AI Investors, This Is The Moment Of Truth For Nvidia, AMD, Micron, & More (Get Ready)

All right, good morning everybody and welcome back to another video here on the channel. Look, I wanted to jump on and make a quick update for you all about Nvidia because we are still seeing this thing's price going absolutely nuts right now. It started off the morning around $209 and then pushed all the way up to around $226 which represents a gain of roughly 7. what? Yeah, 7.7% just over the last 24 hours which is absolutely nuts for the largest company in the world. You know, I saw so many comments on the previous video where I was like, "Guys, Nvidia's price is exploding right now." People said, "Tyler, this isn't exploding. This isn't a pump. We're only seeing 3% 4% gains." But the reality is again guys, we're not talking about a small company. We're talking about the biggest company in the world. So when you see say an 8% gain on Nvidia within the span of a few hours for a $5 market cap company, we're talking about nearly what? A half a trillion dollars in market cap, 400 billion dollars in market cap moving around over the course of a couple hours. That's insane. That is a massive move and that's definitely not something you want to scoff at because that sort of liquidity either being injected or being removed from the market can have a massive impact on not only just Nvidia but other stocks that are somewhat correlated to it as well such as your Microns, your AMDs, etc. So a move like this is definitely not one that you want to ignore and I am very excited to see it happening and I want to talk about it a little bit more, okay? More specifically what we're seeing on the chart of Nvidia because we have been doing so much covering of the fundamental side of Nvidia recently. Now to catch you up though on some of the stuff that we talked about recently with Nvidia, the reason why this pump is happening is because of the earnings report that we saw yesterday. I mean, it was an absolutely stellar earnings report. It was just about as good as you can get but it was missing one core piece. So I would give it about a 90% 95% 9 out of 10 9.5 out of 10 roughly. We saw revenue come in absolutely smashing it 106% growth year-over-year with 96.2 billion dollars in the last quarter beating analyst expectations by 4.2 billion. We saw EPS come in with an 111% gain year-over-year with $2.22 coming in, beating analyst expectations of $2.08. Data center revenue led the charge up 117% year-over-year, $89 billion of revenue, and margin coming in exactly as analysts were expecting at 75%, which is a 72.7% year-over-year gain. I mean, just absolute wild numbers. The biggest company in the world printing triple-digit growth is just nuts. It's just nuts, and the market couldn't ignore it. As emotional as and irrational as the market is, it couldn't ignore it. It just you know, usually we'll see good earnings, and we'll see a dump, but I mean, these were just great earnings, okay? Now, it wasn't just earnings, of course, it was guidance as well. We saw them come out and state that they were expecting around $108 billion of guided revenue for Q3. They're probably going to beat that by 3 or 4% if I had to guess, unless something terrible happens. So, I mean, we're easily looking at this thing putting in $112 billion, in my opinion, $113 billion, which is just nuts. And I think Wall Street just went, "Oh my goodness, this is just insane." Especially considering, you know, Vera Rubin being still on track, demand is still roaring. I mean, it's been fantastic, right? So, when you combine all of these things together, all of which we talked about in yesterday's video, it makes perfect sense as to why you are seeing Nvidia's price moving as it is today, and putting in such a fantastic gain. You know, what's very interesting right now is that we're actually seeing Nvidia getting rotated into from some of your underperformers. You see how like Micron, for example, is down today, AMD's down today, SanDisk is down today. Some of these ones that have been maybe struggling a little bit recently. I think, honestly, you're seeing a lot of them rotate into Nvidia right now, which is why you'll go to, you know, the Micron chart, and you're seeing Micron pulling back in the same exact time frame that you're seeing Nvidia pumping. It's almost like a counterbalance. When you see the sell orders flood in from Micron, you're seeing buy orders flooding in from Nvidia. And I think a lot of people right now are very nervous about the AI trade in general, especially semiconductors and their future, and they're going, "Look, if I'm going to take a bet on something, I'm going to take a bet on the one that's actually doing something." You know what I mean? Or in terms of price action right now. And is that the way to play the game, waiting for something to pump to start buying it and selling your things that are down? No, but that is the way that this market plays, especially because it's irrational. But, nonetheless, we are getting an absolutely fantastic move from Nvidia right now in terms of price, and it is about to make a very, very important decision that we're going to want to watch extremely closely today and tomorrow. This is like a 48-hour sort of thing, okay? So, we're going to watch it closely. So, that decision that I'm talking about is Nvidia's approach of this key zone of resistance. There is a massive, massive, massive zone of resistance that Nvidia's price is about to hit that is basically going to tell you everything you need to know. If Nvidia's price runs into this resistance and it really starts to weaken and it cannot gain any momentum, guys, there's a real world in which not only does Nvidia regurgitate all the gains that it's put in over the last 24 hours back, but it could get worse. You actually, in theory, could see Nvidia start