How Nvidia Could Boost the Global Economy by $15 Trillion | Nvidia Stock | NVDA Stock | NVDA

Nvidia is gearing up to report earnings next week in Wall Street well it's still feeling bullish on the AI darling despite some worry over potential delays of its Blackwell chips Yahoo finances Madison Mills joins us now with more Maddie hey shaa so if you saw the Nvidia sell off on Thursday and got a little bit worried you're not crazy for that right it was a fairly substantial selloff on Thursday made Nvidia responsible for a third of the downward pressure that we saw in the overall Magnificent Seven basket and it was the biggest larded of the group now Wall Street responding saying keep calm and carry on for investors a slew of big Banks reiterating their buy ratings on Nvidia with nearly 90% of analysts maintaining a buy rating on the stock you got City Goldman and Key Bank among the banks that are maintaining that bullish view so I'm going to go through some of the company takeaways and then I'll talk about the stock and the technical side of things so Goldman in particular focusing on how the totality of earnings that we've gotten so far does indicate an improved AI and Outlook from other big Tech names think about the hyperscalers your Amazon microsofts uh meta who make up 40% of nvidia's Revenue all of those firms have talked about increased AI expenditures despite any concerns with the Blackwell chip delay if these companies are still maintaining their robust AI spend they're going to be focusing their expenditures on other chip offerings from Nvidia that are a little bit more affordable but if they're continuing that expenditure on their balance bance sheets and spending on Nvidia chips that is going to continue to be a positive signal for NVIDIA on a fundamental level now from a stocks perspective in a lot of these notes there's this idea that sell-offs for NVIDIA are quote valuation correctors these sell-offs are buying opportunities this is something that so many of our guests for the past several years honestly have talked about with Nvidia if you are someone who has not had an opportunity to get in on this stock perhaps when you see a sell off that might be considered a buying opportunity for you lastly I want to prep everyone for nvidia's earnings let's say you listened to the analyst from Goldman I just talked about and you're interested in getting in on Nvidia what can you expect heading into their earnings next week from a stocks perspective the options Market is pricing in a 9 to 10% move in either direction after earnings that's according to steuart Kaiser over its City and if the earnings are positive that means that Nvidia could add $270 billion to its market cap that is more than the entirety of a McDonald's to it market cap just off of its earnings and lastly let's say something happens Nvidia earnings are negative investors who've come on our show and analysts who've come on our show catalyst have said to think long term if you look at Nvidia compared to the S&P 500 it is beating the S&P significantly by double and even triple digits when you go to the onee here you can see on your screen Nvidia is up 174% over the past year and the S&P up just 28% in perspective there all right Maddy great break break down there we're going to continue tracking this as we know you will as well thanks so much Maddie the emergence of artificial intelligence AI has been the predominant Trend since the start of 2023 propelling wall Street's major stock indexes to unprecedented levels of performance the ability of software and systems to learn over time without human assistance is the Allure of artificial intelligence this enables ad driven software and systems to do their tasks more effectively and possibly even velop into new skill sets the experts at pu estimate that by 2030 AI will have the potential to add an astounding $15.7 trillion to the global economy covering the majority of sectors and industries while many businesses have profited from the AI Revolution none has been more successful than semiconductor Behemoth Nvidia large language models llms were trained on nidia's h100 Graphics Processing Unit GPU which quickly became the preferred semiconductor for generative AI applications in the corporate world Nvidia has easily rais the price of its h100 gpus to between $30,000 and $40,000 per chip or about two to three times what major competitors are charging for their ey data center gear as demand has outpaced Supply the Allure of Premium pricing is that it has improved nidia's Financial results the company's adjusted gross margin margin which was 78.3 5% at the end of April 28 2024 improved by over 14 percentage points over the preceding five reported fiscal quarters nor has Nvidia shied away from making long-term Investments when it launches on the market the following year the Next Generation Blackwell platform will be more energy efficient than its predecessor and increased computing power in six areas including generative Ai and Quantum computing in the meantime CEO Jensen hang gave a brief preview of the brand new Reuben GPU architecture in June this GPU design will launch in 2026 and operate on a separate processor nvidia's QA platform is the last missing ingredient that has contributed to the company's market capitalization growing by more than $2.8 trillion since the beginning of 2023 this software platform is used by developers to create lenss and it collaborates with the company's top Hardware to retain Enterprise customers devoted to its Suite of products if you want to keep up with nidia's latest updates and keep up with the stock market latest news you can subscribe to our investing tutorial Channel as we post daily updates about the biggest changes and Catalyst in the markets so click the Subscribe button if you don't want to miss the newest Market updates now back to today's video hey everyone and welcome to earnings cheat sheet for Friday August 23rd it's Alexis Garcia and Ed Carson here and we'll be taking a look at some key upcoming earnings to help you prepare for the week ahead so Ed all eyes on Nvidia coming up next week uh what else do you have on deck for us today yeah gonna spend a lot of time on Nvidia but I also want to take a look at Birkenstock and aboc cromi and Fitch all right well let's get to