Halftime Report Banking on Nvidia 5/28/25
May 28, 2025
Joining the discussion are Stephanie Link, an Investment Committee member with a sharp eye for market trends, and Joe Terranova, a seasoned investor with a knack for strategic insights. They dive into Nvidia's upcoming earnings report, exploring how geopolitical factors and regional demand could reshape the AI landscape. The duo also examines the sizzling retail sector, spotlighting Abercrombie's impressive results and the shifting consumer landscape. Their insights into semiconductor trends and investment strategies provide listeners with valuable perspectives as they navigate today's market.
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NVIDIA Demand Beyond China
- NVIDIA's revenue might miss estimates due to the H20 ban in China, but this is largely priced in the stock already.
- The key is strong demand outside China, especially for AI, which could drive the stock higher post-earnings.
Hyperscalers Drive AI Spending
- Hyperscalers are massively increasing AI spending, up 40% this year and likely 30% next year, reflecting ongoing strong demand.
- NVIDIA's supply constraints are a bigger issue than demand; any price drops should be a buying opportunity.
Retail Revives Semiconductors
- Tech sector selling recently is driven by institutional and hedge fund exits, while retail investors are increasingly buying semiconductor stocks.
- This retail enthusiasm for semis is driving strong double-digit gains, despite larger institutional caution.