Key Points

• Lucid shipped nearly 40% more vehicles in the second quarter versus last year.

• Lucid has previously said it plans to offer lower-priced vehicles to expand its market further.

• A mass-market vehicle will ultimately determine if the company will be successful.

Earlier this week Tesla reported a 14% decline in second-quarter electric vehicle (EV) deliveries versus last year. Some of that drop is due to increasing competition from traditional automakers and smaller EV makers alike. One of the latter is Lucid Group (NASDAQ: LCID). Lucid serves the high-end market, and just reported second-quarter sales that jumped 38% year over year.

Of course, the record 3,309 EVs Lucid sent to customers pales in comparison to the more than 384,000 deliveries Tesla reported. Investors sent Lucid shares higher nonetheless. The stock jumped as much as nearly 9% on the news Thursday morning. At noon ET the stock was still higher by 5.9%.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Will Lucid be the next Tesla?

For the first half of 2025, Lucid has delivered more than 6,400 vehicles. That compares to just over 10,200 for the full year 2024. That increase came as Lucid began shipping its latest EV model. The luxury Gravity SUV is the first new design after its Air sedans and is helping to expand Lucid's market.

As mentioned, though, Lucid's volume is still just a drop in the bucket compared to sector leader Tesla. Buying the stock now would require a belief that it will successfully expand beyond the Air and Gravity models. The company has said it plans to offer lower-priced EVs in the future.

That will need to come to fruition for the stock to move meaningfully higher. Lucid has some time to make that happen, though. The company ended the first quarter with almost $6 billion in total liquidity. It also has support from the Saudi Arabian Public Investment Fund (PIF), its largest shareholder.

But the company is still bleeding cash. Even though it has improved as sales volume has picked up, Lucid's net loss from operations in the first quarter was over $366 million. Investors will know more when the company reports second-quarter full financial results on Tuesday, Aug. 5.

Should you invest $1,000 in Lucid Group right now?

Before you buy stock in Lucid Group, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lucid Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $692,914!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $963,866!*

Now, it’s worth noting Stock Advisor’s total average return is 1,050% — a market-crushing outperformance compared to 179% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 30, 2025

Howard Smith has positions in Lucid Group and Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.

Key Points

• Nvidia and other large tech companies are building AI factories, creating unprecedented demand.

• Dell Technologies' AI server sales skyrocketed last year.

• Dell's AI orders continue to flow in, creating a significant -- and growing -- backlog.

There will be many winners as infrastructure is built to support the huge and increasing computing power needed for artificial intelligence (AI) applications. Nvidia continues to pave the way and has already been a huge beneficiary thanks to its leading advanced chips, software, and engagement with developers.

Nvidia's revenue has soared from what was then a record $61 billion in fiscal 2024 to more than $130 billion in its fiscal year 2025, ended Jan. 26. That growth continues as sales in the first half of fiscal 2026 are expected to be approximately $90 billion. It's all about the company's data center segment, as companies -- as well as sovereign nations -- quickly invest in infrastructure to expand AI capabilities.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

That infrastructure includes servers and cooling systems that are provided by Dell Technologies (NYSE: DELL). The company's revenue has also been soaring, and it is well positioned to ride AI's "golden wave" along with Nvidia.

Nvidia's AI factories are filling Dell's backlog

Dell isn't a pure-play AI stock, but it has already seen benefits from the AI revolution. Revenue hasn't soared quite as much as it has for Nvidia, but Dell's Infrastructure Solutions Group saw sales hit a record $43.6 billion in fiscal 2025, up 29% year over year. Zoom in specifically to its AI server business, though, and the growth is more impressive. Server shipments generated nearly $10 billion, up over sixfold from $1.5 billion in fiscal year 2024.

Demand continued to grow in the company's fiscal 2026 first quarter, and the period ended on May 2 with a $14.4 billion AI backlog. Chief operating officer Jeff Clarke called the demand unprecedented, adding, "We generated $12.1 billion in AI orders this quarter alone, surpassing the entirety of shipments in all of [fiscal 2025]."

That's all because of the huge data centers and AI training factories being built by large growth companies as well as sovereign governments -- all of it supported by Nvidia and its powerful products. Meta Platforms, Amazon, Alphabet, and Microsoft collectively have plans to spend as much as $320 billion this year investing to expand AI capabilities.

