Nvidia Will Crash TO $90 | Nvidia Stock Earnings News

% so what's happening here is the exact opposite q1 this year was up 262 this this quarter was up 122 and then it's supposed to be 77 and 56 so the comps are really important here I don't think valuation is that important if you're looking at the oute right now because a lot of folks who are very bullish on this stock they think they're going to continue to outperform so the thing I would just mention is that you know it just didn't hit the whisper numbers on this quarter and the guidance and so you could say that's a bit cautious but they're not always solving to what the street expects you know what I mean there is consensus they want to beat that but they're not going to get in front of what they think you know the street or investors are certainly feeling about it so again with the stock up 150% we're looking at this thing down 4% around here until the first quarter of 2025 although Nvidia had previously projected that production would accelerate in the latter half of the Year these delays could impact the company's ability to meet market demand and affect its Revenue projections so Dan says the company uh not only has a lead it's got a moat guy says the sequential notice Market too high they set the bar bar too high for themselves so guy let off saying if you would have went back and said how does it look now from from this through this prism it would be a stellar quarter maybe right but now you look at it and you as nvidia's stock has recently experienced a notable decline of around 20 to 25% investors might be feeling anxious and wondering if it's time to rethink their positions this drop is not occurring in isolation but amidst a broader downturn in semiconductor stocks and the overall Market they what what have you done for me lately and it's still knocking the cover off the ball it's just not in in a point of reference or relative to where it's been you could poke some holes in it I don't think you could pull poke a big hole in it look look at what it's doing after hours it's slightly people who and you think about % that's what they're guiding that's what % I'll just say this 85% market share is not something that you can maintain ultimately and the market often reacts sharply to news which could lead to overreactions for investors who believe in long-term potential this could present an opportunity to buy at a lower price yes and when you talk about you know the gross margins they were talking about 77% gross margins this a quarter ago they came in about 75% that's what they're guiding to so again it is Theirs to lose and you think about the SMH the ETF that tracks the socks you know you have Nvidia making up 22% of that you have Taiwan semi that also has 85% of the market share making these chips right sector rotation wise notes that the market is experiencing a rotation away from technology and Telecom sectors towards more defensive sectors such as financials consumer staples and so you say to yourself This geni geni trade is really embedded in these two names you have the hyperscalers but they're really out underperforming since they reported earnings and so if you don't see a like a really sequential increase in their capex at some point it is going to be decelerating the whole sector is going to take a pause so I'll just be very clear there's nothing wrong with the quarter there's nothing wrong with the guide I wouldn't be buying it here you know the stock traded down to 90 bucks Ty just asked you about like any corals right like that still be incredibly profitable however it will lose its former glory and its stock price would come crashing down it needs to diversify soon and keep it as its top priority we've seen and so what I keep hearing is it's different this time and I go back to when I started the markets in 1997 and and the excitement around the internet and how it's going to change almost every single industry this transformative technology and that did happen but there was obviously a bubble in the stock market first time in the past previous quarters and returned back to its previous oversold value of $90 per share I'm not here to predict or try to pretend like I know exactly what's going to happen although I know and it's very easy to see on the 4-Hour time frame when you think about the NASDAQ sold off 80% from its highs I'm not suggesting that's going to happen but go back to 2021 when there was excitement about the metaverse it was Netflix it was Nvidia it was uh you know a couple other names oh meta and um you know a few others that sold up 70% from their highs the semiconductor sector which Nvidia is a part of has faced a decline mirroring the overall Market downturn this could be due to several factors including macroeconomic conditions or simply the fact that stocks had surged too quickly now they weren't $3 trillion market cap companies but when you think about Nvidia just sold off 35% from its highs in June to its lows in early August I just think the idea that that couldn't happen again is very curious to me so I'm just I want to ask you like what are your clients suggesting you know who are less bullish on this thing where could it go on smaller than expected beats and the potential for a hiccup because we haven't seen a hiccup in this thing since 2021 a disappointing forecast could raise concerns about excessive spending and whether the infrastructure buildout has become overly inflated and while I avoided the Pain by not putting a single penny into tech stocks I