Well stock friends, today is the day. NVDA Earnings. This should be a pretty good indicator of the strength and direction of AI at this moment in time. Will it be the push needed for the next leg up or just another sell the news event. I have to agree with W, based on every ER from recent history it will be a sell the news reaction. The expectations are sky high and even beats aren't good enough anymore.
So true TireSmoke. It is just about impossible for NVDA to meet the crazy expectations. BUT.....at the open today I did add about 60 shares in one of the accounts that I manage. Long term shares so I dont care about the current price where I bought those shares. At least it opened RED so I got a slight discount.
Having lived through the DOT-COM boom and bust......where we are today is NOTHING like that era. It is a LAZY comparison to make and I bet that many writing this BS are too young to have lived and invested in that era. It’s 1995 for AI https://www.riskhedge.com/outplacem...ntent=RH144OP806&utm_medium=ED&utm_source=rcm (BOLD is my opinion OR what I consider important content) "Artificial intelligence (AI) stocks are flying again. Nvidia (NVDA) has jumped 110% since April… GE Vernova (GEV) has soared 147%... And Palantir Technologies (PLTR) has surged 160%. As usual, the big moves have many so-called “experts” warning, “AI is a bubble.” Some are even comparing today’s AI boom to the dot-com crash of 2000. They couldn’t be more wrong. Let me show you why the AI bull market has plenty of steam left… and how we’ll profit from the next phase. It’s 1995 for AI. Back in 1995, web browsing pioneer Netscape went public. Its stock soared +500% in a few months and lit the spark for the internet age. But here’s what most folks forget. The real investing mania didn’t arrive until years later. Amazon (AMZN) didn’t IPO until 1997. Google (GOOG) wasn’t founded until 1998. And Pets.com didn’t become a punchline until 1999. Most important, the Nasdaq soared 8X from 1995 to 2000. Could the Nasdaq gain over 700% again from 2025–2030? That’s a tall order, and it would require a bubble forming. But we’re years away from having to worry about that. Your #1 priority right now should be buying the best individual AI stocks—the ones that will give 1995 internet stocks a run for their money. Like the mid-'90s, we’re still in the infrastructure phase. Back then, billions flowed into laying fiber-optic cables, building data centers, and wiring America for broadband. That infrastructure spending is what set the stage for Amazon, Google, and the rest of the dot-com giants to flourish. Today, the same playbook is unfolding in AI—only bigger. The richest corporations in history are plowing unprecedented billions into infrastructure that powers AI. Amazon will spend $100 billion on data centers this year. Microsoft (MSFT) is set to drop nearly $80 billion. Google and Meta Platforms (META) aren’t far behind. Big tech is locked in an arms race to see who can build a “digital god” first. And let’s not forget, the government has its own AI arms race to win… Both the current and previous administrations have made it clear: the US must “win the AI race.” What exactly does that mean? It boils down to one thing: a firehose of government funding aimed at the AI sector. They call it “sovereign AI.” The CHIPS Act alone will plow some $280 billion toward semiconductors and supercomputing. Here in Abu Dhabi, the government is also pouring tens of billions of dollars into AI data centers. Saudi is doing the same thing. This is only the beginning. Every country will want to be an “AI superpower.” At the same time, President Trump’s AI Action Plan is tearing down red tape, fast-tracking data center permits, and warning states that noncompliance could cost them federal funding. That’s the beauty of investing in AI today. Both the government and corporations are plowing unprecedented amounts of money into this sector. Drink from that firehose. Spending on AI infrastructure could 5X in the future. At the peak of the railroad boom in the 1800s, the US government spent the equivalent of 6% of GDP laying down tracks. That buildout ignited the American Gilded Age and the fortunes that followed. Source: Paul Kedrosky Today, AI spending sits at just 1.2% of GDP—but that only includes data center spending. What it doesn’t include is networking gear, cooling equipment, storage systems… and upgrading the power grid to handle AI’s insatiable demand for energy. By our calculation, the US could end up spending up to $1.8 trillion annually on AI infrastructure, or about 6.3% of GDP. Here’s when to exit AI stocks. I call it the “IPO curse.” I’m struck by how many times the leading company in a hot sector has gone public and marked “the top”… The AOL Time Warner merger in 2000—still the