Receiving ASX passive income can be very rewarding because of how simple it is for the cash flow to hit the bank account every year. Depending on how much we invest and the dividend yield, investors can get an average of $100 per month, $1,000 per month or even more.

Most businesses try to make a profit every year and companies can decide how much of that profit to pay to shareholders each year as a dividend.

Some companies have been able to grow their earnings significantly over the years, leading to a substantial increase in the dividend payout.

Where I’d invest for ASX passive income

I believe investing should be done with a long-term mindset. It doesn’t necessarily matter what dividend yield a stock pays this year if there’s going to be a large cut next year. Ideally, I’d want to choose investments that seem like they can grow their earnings and increase the payouts in the coming years.

Some businesses have already built a record of steady ASX passive income growth and still have plenty of growth potential, in my opinion.

For example, Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) has grown its annual dividend every year since 2000.

Collins Foods Ltd (ASX: CKF) has grown its annual dividend every year since 2014.

Universal Store Holdings Ltd (ASX: UNI) has grown its dividend each year since it started paying one in 2021.

Brickworks Limited (ASX: BKW) has grown its dividend every year since 2014.

Propel Funeral Partners Ltd (ASX: PFP) has increased its annual payout each year since 2021.

Wesfarmers Ltd (ASX: WES) has grown its annual dividend each year since 2021.

I believe each of these businesses is capable of growing their dividend every year for the next five years. Growing earnings can help deliver share price growth because investors are usually willing to pay more for a business that’s earning more.

I also regularly write about some higher-yield ASX dividend shares, though businesses with a higher dividend payout ratio are less likely to grow their payouts consistently.

How to make $1,000 of dividends per month

Australians have the benefit of receiving franking credits, which can boost the after-tax dividend yield for investors.

To receive an average of $1,000 per month of ASX passive income, we’re talking about $12,000 per year. That’s a lot of dividends, but it’s certainly possible for most people to build up to that amount, thanks to compounding.

If someone’s portfolio had a 5% dividend yield, it would need a portfolio value of $240,000. If it had a 4% dividend yield, it would require a portfolio value of $300,000.

How long could it take to reach that amount? If someone invested $1,000 per month and it returned an average of 10% (including re-investing dividends), it’d take around 11 years to reach approximately $240,000, and it’d take 15 years to reach $300,000.

The post ASX passive income: How to make $1,000 per month appeared first on The Motley Fool Australia.

More reading

• Bell Potter names the best ASX retail stocks to buy in FY25
• What is the outlook for ASX 200 dividend shares in FY25?
• Beginner investors: I suggest you start with these 2 ASX dividend powerhouses for decades of income
• Can Wesfarmers shares keep beating the ASX 200 index?
• Buy Rio Tinto and these ASX dividend shares in July

Motley Fool contributor Tristan Harrison has positions in Brickworks, Collins Foods, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Brickworks, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has recommended Collins Foods. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ANZ Group Holdings Ltd (ASX: ANZ) shares performed substantially better than the S&P/ASX 200 Index (ASX: XJO) in FY24. ANZ shares rose by 19% over the 12 months to 30 June 2024, compared to an index rise of around 8%.

Considering ASX bank shares make up a sizeable part of the ASX 200’s returns, it may be surprising to see that ANZ shares delivered outperformance of more than 10%.

ANZ’s financial calendar doesn’t finish in June, it runs to September. So, while the Australian tax year finished on 30 June 2024, there are still a few more months to go for ANZ’s 2024 financial year.

Investors often pay the most attention to the latest six-month result when it comes to valuing a business, so let’s remind ourselves what the bank reported less than two months ago.

Earnings recap

In May, ANZ reported its result for the six months to 31 March 2024 and advised that statutory net profit after tax (NPAT) fell 4% to $3.4 billion compared to the second half of FY23, while cash NPAT declined by 1% to $3.55 billion.

The ASX bank share revealed its total provision charge decreased by 38% to $70 million, with the individual provision charge declining by 69% to $38 million. Arrears are performing better than some investors may have expected in this high interest rate environment.

However, the net interest margin (NIM) fell slightly from 1.65% in the second half of FY23 to 1.63% for the first half of FY24, excluding the impact of ‘markets’ activities. Further declines in the NIM may not be helpful for ANZ shares.

The bank generated productivity cost savings during the period across technology services ($62 million), head office enablement ($59 million), customer service and distribution ($36 million), product management ($29 million), and banking services and transaction processing ($15 million).

