In today's video, we're diving deep into the latest earnings report from NVIDIA (NVDA) and exploring how artificial intelligence is making waves in the stock market.
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00:00 Nvidia stock is flying higher after an incredible earnings call.
00:05 That and much more happened this past week, including Jerome Powell, the dead ceiling
00:09 talks.
00:10 There's so much to go over.
00:11 Let's get right into the thick of it.
00:13 My name is Gav Blacksburg from Wolf Financial.
00:15 I'm here with Evan from Stock Market News.
00:17 Evan, walk us through some of the major stories that happened this week.
00:20 Yeah, so we want to make sure everyone is informed with what is happening.
00:24 And first and foremost, the biggest news story over the last couple of days has been Nvidia
00:30 earnings.
00:31 They came out with a beat on EPS and a beat on revenue expectations.
00:35 You can see here, but this is not where the full story was.
00:37 It was on the forward guidance, which came in above what analysts were expecting.
00:43 Analysts were expecting in the $7 billion range, and they came out and said $11 billion.
00:48 And you could see kind of how the last quarters have been going.
00:51 It's been in between that range of six, so slightly below that at points and up to eight,
00:55 slightly above that.
00:56 But $11 billion, it is very, very far out of that range.
01:00 And on the next slide, you can kind of see them talking about it.
01:02 This is not a one-time thing.
01:04 They expect the second half of the year to be equally as strong, if not stronger.
01:09 There was commentary on the call that, as it says here, we expect it to be substantially
01:13 larger, but they were saying that they expect the second half of the year to be better than
01:17 the first half of the year, and just some quick math, $7 billion plus $11 billion guide
01:23 over two quarters is $18 billion.
01:25 So they're expecting that, telling us we're going to get at least $9 billion of revenue
01:29 over each quarter in the second half of the year, which is still significant acceleration.
01:33 So it's not a one-quarter thing.
01:35 Maybe it is a two, three-quarter thing, and it's pulling forward long-term, but we will
01:38 have to see.
01:39 Jensen Huang doesn't seem to think so.
01:41 He thinks we're at the start of a 10-year cycle.
01:44 You're talking about a trillion dollars worth of data center chips that need to be upgraded
01:49 to these new AI level chips and advanced computing areas.
01:54 And it really does lead us into this next area, how many times they said the word AI.
01:57 It definitely is the keyword.
01:59 They said that 105 times.
02:01 That is more than they said it last quarter, more than any other company, any other large
02:06 significant name, and it boosted the stock price.
02:09 So this is the only time we're ever going to do this, but I am going to say AI 105 times
02:14 and we're going to see if we can get more views on this video.
02:16 So starting here, Wolf, make sure you're counting.
02:18 I don't miss any, but.
02:19 [Wolf counting]
02:47 I'm struggling a little. I'm at 50, I think, though.
02:49 AI, AI, what? AI, AI, AI. I think exec is the same. AI, AI, AI, AI, AI, AI, AI, AI, AI, AI, AI, AI, AI, AI, AI, AI, AI, AI, AI, AI, AI, AI.
03:05 I lost count. I believe I'm at 75 or 65 right now, so I will stop. But let's see if it boosts the numbers.
03:11 Shout out to that. If anyone makes it past this point, we love you. Next slide, though.
03:17 No longer are we talking about 10 baggers over 10 years. We are talking about 100x.
03:22 NVIDIA stock, it has 100x over the last 10 years. This was a graph I saw from Bespoke.
03:28 Shout out to Tesla and AMD and Apple's right below. Cut it off so you guys can see it a little bit better.
03:32 But this is pretty fascinating, just the level of return.
03:36 And then if you go to the next slide as well, and how historic of a day and a move yesterday was.
03:41 It says today, but it says yesterday. It was the third largest move market cap wise for US stock.
03:46 In history. Obviously, the larger companies get, the more this is going to happen.
03:50 But still slotting in there in third place. Very, very close to a trillion dollar market cap.
03:56 Let me double check how close we are right now as of making this video on 1.45pm Eastern on Friday.
04:04 Right now, we are trading around $960 billion market cap.
04:10 So getting very, very close to that trillion dollar valuation. Shout out to NVIDIA for doing that.
04:16 And short sellers, definitely do beware. We did hear that some short sellers were receiving something in the mail.
04:24 If you want to go over on the next slide. So we don't know what it is, but I just want to tell everyone to say no.
04:29 It is, I think, what we've learned from this stuff.
04:32 But there was a lot of other interesting stories from the week, specifically around the debt ceiling conversations.
04:38 This is a very, very ongoing situation. So by the time you see this, it could be over.
04:43 The most recent stuff that I found to be pretty interesting.
04:46 First of all, Fitch saying that if we didn't get a deal passed, they would be lowering the US credit rating.
04:53 We're kind of getting close to that 2011 environment.
04:55 A lot of people do put more credence into Moody's, so we'll wait and see what they have to say.
05:01 But in general, the conversations were getting a lot better over the last day or so.
05:06 We had Biden coming out and saying that they put forward a proposal to freeze spending for two years,
05:12 which is a very large concession in there.
05:14 And the market really took this on Thursday once this came out, as we are getting very close.
05:19 There was a couple other stuff. We did have McCarthy coming out and saying June 1st is the deadline that he sees,
05:24 which is pretty fascinating. So overall, this is definitely going to be coming to a head in the next couple of days, I feel like.
