Joe TerranovaNVIDIA CorporationNVDACOMMENTAug 26, 2026

He will watch to see if the monetizing of this $1.5 trillion infrastructure will happen. It's still early innings.  Some say this is like Cisco in 2000, but NVDA is a high value-added product. NVDA will maintain and increase pricing power. NVDA is the centre of the AI trade.

There's little chance their earnings will disappoint. There's a 75% chance they will meet expectations and talk about a good Q3. They could talk about their next-generation chip, too. All this could lift the stock after being sideways. A dividend won't move the needle and it's premature. From October 2022 to October 2025, NVDA rose 1,700%, but much slower in the past year. But this could be a base to accelerate again; it's trading at its 100-day moving average. 

He'll watch what they say about memory costs and the impact on margins, and comments on their financing deal as well as comments on non-GPU products. These comments could shake things up positively.

Their earnings in recent years have been spectacular, but the stock price is waiting for earnings to catch up. 60-70x PE is unsustainable. The stock has been flat in recent months, but the PE has been declining. Its forward PE is in the low-20s. Is concerned that a lot of their business in concentrated in hyperscalers like Meta and Microsoft; if they reduce their capex spend, it will impact NVDA's profits. 

Expectations aren't sky-high. He's looking at this circular financing, and seeing if Nvidia is willing to share what this really means. While revenues are growing massively, it's not clear whether there's a huge profit yet in terms of this buildout.

The report next week is expected to be good, including $92 billion expected revenue or a 97% increase over the year. Insane. And it sells a near-market PE.

It's become the central bank of AI, funding a lot of startups and making agreements with different suppliers. It's being touted as a virtuous flywheel, rather than circular financing. Single-handedly dragged the entire world into the AI revolution. 

Some competitors are on the scene. Still the king, tough to bet against.

He added more Nvidia because he was underweight it, trades at 20x PE forward at 100% earnings growth, and the 200-day moving average looks great. It typically runs up before earnings.

He bought it last week, because it was doing nothing, lagging the semis. He's undecided if he will be there for the quarter. They always report great quarters and raise guidance, but then shares trade down afterwards. 

Their growth is ginormous and people can't understand how much it will grow. The stock has been getting cheaper as it consolidates. Let's see if it breaks the ceiling of $230, and then it's off to the races. Spacex is pushing all of its chips with NVDA--a huge customer.

It reports in 14 days. 96% of analysts have a buy rating with a $303 price target. Earnings growth is 114%, free cash flow will be $47 billion, and the revenue growth guide will be $100 billion next quarter.

It's in the midst of a breakout.

After Musk said that Spacex's massive capex is going all in on Nvidia, you must own Nvidia or you're missing the boat.