The ONE Stock Nvidia NEEDS... I’m Putting $50,000 Into It

Two days ago on August 26th, Nvidia told Wall Street that $1.3 trillion is about to get spent building AI and that it still cannot build fast enough to keep up. The next morning, the stocks that should have exploded, didn't. Micron, the American company sitting closest to the shortage Nvidia just described, fell more than 3% while Nvidia was up 10%. Same day, same news, totally opposite directions. And if you own anything in AI, that split matters more than any number in the report because $1.3 trillion is going somewhere over the next two years. And one of those two reactions is telling you where. Now, here's what set it off. Buried in that earnings call, Nvidia's chief financial officer admitted something I have not heard a company this size say out loud in 20 years of doing this. She said Nvidia's gross margin is falling from 75% down to 71 by the fourth quarter and that the money is going straight to a supplier Nvidia cannot say no to. Now her word for it was bottleneck and she put a clock on it at least two more years. And this is the company that would know. Now today I'm going to show you why Wall Street sold the obvious winner anyway. the one bottleneck Nvidia cannot engineer its way around because they are already engineering around the other one. And then I'm going to buy the company standing in front of it here on camera with $50,000 of my own money. So make sure to subscribe to the channel because this is not a one quarter story and I'm trying to keep you on the bleeding edge of the AI trade. Now first I want you to understand how big this actually is. Revenue of $96.2 2 billion up 106% in a single year data center revenue of 89 billion up 117%. I mean we have never in the history of the stock market seen this level of growth at this scale and then they guided mean they adjusted their expectations to $ 108 billion for next quarter. That's more in three months than Nvidia did in all of 2024. Now, here's the part a lot of people are getting backwards. Nvidia guided to roughly 70% revenue growth next year. And that is not a demand forecast. That is a supply forecast. Yensen Wong, the CEO, said flat out that real demand is higher than that. Nvidia is telling you what they can physically build, not what people want to buy. Demand is not the variable anymore. Capacity is. And the money behind it is absurd. Nvidia said the top five hyperscalers will spend nearly $800 billion this year and $1.3 trillion in 2027. Their cloud industry backlog is now north of $2 trillion. Amazon alone committed to another 2 million GPUs. So AI just got a two-year extension confirmed by the one company that knows the industry best. Now, before I show you the stock and place this trade with you, listen, if you want the trades I'm taking, if you want me to teach you how to do this stuff interactively, click the link in the description. You need to sign up for my Black Ops trading service. It's five bucks. That's it for the entire year. And we're going to get together every week for an hour. You, me, and other members for live interactive group mentoring sessions. We'll look at what's leading the market. I'll show you the exact setups for stocks that could potentially explode higher, how to keep risk tight, when to sell. I'll show you exactly what I'm buying. I'll even look at your stocks. So, every week for a year, all for just $5, not monthly, for the whole year. So, click that link, scan the QR code, or just go to tradewith ross.com to get signed up. So, why did the memory stocks get dumped on after the best news they've ever received? Because memory companies don't get paid on price. They get paid on price times bits. And Nvidia is quietly cutting the bits. Bank of America reported earlier in August that Nvidia is testing its next flagship chip, Reuben Ultra, at as little as 192 to 288 GB of high bandwidth memory. Now, the original spec was for a full terabyte. That's a thousand gigabits. So, we're seeing an 80% cut. Now, that may not stick, but think about what it tells you. When Nvidia says memory is expensive, it's not complaining. It's telling you what engineers already working on. And they have options. Nvidia has SKH Highix carrying about 70% of its next generation memory with Samsung qualifying right behind them. That is how you manufacture competition among your own suppliers. Back in June, Google published a memory compression technique and the memory stocks fell on that news too. And that is the whole lesson of this earnings report and almost nobody is saying it out loud. Don't buy the bottleneck. By the bottleneck, your customer cannot engineer around. So Nvidia is spending real money in real engineering hours to need less memory. So the market kind of looked at the best news memory's ever gotten and said fine, but they're working on making you smaller. Now run that test somewhere else. Nvidia is not trying to use less power. It's not trying to use less cooling. Nvidia is deliberately on purpose making that problem bigger every single generation. Look at their own road map. Their next rack, Ruben Ultra, runs at 600 kilowatts. 600. And it has zero fans, complete liquid cooling because at that density, air simply doesn't work anymore. And that is not an analyst forecast. This is Nvidia's published product design for the back half of next year. You can compress a model to use less memory. Google already did it. Nobody has figured out how to compress a gigawatt. So, who builds that? The company is Veritive, ticker VRT. Veritive makes the power and cooling systems that sit inside data centers. Not the chips, the stuff that keep the chips alive. Power distribution, liquid cooling, thermal management. about 11.5 billion dollars in annual revenue and essentially all of it is data center infrastructure. So this is not a conglomerate with a data center division. This is a whole company and here are the numbers. Revenue grew 26% over the last year. They raised fullear guidance across the board. Organic growth 30% to 32%. 