NVIDIA (NVDA): What Foxconn and Super Micro Are Telling Us about the AI Boom

NVIDIA (NVDA) stock is poised for a strong August 26 earnings report, with analysts at Stifel citing bullish theses anchored in supply chain checkpoints. Foxconn, the world's largest electronics contract manufacturer, reported strong second-quarter revenue, and analysts anticipate its AI-related business will keep growing. Super Micro Computer (SMCI), a global leader in AI servers and storage systems, reported a significant revenue increase and expects to surpass market expectations for Q1 sales.

Hedge funds are also taking notice, with increased ownership of NVDA and SMCI shares. While there are concerns about the rollout of co-packaged optics and potential demand air pockets, supply chain discussions suggest GB300 demand remains robust. The primary metric to watch on earnings day is gross margin guidance, as supply chain-related pressure points could impact margins even if revenue beats expectations.