Another group of tech companies is partnering with ChatGPT creator OpenAI for the Stargate Project, with another $500 billion in AI infrastructure investments planned over the next several years.

OpenAI has also started a program intending to help regions outside the U.S. launch large AI projects. Dell servers will likely be part of most of this development. It's why the stock has quickly rebounded from its April lows.

More reasons to own Dell

That growth is driving investors to Dell stock. But there are other reasons to own it, too. The company's Client Solutions personal computer segment is also integrating AI for commercial and retail clients. That segment provides a stable cash flow base and it generated more revenue than the Infrastructure Solutions group last year.

Management is returning some of that cash flow to shareholders. It increased its annual dividend by 18% for the current fiscal year, and its board of directors approved a $10 billion increase in its share repurchase authorization.

The company says it is committed to returning at least 80% of its adjusted free cash flow to shareholders. It also plans to raise its dividend at least 10% annually through fiscal year 2028. That shareholder-friendly approach should make investors feel good.

Yet surging demand and a large and growing backlog for its AI servers are what really make it a good time to buy Dell stock. It has more runway ahead to ride the golden wave of AI along with Nvidia.

Should you invest $1,000 in Dell Technologies right now?

Before you buy stock in Dell Technologies, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Dell Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $697,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $939,655!*

Now, it’s worth noting Stock Advisor’s total average return is 1,045% — a market-crushing outperformance compared to 178% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 30, 2025

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Howard Smith has positions in Alphabet, Amazon, Dell Technologies, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

The investing community is beginning to take notice of Nebius Group (NASDAQ: NBIS). I say that largely based on the almost 150% surge in its share price since mid-April. There's a reason behind that, though. Nebius has been executing on its plan to grow its revenues to a level that would justify a valuation well above its current one.

The company, which went public in May 2011 under the name Yandex, was originally a Russian search engine company. The stock peaked in late 2021. It now trades as Amsterdam-based Nebius Group more than 40% off that previous high.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Nebius sprouted as the cloud computing arm of Russian e-services giant Yandex. It was formed after Yandex restructured and divested all of its Russian assets in July 2024. It resumed trading on the Nasdaq Stock Exchange under the Nebius name in late October 2024.

Nvidia believes in Nebius

The stock remains far below its Yandex-era highs since the post-transition business has yet to fully demonstrate its potential for growing revenue. But Nebius management is giving investors a good idea of how to value that expected growth. If its assessment proves accurate, Nebius stock would be a good buy at recent prices.

Nebius' core business is cloud infrastructure. It's one of a growing number of hyperscalers supplying the computing power needed in the age of artificial intelligence (AI).

Hyperscalers like Nebius have the massive amounts of data center infrastructure that it takes to supply cloud computing services on a global level. It competes with leading players like Amazon Web Services (AWS), Microsoft Azure, and Alphabet's Google Cloud.

While its cloud infrastructure and services segment is Nebius' core business, the company has four business segments, all in specific areas of the AI ecosystem:

• Nebius (cloud infrastructure): The core business, providing infrastructure from a network of data centers for AI workloads, including large-scale GPU clusters, cloud platforms, and developer tools.

• Toloka: A data partner with a network of human specialists to test and evaluate large language models (LLMs) in generative AI development.

• TripleTen: A technology platform focused on reskilling individuals for tech careers, leveraging AI-driven educational tools.

• Avride: Developing autonomous driving technology for self-driving cars and delivery robots, targeting sectors like ride-hailing, logistics, e-commerce, and food delivery.

Nebius' work in the AI ecosystem has attracted the attention of AI leader Nvidia. The chipmaker participated in a $700 million private funding round for Nebius late last year. Nvidia also owns more than 1 million shares of Nebius stock.

Why Nebius shares could keep rising

Nebius is leading the way in providing computing capacity from Nvidia's GB200 Blackwell Superchips to European customers. The GB200 is a key component in the architecture of Nvidia CPU and GPU liquid-cooled server racks, including networking links for AI model inference.

Nebius' partnership with Nvidia gives the cloud services company the ability to scale at a rate that management says will result in an annualized revenue run rate of between $750 million and $1 billion by the end of 2025. It also expects to reach positive adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) this year.