missed the big Winners like amazon.com so will Nvidia be the next Amazon the last time we upgraded Nvidia I think the stock was off 70% uh 75% yes we approach Wednesday wall Street's attention will be sharply focused on the volatility in the stock market particularly with regard to Nvidia and its substantial role in the AI and cloud computing sectors the market is currently grappling with several uncertainties that could impact nvidia's performance and broader investor sentiment among these concerns are indications that AI demand might be cooling off or that a significant Cloud customer could be tightening its spending which could potentially translate into notable Revenue slippage for NVIDIA despite these concerns I personally believe that Nvidia will manage to hold its ground the buzz around artificial intelligence remains strong driven by a plethora of engaging and often Sensational content circulating online the excitement over a continues to be fueled by various viral clips and discussions that highlight its capabilities orbe it sometimes in an exaggerated manner this ongoing Fascination suggests that the AI sector still holds considerable promise though it's crucial to differentiate between hype and actual performance looking at nvidia's financial performance over the past three quarters the company has shown remarkable growth with Revenue more than tripling on an annual basis this growth has been predominantly driven by its data center business which underscores the increasing importance of AI and data processing capabilities however it's important to consider that nvidia's impressive performance isn't occurring in isolation the broader technology sector particularly the Fang stocks Facebook Amazon Netflix Google and others plays a significant role in the market these Tech Giants have become so influential that even minor downturns in their performance can provoke substantial reactions on Wall Street the market dynamics become even more complex when a handful of dominant stocks prop up the broader market index this concentration can be a double-edge sword while it can buy the market in the short term it also poses risks if these leading stocks begin to falter in such scenarios invest and analysts may start to worry about potential Market Corrections or bubbles especially when the market is heavily reliant on a few High performing stocks in light of these factors nvidia's upcoming forecast for the October quarter will be closely scrutinized by investors the company is expected to report a substantial Revenue growth of approximately 75% reaching around $31.7 billion a robust and optimistic forecast would suggest that nvidia's well- capitalized clients are still eager to invest in AI infrastructure signaling continued strong Demand on the other hand a more cautious or disappointing forecast could raise alarms about whether spending on AI infrastructure might have become excessive indicating that the current investment climate could be overheated recent comments from industry leaders add another layer of complexity to this situation for instance the CEOs of Google and meta have been vocal about their support for the ongoing pace of their AI Investments they argue that under investing in AI poses a greater risk than overspending reflecting their commitment to advancing AI capabilities despite potential Financial strains this perspective is also part of a broader narrative where technology companies justify their signific ific expenditures on AI by emphasizing the potential risks of not investing enough moreover former Google CEO Eric Schmidt recently shared insights during a Stanford video later removed about the enormous demand for processors as among top tech companies but according to Schmidt these firms are seeking processes worth between 20 billion and $100 billion however despite nvidia's expanding profit margins and impressive growth there are ongoing questions about the long-term return on investment for its high cost chips these chips which can cost1 T of thousands of dollars each are purchased in bulk by Cloud providers and other major clients the question remains whether these investments will yield the anticipated returns over time another critical issue for NVIDIA involves its next Generation AI chips known as Blackwell recent reports have suggested that Nvidia is encountering production challenges that could delay the roll out of these chips in summary nvidia's performance characterized by a significant rise followed by a recent decline underscores the inherent volatility associated with high growth technology stocks this type of parabolic Rise often leads to a subsequent Sharp decline which can create challenges for investors and broader Market stability as Nvidia navigates these complexities it's essential for investors to remain informed and prepared for potential fluctuations staying updated with accurate information and maintaining a strategic approach will be crucial for navigating the current market landscape for ongoing insights into nvidia's developments as well as broader economic and political Trends consider subscribing to my newsletter this will ensure you remain well informed and equipped to make informed investment decisions this drop is not occurring in isolation but amidst a broader downturn in semi semiconductor stocks and the overall Market let's delve into whether this situation warrants Panic or if it's merely an overreaction to Sensational headlines understanding the current situation recent stock decline nvidia's recent