 Welcome back to Trading 360. I'm Nicole Petalides. It's time to talk about chip giant NVIDIA, reports its earnings after the bell today to preview the number of Melissa Armo, founder, owner, stock swoosh, and Serini Perjuri, managing director, senior equity research analyst at SMBC, NICO Securities America. Thank you both for being with us. Serini, I was just looking, you know, obviously NVIDIA three months ago really began a drop starting to claw its way back, but it really has expanded. It used to be just gaming. Now it's taking over Intel and it's, you know, autonomous and AI and so much more. What's your picture here? Because a lot of folks are have some big expectations for today Serini. Yeah, so I would say that, you know, the drop that we saw here today roughly 10% down is primarily because of the broader market. I would say that the company's fundamentals are still very strong. As you mentioned, you know, gaming is roughly about 45% of their business and they've been supply-constrained in that market. You know, you still cannot buy an NVIDIA latest gaming card if you went to Best Buy today. So the demand has been very, very strong and supply has been very tight. And then, you know, data center is another roughly 40% of their business and most of their customers, if you look at the big cloud players like the Microsofts and the Amazons of the world have reported very, very strong numbers, both from a capital spending CapEx standpoint and also their own cloud services growth standpoint. So we're expecting a pretty solid print here today, pretty good bid and raise. But I would say that the investors are also focused on, you know, what's, what's, what to expect for the next in a 12 months. I think, you know, I would be looking for what they say about the visibility in terms of the data center business and also visibility when it comes to their supply situation. So that's really interesting. You're expecting a beat and a raise, which really is some good news there. Of course, data centers are the growth there. And also the gaming demand outlook will probably be something they'll be talking about. Melissa, what are you looking at here when it comes to Nvidia? And do you like the stock? I look at the technicals and see what's happening with the price action. And obviously the stock will have a move tonight either way. Whether that move is up or whether that move is down really is not necessarily tied into how the earnings report because sometimes you get great earnings and then you have the stock fall. Sometimes you have terrible earnings any of the stock rally. The one important thing I think about in the video is that it isn't enough trend. It is holding relatively strong compared to something like the overall market right now, which has had a sell off since the beginning of the year. The video is trying to hold its own but it's really not a buy until it really gets over 300 to be solid because if the market continues to trail off and the market continues to fall like we have since the beginning of the year then nothing holds up against a weak market. But I will say this, if Nvidia falls the market will be pulled down tomorrow morning. If Nvidia rallies, the market could be pulled up. So there will be an impact on this stock's earnings that will have an effect on the market and then other things like Apple or other things in the sector. Obviously like the previous person said we have a supply chain issue. So people can't sell products even if they wanna buy them no matter what they charge from if they can't make them because they can't get the things to make them. And that is a problem across the board in all industries right now. Right, and I think to Serini's point as we take a look at this name, I mean one key question is they have, they rely on these contract manufacturers to produce the chips and they've had the supply constraints Serini. But I think most folks are believing that they will see a good quarter and have a good outlook and give this guidance which will be so key. Are you concerned about the valuation of the stocks Serini where it's trading at this point? Yeah, I mean, it's a high growth company, high quality company as a result the valuation has been at a premium to the rest of the market and the rest of the peers. So if you look in the last three years the stock traded an average of 40 times forward sometimes it was trading as high as 70 times forward. Right now it's roughly at 50 times but I think the focus is going to be on the fundamentals, the business fundamentals especially on the data center which is a high multiple business and my expectation is that that business is very, very strong right now. And as you pointed out, supply is going to be the key. The management already told us that they have visibility into improving supply as we go into the second half. I think they even made some prepayment to some of the contract manufacturers. So I'm pretty optimistic that this run will continue. I mean, the market does what the market does but fundamentally we still like the story very much. Yeah, and you have an outperform and a 340 target so a pretty good look there. Melissa Armos, we take a look at Nvidia. Obviously when folks are going to look at Nvidia they're thinking autonomous driving, they're thinking crypto, currency mining, mobile applications and of course gaming that's always been the original bread and butter but Melissa is there something else in the tech realm similar or different that you do like at this point? Not necessarily, this is probably the best stock long term. So again, I'm just looking at tonight's earnings saying what could possibly happen but long term they are innovators, they're at the head of the pack. I think if you wanted to get anything in this sector this would be a great buy because again, looking against the market this is holding up pretty well. Now whether it gets up to the highs remember the last time this stock made new highs was November 22nd, which is the last time that the QQQ's made new highs. So it didn't quite get to 400. If it can get over that 300 or the 340 level like the previous gentleman was saying then it looks like it couldn't make a new high. So I think that it's fine for Nvidia for a long term play here and it's still like the best in the sector. It's just, it's having problems like everyone else just like we've been talking about. If people want to buy things it doesn't matter how much they innovate if they can't get the things to make them they can't sell them and therefore they can't meet their numbers. Yeah, I'm really excited for that after the bill today folks Serrini and Melissa setting us up beautifully. We can watch for that here on the TD Ameritrade Network. Of course, we always have the breaking news the earnings after the bill here on our shows. Thank you both very much Serrini Pajuri, SMBC, NECO Securities America and Melissa Armo of the Stock Switch. Thank you both very much. Good luck there at Nvidia. And thank you friends for joining me here on Trading 360 every single weekday at 11 a.m. Eastern Time. I'm Nicole Petalides. I will see you at 2 p.m. Eastern for the watch list you join me then. Fast Markets.