Did Nvidia Save The Market Again?
Jensen pulls off another masterclass that *COULD* power the market into the end of 2025.
“There has been a lot of talk about the AI bubble. Here’s what we’re seeing at Nvidia…”
Jensen made a statement right as the earnings call started and proceeded to rattle off some of the most mind blowing numbers the market has ever seen.
Nvidia delivered another historic quarter with results and guidance that crushed sky high expectations. Nvidia reported $57B in revenue this quarter, +62% YoY, and raised Q4 guidance to $63.7B–$66.3B. Data center revenue reached $51.2B +66% YoY, showing that demand for accelerated computing is still growing faster than supply. Net income jumped to about $32B +65% YoY, and gross margins came in at a massive 73.4%. These are numbers that most software companies don’t even achieve, yet this is a hardware company. Nvidia is operating a hardware, networking, and software ecosystem with profit metrics similar to cloud SaaS. It’s just unheard of.
On the call they explained that the GPU clouds are already fully utilized across both new and older chips and Nvidia has visibility into roughly $500B of Blackwell and Rubin revenue stretching into 2026. They even announced additional multi year orders amounting to hundreds of thousands more GPUs from sovereign data centers, hyperscalers, and enterprise AI factories. Sound like a demand problem? No. Sounds like Nvidia can barely meet demand.
Michael Burry’s thesis is not coming true just yet… I discussed my counter to his thesis at length in an article here and Jensen just emphasized what I said in the article. One quote that stood out regarding the depreciation argument was: “the A100s we shipped six years ago are still running at full utilization today, now powered by a much stronger software stack.” Sounds like the old chips don’t actually become useless after a few years, as I mentioned. Yes they become less useful, but they don’t become useless which is what many are arguing.
In the remainder of this article, I’m going to discuss what I’ll be looking for to tell me that the bottom is truly in, my process for gaining exposure after a pullback, my biggest focus names for adds in the coming days and weeks, my thesis + their respective charts, what I think happens with the market as we head into the end of this year, and more.
Let’s get into it.