Nvidia Stock EXPLODES After Blowout Earnings - Do This NOW!

Well folks, Nvidia has now officially released their fiscal year 2027 Q2 earnings and they were an absolute blowout. And as a result of these fantastic earnings, we are now seeing Nvidia stock price going absolutely nuts. Currently up from bottom to top in just the last 90 minutes around 7.5%. We're not talking about some penny stock. We're not talking about some micro cap, some meme play. know we are talking about the largest company in the world $5 trillion in market cap moving over 7% within the span of just 90 minutes as a result of this report and it's not only isolated to Nvidia we're seeing a Micron making moves we're seeing SanDisk making moves we're seeing some of your other players in the space like SKH making moves we're even seeing some of the hyperscalers making moves and rotating into semiconductors right now all as a result of this report and so in today's video I wanted to give you a quick update breaking down exactly what happened and what I think this means for the AI sector moving forward and the stock market as a whole moving forward. Now, I do want to remind you I am, you know, currently on a trip for my wife's birthday. So, I'm sorry that the quality maybe isn't so great, but nonetheless, I'm here to bring you guys the value and this is an absolutely massive moment for the market. So, let's go ahead and let's jump in. So, going into this report, I told you all listen, Nvidia is going to beat earnings. Nvidia is going to beat EPS. We all, this is what they do, right? That's not really a question. I said there's a world in which they don't, but it's not very likely. 99% chance they beat earnings. The question is by how much. I told you the market, Wall Street, is looking for them to release $92 billion worth of revenue and $28 of EPS. But realistically, you got to add 3% on top of that because Nvidia is a 3% sort of company. Whenever they beat on average, it's by 3%. So, if they don't beat by at least 3%, if we don't see at least $94.9 billion worth of revenue, at least $2.14 worth of EPS, I don't think the market's going to be happy and it's going to catch a lot of people off guard. Let's say they come out with 93.8 billion. Yeah, that beats Wall Street expectations, but you're sub 3% and Wall Street's not actually going to like that. So, I told you you're looking for at least 95 billion and at least $2.14. If we don't get that, it's going to be bad. All right, but that's what we got. But we got better than that. We got a $96.2 billion release on revenue, which is a 106% year-over-year reading, a tripledigit beat on revenue year-over-year, and $222 in EPS, which is an 111% move year-over-year. Triple digits on EPS as well, really being fueled by data center growth, which is expected to come in at $86 billion, and came in at $89 billion, $3 billion more in revenue than the Wall Street was expecting, which is fantastic. Not particularly surprising, especially with the, you know, what we've been seeing from the hyperscalers recently, but absolutely smashing. And in addition to all that, gross margin came in at expectations at 75%, which is what I personally was looking for. The 3% rule is a bit of an exception with gross margin because gross margin is much much much uh different in the grand scheme of things. Right. Now, one thing that I will say just to kind of foreshadow a little bit, they are expecting gross margin to reduce to 74% moving forward, which is something to pay attention to, of course, because some of these memory components are getting more expensive, and it can eat into their net income. But all in all, it was an absolutely fantastic report across the board, and the guidance was even better, baby. Wall Street was expecting them to guide $104 billion in revenue. They guided $18 billion worth of revenue, which means they're probably going to do 110, 111, 112 billion worth of revenue, something like 90 to 94% year-over-year and the next quarter. And absolutely fantastic guidance, which means that this baby is still going. This AI train is still a chugging. And all the people who are saying it's dying are going to now be delayed another quarter when they try to call it correctly. Now, if we peel back this onion a little bit, you know me on this channel, we don't only look at earnings, we don't only look at guidance. We look a little bit deeper and the things that we were looking for below the surface are also coming in exactly like we were looking for. Vera Rubin, according to the call that we just heard, is still on track. It ships this quarter and manage management says that it will surpass Blackwell. Remember, they're expecting that to contribute to over a trillion dollars worth of revenue when combined with Blackwell over time. And it seems as if that is going to continue in that direction, which is fantastic and means that demand that they're looking for is roaring. As we saw, data center revenue is up 117% with a $1 trillion order book behind it. And remember, we also have these major financing deals that are going to be coming that should be applicable towards these NEOClouds being sourced from some of these major institutions and banks, which in many ways could be absolutely huge for Nvidia's revenue moving forward. and the wild card that I told you all about. China is still a free option. It was left out of guidance entirely. So remember, one day that China card is going to get dropped on the table, that's not priced in right now. It's still not priced in after this earnings report. And eventually something's going to happen. Maybe it's with the with these H200s or I don't know. We'll kind of see how it plays out. I think in which you will see that China card go into play in which they can actually generate a bit of revenue from that source as well. And considering again that's not being priced, then that could be something huge for the Nvidia price moving forward. And so all in all, this was an absolutely fantastic earnings report and it makes sense as to why we are seeing Nvidia's price moving how it is. Currently sitting at $219 at the time of recording and erasing a lot of the losses that have been put in over the last couple days. As we can see, you're not going to have the candle printing right quite yet, but the price is currently up here erasing all of the losses since Wednesday, August 19th of last week. and who knows maybe going to look to be