NVIDIA Earnings Just Dropped -Closing Bell 08/26

Blue cloud trading through the night. >> Welcome back to the channel everyone. In just a second, I'm going to play a few CNBC clips from today's episode of the halftime report. I'm going to pull up the charts and dive into the technicals of some of the mentioned stocks. We're going to look at the key support, resistance levels, momentum, and see if the price action actually backs up what the talking heads are saying. Hit that like button. Subscribe if you haven't already and let's roll the tape on the first clip. >> And here we go. Welcome to closing bell. I'm Scott Wner live from Post 9 here at the New York Stock Exchange. This make break hour begins with what else? The countdown to Nvidia earnings. We've got it surrounded tonight. In just a moment, we'll be joined by our ACE reporter Christina Partinos, Dan Ives of Ives, Yorkville, Doug Clinton from Intelligent Alpha, Humilis Capitals, Brian Bellski, Nvidia Investors, Bin Talkington, and of Requisite Capital, Malcolm Ethridge from Capital Area Planning Group. I do want to first show you the scorecard with 60 to go in regulation. We are mostly red. The S&P and the NASDAQ though are trying to go green. Tech obviously a bit of a wait and see though some of the chip names are up today going in. Meta's green as it settles with state AGs in that case over child safety. Apple also positive. It now sets a September date for its next iPhone release. All of that takes us to our talk of the tape. All that is riding on what happens tonight. We begin there with Christina to set the scene. Hi >> Scott. There's three things really hanging over this stock. One, the fear that Amazon and Google building their own chips and are starting to cut Nvidia out. Two, the credit markets unease. Morgan Stanley said Nvidia Credit now trades more like a tripleB credit than the double A its balance sheet implies. As Nvidia really just takes on more of the financing, propping up its own customers. And then three, margins. Nvidia's gross margins climbed all through last year, then flattened. And analysts see it drifting lower as memory costs bite, which is what you can't see it as dramatically on the graph, but it's going down. Wall Street wants Nvidia to defend that mid70s line and signal it can hold it in the medium term. A lot of investors too are hoping for a bigger buyback, but not only UBS, others too doubt there's much new to say there since Nvidia just committed to returning half of its free cash flow this year. So the real tell is what Nvidia reveals about the commitments piling up off its balance sheet, the multi-year deals to lock in supply, power, and demand. put a number on it and the market can maybe finally price what's been a cloud over the stock just over the last three months or so. Scott, >> yeah, certainly has. Christina, thank you very much. Been down eight of the last nine days. It's a really good scene setter. As we bring in our panel, I'll begin with Dan Ies who's sitting right next to me. What's the biggest issue cuz Christina highlighted what appear to be several competition, the debt, right? The CDS, China margins, infrastructure spend. How do you deal with all those going in? >> Yeah. first I mean competition there's one chip in the world fueling the AI revolution and it's Nvidia and I think you know worries about competition I mean we see it from every enterprise that's going down the path the red phone goes to Nvidia and I don't think anyone's looking at any sort of second and third options even though down the road there's competition >> what do you mean these other the hyperscalers as Christina laid out they're making their own chips too >> but I think I continue to view that as three four five years down the road for now when we think about the first second phase of the AI revolution. It's only about Nvidia. Now, when it comes down to the debt, what we're seeing in the markets, just worries about credit, I think it just comes down to investors, tech investors are underestimating the scale and scope of the AI revolution, which is why it's so important in terms of as they show demand from Reuben Blackwell. Remember, this all excludes China. This is what all the tech sector is watching. >> Could we really be underestimating the demand like like this gentleman says? You agree with that? I do agree with Dan on this and if you think about what the hyperscalers have talked about in terms of how much gigawatt capacity they want to add next year in 27 the big four are talking about 20 gawatts of capacity to put that into context $50 billion per gawatt is the capex load for for these hyperscalers right so that's a trillion dollars in capex we also now also have uh Elon Musk talking about 10 gawatts that he wants to bring on that's another 500 billion and so if you kind of do the math about 60% % of that capex goes to chips. There could be upside to Nvidia's numbers next year, maybe 10% or more >> and physical AI. >> The question is why why has this stock gone nowhere even when it is its forward PE is just above 20 times? That's the lowest going into an earnings report in 5 years. What's the problem with the stock the company? I don't think anybody disputes what the company's doing, what they're going to deliver tonight, and what Jensen Wong's going to say about all of it. But where's the disconnect considering the last few years? What I'm about to say actually is quite weird. It's it's not Nvidia is not exciting. Nvidia is not exciting as what we've heard from Micron. That's the new kid on the block. That's where the momentum is. What I look at as a portfolio manager and running several portfolios is that Nvidia has been incredibly stable in terms of its consistency with respect to not only earnings, it's the epitome of the earnings driven market, but more importantly when you're running money, it's been very consistent in terms of what it waiting what its waiting was in the market December 31st to today. Very different across the spectrum that you're talking about chip stock. So, as a as an investor and you're looking at consistent fundamentals, it's it's it's weird to say that Nvidia is not the exciting stock anymore. >> How do they get it back? How how do they get that mojo back? >> Well, they're going to get it back to they're part of it is tonight they uh shot across the bottle in our view was the consortium with respect to with putting that together on the debt side. Very clear, consistent and how they were going to get the money that was lacking in what what Oracle was doing and that's part of why Oracle was in the penalty box. So, that was that was shot number one. Shot number two is going to be earnings. And then number three, Scott, is the is the focus on guidance for 2027. It's going to be really important. >> I'll tell you, Bin, I'm glad we have you because you appear to me to be, at least in this group, the most, if you even want to use the word, cautious on the near-term direction of the name, where you say 230 or soish is a ceiling. And that this report's not likely to do anything about that. Why? No. Yes. I mean 230 230ish is the ceiling. I mean the stock last year is up 15%. So, you know, with no context that's fine, but like with the earnings and revenue growth, you're not only going to see tonight, but we're going to continue to see this massive earnings and re revenue growth. It's like people aren't asking enough of the tough questions. So, back to I think it was Doug about the 20 plus gigawatts of next year. Well, where that falls on its face is that 60% of the data centers that are supposed to come online in 2027 haven't even broken ground. I'm in Texas and with what Abbott's doing, obviously the midterms, you're not getting a new data center lease anytime soon. And so there is this log jam and he needs the whole the whole group needs to walk through well you could have all this demand but if there's no data centers being built or not the capacity well then what happens there I think also this this $500 billion consortium just like we have with Iran is a memory of understanding and it's very vague and I think that the market is telling us we kind of question all this because you have to say as an investor well what could go wrong or what could take longer and to me with what 21 analysts 20 all bullish I think average price target is 331 I just always respect the market and this company's earnings crush it Jensen is like one in a billion but the market's saying