Cramer Today BEFORE NVIDIA Earnings - NVIDIA Stock, NVDA Update

Cramer & Faber all right we'll start though with Nvidia of course given it's do out after the bell and we got a number of other earnings after the Bell as well Jim that are not insignificant including Salesforce tonight is huge um give me your thoughts as we head in here Nvidia shares you can kind of see what they've been doing over the last month uh a nice move and sort of hanging right in there at that same level let's call it for for the last few trading sessions well I think there's a couple pieces out today I'll just put the whole thing in the rubric is that the smart guys are selling and retails buying that is the kind of thing I keep reading uh why I'm disturbed by that is that the Smart Guys has been selling the whole way what have they accomplished retail is the one that owns it uh now there may be these zero option people come in they buy today hope to win but I think that we're at a moment where Ben Rees from melus has the best cheat sheet not unlike what you might do in fantasy football where you see like it's maccaffrey at the top2 billion a month beat this must happen $2 billion forecast raise must happen and then a broader long-term Arc of what's going on including an upbeat Jensen Wong in the conference SCH so you need all of that check check check the triple Lindy not unlike what we saw from R Dangerfield Back to School in back to school which Sam kenneson was uh we also you know I noticed any number of uh pieces this morning of course going over all things related to Nvidia um how the markets reacted certainly one uh one key thing I think we may have that um in you know the May report Nvidia was up 99.3% even though interestingly the broader Market didn't really move the S&P was actually down and the NASDAQ was down we ever hear about is it's time to buy the Russell but look at this horse Ste by the way has the list of the correlations too we can get what happened oh nothing oh Ste has the correlations yeah and then I was looking also on the February report Nvidia was up 16.4% that was of course the block Buster when everything many things changed uh and the broader Market was up a lot the ndx was up 3% I thought we had that but I guess no but look I mean this is the underperformer that's not underperforming so to speak I think that it it has moved up it's number one stock in the S&P yeah uh Rivals super micro but that was the case get into that you know David I think that this became the zey iist now that bothers people CU it was a $500 billion company in 2023 you know right that's then it goes to three trillion no one likes that I call it a parvenue so given the need for a triple Indy are you still are you confident that it can pull it off that it can get the scores needed to be on the podium I think that what you have here is the extension of when apples late with a with a handset there's what I was discussing by the way black well is going they're late with blackw bring it back I want to see that again they're late with black whale but that just means you can extend very high margin product uh I think that once again remember the two things that Jensen always talks about are accelerated Computing and the new Industrial Revolution and he's not backing away from that what has happened I think is he's uh I went to the racetrack this week always a good analys you went to the RAC trck went to S went to oh yeah and you know see these yes and you'll see I love the racing form because I was racing I was a horse racing junkie after I got out of college took a handicap course what's happened is that you have these horses and when you look at the lineup say pulling away or going away or hung or tired this one's pulling away now I happen to think that in the excuse me great company but the training part is what I keep hearing about that people write what happened nothing we finally got that thing I was referring to a while ago don't be upset about that people write about invid write for invidious in other words when you're the leader like when you're the leader in handsets everyone writes for Apple that's why they have all these companies 2 million from uh just from writers uh the same thing's happening in Nvidia so you have all this information continues to go to the training and then when you buy their chips whether you do it through Dell or hpe you get it you have all this information already in now we can talk about Salesforce by the way because they are one of the people that will tell you that they have the data them you know then they keep your data but you still get all the panoply of all the other information um well let's talk Salesforce since we're kind of talked out on Nvidia a little bit not that we won't discuss it for the next 8 hours how when are yeah 420 420 420 yeah that's the day the world Stood Still no Michael reny Great ACT we mean actually 4:20 Eastern yes time is when we're going to get Nvidia but but everybody is Squawk Box waiting to see what happens with nvidia's results those are going to be out after the Bell the stock is up by more than 160% so far this year that's about 10% off of its all-time high and vors are going to be looking for any updates on its Blackwell chips just demand for AI overall there have been such high bars set for this stock and for this company and it has jumped over those bars time and time again uh the question is how much demand is still out there for all of these AI chips that Nvidia basically has the the entire market share on we're going to be talking about Nvidia with several analysts this morning I will tell you Joe that