Nvidia is a top-tier company that will beat and raise, but the stock's near-term direction depends on an extraordinary beat and a signal of accelerating AI capex; without it, volatility may increase.

There's of course still these concerns about the AI buildout, inflation. Uh this is all coming ahead of Nvidia's uh big second quarter earnings numbers coming out tomorrow after the close. Uh the stock right now is up 1%.

Uh Darius, what are your expectations in particular when it comes to Nvidia? Uh the thinking that we've heard so far this week from several analysts is that it's not that Nvidia isn't going to beat, but they've really got to beat.

It's got to be an extraordinary beat because the expectations are so high going into this one.

Yeah, that's good. Thanks for having me, Cheryl. Appreciate being here. Uh so yeah, of course they're going to beat, they're going to raise. This is what Nvidia does. It's one of the best companies of all time.

Uh what we're watching for tomorrow is whether or not they signal an acceleration of AI capex in the broader AI ecosystem that can potentially power uh the equity market uh through year end. uh if they don't, you could actually start to, you know, start to see some more volatility in financial markets, particularly as it relates to the bond market volatility that we continue to see that Treasury Secretary Scott Besson, a former client of mine, is now responding to uh pretty aggressively.