Why Nvidia’s August Earnings Are Expected to Stay Strong | Nvidia Stock | NVDA Stock | NVDA

I think and Dan let's talk about Nvidia too I want your take on that name got hit today um we did see those reports uh could be delaying black well what what did you make of those reports Dan and what should you know investors right now if they're in Nvidia what was your takeaway I I think um one we kind of there was already some smoke in this area about you know Buzz about you know issues with the design and how the performance was doing possibility could be delayed we saw that with AMD too um so wasn't terribly surprising we're seeing this and honestly a 3-month delay is hardly fatal for NVIDIA they are ahead of the competition by years so if it turns out to be like the black will comes out two or three months late um it's really just kind of shifting a little bit of Revenue I think more than anything that's fatal um what I do think um is going to be important to keep in mind though is that Nvidia is trying to do essentially do new chips at a Cadence that you we've not really seen in the segment before they're trying to do something new every year which is kind of like a smartphone Cadence that's typically not what we've seen with data centers especially these kinds of like super powerful super Computing type chips so what they're trying to do is super ambitious I think we're going to see a lot more periods like this both not just with them but with other chip makers where they're trying to move very fast um and there's going to be probably some stumbles and obstacles they hit along the way Dan great to have you on the show thanks so much for taking the time to chat appreciate it thanks for having me invidious stop stock has dropped 21% in the past 30 days wiping off $651 billion in market capitalization after being valued at $3.15 trillion nvidia's highly anticipated Blackwell b200 ey chips are now valued at $2.5 trillion an architecture design fault in the chip was found abnormally late in the production process according to an Insider Microsoft Source exclusively revealed to the information the B2 200 chip is meant to push the boundaries even farther much like the h100 processors helped Nvidia surpass the 1 trillion market capitalization Milestone by training the majority of large language models llns the second generation chips are said to have four times the training performance of h100s and 30 times faster inference performance furthermore b200s are expected to handle identical a workloads with a 25x reduction in power consumption thanks to a 2.4x higher memory bandwidth for large data sets since nvidia's AI chipsets are used by Apple Tesla Google Microsoft Amazon meta and Tesla any delay until 2025 will result in a significant loss of income Timothy arcury an analyst at UBS group estimates that b200 and gb200 super chips at 32,500 and 43,4 units respective ly will make up 7% of nvidia's total shipments by the end of January 2025 this would explain why of the projected $34.5 billion about $3 billion would have been missing due to the delay nevertheless Nvidia still has a substantial supply of Hopper architecture notably the h200 chips the first indication that large scale shipments of h200 are not anticipated until after key3 came from taiwan's commercial times taiwan's semiconductor manufacturing company said in June that all of its production capacity had been allocated at the same time put another way since both fabulous businesses depend on tsnc AMD nvidia's rival is unable to take advantage of nvidia's delay this maintains nvidia's position as the primary funding source for the postmarket downturn with all these developments under consideration and analyst predictions we'll talk about Target projections and advice in today's video so make sure not to miss out however before you do if you'd like to stay up toate on vide most recent updates and the most recent news from the stock market you can subscribe to our Channel we publish daily updates about the biggest shifts in Market catalysts so click the Bell icon button to ensure you don't miss the most recent updates all right back to today's video Olivier we all know that Nvidia is the Bell weather and they report later on this August how important is this going to be in terms of an event for mag 7 the leadership and the concentration in the market and uh capex specifically with Nvidia I if they are maintaining Capital spending or even raising it then that's going to be a big confidence booster do you believe that is what is going to happen is that the right way to frame it I I think that's the right way to frame it I think they're you know the the market share that they have and the uh uh demand pipeline that they're looking at should should be enough uh I don't think there's going to be any major uh major issue there again uh the one thing that I do keep looking at and it's not a big deal but it's something to be prepared for just in case some of those numbers look a little bit weird is uh you know tsmc and and other fabricators uh maybe boosting just you know bringing a price increase that we may start to see uh in August or at least in the fall and so that's going to impact Nvidia it's going to impact AMD it's going to impact Apple arm Qualcomm mediatech all the the the major uh uh you know chip stocks that that you guys talk about that are really relevant to this AI uh disruption so that's just that's my one caveat that you know we may have to lower our expectations just a little bit uh based on on on that eventuality but that's it everything else is solid uh nidia's solid amd's gaining uh Qualcomm and mediatech are doing fantastic in the device space uh and obviously we're seeing some really interesting launches with the uh aips and copy the plus with Microsoft getting behind this uh Intel entering the market uh later this year shipping next year AMD entering the market in force now qualcom already having uh a really good quarter with uh with early sales of toopal plus PCS and I think we'll even see uh the mobile space go up in the uh you know low double digits uh growth year-over-year um thanks to on device AI so it's it it to me yes Nvidia is a bell weather but um I I don't expect any negative news from Nvidia uh at the end of the month a significant selloff on Wall Street is causing volatility on the tech heavy NASDAQ Composite which is led by Nvidia and apple Gil lur senior software Analyst at da Davidson talked about the Market's movement and his top Tech stock recommendations in spite of the decline because they are covering their Yen carry trade some Traders are selling because those Traders sold there is machine algorithmic trading that is making money following those two sales Index Fund computers are also being offered it's not as though someone woke up this morning and declared that the values of Apple Amazon and Microsoft had dropped by 5% from Friday that isn't the case Lura says according to him investors that base their