The Biggest Takeaway From Nvidia Earnings
Alex Moschina|May 22, 2024
Investors have been anxious this week, watching as Nvidia (NVDA) shares bobbed up and down in anticipation of today’s earnings results.
A lot is riding on the company.
Its business has become synonymous with AI… at least partly because the biggest, purest plays on the technology – like OpenAI and Anthropic – are privately held.
Still, as one of the major chipmakers helping power the AI revolution, Nvidia is a fine stand-in.
Put in the parlance of the movie Swingers, it’s the guy behind the guy… behind the guy.
And it’s certainly paid to bet on the company over the past 18 months. Just look at the chart going back to November 2022, when ChatGPT launched and – overnight – humanity was forced to reckon with its fast-approaching AI future.
Every dollar invested in Nvidia then would be worth six dollars today.
In a galaxy of roughly 10,000 publicly traded stocks, that type of return over such a short span of time is rare to say the least.
It’s why Shah – and others – now call Nvidia the most important stock in the world.
Whether that’s good or bad for the market as a whole remains to be seen. Today’s earnings results and, more importantly, the market’s reaction tomorrow morning will be telling.
But if the company beats or disappoints… the overall narrative doesn’t change.
That’s the biggest takeaway for investors.
AI is sure to remain the market’s strongest driver – excepting interest rates – in the months ahead.
And while Nvidia may be the biggest game in town… it certainly isn’t the only game in town.
As Shah wrote on Tuesday, there are plenty other ways to add some AI exposure to your portfolio.
In fact, there are two “pick and shovel” AI plays that he shared with readers here.
They’re in a sector that often goes unlooked. Taken at face value, it isn’t what you’d call “sexy.” But if you’re looking for a long bet on the future of this tech, it’s well worth your attention.
Similarly, I want to point you to today’s edition of Buy This, Not That, which is focused on an element that’s essential for many modern-day electrical components.
With gold, silver and platinum all soaring over recent months, readers have been asking for our take on metals and miners. So, be sure to give this one a watch.
Note: If you’re into “guy behind the guy behind the guy“-style investing, you need to hear about Nvidia’s secret partner. It’s a company that should be on every AI investor’s radar… yet hardly anyone is talking about it. This could be a great opportunity to get in ahead of the crowd. Click here to learn more from Shah.
Alex Moschina
Alex Moschina is the associate publisher of Manward Press. A gifted writer, editor and financial researcher, Alex’s career in publishing began more than a decade ago when he worked at one of the world’s leading providers of academic research and reference materials. Alex first cut his teeth in the realm of investing when he joined the team at White Cap Research in 2010. There he was charged with covering emerging market trends and investment opportunities. A stint as senior managing editor and editorial director at the prestigious Oxford Club followed. A frequent speaker at conferences and events, Alex has led educational workshops across the U.S. and Canada.
