May 20th is Nvidia earnings release date. Analyst Atif Malik is looking for $1.4 billion in revenue upside in the quarter versus Wall Street estimates. He sees $2 billion in sales upside for the July-ended quarter. Another way of looking at this is that Malik expects very strong guidance out of Nvidia. I don't think he's alone. This quarter from Nvidia has to nail, and nail in a big way.

Yeah, very little chance that it won't too, Brian. I think that when you look at the estimates, they're probably conservative. Nvidia, it's probably estimated to have 53% uh revenue growth, it probably gets closer to 60. Remember, they're running at 71% gross margins and still trades below 25 times as compared to the SOXX, which is trading at 35 times. So, I think of the semiconductors which have been on a tear, Nvidia is the is the value proposition in the bunch.

Why do you think we've seen that decoupling? I I'm not I'm not trying to poo-poo the advance in Nvidia. I mean the stock has gained, it's done its Nvidia thing, but we've seen really the SOXX break out here. I think the SOXX is up 70% year to date.

Yeah, because they make GPUs and and everyone wants to buy the CPU makers and the DRAM makers. So it's the simple memory makers like Micron and SanDisk and and the rest of the semi-cap equipment companies. So that's the flavor du jour, while while the demand for the the higher margin business which is what Nvidia has, has not slowed down at all. And Nvidia is using its cash to actually make itself much more a part of the AI infrastructure. So I think every day we learn something better about Nvidia and right now it's just not the flavor of the day and the rest of the simple CPU makers are.

What else don't we know out of Nvidia that could get the stock rocking?

To Art's point, I mean they are investing in all the right places. They also announced their own CPU that's going to be competing with Intel and AMDs. Uh they also have a partnership with Corning and that's in the optics uh industry um because optics is another bottleneck of the AI trade. So they are certainly investing in all the touch points of the AI trade. If you take a look at what the street is expecting, I mean they've the street has 76 buy recommendations on this stock still, 76.