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 * Home
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 * The Apple of the Market’s Eye Announces Earnings Next Week… Here’s What You
   Can Expect

Meet Louis Navellier


THE APPLE OF THE MARKET’S EYE ANNOUNCES EARNINGS NEXT WEEK… HERE’S WHAT YOU CAN
EXPECT

Let’s preview NVIDIA’s earnings report next week…

6d ago · August 23, 2024 By Louis Navellier, Editor, Growth Investor


Source: Michael Vi / Shutterstock.com

The summer is drawing to a close, and that means one thing… school is back in
session.

Students have begun to load up their backpacks and return to classrooms while
the lazy sun-soaked days give way to structure and routine. And as they say
goodbye to sweet summertime, Wall Street is also saying goodbye to its own
season: earnings season.

Much like summer, the earnings season offers a brief period of clarity and
excitement. It gives investors a window into how companies performed during the
quarter and sets the tone for the market’s next phase.

Likewise, both transitions – whether in classrooms or on Wall Street – signal
the importance of moving from reflection to action.

For students, it’s about moving from the freedom of summer to the structure and
goals of a new academic year. For investors, it’s about shifting from digesting
quarterly reports to assessing long-term strategies based on what they have
learned. And just as teachers and students begin setting the agenda for the
months ahead, investors use the insights from earnings season to adjust their
outlook and prepare for what’s next in the market.

But before we can fully put earnings season behind us, we do have the grand
finale scheduled for this upcoming Wednesday, August 28. And there is one stock
in particular, the star student of the markets, that will wrap up the season.

I’m talking about NVIDIA Corporation (NVDA).

So, in today’s Market 360, let’s take a look at what investors are expecting
from the company’s earnings report next week. Then I’ll share the important
shift NVIDIA is making as a company, and how you can profit from it.

WARNING: Why 31 Billionaires Are Getting OUT of Stocks (Including: Musk,
Buffett, & Bezos)




EXPECTATIONS FOR NVIDIA’S EARNINGS

NVIDIA has a history of hitting it out of the park quarter after quarter. The
company continues to experience intense demand for its artificial intelligence
chips, posting positive earnings surprises of 9.8%, 11.4%, 18.7%, and 29.4% in
the past four quarters, respectively.

Given this track record of positive earnings surprises and the overall AI craze,
expectations for this quarter are beyond high.

For its second quarter in fiscal year 2025, analysts forecast earnings to surge
137% year-over-year to $0.64 per share. They expect revenue to soar 111.6%
year-over-year to $28.59 billion. The analyst community is raising the bar, too,
having upped earnings estimates by 7.6% over the past three months.

Now, I should note that a recent report stated that NVIDIA’s next-generation
Blackwell chip could be delayed by at least three months. While originally
slated to launch around October, a recently discovered flaw threw a wrench in
that plan.

According to AI Business, “manufacturer Taiwan Semiconductor Manufacturing
Company (TSMC) uncovered the reported design flaw, which affects the processor
die connecting two Blackwell graphic processing units (GPUs) on a single board.
Given this, the company has allegedly decided to delay shipments and revamp the
design of the chips.”

While customers and partners alike have indirectly confirmed this news, NVIDIA
has yet to make a statement. So investors will be looking for an update on
Wednesday in the company’s earnings report.


LOOKING AT THE REPORT CARD

Clearly, based on these expectations, NVIDIA is slated to be the star student
this earnings season. In fact, its earnings should push the S&P 500’s earnings
growth rate up to over 11% for this quarter, the strongest number in two years.

But does the company’s report card reflect its numbers? Well, if you look below,
my Portfolio Grader gives the company an “A” for its Total Grade.

Likewise, NVIDIA’s Quantitative Grade is also an “A” and holds a “B”-rating for
its Fundamental Grade. This tells us it is a stock with superior fundamentals
that is also backed by persistent buying pressure, i.e., money is still flowing
into the stock.

It is safe to say that NVIDIA is still the apple of the market’s eye with this
report card.