The bank also announced that the total dividend per share was hiked by 2% to 83 cents, compared to the FY23 second-half payout.

Management commentary

The ANZ CEO Shayne Elliot had a number of positives to say about the bank’s performance in HY24:

This half’s strong performance is a direct consequence of peer-leading diversification as well as our disciplined focus on productivity and delivery.

Our preparations to integrate Suncorp Bank are well advanced. While the time taken to progress the necessary approvals has taken longer than anticipated, we have used that time productively and we are more confident than ever about the benefits that will follow.

Elliot said the bank’s flagship digital offering, ANZ Plus, had grown to almost 690,000 customers and approaching $14 billion in deposits at the end of April – and the ability to create joint accounts had been introduced. He added:

Net promoter scores are consistently higher than our peers, while attracting on average 35,000 customers every month, around half of which are new to the bank.

Acquisition approved

ANZ has attempted to buy the banking operations of Suncorp Group Ltd (ASX: SUN) for several years.

Federal Treasurer Jim Chalmers recently approved the deal. This stage was one of the main roadblocks to the acquisition’s progress.

A bigger ANZ, particularly with a larger presence in Queensland, could give it more scale benefits, deliver a better growth profile, and, if the integration goes according to plan, generate bigger overall profits and pay larger dividends.

ANZ share price snapshot

Since the start of 2024, the ANZ share price has lifted around 9%, compared to a 1% rise for the ASX 200.

The post ANZ shares smashed the ASX 200 return in FY24 appeared first on The Motley Fool Australia.

More reading

• What is the outlook for ASX 200 dividend shares in FY25?
• These were the five best ASX bank shares to own in FY24
• Are Qantas or ANZ shares a better buy?
• Why Delta Lithium, IAG, Mirvac, and Suncorp shares are climbing today
• ANZ shares higher on ‘significant’ $4.9b Suncorp Bank acquisition approval

Motley Fool contributor Tristan Harrison 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.

A big pay day is coming soon for shareholders of one ASX stock.

That’s because this company has just announced a special dividend that will provide investors with a mouth-watering dividend yield.

Which ASX stock?

The ASX stock that is rewarding its shareholders is Red Hill Minerals Ltd (ASX: RHI).

It is an iron ore, gold, and base metals explorer based in the West Pilbara region of Western Australia.

While the company has a number of projects in its portfolio, the key one was the Onslow Iron Project. The company had a 40% stake in the project through the Red Hill Iron Ore joint venture.

It recently completed the sale of its interest in the joint venture to mining giant Mineral Resources Ltd (ASX: MIN) following last month’s delivery of the first shipment of ore from the Onslow Iron Project to China Baowu Steel Group.

This shipment triggered the second payment of $200 million to the ASX stock from Mineral Resources.

Red Hill’s executive chairman, Joshua Pitt, said:

Our Company worked closely within the RHIOJV over many years to advance this Project and found in MinRes an excellent team that is close to achieving the rare feat of completing a major project development, the Onslow Iron Project, on time and within budget. This second payment to the Company, followed by the royalty revenue stream generated from our royalty interest in the Project should benefit our shareholders while funding an effective gold and base metal exploration effort.

Special dividend

This morning, the ASX stock revealed that it has decided to return to shareholders funds raised from the Mineral Resources payment. It said:

[I] has resolved to pay a special dividend of $1.50 per ordinary share, fully franked at 25%. The dividend will be sourced from the second of two $200 million payments received from Mineral Resources Limited for the sale of the Company’s 40% interest in the Red Hill Iron Ore Joint Venture.

Based on its current share price of $7.13, this $1.50 per share pay out represents a whopping 21% dividend yield.

In order to receive this dividend, investors need to buy the ASX stock before it trades ex-dividend on 9 July. After which, payment will be made 10 days later on 19 July.

Pitt commented:

We congratulate Mineral Resources on achieving first ore on ship from the Onslow Iron Project. This milestone has resulted in the payment of the second $200 million and has triggered the commencement of our 0.75% royalty stream. It has enabled our Board to declare the Company’s sixth consecutive dividend and provides a great platform for the future.

The post This ASX stock just announced a special dividend with a 20% yield appeared first on The Motley Fool Australia.

More reading

• Bell Potter names the best ASX mining stocks to buy in FY25
• These were 3 of the worst-performing ASX 200 stocks in June. Time to buy the dip?
• Down 25% in a month: Are Mineral Resources shares dirt cheap?
• Why Guzman y Gomez, KMD, Mineral Resources, and Pilbara Minerals shares are sinking
• Mineral Resources shares fall on big iron ore news

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.

