Countdown to Nvidia earnings

Summary

CNBC's Kristina Partsinevelos previews Nvidia earnings, noting strong fundamentals and a valuation discount but highlighting a potential catalyst in increased shareholder returns. She also discusses concerns about competition from CPUs and ASICs shifting the narrative away from Nvidia GPUs.

• Nvidia earnings preview ahead of the close.
• Stock has traded down after 5 of the last 7 earnings prints.
• Fundamentals strong with compute sold out through 2027.
• Hyperscaler capex raised to over $700 billion for the year.
• Nvidia trades at 26x CY2027 earnings vs 34x five-year average.
• Bank of America notes a 30% discount to the S&P 500.
• Shareholder returns only 47% of FCF vs 80% for tech peers.
• Concern that narrative is shifting from GPUs to CPUs and ASICs.