John Vinh, KeyBanc Capital Markets equity research analyst, join 'Squawk Box' to preview Nvidia's quarterly earnings results, what to expect from the tech giant, and more.

The release of Open AI's ChatGPT has accelerated the development of artificial intelligence and warnings about its impact on society.

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Nvidia is preparing to release its third-quarter earnings, with market analysts anticipating robust results driven by strong demand for its graphics processing units (GPUs). Manufacturing challenges faced earlier in the year have reportedly been resolved, and Nvidia is expected to post strong financial numbers despite some ongoing supply constraints.

Analysts project Nvidia's forward price-to-earnings ratio to be around 26, which is considered reasonable compared to industry peers. The company is seen as a clear leader in the merchant GPU market, with upcoming products like the Vera Rubin GPU expected to further strengthen its position. The depreciation schedule of GPUs in data centers remains a key topic, as it affects how often major customers upgrade their hardware.

Nvidia set to report Q3 results

NVIDIA set to report after the closing bell. Join us right now to talk about it. John V. Key Banks capital markets equity research analyst. What are you betting we're going to hear this afternoon. And how important is it. I think we're going to see very strong results from NVIDIA. I think I think he's Jensen's going to come on and talk about how robust demand is right now. I think we're going to see really strong numbers. You know I think earlier in the year there was an issue with them just getting the manufacturing yields up on these kind of grace Blackwell racks. We think those yields have gone up pretty significantly. I think they've gotten the manufacturing flywheel going. We do think they are seeing some supply constraints on the back end. But we think demand is extremely robust right now. And he should put up very good numbers. I'll ask you some of the questions I tried to ask someone earlier in the week. So what's your number for. And then let's let's try and figure out a yearly forward looking number and try to get a handle for for what the multiple really is. I know it's a it's a fool's errand and it changes so much. But we have people depending on their point of view they say it's at 80 times earnings or it's growing so quickly. It might be half that. Right. What what do you think. What do you what do you think that the forward P is on NVIDIA right now. Yeah I've got them doing over 300 billion in revenues and in about seven bucks in earnings. You know that sort of EPS that's that's roughly about 26 times earnings different than 80. It's a lot different than 80 times. Yeah. Let's talk about. Yeah I'm not sure where the where the 80 comes in. But that's that's relatively a very reasonable multiple. The stock historically has traded 30 to 40 times. I would say the median multiple is closer to like 35 plus times. Many of its peers trade at a richer multiple than than than NVIDIA does. So we really like the risk reward here. That sounds too good to be true. It makes me think that I'm afraid to even believe that. So what's your price target. What do you think is possible. Will it be a six trillion dollar company someday. Yeah I think it's I think it's possible. You know our our price target right now is 200 and 250 dollars. You know I think they are clearly the leader in that space. There is no one even close to them at least on the merchant GPU market. They are going to further extend their lead when they come out with Vera Rubin which is their next generation GPU and rack next year. So yeah we think that's certainly possible. Hey John one last thing to me and we'll see what happens on the conference call. This whole question about the depreciation schedule for these chips seems to me is is the whole game. It's about the math of how long these chips last and how often these big data centers and hyperscalers are going to have to upgrade those chips. Where do you land there. And what do you think we're going to hear. Yeah I think that's going to be a key topic on the earnings call that's going to be brought up. I certainly don't know exactly what the lifespan of these chips are but I do know that today many of these hyperscalers are still running older generation GPUs in in their data centers. I think I think Google is still running Hopper which is a GPU that came out over three years ago and I think they're fully utilized on it. So certainly I think there is a case to be made that you know the depreciation schedule of these hyperscalers isn't overly aggressive. But I think that's going to be clearly a topic that the Jensen's you haven't done any modeling on that John. I mean that to me what you know three years is one thing that's still within the window. Question is is it six or seven years. Yeah I think that's that's kind of a concern more on the hyperscaler side. I think it's been less of an issue with with with NVIDIA. But I can tell you with NVIDIA demand is still really strong. That cost that customers are clamoring for the latest generation GPU. Oh exactly. Oh no. This is this is all good for NVIDIA. But but potentially tragic for the longer term math. In fact you do need to upgrade every three or four years. Great for NVIDIA but harder to make the economics all this continue to work. And for some hyperscalers. Yeah. Given given the demand that we're seeing out there I think they are absolutely still using these older generation chips. I think it's certainly possible that they could have GPUs in their data centers that are still being utilized as five or six years out. I think that's certainly a possibility.

The Epstein files bill is expected to reach President Donald Trump's desk for his signature on Wednesday (November 19). CBS News' Taurean Small reports.

Washington

Trump set to sign bill to release Epstein files

Microsoft and Nvidia plan to invest a combined $15 billion into Anthropic. Bloomberg Intelligence's Mandeep Singh discusses why two of the biggest backers of OpenAI are putting money into its rival.

San Francisco

Microsoft, Nvidia to invest up to $15 billion in Anthropic

Hamas rejects the US-drafted UN resolution for a Gaza ceasefire and international stabilisation force.

New York

UN Security Council vote: Hamas rejects Gaza 'peace resolution'

President Trump welcomed Saudi Crown Prince Mohammed Bin Salman to the White House on Tuesday. The two leaders announced a boost in Saudi Arabia's planned investment in the U.S., from $600 billion to nearly $1 trillion.

Trump, MBS announce boost in Saudi investment to U.S.

President Donald Trump hosted Crown Prince Mohammed bin Salman at the White House on Tuesday, with the Saudi de facto ruler seeking to further rehabilitate his global image after the 2018 killing of U.S.-based journalist Jamal Khashoggi and deepen ties with Washington.

