Here's what investors should watch when Nvidia reports earnings on February 26.
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00:00What about NVIDIA, right? That company doesn't report until February 26th, late February.
00:06So what will you be looking or listening for when that company talks?
00:12Well, let's talk about what we've gotten thus far, because there's been a number of supporting data
00:16points for NVIDIA, whether it's, you know, most recently Taiwan Semiconductor talking about their
00:23March quarter results. You know, if you parse the numbers versus year over year, up significantly.
00:28Han Hai, which is a big partner for NVIDIA and AI servers, up strong. So those are positives.
00:35But even more recently, Supermicro, with their outlook for their AI-related business, you know,
00:41very strong. And that in particular kind of tells us that we're starting to see the logjam break
00:49inside of NVIDIA, if you will, for Blackwell. That's their next generation chipset. That's
00:53the one that everybody is focused in on. And to the extent that Supermicro's business kind of
00:59follows the path of stronger second half revenue compared to the first half of 2025,
01:05that's a nice leading indicator for what we should hear from NVIDIA in a couple of weeks.
01:10But, you know, again, we'll continue to follow the data points, you know, including those big
01:15tech spending numbers. But they're too very positive for what NVIDIA should have to say
01:21in the coming weeks. But to be specific with your question, Conway, what are we going to want to hear
01:27from NVIDIA? How is the transition to Blackwell going? How does that factor into your revenue
01:33forecast for the back half of the year? When does the capacity constraints that you've talked about,
01:38when do they really fall to the wayside? So that's what we'll be listening for.
01:43And so how bullish are you on NVIDIA as a stock? It's still expected to post revenue growth, what,
01:49north of 50 percent this year. And thanks to that haircut it got around February,
01:54January 27th, it's trading, what, in the high 20s times its forward earnings.
02:00So how do you feel about the stock? Look, we've got a 175 price target. You know,
02:05right now it's kind of bouncing around between 130, 135. So we certainly see enough upside to
02:12keep it a one rated stock. And, you know, that's that's where we think that we're going to keep it.
02:17I wouldn't be surprised if, as capacity constraints fall by the wayside,
02:23that we see revenue expectations for the second half of the year strengthen. Remember, too,
02:28that, you know, with, you know, big tech capacity constrained, a lot of the dollars that they're
02:34going to go forward, you know, in spending for this quarter, the second quarter, even the third
02:38quarter, that's really laying the groundwork for what's to come. So I wouldn't be surprised if we
02:43see a nice revenue ramp inside of Nvidia over the ensuing quarters.