Nvidia Just Did The Unthinkable [This Changes Everything]

Introduction & Overview folks if you are confused about what happened in Nvidia stick around because this is about to get interesting I'm going to break everything down so don't click nothing don't smash nothing don't buy nothing just listen shares of the company are lower despite the fact that it beat top and bottom line expectations grew Revenue by more than 120% gave solid guidance and announced a $50 billion stock buyback expectations were Nvidia's Earnings Results apparently so high for NVIDIA that it appears anything short of crushing even the most optimistic forecast is being seen as at least a mile disappoint now look the bot line my videos always comes first so here's the bottom line Nvidia essentially beat any single parameter in these earnings you can imagine they got beat Revenue beat earnings per share raise guidance and announced a $50 billion buyback Cally they can buy Intel at this point with that buyback and yet the stock market basically said now what's going on here why isn't the stock taking off into the stratosphere after these amazing results Buy the Rumor, Sell the News and the answer is quite simple the answer is this is a prime example folks of a bu the rumor s the news event everybody were buying Nvidia prepping for these great earnings and when the Great earnings came that just basically was already priced in and the overbought stock got pulled back and corrected a little bit which is kind of what happens every single time so there's nothing here there's a nothing burger no surprises here in fact I literally told you this might happen in the video I posted a few hours before ear ings titled literally urgent warning Nvidia stock I mean I couldn't have titled it better in that video showed you Gene monster one of the head invid analysts basically saying guys short term after earnings we might see a drop because there's so much expectations on the shoulders of this one company and mean they can't possibly meet it in a way that's going to cause another Spike that's kind of why I think that uh the Buying Opportunity? the stock is going to trade down modestly but I don't think that that uh that stock action should be representative of the opportunity Nvidia over the next couple years now look I didn't know in advance it's not going to go to the stratosphere I had no idea where the stock is going to go that is why for the past week I've been beating the same drum saying hey whatever happens we got a plan if it drops if it tanks we double down if it goes up we keep buying normally simple as that now is there a DCA opportunity here with the stock dropping at this point when I'm making this video 2 3% ah not really look in my book it's very simple I buy a stock when it's in double down territory for me it's 20% below the 52 we high if the 52 we high for NVIDIA is $140 the range would be at $112 and below so until Nvidia gets to $112 for me that's a normal DCA you buy at a normal Pace there's no point in increasing now because a dropped 20 or 3% so it's a nothing Burger not yet don't get excited normal DCA now if you look at the Breaking Down the Earnings earnings it is absolutely mind-blowingly impressive because even quarter of quarter this company has blown my mind quarter for quarter data sent revenues up 16% 15% up revenues gross margin 75% operating margin 62% $19 billion are we even understanding these numbers but more impressively and this is absolutely insane $6.5 billion dollar of net profit which means a 60% net profit margin for a company like Nvidia this is insane and they've beat everything across the board and they raised guidance and they're announcing BuyBacks and still that is not enough for the stock to Skyrocket but hey let me tell you Why the Stock Not Skyrocketing Is Good something it's actually good it's great that the stock isn't skyrocketing if you love Nvidia stock and you would love to own more of it at a reasonable price it's good news for you imagine the perfect deal in the stock market in which you get to buy the perfect company that perfect company is very very simply can be put like this right the business gets better and better and better and better while the price stays flat flat flat flat flat so as long as the price stays flat but the business gets significantly better the quality of the deal for you is improving and you should be more excited at buying at the same price when you're actually getting more bang for your buck the story with Nvidia The AI Revolution & Nvidia's Role is is more about like how much of the economy is adopting AI how much of the economy um is cack spending on these things and what we saw at the earnings report was actually really really good um and the last time we saw saw a big uptick in productivity per worker in the sp500 names was really back in in the mid 90s um and and that's and that obviously coincided with the internet NPC revolutions we've been stagnant for the most part for 20 years on that metric and if you get a big uptick we we've started see an uptick these last couple years in that metric if you up you start seeing an uptick in that type of measure man look out you know look out above in terms of the stock market that you that kind of that kind of productivity that we have not seen for 20 years would be really really welcome demand is still well ahead of Supply Supply is is still coming and that's what's allowing Revenue to grow into the second half of the year and as you look in the next year uh the optimism the stock least