To The Moon

My mornings just aren’t as fun without witnessing major market moves! $NVIDIA Corp(NVDA)$  once again delivered a record-breaking quarter, but did it truly shock the market?

🔹 Revenue: $39.3B (+71% YoY) vs. $38.04B expected

🔹 EPS: $0.89 (+71% YoY) vs. $0.84 expected

🔹 Data Center Revenue: $35.6B (+93% YoY) → Now 91% of total sales

🔥 So, What’s the Catch?

The numbers were undeniably strong, yet shares dipped 1.5% after hours. Why?

1️⃣ Sky-High Expectations – Some analysts were eyeing $42B revenue, so even this massive beat wasn’t a "blowout."

2️⃣ Margins Took a Hit – Gross margin slipped to 73.5% (from 75% last quarter), though Nvidia attributes this to ramp-up costs for new products.

3️⃣ Tariff Jitters – Trump’s proposed 25% tariff on semiconductors could squeeze Nvidia’s margins if implemented.

🛠️ But Here’s the Bigger Picture:

CEO Jensen Huang is laser-focused on AI inference, which could require exponentially more compute power than AI training—meaning even more demand for Nvidia’s chips. And with Blackwell Ultra launching later this year, 2025 is shaping up to be another monster growth year.

Overreaction or a Healthy Pullback?

Nvidia is riding the AI wave, but at a 35x forward P/E, some investors might be taking profits. That said, if the AI revolution keeps accelerating, this dip might be a buying opportunity rather than a warning sign.

📉 Will funds rotate elsewhere, or is Nvidia still the king? What’s your move? 🚀💭

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