$NVIDIA(NVDA.US)

Usually I talk about Nvidia at the start of the week. But since Nvidia just posted results, I thought it relevant to do an update post on her as well as participate in the trade showcase event.

Earnings summary

Nvidia’s results beat across the board. Nothing surprising as she always does well. And hence the market always expects more. And the market did sell her off initially (on awesome results at that! What’s up with you Mr Market? 😂).

However, as guidance comes in,

1. It becomes clear that demand is far outpacing supply.

2. Estimates were pulled from 2028 to 2027.

3. Short term constraint is memory.

4. Mid term constraint is power, land and shell.

5. Gross margin drops from 75% to 72% due to memory costs.

Mr Market now seems to like that and is green pre market.

And so as the saying goes - The proof is in the pudding. AI is here to stay and that is confirmed with technicals and price action. The safest route is usually the obvious one.

@Captain's Treasure