Hold Nvidia long-term, you'll be 'well-rewarded': Scaramucci

Nvidia's (NVDA) upcoming earnings are the talk of Wall Street as the chip company could make major waves for the broader market as it holds about 5% of the total weight of the S&P 500 (^GPSC).

Skybridge Capital Founder Anthony Scaramucci joins Catalysts to give his take on Nvidia's earnings expected out after Wednesday's closing bell and how he believes Nvidia will play out in both the long and the short term.

"Nvidia is growing and evolving. Could it have a short-term impact on the market here? No question. Do we own it? We own it. Are we staying in it? Yes," Scaramucci claims. "I just point out to people that are listening: There's a guy named Warren Buffett, he made a 70-year bet on America sometime in 1954. He decided, I'm getting long, America. I'm getting long, super high-quality companies... and I think people have to start thinking like that again. Nvidia is one of those names. I think if you hold it over the next decade, you're going to be very well rewarded."

For more expert insight and the latest market action, click here to watch this full episode of Catalysts.

This post was written by Nicholas Jacobino

Video transcript

So let's turn our conversation a bit and talk about the big story of the day.

And that is NVIDIA.

I'm curious to get your thoughts, just market current valuations.

You've got lots riding on this report.

There certainly has been a lot of hype about what we are going to hear and see from NVIDIA after the bell.

How big of a bellwether is it for the market?

And, and what does it ultimately mean here?

Just in terms of the larger story, the more macro story that's playing out within the markets today.

So I've said this consistently that we own it.

We like it.

We like a I could it be overvalued?

Could be it be in a crowded trade.

Yes, we could be.

But I wanna just point out to people if you're a long term holder, you're gonna benefit from these great companies like NVIDIA.

You know, if you, if you took Amazon go back 25 years, uh 10 periods of time down at least 21 period of time, down 80.

Uh the very famous Jeff Bezos letter in the year 2000 when he was writing about uh the demolition of his stock but yet the improvement of fundamentals, NVIDIA is growing and evolving.

Could it have a short term impact on the market here?

No question.

Do we own it?

We own it.

Are we staying in it?

Yes.

And uh you know, I, I just point out to people that are listening.

Uh There's a guy named Warren Buffett.

He made a 70 year bet on America sometime in 1954.

He decided, you know what, I'm getting long America, I'm getting along super high quality companies.

I'm gonna take this ride with America and I think you have to start thinking like that again.

NVIDIA is one of those names.

I think if you hold it over the next decade, you're gonna be very well rewarded.

I know a year ago we spoke and you said regarding the fed from a macro perspective that they would declare victory around 4% inflation.

We've seen them very much so not do that.

They're sticking to that 2% goal.

What do you think that that does for risk assets for the tech trade, including names like in video?

Ok, so you're right.

They are jaw boning people and telling the people they're going to go to 2%.

But when you really look at the data, I think they cut rates well before they get to those targets.

And so I'm still in the two possibly three camp this year.

Hopefully you guys will invite me back to either prove me right or wrong on that.

But the reason I'm saying that is they have this debt bullet, they're staring down the barrel of a debt bullet.

You, you don't wanna get the US in a situation where we're spending 1.5 to $2 trillion on interest payments.

Uh We're upside down right now.

27% of the GDP is in federal spending, 6 to 7% of it is in deficit spending.

Uh, if alarm bells are not going off at the fed or if you're looking at the economic dashboard of the country and seeing this imbalance, uh, this is wild deficit spending for a nation at full employment with these wage numbers.