Nvidia then the AI Powerhouse is scheduled to report Q2 earnings on Wednesday August 28th earnings are expected to Surge 138% to 64 cents per share and revenue is expected to rise 112% to 28.6 five billion and here's why we're watching Nvidia I mean this is really what is driving the market right now we'll want to see if Executives provide confirmation of the reported Blackwell chip delay and will customers wait for the next gen AI chips are by more of the current generation Hopper chips that's the case we'll also want to see if there are any signs of a pause in spending by Major cloud service providers and we're also going to want to see if there's an update on nvidia's China specific AI chip all right Ed so as we all know uh Nvidia one of the biggest names out there uh really driving the market so what are your thoughts heading into earnings as you say it's it's the most important stock the most important company in the market over the past couple of years I mean the a AI Revolution along with maybe you know hopes for Fred rate Cuts have been driving the market rally in 2024 uh so Nvidia earnings just absolutely huge it's going to be amazing earnings again they're going to be great you know and presumably they'll at least meet probably beat I think they'll be more concerned about guidance given that there's been this reports that that their next Generation ship is going to be delayed by a few months that won't affect things probably for the next quarter but maybe in you know the following quarter at the end of the calendar year and then maybe the early next early next year because yeah so that's that's where all that is so are they signaling that their growth and that AI spending in general is very strong we saw some pretty positive comments from the likes of Microsoft and meta Amazon about their II spending so that's all been positive but now Nvidia it's a month later and this is the real name can can they deliver and you know what's their Outlook because obviously expectations are high all right well expectations are high and uh so are share prices right now Ed let's go to the chart starting on the daily uh Nvidia working on a cut base with an official buy point of 1476 uh probably could have keyed off the 50 dayline here as an early entry but what are your thoughts on the technical action and you know if you're in Nvidia how are you handling earnings and if you want to get in how are you going to be looking at results yeah I think for anybody who who's held it you know from the last breakout or or earlier they could probably hold it I mean you know you might end up it could be ugly if the if it sells off but that's a pretty decent cushion we're talking about 25% or so from here so that seems pretty reasonable and much much bigger cushion for longer term investors for people who just bought on the 50-day line uh there there's more of a decision to make they go there's really not much cushion there yeah that could have been an early entry it's possible that Nvidia will form a handle uh on a at least a weekly chart we'll see we'll see it's right now it's fractionally lower you know it needs to be lower for the week that's not much of a handle there's a bit of a ShakeOut so you could probably use this week's highs as sort of a pseudo handle you know if it on earnings like if it moved above that you could use the on the daily chart there the 135 level or so I think or one yeah 136 and that could also be sort of like a seen as a lops side of double bottom it's also around a closing high so lots of little places where you could buy it relative strength line still holding up reasonably well it's not that far from record highs even though the stock is still off highs you know what this does what Nvidia does there's so many other stocks that are going to move off of this uh it's just beyond the whole market so this is this is one of the most important uh earnings reports uh I think with a lot of the with the market rally sort of just getting going for a few weeks and with the concerns about the black World ship uh is is so important I will say one other thing on the technical side it sold off on her on high volume and if you notice there really wasn't any volume on the way back up so that would be that's one concern and you certainly like to see it on earnings there's going to be volume whether whether the stock goes up or down but you would like to see some volume uh as this makes a move up so I think that would be probably the the weakest part technically is that we haven't seen institutions really piling into this name uh and maybe so with you know a lot of news you know that's coming up Wall Street is expected to discover on August 28th just how brittle Nvidia and AI as a whole are despite the company's seeming Flawless operations ramp wall Street's favorite AI startup will reveal its operating statistics for the second quarter of its fiscal year this coming Wednesday August 28th Nvidia has done nothing less than completely destroyed even the highest analyst forecasts over the last five quarters the company's impressive pricing power significant Enterprise demand for its Ai gpus and lack of competition have all contributed to its ability to accumulate a backlog that would make any tech company jealous since the results of over 95% of snp500 companies have already been released and the most of the significant results for the retail sector are already known the key to earning season is essentially ended that being said Nvidia the only member of The Magnificent 7 to have not yet released results is included in this week's lineup of quarterly results from over 140 businesses including 15 from s and p500 members with its chips being the only option for processing the most intricate and demanding computations Nvidia has solidified its position as a leader in the emerging artificial intelligence AI Market recent quarters have seen viia routinely release beat and raise quarterly reports thanks to their leadership when the company releases its results on Wednesday August 28th following the closing of the market we'll see if it can keep up its operating momentum the period's estimates have virtually stayed the same over the past few weeks which is exceptional in comparison to other recent quarters on$ 28.2 billion in Revenue Nvidia is predicted