24 Hours Away: Nvidia’s Big Announcement

We’re less than 24 hours away from Nvidia’s big earnings release.

The fate of the stock market quite literally rests on this company’s shoulders.

Chris Campbell and James Altucher were gracious enough to let me write to you today.

That’s because I’ve watched every tick of Nvidia’s stock price over the last few years.

My investment account has the profits to prove it.

I’ve made $200,000 just this year on the stock, while my first Nvidia shares, which were bought in 2017, show a profit of over 5,000%.

In short, I’m very familiar with this company.

If you’re currently debating on whether to buy shares, sell shares, or even exit the market altogether, read this first:

The Nvidia freight train isn’t stopping anytime soon.

This was confirmed just a few weeks ago when Microsoft, Amazon, Alphabet, and Meta reported earnings.

Here’s a few quotes I think you should read:

“To meet the growing demand signal for our AI and cloud products, we will scale our infrastructure investments with FY '25 capital expenditures expected to be higher than FY '24.” - Microsoft CFO Amy Hood

“Looking ahead to the rest of 2024, we expect capital investments to be higher in the second half of the year. The majority of the spend will be to support the growing need for AWS infrastructure as we continue to see strong demand in both generative AI and our non-generative AI workloads.” - Amazon CFO Brian Olsavsky

“I think the one way I think about it is when we go through a curve like this, the risk of under-investing is dramatically greater than the risk of over-investing for us here, even in scenarios where if it turns out that we are over-investing, we clearly -- these are infrastructure which are widely useful for us.” - Alphabet CEO Sundar Pichai

“We anticipate our full year 2024 capital expenditures will be in the range of $37 billion to $40 billion, updated from our prior range of $35 billion to $40 billion. While we continue to refine our plans for next year, we currently expect significant CapEx growth in 2025 as we invest to support our AI research and our product development efforts.” - Meta CFO Susan Li

All of these quotes are from the last month.

Microsoft is going to spend more money next year versus this year to build out its AI capabilities. (They spent $19 billion just last quarter.)

Amazon is projecting higher spending on AI development in the second half of the year. (Total expenditures was $30.5 billion in the first half.)

Sundar Pichai just said he’d rather over-invest vs under-invest and fall behind on this generational technology.

And Meta’s CFO just increased its projected AI spend by billions of dollars.

Most investors don’t know these quotes exist. Or they simply don’t care and have decided to gamble their investment dollars based on half-assed research and emotions.

I prefer to put in the work and look at the facts, however.

The facts are clear: The deepest pockets in tech are increasing their spending, which means the Nvidia freight train isn’t stopping anytime soon.

The stock will move sharply higher or lower tomorrow afternoon based on emotions and “FOMO,” but I fully expect the stock to continue drifting higher over the next several weeks and months as more investors catch on.

Thanks for taking the time to read my thoughts today.

You’ll be seeing more of me in the coming weeks.

I’ve got plenty more insights and stories that will turn you into a better investor.

So while I might’ve been the one to make a tidy profit on NVDA this year, hopefully next time you can join me.