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The Senate, through the process of unanimous consent, agreed to send the bill to President Trump's desk for his signature without any amendments once it's received from the House.

Senate to send Epstein files bill to Trump's desk for signature

The House has approved a bill that would require the Justice Department to release files related to convicted sex offender Jeffrey Epstein. The bill, which received bipartisan support, now awaits consideration in the Senate.

House passes bill that would force release of Jeffrey Epstein files

Hopes for a strong G20 declaration on climate and debt relief are slim as South Africa readies to host the summit from Saturday (November 22). Global tensions and a boycott by the United States threaten to overshadow the gathering.

Johannesburg

South Africa readies for G20 despite U.S. boycott

At least one person is dead and three others were injured after an attack in the West Bank, Israeli forces said. Meanwhile, the United Nations Security Council backed the U.S. plan for Gaza. CBS News' Ramy Inocencio has the latest.

Jerusalem

Middle East Conflict

Tensions escalate as U.N. Security Council backs Trump's plan for Gaza

U.S. President Donald Trump will host Saudi Crown Prince Mohammed bin Salman at the White House, his first visit since Washington Post journalist Jamal Khashoggi was killed in 2018. The crown prince has denied any involvement.

Saudi Crown Prince Mohammed bin Salman visiting White House

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Trump says he will sell F-35 jets to Saudi Arabia

The U.K. government has proposed a major overhaul of its asylum rules, making it easier to deport people and quadruple the amount of time it takes to become a permanent resident.

London

U.K. introduces tougher laws for asylum seekers

In a blistering opinion, a federal judge in Virginia accused Justice Department prosecutor Lindsay Halligan of misconduct, saying there was a "disturbing pattern of profound investigative missteps."

Virginia

DOJ accused of 'profound investigative missteps' in Comey case

The United Nations Security Council has voted to adopt a U.S. resolution outlining President Trump's peace plan for post-war Gaza. CBS News senior foreign correspondent Holly Williams has the details.

U.N. Security Council adopts U.S. resolution on Gaza plan

The aircraft carrier USS Gerald Ford has arrived in the Caribbean, giving the United States the ability to strike inside Venezuela if President Trump gives the order. The U.S. has also sent thousands of troops to the region.

Trump 'won't rule out' sending troops to Venezuela amid rising tensions

President Trump now says Republicans should vote to release all of the files related to the federal investigation into convicted sex offender Jeffrey Epstein. CBS News' Olivia Rinaldi and Nikole Killion have the latest on what could happen next.

Trump's Epstein files reversal comes amid pressure from allies

Poland's Prime Minister Donald Tusk has called an explosion on a railway line “an unprecedented act of sabotage.” Donald Tusk did not say who he believed had carried out the attack, but a government minister said "foreign intelligence agencies" were responsible.

Warsaw

Railway line blast in Poland ‘unprecedented act of sabotage’

Ukrainian President Zelenskyy signed a landmark deal in Paris on Monday to buy 100 Rafale jets, drones, and air defense systems from France.

Paris

Ukraine signs deal with France for jets, air defense systems

The Federal Aviation Administration ended mandated cuts in domestic flights at 40 major U.S. airports, easing restrictions that had been imposed over air traffic control concerns during the federal shutdown.

FAA ends mandated cuts in domestic U.S. flights

Israeli Prime Minister Benjamin Netanyahu vowed to oppose any attempt to establish a Palestinian state, a day before the UN Security Council will vote on a U.S.-drafted resolution on Gaza that leaves the door open to Palestinian independence.

Tel Aviv-Yafo

Netanyahu insists there can be no Palestinian state ahead of UN vote

A Bangladesh court sentenced ousted Prime Minister Sheikh Hasina to death for crimes against humanity on Monday (November 17), concluding a months-long trial that found her guilty of ordering a deadly crackdown on a student-led uprising last year.

Dhaka

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President Donald Trump now appears to support the release of all Jeffrey Epstein files as the House of Representatives readies for a vote on the matter. CBS News' Natalie Brand reports.

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In the latest round of the Trump administration's sweeping immigration raids, federal agents arrested 81 people in Charlotte, North Carolina, on Saturday alone. In videos posted online, some who were detained said they do have legal status.

Charlotte

ICE detains dozens in Charlotte

If the bill passes, the U.S. Justice Department would be required to release all files and communications related to Epstein, as well as details about the investigation into his death in federal prison.

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Chile heads to a December runoff after Sunday's presidential vote left no clear winner. Leftist Jeannette Jara and far-right José Antonio Kast will now face off in a race dominated by concerns over crime and migration.

Santiago

Chile leftists advance to next month's presidential runoff

Construction work of a concrete wall continued on the Israeli side of southern border with Lebanon, despite the Lebanese presidency's threat to complain to the U.N. Security Council over the wall's extension into Lebanese territory.

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Venezuelan President Nicolas Maduro slammed planned joint military exercises by the United States and its ally Trinidad and Tobago as "irresponsible," with Washington increasing its armed presence in the Caribbean.

Caracas

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Despite U.S. President Donald Trump's repeated attempts to kill the effort to release federal files related to Jeffrey Epstein, House Republican leaders are planning to hold a vote this week on legislation to force the issue.

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President Trump says he has "sort of made up my mind" on whether to take military action in Venezuela. The comments come as America's largest aircraft carrier, the Ford, and other U.S. forces move within striking distance of the country. Charlie D'Agata has new details.

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President Trump says he will no longer support onetime close ally and Georgia congresswoman Marjorie Taylor Greene amid the ongoing fallout over the Epstein files. Willie James Inman reports.

Nvidia set to report Q3 results

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