The upper end of that revenue run rate would give Nebius a price-to-sales (P/S) ratio of about 12.5, even after the stock's recent surge. That appears to be a reasonable valuation for such a fast-growing tech company. By comparison, fellow cloud AI infrastructure provider CoreWeave sports a P/S ratio of about 15 based on this year's revenue guidance.

Nebius may now be showing up on some tech investors' radars, but it still isn't being valued as richly as it could be. If Nebius does achieve the sales growth management says it's on track to reach this year, the stock could have more room to run over both the short and long term.

Should you invest $1,000 in Nebius Group right now?

Before you buy stock in Nebius Group, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nebius Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $966,931!*

Now, it’s worth noting Stock Advisor’s total average return is 1,062% — a market-crushing outperformance compared to 177% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 23, 2025

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Howard Smith has positions in Alphabet, Amazon, Microsoft, Nebius Group, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, and Nvidia. The Motley Fool recommends Nasdaq and Nebius Group and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

There will prove to be many winners as artificial intelligence (AI) infrastructure continues to grow and AI end-uses expand. Nvidia (NASDAQ: NVDA) has been the Wall Street darling surrounding everything AI for the past two years.

CoreWeave (NASDAQ: CRWV) has been getting the love most recently, though. Shares of the AI hyperscaler providing cloud services have soared about 185% in just the past month as of this writing. Nvidia stock has increased 24% in that time. CoreWeave just went public in late March, and the shares have jumped about 270% since that initial public offering (IPO). Investors may wonder if Nvidia's shine is fading, and it's time to buy CoreWeave instead. I'd argue that is flawed thinking, however.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

The growth isn't over for Nvidia

Investors may be taking a breather after the early exponential gains in Nvidia stock. Growth in the business itself has also slowed, though that was inevitable. Sales of its advanced chips in the data center segment had been growing like a weed. Revenue in that segment has been increasing in each consecutive quarter for the last two years. In the most recent fiscal quarter, that growth rate slowed to 10%, though, as seen below.

Despite that trend, it's clear AI demand hasn't yet peaked. Remember, these are still sequential quarterly increases in data center sales. For perspective, that fiscal first-quarter revenue was a 73% jump compared to the prior year period. Management also guided investors to expect further revenue growth in the current quarter. So, while an unsustainable growth rate slows, the company is still solidly in growth mode.

Nvidia is more ubiquitous than you might think

That's because it's not just Nvidia's advanced GPU and CPU chips driving sales and expanding AI infrastructure. Its AI ecosystem includes interconnect technologies, the CUDA (compute unified device architecture) software platform, and artificial intelligence processors that are part of many different types of architectures.

CEO Jensen Huang recently touted Nintendo's new Switch 2 gaming console, for example. The unit includes Nvidia's AI processors that Huang claims "sharpen, animate, and enhance gameplay in real time."

Nvidia has a broad array of customers. As AI factories and data centers are built, it will continue to be a major supplier and one that investors should benefit from owning. Nvidia also invests in the AI sector. It makes sense to look at where the AI leader itself sees future gains.

Nvidia thinks CoreWeave is a good investment

One of the AI companies in which Nvidia holds a stake is CoreWeave. Nvidia should know CoreWeave well, too, as an important customer. CoreWeave leases data center space to companies needing the scalable, on-demand compute power it has control of from the 250,000 Nvidia chips it has purchased.

It's a desirable option for enterprises that require significant computational power to process large amounts of data efficiently. There appears to be plenty of demand. But there is plenty of risk for investors, too. It just announced a new lease agreement to further increase capacity.

Applied Digital, a builder and operator of purpose-built data centers, has agreed to deliver CoreWeave 250 megawatts (MW) of power load on a 15-year term lease at its recently built North Dakota data center campus. CoreWeave has the option to expand the load by an additional 150 MW in the future.

Demand is quickly driving growth for CoreWeave. That's led investors to jump in and drive the stock higher in recent months. Valuation is just one major risk with CoreWeave. Customer concentration is another. Last year, Microsoft accounted for nearly two-thirds of revenue. CoreWeave also disclosed that 77% of 2024 revenue came from just its top two customers.

