Nvidia is setting records ahead of its Thursday afternoon earnings report. One market watcher says it's a sign of what's to come.
"There's an old trading rule: When a stock makes all-time highs, pay attention," Boris Schlossberg, managing director of FX strategy at BK Asset Management, told CNBC's "Trading Nation" on Wednesday. "It usually means big, good things ahead, and I think that's true with Nvidia."
The semiconductor stock set an all-time high in Thursday's trading for its second day in a row. Before these back-to-back record-breaking sessions, its shares had last seen new highs in mid-March.
Its positioning in certain breakout tech areas should help it continue to reach never-before-seen levels, Schlossberg said.
It "has just made a tremendous pivot away from gaming to essentially becoming the platform for AI and cloud computing, which is really the future of all computing," the trader said.
"It's going to be involved in financial fraud [prevention], in taking care of customer suggestions, in academic research," he added. "Every possible venue of computing going forward, Nvidia is going to be a piece of that because they're running the chips that run the foundation for all of these applications."