to roll back towards the downside and start coming back down towards $190. That is absolutely a card that's on the table, and if you don't think it's a card that's on the table, go look at how Nvidia has performed in other moments. Go look at how it's performed in other moments where it has pumped after earnings. There have been moments where it's immediately given those gains back. It is possible, and you're going to want to pay attention to it. Now, this um Well, I guess on the flip side, before I actually point out what the resistance is, the beautiful part is that if we break through that resistance that we're about to identify, look, there's also a world in which Nvidia starts pushing up towards all-time highs or further. I could see a world in which Nvidia's price comes up towards $250 to $270 and retest the top side of that zone. So, this is going to be one of those moments, right? Where Nvidia is about to have to make a decision that could either swing it up to a new all-time high or swing it to a new monthly low, and that is a huge spread. There is a huge gap between those two, which is why if you're somebody who has Nvidia, if you're someone who has semiconductors in general, even if you have hyperscalers with semi exposure to Nvidia, you absolutely need to watch what happens here very, very closely. Now, the resistance that we're going to be talking about today, the decision that's about to be made today, comes down to the golden zone. Now, if you've been watching my channel for a while, you know that I am someone who's a firm advocate that the golden zone is the most important liquidity zone that there is on a chart. Most of your algorithms respond to it, hedge funds use it, your mechanical traders use it. I mean, basically everyone uses it who's operating at a higher level, so you can't ignore it whatsoever. And if we go ahead and draw in that golden zone from this previous May high all the way down to this July 30th low, what you can see is that Nvidia is now at the top of that golden zone. It tried to break it once already, right? We got this bounce off the bottom side, we made this run towards the top side, and Nvidia tried to break it right here back on August 13th, but it ultimately failed. And as a result of failing, you saw Nvidia's price get immediately rejected back towards the downside over the course of that week, pulling back over 9%. This zone is strong enough to reject Nvidia's price by 9%. Think about what it could do now since these these sellers who push it down here going to be more confident this time around because of course they were capable of maintaining this zone the second time or or the first time, I mean, you could be looking at Nvidia again really rolling off that level if it's not capable of breaking through this resistance. Now, the top side of this zone currently sits around $226. And the good thing is Nvidia's right up on it already, right? Nvidia made this beautiful run towards the top side and it's sitting under the very bottom of that resistance zone already. And the reason why that's a good sign is because you can see there wasn't a ton of resistance and a lot of um strain getting into this golden zone. You see how the last time we came into the golden zone, like we tried to get into it and then we came back down, then we tried to go up, then we came back down, then we came back down, then we held it, then we went up, then we came down. You see how there was like a lot of chop in here last time? Well, that makes a lot of sense, right? because this is a massive seller zone and the sellers are trying to force that price down. They're not going to make it easy on you, right? And the buyers really have to battle battle battle battle battle to where by the time that they even got above the golden zone for a second, they just didn't have enough strength to maintain it. And you saw most of your indicators flashing and say like, "Hey, this is a bit of a we're we're losing strength essentially, right? If we go ahead and we look at our divergences, you can see exactly what happened there. I mean, we had that divergence flashing right here the second that we tried to break above it. It was just a signal like, "Guys, we're just not strong enough to be able to go up and break this zone." But this time around is a bit different. Again, we are not getting all of this chop. Nvidia's price has now just come straight up into this golden zone, which means that this news that we got yesterday was so fantastic that the buyers stepped in with strength and ignored all that selling pressure. And that's why you have to be able to pay attention to fundamental analysis, guys. Look, I'm not somebody who thinks that technical analysis should be done alone. I don't believe that at all. I think if you're a stock investor who's utilizing chart reading, what you need to do is use fundamental analysis in like kind of um lockstep with technical analysis. The saying that I always give is that fundamental analysis sets the trajectory and technical analysis maps the journey. And so, the journey is upwards because of that earnings report. And or you know, the trajectory is upwards as a result of that earnings report. This golden zone interaction is going to map the journey, right? It's going to tell us what it looks like. Do we work our way upwards through this golden zone and immediately start opening up or do we get rejected off of it, come back down, retest the lows, sweep the lows, get some new start breaking back up, right? What does the journey look like? That's why this sort of analysis is so important. And that's why I'm watching it very closely. So, if you are somebody who has exposure to Nvidia, semiconductors, software as well, hyperscalers, yeah, you're going to want to watch this extremely closely. I'm telling you, because what happens here is going to tell you