CoreWeave is also spending massive amounts of capital to grow AI cloud capacity. It had about $5.4 billion of liquidity available as of March 31 and raised another $2 billion from a late May debt offering. That's approximately its level of capital expenditure in just the first quarter alone, though.

CoreWeave has the risk, Nvidia has the profits

That spending may pay off. But there are risks there as well. Customers could develop their own AI infrastructure or could redesign systems that don't require its services. CoreWeave stock also trades at a high valuation after the stock has soared. It recently had a price-to-sales (P/S) ratio of about 30.

That could be cut in half this year with its strong sales growth, but it isn't earning any money yet. At the same time, Nvidia sports a price-to-earnings (P/E) ratio of about 30 based on this year's expected profits.

Remember, too, that as CoreWeave grows, so do Nvidia's profits. Applied Digital CEO Wes Cummins said that its leased North Dakota data center campus will be full of Nvidia Blackwell class servers. I think the risk profile, financial picture, and massive potential for Nvidia make it the better AI stock to buy now.

Should you invest $1,000 in Nvidia right now?

Before you buy stock in Nvidia, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $868,615!*

Now, it’s worth noting Stock Advisor’s total average return is 792% — a market-crushing outperformance compared to 173% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 2, 2025

Howard Smith has positions in Microsoft and Nvidia. The Motley Fool has positions in and recommends Microsoft and Nvidia. The Motley Fool recommends Nintendo and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Shares of artificial intelligence (AI) cloud service provider Nebius Group (NASDAQ: NBIS) are surging today. The stock jumped after one independent equity research firm began coverage on the stock with a very bullish outlook.

Nebius stock was trading higher by 19.5% as of 11:05 a.m. ET.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

A growth story that's just beginning

London-based Arete Research analyst Andrew Beale began coverage of the stock with a "buy" rating and a price target that seems to have taken investors by surprise. Reports say Beale set $84 as his price target, which represents a 113% increase over Wednesday's closing price.

The analyst sees that significant upside after the Netherlands-based Nebius recently reported first-quarter revenue growth of 385%. That was off a low base versus last year, but the company sees continued expansion at an accelerated rate.

Beale's optimism stems from the nearly 700% increase in Nebius' annualized revenue run rate. Management expects to at least triple that annualized level of revenue by the fourth quarter of this year. Its AI cloud capabilities are in high demand, and Nebius reports a strong $1.44 billion cash position as of March 31.

That cash will be needed for the continued investment in cloud infrastructure to continue to scale the business. Nebius also announced a $1 billion capital raise on June 2 from the sale of convertible notes.

Nebius also has a partnership with AI leader Nvidia, offering the new Blackwell Ultra AI factory platform to businesses looking "to build the next generation of agentic, reasoning, and physical AI."

Investors still need to consider the risks. In addition to its capital spending needs, Nebius seeks to achieve a goal of positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) later this year. That's one key metric investors should continue to monitor. That would instill more confidence in the stock and the company's ability to continue to achieve its high growth trajectory.

Should you invest $1,000 in Nebius Group right now?

Before you buy stock in Nebius Group, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nebius Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $668,538!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $869,841!*

Now, it’s worth noting Stock Advisor’s total average return is 789% — a market-crushing outperformance compared to 172% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 2, 2025

Howard Smith has positions in Nebius Group and Nvidia. The Motley Fool has positions in and recommends Nebius Group and Nvidia. The Motley Fool has a disclosure policy.

Many investors are watching large tech companies invest massive capital into artificial intelligence (AI) infrastructure. The big question is when, or even if, there will be an adequate return on those investments.

There are even concerns that massive capital allocation plans already announced may be cut or pushed out. But there are more and more signs that spending is continuing and even accelerating. If that indeed remains true, two of the biggest beneficiaries of that spending are no-brainer stocks to buy right now.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

"A ton" of AI data center demand

Currently, one of the main recipients of that capital is Nvidia (NASDAQ: NVDA). Its high-end chips are filling server stacks in many data centers being built globally. As a result, the AI boom has been of game-changing benefit to Nvidia and its investors. The stock has been under pressure, though, as questions surface about demand from a slowdown in AI infrastructure spending, and regulatory headwinds in the form of export restrictions.