just like enough and we have more questions that I don't think anyone's really answering yet to to have a catalyst tonight for this stock to actually go higher >> I mean you you might as well be Dan Ives the president of the NVIDIA fan club. I mean, h how do you respond to that? And by the way, that's not a bear. That's nobody somebody who's negative on the company. Brin's own own the name as long as as I can remember and is positive on it, but still can't escape what appears to be the obvious to people who question what the stock isn't doing. >> And there's two things. I think Bellski hit it. I mean are there shinier objects maybe in the near term that view micron all the memory plays and whatever but it comes down to like investors probably by 30 40% I think are underestimating the pure demand and scale cuz I just see it from an enterprise perspective you have less than 5% enterprises that have truly gone down the AI path and this doesn't even include physical AI and then there's only one godfather of AI and as Jensen shows it quarter by quarter I think we're going to continue to look back at this period and say investors were maybe going through the sort of gut check moment. They will prove it. We are in the third inning maybe bomb of the second inning of the AI revolution. I >> mean Malcolm, the shares have declined in each of the last four sessions following the earnings report. What kind of expectations do you hear? What are the biggest issues in your mind after hearing from everyone on the panel? >> Yeah, I think Bren is probably right. Nvidia's earnings report is probably going to do more for its competitors than it does for the company itself. The two exceptions that I see here, we got the rumors about the possibility that Nvidia is going to increase prices on its customers by about 15% to make up for their own uh demand shortage issues with uh memory and that could actually lead to some uh pull forward that we hear in the guidance for the next quarter and the quarter after that. So, it's very possible that the street could hear really strong guidance numbers above and beyond what we were already expecting. Uh, that would set the stock on fire. Also, we could hear Jensen Wong tell a story about how some of those early investments in spending money to help build up its next customer are starting to pay off and helping them become less dependent on Microsoft and Meta as their two primary customers at the moment, which does start to help relieve some of the concerns I heard initially about their competitors already having success building competing chips and sort of weaning themselves off of Nvidia. If we got either or both of those a strong case uh in that direction, both of those could be catalysts that send the stock beyond Bren's 230 target. But I do think that it's probable that the street responds with the yawn on Nvidia and sends up the shares of a lot of their other competitors. >> What about the idea that you you can be right in the near term? Uh and this was a very big orange that that we've we've had, but there's a lot of juice that's been squeezed out of it. And eventually you're going to squeeze everything you can get out of that. And the time frame for when that happens is unclear. Wall Street Journal today writes the following quote, "Ultimately, Nvidia and other AI chip makers are living on borrowed time. At some point, big spenders will reach a breaking point where their cash piles are smaller and they're unable or unwilling to raise more money from debt or equity investors. If AI turns out to be worth less than it costs, that is inevitable." How do you respond to that? I respond that you don't have full equilibrium from a chip perspective and demand probably till late 2028 2029 at the earliest and I think it's one where yeah there will be nervousness in terms of the spending cycle but this is going to go on we believe for the next four or five years we will go through these gut check moments and as Doug's talked about we are still early days as it plays out and as the execution plays out and I think when you think about physical AI and the future of what I you what the AI world is going to look like. We are it's 1955 and you're building the Vegas strip to where we are today. >> How do you how do you respond to to that right there that that there is some degree of inevitability to all of this and all of you are the ones who are left trying to game that out and figure out what the real timeline's going to be. I think it's true of any investment where if the consumer demand changes and you're building supply to meet demand and that changes, that's always a risk for anything that you might put money toward. As it pertains to AI at Intelligent Alpha, we do use and we rely on these models to do our investment analysis, our portfolio management. And I can tell you sort of from the front lines, the last couple of weeks, we have had inaccessibility to even use some of the models because they've been beyond capacity, more than we've ever seen since starting the company two years ago. And so the demand from a consumer and enterprise side is still very healthy for these models. And to Dan's point, I don't think that's going to slow down at all in 27. Probably not in 28. So we need to keep building into that. >> The the issue of the buyback, I think, is interesting. All of a sudden, we're talking about it more. >> Yeah. >> People are saying, well, they could do this. They could become an an Apple like company that has just a massive buyback, which has in some respects put a floor under the stock. Bank of America talks about it today. They say the balance sheet, not the beat. That's the real tell. A better commitment disclosure caps the perceived liability and a buyback pivot toward Apple style payouts is the underappreciated catalyst to rerate the stock trading at a depressed multiple. I mentioned to you going in we are at a forward PE of 20. That's the lowest going into earnings in some 5 years. You want a bigger buyback? >> No, we like it. We like when companies buy back and these guys can correct me if I'm wrong, but if you go back and look at semiconductors traditionally when they buy back stock, it's already over for them. Meaning in 1015 years ago when you had Intel and Texas Instruments in particular became dividend growth machines. Nvidia is not going to becoming that. I think more of a balanced side of things and what they're doing with their balance sheet provides a lot more credibility for their longerterm growth. And again, going back to the word that I used before, consistency. It's going to really help their overall operations. How about you? Do do you think a buyback is a bigger buyback is the answer? Do they need to become more Apple like in that regard? >> Well, Apple's not spending and not doing all of this ecosystem buildout like Jensen. So, I think it would go a lot to assuage investors of, hey, we're going to do a buyback. We see value in our shares. And I think Nvidia's never been like Intel. So, I I agree with Brian. A lot of times buybacks are are a peak, but I do think it's it signals stability. And so I mean I think that would be a great signal instead of doing this $500 billionous whatever that they're talking about. Buy back your shares and just do something straightforward that we can all get our arms around. Decrease your share count and and and just go a little bit down that glide path. I do think the market's just overwhelmed with all of these numbers. You can't ignore the circular financing whether it is or isn't. There's just too many unanswered questions. And I still go back to the power. It's like you can't create power without electricity and like that's not coming online. I just that is still such an unanswered question that everyone kind of not on the panel but the market just like whistles pass like it doesn't really matter. You can't just create electricity. And so that to me is going to be the next air pocket is when these these this intersection comes together of all this purchasing but there's no electricity to stand it up. That's the other issue and it's been mentioned it in some cases directly here but also around the the periphery of of this story the data center backlash and I'm wondering Malcolm how you see that whether you think that's been a direct weight on this stock and and whether it's going to continue to be that way for the foreseeable future at least until we get to and through the midterms. Uh, I do. And