exactly, exactly what could happen as we move forward. What we want to see, let me make this very clear. What we want to see over today and tomorrow is that Nvidia can start showing at least signs of being able to break through this golden zone. You know what I don't want to particularly see happen? I don't want to see Nvidia immediately get rejected off this level today, close somewhere around 223, and then pull back tomorrow back to around 218. It wouldn't be the end of the world, but it definitely goes to show that even after this absolutely fantastic earnings report, the buyers are still not strong enough to get through this resistance zone. And the more times that something like that happens, the more likely it becomes that Nvidia does that Nvidia does come down and start trying to retest and scoop some of these bottom side lows around like 190 bucks, okay? No, what we want to see is those buyers showing strength. I want to see them showing their capability and their willingness to start pushing through that golden zone at 226. And ideally we get a close above that zone sometime today. I don't know if it's going to be able to. It's not maybe showing the best signs of that quite yet, but time will tell. And that's again why I'm saying there's a decision that's going to be made. I'm not going to sit here and try to tell you what is going to happen because quite frankly, folks, I don't know what's going to happen. I don't know if it's going to break this golden zone or not. You don't always know what's going to happen when you're looking at charts. You rarely actually know what's going to happen. It's all about establishing what is currently happening and basing my reactions of course off of it. So, my reaction to this knowing that Nvidia is now sitting at the top side of a golden zone, a major resistance zone, and if it gets rejected off of it, it's probably going to see a pretty gnarly pullback that could absolutely bring a lot of the market down in an uncertain time like we're in right now, especially after PCE data, I'm just going to go in and hold. This is a hold moment for me. I stopped buying completely. You could sell if you want, you know, like this could be a sell moment for the people who are very, very up in profit and want to take some profit. That's not most people. Most people are in a hold moment right now. Let's see what happens here for Nvidia. Does it break through this resistance? And if so, does it start to open up because I'm telling you if it does and you see a break up and you start to see it come up, give you a bit of a back test, maintain that. I'm I'm telling you you're looking at an Nvidia trying to go for 240 bucks to 256 bucks. I think it's coming somewhere into the zone towards the top side of that major, major ascending structure that we've been tracking, all right? So, I'll keep you updated as it does play out. What I want you all to do though is to go on your chart and draw in your golden zone. Your golden zone's between 226, let's call it 226.5, and 217.5. Draw in that golden zone and this is what I want you to monitor today, okay? And as it interacts here, you'll start to see those signs and clues and I'll keep you updated as it plays out. Remember, I am currently out of town on a trip for my wife's birthday. It's actually her birthday today. So, we got some little stuff going on in here. I don't know if I can show you guys this really quickly. Let me try to try to show you guys real quick. So, you know, I went to the store and got her some little decorations and stuff. Uh here we go. Got our little happy birthday decoration, got her a little cake. Don't have too many options for decorations because we are out of town, but trying to do my best, you know what I mean, folks. So, got a birthday going. We're going to go do some real fun stuff today. I'm pumped about it. Probably do a little birthday shopping all that good stuff. So, I'll keep you guys as updated as possibly as I possibly can, but make sure you go on your charts, draw in that golden zone, and watch it. And I'll update you as we see the interaction. You know, are we getting rejected? Are we pushing through it? And then we'll go from there. Now, one thing that I will say is that you're also going to want to watch this as I'm I didn't mention this already, but if you are someone who has exposure to like a Micron, for example, you're also going to want to watch um what happens with Nvidia there. Because I honestly do think that right now we are seeing a bit of a temporary rotation, right? So, people are currently going in and they're rotating from Micron into Nvidia. But I don't think that lasts long. I think right now you're seeing just a repositioning in the market, but I think what will happen is that if Nvidia's price does continue to gain momentum and gain strength, that you will see Micron try to rally off that strength and try to push higher. But if Nvidia does get rejected here and it starts to weaken as well, especially considering the fact that Nvidia's like the only strength that the market has right now, I definitely do think that is going to encourage something like a Micron to start falling through those levels and probably reapproach the high 800s, all right? So, again, this is important all across the board, so I'll keep you updated all across the board as it plays out. But all in all, I know the the quality of the content has been a little bit different recently, especially like the video and the audio, but hopefully you guys have still have still enjoyed it, at least. So, if you have enjoyed it and you want me to keep posting while I am out of town, please do let me know down in the comments down below. I do get back on Monday, if not, so all good. But all in all, I hope you guys are having a great What day is it? Thursday? And I can't wait to see you on the next one. Bye, everybody.