Nvidia earnings show the AI boom is alive and well… is Nvidia “a screaming buy”? … what to take away from Trump/Intel… another big win for Eric Fry’s subscribers… all eyes on tomorrow’s PCE report VIEW IN BROWSER Yesterday, after the closing bell, Nvidia released another blockbuster earnings report: - Non-GAAP earnings per share: $1.05 (above the consensus estimate of $1.01)
- Revenue: $46.7 billion (a 56% year-over-year gain, beating estimates)
- Next quarter guidance: about $54 billion in sales, comfortably ahead of Wall Street’s estimates
- Buyback announcement: $60 billion in new authorization – a clear show of confidence.
And on the earnings call, CEO Jensen Huang was incredibly bullish about the global AI rollout. Here’s CNBC: [Huang] said AI has made “tremendous progress” in the last year and that the build-out of AI infrastructure is still in its early stages. “As the AI revolution went into full steam, as the AI race is now on, the capex spend has doubled to $600 billion per year,” he said. “There’s five years between now and the end of the decade, and $600 billion only represents the top four hyperscalers.” Huang projected $3 trillion to $4 trillion in AI infrastructure spend by the end of the decade. “The opportunity ahead is immense,” he added. Despite the fantastic numbers and glowing words, NVDA is trading about 1% lower as I write Thursday. Why? Sky-high expectations from Wall Street are running into a slight miss in the data center segment: - Revenues came in at $41.1 billion vs. $41.3 billion expected
- Sequential data center revenue growth slowed to 5%
Some investors see this as a warning that the torrid pace of AI infrastructure buildout may be moderating (though Huang’s commentary should have pushed back on that fear). Importantly, management did say the new Blackwell chips (related to data centers) grew revenue 17% quarter-over-quarter. This signals that the transition to this next-gen chip architecture is underway and seemingly going well. So, this slight data center revenue miss seems more part of a healthy transition than a true drop in demand. But there’s another, simpler reason why NVDA is falling today Let’s go to legendary investor Louis Navellier, whose Growth Investor subscribers are sitting on open gains of 4,100%+ in NVDA: 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. So, just the weight of all the options [that market makers] write holds the stock back. This is not unusual. Overall, Louis was thrilled with the report. He also highlighted something investors should remember… Nvidia isn’t yet reporting any H20 sales that have been designed for China. But that’s another $3 to $5 billion in sales per quarter that’s on the way once Washington and Beijing remove the various political roadblocks. Put it all together and Louis’ bottom line is simple: Nvidia is a screaming buy right now. Luke Lango says it’s rally time for AI stocks Tech investing expert Luke Lango echoed Louis’ bullishness on Nvidia and expanded it to the broader AI boom. The AI infrastructure build-out is not slowing. If you needed more proof, CEO Jensen Huang gave it to you on the call. He said he expects the world’s largest companies to spend $3–4 trillion on AI infrastructure in the next five years, and positioned Nvidia to capture as much as 70% of that spend. Let’s pause on that: we are not talking about “maybe another year of strong growth.” We are talking about multi-trillion-dollar capital commitments — bigger than the cloud build-out, bigger than smartphones, bigger than both combined. And those trillions don’t just stop at Nvidia. They spill into the entire AI supply chain: servers, networking, cooling, rare-earth magnets, batteries, robotics, software. If you want exposure to the largest capex cycle in history, you want AI stocks. Period. Bottom line: Today’s subdued reaction to Nvidia’s earnings is little more than a brief “priced for perfection” reset rather than a fundamental shift. And given the AI-spend numbers that Huang is throwing around, it’s hard to argue with Luke’s takeaway: It’s rally time for AI stocks. | Recommended Link | | | | 99% of Americans don’t realize this… But as soon as October 23… Elon Musk is set to launch his long-awaited Optimus robot… The same robot that Elon himself says could be “10 times bigger than the biggest product ever made”… That’s 10 times bigger than the iPhone… 10 times bigger than ChatGPT… And potentially even 10 times bigger than the Internet. If you make this simple move before October 23rd… You stand a chance to profit alongside Elon as he flips the switch on Optimus. Click here to learn how. |  | | The real story with the government’s 10% stake in Intel Earlier this week, the U.S. government acquired a 10% equity stake in Intel by converting $8.9 billion in previously awarded but unpaid grants into stock. This positions the government as Intel’s largest single shareholder, albeit in a passive role with no board seat or broad oversight. Behind this decision from the Trump administration is one thing – national security. Let’s return to Louis: Intel is still the only American company capable of making advanced chips at scale on U.S. soil. The West remains heavily reliant on Taiwan, which produces more than 60% of the world’s semiconductors and nearly 90% of advanced chips. If China ever made good on its threats to invade Taiwan, the risks to our supply chain would be catastrophic. (TSMC, for its part, understands this – which is why it’s building new chip foundries overseas.) By taking a stake in Intel, the U.S. government is signaling it won’t allow the country to depend on one small island within striking distance of our biggest adversary for the chips that power everything from iPhones to AI data centers to missile guidance systems. Now, this raises a handful of questions… - Looking forward, who will really be in charge at Intel?
- Is the chip company now “too big to fail” even if it performs poorly?
- How is this not a step over the once-clear line between public and private markets?
- Who is ultimately responsible if this doesn’t work out well?
