To The Moon

Earnings season is always a test of investor confidence, but $NVIDIA(NVDA)$ upcoming results could be particularly interesting.

NVIDIA has been one of the biggest winners of the AI boom. Its chips power the computing infrastructure behind major AI developments, and demand from large technology companies has helped drive extraordinary revenue growth.

However, investors now have another issue to consider before deciding whether to hold overnight: the unexpected departure of founder and CEO Jensen Huang.

With earnings approaching, would I hold NVIDIA, take some profits or wait for a potential buying opportunity?

Here is how I am looking at it.

1. Strong earnings are expected, but expectations are high

NVIDIA has consistently benefited from growing demand for AI computing.

Major cloud providers and technology companies continue investing heavily in data centres, GPUs and networking infrastructure.

For the upcoming report, I would focus on three areas:

• Data centre revenue: Is demand for AI infrastructure continuing to grow?

• Gross margins: Can NVIDIA maintain its profitability as production and product costs evolve?

• Forward guidance: Are customers expected to continue spending heavily on AI infrastructure?

The challenge is that investors already expect strong results. Even if NVIDIA beats earnings estimates, the share price could fall if management provides a weaker outlook than the market anticipated.

2. Jensen Huang’s departure adds uncertainty

The recent leadership change makes this earnings announcement different from previous quarters.

Jensen Huang co-founded NVIDIA and played a major role in transforming it into a global AI powerhouse.

Following his resignation, CFO Colette Kress has been appointed interim CEO while the board searches for a permanent replacement.

Kress has been with NVIDIA since 2013 and understands its financial position and operations. However, investors will want reassurance that the leadership transition will not affect product development, customer relationships or the company’s long-term strategy.

I will be particularly interested in how management addresses this change during the earnings call.

The departure does not automatically mean NVIDIA’s business fundamentals have weakened, but it introduces another source of uncertainty that investors cannot ignore.

3. AI demand is still the bigger long-term question

Despite the leadership change, NVIDIA’s underlying business remains important to the AI industry.

Companies such as Microsoft, Amazon, Google and Meta continue investing in AI infrastructure.

NVIDIA also has an advantage beyond its GPUs. Its CUDA software ecosystem, networking technology and integrated computing platforms make it difficult for competitors to replace its products quickly.

However, I would also watch whether customers are getting sufficient returns from their AI investments.

If AI spending continues expanding, NVIDIA could benefit. If customers begin slowing their investment plans, growth expectations may need to be adjusted.

4. Why I wouldn’t automatically sell before earnings

My approach is not to sell every stock simply because an earnings announcement is approaching.

For a company with strong fundamentals and long-term growth potential, short-term volatility is part of investing.

However, I also don’t believe in holding blindly.

If a stock has already delivered substantial gains, taking some profits before earnings can be sensible. It reduces exposure while allowing investors to participate if the results exceed expectations.

I prefer partial profit-taking rather than making an all-or-nothing decision.

5. What if NVIDIA drops after earnings?

I would not automatically buy the dip.

First, I would examine why the market is selling.

If NVIDIA delivers strong results but the market reacts negatively because expectations were too high, a pullback could create an opportunity.

However, if the decline reflects weaker guidance, slowing customer demand or concerns about the leadership transition, I would take more time to reassess.

A lower share price does not always mean a better investment.

Keeping cash available gives investors the flexibility to wait for clearer information instead of rushing into a trade.

6. My strategy going into earnings night

I would approach NVIDIA with a balanced strategy:

• Existing shareholders: Hold a reasonable position if the long-term investment thesis remains intact.

• Investors with substantial gains: Consider selling part of the position to protect profits.

• New investors: Avoid chasing the stock immediately before earnings.

• Investors holding cash: Wait for the results and management’s outlook before considering an entry.

I would rather miss some overnight upside than expose too much of my portfolio to an event I cannot control.

My final view

I remain interested in NVIDIA’s long-term position in the AI industry, but I would be more cautious than usual ahead of this earnings announcement.

There are now two things the market needs to evaluate: whether AI demand can support another strong quarter and whether NVIDIA can maintain its momentum under new leadership.

For me, earnings night is not about guessing whether the stock will rise or fall tomorrow. It is about knowing why I own the company and deciding how much risk I am comfortable taking.

There will always be another opportunity in the market. Protecting capital is just as important as capturing growth.

For discussion purposes only. Not financial advice.