largest ever—culminated in the dot-com bust. The Blackstone (BX) IPO in 2007 coincided with the top for financial markets and preceded the Great Recession. Glencore’s (GLNCY) 2011 listing marked the peak in the commodity super-cycle. In short: I’m waiting for a high-profile AI firm like OpenAI or Anthropic to go public before declaring the AI bull market over. But I see no indication of that happening anytime soon. Of course, you have to buy the right AI stocks. Here’s how to profit from this stage of the AI boom... If we go back to our railroad example from earlier, history shows the biggest gains went to the companies benefiting from the railroad boom—not the ones laying the tracks. Why? Because the track layers spent billions on railroad infrastructure with razor-thin margins… while the businesses riding the rails slashed costs, scaled faster, and improved their profits. The modern equivalent is big tech building the digital railway tracks upon which somebody else’s trains will run. We want to own the companies building shiny new trains to take advantage of the AI age, not those building the railways." MY COMMENT Regardless of corrections or even bear markets......the AI boom is just in the early stages. How and where we go from here is anyone's bet.....but....one thing I am confident of is that the BIG CAP tech monster companies WILL be leaders and beneficiaries of the AI boom. That is where I have "my" money......as usual.
To continue the above. Is this 1996 or 1999? https://awealthofcommonsense.com/2025/08/is-this-1996-or-1999/ (BOLD is my opinion OR what I consider important content) "Alan Greenspan’s infamous irrational exuberance speech is a classic example of how crazy markets can always get crazier. This was the actual text from his speech at a policy dinner in December of 1996: Clearly, sustained low inflation implies less uncertainty about the future, and lower risk premiums imply higher prices of stocks and other earning assets. We can see that in the inverse relationship exhibited by price/earnings ratios and the rate of inflation in the past. But how do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions as they have in Japan over the past decade? And how do we factor that assessment into monetary policy? We as central bankers need not be concerned if a collapsing financial asset bubble does not threaten to impair the real economy, its production, jobs, and price stability. Indeed, the sharp stock market break of 1987 had few negative consequences for the economy. But we should not underestimate or become complacent about the complexity of the interactions of asset markets and the economy. Thus, evaluating shifts in balance sheets generally, and in asset prices particularly, must be an integral part of the development of monetary policy. The former Fed chair wasn’t pounding the table that the stock market was a bubble but he was certainly implying something was afoot. From 1980 through Greenspan’s speech at the tail end of 1996, the S&P 500 was up more than 1,200% in total or a blistering 16.5% return on an annual basis. Valuations were up, up and away. The Netscape IPO occurred a year earlier. Things felt very toppy. That didn’t matter. The market took off like a rocket ship following Greenspan’s speech: From the time of Greenspan’s speech through the rest of the decade the S&P would more than double, good enough for an annualized return of nearly 26% through the end of 1999. The market was up 33% in 1997, 28% in 1998 and another 21% in 1999.1 The dot-com bubble finally burst in the spring of 2000, cutting the S&P 500 in half along with a drawdown of more than 80% in the Nasdaq. Some people are starting to wonder if we’re in a similar situation now. No two markets are ever the same. The companies in the dot-com bubble didn’t make any money. They didn’t have the ridiculous profit margins tech stocks have today. But there are some similarities. The AI capex spending binge is eerily similar to the telecomm buildout that occurred in the 1990s. Speculative activity is all over the place too — SPACs, meme stocks, IPOs, leverage, story stocks, high valuations, deregulation, etc. And the two bull markets have taken on a similar trajectory over time: Many people are trying to figure out whether this is the early stages of a bubble or the end of the road. Investing would be a lot easier if there were a simple way to predict these types of markets. Unfortunately, there’s not. No one can predict when human nature will take things too far or when it will stop on a dime. The pendulum always swings; we just don’t know how far in either direction. Forecasting the market in the short run is impossible. Investing for the long run is the best remedy for the uncertainties of the short run. If you had invested in the S&P 500 