The Sayona Mining Ltd (ASX: SYA) share price is lifting off today.

Shares in the S&P/ASX 300 Index (ASX: XKO) lithium stock closed yesterday trading for 3.4 cents. In morning trade on Wednesday, shares are swapping hands for 3.5 cents apiece, up 2.9%.

For some context, the ASX 300 is up 0.2% at this same time.

Here’s what’s happening.

New leadership for ASX lithium miner

The Sayona Mining share price is marching higher after the North American lithium producer announced that Lucas Dow will take over as managing director and CEO as of today, 3 July.

Lucas is a relative newcomer to Sayona Mining, having joined the board only back in February.

He’ll take over from interim CEO James Brown, who will remain executive director until 31 January 2025 to facilitate the handover and ensure business continuity.

Dow is a mining engineer with extensive executive and hands-on operational experience in mining and renewable energy.

Commenting on his appointment, which is boosting the Sayona share price today, he said, “I am thrilled to lead a company with such outstanding potential.”

 Dow added:

Sayona is fortunate to have multiple emerging tier one assets including North American Lithium (NAL) and Moblan, which will underpin the success of the business into the future.

Commenting on the successful ramp-up of NAL, Dow said:

The operation is now delivering industry leading results for plant utilisation and recovery both of which are a testament to the commitment and leadership of James and the operational team in Quebec.

Interim CEO Brown said, “The board is pleased to appoint Lucas as the MD & CEO to lead Sayona through the next stages of the company’s development.”

Brown continued:

We are fortunate to have secured someone with such extensive technical and corporate experience. I am confident that under Lucas’ leadership, Sayona will further enhance its market position with a dynamic future and a steadfast commitment to excellence in the lithium sector.

Separately, Sylvain Collard was appointed president and COO of Sayona’s Canada operations. Collard joined Sayona in 2022 and is a specialist in mine project management for both open pit and underground mines.

Commenting on that appointment, Brown said:

With extensive experience in mine project management and operations across diverse environments, including significant roles at IAMGOLD and various mining projects in Canada and abroad, Sylvain is ideally positioned to lead our strategic initiatives in Québec and drive continued growth and excellence.

Sayona Mining share price snapshot

If you look back to the chart up top, you’ll see the rather dismal year Sayona has faced amid cratering lithium prices. That rout sees the Sayona Mining share price down 79% over 12 months.

The post Sayona Mining share price lifts off on new CEO appointment appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
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• Why is short interest in Sayona Mining shares growing?
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• Why are Sayona Mining shares outperforming other ASX lithium stocks today?

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.

It’s that time of year again when investors check their leaders and laggards and potentially rotate into cheap ASX 200 stocks. Analysts have already started the process.

Deterra Royalties Ltd (ASX: DRR) has caught Goldman Sachs’ attention. In a Tuesday note, the broker revised its rating on the ASX 200 stock from a hold to a buy.

Goldman’s note puts it out of sync with the consensus rating of hold, per CommSec.

Deterra on the other hand has opened Wednesday’s session at $4.10 apiece, up 1.87%. This produces a dividend yield of 7.29% with its trailing dividend of 30 cents per share.

Here’s a closer look at the reasons behind Goldman’s revised rating.

Goldman upgrades ASX 200 stock

Goldman Sachs has revised its forecasts on Deterra’s earnings per share (EPS) for FY24-26 by 2% in both years based on a better iron ore and forex outlook.

It also notes the large sell-off of the ASX 200 stock following management’s decision to acquire Trident Royalties Plc for $276 million. This, it says, could mean the stock is undervalued.

The market initially reacted negatively, with a sharp drop in share price. This was possibly furthered by Deterra’s decision to alter its dividend policy. Moving forward, it will move from paying 100% of net profit after tax (NPAT) to a minimum of 50%.

However, Goldman Sachs believes this move positions Deterra for long-term growth, backed by its strong balance sheet:

[U]ndervalued: The stock is trading at ~0.8x NAV, and pricing in ~US$64/t 62% [iron ore] Fe vs. spot at ~US$105/t and our long run US$78/t (real $, from 2028) 62% Fe iron ore price forecast.

Deterra is trading on c. 10x EBITDA for FY25 versus global precious in ~15x and bulk royalty companies ~5x.

The broker mentioned Deterra’s approximate 7% free cash flow and dividend yield implied for FY24, which is “broadly in line with major iron ore producers”. It also leaves its dividend forecast at 100% of NPAT for FY24.

