Nvidia Q3 earnings: All eyes will be on AI demand, growth

All eyes are on Nvidia (NVDA) as the semiconductor giant is set to release its third quarter results on Wednesday, November 20. The Sevens Report founder and president Tom Essaye joins Morning Brief to discuss what investors are looking for in the report. "With Nvidia, we can all expect them to produce mind-blowing earnings, but really what the market is focused on is that growth rate," Essaye says. Essaye explains that although Nvidia continues to deliver earnings beats quarter after quarter, the margin in which they are delivering the beats is shrinking. He believes if this trend continues, the market will be "disappointed," adding, "It's all about the guidance." "It's a growth story here; we all know it. It's the future; it's the next big thing. They have to keep us excited about it," Essaye states. He notes that with AI demand growing, investors are looking to Nvidia's results for proof that it is expanding across industries. "For AI to be the story that we all... believe and hope it will be, it's got to spread through the economy, to where we have companies using it that you wouldn't think are traditional tech-heavy users," he tells Yahoo Finance. As far as the market impact of these results, Essaye says "investors want something to get excited about." Markets were recently fueled by President-elect Donald Trump's win, but that rally is starting to fade. "A good Nvidia print with strong demand and strong guidance would really give a nice positive boost and, I think, would reinvigorate a rally."

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