following Greenspan’s speech in December of 1996 and held on until today, you would be up just shy of 10% per year. You would have had to live through two 50% crashes in the next dozen years or so, 9/11, multiple wars, oil going to $150/barrel then negative, the pandemic, 40-year high inflation, the 2022 bear market and about a dozen other run-of-the-mill corrections. But even after all that bad stuff you still would have more or less gotten the market’s long-term annual return. That’s not bad. If you had invested at the peak of the market just before the dot-com bubble burst at the end of 1999, you would be up a little more than 8% per year. That’s not a terrible outcome considering all of the bad stuff you would have had to live through plus that was the most expensive valuations the U.S. stock market has ever seen. Obviously, no one actually invests like that (except Bob). People don’t put all of their money to work all at once. Most people invest in 1996, 1999, 2007, 2009, 2020 and everything in-between. One of the best features of dollar cost averaging into the market over time is that it allows you diversify across time, valuation level and market environment. If you’re averaging into the market over time you should welcome volatility. If you’re fully invested, you must be willing to accept volatility or diversify your assets to dampen whatever pain it may cause. These things are far easier and more helpful than trying to predict the beginning or end of a financial asset bubble." MY COMMENT YES.....it is as usual....all about long term focus and long term investing. It is also ALL about fundamental business results and choosing the greatest companies with the greatest PROBABILITY for long term success. It is NOT about guessing market direction or market changing events or other big happenings. It is NOT about forecasting the market direction.
AND....of course....regarding the above. Markets Don’t Care About Your Feelings (or Your Politics) https://trendlabs.com/markets-dont-care-about-your-feelings-or-your-politics/ (BOLD is my opinion OR what I consider important content) "As investors, we have to separate what we want from what we have. As the old saying goes, “You have to play the cards you’re dealt.” In other words, some people want to invest in a world they wish we lived in, or in the world they think we should be living in. But the only way to make money is to trade and invest in the market that actually exists. This is hard for some people. Good. That just presents more opportunities for the rest of us. Virtue Signaling To Zero The delusion is real. “Markets are only up because of the Fed. That’s why I’m bravely sitting out, losing money on purpose – someone has to hold the moral high ground.” I wish I were exaggerating. I’m not. Here’s the thing: Some investors can’t separate politics from portfolios. They don’t like the president, they decided he’d be bad for markets, and they swore off stocks after the election, maybe after tariff talks this spring. And what happened? They missed one of the strongest rallies in history. That’s not discipline. That’s weakness. They let personal beliefs override price action and data. And, in this game, that’s fatal. How many investors get upset when they see the total U.S. debt numbers exceeding $37 trillion? These might look like scary numbers. But had you used this information to get out of the stock market, that makes you just as bad as all those short-sellers and non-participants who hated Trump. How about valuations? Here’s a chart that’s been making the rounds this week, attempting to show U.S. stocks are too expensive to own. Believing that has cost investors a ton of money: It’s not that the market doesn’t care about anything, despite what some frustrated folks like to say. It’s that what the market cares about is far more important than what you think it should care about. For example, the market isn’t interested in your opinion of Fed policy – it reacts to its own set of priorities. Worry About Yourself The way I was brought up is to be a gift to other people. “Men for Others” was actually my high school’s motto. It’s more than just a slogan, it’s a philosophy and a way of life. I appreciate that more today than I did when I was a kid. I get it much more now, and I like to live my life that way. But none of that is true in the market. In the market, it’s everyone for themselves. That’s a tough adjustment for many of us, since in most other areas of life we’ve been taught the exact opposite. The truth is, what other people do with their money is not your problem. This is where you focus on what you’re doing. How you’re helping your clients, or your family. This is a selfish endeavor. Don’t forget that. I like to think of it as if I’m watching an obese person sift through the