that's exactly why I'm not interested in owning Nvidia for a buyback. You want buybacks, go buy Apple. I'm more interested in seeing them take $50 billion of free cash flow. And instead of now investing in startups that will turn around and buy their chips, that game is played. I think they should innovate their way out of this rut that they have found themselves in for the last few quarters. I would love to see Jensen find the next parade and get out in front of it because the edge is really where the next phase of compute is. It's actually on the device itself. It's no longer in the the data centers and in the cloud. I've been saying for a while to the point that one of the folks on the panel was making what happens when all of a sudden demand starts to wayne because we've figured out a new solution because we were so comply uh supply constrained. We've seen it with China and DeepSeek already. So I think it is incumbent on Nvidia to figure out what is going to be the next wave of innovation that they can supply semiconductor design to whether it's autonomous driving whether it's robotics or something else and these are all places where Jensen already has his tentacles into and so I'd really rather just see them spend all of that cash pile that they have coming in quarter after quarter on building out those areas instead. Is this data center debate some degree of existential threat to this story at least in the near term? I didn't hear you mention that at all. >> I think look, I think the biggest risk to the AI revolution is the politicalization of it. As we get into midterms, data centers are the hearts and lungs of AI. So for every data center that doesn't get voted and you ultimately have to go to other states, whatever, that's something that constrains AI. Aren't we trending that way as we speak? >> To Brin's point, I think we still, if I look from a capacity perspective, even if 30% of them got voted down, we still don't have equilibrium till 2028, 2029. Now, the longer term story, if that becomes, especially in the midterms, that that's why this is a battle between big tech and the beltway. But big tech, they're they're really the ones that created a lot of this PR problem to begin with, given a lot of the sort of the negativity, taking away jobs and electricity. >> Are they doing enough to to turn the tide? I mean, and frankly, I don't know what it takes to to do that, >> save for, as I mentioned yesterday, Jensen Wong going on a, you know, a barntorming tour of the of America, singing the virtues of data centers. >> Yeah, I think they've started to change their tune. I think is it too little, too late? because of the political arguments you have but the reality is that for the first time in 30 years US is ahead of China when it comes to tech and we can't the politicalization of right I mean that continues to be a danger >> all right guys we got to leave it there we're going to see what happens in u a little more than a half an hour and then we'll talk about it certainly on the other side of that everybody thank you so much for being here and part of that conversation it's also a very big night for software earnings Salesforce crowdstrike octa they all are reporting as well Kate Rooney has more for us on that. Hi. >> Hey, Scott. Well, yeah, it's going to be a key test for enterprise software and cyber security as well tonight with some of these names starting with Salesforce. Investors are going to be looking for some accelerating growth in agent force revenue. Company has really been trying to ramp up its AI business, drive adoption there from customers. Analysts over at Morgan Stanley have been giving Mark Beni off some credit for the AI strategy, but say that Salesforce still has a bit more to prove on monetization. stock down about 20% on the year. S&P for context up roughly 11%. Worth mentioning as well, Scott, Salesforce has been rehiring some former OpenAI executives that had left to go over to the AI giants. So, we'll see if we get any color on that. Meanwhile, you got CrowdStrike as well reporting going into results off of record highs, still up about 60% on the year as fears over AI security have boosted the overall cyber uh sector. CrowdStrike has benefited from some of the growing customer interest in trying to merge security tools with AI readiness, seeing a boost in the overall sector. Investors are going to be watching for more momentum. The company did beat expectations last quarter. And then finally, Octa also in the cyber space reporting after the belt did beat estimates as well last quarter. Analysts are looking at that install base and then kind of where it sits, the seat it has in the AI security layers. They're looking for a bit more momentum, a little more color on how some of these AI tailwinds can help these games. >> All right, those those are important reports uh as well. And the software trades look better. So maybe that raises the stakes. Kate, thanks. That's Kate Rooney. >> The bells bringing an end to the trading day at the NYSC Innovative Industrial Properties and at the NASDAQ Scholastic marking the start of school bookf fair season. Welcome to Closing Bell Overtime live from Studio B at the NASDAQ market site. I'm Mike Sani. Melissa Lee is off today and it is Nvidia earnings day, the moment the markets have been waiting for. We expect those numbers out in about 19 minutes. We have a great panel to react and to break down the results, the guidance, and what it means for chips and tech and the rest of the market. Uh but that's not all. Several other big names reporting. Salesforce, Crowd Strike, Synopsis among them. And in just a few minutes after those earnings come out, we'll be hearing from Salesforce CEO Mark Beni off. Ahead of all that uh news, stocks remained in their holding pattern. The Dow down about 100 points. The S&P 500 just barely dipped into the red before the close. The Nasdaq and Nasdaq 100 also down just slightly. There were, as always, some individual stocks making some big moves. Let's get to Christina Parts Neville with those. Christina? >> Yeah, and that's exactly where we start. The consumer and where they're still spending. Abbercomy and Fid jumped after raising its fullear profit outlook. A roughly $100 million tariff refund did help. The namesake Amber Combi Abberi brand I should say did the heavy lifting offsetting softer sales at Hollister. American Eagle and Urban Outfitters rose in sympathy. Urban Outfitters earnings are coming out soon. You can see up 9% nine and a half. Footwear though was like kind of the soft spot yesterday. The read through from Digs warning on Foot Locker kept the pressure on Nike. today still hovering near its uh lowest level since 2014. Smucker spread this some cheer lifting its fullear outlook on higher coffee prices. I shouldn't be smiling because I have to pay those higher prices. The CEO told us on Squawkbox Tyra free funds will help invest in the business and help them also pay down debt. And now quick pivot to software because there's a lot of movers there where guidance specifically did a lot of the damage into it slid on a weak outlook and a Bank of America downgrade to neutral with Bank of America warning cheaper AI powered tax tools are just taking share from Turboax. A reminder though that just AI is still very disruptive uh price pressuring force force in parts of the software complex a big concern. And then lastly, Zoom fell about roughly 6% today, even after BEA's soft profit guidance really overshadowed its strongest enterprise growth in three years. Mike >> Christina, thank you. Well, sales Salesforce earnings are out. Kate Rooney has the numbers. Kate, >> hey Mike, it's looking like a beat on revenue for Salesforce and then slightly ahead as well on Q3 guidance. It was 11.34 billion in revenue for the quarter versus about 11.32 on the estimate. Bottom line, we've got an adjusted EPS number $5.95 $5.90. I should say that is the adjusted number. We're not going to compare this one. There is from what we're seeing a massive investment gain about $2.6 billion. It does appear to be from an investment in Anthropic. They don't say that specifically, but it has been propping up other big tech earnings that we've seen. It's a similar dynamic to what we saw with Microsoft, for example, and the company did raise a massive round in the quarter. So, a lot of these companies have needed to mark that up. It has helped boost earnings. Uh net income for Salesforce in the quarter 3.5 