NVIDIA Corporation (NVDA)

Demand remains insatiable. They delivered an excellent quarter, far exceeding expectations. Trades at 39x PE and is growing dramatically at 55% revenue growth. If so, then next year EPS growth would be 61%. Is still margin expansion. People are starting to buy chips from Google and Broadcom, which may replace Nvidia's, so this could reduce NVDA's chip prices. Those chip-buyers have to see revenues from using those chips, though.

Markets and Bitcoin were down today. If market leader Nvidia heads higher, so will stocks, but if Bitcoin continues to fall, so will stocks. Nvidia's deal with Synopsys could be a much stickier and predictable business. Wall Street loves business-to-business like this deal which gives NVDA new momentum.

It has underperformed the Mag 7 of late, but over the past 3 years, GOOG is up 1,000% (Google only 250%). The stock is taking a breather like it did last year. Also, their earnings have grown as fast as the stock. We'll probably enter a period where $180-200 is a peak. She has January calls at $200, and is happy to sell calls right now.

Prefers Alphabet to Nvidia and is a bigger holding for him. Eventually, there will be competition for Nvidia, whose margins are much too big.

The 800-pound gorilla. No question that they have a wave of demand. 

Big question that some investors have is just how much investment is going to be required to build out all these data centres? In many cases, the companies building them have been capital-light. Sums to be invested are massive. Can these companies get a return on the investment they're making? That's creating a bit of a wobble in the market.

He wishes he knew, because then he could make a lot more money ;)  When we look at the whole tech market, everything is priced to perfection. If there's a stumble, these names can rocket down 10-20% in a day. He doesn't know that that's going to happen, but expectations are very high. Great business, but overpriced.

We'll see what happens. If NVDA stumbles and does not meet expectations, it could be a bad tomorrow for the company. A game he doesn't want to play, as there's too much danger on the downside.

They just announced a monster revenue beat, an earnings beat, and their AI business beat revenue estimates

Bit of risk-off has come into markets in the last week or two. Mixed news. Good news today on GOOG, where BRK took a position. Yet on the other side, some prominent hedge funds have sold or sold short positions in the AI space. NVDA, for example, was divested from a very important hedge fund run by Peter Thiel. If Peter Thiel is selling NVDA, you have to sit up and take notice.

The reaction to earnings will come down to the Q&A--whether the stock rises or falls. She expects good questions on the circular financing and open AI. The CEO always delivers and expects a great number.

It reports Wednesday. We know what the CEO Jensen Huang will tell us: AI spending continues to grow, nothing new. They will make their earnings, again, but they've missed the whisper number in past quarters. Will the market sell on that?

Is not concerned about their forthcoming quarter. The market is taking into value the company's deals. A lot of those deals are receivables.

It has a reputation for looking expensive in forward PE, but is cheap when we see the actual earnings come in better than expected. It's growing that fast.

If you don't own it, buy here. A must-own. Pretty well sold out all the way until 2027. Some competition from the likes of AVGO and AMD, but it's still the leader. There will be a time (perhaps later in 2026 or in 2027) when growth rates will start to move down from 30% annual growth and closer to 20%. That's the time he thinks the engines will be the next big play.

His team always pays attention to the analysts' price targets, and it always becomes a bit self-fulfilling. Over the last year or two, there have been levels of resistance that now become levels of support. There's very heavy support ~$175-180 and again around $140-145. Valuations are stretched, and his team keeps in mind certain mental (not hard-wired) trailing stops so they can re-evaluate.