At this point, calling Nvidia’s earnings “impressive” feels like an understatement…
It seems like every quarter – the AI-chip juggernaut blows past expectations – and this time was no different.
Investors were already expecting big numbers…
But Nvidia still managed to blow them out of the water – and in this market – that’s really saying something.
The company is riding the AI wave like Kelly Slater in his prime…
Setting the standard for high-performance computing while proving that demand for its AI chips isn’t just strong – it’s off the charts.
The big question now isn’t whether Nvidia will keep growing…
But whether it can maintain its blistering pace long enough to justify its sky-high valuation.
Will they be able to do it?
Does it have the staying power that some analysts believe it does?
Well, that’s only something time can tell us – but if its past can in ANY way predict its future – this is just the beginning.
Let’s take a look at how big this company’s earnings were to turn so many heads.
Nvidia’s (NVDA) latest results show just how unstoppable it is right now.
The company raked in 3% more revenue than analysts predicted last quarter – and profits beat expectations by 6%.
A big chunk of that success comes from its new Blackwell AI chips – which Nvidia has called nothing short of “amazing” … and for good reason: these game-changing processors contributed a whopping $11 billion to the company’s $39 billion in total revenue last quarter.
And it doesn’t look like Nvidia’s slowing down anytime soon…
The company is now forecasting $42 billion in revenue for the current quarter.
Sure, those Blackwell chips will drag gross margins down a little more than expected – but even with that dip – Nvidia’s overall profit could still come in higher than predicted…
As long as everything else holds steady.
You see, Nvidia is expensive by almost every valuation metric…
But like first-class flights or a hand-tailored suit – it’s a price investors are willing to pay… as long as the company keeps delivering.
So far, so good…
But here’s the catch: Nvidia needs to grow by at least 30% annually for the next decade to justify its current stock price.
Any hint that it might slow down? And you can expect a brutal selloff.
And speaking of risks – investors have two big worries right now.
First, DeepSeek, an AI firm working on more efficient AI models – could reduce the number of chips needed in the industry.
But there’s a flip side: If cheaper, more efficient models lead to wider AI adoption – Nvidia could actually benefit from an even bigger overall market.
And second – there are whispers that Microsoft (MSFT) may be scaling back its AI data center spending.
If Big Tech starts tightening its AI budgets – that could slow demand for Nvidia’s high-end chips.
Then again, Microsoft might just be shifting its spending – potentially outsourcing to Oracle’s (ORCL) data centers instead of building its own.
So, where does that leave us?
Nvidia’s still the king of AI chips. Period.
But it has no room for missteps.
Investors are watching every move, and if the company’s growth slows – even a little – things could get ugly fast.
We’ve seen how quickly investors can turn on stocks…
We’ve seen bloodbaths for less than missing revenue or growth expectations – and if you think that Nvidia isn’t aware of this fact – you’re doing yourself a disservice.
For now, Nvidia is going to be in the chip driver’s seat for the foreseeable future.
With the ball in its court – it has all the control it needs.
But the coolest thing about the markets is: there’s always another company coming up that is willing to step in if Nvidia starts falling off.
And that’s where GorillaTrades comes in…
We’re not just looking at the “sure things” – we’re looking at the stocks that have the best chance to hand profits over to our members.
The only way we can ensure we’re giving GorillaTrades members that chance is to follow the data.
Smart investors don’t guess – they follow the data…
And that’s exactly what GorillaTrades does best.
We cut through the noise, track the numbers and find the real opportunities before the market catches on…
And we’d love to have you along for the ride on the next round of potential profit plays – but you need to get in now before those recommendations go out.
So please, consider becoming a member today if you want to stay ahead of the curve.
Regardless of what you choose, we’re always here if you need us…
And keep your eye on Nvidia – it’s always worth watching.”In investing, what is comfortable is rarely profitable.” – Robert Arnott
