Nvidia faces day of reckoning

Can Nvidia save the stock market?

We shall find out today at 4:20pm when the company releases its earnings report.

My AI Profit Predictor is signaling trades in the Magnificent 7 stocks – including NVDA, GOOG, and AMZN.

Simply go here for details – and see how it works.

The Artificial Intelligence trade has stalled in the last couple weeks.

Until recently everyone was focused on the amount of AI spending. Every big spending announcement sent stock price higher. The bigger the deals, the bigger the gains.

One day in September Oracle announced a $300b backlog order from OpenAI. That news sent ORCL shares up 36% in a single day.

Yet, there’s been a big reversal recently.

Investors are becoming concerned that there’s too much spending on AI data centers. And they’re questioning how long it will take for these companies to see a ROI.

That brings us to Nvidia’s earnings report today.

Nvidia CEO Jensen Huang has already said there’s $500 billion in demand for its Blackwell and Rubin chips. We can expect more details during tonight’s earnings call.

It’s really a Catch-22.

If Nvidia is too optimistic – it will reinforce the narrative that there is overspending by the big tech companies.

However, if Nvidia says demand is slowing – it could confirm that overspending has occurred. And it will stoke fears that data center boom is coming to an end.

Either way – it could be seen as bad news.

I’m expecting that Nvidia will beat expectations and share a bright outlook for next year. However, that may not be enough to reverse the pessimism that’s gone mainstream in the last two weeks.

My team is using predictive AI to determine where NVDA trades after earnings.

Here’s the link to get our AI trade prediction.

Ian Wyatt