🔥 3 Bullish Signals from NVIDIA’s Earnings Call Last Night — and why the AI trade is far from over.
Most CEOs play it safe on earnings calls. Jensen Huang did the opposite. Here are the 3 comments everyone in tech, AI, and markets should pay attention to: 🚀 1. “No AI Bubble” — Just Three Structural Shifts 1️⃣ The migration from CPU ➝ accelerated computing 2️⃣ Generative AI hitting a tipping point across every workload 3️⃣ The rise of agentic AI All three require massive infrastructure builds. And the kicker? Inference demand is exploding — and is set to become a major revenue engine for NVIDIA. 💰 2. “Funding Is NOT the Problem” Worried customers are running out of capital? NVIDIA is not. Hyperscalers are already monetizing AI, sovereign buying is ramping, and agentic AI opens entirely new revenue pools. Translation: the money is there, and it's accelerating. 🧠 3. “The Ecosystem Is the Moat” This one flew under the radar but is HUGE. The CFO pointed out: A100 GPUs from SIX years ago are still fully utilized — thanks to the Kuda software stack. It means: Longer useful life for GPUs Better ROI on datacenter capex A deeper, stickier NVIDIA ecosystem Plus, NVIDIA is expanding partnerships across enterprise platforms and top AI developers. 📈 Bottom Line This was a monster print: ✔ Strong results ✔ Confident guidance ✔ Constructive multi-year outlook After-hours? NVIDIA popped ~5%, and AI-related names rallied across the board. 📊 Valuation Check (Yes, Really) NVIDIA’s stock has actually de-rated lately — earnings kept growing, the share price didn’t. And now with Q4 guidance out, investors will pivot to 2026–2027. Here’s the jaw-dropper: ➡️ Using 2027 FactSet consensus, NVIDIA trades at 21× P/E. Twenty. One. Times. Earnings. For the company powering the entire AI revolution. 🔮 The Broader Message The AI trade is alive. Healthy. And nowhere near done.
🔥 In Case You Missed It… Here's the latest update by Atlanta Fed GDPNow forecast?
👉 US Q3 real GDP: +4.2% Yes, you read that right. The US economy isn’t just growing — it’s running HOT. 🚀 And Here’s the Wild Part… Policy is about to get even more supportive: ✔ QT likely ending ✔ Rate cuts expected next year (or maybe in December but that looks less and less likely...) ✔ Fiscal stimulus coming (think: checks, tax cuts, more spending) ✔ Looser financial regulation to expand bank lending This is the opposite of tightening. This is fuel on an already burning fire.
➡️ Over the past eleven releases since ChatGPT launched, NVDA’s massive 10x rally hasn’t come from earnings-day pops:
Day-after and week-after moves have typically lagged, while the month before earnings has usually been the strong stretch. ➡️This quarter breaks that pattern, NVDA is flat heading into results, with recent earnings cycles showing weaker immediate reactions and stronger rallies later in the quarter. Source: The Market Ear, DB
$NVDA NVIDIA Data Center literally off the charts.
Source: App Economy Insights
Is this really sustainable? We will find out more later today
Source: Markets & Mayhem @Mayhem4Markets
Nvidia $NVDA in danger of closing below its 100-day moving average for the first time since May
Source: Barchart
Reserves are in deep "scarce" territory with reverses zero.
But reserves would go back to "ample" once $300BN in Treasury cash is drained in a few days. Source: zerohedge
Late November is historically a strong time of the year. Is this year going to be different?
Source: Ryan Detrick, CMT @RyanDetrick