The concerns related to capital spending may be overblown. Jonathan Gray, chief operating officer of asset manager Blackstone, recently told CNBC: "I think this trend is powerful. I think it will continue...overall, we still see a ton of demand." That's great news for Nvidia investors and supports what large Nvidia customers like Meta Platforms, Microsoft, and Amazon have been saying about maintaining, or even growing, their capital spending plans.

Export curbs could be more problematic for Nvidia. Management already said Nvidia plans to take $5.5 billion in charges after the Trump administration declared limits to exports and required licensing for Nvidia's H20 AI chip sales to China. That chip was a modified product created specifically to comply with previous regulations for China shipments.

The China picture might be improving

China is an important market for Nvidia. Concerns surrounding that business are a big reason why Nvidia shares have declined this year. Sales there represented 13% of total revenue last year. That was down from 17% in the prior fiscal year, though, showing that Nvidia isn't overly reliant on Chinese customers.

Recent reports say that President Donald Trump may even be ready to relax AI chip export curbs, too. Just as Biden-era export restrictions are getting ready to go into effect, Trump reportedly will overturn those rules. Potential rules and regulations going forward remain unclear, but the effect on Nvidia's business may already be priced into the stock.

The takeaway is that investing in the AI leader should still make sense, especially as the stock has pulled back this year. With Nvidia's business still flourishing, investors could also look to its biggest supplier for a winning investment right now.

Another global AI leader

Taiwan Semiconductor (TSMC) (NYSE: TSM) also considers Nvidia one of its most important customers. TSMC supplies semiconductor products, including microprocessors, graphics processing units (GPUs), microcontrollers, and other specialty and advanced technology packages. Nvidia is one of several big tech companies reliant on TSMC, but the Taiwan-based company has a diverse customer base. It supplied products to more than 500 customers last year.

Demand for its services is surging. Revenue soared 42% in the first quarter, and profits surged even more. Net income and diluted EPS (earnings per share) soared 60% year over year. That rapid growth is expected to continue. Management expects year-over-year revenue to jump another nearly 40% in the current quarter.

Yet, as with Nvidia, investors have pushed TSMC shares down by more than 10% year to date. That's led to a very desirable valuation. The stock now trades at a forward price-to-earnings ratio below 20.

Nvidia and TSMC stocks have both been beaten down due to concerns about slowing growth. Yet based on customer demand and tech companies' recent comments, the rise in AI development has not become a bubble. Even if capital spending on data center buildouts does slow, that doesn't present the full picture either. AI also includes software that is likely going to run in almost every device for both consumers and many enterprises.

Taking that broader view should make most investors comfortable owning both Nvidia and TSMC at recent valuations.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $302,503!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $37,640!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $614,911!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.

See the 3 stocks »

*Stock Advisor returns as of May 5, 2025

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Howard Smith has positions in Amazon, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Amazon, Blackstone, Meta Platforms, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

There may never have been a smoother transition from an iconic CEO to a successor. Warren Buffett and Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) let markets know several years ago that Greg Abel would be Buffett's eventual replacement. Abel is currently vice chairman of Berkshire's non-insurance businesses.

Buffett officially said this weekend that he would step down and hand the reins to Abel at the end of the year. The announcement came as a surprise, even though investors had known to expect it. Berkshire shares tanked Monday on the news, dropping nearly 7% before paring those losses.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Investors might be wondering whether they should be buying or selling Berkshire Hathaway stock now.

Can Berkshire survive without Buffett?

Buffett was the key force in building Berkshire Hathaway into a trillion-dollar company. So it's natural for investors to wonder about holding the stock when Warren Buffett is no longer the decision-maker. Today's stock reaction is overdone, though. Buffett will be staying on as chairman of the board and isn't even passing the CEO torch to Greg Abel until the end of the year.

Some investors may have wanted to have their money handled by Buffett himself. His investing philosophy is unique, and his results have been spectacular. That includes this year as Berkshire stock has greatly outpaced the S&P 500 index thus far.

On Saturday, at the 2025 shareholders meeting, Buffett said that not only will Berkshire survive, he thinks it will thrive under Abel's leadership. Buffett said Abel would be even better than he at managing the company's vast array of operating businesses.

Buffett made his name by being opportunistic. He poured billions into quality names during the Great Recession of 2008-2009. Investors should do the same with Berkshire stock, though even today's drop doesn't make shares a bargain. They trade at a relatively high valuation compared to recent years. Starting a position now could make sense, but wait for a bigger drop to dive in.