billion. Some key segment revenue came in better than expected as well. Subscription and support was in line, billions in line. And then I mentioned guidance that was ahead of expectations at least at the midpoint both on Q3 revenue and EPS. Fully year revenue guidance finally slightly higher at the midpoint of that range. And then the EPS guidance number for the full year. We're also not going to compare because of that hefty investment gain in Q2 as well. Well, it looks like stock is up more than 6% here after hours. Mike, back over to you. >> Yeah, absolutely. Takes it back uh several months uh till last time we were at these prices for Salesforce. Uh Kate, thank you very much. As we wait for Nvidia's results, what could the report mean for the overall market? So far, it's managed to rally without Nvidia. So, can it continue to do so? Joining me now is Paul Hickey from Bespoke Investment Group. Paul, good to see you. >> Hey, good to be here, Mike. As a matter of fact, you go back to uh Nvidia's last earnings report three months ago, Nvidia shares are down say 5%, S&P's up three and a half percent. What does it say about the stakes for for their numbers and part of the overall AI picture for the for the market? >> Well, it's funny. Uh it's the biggest stock in the market, so it's going to obviously have an impact just what it does on the market. And you mentioned on the market and AI, you didn't mention semiconductors. and semiconductors. It's the largest component of the semiconductor of the socks, but it's has zero correlation to the socks over the last 3 months. It's less than any other stock in the socks. And what's really interesting is I did something this morning. I bought a pack of Mara this morning. And that's because Altria has more of a correlation to the socks than Nvidia does. So in that respect, we're we we say what's good for Nvidia is going to be good for the socks. It's actually the opposite. We earlier in the year when the semis were doing great, Nvidia was underperforming. And now when they the semis have been doing poorly, Nvidia has been outperforming the semiis. So I I wouldn't put too much weight into it. It's a big market player and it's going to have an impact. But I I think the days of the, you know, hyper growth in in the stock price are behind it. There's so many people focusing on the stock that it's hard to surprise the market. I mean, you know, Nvidia along with Broadcom to a lesser degree over the last year have really just traded as these slower moving mature versions of what's going on in semis and obviously all the excitement is in memory and CPU makers, all the rest of it. Um, but it's also reflective of how the overall market has managed to just kind of absorb these areas of the market that had to correct right semis in the last couple of months. Um, you know, and rotate around and stay in this incredibly narrow band. >> It's, you know, you have the VIX. The VIX is uh some of it well below average for August. Uh the range for August is on pace to be the narrowest since 1994. So it's incredibly nothing at the index level, but there's lots of noise outside. We've seen Madna, biggest move of an S&P 500 stock ever. You saw Bitcoin hit its most overbought levels on record last week. So you've seen these big moves, but the rotation. And so whereas growth has lagged, uh you've seen value pick up the slack. The value index has just been making steadily new high after new high. and it hasn't even had a pullback of 2% since April. So you've seen this massive push pull between growth and value ever since co actually where you see this massive underperformance for value and then it snaps back. So I think right now we're in the one of these periods where value has its day. But again, we always come back to the fact that this is a an AI bull market and so eventually if this bull market's going to continue, you're going to want to see the AI stocks continue to um to lead. >> We do actually have more news also involves um Salesforce. Let's go back to Kate Rooney for that. Kate, >> hey Mike, just on the heels of earnings from Salesforce, we do have a headline here from Anthropic and Salesforce. This is about a deeper partnership between the AI giant and Salesforce. They're calling it Claude Force. It's bringing Claude, which is the chatbot from Anthropic, a lot deeper inside of Salesforce and Slack as well. They say here it's meant to help companies integrate Salesforce and their data. So Claude can pull some of the relevant data, generate the customer interface as well and agents in this announcement appear to be a big highlight. Talking a lot about AI agents and basically helping take actions on the behalf of customers. It does also look like Claude is becoming a bit more of an interface to Salesforce and Salesforce here at least according to this press release is becoming a bit more of a data layer. does look like an acknowledgement that some of these AI assistants are becoming in some ways more of a front door to enterprise software. Again though a partnership joint partnership here and Salesforce does want to own they say the secure plumbing behind all of this and also for anthropic I would say big distribution win for enterprise that's a key area that they've been going after after as well they are trying to get access to some of the systems that actually have the customer data sorry I'm going to mute that call in the background guys but big news it looks like you can see Salesforce reacting here you're up more than 10% >> yeah you do you got to keep the hoot and holler on at all times Kate Thank you very much. Yeah, Salesforce up now 11% extending the gains that it uh was registering right after the results came out. And coming up in just a few minutes here on Overtime, Jim Kramer will be talking to Dario Amade of Anthropic and Salesforce's Mark Beni off about that partnership. uh Paul reflective of the fact that every company that was I guess targeted as a potential you know victim uh of the AI revolution is going to want to you know obviously make itself into part of the solution uh aligning with anthropic here. One of the critiques of course is that Anthropic and OpenAI are ultimately the source of so much that's going on in semis and the buildout and everything else and they still have to raise the money you for a lot of the backlog of orders and everything but for now the market says you have to be in league with them. >> Yeah. No, and I think so they're the big customers but you come back to Nvidia and the the prospects for the stock. You have the you're in a situation where uh you're seeing competition. And everyone talks about the memory stock saying there's going to be increased supply down the road and and down the years in in in AI with the GPUs you're starting to see companies competing on inference whereas where Nvidia still has the um the lead on learning but the inference side you're starting to see competition there. So you're starting to to everyone said uh Nvidia had this moat that couldn't be conquered and on one side they still do it but on the other side we're seeing a lot more competition come in and that's just going to you know has the potential to keep margins in check which we'll see in 20 minutes. >> No exactly right. I think that's one of those things hovering over this whole story. Paul uh thanks very much. Talk to you again uh in just a bit. So what will Nvidia mean for the overall AI trade? Let's bring in Deep Water Asset Management managing partner Gene Munster. Uh, Gan, um, pretty much everybody acknowledges the numbers themselves are great. Guidance is probably going to be in line. The market's viewing this though, I guess, as some level of we got it or it's maturity. Uh, what's what's the next move or or potential turn in the story for Nvidia? >> Well, maybe I'll give the potential move in 20 minutes from now, Mike, is just to kind of set what the bar really is here is this is about navigating, predicting the slope of decelerating growth rates. Actually, the size of Nvidia. We also often talk about the law big numbers. It's actually smaller than Google than size of Nvidia's business. But this quarter if you look at uh what the the bar is it's uh for 92.5 billion call it. But last quarter this is in the topic of navigating those decelerating growth rates. Last quarter in April if you adjust for China basically take China out because that ended in April of 25 it would have grown 107%. So the magic number tonight