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The market has already priced in the bad news from the preliminary results. The market is anxiously waiting for the Q2 ER to decide its next move.Īnd my view is that we will very likely see a sizable upward price movement during the incoming ER. Now, the stock prices are almost unchanged from 3 months ago (with a 6.9% rally for NVDA and about 2.6% for AMD to be exact) since their Q1 results. And you can see its stock prices, and the stock prices for Advanced Micro Devices ( NASDAQ: AMD) too, rallied sharply after the act passed the senate. Indeed, on August 9, President Biden signed the 2022 CHIPS Act into law. And after that, investors already assumed that it will be signed into law shortly given that President Biden has provided his support openly before. As of July 27, 2022, the CHIPS Act has already passed both the House of Representatives and also the Senate. And in my view, a big reason is the CHIPS Act. Even with such gloomy preliminary results, the stock prices held up well though as you can see from the following chart. NVDA issued its preliminary results on August 8 and cautioned a 19% revenue decline from the prior quarter.

In particular, this earnings preview will concentrate on anticipating the impact of the CHIPS Act on NVDA. Note that its fiscal year is different from the calendar year, and the report will be for the 2nd Quarter of its FY2023. In this article, I will switch the focus to providing an outlook on its incoming Q2 earnings report, which is scheduled for the incoming Wednesday (August 24) after the market close. In particular, we compared the current crypto situation against the 2018 winter to analyze NVDA’s exposure. That article focused on the impact of cryptocurrency mining on NVDA. My last article on Nvidia ( NASDAQ: NVDA) was co-produced with Envision Research.

Also, I will compare it with AMD, another fabless chip business, to better anticipate and contextualize the impact.I think comments on this front can cause sizable upward price movements.Investors should pay special attention to comments from the management during the earnings calls on the potential impact.

And on August 9, President Biden signed the 2022 CHIPS Act into law.