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Semiconductors: The Setup Going Into $NVDA Earnings

August 26, 2024

This $NVDA earnings release on Wednesday gives Wall Street a look inside the largest component of America's most important industry.

Thousands of Traders have already signed up and downloaded our Special $NVDA Earnings Preview.

You guys know me. I don't normally overreact when it comes to quarterly earnings. 

Personally, I wish they didn't report earnings at all. There are no earnings in Crypto, which is one of the things I love about that market.

But this one with $NVDA can't be ignored. Even for me!

That's why we're Live Streaming the release on Wednesday starting at 3:45.

We'll have a lot to talk about. And we'll have some very special guests dropping by to share their thoughts.

But here's why it's so important.

This is the setup. You've got the Semiconductors Index getting to that 261.8% Fibonacci extension level from that entire bear market base from 2021 -2023. 

Take a look at those Index weightings. Nvidia alone represents over 19% of the entire Semiconductors Index

By the way, Nvidia also represents 7.6% of the Nasdaq100.

This is a big deal.

Remember, this isn't Apple or Microsoft that have been massive for so long.

Nvidia JUST got here.

$NVDA is up 10X just this bull market alone.

It was under $300 Billion back in 2022. It's now over $3 Trillion

The next largest Semiconductor is less than 1/3 the size of $NVDA.

So that resistance outlined above in the Semiconductor Index $SMH around $282 is not going to resolve higher without $NVDA heading towards a $5 Trillion valuation.

And on the flip side, that key $200 level in the Semi's Index can't break down and resolve lower without $NVDA dragging it down.

This is arguably the most important industry group in America. 

And to be clear, I would have said that before AI and Semi's became cool last year. This has always been the case.

"You can't have Tech without Chips", is how I learned it. 

And when you go back and study every bull market in history, you'll notice how Tech is a leader and an outperformer in almost every single one of them.

So if you're an investor or trader of any time horizon, Wednesday's event is going to be huge, and almost certainly accompanied with opportunities to make money.

We'll be right here talking about it.

Download our SPECIAL $NVDA Earnings Preview Report

I'll see you in there!

JC

Also See:

Bull Market Breadth

Global Semiconductors

Why This isn't Bearish