if they hit 96.8 8 billion. Again, the streets at 92. So that's 5% upside. If they hit 96.8 billion, and you adjust out for April, that would imply a similar growth rate, 107% as we saw in April, that would be a huge win. So I don't think we're going to get there, but I just want to flag that number. The guidance, they're going to give a guidance, they're going to give a plus or minus 2%. The magic number for that is for a similar guide up that we saw 3 months ago, and that would put us just above 109 billion. Now the streets at 104. So I just want to kind of start there because your question about what does it say about the market, it starts with what the reaction is going to be to these numbers. And I think those are the two most important numbers kind of going into this. As far as the bigger picture, I think that the you know the setup that that CNBC has done here is has really fleshed out most of this. I would just add that the piece the dynamic around what's happening with hyperscalers and the non-hyperscalers that handoff that's really the narrative that's developing here. If we look at uh what the growth rates are going to be next year, hyperscalers are expected that business to grow 41% and the non-hyperscalers about 60. So that's going to be a flip-flop from what we saw on calendar 26. That's the other piece. We're going to get that breakdown when the 10 Q comes out, which is probably going to be about 15 minutes after earnings. So those are the kind of the key things I'm going to be focusing in on. Mike, >> that's right. Yeah, the company has started to to break that out. Uh two separate uh categories of customer. So, Gan, the first two and a half years of the whole, you know, AI uh monster theme here after chat GPT, it was such a simple story for Nvidia. It was all the hyperscalers are handing what would be their free cash flow to Nvidia. Literally half of that falls to the bottom line of Nvidia at in as net income. The market was happy to put it like a 30 times multiple on Nvidia's earnings. All of a sudden, that was net additive to the overall market. Now, you have compression in the valuation of Nvidia. uh it looks a whole lot like Apple did after the iPhone profit bonanza in 0708 and something had to happen to convince the market that there was a next phase and I guess if you're an investor saying if I'm worried about margins and market share for Nvidia isn't it more likely they go down than up over time and is that okay? >> Well, I think from margins and market share I I think the margins probably are going to go down. uh they've talked about this 75% number which has been kind of consistent but I think the bigger picture here is this is ultimately this conversation comes down to a leap of faith that and we're going to see two groups of investors and this comes to margins and my comment is I think margins come down by a little maybe a percent over the next year two years but I don't think they come down by much and ultimately the question is is like how early are we this is a similar theme but if you believe and I'm in this camp that we're in probably a third of the way through of the buildout and and not even at the first pitch when it comes to the development or the deployment of AI. I think what we're going to see is that the the sustainability of Nvidia's business is going to be much better. The street right for next year is at 44% growth. I suspect that number is probably better than 60. Now whether they get uh credit for that is a is a question. But to answer your qu the bigger picture question is we're still very early. Nvidia is going to be a clear beneficiary. I don't know if the stock is going to reward investors. We sold the stock a few months ago because we knew things were great, but we just didn't know if that would yield necessarily outperformance. >> And then the other thing obviously and and whe whatever you believe about all of the equity stakes and the financing deals that Nvidia is doing uh to sort of kind of foster the growth of this whole ecosystem, it does add complexity, right? It does create claims on the balance sheet and yeah I guess the question will be is uh whether we can get comfort with that and if if the company can can kind of delineate exactly why it all fits together >> that the whole I mean all these questions come back to how disruptive do you think AI is going to be? If you think it's going to be as disruptive as the expectations are then this off sheet b off balance sheet financing is a risk. If you think it will be more material, if the impact is going to be greater, I know these are soft conversations, soft kind of uh themes here, but ultimately if you think it's more than the market, then it doesn't matter. It doesn't matter where the money is coming from. What matters is the brain of AI is getting substantially bigger. I mean, these 20 gawatts of data centers are expected to come online next year. I mean, just to put it into perspective at the magnitude of these, one of those data centers will add almost a half a percent to the overall strain on the US grid. one of those data centers >> video numbers Christina >> so it's a beat on the top and bottom line $222 adjusted was anticipating 210 on revenues of 96.2 two billion, but you can see shares are dropping uh roughly 2%. Could be because of two reasons. First, the Q3 revenue guidance coming in at 108 billion, which is higher than what the street anticipated, but lower than what the buy side numbers were around $ 109 billion. This revenue guide again does not include anything from China despite all the back and forth headlines for data center revenue. In the quarter that just passed in Q2, data center revenue came in at $89 billion, slightly higher than the 86 the street anticipated. And then a growing concern was gross margins for the quarter. Gross margins came in at 75% exactly in line with what the street wanted, but it's the Q3 gross margin guide that is light at 74%. Uh again, we know that they had promised mid70s and that there was going to be some tapering off because of memory costs. And so now we're starting to see that right now. So only slightly lower than what the street anticipated. Uh and I'll come back to you with a few more numbers Mike. >> Yeah. So Christ, just summing up what you gave us there. So uh for the quarter that just reported re revenues 4 billion uh dollar beat the uh third quarter guidance for revenue also up four billion relative to uh forecast. But it looks like that gross margin anticipated for the third quarter, you're saying 74%. The street was at 74.7%. And Mike, you were just talking with Gene that was expecting at least a $5 billion beat for the guide and so we're seeing only four billion. So perhaps that's adding to it. We're not seeing a major sell off because these are incredibly high numbers and we got to break it down further in terms of like is it the hyperscalers or the AI uh cloud industrial etc. But overall you're seeing uh just a little bit of a drop because of those two numbers. >> Yeah, just off uh 1%. Obviously the stock had had backed off a little bit into the number. We'll see what happens over the call. It always or often uh changes. >> Yeah. So one of the things that Nvidia has been doing is that they split their revenue hyperscalers and everyone else because they want to show that they are diverting away from the hyperscalers not as reliant uh specifically for the hyperscalers group it did actually more than double. So there's still a lot of strength there. Another part that really stood out uh to us right now is that they've partnered and this is a quote from the CFO commentary. They partnered with extensive network of suppliers to secure the critical components needed to meet demand for the next several quarters. Our commitments increased from 119 billion last quarter to 279 billion right now primarily related to the procurement of memory. This is a strength of Nvidia. If you you argue, okay, OpenAI is coming out as a jalapeno pepper and all these other chips are coming out great. You can build these chips, but can you actually procure all of the components that go in it? Nvidia is showing its dominance. It's TSMC's number one customer outpacing Apple. In this case, it's showing that it's procured all the memory out there when everybody's complaining about how expensive and uh how difficult it is to get. So this is an opportunity for them. Didn't really move the stock that much, but it is something that stands