cookie aisle at the grocery store. Are you going to stand there all day trying to stop them? How about the folks taking a few shots of whiskey at the dive bar on a Tuesday at 11 a.m. before heading back to work? Are you going to stop them? No. When you’re at the grocery store, get your meats, get your veggies, and get home to your family and cook them a nice meal. Same thing with the alcoholic. What are you going to do? Get your coffee at the place next door to that dive bar on Lexington Avenue in New York City, and get back to work. Don’t worry that you just watched your colleague walk into the bar, and without him even asking, seeing the bartender pour him three shots and hand him a beer, as if they’d done that every day for years… Your Job Is To Make Money The bottom line is this. Our only job as traders and investors is to make a profit. It doesn’t matter if the company makes computer chips or potato chips. It could be Oil & Gas or Solar power. Crypto or Bond ETFs. Who cares? The only way we get paid around here is to sell things at higher prices than where we buy them. So many people forget that. But it’s our only job. Go do it to the best of your abilities. And don’t worry about what other people do with their money. That’s none of your business. Just like it’s nobody’s business what you do with your money. Stay sharp," MY COMMENT AMEN. As an investor it is......ALL ABOUT YOU. It is your money, it is your life. What or why anyone else is doing something is not your problem or worry. Do what is right for......"you". Avoid the safety of the herd....if it is not right for you. Avoid peer pressure.....even though being with those peers feels so safe and right. In the end....as investors and in some other regards.....we are ALL on our own. It takes.....GUTS. BUT....this does not mean you avoid being rational or realistic. It is STILL all about PROBABILITY and your ability to see that PROBABILITY.
MILD....but green across the board right now in the markets. Of course....nothing that happens today really matters. We start from scratch after the NVDA earnings tonight after the close.
Here is the day so far today. S&P 500 inches higher as traders brace for Nvidia earnings https://www.cnbc.com/2025/08/26/stock-market-today-live-updates.html (BOLD is my opinion OR what I consider important content) "The S&P 500 ticked higher on Wednesday as investors turn their eyes to Nvidia earnings, which could be a make-or-break moment for the bull market. The broad market S&P 500 rose 0.2%. Nvidia, which accounts for roughly 8% of the S&P 500, has the biggest weight in the broad market index, according to FactSet data. The Nasdaq Composite advanced 0.1%, and the Dow Jones Industrial Average gained 123 points, or 0.3%. The S&P 500 and Nasdaq were kept in check as long-term Treasury yields continued to rise amid concerns around President Donald Trump’s attempts to influence the Federal Reserve toward lower interest rates. The market has been largely looking past Trump’s unprecedented move to fire Fed Governor Lisa Cook from the central bank’s board, with U.S. stocks coming off of a lackluster trading session by ending little changed Tuesday. Some individual names managed strong gains despite the muted action in the broader market. MongoDB popped 32% after the developer data platform topped Wall Street’s expectations. Okta jumped 2% after its quarterly results and full-year forecast beat consensus estimates. Both companies cited the demand coming from companies developing artificial intelligence platforms for the strong results. That bodes well for Nvidia, which releases its financial results after the closing bell on Wednesday. Wall Street has high hopes for Nvidia, which is considered a bellwether in the broader market and a major indicator of AI development. Its earnings could either dampen or propel this year’s rally, particularly as the “Magnificent Seven” looks to recover from last week’s sell-off. The chipmaker has beaten earnings expectations in 11 of past 12 quarterly reports, but the stock has had a downbeat post-earnings reaction four of those times, per FactSet. “I know investors are really anxious and Nvidia has not performed well the last few times it’s reported, but the story arc there remains that it’s one of the most important companies in the world in the middle of the biggest structural change in the world economy,” Tom Lee, head of research and chief investment officer of Fundstrat Capital, told CNBC on Tuesday. “It really wouldn’t change our thesis if the stock reacted poorly.” “I think everyone’s trying to get situational awareness,” he also said. “Like, is this inning one or two, or late innings?” MY COMMENT Of course what matters to NVDA and the markets is not the day after today or next week. It is the next 5-10-15-20 years.