to generate $0 and 63 cents in earnings per share or Plus plus 109% respectively in year-over-year growth this chart price consensus and surprise illustrates the historical trend of Nvidia revisions during the recent market downturn nvidia's shares took a serious knock but they have essentially recovered the majority of those losses as the chart below demonstrates the company has more than doubled in value this year and has easily outpaced the Zach Tech sector the overall market and the m b seven stocks so what does this really mean for nidia's 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 Wall Street is expected to discover on August 28th just how brittle envidia and AI as a whole are despite the company's seeming Flawless operations ramp wall Street's favorite AI startup will reveal its operating statistics for the second quarter of its fiscal year this coming Wednesday August 28 Nvidia has done nothing less than completely destroyed even the highest analyst forecasts over the last five quarters the company's impressive pricing power significant Enterprise demand for its Ai gpus and lack of competition have all contributed to its ability to accumulate a backlog that would make any tech company jealous since the results of over 95% of SN p500 companies have already been released and the most of the significant results for the retail sector are already known the key2 earning season is essentially ended that being said Nvidia the only member of The Magnificent 7 to have not yet released results is included in this week's lineup of quarterly results from over40 businesses including 15 from s and p500 members with its chips being the only option for processing the most intricate and demanding computations Nvidia has solidified its position as a leader in the emerging artificial intelligence AI Market recent quarters have seen viia routinely release beat and raise quarterly reports thanks to their leadership when the company releases its results on Wednesday August 28th following the closing of the market we'll see if it can keep up its operating momentum the period's estimates have virtually stayed the same over the past few weeks which is exceptional in comparison to other recent Quarters on $28.2 billion in Revenue Nvidia is predicted to generate $0.63 in earnings per share or plus 13 3.3% and plus 109% respectively in year-over-year growth this chart price consensus and surprise illustrates the historical trend of Nvidia revisions during the recent market downturn nvidia's shares took a serious knock but they have essentially recovered the majority of those losses as the chart below demonstrates the company has more than doubled in value this year and has easily outpaced the Zach Tech sector the overall market and the mag s stocks so what does this really mean for nidia's 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 You video will spike it next week Michelle Connell joins us from Porsche Capital Management Michelle this is obviously the Highlight for next week uh how much is pressure still on for NVIDIA or did pal kind of take some of this off and let the rest of the market carry some weight I think he just passed the ball on to Nvidia Oliver thanks for having me all the pressure is on this one stock and I've even read some analysts saying that the is this is the most important earnings report not of the year but ever and so if that isn't pressure I don't know what is seriously uh at least the markets kind of BR down a little bit right like uh in the first couple earnings it was like uh that's all we had really in the first quarter second quarter there's some truth to that but we still need to keep in mind when you look at Nvidia and some of the top like the top uh five technology Holdings they still represent 35% of the market cap of the S&P that's a big weight and at the very top is NVIDIA very true uh it also now is so close to the highs that like it's not like the valuation stories you know changed uh there was an argument that our selloff brief as it was uh to start off this month was going to kind of clear the froth out but how do you uh see it now that we've ramped up so much like Nvidia and its cohort Michelle what did those valuations look like now the valuation still has its bounce back as you've said but I want to remind people the reason why it dropped in the beginning of August is NVIDIA it was found out I don't know that they announced it I think it was actually someone else announced it that their next Generation AI chip the Blackwell b200 is being pushed out several months several meaning three so that's what I think we really want to look at at this earnings announcement where are they in terms of that chip they also have two other AI chips that are supposedly being rolled out by the end of the year and it doesn't just infect Nidia keep in mind that you have Google Microsoft and meta they are waiting with baited breath for these chips Google has ordered uh about1 billion dollar of chips that they need at the beginning of the year to build out their AI capabilities the Market's evaluation of the company's capacity to increase production of the Blackwell chips along with Management's outlook for the current and next quarters will be the primary factors influencing the stocks performance going forward the market has been speculating that Nvidia is having production issues that could cause the product's release date to be delayed given that the stock has increased by over 150% just this year most most investors will conclude that the valuation is already quite high that is not the real world it is a simpler one the current price of Nvidia shares is 40.2 X forward 12month EPS forecasts this multiple is nearly twice as high is the comparable s and p500 index multiple of 21.5x Nvidia shares have fluctuated between 26.8 X and 106.3 X forward 12mon expectations over for the past 5 years with a median of 50.7x during that same period examining the size of the premium or discount the company is currently enjoying in comparison to its historical range is another method of assessing nvidia's valuation the forward 12-month P/E multiple for NVIDIA is currently 187% of the multiple for the S and p500 the Stock's multiple during the last 5 years has ranged from 134% to 569 per with a median of 248 per over this time