Nvidia will have 16% upside from here, says Truist's Will Stein

Published: Aug 27, 2024 Duration: 00:05:35 Category: News & Politics

Tags : news Breaking News money finance investing business politics wall street stocks economy CNBC the exchange kelly evans newsroom

Trending searches: nvidia

"OVERTIME." IT'S GOING TO INFLUENCE A LOT MORE THAN JUST ITS OWN STOCK. >>> MY NEXT GUEST SEES 16% UPSIDE FOR NVIDIA FROM HERE, WRITING DEMAND FOR GPUs IS INSATIABLE. HE UPPED HIS PRICE TARGET TO 145 EARLIER THIS WEEK. JOINING ME NOW IS WILL STEIN, ANALYST AT TRUIST. WHAT IS THE MOST IMPORTANT THING IN THIS REPORT? >> I THINK THE NUMBERS ON THE QUARTER AND THE GUIDANCE ARE ALWAYS VERY IMPORTANT FOR ADDITIONAL REACTIONS. BUT I THINK IT'S THE LONGER TERM COMMENTARY. ACTUALLY, I THINK THOSE THINGS TEND TO BE MORE IMPORTANT FOR THE STOCK TO MOVE OVER THE SUBSEQUENT FEW TRADING DAYS. >> YOU POINT OUT THERE HAVE BEEN REPORTS ABOUT THE LATEST CHIP NOT COMING OUT AS SOON OR IN AS GREAT OF VOLUME AS SOME HOPED. BUT THERE'S STILL REALLY HIGH DEMAND FOR NVIDIA'S PRODUCT, AND PEOPLE WILL TAKE A GENERATIONAL OLD, TWO GENERATIONS OLD EACH. SO HOW MUCH DOES THE -- I GUESS THE AVAILABILITY OF BLACKWELL'S MATTER AT ALL, AND HOW MUCH DOES IT MATTER TO SENTIMENT IF WE GET SOME COLOR FROM NVIDIA THAT SAYS WE FEEL FINE ABOUT THIS, OR ACTUALLY, WE'VE GOT ENOUGH STOCK OF CHIPS THAT PEOPLE WANT THAT IT'S NOT SOMETHING YOU NEED TO WORRY ABOUT. >> I DON'T THINK THIS IS A MAJOR WORRY HEADING INTO THE QUARTER. I'VE CONTACTED BY CHANNEL CHECKS THAT REVEAL NO DELAY. SO I DON'T KNOW OF ANY CUSTOMER THAT'S BEEN TOLD THAT THEY WILL HAVE A DELAYED DELIVERY. I KNOW SEVERAL CUSTOMERS THAT HAVE PRODUCT ON ORDER. I DON'T KNOW THAT ANY HAVE CONFIRMED THAT THE COMPANY TOLD THEM THERE WILL BE A DELAY. SO I CAN'T SAY WITH CERTAINTY THERE'S NO DELAY, BUT I DON'T THINK IT'S LIKELY THAT IT'S DELAYED. NOW, IF IT IS, DOES IT MATTER? NOT VERY MUCH, IN MY OPINION. THE REASON IS THAT CUSTOMER DEMAND FOR GPUs FROM NVIDIA ARE INSATIABLE NOW. THEY'LL TAKE H-200, EVEN H-100. WHATEVER NVIDIA CAN DELIVER RIGHT NOW, AND THAT'S AFFECTING THE BROADER GROUP OF COMPANIES THAT ADDRESS THIS AI NEED. NOT JUST NVIDIA, BUT THERE'S A FEW OTHERS THAT HAVE A SIMILAR DYNAMIC. >> ACROSS THE OTHER STOCKS YOU COVER, WHICH DO YOU EXPECT TO BE THE MOST AFFECTED BY WHAT NVIDIA REPORTS? >> SO THERE'S A FEW. ONE IS CERTAINLY AMD. THEY'RE SORT OF THE UP AND COMER IN THIS SPACE. THEY DON'T HAVE -- THEY HAVE SPECTACULAR PRODUCTS TO NVIDIA, BUT THEY DON'T HAVE