Glad to see this.....since SpaceX is now basically the US space program. I also think that it is extremely important for space to be developed by private business. SpaceX makes comeback with Starship test launch after fiery setbacks https://www.cnbc.com/2025/08/27/spa...tarship-test-launch-after-fiery-setbacks.html "Key Points Elon Musk’s SpaceX has pulled off the launch of the latest Starship prototype in the rocket’s 10th test flight. The Tuesday performance marks a comeback for Starship, after a string of explosive launch attempts earlier in the year. Starship is critical for both NASA’s plans to return astronauts to the Moon and Musk’s ambitions to transport crew to Mars."
ALL my stocks except for PLTR and WMT are currently GREEN. Although NVDA is bouncing back and forth between green and red about every second or two right now. It really does not matter much anyway since the gains and losses in my stocks today are so mild that I am basically FLAT for the day. Lets see if things firm up a bit as the day goes on.....in either direction. At the moment the markets are basically directionless.
STILL.....the same for me as earlier. PLTR and WMT are red. The rest of my stocks are GREEN with NVDA ever so slightly green. Although I do have a tiny gain at this moment. Think I will go do some yard work.....a couple of branches from our green-belt are siting on the top of our fence....so I will go cut them off.
In a little bit here we will find out if I'm eating steak or spam! PLTR is still dragging along. It's a very volatile stock and has a big run this year. Over time we will find out if this is just a little breather or if like the media reports it's completely out of steam and has no place to go but down.
We are eating SPAM. At least once in a while. It is great for sandwiches and as a breakfast meat. Just ask the.....Hawaiians. Sorry....I actually like spam.....so dont bad-mouth spam. Try it some time. BUT.....I like hot dogs and hamburgers also. Of course I also like a good.....medium-end or high-end Filet Mignon.
HERE you go direct from NVDA......without all the media input. NVIDIA Announces Financial Results for Second Quarter Fiscal 2026 https://nvidianews.nvidia.com/news/nvidia-announces-financial-results-for-second-quarter-fiscal-2026 Revenue of $46.7 billion, up 6% from Q1 and up 56% from a year ago Data Center revenue of $41.1 billion, up 5% from Q1 and up 56% from a year ago Blackwell Data Center revenue grew 17% sequentially For the quarter, GAAP and non-GAAP gross margins were 72.4% and 72.7%, respectively. Excluding the $180 million release, non-GAAP gross margin for the quarter would have been 72.3%. For the quarter, GAAP and non-GAAP earnings per diluted share were $1.08 and $1.05, respectively. Excluding the $180 million release and related tax impact, non-GAAP diluted earnings per share for the quarter would have been $1.04. “Blackwell is the AI platform the world has been waiting for, delivering an exceptional generational leap — production of Blackwell Ultra is ramping at full speed, and demand is extraordinary,” said Jensen Huang, founder and CEO of NVIDIA. “NVIDIA NVLink rack-scale computing is revolutionary, arriving just in time as reasoning AI models drive orders-of-magnitude increases in training and inference performance. The AI race is on, and Blackwell is the platform at its center.” During the first half of fiscal 2026, NVIDIA returned $24.3 billion to shareholders in the form of shares repurchased and cash dividends. As of the end of the second quarter, the company had $14.7 billion remaining under its share repurchase authorization. On August 26, 2025, the Board of Directors approved an additional $60.0 billion to the Company’s share repurchase authorization, without expiration. NVIDIA will pay its next quarterly cash dividend of $0.01 per share on October 2, 2025, to all shareholders of record on September 11, 2025.
Here is the media take. Nvidia earnings are out – here are the numbers https://www.cnbc.com/2025/08/27/nvidia-nvda-earnings-report-q2-2026.html "Nvidia reported better-than-expected earnings and revenue on Wednesday, confirming that the company’s data center business remains at the center of an unprecedented buildout of infrastructure for artificial intelligence. Here’s how the company did, compared with estimates from analysts polled by LSEG: Earnings per share: $1.05 adjusted vs. $1.01 estimated Revenue: $46.74 billion vs. $46.06 billion estimated Nvidia said it expects $54 billion in sales in the current quarter, versus LSEG estimates of $53.14 billion."
