Why Nvidia’s Q3 earnings could be a ‘catch-22’ for the chip giant

00:00 Julie

We don’t know how what kind of catalyst it’s going to be and that’s Nvidia, Dan. So, you know, we’ve been talking about what to look for there. What what are you hearing?

00:08 Dan

Yeah, Julie, it’s it’s kind of a, you know, Gene Munster over at Deep Water Asset Management said that this could be just a Catch-22 for Nvidia, where if they beat and raise, then the conversation of the, you know, over spending, uh or, you know, I guess over investing in the AI space continues on its path. If they don’t beat and raise, well, then it shows that the AI trend is starting to sputter out or hitting, you know, a a speed bump.

00:36 Dan

And so, it really could be a a Catch-22 situation as he says. Uh, you know, for the quarter, we’re expecting earnings per share of $1.25, that would be up from 81 cents. We’re expecting uh revenue of 55 uh billion, that would be up from 35 billion. So 54, 55% and 57% uh increases year-over-year in both of those categories.

00:54 Dan

But, you know, this morning, obviously, you know, you pointed out, Peter Thiel’s fund had sold off all of their holdings in Nvidia. We had seen Softbank sell off all of their holdings in Nvidia, though, that’s partially to fund their huge AI effort. Uh Michael Bury, uh who obviously, you know, called the housing crisis essentially, uh in 2008.

01:14 Dan

He said that some AI companies, the the Metas, the Oracles are basically propping up their own earnings…