Time will tell. But for now, there’s a key takeaway for investors… Washington’s stake in Intel isn’t just a bailout or subsidy – it’s a declaration that semiconductors and AI are core to national security. This will shape policy, capital flows, and competition for years. And Louis takes it one step further… Intel is just the beginning. Trump’s national security plans and what they mean for the investment markets This isn’t the first example of the Trump administration taking a stake in a private company for strategic reasons. In a live broadcast back in July, Louis profiled five small rare-earth metals companies that are in the crosshairs of potentially hundreds of millions – even billions – of dollars’ worth of investment capital. He also revealed one of his top picks to attendees for free – MP Materials (MP). The very next morning, the Pentagon announced a $400 million investment into MP Materials, instantly positioning the company as a strategic national security play – and sending its stock soaring. It’s now up 145% since Louis’ presentation. Expect more of this. Here’s The New York Times: Three days after the United States agreed to acquire a stake in the chipmaker Intel, President Trump signaled on Monday that he would pursue similar investments in other major companies, describing his new economic strategy as an attempt to “get as much as I can” … [Trump] has recently tried to extract favorable concessions when corporate leaders have needed his help. To take over U.S. Steel, the Japanese-based Nippon Steel agreed to grant the U.S. government a “golden share” in the combined company to influence its direction. Mr. Trump also extracted a pledge from chipmakers, including Nvidia, to give the government 15 percent of their revenue from selling powerful computer chips to China. The next target is likely to be defense companies. Here’s CNBC from Tuesday: Top officials at the Pentagon are “thinking about” whether the U.S. should acquire equity stakes in leading defense contractors such as Lockheed Martin, Commerce Secretary Howard Lutnick said Tuesday. Lutnick went on to say that “there’s a monstrous discussion about defense.” Louis advises watching for a catalyst on September 30 Louis believes these stakes in private companies are just one part of a far bigger initiative, supportive of what Trump promised would be a “boom like the world has not seen.” And if Louis is right, September 30 is a key date in this boom. You see, multiple factors are converging, including: - Trump’s interest in his legacy
- The 2026 mid-terms
- Tariff revenues
- Onshoring/supply chain efforts
- Global investment pledges inside the U.S.
Louis believes they’re all supporting a “Trump boom” that could pull $7 trillion in cash currently in money market accounts off the sidelines and back into the stock market. I want to cover more ground in today’s Digest, but you can read the full story directly from Louis right here. He’ll tell you what this means for the stock market – and highlight five A-rated stocks that he’s confident have 10X-return potential as these trillions rotate out of savings accounts, into stocks. Speaking of big return potential… In April, as “Liberation Day” tariffs roiled the markets, fellow Digest writer Luis Hernandez and I profiled one of the latest picks from our macro investing expert Eric Fry – Canada Goose Holdings Inc. (GOOS). It’s a global performance luxury and lifestyle brand that Eric believed had insulation from tariff wars. It was also trading at a P/E ratio of 15.2 – miles beneath the S&P’s P/E of 26.7 at the time. If you decided to add GOOS to your portfolio based on those Digests, congratulations! Yesterday, GOOS jumped about 15% thanks to rumors of “take-private” offers. Here’s Eric with the details: According to the rumors, the private equity firm, Bain Capital, which owns about 60% of GOOS, has been shopping its stake to other private equity firms. Reportedly, Bain has received bids from Boyu Capital and Advent International that would value GOOS around $14.50 a share. But the rumors don’t end there. Potentially, competing bids from Chinese sportwear companies might be forthcoming. Those bids, if they materialize, could place an even higher value on GOOS shares. Eric is playing this news two ways… In his trading service Leverage, he recommended subscribers sell their remaining half-position in their GOOS call option for about 350%. That produced a total trade gain of about 285%. But over in Investment Report, where subscribers hold the stock outright, he recommends holding: [Yesterday’s buyout] rumors could evaporate as quickly as they have appeared, and the “takeover premium” could disappear. But I believe that risk is low, as Canada Goose could be an attractive acquisition for either a private equity firm or a competing sportswear company. Therefore, I recommend sitting tight for the moment. From a long-term perspective, I believe the stock remains undervalued and will continue working its way higher, with or without any buyout offers. Congrats to Eric’s Investment Report subscribers who are up 89% in their GOOS position in less than five months. Why the “sell” in Leverage and yet the “hold” in Investment Report? Because of the two different investment vehicles. If the buyout rumors fizzle, it will have a markedly greater impact on the value of GOOS’s options values rather than the stock price. Eric’s Leverage subscribers only have about six months left before their call expires, so taking profits on the “GOOS in the hand,” so to speak, is just wise trade management. Bottom line: Congrats to both Leverage and Investment Report subscribers. It’s just the latest illustration of why Eric is one of the best in the biz. On that note, as we’re going to press, I’m seeing that Eric is recommending his Leverage subscribers lock in a 1,000% return on their Corning (GLW) calls. We’ll bring you more tomorrow, but for now, a huge “congratulations” on this enormous win. (Disclaimer: I own GLW.) Finally, tomorrow brings the next big market hurdle It comes from the July Personal Consumption Expenditures (PCE) Price Index, the Fed’s preferred inflation gauge. Let’s return to Luke. From his Innovation Investor Daily Notes: Inflation has ticked up each month since April’s “Liberation Day” tariffs, but in small 10–20 bps steps. Headline and core remain under 3%. Another mild uptick Friday would leave September rate cut odds intact. Luke goes on to write that “strong Nvidia numbers plus a tame PCE report equal rocket fuel.” Well, we can put a checkmark by the first variable. All eyes are on tomorrow morning for the second one. We’ll report back. Have a good evening, Jeff Remsburg | 
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