AND.....of course......as expected. Nvidia stock sinks after data center sales miss forecasts https://finance.yahoo.com/news/nvid...ta-center-sales-miss-forecasts-162719771.html (BOLD is my opinion OR what I consider important content) "Nvidia (NVDA) reported its second quarter earnings after the bell on Wednesday beating on the top and bottom lines, but data center revenue came in just shy of analyst expectations. The company also approved an additional $60 billion in stock buybacks. Nvidia also projected Q3 revenue of $54 billion plus or minus 2%. Expectations were for $53.4 billion. The company's stock price fell more than 3% on the news. Nvidia shares were up 35% year to date and over 40% over the past 12 months as of Wednesday afternoon. In July, the chipmaker became the first company to see its market capitalization top $4 trillion. Nvidia saw adjusted earnings per share (EPS) of $1.05 on revenue of $46.7 billion. Analysts were anticipating adjusted EPS of $1.01 on revenue of $46.2 billion, according to Bloomberg analyst consensus estimates. The company saw adjusted EPS of $0.68 and revenue of $30 billion in the same quarter last year. Nvidia's EPS and revenue growth have moderated over the past few quarters following the massive growth spikes it saw during the onset of the AI craze. The company's data center revenue for Q2 topped out at $41.1 billion. Analysts were expecting $41.2 billion. Segment revenue was $26.2 billion in the prior-year period. Gaming, Nvidia's second largest segment, hit $4.3 billion, above estimates. The report comes after a flurry of moves between the company and the Trump administration, which saw Trump revoke his prior ban on the sale of Nvidia's chips to China but will now require the AI giant to pay the government a 15% cut of sales into the country. Trump initially banned the sale of chips to China in April and dropped the ban in July, adding the 15% fee in August. Trump also announced he will place a 100% tariff on semiconductor shipments into the US unless companies commit to building in the country. Nvidia should be exempt from the tariff. Nvidia is also preparing a new chip for the Chinese market based on its Blackwell architecture, but the company would need to get Trump's approval to sell it in the region. The Chinese government has also come out in recent weeks to warn local companies against using Nvidia's chips, saying they could contain "backdoor" security risks. Nvidia has denied the charge and is working with the Chinese government to address the matter." MY COMMENT HISTORIC and EPIC earnings for any company. As to the single basically.... meeting of expectations for data center revenue......"data center revenue for Q2 topped out at $41.1 billion. Analysts were expecting $41.2 billion".......WHATEVER. Other companies would DIE to have these numbers. "Data Center revenue totaled $41.1 billion, up 5% sequentially and 56% year-over-year, with sales of the company’s Blackwell platform growing 17% from the prior quarter. This was below Wall Street estimates of $41.2 billion." https://www.proactiveinvestors.com/...slip-on-data-center-revenue-miss-1077411.html
A more HONEST take: Nvidia beats on top and bottom lines as data center revenue surges 56% "Key Points Nvidia beat on earnings and revenue for the quarter and issued guidance for the current period that topped estimates. Data center revenue soared 56% from a year earlier to $41.1 billion, accounting for 88% of total sales. Nvidia said there were no sales of H20 processors to China-based customers in the period, but the company benefited from the release of $180 million worth of inventory to a client outside of China." https://www.cnbc.com/2025/08/27/nvidia-nvda-earnings-report-q2-2026.html
MORE TRUTH.....that no one will care about.....as least the traders, AI trading programs, the financial "writing" ("clicking") business, the short sellers, and other speculators. As to the retail investors......they will just buy any dip....as usual. And in the end.....they.....will clean up. AI bellwether Nvidia forecasts Q3 revenue above forecasts https://finance.yahoo.com/news/instant-view-ai-bellwether-nvidia-205054404.html "AI chipmaker Nvidia, the dominating force behind the U.S. stock market rally since 2023, forecast third-quarter revenue above Wall Street estimates on Wednesday. Helped by robust demand for its artificial intelligence chips from cloud providers expanding infrastructure to power generative AI technology, Nvidia expects revenue of $54 billion, plus or minus 2%, in the third quarter. That compared with analysts' average estimate of $53.14 billion, according to data compiled by LSEG."
