Financial results are scheduled to be announced after the closing bell on Wednesday, May 22nd, and all eyes are on NVIDIA. Spear Invest founder and girlfriend CIO Ivana Deleveska joins Seeking Trends to analyze the chip company's earnings expectations and market reaction.
“We're pretty confident that the company will beat expectations, but what we've seen in particular this quarter is that companies are beating expectations and raising capital, but the market is That's pretty disappointing to report. So it's not going to be that scenario. I wouldn't be surprised if that's the scenario. Over the next two years, she added, she expects an upturn for Nvidia as more data centers begin to emerge and Nvidia's chips are “very well-positioned for both training and inference.” .
Deleveska explained that as AI competition intensifies, there is a unique opportunity for companies offering thermal management. “You will benefit from this,'' he explains.
For more expert insights and the latest market trends, click here to watch the full episode of Seeking Trends.
This post was written by Melanie Leal
video transcript
There are only a few days left until the video is released.
Take a break.
Earnings Report Estimates for the chipmaker are very high, suggesting Quintap earnings per share will increase year-over-year, and analysts expect it to easily beat that estimate, as it has for the past five quarters. are doing.
Our next guest is looking forward to a solid performance from the company on Wednesday.
Ivana Deska, Founder and Chief Investment Officer of Spar Invest, will also be joining us.
Nice to see you again, Ivana.
Thank you for being here.
Thank you for listening.
me too.
So, um, you were looking for a company to win again, and I think there's a difference between a beat and a beat and a raise, and already almost doubled so far this year. Given this, stock prices will rise.
So what do you expect on that front?
That's right, Julie.
Therefore, we are confident that we will exceed your expectations.
But what we're seeing, especially this quarter, is that companies are winning, they're raising money, and the market is pretty disappointed in it, no matter what the report is.
So it's no surprise that that's the scenario.
However, I would say that a turnaround for NVIDIA will occur within the next two years.
So when you look at the estimates for 1-2 year routes, I think they are pretty conservative and require some meaningful planning.
It's still early in the data center cycle, which accounts for the upside to revenue estimates.
And we expect to achieve a kegger closer to 40% rather than the current 20% kegger, which is the consensus of analysts for those who don't know the kegger's compound annual growth rate.
So when it comes to themes, we are looking for revenue.
There is no doubt that data centers are a big part of this.
I think that accounts for about 80% of my income.
At the moment, they are still in the gaming business and we should take note.
And the other thing that people are paying attention to seems to be capital spending, which is a big theme among the big tech companies.
But for NVIDIA, we've probably been a little off topic.
Do you think that will be more important this quarter?
Well, Julie, there's a pretty big difference between hyperscalers and NVIDIA's business models.
right?
Hyperscalers are cloud service providers such as Amazon, A's AWS, and Microsoft's Azure.
that's right.
Therefore, these companies actually rely on capital investment to drive their business.
So they're buying a video chip and basically selling it as a service.
Therefore, if you want to increase your profits, you need to thoroughly invest in equipment.
For NVIDIA, it's a little different.
You don't need to invest as much in equipment.
Therefore, they intend to invest more in research and development and keep abreast of the cycle.
However, that dynamic alone is not enough to drive capital investment.
And it doesn't show capital expenditures, which showed operating expenses increasing year-over-year.
That is correct.
That includes research and development, right?
So R and D will, uh, increase.
Well, I want to ask you about training and inference, which is something we hear a lot here.
So we're at stage I right now, where everyone's building models and the AI, uh, large scale language models are learning. This is the training stage.
Then, once the IS starts making predictions, it moves on to the inference phase where it starts making its own leaps.
And I think one of the questions was, I mean, definitely NVIDIA is dominating the training phase.
What happens when we move further into the inference phase?
Sounds like you're pretty confident that NVIDIA still has a pretty strong lead here.
Their chips are very well placed for both training and inference.
Therefore, it is not often seen that they are at a disadvantage when it comes to reasoning.
A wider range of products is available.
Maybe that's where the confusion lies and people are thinking, “Okay, so I really need to use a top-of-the-line Blackwell chip.”
Could you be using a competitor's chip?
That's true, so you can use a wider variety of chips if you're doing it in France.
But that market has actually grown considerably, with NVIDIA revealing that it accounts for 40% of its data centers.
The current revenue is being spent in France, but this was two quarters ago.
So that number may be higher than it has been in the past, past quarters.
Therefore, they are in their proper place in the infer.
I don't think it's necessarily likely that competitors will disrupt that market.
And one MD, on a conference call with Ernest, or one of the conferences they attended, emphasized that they are actually trying to make the next generation of chips better at model training.
So I think over time we'll start to see similar, um, similar performance across both of our competitors.
Well, we know that with about 30 seconds left beyond NVIDIA, we're looking at two major themes that will fuel us outside of NVIDIA. I'm heading there.
That's right.
So you can see that it's actually in a rack inside a data center. So this is the chip we've been talking about.
But there are also opportunities outside the ruck. It's companies that provide thermal management, whether liquid-cooled or not, companies that provide power components for power generation.
So these are very large, large-scale investment areas that equally benefit from the data center investment cycle.
And what you're looking at is B to B, or business-to-business transactions.
There's a bit of overlap there.
But you're right.
Therefore, our ETF invests more broadly in B two B technology.
So there are several areas within B two B technology.
Hardware is one area.
Cybersecurity is another field.
Data infrastructure is the third area.
Therefore, our focus here is on data center hardware cycles.
right?
But there are many opportunities beyond that.
Okay, thank you very much for looking forward to Wednesday.
Thank you, Ivan.
appreciate.