our optimism is the new product family Blackwell which adds a lot of content I think we're so early stages of this AI Revolution um and really you know from a technological standpoint how important semiconductors are moving forward so you know I think that ultimately there is a long runway for this technology um and I think obviously Nvidia has been an early dominator in in the space uh this is one of those unique companies that can have wings that basically take it for a you know pretty awesome growth rate through 25 into 26 and even Beyond uh the fact of the matter is that there's you know Jensen says there's a trillion dollars worth of old uh data centers that need to be converted to gpus and a similar number of upcoming data centers that's where your demand's coming from in terms of the weakness last night I was really surprised when the stock was down $8 or even $10 at at a point in time uh I Analysts' Reactions don't think those are valid uh you have to understand and Ria is ramping four brand new products simultaneously for high output they've never done this before these are new supply chain new parts and they are not ramping for cost efficiency just yet they'll do that in three to four quarters and margins will settle out again we think the law of large numbers will kick in and B has been able to grow you know 100% Plus for several quarters now the people that actually understand this business they understand that this is temporary at some point the premise which is the time is the best friend of great business it's going to catch up and this stock is going to be pulled up by the great results they've just delivered you've got Morgan Stanley raising their guidance from 144 to 150 Wells Fargo 155 to 165 JB Morgan 115 to 155 and you have benstein 130 to 155 all the big analysts are basically raising guidance raising their price targets after these earnings despite the stock pulling back I have to The Collapse of SMCI understand something usually these analysts they follow the wind they're like a leaf in the wind wherever the street goes they go with it for these analysts to go against the street and actually raise guidance when the market is basically look War about the stock tells you a lot about what actually just happened here these numbers they just delivered they're impossible to ignore it's quite simple now a lot of people ask me about smci s smci is a stock I showed you a year ago the stock price was $200 and I told you hey this is correlated with Nvidia it's cheap hey take a look at it stock goes 5x from that point my community basically celebrates how great of an oracle I am but then but then I make a video and I say look at a th000 bucks this is not a good deal they have no mode and I don't see how this company really really is anything like Nvidia this is basically an assembler of servers at 1,000 bucks per share at this valuation it's insane at 200 it was a good idea at th000 God no now nobody watched that video it got 20,000 views which is one5 of the views I get and I know why because nobody wants to hear negativity and actual analysis about something that everybody's fing into if I'm saying bad things about the favorite hype stock of the moment nobody's clicking that video and I didn't mind I don't mind yet I still made the video I still posted it because I'm going to deliver what I think is the most valuable information for you guys regardless of views now as far as smci goes I told you five months ago that this is garbage I hope you listen And as far as the General market Market Impact goes will this trigger a market pullback will this take the entire Market down because Nvidia basically didn't fly after the earnings no the earnings were fine it's just kind of a temporary knee-jerk reaction I believe the market is okay the market is strong Nvidia is strong the future is strong they have a strong CAPIC cycle ahead of them I do see a broadening of the rally as far as iwm small caps they're still looking for some love and I think this is an opportunity for people to allocate Capital to where the more underpriced opportunities are like iwm so I do think there's more opportunities here opening up in the small cap section where there hasn't been a lot of love lately and with all this sideline money and with Nvidia basically kind of hitting a Peak at least temporarily I think there's a good chance we see a broadening mainly into the iwm into the small caps and for those of you who would like to get more Nvidia stock and you fear that it has gone out of the stratosphere You' never Final Thoughts get it again one thing I can promise you is that whatever you say about Nvidia this is a volatile stock it's going to see a lot of ups and downs you're going to have plenty of opportunities to buy Nvidia at the cheaper price there's no point in going absolutely ham going all in right now the proper way is to dollar cost average slowly every single week buy a little bit ride the wave ride the average up and down and then buy a little bit more when it's down buy a little bit less when it's up I've actually made a whole presentation about it today's Academy lesson was about that DCA strategy a toz complete tutorial one hour with examples everything you need to know so if you haven't yet considered joining the academy all the details are below p.com for would love to see you there the recording is actually available on a Discord for Academy members so even if you join today the recording is there for you go watch it right now thank you so much I'll see you next one peace