What one analyst is watching for in the guidance
00:00 Speaker A
John Vin, who’s been a pretty consistent bull on Nvidia, was out with a note this morning previewing those numbers. And even though he’s still bullish, he also kind of sounded maybe something that will not be as positive potentially in those earnings.
00:18 Speaker B
Yeah, so what Vin was highlighting in that note truly is the fact that Nvidia might not have full a full outlook or full scope on what will happen with their business in China. Because of that, Vin thinks that they might exclude China from their third quarter guidance and therefore would maybe miss street estimates. This would be a rather big deal. Of course, we’re talking about it now, so maybe you could argue it might be expected to some extent when that release comes out. But remember when Nvidia has reported earnings for the better part of two years now, it has been the prior quarter beats street estimates, they raise their guidance for the coming quarter or the current quarter, and it usually beats street estimates for that current quarter guidance, too. So it’d be a shift in what we’ve seen from Nvidia, which has just been consistently strong results, strong results better than expected. But as you pointed out, sort of the flip side of what Vin is arguing, he raised his price target on Nvidia. He said looking into 2026 and 2027, so the longer term, he still feels good about the business once that China headwind sort of gets a little bit more cleared up and we have more clarity. $250 $15 price target on the stock. I’m looking at Nvidia shares this morning, they’re changing hands around 175, so he still sees some upside over the next 12 months. But maybe an interesting warning to think about when you think about those earnings next week coming as AI has started to sell off a little bit. If Nvidia doesn’t come out with as strong as results as normal, it will be interesting to see what that does to this sort of AI hiccup we’ve been following.