2.4 to 2.6 billion free cash flow. Oh, and their deferred revenue doubled in 6 months from 1.8 8 billion to 3.6 and that is customers paying them upfront. Nobody prepays a vendor that they could replace. Now watch what the market did with this. On Thursday, the morning after Nvidia's earnings report, Veritative Gap straight up almost 4%. Somebody connected it immediately and then by noon the stock had given it all back and then some. Think about what that tells you. The market looked directly at this, made the connection for about an hour, and it went right back to arguing about memory chips. That is not a stock that has priced in $1.3 trillion coming in. That is a stock nobody has finished doing the math on yet, and it's still roughly 30% below its 52- week high. So, let's take a look at Veritiff. Now, this is Nvidia. You can see the big move. I'm recording this midday on Thursday. Okay, the stock is currently up right about 10% uh on the day. Micron, you see the opposite. Small gap up, sold down. VRT gapped up now sitting about where it closed yesterday. But look at Veritative here. Okay, so you have a stock now. Listen, this thing has been an absolute monster for the last few years. I mean, God knows I wish I bought it at 35. I'd be retired by now. But here we are. So, we're not paying the crazy premium where it traded back here in May. It has pulled back from its peak roughly 30 to 40% sitting about 30% off its highs right now. But the reason I like it here on top of the fundamental story I just shared with you, look where we are. Stocks tend to go from acceptance, meaning an area that buyers and sellers kind of agree on. You see it just as choppy, not going anywhere, to price discovery. new news comes out, it's worth more than we thought or less than we thought until it reaches a fair price and participants agree on it. Price discovery and then more price discovery obviously in the other direction. But when it pulls back, it tends to go to the last area of acceptance and that's this kind of 240 to 270 range in here. And notice roughly right here where it stopped in July, pushed up right where it's sitting now. So, it's sitting here on its 200 day simple moving average, which is kind of the defining line between stocks in long-term uptrends and downtrends. It's right here at a previous acceptance area. It got, whether the market realizes it yet or not, extremely good news for the future uh uh of this company's demand for their products and what's going to taper down into their their revenue and their profit, etc. So, I'm going to buy some stock here uh in Veritiff and I'm not going to take a big risk on that. We're not yoloing. We're not let's see what happens and cross our fingers. I'm going to keep it pretty tight because my thought process is if our thesis here is correct, Wall Street should realize this pretty quickly. And if they do, they'll start buying and drive it up higher. If however the stock sells off and goes down to 240 and 230 and 220, we are either wrong or early. So this is a way I could risk five six 7%. And if I'm right and we get back into new highs and beyond, you're talking 30, 40 plus% uh on the upside. Okay. So let me do some quick math here. We're trying to get roughly $50,000 position in this stock. Stock's trading around 266 a share. So 50K divided by 266, we get about 188 shares of stock. Okay. So let's pick up 188 shares. Uh try to get it here at 266 even. See if we can split the bid and ask. I will put a stop loss in. I'm going to adjust this in just a moment. Just want something on the books. Let's see if we can get filled at 266. Nope. Somebody just outbid me. Well, we'll just move it up a couple hairs here. Take it to the market. Okay. So, we're long here from roughly 266. And look at how look at the low. So, this is last week's low. Uh I'm sorry, this week's low, Monday. You're at 249ish, which is currently about 6.7 6 and a half% below the current price. Now, this is a very tight stop. I'm going to publish this video tomorrow, so roughly 24 hours have passed between when I buy it and when you receive when you see this. So, things could have changed, but I'm going to move my stop up here to 248 even. And listen, this is not a small little company I or you or any of us are going to move. This is a $12 billion company. Regardless of whether I buy a hundred shares or 100,000, I'm not going to be moving the price here, but this is a a a tight stop. It may or may not work, but what we're getting is really good odds on our money. We're testing a thesis. If it is correct, this thing should rise 20, 30, etc. percent. We'll be in early at a great turning point. If we're wrong, fine. trying to lose 6% 6 and a half% and live to fight another day. Okay, so that's Veritative. Again, the ticker is VRT. Now, like I said, if the stock cannot hold above the last couple of weeks low with $1.3 trillion of capbacks confirmed, then either I am early or I'm wrong, and I don't want to be in while I find out. Now, to be clear, there are two things I don't love, and you should hear them. For one, Veritiff stopped disclosing its backlog number in the second quarter, and companies tend to headline their backlog when it's growing. And every big industrial is trying to buy their way into this business. Eaton paid $9.5 billion for void thermal. Eolab paid 4 and 3/4 billion for cool it. Train bought liquid stack. So there is competition and that is real. But the demand is not a story. It is a published spec sheet. Nvidia has already told the world what its racks will require in 2027, and somebody has to build the power and cooling to match it. Wall Street's average price target on Veritative sits around 388. That's where the analysts already are, and I think they're behind. I believe this stock could take out its old high near $380 toward the end of this year or in 2027. And if Nvidia builds even most of what it just guided to, it could be worth a lot more than that over the next two to three years. Folks, don't forget to subscribe to the channel and don't forget to join my Black Ops trading service. It is five bucks, folks. No hidden triggers, no renews at a million dollars a year, none of that. It's just five bucks. We even built a QR code over here. You can just scan, sign up for that. But we'll get together live every week. You'll get another session with my analyst every single week for a year, plus my industry strength indicator, plus my weekly newsletter sent to your inbox, bonus reports, a ton of stuff in there, just five bucks. So, click the link, scan the code, or just go to tradewithross.com to get signed up.