Should you invest $1,000 in Berkshire Hathaway right now?

Before you buy stock in Berkshire Hathaway, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Berkshire Hathaway wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $623,685!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $701,781!*

Now, it’s worth noting Stock Advisor’s total average return is 906% — a market-crushing outperformance compared to 164% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of May 5, 2025

Howard Smith has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.

VeriSign (NASDAQ: VRSN) shares took off Friday morning after the company released first-quarter earnings and declared a dividend for the first time. Its solid results also allowed the company to raise revenue guidance for the full year.

Investors jumped into what has been one of the big stock market winners so far this year. Shares jumped 9.3% higher as of 11:35 a.m. ET, giving the stock a gain of 33% year to date.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

VeriSign is a big Warren Buffett holding

The initiation of a quarterly cash dividend surely made shareholders happy, too. That group of investors includes Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B).

VeriSign isn't what most investors would picture as a Buffett holding. The company manages internet domain names and provides critical internet infrastructure for managing and maintaining security. Buffett typically steers clear of technology stocks, but Berkshire has owned VeriSign for more than a decade, and it added to its VeriSign holding in the fourth quarter. That holding was valued at about $2.75 billion at the end of Q4, putting VeriSign just out of Berkshire's 10 largest holdings.

Shareholder-friendly moves

Buffett likely continues to be happy with VeriSign's business. The company saw both revenue and operating income grow almost 5% year over year. It raised 2025's full-year guidance for both of those metrics as well.

VeriSign also declared a cash dividend of $0.77 per share, giving the stock a forward dividend yield of about 1.1%. It also repurchased 1 million shares at an average price of $230 per share. Those are signs of a company with strong free cash flow. The share repurchases should continue, as VeriSign still had almost $800 million authorized for that purpose as of the end of the quarter.

This is a company that has been delivering consistent financial results with strong cash flow. And note that it should feel minimal impacts from the current tariff uncertainty. It's not immune to currency fluctuations and economic slowdowns, but it looks to be a good stock to own right now.

Should you invest $1,000 in VeriSign right now?

Before you buy stock in VeriSign, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and VeriSign wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $591,533!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $652,319!*

Now, it’s worth noting Stock Advisor’s total average return is 859% — a market-crushing outperformance compared to 158% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 21, 2025

Howard Smith has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway and VeriSign. The Motley Fool has a disclosure policy.

Not many people expected an earnings beat from Tesla's (NASDAQ: TSLA) first-quarter report last night. The results were even worse than anticipated in many respects. Yet Tesla stock soared Wednesday morning. As of noon, the stock was trading higher by 6.7%.

The source of investor optimism was in the company's earnings call to discuss the results. Some think the worst may now be over for the stock after shares have plunged almost 50% off the highs reached late last year.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Elon Musk to spend more time on Tesla

The stock had been dropping as investor concerns grew over the amount of time CEO Elon Musk was spending in his role as head of the cost-cutting, efficiency-boosting Donald Trump initiative called DOGE (Department of Government Efficiency), and the negative reaction to his government work. In the conference call, though, Musk said a large part of his work "is mostly done." Musk also said that beginning in May, "my time allocation at DOGE will drop significantly."

That isn't all that has investors feeling better about buying Tesla shares. In its report to shareholders, the company said, "plans for new vehicles, including more affordable models, remain on track for [the] start of production in the first half of 2025." That means some version of what could be called a "Model 2" will be revealed in about two months.

Tesla still faces speed bumps

That's big news for Tesla investors as falling sales of its current electric vehicle (EV) lineup caused it to miss earnings and revenue estimates in the first quarter. Deliveries dropped 13% year over year, and revenue dropped 9%.

A cheaper model might help spur sales. But Musk's political activity has also alienated some potential Tesla buyers. Longer-term goals, which include a full self-driving cybercab and a fleet of humanoid Optimus robots, are what investors really want to see materialize.

Until those products become a reality, investors should expect a volatile road for Tesla stock. For today, though, buyers are far outnumbering sellers.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $256,447!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $37,869!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $561,046!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.

See the 3 stocks »

*Stock Advisor returns as of April 21, 2025

Howard Smith has positions in Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.

