The No-Hype Investor
Simple investing insights for long-term investors
Nvidia’s Blowout Earnings Just Changed the AI Story
💡 THIS WEEK’S BIG IDEA
Nvidia just delivered another monster quarter.
Revenue hit $96.2 billion, up 106% year over year, while Data Center revenue reached $89 billion, up 117%.
But the most important number wasn’t from this quarter.
Nvidia now expects roughly 70% revenue growth in fiscal 2028.
That is a huge signal.
For months, investors have questioned whether AI infrastructure spending was getting close to a peak. Nvidia is telling us the opposite.
Demand remains extremely strong, and supply constraints—especially around memory and other components—are still limiting how quickly Nvidia can grow.
That reinforces the bigger theme I continue to watch:
The AI opportunity is expanding beyond Nvidia.
If Nvidia keeps selling more GPUs, the industry also needs more memory, networking, power, cooling and data-center capacity.
The AI buildout still has room to run.
-Alex
👀 What I’m Watching:
Memory
Nvidia’s growth strengthens the case for continued demand for high-performance memory.
Micron and SK Hynix remain two of the companies I’m watching most closely as AI systems require increasingly large amounts of memory.
Broadcom
Broadcom reports next.
Its results should give us another important read on AI networking and custom accelerators.
Neo Clouds
CoreWeave and Nebius continue expanding alongside the broader AI infrastructure boom.
The growth potential is significant, but these remain much higher-risk investments than Nvidia.
Stock of the Week:
NVidia
Ticker: NVDA
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What They Do:
Nvidia provides the GPUs, networking, software and computing systems powering much of today’s AI infrastructure.
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Why It Matters:
Nvidia has effectively become a real-time indicator of how much money is still flowing into AI infrastructure.
Right now, the answer is: a lot. -
Bull Case:
Nvidia still has exceptional growth, dominant market share and another major product cycle beginning with Rubin.
Demand also continues to exceed supply.
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Bear Case:
Expectations are extremely high.
Custom AI chips, China restrictions, rising component costs and any future slowdown in hyperscaler spending remain important risks.
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My Take:
This quarter strengthens my view that Nvidia remains one of the highest-quality companies in the AI trade. They remain my favorite AI play.
But the larger opportunity may increasingly be found in the companies supplying everything Nvidia needs to keep growing.
📈 Final Thought
Nvidia’s quarter didn’t just reinforce the bull case for Nvidia.
It reinforced the idea that AI infrastructure remains one of the most important investment themes in the market.
The next winners may not all be GPU companies.
They may be the companies supplying the memory, networking, power and infrastructure needed to keep the entire system growing.
That is where I’ll continue looking.
—Alex Talks Stocks
⚡ Reader Question:
Does Nvidia Still Have Room to Run After All These Gains?
I think the answer is yes.
Nvidia has already delivered extraordinary returns, but the business is still growing at a rate that few companies of its size have ever achieved.
Revenue just grew 106% year over year, Data Center grew 117%, and management is signaling that exceptionally strong growth could continue well beyond the next few quarters.
That doesn’t mean the stock will move straight up. Expectations are high, and Nvidia will inevitably experience pullbacks.
But as long as earnings continue growing rapidly, AI infrastructure spending remains strong, and Nvidia maintains its leadership position, I believe there is still meaningful long-term upside.
The stock has already run. The business may still have a lot further to go.
James’ Corner
I was thankful to see the market up by the end of the workweek. It was quite a dip from the June highs, and honestly, I was tested. There’s always a delicate balance between cutting your losses and having “diamond hands” (not selling).
I’m reminded of one simple rule: have a plan, and stick to it.
I- James