decisions only on fundamentals haven't altered since Friday and large cap Tech businesses have excellent future prospects he continues by saying that some businesses will profit from artificial intelligence AI in the coming years but the stock price does not currently represent this value he cites apple as one of those businesses with purchasing potential stating that the company's AI integration will spur a cycle of iPhone upgrades he also mentions Amazon as a potential partner pointing out that as it develops its AI skills It's ADS Amazon web services division has more space to expand so what does this really mean for Nidia stock let's find out but first if you made it this far into the video thank you these videos take a lot of effort and time to make so if you enjoyed them please hit the like button subscribe to the channel this goes a long way in helping us grow that said back to the video AI remains worth watching segment for Global Investors in 20124 but how do you keep up with the AI sector and others that you may interested in I 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portfolio these rewards can be earned together so don't miss out and thanks again to Mumu for sponsoring this portion of the video we're seeing play out within the market very broad-based but really A lot of the bulk of that selling action coming from some of these mag seven names that had been working now for so long yeah it's a continuation of the trade that we've been tracking for several weeks now right when you take a look at What's led the market lower since basically mid July it's been big Tech right so it's not surprising on a day like today to see big Tech leading the way lower I've talked to a couple strategist this morning that have essentially argued it might actually be a good thing that big Tech is what's leading the market lower when you look at the sectors on the day the fact that you only see consumer discretionary in big Tech lower than the S&P 500 you can pull a positive spin out of that which is people keep wanting to sort of unwind their mag s trade from those names you're looking at on your screen but might actually be interested in putting money to work elsewhere it's not a complete flight to safety Panic move it's more so okay let's reposition and get into something else that could work I thought Kevin Gordon at Schwab made a great point about big Tech earnings last week to me he said it really was no different than the economic data story it's just a story of expectations and we had gotten to a point with a lot of these stocks trading near all-time highs that the expectations for them to keep beating earnings and raising revenue guidance and continuing to just go up up and up at some point you just can't meet those expectations and so it's not to say that those earnings weren't good because I think a lot of analysts we've talked to over the last week look at most of those companies earnings and say the fundamental story is in pretty good shape it's the fundamental story isn't quite as great as the market might have hoped and so you're seeing people just pull back their bets a little bit exactly we talked a lot about the lofty expectations heading into earning season and how high the bar had been set for so many of those mag seven companies and you're right because when you take a look at least for all the ones that have reported except for NVIDIA so far they have reported pretty solid I mean this is a broad stroke here but I think the overall takeaway so far this earning season has then they they have been holding up they have been showing impressive growth but of course the question is going forward the momentum or I guess to the extent maybe that some of that growth is going to slow given those lofty exp right and then you look specifically we're talking big Tech and you look look at what's down right now and what's down the most Nvidia is down the most why do you think Nvidia is down the most because those expectations had gotten so lofty right and the stock was up 50% this year more than that at one point Tesla's down Tesla had been ripping for the last three months to see Tesla down 6% a company where the fundamental story is in question and people are wondering about the earnings trajectory it just adds up and to see other stocks being weighed down by a lesser extent I do think again you find a little bit of solace in sort of that market action using trade data from Charles Schwab investors were net buyers of stocks in July but at a moderate pace and although they kept piling into their favorites like Nvidia Schwab Traders might be gloating about their decision to sell Tesla ahead of the August selloff over a 4 week period ending July 26 schwap investors dumped shares of Tesla Pao Alto networks and Boeing a component of the Dow Jones the timing of those who dumped their Tesla stock before the company's 3-day melt down this month was excellent in July Tesla's shares Rose by around 177% however investors in Schwab escaped a bullet a 99.5% decline since July 26 Tuesday saw the announcement by the US Commerce Department that it will be giving SK hyx funding totaling up to $450 million to support the construction of an advanced packaging plant and research and development center for artificial intelligence products in Indiana Iana the facility will feature an advanced chip production line to mass-produce Next Generation high bandwidth memory chips which are currently used in graphic processing units that train artificial intelligence systems according to SK hyx the second largest memory chipmaker in the world which announced in April that it would invest about $ 3.87 billion to build the facility the Nvidia supplier explained additionally the department intends to make $500 million in government financing available for the SK hyx project which is anticipated to be eligible for a 25% investment tax credit according to the government the memory packaging plant for artificial intelligence goods and the advanced packaging R and D Center would close a significant Gap in the American Semiconductor supply chain and generate 1,000 employment it implies that for the cuttingedge semiconductors that underpin artificial intelligence the United States will have the most Diversified and save supply chain globally Raymondo said reporters no other economy in the world has more than two of these companies producing cuttingedge chips on its Shores the government continued with all of these considerations Nvidia is unquestionably a great buy especially if you're looking to invest for the long term because the company hasn't reached its full potential yet what do you think about Nvidia stock is it a good buy at the current price please share your opinions with us in the comments ments section and don't forget to let us know what you think Nvidia is worth if you're interested in learning what other companies like Nvidia have been up to lately click on the next video on your screen we'll see you there