Strong balance sheet

With a net cash position of $30 million and access to a $500 million debt facility, Goldman says Deterra could be well-placed to pounce on future opportunities.

[Deterra] will have ~A$30mn net cash at end of June on our estimates and has access to an A$500mn undrawn debt facility and we believe they are well positioned to capitalise on potential growth opportunities in the current high rate debt environment, including the Trident acquisition and potential other opportunities.

Aside from that, the ASX 200 stock is ” less leveraged” compared to other iron ore miners “given the high margin nature of [its] royalty business”.

Interestingly, Goldman analysts also took a peek at Trident’s potential advantages, noting that it has a portfolio of various gold offtakes.

Based on Trident’s 2023 financial result, we note underlying earnings were essentially 0 and [greater than] 60% of earnings come from the gold offtake agreements which DRR noted [it] will look to divest.

Goldman set a price target of $4.70 per share on the ASX 200 stock. This equates to a multiple of 12 times the next 12 months’ earnings before interest, tax, depreciation and amortisation (EBITDA).

Foolish takeaway

According to some experts, Deterra’s sharp sell-off in recent weeks could be an overreaction. For this ASX 200 stock, the upgrade from Goldman Sachs suggests investors are thinking long-term.

In the last 12 months, Deterra shares are down 10%. This is an underperformance of nearly 17% versus the S&P/ASX 200 Index (ASX: XJO).

The post Goldman Sachs just upgraded this ASX 200 stock to a buy appeared first on The Motley Fool Australia.

More reading

• 5 potentially cheap ASX shares being bought by insiders
• Top ASX passive income shares to buy before June 30
• Why Core Lithium, Deterra Royalties, Northern Star, and Opthea shares are dropping
• ASX 200 stock nosedives 10% on new lithium play
• Guess which ASX 200 mining stock is making a $276m UK acquisition

Motley Fool contributor Zach Bristow 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 Goldman Sachs Group. 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.

ASX artificial intelligence (AI) shares have been all the rage in 2024. By all accounts, AI is set to revolutionise the way we eat, sleep, and think. You name it, and AI will probably have an impact on it at some point in the future.

What’s exciting is that ASX-listed companies are among the cohort leading this wave of innovation. Even more exciting is that investors now have many means to gain exposure to AI themes.

For instance, the Global X Fang+ ETF (ASX: FANG) exchange-traded fund (ETF) enables investors to buy AI-linked stocks without overextending the risk budget. According to my colleague Tristan, the ETF has delivered annualised returns of 21% since 2021 and contains many of the US tech behemoths driving the AI impulse.

For investors eyeing individual AI stocks on the ASX, Life360 Inc (ASX: 360), Megaport Ltd (ASX: MP1), and Dicker Data Ltd (ASX: DDR) offer promising prospects for FY 2025, according to analysts. Here’s a closer look.

ASX AI share Life360 in focus

One of the more successful growth stories in FY 2024 was Life360. The company’s share price has surged 105% this year, closing at $15.73 on Tuesday.

The company’s core product, a smartphone app for location sharing, has become indispensable for families. It helps track children, elderly individuals, and those with special medical needs.

In Q1 CY2024, Life360’s revenues jumped 15% year-over-year to US$78.2 million, while operating cash flow rose to US$10.7 million.

Analysts from Morgan Stanley are bullish on the ASX AI share, noting Life360’s vast data collection capabilities as a major AI advantage.

Solaris Investment Management is also optimistic. Chief investment officer Michael Bell recently praised Life360’s aggressive subscriber growth, which now boasts 66 million users. This expansive user base provides valuable data, fuelling AI-driven innovations.

Megaport in the AI revolution

Megaport’s shares, which are currently trading at $10.96 apiece, have climbed more than 50% over the past year.

The company offers Network as a Service (NaaS), connecting businesses to cloud services, which is crucial for AI integration.

In its latest quarterly update, Megaport reported a 30% revenue increase to $49.5 million and a 92% rise in EBITDA to $14 million. Founder Bevan Slattery’s ongoing strategic advisory role adds confidence, according to my colleague Bron. These are important takeouts for investors seeking exposure to ASX AI shares, in my view.

Goldman Sachs rates Megaport a buy with a $14.85 per share price target on its stock. In an April note, the broker says the ASX AI share was well positioned for growth in FY25:

We believe MP1 will benefit from strong structural tailwinds from the adoption of public cloud including multi-cloud usage and the transition towards NaaS technologies.

