$NVDA · Schwab Network · 2026-11-06

companies like Nvidia are going to release their earnings reports very soon.

So where does Nvidia fit into this story ? A friend of mine asked me about Nvidia, he is quite worried because it has been on a downward trend for a long time now. For example, it has fallen 4% in the past 1 year while the average index and other technology stocks have been rising, yet many of my guests choose Nvidia as the clear leader in this sector because it is in demand.

What is your opinion if Nvidia is at $187 ? Let me know what you think will happen next for Nvidia. Look, it's now more than 20% below its peak price. It has decreased by about 14% in the last week.

Nvidia Trade is now synonymous with AI. Without Nvidia, AI will not be able to continue its expansion at its current rate. The bottom line is that this is a huge company and you have to remember that they have given investors excess profits over a long period of time , so it is not unusual for the stock to digest that.

But when you look at the company's valuation, it's trading cheaply compared to the S&P 500, which is trading at about 19 times forward earnings versus the S&P 500's 16 times forward earnings.

So, I believe much of the risk mitigation work has been done for you at this stage.

With that in mind, apparently, they are going to release their earnings report soon. So, if you want to take a position, maybe you can invest half now and the other half later.

But if you believe in AI trading, Nicole, I think most people should keep Nvidia as one of their core investments.

Can we talk about Nvidia's upcoming earnings report ? Some of the guidance or forecasts in the technology sector were a bit weak , right? I've been hearing and noticing lately that while the quarters have been great, the future outlook seems a bit loose.

What do you think is the most important thing in Nvidia's upcoming earnings report? How can you tell what the next big step in AI will be when listening to Nvidia's earnings report ?

Yes, the point is how optimistic they can sound about future earnings, that's the real point. As stock investors, we don't buy last quarter's earnings, but rather look at what the company's future holds.

We are looking at about $108 billion , which is huge year-on-year growth.

I think another big area people worry about is gross margin. We were at 75 percent. People might be talking about 74 percent. If it falls below 72 percent and there is no good future guidance from them, the stock could fall another 10 to 20 percent.

So you definitely have to be prepared for that, but I don't think it will happen. I think they probably had a great quarter.

Companies like Meta and Microsoft are now pouring a lot of money into this sector through debt , and Nvidia is a direct beneficiary. I don't think this will stop anytime soon. But the question is, what will next year be like ? What will happen two years from now?

I'm contradicting myself because I said a little earlier that Nvidia seems cheap. In 2006 or 2007, housing prices seemed very cheap. Housing stocks were also very cheap, until they collapsed.

Why? Because the expectation was that people would continue to buy one or two houses every year. The expectation for AI trading is that it will continue for many years and Nvidia will be able to maintain their revenue stream.

If anything disrupts this story , this stock and the entire sector could see a major correction.

And listen, you said you like Nvidia. It has dropped from a high of 243 to around 187 now. However, 187 is a lot more than 3 years ago when it was 45 dollars. Right. So, looking back 3 years, I think people are in a good position.