Investment Management Group share price fell to a 52-week low of $13.15 yesterday.

Morgans sees the valuation tumble for this investment management company as a buying opportunity.

The broker upgraded the ASX All Ords financial share from accumulate to buy last month after reviewing the company’s 1H FY26 results.

Morgans said:

PNI’s 1H26 NPAT (~A$67m, -11% on the pcp) came in -4% below consensus, but it was more in line excluding one-offs (e.g. mark-to-market investment impacts).

Overall, we saw the 1H26 result as compositionally stronger than the headline numbers suggested, and positively accompanied with a move-the-dial acquisition.

The broker reduced its 12-month share price target from $26.30 to $23.21.

This suggests a potential 77% upside from the stock’s 52-week low on Tuesday.

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price fell to a 52-week low of $6.41 yesterday.

The ASX All Ords retail share is down 61% over 12 months.

Last week, Macquarie reiterated its buy rating on Temple & Webster shares with a price target of $13.70.

This implies a potential capital gain of 110% over the next 12 months.

Bell Potter also has a buy rating with a $13 price target on the ASX All Ords retail share.

The post Are these 3 ASX shares at 52-week lows going cheap? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen 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, Megaport, Pinnacle Investment Management Group, and Temple & Webster Group. The Motley Fool Australia has positions in and has recommended Macquarie Group and Pinnacle Investment Management Group. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX Small Ords Index (ASX: XSO) is slightly in the red, down 0.056% today, and down 10.4% since the Iran war began.

By comparison, the S&P/ASX 300 Metal & Mining Index (ASX: XMM) is up 0.43% today, and down 14.4% since 1 March.

As we reported earlier, ASX mining shares have been hit harder than any other market segment since the war broke out.

However, the fundamental drivers of a new commodities supercycle powering a fresh long-term mining boom remain in place.

They include the green energy transition, a desire worldwide for more sovereign manufacturing, energy security, and supply constraints.

With ASX shares experiencing their worst fortnightly fall in almost four years as investor sentiment weakens, perhaps there is an opportunity to buy the dip on some mining stocks in the small-cap space?

Morgans recently gave these two ASX small-cap mining shares a speculative buy rating.

Here’s why.

Astron Ltd (ASX: ATR)

The Astron share price is 70 cents, down 0.7% on Tuesday and up 12% over the past 12 months.

Astron is focused on developing its rare earths and mineral sands project, Donald, in Victoria. It also runs a processing plant in China.

A recent update from the company prompted Morgans to issue a new note retaining its speculative buy rating.

The broker said:

The Donald Project resource update confirms strategic heavy rare earth exposure, with improved definition of Dy and Tb supporting the project’s importance to Western rare earth supply chains.

Strong strategic backing from Energy Fuels (UUUU.NYS), with the Donald Project to supply REEC feedstock to its White Mesa Mill in the US, where rare earth prices are currently materially higher than in China.

Morgans has a 12-month share price target of 90 cents on this ASX small-cap mining share.

Torque Metals Ltd (ASX: TOR)

The Torque Metals share price is 48 cents, up 4.8% today and up 382% over the past 12 months.

Torque Metals is developing the Paris Gold Project in Western Australia.

Paris has a Mineral Resource Estimate (MRE) of 2,518Kt at 3.1g/t gold for 250,000 ounces. 

Last week, Torque announced that three former managers at Spartan Resources are joining its new management team.

They are non-executive chair, Simon Lawson, CEO and managing director, Craig Jones, and non-executive director, David Coyne.

Ramelius Resources Ltd (ASX: RMS) acquired Spartan Resources in July 2025.

In a new note, Morgans maintained its speculative buy recommendation on this ASX small-cap gold mining share.

The broker has a 12-month share price target of 90 cents.

The post 2 ASX small-cap mining shares rated buy: Morgans appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen 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.

Investors caught a break in what was a mildly positive Tuesday session for the S&P/ASX 200 Index (ASX: XJO) and many ASX shares.

