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Investors gearing up for Nvidia's second quarter earnings tomorrow, the much anticipated print could have big implications. We know, not just for big tech, but really the broader market. For more on what this means for the AI trade, we're bringing in Patrick Moorehead, founder, CEO and chief analyst at Moore Insights and strategy. Patrick, always great to have you on the show, my friend. Um and you are the perfect guy to preview Nvidia results. I'm interested, uh Patrick, let's let's spin ahead. It's tomorrow after the close. Nvidia's print hits, Patrick. What do you make a beeline for in that report? Besides just the bottom, the top. What are the the metrics, the data points you're gonna focus on?

Yeah, so things I'm looking for is, you know, this hyperscalar uh train is not going to stop anytime soon. I'm I'm very confident about that. But what I am wanting to dig into is how is the enterprise business growing? That is a uh you know, that is a growth area for them uh beyond the hyperscalars. And the next is really the uh system level versus GPUs. Some people think that the company only makes GPU chips. They make GPU chips, they make networking chips, they make CPUs, they make now full racks, and then all of the software in there. That's what I'm gonna be looking for. I think the final thing is to get a little bit of clarity on this rumored Blackwell push out. And even though worst case it might be 12 weeks and and customers can just buy other versions of of Blackwell or the H series, I think this is what I I really want to get underneath.

Patrick, it seems like at least for right now, the analyst reaction, even some of the notes that that you sent over, Wall Street seems to be brushing aside any concerns right now of these delays of potential potential delays of blackwell chips, at least in the near term. At what point, what does the time frame look like when you do get a bit more concerned about the material impact it could have down the road?

So, I think the reason that everybody's brushing this off is because you can just buy other Nvidia parts. You know, I think we saw a similar type of behavior when Elon Musk uh with XAI, uh he didn't go. He didn't opt for the the highest performance ones. He got what he could get. And so that's the behavior. I think you get into issues when you're looking at uh four, five, six month uh delay. That that would be a huge challenge because it's not just about delivering the previous chips, you have to develop, you have to deliver and build the entire ecosystem that goes along with that.

It sounds like Patrick bottom line though, you remain at least right now bullish, confident about Nvidia for, you know, at least the next 12 months?

Yeah, at least the next 12 months. I think tomorrow the question is not, is it going to be good? The question is how good? Now obviously it comes down to the guide, but where most of this volume is going, and that is to these hyperscalers, the meta Microsoft, Google, uh Amazons, they are packing in the capex and they all talked about this on their calls. Their investors aren't up in arms because of this, even if there's not a ton of downstream benefits. Right now there is benefit, don't get me wrong. It just doesn't align with the capex yet. I think we have a good 12 to 18 months uh of this uh build out before people might be uh, you know, looking a little bit closer.

Patrick, talk to us a little bit more just about the implications for the broader AI trade. How much are is riding on these results specifically?

Pretty much everything. I mean, there's the financial world and there's the rest of the world. The financial world is is bating breath here. Uh if if Nvidia if Nvidia does great, it means that the train keeps going and all the downstream effects, whether it's the software, whether it's the systems. And even though there isn't a lot of correlation between how Nvidia does and how AI smartphones and AI PCs are doing, it will undoubtedly uh have people people will make incorrect assumptions tying those two together. And even when it comes to the enterprise SAS, you know, whether it's the the service now or the SAP or or the Adobes, uh it will take the entire tech market with it, up or down.