NVIDIA Corporation (NVDA)

There's a secular tailwind for this tech spending. The die is cast. It will keep going for the time being. The best sub-sector in the S&P today are semis and NVDA is the 7th-best performer. The spending is happening. NVDA is the default play.

The big question is whether to look for an entry point and whether to hang on or take some profits. Insiders are finally deciding to to sell. 46% of revenue comes from 4 companies which have ramped up spending on AI - will they be able to sustain the spending. The new Blackwell chip is 4 times more powerful. At some point will customers be satisfied with chips as they are and not want even better ones.

The PE has fallen and is now appropriately priced.

The semis will become cyclical. Future EPS growth is expected to be 28%. He doesn't see that growth in 2028, though in 2025. Why? Customers can't get enough of NVDA's AI chips. So, customers are now over-ordering, and eventually supply will catch up, and orders will be cut back. But for the next few quarters, this won't happen to NVDA. NVDA is absolutely a buy now.

Very strong performance the past year. Will continue to hold. Strongest tech stack in A.I. field. Would recommend buying stock when there is a pullback. No other competitors. Expecting further growth with new products. 

Habits die hard. A lot of people are very committed to large-cap tech. He is less committed. He owned NVDA from $14, and came out of it a couple of months ago because there are other things to do.

It's been in the sweet spot for a long time due to videogames, cloud and now AI, for which they have a great product. They blew away their numbers last quarter, and raised expectations for the future. Other companies will develop products to compete, but not for a while. NVDA's growth in the past 2 years is incredible. But now, it's not cheap. Everybody needs AI infrastructure and NVDA is the only place to sell it. But the problem is the volatility and the massive expectations.

Happy to own a big holding and was not thrown by yesterday's report, which was good, or downward stock move. The forward PE is only 40x and growing earnings at 35% annually. Excellent. No, this growth won't last forever, but for the next few quarters, their order book is strong. He may trim at a higher PE.

It was down yesterday post-earnings only because expectations were so high. There's nothing wrong with NVDA. Demand from hyperscalers is up 40% this year. NVDA was up 151% before the report, which was good as was guidance.

They had a wonderful earnings call yesterday. Their torrid growth won't last forever, but it's the best performer of the last 2 years. With CEO Huang at the helm for so long, NVDA will continue to run far. NVDA is over-discussed though. Don't sell it. They keep executing in revenues and sales, raising guidance.

No, market didn't break. Expectations were on both sides of the option plays. Market is content with what it saw. Everyone wants to see better than just a beat, wants to see a strong beat. The concern is do we see deceleration in growth momentum at some point. We'll see a bit more growth out of NVDA before concerns about it stalling.

The fact that we got out of that initial jolt after the release suggests that this market has some strength and confidence behind it. This could play to a number of factors such as where interest rates and policy are going. Markets are in decent shape right now.

The report will set the tone for overall market risk for the coming days. It could fall due to extreme bullishness. Can other areas pick up inflows from the money market and bonds. AI stocks are rattled now give SMCI, down 26%, with some skepticism. If NVDA doesn't miss, it goes higher. He wants to hear if there's strong demand for the H200 chip or any missteps with Blackwell.

King of the infrastructure, and many reasons for that. By 2027, revenue should grow to $196B from $24B in 2022. They led with the chip, fiddled with the building and packaging of it. Over the last year, they've really incorporated a lot of software into the chip. That makes it even more difficult for the likes of AMD or INTC to catch up.

Stock's no more expensive then it was back in 2022. If earnings continue to grow, interest rates continue to come down, and the macro environment is still positive, you have to own it.

He will focus on what happens with the aftermath of the report. If NVDA misses, it will drag all AI and tech stocks down, but will there be appetite to then buy or keep selling? More likely the street will take profits and the focus will shift to whether the Fed cuts 25 or 50 basis point in interest rates.

Options are spot-on: shares will swing 10% either way after the report. A year, full-year revenues were 13% and now it's expected at 28%. There will be an immediate move off the print, but the durable move will be on the earnings call. She expects incredible numbers. If they raise guidance, big tech names will continue to spend on their chips.