Why NVIDIA Stock Could Break Out This Week

research at DA Davidson. So, Gil, you probably just heard the macro view from Venkat, sort of about how much Nvidia matters. What are you expecting from Nvidia tonight? >> They will indeed nearly double their revenue, double their earnings and more, and guide well. So, that's that's the good news. The The not as good news is they've been doing very impressively over the last few quarters, and it hasn't necessarily shown up in the stock. The difference this time is is the stock's actually been fairly weak heading into earnings, which allow which gives it a little bit more head space today as they report. As for the read-through for the rest of the data center build-out, it should be very positive. We have heard from Microsoft, Amazon, Google, Meta, etc., that they intend to spend a lot more. If they spend a lot more, a lot of that is going to Nvidia and its GPUs, but it would also go to CPUs and memories, and the data center build-out, which have been driving the whole growth of the economy. So, I would expect to good news overall. The reaction is harder to read because of nailing down exactly where expectations are and how much upside they choose to report. >> Yeah, I mean, I would imagine I said this last time on Fast Money, Gil, that I thought like maybe the the highest pressure job in in in finance right now is probably being the CFO of Nvidia cuz you you like your numbers have to be really good, but you don't want them so good that you can't ever replicate those numbers. How How How do they thread the needle like that? Because I think the market needs a needle to be threaded in some ways. >> I I don't think that Colette thinks that way. I think she's more focused on making sure that the investment inside the business is working, the investment in the ecosystem is working. If they double their earnings, and they grow earnings 40% next year, which is what we're expecting them to do, the stock will take care of itself. In the meantime, she has $60 billion of cash right now. She's going to generate $200 billion over the next 12 months. She can do all of the above. She can buy back stock. She can pay a bigger dividend and they can continue to invest in their ecosystem which has worked. The investments in open AI and the neo clouds and the optical companies, all these things have expanded ecosystem, have helped create more demand and therefore they can sell more chips. So, yes, her seat is hot, but I think she's doing a pretty good job. >> Yeah, it is she is. I will say this. Listen, the stock's had a good year. It's up 12%. A good year, not a great year. Is Nvidia the best one of the best names in your universe, Gil, or is it companies that you cover that are sort of Nvidia adjacent? Are they better deals even though Nvidia is at what, 19, 20 times earnings? >> Yeah, Nvidia on our numbers is just 17 times next year's earnings. >> you're even That's like a value stock, Gil. >> It is because their earnings growth are not going to slow down. This valuation means that the market is saying that Nvidia is peaking. It is not peaking. We know that there's going to be at least one more year of higher data center expenditure. But there are, to your point, other places that are even more attractive. We think Micron in memory is implying that they are not only at a peak, but they're on the verge of a collapse, which again is clearly not the case. We are going to continue to build data centers. Maybe not in every municipality, but in the municipalities that allow it and that therefore we're going to need a lot more memory and Micron is trading at six or seven times earnings. So, if