Pro Perspectives 8/22/23





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August 22, 2023

Nvidia will report earnings after the close tomorrow.
As we've discussed here in my daily notes, Nvidia will need to deliver on what was a huge promise made in its Q1 earnings event.  That set the expectation for an $11 billion revenue quarter in Q2.  And that's a better than 50% jump from Q1.  
What if they miss? 
If they miss, the AI-heavy Nasdaq would probably trade into this technical support (the yellow line in the chart below) over the following days.  This is the trendline from the year's low – about 4% lower than current levels. 
But it would be a buying opportunity, likely even considered a gift for those that haven't participated in this AI revolution, to get involved.
Regardless of the numbers tomorrow, we should expect Jensen Huang, CEO of Nvidia, to reveal the rapid innovation in the industry, of just the past quarter.  That includes the deal they announced today with VMWare, where they will be working together to deliver generative AI applications for companies, enabling these companies to deploy large language models (like a ChatGPT) using their own proprietary data (keeping that data private and protected).
Speaking of "rapid innovation," billionaire activist investor, Dan Loeb, recently said this about the generative AI opportunity in his investment letter:  "We believe generative and other forms of AI could compare to the Industrial Revolution but compressed into a period of months and years, rather than decades."
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