out. Hypers scale revenue again. So switching to that up 100% uh year-over-year. AI cloud industrial enterprise that other bucket up 138% year-over-year. So that's that growth is outpacing it. So I just hit two points right there. The revenue breakdown strong. um you know X hyperscalers growing faster and then the uh procurement they're getting all their supplies and components uh you know doubling it from just last quarter. >> Got it. Yeah. I mean that's that's supposed to be the next phase of the story, right? All right Christina, thank you. Let's bring back Deepwater Asset Management managing partner Gene Monster along with benchmark company semiconductor analyst Cody Aree. Cody, um I mean most of the boxes got checked off. Maybe the street had bigger eyes for for some of these guidance items. What's your first read on the numbers? >> Yeah, Mike, I think you're right. I think it's just a matter of heightened expectations. I mean, everybody knew that Nvidia was going to come in and blow away numbers. Uh it's just a matter of the magnitude. I think $4 billion beat and raise uh should have been enough uh to keep even the most uh optimistic investors happy. Uh but the stocks off a little bit after hours like at about a point and a half. Um and so it just is a matter of heightened expectations. uh the gross margin is a little bit concerning uh the the deflating gross margin by 100 basis points sequentially into the October quarter. Uh but what is encouraging is hyperscaler growth and non-hyperscaler growth. Uh as you mentioned earlier the non-hyperscaler up faster than hyperscaler up 138% versus hyperscaler uh you know up 100%. And so uh they are showing the diversification across the customer base which is key. Uh if we happen to see uh any risk in Nvidia's model it would be customer concentration. uh but they're showing that that's uh manageable and then uh they've got to make sure they can continue to uh keep the supply chain fed and they're doing that with these partner commitments. >> Uh Jean um you know you had set out some uh some benchmarks there in terms of where guidance should get to to show that there wasn't much deceleration. We came up a little short of that. >> Yeah, we did. And the reported number we were really close on that uh that 96.8 8 that kind of number it basically comes out to 105 106% year-over-year growth that's versus 107%. I still think that's a win. It didn't hit that magic uh similar growth rates quarteron quarter adjusting for China but it is I think that is a win as far as the guidance you know that was 3% upside last quarter they guided 4.4% upside. So that magic number of 109 we did miss that. The stock initi that initial trade-off was related to the gross margins. That one surprised me. Uh I was expecting more of a gradual decline over the next year. Not seeing that step down in the October quarter. But uh at the end of the day, we're splitting hairs here. I mean, this is we have the the the metrics they miss fractionally. That's what we do. But I mean, the the aggregate of this this story is still very much intact. They're beating at a similar rate that they have over the past year. They're raising at a similar rate despite higher and higher numbers. And you have some of these big drivers still. Let's just look at SpaceX for example. They want to do eight gawatt hours next year with the data center. I mean, just that alone, just SpaceX alone can become a 3% customer last year to a 10%. That will take the hyperscaler growth rate from the streets looking for 38% next year to the low 60%. There's still some meaningful drivers. So, Mike, I think that yes, we didn't check all the boxes perfectly, but the kind of the story is very much intact. >> So, so Cody, I look at, you know, the kind of the setup here. Obviously investors the buy side has a little bit of skepticism or they haven't felt motivated to really rush and and urgently pay up for Nvidia shares for a little while now. Uh on the sell side out of 67 analysts have buy ratings. The consensus price target is for a 50% gain from here. The consensus price target implies a 7.5 trillion valuation for Nvidia. So there's enough optimism as people who are looking at projecting the fundamentals. What do you think clients need to understand if in fact this stock is going to get unlocked to the upside? >> Well, I think you've just got to factor in the continued growth of the name and I think the stock will eventually follow uh when you've got this kind of of growth rate even on the hundred billion dollars of revenue uh continuing to double their hyperscaler and their customer base uh year-over-year. And as Jean mentioned, uh there continues to be a lot of new opportunities out there uh in the future. And so I think if you put up the numbers, the stock will eventually follow. Uh, but uh I think the prudent investor going into this call, Nvidia has been off uh for the last four quarters uh more than 5% after the the print. And so the uh the expectations have been uh that this would be a repeat of that and and unfortunately I think the the gross margins are giving uh the skeptical investor reasons to uh continue to pause. Uh but I think uh to Jean's point uh the strength of the revenue uh numbers and the uh the drop through to earnings is is almost in all year we'll hear. And Jean, u just a a final note, the the margin uh pressure that they're that they're handicapping here. I mean, do we assume it's memory cost? We think other things are involved. >> It's memory cost. We also need to look at what they're going to say about the pricing of Reuben. There's rumors that they're going to raise that at the beginning of calendar 27 by 15%, an additional uh price raise. So, they may talk. I mean, this all comes down to the call, Mike, like this might be kind of a one quarter blip here and we kind of gravitate back. Either way, we're going to be in that 74 to 75% range probably for the next year. >> All right. Uh, most companies would take it. Uh, Jean, uh, Cody, thanks so much. Really appreciate you. >> Hello and welcome to the segment of the video where we will analyze a lot of the stocks and ETFs that were discussed on the shows today and the clips from CNBC. Um, it is currently 706 p.m., folks. 7:06. It's Wednesday, August 26th. markets uh after hours are looking pretty bullish. I know they didn't end well, right? We saw how the S&P 500 was down 02, NASDAQ was down 08, Dow was down 21, Russell 2000 was down, but that's because they were waiting for Nvidia to come out with earnings. This is the aftermarket performance, by the way. So, let's um let me show you guys with a heat map very quickly. I want to see what how Nvidia is doing after hours. Now, this is where it closed at the end of the day. Okay, but we're going to press a a different button here. Aftermarket performance. Bam. Let's go. Come on. It's working, folks. It's It's thinking. It's thinking very very hard, very deeply. It's trying to find out the information right now. There we go. I've got a bad internet reception where I currently am. I'm not at my typical location. So, uh, Nvidia, as you can see here, is up 4.07%. 07% after hours right now and um that's very bullish. I mean all the technology stocks here you can see the computer hardware the semiconductor equipment and materials uh software applications like CRM look at that Salesforce up 12.63%. We're going to look at the technicals on all these um the stocks that they discussed. So let's um there might be a couple that I I miss but uh we're going to we're going to cover a bunch. So let me show you guys what's going on. Here's the S&P 500. Now, as I mentioned earlier, the market closed down, but right now, what we've got going on is the post market. So, these percentages are still moving, okay? And so, the S&P 500, um, I'm just going to show you what I mean by that. If I click on a button at the top here, this is where it was up just, you know, 02%. Okay? But right now, post market, it is up 57%. Here's a threeinut chart and this is what's going on after hours. This is the four. Here we were at 4 p.m. and this is what's happening. So, it's pretty exciting. I think we're going to have a very bullish day tomorrow in the markets. Um, looking at the QQQ. All right. As well, if we switch it to a daily chart, uh, we'll notice that the price broke through the Ichimoku cloud. It also got above the Tenken. That's very bullish. We also created what's called a bullish engulfing pattern. That's when