After starting strong this morning, the ASX 200 took a brief dip into negative territory in afternoon trading. But investors’ feet warmed back up by the time the markets closed, with the index lifting 0.36% to 8,614.3 points.

This happier trading session came after a bullish start to the American trading week in the early hours of this morning.

The Dow Jones Industrial Average Index (DJX: .DJI) rose by an optimistic 0.83%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) fared even better, gaining a solid 1.22%.

But let’s return to the ASX now and take stock of how the various ASX sectors enjoyed (or not) today’s renewed sense of optimism.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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 Telix Pharmaceuticals. The Motley Fool Australia has recommended Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Bell Potter has been running the rule over a number of small-cap ASX healthcare stocks this week.

Let’s see what the broker is saying about these speculative stocks.

Immutep Ltd (ASX: IMM)

Immutep is a clinical-stage biopharmaceutical company focused on developing novel LAG3 immunotherapy for cancer and autoimmune disease.

Its shares were sold off this month after its lead drug, Efti, failed the futility analysis in its global Phase 3 trial in non-small cell lung cancer. Bell Potter notes that this “is a bitterly disappointing and surprising outcome considering the strength of the company’s prior Phase 1 and Phase 2 lung cancer data.”

As a result, it has downgraded its shares to a speculative hold rating with a 7 cents price target (from 65 cents). It said:

We downgrade to a Hold recommendation and $0.07 valuation. We tentatively estimate IMM will end up with ~$60m of cash (4c/sh) following wind-down of the global Phase 3 trial and other Efti development activities, assuming no repayments to Dr Reddy’s are necessary.

In addition to cash, IMM retains the earlier-stage IMP761 asset which it will continue to progress for treating autoimmune conditions. The early stage of IMP761’s development (no data in patients) leads us to exclude any material contribution from our valuation at this time.

Oneview Healthcare PLC (ASX: ONE)

Another ASX healthcare stock that Bell Potter has been looking at is Oneview.

Its Care Experience Platform (CXP) is a unified set of digital tools in a single bedside solution that connects patients, families, and care teams with services, education, and information during hospital stays.

Bell Potter is positive on the company’s growth outlook and has put a speculative buy rating and 45 cents price target on its shares. It said:

There is no change to our earnings estimates but we have reduced our DCF valuation by c.10% to $0.45/sh following FX appreciation and share count adjustments. We assume c.20% annual growth in live endpoints from FY26e-FY28e to drive our FY28e U. EBITDA breakeven expectation.

Given ONE’s track record, this is no small feat. In the face of improving thematics and the need for hospitals to utilise efficiency tools to plug the operating impact of nurse shortages, we remain cautious ahead of more consistent performance on conversion and financial performance.

PYC Therapeutics Ltd (ASX: PYC)

Finally, PYC is a clinical-stage biotechnology company that is developing multiple drug candidates for rare inherited diseases.

Bell Potter notes that “following a Type D meeting with the FDA, PYC provided key elements of the Phase 3 trial design for its novel drug candidate, VP-001.”

And thanks to its recent $600 million capital raise, PYC has the benefit of >$700 million in cash, with runway into at least 2030 according to the broker. As a result, Bell Potter believes the company is “incredibly well capitalised to execute over the next several years on its clinical development programs without having to come back to investors for additional capital.”

For this reason, it has put a speculative buy rating and $2.30 price target on its shares. It said:

There are no changes to our BUY (spec.) recommendation or $2.30/sh valuation. The catalysts most likely to drive enthusiasm include additional RP11 readouts from the Phase 1/2 trial (expected Q4 CY26), clinical data in patients in the PKD trial (CY27 to CY28), and any potential licensing partnerships for the ophthalmology programs.

The post How does Bell Potter rate these ASX healthcare stocks appeared first on The Motley Fool Australia.

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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 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.

Shares in Nvidia Corp (NASDAQ: NVDA) moved higher overnight after the chip giant’s Chief Executive delivered a major update on the company’s artificial intelligence outlook.

