AMD's AI accelerator thesis is intact: it doesn't need to beat Nvidia, just capture a meaningful share of a large and expanding market, and strong Nvidia demand supports this.

And then Nvidia and AMD, well, they provide compute.

Let's begin with AMD, the most obvious. At first glance, you might think, well, wouldn't good Nvidia earnings be bad for AMD? Not necessarily. If Nvidia says AI accelerator demand remains enormous, hyperscalers continue increasing their spending, well, customers can't get enough compute, that's evidence that AMD is competing inside an enormous and expanding market.

Remember my AMD thesis in a few videos back. AMD doesn't have to beat Nvidia. They They even have to catch Nvidia. If the AI accelerator market becomes large enough, AMD simply needs to capture a meaningful percentage of it.

So, strong Nvidia demand can actually reinforce my AMD thesis. The danger would be if Jensen starts talking about weakening accelerator demand because then investors aren't debating market share anymore.

They're debating whether the entire market is slowing. That's much worse for AMD.

This is why I own exposure to both sides of the equation. I own Nvidia, AMD, and then Broadcom and Marvell, but position sizing is different for all of them.

So, with that, there's really two scenarios that could take place after the report on Wednesday night. Scenario one, Nvidia crushes it. Revenue beats, EPS beats, margins hold, Q3 guidance comes in well above 104 billion.

Ruben remains on schedule, and Jensen says demand continues exceeding supply. If we get that combination, I think you could see a significant relief rally across AI, Nvidia, AMD, Taiwan Semi, Broadcom, Marvell, Credo, Micron, potentially even AI infrastructure and data center names because the market gets confirmation the AI spending cycle isn't over.

And to be clear, this is the scenario I'm not only hoping for, but also it's my expectation.

So, in conclusion, Nvidia reports Wednesday, and this is probably the most important earnings report remaining in the season. I'm watching 92 plus billion in revenue, $2.09 EPS, hoping for higher, 75% gross margins, and Q3 guidance versus roughly $104 billion.

What's the take on rumor demand? Is there any sales heading into China? And most importantly, Jensen Huang's commentary around infrastructure spending. Because if Nvidia tells us demand remains extraordinary, that doesn't just strengthen my Nvidia thesis, it strengthens my conviction across much of the AI investment stack.

AMD, Taiwan Semi, Broadcom, Marvell, Credo, Micron, and potentially many more. But if we start seeing cracks, I'm not going to ignore them simply because I'm bullish on AI. That's the entire purpose of following earnings.

Our thesis should follow the fundamentals, not the other way around. And Wednesday night, we're going to get one of the most important updates of those fundamentals we receive all year.