you have a large bullish candle that engulfs the prior small candle. So, that is very bullish. And if we look at the weekly chart, we're still above the 9 period, the 26 period uh moving averages and the Ichimoku cloud, which is all bullish um information right there. Here's the Dow Jones also on the weekly chart looking very strong. Here it is on the daily chart up 0.25% now after hours. Again, here's a threeinut chart. Oops. Like I said, it's a little bit delayed here as far as getting the the uh the charts to pop up. There we go. Okay. So, you can see what's happening here after hours. A lot of volatility, a lot of uh interest. Okay. And let's take a look at FEZ, the Euro stocks 50. It actually broke back above the 9 period. So, it got a blue flag. So all the uh ticker symbols that have a blue flag here on the left hand side, what that represents is that they're basically bullish as far as this indicator is concerned, the Ichimoku. And in order for that to uh to basically show what we're looking for is price has to be above the green line, the 9 period, above the 26 period, the red line, above the Ichimoku cloud. Okay? And we want that lagging line there, the chica span to be above the candle 26 periods ago as it is right there. So that's all bullish. Uh I like FEZ and it looks great here on the weekly chart as well. It's still holding up above that 7052 level. What about gold? And we will get into those uh stocks guys in just a few moments. We're going to look at Nvidia, uh Crowd Strike, all that. But I just want to show you guys how the indices are looking in some of the other important uh areas like gold, for example, which was down 1.2%. 2%. This is the weekly chart. It's kind of stalling right there at the 26th period in the top of the cloud. On the daily chart, you know, it's uh still holding up nicely. It's been in a very bullish uh place because price broke through the 200 day right here about what day was that? That was um Wednesday, August 19th, and it's been moving up and just pulled back slightly here. Okay. But the cloud is bullish. I think it's uh still um you know looking very bullish for uh gold going into um next week and this and tomorrow. Uh Russell 2000. All right. So the Russell 2000 on the daily chart as you can see it's still under the 9 period which is interesting. It's still consolidating. So as the technology stocks are doing really well, these uh you know the smaller and midsize company stocks Russell 2000 are not participating as much right after hours it's only up.12%. Silver down 4%. Uh on the daily chart it's still inside the cloud. On the weekly chart cloud I'm sorry on the weekly chart it's under the cloud but has been moving up these last three four weeks. Now, oil K, which is the K1 free crude oil strategy ETF, uh was up is up uh 73%. This is the weekly chart right now that you're looking at. So, technically, we don't have all the elements in the correct order. We get the 9 period under the 26. So, that's not that's a negative crossover, but price is um has been looking more bullish. Let's look at the daily chart. Yeah, I mean it's it appears to me as though it's kind of stalled here and has created almost like a double top uh situation the top here, but we still have a higher low. All right, we're still above that 200 that's rising. We're still holding up above the 26 period and I think it, you know, the fact that it was up 7, it's currently up 73% is uh is looking pretty good here. So, let's look at uh Bitcoin. IBIT is the ETF down.31%. Here's the daily chart and let's look at the weekly chart. So, Bitcoin stalling a little bit after that big move the prior week. You can see here we're developing a uh spinning red spinning top towards the end of the week. So, let's see if this too will get some steam tomorrow. Well, we'll find out. Ethereum is looking pretty bullish, up 1.62% right now. So that's not too shabby. And I like uh you know the weekly chart it's also creating a a similar uh reversal type candle though this level that you see 24.88 goes all the way back. Oh okay. It goes right back to this right here. See that gap? Okay. They call that a window gap right there. And so that becomes a very strong level of resistance that it needs to break through. when it gets close to that area, a lot of times it may pull back and then try to muster up some more u positive bullishness so it can push through more buyers. I do like what I'm seeing here with the directional movement index with Ethereum. You can see here the ADX is moving up. Positive DI9 is above the negative DI9. The VIX uh is down.39%. I'm sorry. Yeah, down.39%. Here's a daily chart. It's at a level of 1521 which is very again conducive to a bullish market. Let's take a look. And we by the way we'll also take a look at some of our members requests down here in the bottom afterwards. But let's start off with the top four that are looking bullish on both the weekly and the daily. Let's look at ANF Abberi and Fitch 35.79%. Okay, after the earnings report it popped. So, here's a daily chart. This is what it looked like uh at the close. Just change it here. Whoops. So, it was at up 35.63. Uh it's only up 35.79% after hours. So, it hasn't really moved that much. It was a threeminut chart. You can see uh how that moved. Uh let's see here. Yeah, this is the after hours part from 4 PM. It's been moving sideways. Not a big deal. All right, let's go. Let's take a look at the next one. Crowd Strike, which was also up 12.09%. So, this one came out with earnings after hours. So, here's the regular. This is where it was at inside the Ichimoku cloud. And you can see what happens after an earnings announcement. Um, it it can it can pop significantly. Bam. Just like that. Up 12.09. Here's a three-minute chart. So, it's made its move. Now, it's kind of slowing down a little bit. Uh, as I said earlier, we're now at 7:15 p.m. is where we're at currently. Let's take a look at Nvidia, which also had a big jump. Okay, so here was the here's the daily chart post market. This is where it was at prior prior to the earnings announcement. It was under this trend line these last three days. So, right, August 26th. Bam. Here we go. Let's hit it. And you can see up 2.43 now. Still moving. Um, and here's the 3minut chart stabilizing. So, I think that obviously there's going to be a lot more buying tomorrow. Um, looks like the street is taking the the news in a positive way. Uh, Urban Outfitters. Let's look at this on the daily chart. So, let's look at what it looked like um at 4 p.m. This was the closing price right here at 9. It was up 9.46%. This is what it looked like. And this is what it looks like post market up 5.96. So, yeah, it's interesting that it dropped a little bit. Here's a 3minut chart. You can see what's going on here. Big drop after hours, but then it stabilized a little bit. So, I don't know. Uh, tomorrow is going to be we're going to need to see more information because there's a lot of indecision right here after hours. Apple. Oh, boy. That doesn't look so great here. Uh, here's the daily chart. So, this is post market and this is what Yeah, it was only up slightly and post market it's up just 6%. It's inside the cloud. Not a stock that I would be adding to the to my portfolio. You can see here that it does not have a blue flag. If you look at the weekly chart, overall it looks pretty bullish. Um, it's still, let me just double check. It's still under the 9 period slightly on the weekly chart. AEO, American Eagle Outfitters, okay, was also up 5.28%. So, this is the weekly chart. It's above the 200 day. It's under the cloud. So, I wouldn't be interested in this particular stock myself. It did break above the cloud on the daily chart. We might see a continuation, but there's still a lot of uh resistance like the 200 day right above. You got CRM, the Salesforce Salesforce um ticker symbol CRM up 12.57%. This is what happened after the earnings results. Let's look at the what it looked like at the at the close. So, it was it closed at 20562. It was still looking quite bullish here, right? And then boom, up 12.57%. And here's the weekly chart. It's still under the 200 and inside the cloud. Therefore, it does not get a blue flag, but I think that it too has a lot of uh possibilities here in the next week or two to break through that cloud and then continue to the upside. I like what I'm seeing with the directional movement index. DKS, Dix Sporting Goods, bam, dropped quite a bit this week. Um, this