That is The Takeaway from today’s Morning Temporary, which you’ll be able to join to receive in your inbox every morning together with:

Are you ready for the only most significant earnings report of 2024?

Interestingly, this company won the award for the only most significant earnings report of 2024 (and each quarter in 2023) when it reported three months ago!

I’m talking about Nvidia (NVDA). Earnings are out on Aug. 28 after the close of trading.

Daily, I get to the office by 4:20 a.m. and switch on some software we use to trace which stories and ticker pages are garnering essentially the most interest from Yahoo Finance readers. Each day, one of the crucial actively viewed pages on our platform is for Nvidia.

The world might be on the cusp of an alien attack, and I fancy people will still be hitting refresh on the Nvidia ticker page. Investors have turn out to be absolutely obsessive about an organization they’d never even heard of two years ago.

I can not blame them.

Nvidia’s stock is up 170% prior to now yr. Nvidia’s stock is up 3,000% prior to now five years.

These are insane gains, the sort that lure within the less-experienced investor hoping to retire early.

And Nvidia’s story is surprisingly easy to know despite the corporate’s incredibly complicated business. Nvidia makes the most effective artificial intelligence chips in a world being upheaved by AI. Easy. Nobody is even near Nvidia when it comes to AI chip performance and forward-looking demand.

I do wish to caution that the setup on Nvidia going into the quarterly report is a little bit different this go around. While the Street is staying super bullish on Nvidia heading into the print, they’re a touch cautious amid reported shipment delays for Nvidia’s powerful latest AI chip Blackwell.

There’s good reason for the bullishness based on a bunch of recent signals from earnings reports:

• Taiwan Semiconductor (TSM) just cited strong AI demand when it reported.

• AMD (AMD) recently lifted its sales for data center chips for the third time in a yr.

• Super Micro Computer (SMCI) cited strong demand for its liquid cooling solutions.

• Nvidia chip customer Meta (META) just raised its capital expenditures guidance for 2024 and 2025 by billions.

“We expect Nvidia to report beat/raise results, by which upside might be driven by strong demand for Hopper GPUs. Given the Blackwell delay, we consider Nvidia will prioritize the ramp of B200 for hyperscalers and has effectively canceled B100, which might be replaced with a lower cost/performance GPU (B200A) targeted at enterprise customers,” Keybanc analyst John Vinh said in a client note.

Story continues

For Nvidia’s report back to be embraced, I feel investors must see at the least two things:

If this happens, it could shake off just a few bears and set the table for what EMJ Capital founder and tech investor Eric Jackson told me on the Opening Bid podcast.

“I’m saying [Nvidia’s value] could double again between now and the tip of the yr,” Jackson said.

To place that in perspective, Jackson thinks Nvidia’s market cap could hit $6 trillion by year-end from $3.2 trillion or so currently.

Jackson reasons the corporate stands to get there by delivering a really, very strong earnings report this week or in November (or each) that shows off continuing demand for H100 and H200 chips while teeing up the potential of its latest AI-focused Blackwell chips.

Rest up. It is going to be a busy week ahead.

3 times each week, I field insight-filled conversations with the most important names in business and markets on my Opening Bid podcast. Find more episodes on our video hub. Watch in your preferred streaming service. Or listen and subscribe on Apple Podcasts, Spotify, or wherever you discover your favorite podcasts.

Brian Sozzi is Yahoo Finance’s Executive Editor. Follow Sozzi on X @BrianSozzi and on LinkedIn. Tips about deals, mergers, activist situations, or the rest? Email brian.sozzi@yahoofinance.com.

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