Why Nvidia’s market cap could drop $6 trillion this week?

The technology sector continues to outperform the market as the AI ​​race shows no signs of stopping. Nvidia (NVDA), in particular, has benefited greatly from high AI demand, with the chip-making giant surpassing a $3 trillion market capitalization and gaining more than 200% in the last week alone. Next report week and skyrocketing expectations, does Nvidia have more room to grow?

In the original episode of Opening Bid, EMJ Capital founder Eric Jackson told Yahoo Finance executive essayist Brian Sozzi that this is just the beginning of Nvidia’s story. Jackson laid out his case for why Nvidia could double its marketplace cap to $6 trillion this week and become the largest US corporate by a wide margin. He points out that the chip giant expects to triple its market cap in 2023 and double it so far in 2024.

He explains, “We’re now moving ahead again with Nvidia, and I wouldn’t be surprised to see another strong earnings report this fall… We’ll see evidence in the August report of early appetite for Blackwell chips, And we know those things cost more than H100s, H200s, so that could happen, but certainly by November we’ll have proof of actual operating results.”

Click here to watch the full episode of Opening Bid.

video transcript

You are demanding or making the point that you think a $6 trillion market cap is conceivable for NVIDIA.

Yes, it’s conceivable this week.

And so this week, cause, yes, until the end of the week and right here, right here is mine, store on, store on, store on 2D.

So wait, NVIDIA is a $3.2 trillion corporate and you see, you see six trillion by the end of the week, II can see this factor rising between 202-50 per cent by the end of this week.

Uh and so the reason, the reason is that um, over the last 5 years, if you go back and see what’s, you know, how the forward price moves in profit, over that 5 week period There’s a lot for NVIDIA in the U.S., uh, you know, this, this and this is true for many stocks like yours, you go through ups and downs where there’s this kind of euphoric reaction, possibly because of their There is this impossible profit record and suddenly it happens that, on some grounds the corporate becomes very dear on the further journey and later on they like an additional dull profit record and suddenly, you realise, which further The multipliers are they go up dramatically.

And although obviously the protection value for NVIDIA is the same, it has been declining for more than a week now since possibly 2023.

And it, I don’t know, it tripled last week and I believe it doubled this week.

the story continues

Um the front pair has been really brutal for the most part of that exit.

Uh, in other words, like depending on further travel, it’s almost like Wall Boulevard.

I thought it would be almost like they had another excellent quarter, but in that, it’s going to slow down significantly from here and we’re going to travel back to roughly, you know, uh, you realize, Very low range and on the topic of how they are pricing this factor, it is no longer our thing.

And, and yet, like that 5 week period, there were three times where the forward pair got that much profit, uh, a month, it used to be like 55 times the forward profit, a , it used to be like 63 opportunities, uh, when it peaked there were further gains.

And there was one month where it was given about 70 times, uh, advance benefits.

Uh, and then it kind of receded for a while for almost most of last week.

This factor has been like the same old redirect under merciless on the basis of onward travel.

And right now, this thing is poised to move 39x forward to 40x profit, which justifies it being ruthless.

So my belief is that, you know, now we’re broadly going up once again with NVIDIA and I, it wouldn’t surprise me now that we see another strong profits record by this autumn. If so, it could be a seismic match.

I have, I’m being ruthless, added $3 trillion in marketplace cap within weeks, that’s an entire alternative corporate like 3 or 4 alternative firms.

So, I’m Ruthless, do you know if this is an upcoming record?

Is that an earthquake?

I’m ruthless, actually where the orders are, almost like we saw in the last week, they came out and they blew everything up, reset the steering again and just exchanged.

Everyone is thinking about the name.

Clean, step away from the market, bucks of marketplace cap that’s being added and keep it in mind by the end of the week, stock phrases like NVIDIA primarily tripled.

As I said, this week, it has doubled and I’m speaking, I’m saying it could double again between now and the end of the week.

And so it will be on both August earnings, upcoming profits in August and the only upcoming one later which I think is November.

Uh so, you know, I, I, I’m not sure now, but I undoubtedly believe, you know, we, we’ll see evidence in the August list of the initial appetite for Blackwell ships and we all know that those issues The price of H one load is higher than H two load.

Um, so it could be later, or, or, you know, though, no doubt through November we’ll have evidence of the real ongoing impacts and we’ll find out where some of this is at NVIDIA. Are you saying, oh, okay, society has become dual, triple system and it’s going to come back to earth, is that right?

Or, uh, we’re going to find out that, cleverly, there’s still insatiable demand for those chips and that factor isn’t going to subside very soon.

And the margins on Blackwell are even higher than that, you know what they’re handing out for the final week, which has already blown our minds.

And so I believe once again, like, I don’t know if it’ll happen in August, I don’t know if it’ll happen in November, although I believe it could be an enthusiastic response and if so So it’s like that again going to, uh, 65 times forward profit.

Percentage wise you’re there, you’re there, you’re there at 250.