05:30 Moving over to Jerome Powell and the Fed, their preferred inflation index came out today, PCE.
05:36 Came in hotter than expected on the year-over-year print.
05:39 The first time it has accelerated in a couple months, I believe it was like 4.1 or 4.2% year-over-year last month.
05:44 And now we're at 4.4% above the median estimate of 3.9.
05:49 The month-over-month number was plus 0.4% in line with expectations.
05:54 So that's what that plus 0.4% is.
05:57 I do want to remind people, I was just seeing up there, shout out to the software we're using,
06:02 but make sure you go into like and comment on the video if you were enjoying it.
06:05 Make sure you're subscribed to our channels if you want to see more like this.
06:09 Myself and Wolf, we're trying to put more of a focus on YouTube going forward.
06:13 So we hope you do enjoy these videos.
06:14 And I'm putting some stuff together on the back end to get some really smart people to start putting out some really educational content on here.
06:22 I think there's some really good series that I have in the works coming, so should be excited for that.
06:27 All right, moving on to some of the more stock-specific stuff.
06:31 This is only some things over the last 48 hours, 24 hours or so.
06:35 We did have a Twitter spaces last night between Ford CEO Jim Farley and Tesla CEO Elon Musk.
06:42 The big announcement out of that one was that Ford will be starting to use Tesla's supercharger network.
06:48 They will be available 12,000 superchargers.
06:51 They announced that they're making a connector.
06:54 They announced that an adapter, should I say.
06:56 And just overall, Ford will be utilizing Tesla's supercharger network.
07:00 It was a pretty interesting conversation between both of them.
07:03 Elon was kind of talking about how we want to start sharing more software possibly.
07:07 So we'll see more integrations coming forward.
07:09 But I thought that one was pretty interesting.
07:12 On this whole AI theme, maybe I got to say it another hundred times.
07:15 We'll see.
07:16 I'm getting a little feedback.
07:17 But yeah, JP Morgan is developing its own chat GVT-like AI software service to select investments for customers.
07:25 So JP Morgan is just going to be using AI to put us into stocks, which is pretty fascinating.
07:31 Wolf, you have any thoughts on this one?
07:33 They also trademarked the name Index GVT.
07:36 You have any thoughts on that name?
07:38 Yeah, hopefully, you know, the AI will be attracted to ticker symbol chat.
07:44 I think that that's probably a natural connection that can happen here and it'll start buying up the AI names.
07:49 That's what I think is going to happen as it becomes slightly more sentient.
07:52 It's going to buy all the AI stocks and put them in people's portfolios.
07:56 That way, everyone becomes very bullish on the AI features and they continue to use it.
08:00 Just a hypothesis.
08:01 Or the AI starts to own, like the AI starts buying the AI stocks and becomes the owner.
08:06 It's just a self-cycle where AI ends up on top.
08:09 Wow, maybe this is the start of iRobot or something like that.
08:12 Wow, crazy times.
08:15 Shout out to JP Morgan's part in it.
08:16 If you go over to the next slide, though, we do have a little graphic for another major earnings this week, Costco.
08:22 A lot of people do love it and I really do like this infograph.
08:26 Really quickly, though, their EPS was a miss on expectations, $2.93.
08:30 Missing expectations of $3.31.
08:33 Revenue of $52.6 billion.
08:35 Missing expectations of $54.6 billion.
08:38 So both top and bottom line missing expectations.
08:41 They also, it's a cardinal sin in this market.
08:43 As we were kind of talking there, this had zero mentions of AI on the earnings release.
08:48 So maybe they're just a real company.
08:50 There are some areas that make sense for them in the long term to get into it.
08:54 But yeah, nothing about that.
08:56 And also nothing about the Costco hot dog combo changing in price.
09:00 The index, that inflation index is staying strong at $1.50.
09:04 So shout out to that.
09:06 The final story that I saw last night that was pretty interesting is Elon Musk's brain chip startup, Neuralink,
09:14 has been approved for its first inhuman clinical study.
09:19 That's pretty fascinating.
09:20 I know there were some conversations around them doing it in animals.
09:23 I don't even know how those effects really went, but they got approval to test it in humans.
09:27 So this is something that's interesting.
09:30 Recruitment hasn't started and we'll get more information in the future.
09:33 But yeah, something I was interested in.
09:35 Altered carbon-esque for anyone who knows that.
09:37 But some of my thoughts and my biggest stories from the day and week.
09:42 If you did enjoy this video, if you want us to do more stuff like this, definitely let us know.
09:47 I spent all day every day looking for the news and it's not too difficult for me to come together and say,
09:52 here's the 10 biggest stories I saw for the week and make sure everybody is kept up to date.
09:57 So definitely let me know if that's something you want.
09:59 Make sure you are subscribed to our channels.
10:01 I appreciate Wolf for doing this video with me and helping me with all the back end stuff too on it.
10:07 So shout out to that.
10:09 Wolf, anything you want to add on here?
10:11 That's all for us today.
10:12 It was a pretty eventful week.
10:14 The Nasdaq is now up over 20% on the year.
10:16 So let's see if this market can continue chugging forward and stay tuned with our Twitter spaces this week
10:23 as we discuss the outcome of this debt ceiling negotiation.
10:26 I think that's everything.
10:27 We're good to end it here, Evan?
10:29 Yep. Have a good one, everyone.
10:31 Appreciate you.