THE SAME ECOSYSTEM. ANOTHER ONE IS BROADCOM. WE HAVE A BUY RATING ON THAT STOCK. THAT COMPANY ASSISTS WEB SCALE COMPANIES DEVELOP THEIR OWN SPECIALIZED AI CHIPS. AND THEN THERE ARE A COUPLE OF OTHER READS LIKE TESLA, WHICH IS TRYING TO BUILD AN AI TRAINING CLOUD SERVICE CALLED DOJO THAT'S STILL IN THE PROCESS OF GETTING WORKED OUT. AND THEN A MORE OFF THE RUN ONE IS MONOLITHIC POWER. THAT COMPANY IS A POWER MANAGEMENT COMPANY, AND THESE CHIPS ARE NEEDED AS COMPLEMENTARY DEVICES TO ALL OF THESE AI VENDORS' CHIPS. >> HOW MUCH VOLATILITY DO YOU EXPECT IN NVIDIA STOCK ACTION, NOT JUST WHEN THE NUMBERS COME OUT, BUT PERHAPS EVEN THROUGHOUT THE CALL, EVEN IN THE FIRST DAY OR SO AFTER EARNINGS? I RECALL THE LAST COUPLE OF EARNINGS REPORTS, THE STOCK WOBBLED AFTER THE INITIAL NUMBERS CAME OUT. BUT WHEN JENSON GOT ON THE CALL, TALKED ABOUT THE QUARTER, IT RECOVERED QUITE NICELY. >> I ANTICIPATE SORT OF SIMILAR REACTION. I CAN'T SO MUCH NAIL DOWN EXACTLY WHAT THE MOVE IS GOING TO BE ON THE PRINT. MY UNDERSTANDING FROM READING OTHER REPORTS SUGGESTS THAT OPTIONS ARE PRICING IN SOMETHING MORE OF A 10% MOVE ON THE RESULT, WHICH IS SIMILAR FROM WHAT WE HAVE SEEN IN THE LAST SEVERAL QUARTERS. THAT SORT OF MOVE WOULDN'T SHOCK ME IN EITHER DIRECTION. BUT WHEN JENSON STARTS TALKING ABOUT THE LONGER TERM GROWTH DRIVERS THAT I THINK ARE VERY WELL IN TACT, AND NVIDIA'S POSITION IN THE MARKET, WHICH I THINK IS ALSO WELL IN TACT AS THE NUMBER ONE SUPPLIER, I THINK THE STOCK WILL CONTINUE TO DO WELL. >> NVIDIA RIGHT NOW IS NECK AND NECK WITH MICROSOFT IN THE MARKET CAP RACE TO THE EXTENT THERE IS A MARKET CAP RACE, BUT APPLE HAS PULLED AHEAD. IT'S BEEN PRETTY MUCH ALL YEAR, A STORY OF THESE THREE HORSES KIND OF TRADING PLACES. TO WHAT DEGREE SHOULD INVESTORS GET USED TO NVIDIA BEING ONE OF THE MOST VALUABLE COMPANIES, PUBLIC COMPANIES IN THE MARKET. >> WE'VE WRITTEN QUITE A LOT ABOUT THIS. WE EXPECT NVIDIA TO BE AT OR NEAR THE TOP FOR SOME TIME. YOU THINK ABOUT TECHNOLOGIES THAT ARE BEING DEVELOPED AND HOW OVER THE LONG-TERM THESE NEW AND EXCITING THINGS, EVEN IF YOU GO THROUGH A PERIOD OF DISILLUSIONMENT THAT LONGER TERM THEY BECOME A MAJOR PART OF OUR LIVES. THE INTERNET COMES TO MIND AS A SIMILAR EXAMPLE. LONGER TERM COMPANIES THAT HAVE A MEANINGFUL, LET'S SAY TOP POSITION IN SUCH A MARKET WIND UP HAVING A VERY STRONG POSITION LONGER TERM THAN WE THINK. NVIDIA IS LIKE THAT. WE EXPECT THEM TO BE VERY LARGE AND AMONG THE STOCK MARKET'S MOST IMPORTANT STOCKS FOR SOME TIME TO GO. >> ALL RIGHT