And if I could give its CEO, Jensen Huang, a grade as well, he would get a
resounding A+. Not only does he foster a work environment where creativity and
experimentation are encouraged, but the culture of innovation he has built keeps
NVIDIA one step ahead of its competitors at all times.

I should also add that, for the year so far, shares of NVDA are up 161%. And in
my Growth Investor service, we are up by nearly 3,000% since adding it to one of
our Buy Lists in 2019.

Now, when you look at its size, NVIDIA is sitting at a $3.14 trillion market cap
– just behind the market leader Apple, Inc. (AAPL).

But don’t let that size fool you… there is still plenty of growth ahead. In my
opinion, NVDA will be over $200 per share in 2025. That’s partly thanks to a
huge shift the company has been making recently…


HOW TO PROFIT FROM AI INNOVATION

For decades, NVIDIA focused solely on microchips. But more recently, data
centers have quietly become a larger and larger share of their revenue. For
example, in the company’s first quarter of fiscal 2025, data center revenue hit
$22.6 billion. That’s up by 23% from its fourth quarter 2024 and a whopping 427%
from a year ago.

I should also add that Huang calls these hyperscale data centers “AI Factories.”
He also noted that “the next industrial revolution has begun,” and it started
with these data centers.

Now, the hyperscale data center industry is worth nearly $50 billion a year, and
it’s expected to grow 20% year-over-year for the next decade. However, there’s
just one problem…

The data center industry is facing a shortage of power. And without enough
electricity, data center buildings will screech to a halt and the growth of the
AI industry could be severely stunted.

That’s where the presidential election comes in. I predict that if Donald Trump
wins the election, he will fix the power shortage by signing an emergency
executive order on energy. This, in turn, would usher in a Second Wave of the AI
Boom.

Plus, there’s a new set of AI stocks that could take off on or before November
5.

So, as the election draws near, you’ll want to be prepared. Because these AI
stocks are on the verge of massive gains.

Click here to learn more about what the Second Wave of the AI Boom is and how
you can profit from it.

(Already a Growth Investor subscriber? Click here to log in to the members-only
website.)

Sincerely,

Louis Navellier

Editor, Market 360

The Editor hereby discloses that as of the date of this email, the Editor,
directly or indirectly, owns the following securities that are the subject of
the commentary, analysis, opinions, advice, or recommendations in, or which are
otherwise mentioned in, the essay set forth below:

NVIDIA Corporation (NVDA)

--------------------------------------------------------------------------------


AERIAL FOOTAGE OF JEFF BEZOS’ NEXT TRILLION DOLLAR BET

Located 30 miles from Baltimore — Jeff Bezos has been quietly investing in one
tiny company that’s ground zero of a technology revolution that could change
everything.

Bank of America said the technology would be, “Bigger than fire and bigger than
all the revolutions that humanity has seen.”

And for those who get in now, this may be the biggest opportunity you’ll see in
your lifetime.

Click here for the full story

--------------------------------------------------------------------------------

Submit



Louis Navellier Editor, Market 360


MEET LOUIS NAVELLIER

Louis Navellier is one of Wall Street’s renowned growth investors. Providing
investment advice to tens of thousands of investors for more than three decades,
he has earned a reputation as a savvy stock picker and unrivaled portfolio
manager.

Learn more about Louis

--------------------------------------------------------------------------------

Article printed from InvestorPlace Media,
https://investorplace.com/market360/2024/08/the-apple-of-the-markets-eye-announces-earnings-next-week/.

©2024 InvestorPlace Media, LLC


MORE FROM LOUIS NAVELLIER

Market Analysis


NVIDIA’S EARNINGS ARE IN: WERE THEY A JACKPOT OR A BUST?

32m ago · By Louis Navellier, Editor, Growth Investor

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QUANT RATINGS UPDATED ON 73 STOCKS

2d ago · By Louis Navellier, Editor, Growth Investor

Market Analysis


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