I actually thought because I've been on vacation but because I've been kind hearing about Nvidia for so long because we've been talking about it for so long I thought they were reporting yesterday there was so much hoopla about it I was watching so to see where it was like wait a second it's it's not till tonight U but I also have seen some people posit that Nvidia may be more important what happens today than what Jay pal said last week in Jackson Hole so right you'll see three I mean $3.2 trillion market cap that 5 years ago was I don't know well well under a trillion dollars it's just been year to date up 160% something yep something uh to behold look at the 5year chart up more than 3,000% amazing FinVid yeah all right today is the day Nvidia reports earnings for Q2 of fiscal year 2025 today after market close consensus estimates for NVIDIA earnings are roughly 64 cents per share and consensus estimates for Revenue are roughly $28.7 billion for the quarter this repres presents year over-year growth of well over 100% for both revenue and EPS so expectations are very high we have seen Nvidia beat estimates substantially in recent quarters and with that in mind I think that this time it is reasonable to say that Nvidia needs to beat on revenue and forward-looking guidance by billions of dollars in order to keep Market participants satisfied in the short term so the bar for today is very high I'll be honest I really do think that Nvidia will report great revenue and earnings this quarter what it really comes down to though is the guidance and the situation regarding Blackwell if Nvidia raises next quarter's guidance by two ion dollar or more and at the same time Cals Market participants concerns about Blackwell then I think the stock likely trades higher following earnings as for Blackwell Nvidia needs to calm Market participants fears by either saying that Blackwell is still on track or if there is a delay they need to emphasize that there is still very high demand for their current Hopper chips and that customers are completely fine with purchasing more Hopper chips in the interim as they wait for Blackwell so those are the two things that I think need to happen in order for the stock to trade substantially higher in the short term a raise of next quarters guidance by $2 billion or more in assurance that everything is fine regarding Blackwell so now the FOC Focus turns to today and what to do ahead of earnings I'm not a financial adviser and so I cannot tell you what to do with that in mind I will share some of my thought process when it comes to earnings if you own Nvidia stock then I think it is very important for you to have a clear understanding of what type of position you're holding is this a long-term investment that you intend to hold for multiple years into the future or is this a short-term trade once you have a clear answer to that question it will make the rest of the decision-making process much easier personally if I am invested in a company Long Term then I prefer to hold through earnings take some time to digest the results of the earnings report and as long as the company is still making great progress forward and there are no significant signs of slowing growth or slowing demand then I have no reason to sell it's that simple on the other hand if I'm holding a short-term trade then that is a more complex situation of course I cannot tell you what to do because I am not a financial adviser with that being said here is a thought to consider this is not a binary situation you don't have to hold 100% of your position into earnings and you don't have to sell 100% of your position before earnings you could break it up just in case if you wanted to do so and this really depends on your risk tolerance so that is a thought to consider and of course if you need help with your specific situation then consider reaching out to a certified financial adviser who can help you with your unique circumstance I don't know what invidious results will be and I don't know what will happen in the short term with that said I am bullish on the long-term future of Nvidia as more hyperscalers like Amazon Microsoft meta Google Tesla and more all increase capex spending on AI by billions of dollars these companies simply cannot afford to be laid on AI or else they risk being quickly outpaced by their competition and for right now Nvidia is the undisputable leader in AI chips and it's not even close so yes at some point in the future growth will likely slow as this is a recurring Trend Whenever there is a new technological breakthrough for now though demand is still strong as the largest companies in the world are practically waiting at invidious doorstep for the latest release of their products and even if Blackwell is delayed I would expect Nvidia to sell more of their current ships in the interim because demand is so great right now and then guide hire for future quarters in which they expect blackwall to ship in volume so I don't know what the Market's reaction will be following Nvidia earnings today but from a long-term perspective I think Nvidia still has brighter days ahead at least that's how I see it with all of that being said I hope you all have a great day remember to stay calm today and do not make any irrational decisions there may be another video on this channel later tonight after I've had some time to digest invidious earnings please leave a like on this video so more people will see it and while you're down there please consider subscribing it's free and you can always change your mind thanks for watching and hopefully I'll see you in the next video