is the daily chart. You can see the big gap happened here um after hours on um between Monday and Tuesday. And then here we are on Wednesday. Now, we've got ourselves a piercing line pattern. A piercing line pattern, which is bullish. Price gaps down. price moves up and closes within the body of the candle. So, piercing line pattern is a bullish pattern, but would I be adding positions here? No, it's it's very bearish. It's very bearish. Um, I'll show you guys real quick what that looks like. If we go to the my my channel here on uh I'm sorry, x.com right at boomcloud trader, scroll down a little bit and you'll find the candle pattern reference sheet which is which shows some of those patterns I was just mentioning earlier like the bullish engulfing where is it bullish um right here bullish engulfing pattern bullish bearish engulfing pattern. Uh, if we switch it over here to the right, let me go back for a second. Sorry, my bad. Um, oh yeah, piercing line. So, we want to go back to that. Let me see. The piano pattern that we're looking for is right here. Let me throw an arrow on it. Right there. Okay. So, big red candle. Price gaps down. price moves up a nice bullish candle and it closes within the body of the prior candle. That's what we have here. So, for those of you who are, you know, interested in u trading this on a shorter time frame, I would probably look at a 30 minute on this. Maybe it has some potential because we see a crossover that took place here. The tenkinson cross above the 26 period and uh if we switch it to maybe I don't know, maybe even a three minute. Yeah, there's just not enough data there. Not something I personally be trading. Uh into it. Okay, this one too on the daily chart down 2.53%. Let's see. Did it did it close 34843? It's under the 9 period right now. On the weekly chart, we're under the cloud. Still not something I'd be interested in. Meta platforms still under the cloud on the weekly. On the daily, same thing. So, no on Meta, Nike still. Look at this decline, guys. This is why it's really important to use technicals. Stay out of stocks that are onto the cloud at a minimum. Stay out of those stocks because they can last, these declines can last a long time. Uh Nike has been declining for a while now. If we switch it to a weekly chart, that's all you need to the story speaks for itself. Once it broke under the moving averages, broke under the cloud from this point all the way down here. That's we're talking about a 71.9% drop in four and a half years. Your your money can get tied up for a very very long time. And even though price broke briefly over here above the cloud, you see that little those few candles right there in 2024. Look where look at that resistance that was sitting and waiting for it that 200 day. That's why we got that overlaid here, the 200 day moving average. price needs to be above it, generally speaking, for price to continue to the upside. Um, and so I would stay clear of Nike and Zoom. What about Zoom? Well, this this looks a little bit more bullish. We've got a series of higher highs, higher lows. We're above the cloud, but uh price is under the nine period currently on the weekly. Look at the daily chart. You can see the turn that pull back here, right? So, uh it's a messy looking chart. not something I would be interested in. Uh let's take a look at some of our members requests. We got CDE, which is uh Koyer Mining. Okay, gold stock up 23% today. On the daily chart, this is a perfect chart because we've got price above the moving averages, price is above the 200, we got a higher high here from the prior high. Okay. Uh we've got what appears to be somewhat like a almost like a double bottom right there. If you can see that right those see how price moved up dropped to that same level and then continue to the upside breaking above that high. So that's also bullish. Um the problem with this particular stock is when you switch it to a higher time frame though on the weekly chart the the future cloud if you if you zoom out really important to zoom out. Sometimes you might think that the cloud is bullish if you're zoomed in like this, but you got to zoom out to see the end of the cloud and seno span A is currently under SOS span B. All right. And Tenkinson is under keyen. The nine period is under the 26. That's faster moving averages under the slower. So no on CDE for the time being. Uh unless you're trading this on the daily, purely on the daily time frame. And you can also use a shorter time frame like a 2 hour as well. You see how the 2-hour can also complement the daily. All right. Usually it's a good idea to use two time frames in my opinion. Have that higher time frame and the shorter time frame for more, you know, um accuracy as far as entering and exiting the positions. AGI, let's look at this is also looking pretty good here on the on the 2hour, but let's switch it to a daily. You'll notice that price broke above the cloud recently. The cloud has turned bullish recently. But look what happened. Remember what I said earlier just a few minutes ago. Um price has to break above that 200. Was unsuccessful once, twice, three times, right? It's still under. Now it's building what's called a base here. And so there is a higher probability that it's going to continue to the upside here and break through that 3956 level. It's I mean we're talking about a level that goes back to this date here, June uh 17th. Okay. Uh so that's what I'd be waiting for is to see if it can break through that level on the daily. But remember, always important to double check your weekly chart. On the weekly chart, we're still under the cloud. So there are better options out there. And this one is still in a series of lower highs and lower lows, right? Uh although it did break through a trend line. So if you take that high and that high, we draw it across right there. It did break above it briefly here. So, but we still have, like I said, lower low from the prior low. A lower high here from the prior high. Okay, that's not that's not good. Uh CGU down 5.3% today. On the weekly chart, it's still under the cloud. Okay, so this is the gold miners 3x leverage ETN. not something you want to trade on a daily time frame. This is definitely something more uh day tradable. So daily time frame, you want to use a daily and then maybe a shorter time frame. You could use a three minute. Okay, you use a five minute to try to trade this and use the same basically uh rules of Ichimoku to help with guide you. Okay, give you a little bit more or maybe even a 2hour time frame. I mean, look at this 2 hour. On the 2-hour, you can see how it broke through the cloud right here. Let me just zoom in. You see that little candle? And if I if I just I mean, just from that point to this point right here, it's up 132% in 23 days. But that's because it's a three times leveraged ETN. All right? And just as quickly as it moves up, it can just as quickly drop down. So, you have to really monitor that closely. I would even say use a 30 minute chart. Okay? So there's the 30 minute and um although it will show you you know sometimes uh break under the cloud and bring give you more signals a lot more signals. Okay so you have to keep that in mind too. The 2hour time frame uh we had a couple of breaks under the 26 here. All right so guys uh that's going to do it for this video. We're going to keep it short today. Wanted to let you guys know that we recently reached over 500 videos. 503 videos on this channel. Pretty wild. We're at 32,400 subscribers. Let's reach 33. Help me get to the next level. Uh, hit that like button, hit the subscribe button, and join if you want to get access to the members only videos here, okay? There's a lot of them, folks. Uh, every weekend I go over my portfolio. I also share new stock ideas. And so click the join button and select blue cloud trader. If you want to watch those videos, you do need to select this level. Uh blue cloud legend level is for those of you who want uh daily updates on the trades that I place. Uh you will find those under posts. What you would need to do is click on once you become a member, click on posts and you'll find and basically as a member, you'll be able to see those. Um all right, and thanks for watching. Thanks for supporting the channel. I appreciate all of you guys. Hope you're all having a great summer. I will catch you all in the next video. The ichimoku guiding light. Blue cloud traing through the night. Heat. Heat.