[W] are buy rated on the name as we remain confident MP1 has a clear product advantage vs. peers and a decade-long runway for robust growth.

Dicker Data – ASX AI share with mixed ratings

Dicker Data recently received a neutral rating upgrade from Goldman Sachs. The company’s strong balance sheet and defensive revenues are key highlights in the investment debate, Goldman says.

The broker set a price target of $9.85 per share, which indicates a potential 4% upside from Dicker’s closing price of $9.56 apiece at the time of writing.

Furthermore, the broker notes that effective inventory management and higher free cash flow generation could provide additional growth.

This, its high margins relative to peers, and “tight inventory management” means Dicker is well capitalised to grow its business – and potentially shares – in FY 2025.

The company had “a modest sales growth outlook of mid-single digit FY23-26E CAGR and appears fairly valued compared to peers and its cash flow generation potential”, Goldman said.

Foolish takeaway

Life360, Megaport, and Dicker Data are three ASX AI shares well-positioned to grow in FY 2025, experts say.

Life360’s extensive data collection, Megaport’s essential cloud connectivity services, and Dicker Data’s solid financial management could be standouts.

However, it’s crucial to consider the risks involved and remember that past performance is not a guarantee of future results.

The post Here’s the outlook for 3 ASX artificial intelligence (AI) shares in FY25 appeared first on The Motley Fool Australia.

More reading

• Shares vs. property: Which delivered the best growth in FY24?
• Leaders and laggards of the ASX market sectors in FY24
• Here’s how the ASX 200 market sectors stacked up last week
• Why this ASX ETF is one of the best ways to invest in artificial intelligence (AI)
• 2 exciting ASX growth shares to buy in July

Motley Fool contributor Zach Bristow 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 Life360 and Megaport. The Motley Fool Australia has positions in and has recommended Dicker Data. The Motley Fool Australia has recommended Megaport. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Rincon Resources Ltd (ASX: RCR) shares are among the best performers on the market on Wednesday.

In morning trade, the ASX mining stock is up a sizeable 14% to 12 cents.

Why is this ASX mining stock rocketing?

The catalyst for this strong gain has been the release of an announcement from the mineral exploration company today.

According to the release, Rincon Resources has received aboriginal heritage clearance for drilling activities to commence at the West Arunta Project in Western Australia.

The ASX mining stock will now be able to drill its high-priority Avalon niobium and rare earth elements (Nb-REE) target, as well as the Sheoak, K1, and K2 targets.

Management is particularly positive about its Avalon gravity anomaly. It highlights that the anomaly is comparable in size to the one underlying the Luna deposit owned, which is owned by WA1 Resources Ltd (ASX: WA1). That deposit was recently confirmed as the most significant niobium discovery globally in over 70 years with an inferred mineral resource estimate of 200Mt @ 1.00% Nb2O5.

Rincon Resources has planned an initial 3,000m diamond drilling/reverse circulation (DD/RC) drill program to primarily test the source of the Avalon gravity target. It will also test the 3 km lateral extent of weathered zone where potential niobium enrichment may be present.

Drilling is set to begin in the middle of July following the completion of site works. These activities will be supported by a recent $5.6 million capital raising.

‘We are excited’

The ASX mining stock’s managing director, Gary Harvey, revealed that the company was excited to start its drilling activities. He said:

We are excited to commence drilling at our Avalon target, which we interpret as a potential carbonatite intrusion with niobium and rare earth element (Nb-REE) enrichment in the upper weathered profile. The size and characteristics of the Avalon anomaly, compared to recent significant discoveries in the region, heighten our anticipation for this program.

The Luni discovery by WA1 Resources has demonstrated the potential for world-class niobium deposits in the West Arunta region. With Avalon’s comparable size, we are eager to explore its full potential. With $5.6 million recently raised, our strong financial position enables us to aggressively pursue these opportunities and potentially extend our initial program should positive results warrant it.

Following today’s gain, this mining stock has now doubled in value over the last 12 months. Though, it still only has a market capitalisation of approximately $34 million.

The post ‘We are excited’: Why this ASX mining stock is rocketing 14% appeared first on The Motley Fool Australia.

More reading

• Why James Hardie, Mader Group, MMA Offshore, and WA1 shares are dropping today
• Why this ASX mining stock just got a huge broker upgrade
• Why Chrysos, Hansen Technologies, Pantoro, and WA1 Resources shares are pushing higher
• 2 ASX mining shares rocketing over 16% on big news

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.