stock price dip is substantial raising concerns among investors this drop while significant aligns with a broader Trend affecting semiconductor stocks and the General market leading to a correction despite this recent drop Nvidia has had an extraordinary year its stock has surged by approximately 116% year-to date and the company's market capitalization is an impressive 2.63 trillion this substantial rise reflects nvidia's robust performance over the past year but it also highlights the inherent volatility that a company's high growth stocks evaluating valuation metrics price to earnings PE ratio nvidia's forward PE ratio is currently 36.5 while this might seem high at first glance it's crucial to view it within a historical context comparing this forward PE ratio to nvidia's 5year average reveals that it is actually lower than the historical mean this suggests that from a forward-looking earnings perspective the stock may not be as overvalued as appears other key valuation metrics price to sales PS nvidia's PS ratio is currently 20.2 times which is notably High compared to its 5year average of 16.8 times this indicates that the stock might be trading at a premium relative to its sales reflecting High investor expectations for future growth price to free cash flow PF CF the current PFC FF ratio is lower than its historical average this metric suggests that Nvidia might be reasonably valued in terms of its cash generation capabilities which is an essential aspect of a company's Financial Health price earnings to growth PEG ratio with the PEG ratio of 1.09 nvidia's valuation appears reasonable in relation to its expected growth rate a PEG ratio below one can indicate undervaluation while a ratio above one might suggest overvaluation in nvidia's case the PEG ratio suggests that the stock is not excessively expensive relative to its growth prospects assessing the risks and Market reactions historical context and Market reactions valuation metrics can sometimes provide a misleading picture especially when a company faces specific operational issues for example Intel appeared to be undervalued before it experienced significant operational problems while Nvidia is not in the same situation it's crucial to recognize that a weak Financial quarter or disappointing guidance could make the stock appear more expensive than it does now recent headlines and their impact recent headlines have focused on delays concerning nvidia's new AI chip specifically the Blackwell series according to reports these chips have faced design flaws which means that significant shipments might be postponed until the first quarter of 2025 the affected chips are vital for nvidia's major clients including Microsoft meta and Google such delays could potentially impact nvidia's business relationships and revenue projections market and analyst perspectives short-term reactions and investment opportunities if the market overreacts to the news of delays the upcoming earnings report scheduled for the end of August will be crucial in determining nvidia's short-term Direction analysts expect the company to report earnings per share EPS of 60 cents and revenue of $2.85 billion future growth expectations analysts have revised EPS estimates upward in recent months with 38 upward revisions and only two downward revisions for fiscal 2025 sales growth is projected to be 97.6% year-over-year with EPS growth at 111% although growth rates are expected to slow down in the subsequent years projections remain strong analysts anticipate sales and EPS growth of 35% for fiscal 2026 and 15 to 16% for 2027 long-term Outlook and Company performance previous performance and growth Trends examining nvidia's performance over the past year and a half reveals impressive growth particularly in its data center segment Revenue in the data center sector increased by 23% quarter over quarter and 27% year-over-year however other segments such as gaming have experienced a slow down with quarter over quarter Revenue down by 8% though still up year-over-year future prospects looking ahead nvidia's Automotive segment is expected to continue growing driven by the increasing adoption of smart cars the company is also likely to benefit from expanding its market share in this sector despite the slowdown in gaming and other areas nvidia's Data Center business remains a critical focus and its overall growth traj appears positive conclusion short-term volatility Vis long-term potential while the recent headlines and stock decline might be caused for concern it's essential to assess nvidia's overall performance and future potential the company has shown remarkable growth particularly in the data center business despite some challenges in other segments short-term Market reactions to news can create volatility but they might also present opportunities for those who believe in nvidia's long-term prospects upcoming earnings report Richard Weiss who you quoted is discussing several key points regarding the current market envir environment and investment strategy here's a breakdown of his perspective nvidia's Market influence Nvidia has been a significant player in the market especially given its role in the technology and AI sectors however y suggests that the focus on Nvidia might be diminishing as its story may have already reached its peak he believes that the Market's attention is Shifting away from Nvidia and other Tech Giants this shift indicates a broader Market Trend where investors are moving their focus to sectors that are perceived as more