Nvidia Will 25% Crash On Q2 Earnings | NVDA Exposed By Analyst

Summary

The discussion revolves around the performance and outlook of Nvidia, highlighting its recent stock volatility and upcoming earnings report. Analysts are divided on Nvidia's future, with some expressing concern over its high valuation and competition in the AI sector. Several major investors have reduced their holdings, reflecting caution in the market. Despite these concerns, Nvidia continues to show strong growth, and its next earnings report is eagerly awaited to gauge the sustainability of its performance. The conversation also touches on broader market trends in big tech and AI stocks.

Takeaways

• 📉 The stock discussed experienced a 133% drop but quickly rebounded, indicating a volatile market reaction.
• 📈 Technical traders are watching for a bounce from the 200-day line, suggesting a potential recovery or continued upward trend.
• 🔍 Upcoming earnings reports for Nvidia are under scrutiny, with expectations of continued strong earnings per share growth.
• 🚀 Nvidia's stock has seen significant gains, up 32% in a quarter, highlighting the importance of staying invested in tech.
• 🤔 There's uncertainty about whether Nvidia can maintain its impressive growth, with some investors hedging with other sectors.
• 📊 Three significant investors have reduced their Nvidia holdings, which could signal a lack of confidence or a strategic move.
• 💬 Commentary on Nvidia's Blackwell chips and their production ramp-up in the second half of 2024 is anticipated.
• 📉 Concerns about Nvidia's stock valuation have led to a downgrade in its rating, reflecting potential overvaluation.
• 💡 The potential of AI and machine learning is driving interest in tech stocks, with Nvidia at the forefront of this trend.
• 📈 A user claims to have achieved significant returns using an AI-driven stock selection strategy, turning $4,000 into $143,000 in a year.
• 📊 Market predictions suggest that Nvidia's competition and industry outlook will be key factors in its future performance.

Q & A

What significant event is expected to impact Nvidia's stock price in the near future?

Nvidia's upcoming earnings report is expected to significantly impact its stock price, as investors are keen to see if the company can continue its impressive earnings per share growth.

What percentage of growth in earnings per share did Nvidia achieve in the last quarter year over year?

Nvidia achieved a 45% growth in earnings per share in the last quarter year over year.

What is the potential implication of the 133% drop in Nvidia's stock and its subsequent rebound?

The 133% drop and rebound suggest a market correction that was short-lived, indicating that the stock may have found support at the 200-day moving average line, which could be a bullish signal for technical traders.

What are some of the big names that have reduced their exposure to Nvidia stock?

David Tepper's Appaloosa Management, Stanley Druckenmiller's Duquesne Family Office, and Soros Fund Management are among the big names that have reduced their exposure to Nvidia stock.

How much of its Nvidia holdings did Appaloosa Management reportedly sell off in the last quarter?

Appaloosa Management reportedly sold off around 3.7 million shares, which is 84.4% of its holdings in Nvidia.

What is the significance of the commentary on Blackwell chips for Nvidia's future?

The commentary on Blackwell chips is significant as it relates to Nvidia's ability to ramp up production in the second half of 2024, which could affect investor confidence and the company's growth prospects.

What is the current consensus among analysts regarding Nvidia's stock rating and price target?

The majority of analysts have a buy rating for Nvidia's stock, with an average price target of $144, indicating a potential increase of 45% from its current price.

What challenges does Nvidia face in the next year according to the transcript?

Nvidia is expected to face challenges such as increasing competition, the potential for a market downturn, and the possibility of not meeting the high expectations set by its previous performance.

What is the context behind the potential collaboration between SoftBank and Intel to produce an AI chip?

SoftBank held talks with Intel to produce an AI chip that could rival Nvidia, aiming to combine ARM's chip designs with Graphcore's production expertise. However, the plan fell through due to Intel's inability to meet SoftBank's requirements.

What is the potential impact of Huawei's new AI chip on Nvidia's market position in China?

Huawei's new AI chip could challenge Nvidia within China, especially considering the US regulations that have restricted Nvidia from selling its advanced chips to Chinese customers due to national security concerns.

How has the broader technology sector performed in relation to Nvidia's stock movement?

The technology sector, including Nvidia, has experienced significant volatility and a correction, but has also shown strong gains in recovery, indicating a potential for continued growth despite market fluctuations.