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

Nvidia (NASDAQ: NVDA) share prices have recently reversed course after seemingly pushing higher for months without a breather. The stock now trades nearly 13% off its intraday high price of over $140 per share hit last month.

There is one Wall Street analyst who thinks shares of the artificial intelligence (AI) leader will soon rebound and even exceed its all-time high. Morgan Stanley analyst Joseph Moore put out a new note on Nvidia on Monday increasing his price target from $116 to $144 per share. Moore determined that share price based on what he sees as a jump in earnings per share (EPS) through next year. Moore thinks Nvidia stock is worth buying as his new price target would represent a gain of about 17.5% from its current price.

Nvidia’s “compelling narrative”

After data checks pointed to strong demand in China and Taiwan, as well as the U.S., Moore raised his EPS estimate for the semiconductor giant from $2.94 to $3.34 per share for next year. Moore believes Nvidia, “remains the most compelling narrative in the AI [semiconductor] space, and as we transition from H100 to H200 and then Blackwell, visibility and backlog will improve materially.”

That last point is the key to an investment in Nvidia right now. Even after its recent correction, Nvidia shares had run up ahead of revenue and earnings growth. In other words, further growth is already built into the stock price to some extent.

But even as Nvidia prepares to begin bulk shipments of its new, Blackwell AI platform, its H100 and H200 graphics processing units (GPUs) are still in high demand. That’s because many of Nvidia’s customers have been waiting in line to get these high-strength computing chips needed for training generative AI models.

Those sales will remain strong even as shipments of the new Blackwell chip accelerate. That’s why investors should still feel comfortable buying Nvidia shares. Even after the massive gains, there is a strong base of sales, and an even stronger pipeline of new AI products ahead.

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

The post Is Nvidia stock going to $144? appeared first on The Motley Fool Australia.

More reading

• Nvidia’s stock is up 160% in 2024, but is it a bubble waiting to pop?
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• One day, Nvidia stock will go down. Here’s how to keep it from hurting your portfolio
• Where will Nvidia stock be in 10 years?
• Nvidia is no longer the most valuable company in the world. Here’s what investors need to know

Howard Smith has positions in Nvidia. 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.

Chalice Mining Ltd (ASX: CHN) shares are catching the eye on Wednesday.

In morning trade, the ASX mining stock is up 8% to $1.64.

Why is this ASX mining stock racing higher?

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

According to the release, Chalice Mining and Mitsubishi Corporation have entered into a non-binding memorandum of understanding (MOU).

Mitsubishi is one of Japan’s largest conglomerates and a leading global natural resources investor. Management notes that it has a long and successful track record of partnering with mining companies to fund and develop major mining projects globally. As a result, it is considered a tier-one strategic partner.

What is the MOU?

This MOU will see the parties work together with the intention of forming a potential strategic partnership to develop the ASX mining stock’s 100%-owned Gonneville PGE-Nickel-Copper-Cobalt Project in Western Australia.

Management notes that the agreement establishes a general framework for collaboration on technical, financing, marketing, and offtake aspects of the project during the ongoing pre-feasibility study (PFS).

It also highlights that Mitsubishi brings a broad range of capabilities, experience and relationships across equity and debt financing, product marketing, procurement and large-scale project development.

The MOU is non-exclusive and does not restrict the ASX mining stock from entering into any other transaction involving the project.

A foundational, long-term relationship

Chalice Mining’s managing director and CEO, Alex Dorsch, was very pleased with the news. He said:

We are very pleased to have executed the MOU with Mitsubishi, which marks the beginning of a foundational, long-term relationship. Mitsubishi’s involvement in the Gonneville Project follows extensive due diligence and discussions over the past ~12 months and highlights the longer-term strategic nature and value of the Project as a potential large-scale, long-life and low-carbon source of critical minerals for Western markets.

From the outset of the strategic process, Mitsubishi was always considered one of the most impressive and best suited strategic partners for the Gonneville Project, based on its decades-long development, operational and trading track record. In the context of key ongoing PFS workstreams and optimisations, the MOU structure is favourable, as it provides a framework for collaboration for both parties during the PFS and allows for the progression and de-risking of the Project prior to having good faith discussions around a potential joint arrangement and investment following the completion of the PFS.

Despite today’s gain, this ASX mining stock is still down ~73% over the past 12 months.

The post Guess which ASX mining stock is jumping 8% on deal with Mitsubishi 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.