At the close of trade, the Nvidia share price finished 1.65% higher at US$183.22.

The gain came after CEO Jensen Huang outlined the scale of the opportunity ahead for the company’s AI processors.

Here’s the latest information.

Nvidia CEO outlines huge AI revenue opportunity

Speaking at the company’s GTC developer conference in San Jose, Huang said Nvidia now sees at “least US$1 trillion” in potential revenue tied to its latest generation of AI chips.

The projection relates primarily to Nvidia’s new Blackwell and Rubin chip architectures. These are designed for large-scale AI computing and data centre workloads.

According to the presentation, the chips are expected to power the next wave of AI infrastructure. This comes as major technology companies continue investing heavily in data centres and advanced computing systems.

The forecast effectively doubles the US$500 billion opportunity the company previously outlined late last year.

Huang told attendees the scale of demand from hyperscale cloud providers and enterprise customers continues to grow rapidly as AI applications expand.

New AI systems and infrastructure revealed

During the event, Nvidia also introduced new computer systems designed to run AI faster.

One of the key announcements was a new server platform that combines 72 of Nvidia’s next generation Vera Rubin chips with advanced networking and memory technology.

The systems are designed to handle large AI workloads much faster than earlier hardware.

Nvidia said the platform can produce hundreds of millions of AI tokens per second, which means AI models can generate responses more quickly.

These upgrades are designed to support the growing demand for AI inference, which is when trained AI models are used in real-world applications. This includes chatbots, search tools, and other software.

Nvidia remains central to the AI boom

Nvidia has become one of the most important companies in the global AI supply chain.

Its graphics processing units (GPUs) are widely used by technology companies building and operating large language models and other AI tools.

Demand for these chips has surged over the past 2 years as businesses accelerate spending on AI infrastructure.

The company’s most recent quarterly results highlighted the scale of that growth. Nvidia reported revenue of US$68.1 billion for the quarter, representing 73% year-on-year growth.

That rapid expansion has cemented Nvidia’s position as a critical supplier to the world’s largest tech companies.

The post Nvidia CEO reveals massive US$1 trillion AI chip opportunity 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 positions in and has recommended Nvidia. The Motley Fool Australia has recommended Nvidia. 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 are having a day to forget on Tuesday.

After trading largely flat for most of the session, the ASX defence stock is now down 25% to $8.00 in late trade.

Why are EOS shares crashing today?

The company’s shares are crashing following the release of an announcement detailing significant insider selling after the exercise of options.

According to the release, EOS’ CEO and managing director, Dr Andreas Schwer, the CFO/COO Clive Cuthell, and other members of the management team have exercised a total of 3,429,299 options to acquire 3,299,599 EOS shares.

These options were granted under the company’s long-term incentive plan after performance and service hurdles were met during the 2024 and 2025 financial years.

Management was able to exercise the majority of these options for just 50 cents each.

Planned share sales

However, rather than hold onto these shares, senior executives intend to sell a large portion of them.

The release notes that its CEO, Dr Schwer, has been approved to dispose of up to 2,500,000 shares in the near term, with the final number to be determined within that limit.

Based on yesterday’s close price of $10.72, these shares had a market value of $26.8 million.

The company notes that this planned disposal is intended to allow him to fund personal expenses, including the construction of a family home and a divorce settlement.

In addition, the CFO/COO and other members of the management team have indicated that they also intend to dispose of some or all of their shareholdings in the near term.

Minimum holdings still met

Despite the planned disposals, the company expects that both Dr Schwer and Mr Cuthell will retain shareholdings well above the minimum levels required under its recently announced shareholding policy.

This is a minimum of four times the CEO’s fixed annual remuneration and three times the CFO/COO’s fixed annual remuneration.

Nevertheless, investors appear to be reacting negatively to the scale of the potential insider selling.

After all, insider selling is often seen as a bearish indicator, as few insiders would be happy to part with their shares if they felt that they were about to increase in value.

The post Why are EOS shares crashing 25% today? appeared first on The Motley Fool Australia.

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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.