Why NVIDIA Is a Screaming Buy After Earnings VIEW IN BROWSER For decades, Alcoa Corporation (AA) was considered the bellwether for the American industry. It was a convenient arrangement. Not only was Alcoa first in alphabetical order, it was also an aluminum giant. Its products were used in everything from construction to automobiles to consumer goods. So, its earnings results provided Wall Street with a good temperature check on the U.S. economy and were considered the “official” start of earnings season. However, Alcoa eventually lost its bellwether status. The company split in two in 2016, and it fell to the big banks to mark the beginning of earnings season. It was the end of an era. Today, when it comes to the end of earnings season, NVIDIA Corporation’s (NVDA) earnings were considered the grand finale. But they also serve as the bellwether for the artificial intelligence industry as well as the broader market. And it’s no surprise why. NVIDIA now makes up 3.6% of global GDP growth – making it larger than the entire stock markets of Great Britain, France and Germany, individually. Although Wall Street certainly wants to hear what the other six of the Magnificent Seven have to say about AI in their earnings reports, NVIDIA carries the most weight these days. It’s why I like to say that there’s really no Magnificent Seven anymore. It’s just the Magnificent One: NVIDIA, the engine behind AI. As such, all eyes were on NVIDIA’s latest quarterly earnings report Wednesday afternoon. So, in today’s Market 360, let’s review its results. I’ll explain why the stock dipped despite beating analysts’ top- and bottom-line estimates, and share if it’s still a good buy right now. Plus, I’ll reveal the next big event that should trigger a surge in select stocks. The Details of NVIDIA's Earnings Results For its second quarter in fiscal 2026, the company reported total revenue increased 56% year-over-year to $46.7 billion. And its Blackwell data center revenue rose 17% quarter-over-quarter. Second-quarter earnings jumped 54.4% year-over-year to $1.05 per share, up from $0.68 per share in the same quarter a year ago. That’s a 4% earnings surprise. However, data-center growth was below what some analysts were hoping for, although it was still spectacular. NVIDIA’s data center revenue grew 56% year-over-year to $41.1 billion, but analysts expected $41.3 billion. Additionally, the company’s China-specific H20 chips aren’t shipping yet – but once that’s resolved, it could mean an additional $3 billion to $5 billion in sales per quarter from that line. In the earnings call, NVIDIA CEO Jensen Huang said that the company is getting “fired back up” to resume selling chips to China, and that it has secured licenses from the Trump administration. | Recommended Link | | | | One company to replace Amazon… another to rival Tesla… and a third to upset Nvidia. These little-known stocks are poised to overtake the three reigning tech darlings in a move that could completely reorder the top dogs of the stock market. Eric Fry gives away names, tickers and full analysis in this first-ever free broadcast. Watch now… |  | | Looking ahead to the third quarter in fiscal year 2026, NVIDIA expects total revenue to be about $54 billion, plus or minus 2%. H20 shipments to China are not included in this outlook, and Huang noted that any sales to China in the quarter would be a “bonus on top.” That outlook is in line with analysts’ consensus estimate for $53.43 billion. But some analysts outside that consensus were hoping for more than $60 billion. During the earnings call, Huang also attempted to stifle concerns that AI spending is dwindling. He said the AI opportunity is “immense,” and that NVIDIA sees “$3 trillion to $4 trillion in AI infrastructure spend by the end of the decade.” After the beat-and-raise quarter, shares of NVIDIA pulled back today. But it wasn’t because of the minor miss in data center revenue. Why Options Hurt NVIDIA With a heavy load of short-dated calls – roughly 42% of options are daily – option writers often lean against post-print pops, capping upside even when a company beats and raises forward-looking guidance. So, just the weight of all those positions caps the stock’s upside. This is exactly what Citadel, Virtu Financial and Jane Street – the primary folks that write all the options contracts – did. They’ve made a lot of money selling calls on NVIDIA, and they have no intention of fulfilling them. However, this is not unusual and happens a lot during earnings season. So, I view NVIDIA as a screaming buy right now. It’s still the leader in the AI Revolution, its earnings and sales were fantastic and it will continue to dominate the AI space for years to come. Bottom line: Don’t worry too much about the pullback in the wake of earnings. Circle This Date on Your Calendar With NVIDIA’s earnings now behind us, the next date to watch is September 30. That’s the day President Donald Trump could spark $7 trillion of institutional buying. I call it the Trump Shock. If you’ve been paying attention, you know President Trump has promised us a “boom like no other” – and he’s pulling out all the stops to make it happen. From tariffs to tax cuts to historic Executive Orders, the first six months of his presidency have been a frenzy of unprecedented stimulus. Investors who position themselves correctly before September 30 could profit handsomely. Specifically, there are five companies that I believe will experience an historic run – all thanks to the $7 trillion Trump Shock. Click here to watch my urgent briefing to learn how to access these names and get my favorite stock pick – absolutely free. Sincerely, | .png)
.png)
0 Response to "Must Read: Why NVIDIA Is a Screaming Buy After Earnings"
Post a Comment