It's been a topsy-turvy week in the stock market. Mostly because of tariff news and the potential ramifications to the U.S. and world economies. One electric vehicle (EV) stock jumped today for another reason. Lucid Group (NASDAQ: LCID) raised some fresh capital this week, and today announced new expansion plans.

Lucid stock surged as much as 5.6% on Friday before losing steam. As of 1:10 p.m. ET Friday, shares were holding on to a 0.4% gain after the company announced plans to buy a manufacturing plant and other assets from bankrupt hydrogen-electric truck maker Nikola.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Lucid looks to grow capacity

Lucid has been known for its luxury Air sedan EV. It now is also offering a luxury SUV model that it hopes will expand its customer base. Early reviews are positive for the Gravity SUV that is now in Lucid showrooms. The new EV has 450 miles of range, and is the fastest charging EV outside of China, according to industry publication InsideEVs. The Gravity is also equipped to utilize Tesla's vast Supercharger network.

That new offering is potentially the catalyst Lucid needs to grow sales and move closer to profitability. The company has other plans to expand its market reach, too. A future, lower-priced EV would go a long way to help realize that. Lucid took a step toward increasing volume by announcing plans today to acquire Nikola's Arizona manufacturing plant pending approval by a bankruptcy judge. Lucid's existing plant is also in Arizona, located between Phoenix and Tucson.

Lucid closed on a $1.1 billion convertible note offering this week. While most of those funds will be used to pay off debt due next year, that will free up existing capital to fund the new asset purchase.

Along with the manufacturing facility, Lucid plans to offer employment to over 300 former Nikola employees, and the acquisition includes Nikola's former headquarters and product development center.

Investors initially cheered Lucid's new growth plans today. But it still has an uphill battle, especially in uncertain economic times. That helps explain today's stock movement.

Should you invest $1,000 in Lucid Group right now?

Before you buy stock in Lucid Group, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lucid Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $496,779!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $659,306!*

Now, it’s worth noting Stock Advisor’s total average return is 787% — a market-crushing outperformance compared to 152% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 10, 2025

Howard Smith has positions in Lucid Group, Nikola, and Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.

It's been an incredibly turbulent week for stocks in the electric vehicle (EV) sector and for markets in general. As of early Friday morning, the Nasdaq Composite index was 5.4% higher for the week mainly thanks to Wednesday's historic rally.

Shares of EV maker Lucid Group (NASDAQ: LCID) were doing even better, surging by 10.5%, according to data provided by S&P Global Market Intelligence. Those gains have come partly because of struggles at EV leader Tesla. Investors should be aware of something that could cause issues for Lucid in the near future, though.

Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »

Lucid moves into SUVs

Lucid recently began selling its Gravity SUV and reports say that orders have picked up recently. Interest may have increased thanks to consumers' displeasure with Tesla CEO Elon Musk and his political activity. "We see a clear uptick of interest in Lucid from Tesla buyers, because they're looking for another option," Lucid's interim CEO, Marc Winterhoff, recently told Yahoo! Finance.

The company is planning to expand production, too. It just announced plans to acquire additional manufacturing facilities from bankrupt electric heavy truck maker Nikola, subject to bankruptcy court approval.

Competition moving into one market

Lucid also has been actively working to be the EV leader in the Saudi Arabian market. The Saudi government is the largest Lucid shareholder via its sovereign wealth fund, the Public Investment Fund (PIF). Lucid ships vehicles to that country for final assembly and sale. In the first quarter, that amounted to over 600 vehicles.

Now, rival Tesla is moving into the Saudi market, too. Tesla held a launch event in Saudi Arabia with the opening of its first showroom and service center in Riyadh this week. That could mean Lucid's growth plans there will take a hit.

The future is still uncertain for Lucid. It continues to lose money, and is counting on its Gravity SUV to spur higher sales volumes. Investors should keep that in mind, as it likely will mean volatility in the stock will continue, and possibly erase this week's big gain.

Should you invest $1,000 in Lucid Group right now?

Before you buy stock in Lucid Group, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lucid Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $496,779!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $659,306!*

Now, it’s worth noting Stock Advisor’s total average return is 787% — a market-crushing outperformance compared to 152% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 10, 2025

Howard Smith has positions in Lucid Group, Nikola, and Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.