Nvidia's Earnings Preview: Last Hurrah Before ASIC Shift

Nvidia's stock has been underperforming for over a year, despite its crucial role in the AI trade.

The company still powers the entire AI industry, but its stock has not reflected this importance.

According to recent earnings guidance, Nvidia's Vera Rubin ramp is showing positive results, with margins holding at mid-70% levels.

This may trigger an earlier price hike for memory-led orders before it goes into effect in early 2027.

However, investors are advised to step away from the stock after this earnings play, as Nvidia's dominance in AI is expected to shift with the increasing importance of ASICs and cheap compute.