Louis Navellier Forecasts Nvidia’s Continued Dominance Ahead of Earnings

AI developers are increasingly seeking greater computational power, driving the rapid expansion of artificial intelligence and benefiting Nvidia.

Nvidia is expanding its vertical integration by investing in firms that provide reliable power solutions for data centers, sourced from both the electrical grid and alternative energy providers.

The company is in advanced negotiations to acquire a stake in Cloverleaf Infrastructure, a power provider for data centers. It has also acquired an equity interest in SoftBank’s SB Energy, linked to a 20‑year lease of an Ohio megacampus by OpenAI. Furthermore, Nvidia invested $2 billion in Lancium, a power developer that supports a Texas campus where OpenAI obtains compute capacity from Oracle.

This vertical integration positions Nvidia to maintain market leadership for more than two decades, as many data centers are subject to 20‑year lease agreements.

Expectations are high ahead of NVIDIA’s August 26 earnings release. Analysts anticipate the company will nearly double both earnings and revenue compared with the prior year. Consequently, I will be closely watching CEO Jensen Huang’s remarks on AI demand and the forthcoming product pipeline.

NVIDIA’s performance could lift S&P 500 earnings growth above 50% for the quarter, underscoring the exceptional strength of this earnings season.

My grading system assigns NVIDIA a C rating, which may appear modest given the context. The rating reflects a 70% weighting on quantitative metrics and a 30% weighting on fundamental factors.

Fundamentally, the stock receives low scores for earnings surprise and earnings momentum.

Although recent reports are positive, NVDA has reached an inflection point where its growth rate is beginning to decelerate.

Quantitatively, institutional buying pressure has weakened, representing short‑term market dynamics.

Long‑term, I project that NVDA will reach $500 per share by the end of the decade.

For additional details on my stock grading methodology, please follow the link.

NVIDIA is the earnings finale

Expectations are high ahead of NVIDIA’s August 26 earnings release. Analysts anticipate the company will nearly double both earnings and revenue compared with the prior year. Consequently, I will be closely watching CEO Jensen Huang’s remarks on AI demand and the forthcoming product pipeline.

NVIDIA’s performance could lift S&P 500 earnings growth above 50% for the quarter, underscoring the exceptional strength of this earnings season.

NVIDIA won’t be the only thing Wall Street is watching

On August 26, we will also receive the July Personal Consumption Expenditures (PCE) report, the Federal Reserve’s preferred inflation gauge.

Economists expect headline PCE to rise 0.1% in July and 3.6% over the past 12 months, down slightly from a 3.7% annual pace in June. Core PCE is projected to increase 0.2% for the month and 3.3% year‑over‑year.

Following recent encouraging CPI and PPI data, we hope inflation continues to behave favorably, which would be positive for equities especially with the Fed’s September meeting approaching.

The Fed’s annual Jackson Hole symposium begins on August 27. I anticipate that Chair Kevin Warsh will discuss the productivity gains from artificial intelligence and why they are not inflationary.

Given ongoing inflation and interest rate concerns, Wall Street will be watching closely.

With NVIDIA, inflation, and the Fed all in focus, there is ample potential for market moves this week.

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