WATCH THIS BEFORE NVIDIA REPORT EARNINGS TOMORROW!!!
In a Nutshell
Nvidia reports earnings tomorrow with expectations of $2.08 EPS and $91.9B revenue. The speaker holds Nvidia long-term but avoids trading earnings, noting the stock sits at a neutral $213 valuation with unattractive risk-reward. Bitcoin and MicroStrategy are overbought—the speaker maintains a small short position in MSTR at $127 average, ready to add on any Bitcoin selloff.
These notes were generated by AI and may contain inaccuracies.
Tomorrow is the big day as Nvidia is set to report earnings. The Nasdaq market ended the day up 0.62%, but from opening to closing, it was slightly a downturn with lower highs and lower lows. This downturn happened shortly after markets opened. A big gap up occurred with a retest of pre-market highs, which was captured in the live trading session. The market got rejected at previous highs and then retested the same support multiple times throughout the day.
During extended hours, Nasdaq sold off and this selling is bleeding into overnight hours. The overnight hours present a lot of volatility due to lower volume, so the market direction for tomorrow remains uncertain.
For markets to remain bullish, they need to hold above 700 on QQQ, the Nasdaq ETF. If QQQ begins to trade below 700, things can get very messy.
Nvidia is set to report earnings tomorrow with market expectations for earnings per share at $2.08 per share and revenue expectation at $91.9 billion. Based on the nine most recent earnings reports, seven ended in the red and two ended in the green. The four most recent ones all ended slightly in the red except for the Q1 report, which ended 4% in the red.
Nvidia is a successful company with a fair value of $260 per share, but currently trades at $213. A series of 58 analysts show a mid-range price target of $305 per share. The overall P/E ratio is 32 times its earnings, which is not the most expensive it has been. The company produces $253 billion in revenue a year and makes $159 billion in net income, leading the AI revolution.
Sign in to read the full notes
Get access to AI-generated notes, topic timestamps, and more.