☕ Nvidia just silenced all doubters

Howdy! 👋 

I've wrapped up my time at the MoneyShow and now I'm about to hit the road. 

As always, I had a great time, and it was fabulous to see so many familiar faces and OBAers. 

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Now onto what is on everyone's minds this morning. 

I've been pretty clear that I was expecting Team Jensen to put up a world class report, and I was certainly not disappointed. 

Nvidia knocked the leather off the ball just as I thought would be the case on Monday when the super smart Ashley Webster asked me what I'm expecting ahead of earnings.  

I said I was expecting close to 100% growth on both top line (revenue) and bottom line (EPS). 

Turns out that was even too conservative! 

Not a bad problem to have. 

The numbers speak for themselves: 

• Revenue: $96.2 billion, up 106% year-over-year — the highest quarterly revenue ever 

• Adjusted EPS: $2.22, up 111.4% year-over-year 

• Data center revenue: $89.0 billion, up 117% year-over-year — another record 

The number I was watching closely was margins. 

When a company grows this fast, margins are usually the first thing to crack. Discounting to move volume, supply chain strain, pricing pressure from customers with leverage. That's the tell that growth is coming at a cost. 

I was looking for 75%. Nvidia put up exactly that. 

MyPOV: Nvidia is now running at a pace that means it clears over $1 billion a day — joining a select handful of companies including Walmart and Apple. 

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When Jensen Huang said "AI has reached its inflection point" it got my attention. 

He followed it up by saying demand is accelerating, not just strong — at this scale, with a golden age of new AI labs, open models, and physical AI all running full steam, plus guidance for ~70% revenue growth next year while still being supply-constrained. 

Nvidia remains a lasting monster and, in my view, still an incredibly undervalued investment. 

So now what? 

The stock is up 7% as I write this. That shouldn't surprise you if you've been reading along. 

“The playbook lately has been to drop prices hard after great numbers, but the investing public is beginning to figure out that game. So I won't be surprised if the merry marauders take prices down ahead of time on the next report just to switch the game up… and buy bigger profit potential.” 

Of course, the "yeah but" and bubble babbler crowds are already out in full force. 

Not to mention the valuation verdicts. 

Here's what I want to be clear about. 

Anyone applying the same modern accounting rules that work on a company like Coca-Cola to a company like Nvidia may as well be using a ruler to weigh something. 

I urge you to take what the naysayers have to say with a whole mine of salt. 

They have been wrong every time and have missed out on ~14,719.87% of returns in the past decade. Which is a ~46.6X advantage to what the SPY — a popular S&P 500 ETF — has returned in that same time frame. 

Two things are clear imho: 

1. The 6th wave that I speak so regularly about continues to play out with physical AI as the next big jump — Nvidia plays an integral role in that.
2. Nvidia is still undervalued and my only fear is not owning enough shares!

Bottom Line 

Buy the Best, Ignore the Rest® — follow the fundamentals and the profits take care of themselves. 

As always, let's MAKE it a great day! 

You got this — I promise. 

Keith 😀