My preferred view from the one person that knows what they are talking about. Nvidia CEO says AI boom far from over https://finance.yahoo.com/news/nvid...NjkhKeeD921JNsfT7Iwaj_I5aN1VhcSltGk41SkL6KN6I (BOLD is my opinion OR what I consider important content) "SAN FRANCISCO (Reuters) -Nvidia CEO Jensen Huang on Wednesday dismissed concern about an end to a spending boom on artificial intelligence chips, projecting opportunities will expand into a multi-trillion-dollar market over the next five years. Huang sought to reassure investors rattled by indications of slowing growth at the chipmaker at the center of the investment frenzy. Nvidia earlier in the day forecast third-quarter revenue meeting analyst estimates but short of the lofty expectations that have sent its share price up roughly one-third this year. The founder and CEO's bullish outlook contrasts with recent signs of fatigue in AI-focused stocks and comments from industry leaders about overheated investor enthusiasm. "A new industrial revolution has started. The AI race is on," Huang said. "We see $3 trillion to $4 trillion in AI infrastructure spend by the end of the decade." Pushing up the chipmaker's shares are expectations of demand from Big Tech, data center owners known as hyperscalers and China. "The mega caps are the ones propelling a lot of the capex that Nvidia is benefiting from. But obviously Nvidia still is growing, is able to sell," said Matt Orton, head of advisory solutions at Raymond James Investment Management. "If anything, this just highlights that there's a lot of durability to this (AI) trade... The businesses of these hyperscalers can continue to accelerate, and you're not seeing any sort of sign of a slowdown being reflected in the results of Nvidia." While Nvidia shares have outpaced a roughly 10% gain in the broader market, AI-facing stocks have shown signs of fatigue. OpenAI CEO Sam Altman set off alarm bells this month when he said investors may be "overexcited" about AI. On Wednesday, Huang sounded unperturbed. "The more you buy, the more you grow," Huang said, arguing that Nvidia's technological advances allow customers to process increasing amounts of data while using less energy. "The buzz is: everything sold out." Case in point: A customer outside China bought $650 million worth of Nvidia's H20 reduced-capability chip aimed at the Chinese market in the latest quarter, the chipmaker said. Huang based his forecast in part on the $600 billion he expects for data center capital spending this year from major customers such as Microsoft and Amazon. For a data center costing as much as $60 billion, Nvidia can capture about $35 billion, Huang said. Huang's remarks contrast with a tepid third-quarter sales forecast of about $54 billion, slightly ahead of the $53.14 billion average of analyst estimates compiled by LSEG. Nvidia and Huang, however, see little reason for AI chip profit growth to slow as second-quarter net income surpassed the fiscal third-quarter profit of Big Tech peer Apple. The company's high-end Blackwell chips are largely spoken for based on 2026 forecasts from its biggest customers. Its earlier-generation Hopper processors are being snapped up too. "When you have something that is new, and it's growing as fast as it is, and with all of the huge capex announcements from the hyperscalers, it's evidence that we're in the early stages" of the AI boom, said Globalt Investments portfolio manager Thomas Martin." MY COMMENT I love the characterization of $54BILLION in sales projected for the third quarter as......."tepid"......by this writer. Are these people that DUMB? Dont answer that question....it is obvious. The real question is how and why we ever got to a point in business and the markets where we let a bunch of......"analysts".....decide what is good enough for company earnings. These people dont work for the business, they have no clue as to the internals of the company and they certainly do NOT have anything to do with generating any of the profits or income of the business. If they had any real business ability to run or make a business...they would not be working as an...."analyst". Allowing these people to set up what is "expected" is just CRAZY. If the earnings system was rational....the guideline for what is considered GREAT earnings would simply be a comparison to the prior year performance and the prior 2-4 quarters. This is what really counts.....a great growth curve....by the actual business.....compared to the last year and the last 2-4 quarters. In other words real numbers not fantasy projection numbers. Unfortunately we have allowed these "analysts" to game the earnings system with their biased and irrational estimates and expectations.......for the big banks, brokers, and others insiders that they work for. The ONLY thing that I see as important and TRUST is the expectations and projections and opinions of Huang. That is where I am putting my money. WELL....not putting it....it is already there.