Share your thoughts

Related Transcripts

Amazon Web Services experiencing widespread outage

Category: News & Politics

Kelly aws has been seeing a widespread outage for over an hour aws of course is amazon's massive cloud business that powers many companies websites and operations at large companies impacted include nyc transit sirius xm radio ring and adobe cloud the list so kelly is long and growing the longer that... Read more

Earnings Exchange: CrowdStrike, Affirm, & Dollar General

Category: News & Politics

>>> welcome back to "the exchange." we are talking cyber, spending, and sales in today's earnings exchange with crowdstrike, affirm and dollar general set to report. joining me with the trades is gina sanchez, chief market adviser. first up, crowdstrike, shares down more than 22% since that... Read more

Nvidia's earnings were 'boring' but stock still has plenty of runway, says Gabelli's John Belton

Category: News & Politics

"nvidia." how about that? pretty good. >>> we might not get through the next without mentioning it. tech may have taken the spotlight amid the rush to build out ai infrastructure, but the safety trade has quietly outperformed, and you can see that right here. spdr gold etf gld up 21% this year... Read more

Brian Niccol takes the helm at Starbucks

Category: News & Politics

Aids and cpap devices. >>> meantime star buck shares are up 18% a since they announced brian niccol as the new ceo. kate rogers is here with many of the uphill battles or sharp battles he's niccol is staring issues. it will have a competitive edge, which is something that chipotle executed well... Read more

Market rotation makes 'fundamental sense,' says Bernstein's Dan Suzuki

Category: News & Politics

Intro >>> let's bring in dan suzuki, chief investment officer at richard bernstein advisers. you think it makes sense, because things were looking frosty to you, or the piece that deirdre and i was discussing? >> yeah, it's a lot of what deirdre was discussing. she pulled up the chart that show... Read more

Apple iPhone 16 event: What investors need to know

Category: News & Politics

Rainbow. we'll wait to hear more headlines and bring them to us as you get them and we'll see you shortly, steve kovac. >> for more on what to expect and what it means for the stock. he has a $261 price target and also joining us is editor at platform and cnbc contributor casey newton. welcome... Read more

Mortgage rates drop on CPI data

Category: News & Politics

Could have done that april 30th this year. gentlemen, thank you all >>> because of the drop in yields, mortgage rates are almost at a two-year low now diana olick has those details. >> reporter: that's right, kelly. rates dropped 11 basis points after the cpi reportthis morning. the average rate on... Read more

🔴LIVE: $DELL $LULU $ULTA $NVDA $CRWD! Top Picks & Setups for August 30, 2024 | #StockMarket Insights

Category: Education

[music] [music] as everyone doing welcome welcome welcome to the final episode after the after hours with your boy trader pr the final day of this week is tomorrow going to be a freef fall friday now get ready for tomorrow microphone going on the microphone again get ready for tomorrow so i do have... Read more

UK Latest Starmer Says October Budget Is Going to Be Painful #shorts

Category: News & Politics

That is not the position we should be in it's not the position i want to be in but we have to end the politics of the easy answer obviously um the budget is uh in a number of weeks and the detail will be set out there but i say again what i said before the election which is um we have to get away from... Read more

UK Latest Starmer Says October Budget Is Going to Be Painful #shorts

Category: News & Politics

Going to have to take tough decisions i did not cater for a 22 billion p black hole and that's because it wasn't on the ob's books we were looking at the available as as you were the available material but it wasn't there the obr didn't know about it that's why they're conducting a review as to find... Read more

UK Latest Starmer Says October Budget Is Going to Be Painful

Category: News & Politics

I will be honest with you there is a budget coming in october and it's going to be painful we have no other choice given the situation that we're in those with the broadest shoulders should bear the heavier burden and that's why we're cracking down on noms those who made the mess should have to do their... Read more

UK Latest Starmer Says October Budget Is Going to Be Painful #shorts

Category: News & Politics