on track to try to continue a bit higher. Now, a lot of people are going to say, Tyler, does this mean that Nvidia is back? That semiconductors are back and that we are about to see them all continue up. Well, I don't I don't quite know, right? What I do know is that this is good for the AI sector and it's the reason why you're seeing Micron pumping, SanDisk pumping, other semis pumping, right? Hyperscalers getting rotated out of it makes a lot of sense for the AI sector, especially the semiconductor sector, um, to continue upwards. But you have to remember there's a whole lot going on outside of just Nvidia's earnings. We have the bond yield situation. We have economic D-Day. We have inflation. We have potential interest rate hikes coming if this whole inflation thing doesn't move in the right direction. There are many other catalysts that are impacting the market that could put constraint on a high beta asset class or a high beta sector within a major asset class like AI. So it definitely doesn't guarantee that this is going to last. But this is absolutely the boost of life that the AI sector needed. This is the boost of life that the semiconductor semiconductor sector needed. And I definitely think there is a world in which this does try to continue upwards. But what you do not want to do is try to guess today. Okay? Don't guess today. The best thing you can do is look tomorrow. What we're going to see is the market respond. We're going to have South Korea waking up. We're gonna have the other Asian markets waking up, the European markets waking up. They're going to absorb this information. They're going to look to see how they feel about it. They're going to position with their leverage. And then we're going to know how the world feels about this news. And that'll give us the input that we need to determine whether or not that, you know, Micron is back. Is Micron about to chase down a thousand bucks? Is Nvidia about to chase down this previous high, this recent high at 220, 230 bucks? That's how we're going to know how the market truly feels. It's still too early to tell. And I don't want you guys to guess. Don't assume just because we have a green candle right now that we're going to have a green candle tomorrow or a green candle next week, especially with some of these other catalysts that are impacting the market right now. That would be a bad bad bad mistake. Let's give it 24 hours. Let's see how the market responds when it wakes up. When Europe Europe wakes up, Asia wakes up and then we'll go from there. But one thing that I do know in the grand scheme of things, if we zoom out further than that, if we zoom out the last week or the next week, if we zoom out the next month and we look at this from a macro perspective, this is absolutely fantastic for the AI sector. And this is great for the stock market because let me make one thing very clear. After the PCE data that we got this morning, that is going to contribute to the uncertainty that's in the market, which we talked about in this morning's video. The market was on edge. I guess this thing agrees, but the market was on edge, right? People are so on edge. Institutions are so on edge. They're seeing this environment in which bond yields are climbing and the US is basically taking all these sanctions and tariffs and putting it on these countries to try to force Iran out of the situation so they can get out of this situation they're in because they realize they made a mistake. The market's super nervous right now, right? And had Nvidia come out and upset the market, let me let me let me let me let me tell you something. If Nvidia would have come out and missed earnings by plus 3%, I'm not talking about the Wall Street expectations. I'm not worried about that. I'm talking if they would have beat only by 1% 1.5% the market would go the only thing that's been holding the US economy up is AI, hyperscalers, Nvidia, and even that slowing down. And this would have been one of those catalysts that could have caused mass, I'm talking apo apocalyptto levels of red across the market. We could have seen four, five, six, seven, eight, nine, 10% falls across the market, even in some of your top 10 players as a result of it. The market was on edge. And what Nvidia just did was backed them off the edge a little bit. It said, "Listen, although things are going maybe poorly in the government scene, geopolitical, we are still holding up our end of the bargain. We're still doing a good job. We're still keeping this bad boy afloat." And remember, the US is banking on that. You remember whenever they asked um Scott Bessant, they said, "Hey, what's the plan for this whole inflation problem? How are we going to get to disinflation? How are we going to get the economy out of this? He named the AI trade. He said these AI players, these hyperscalers, they are going to contribute to disinflation. They are going to be a part of the solution essentially. So the US is betting on the AI trade working out. And Nvidia said, "Yeah, we got this. We're doing our job right." And although again, it can't save the stock market, it definitely just stopped us from seeing a destructive pullback across the entire market. And I do think this is exactly what we needed after that PCE data this morning. So, all in all, this was about as good as you can get. A beat across the board, seeming optimism across the board. And again, is it going to be enough to stop the market from pulling back? You never know, right? Nvidia usually pulls back after earnings. Whether or not it's good or bad, it doesn't that's not really the case. But if you zoom out further than the next, you know, couple 24, 48 hours, the next week or two, I do think all in all, this is a huge net positive for the AI sector, a huge AI uh positive for the the stock market as a whole. And I think for those of you out there who have been a little nervous and a little bit tense for this moment, you can take a bit of a deep breath and go, okay, we got through that. Let's let this whole, you know, geopolitical situation play out. Let's see what happens from economic D-Day. Let's go from there. But the big thing that could have really collapsed this entire market, we avoided it and that's a good thing. All right, so take a deep breath. We're good. Let's just kind of see how the rest plays out. Let's see what Kevin W says on Friday at Jackson Hole and we'll go from there. But look, I got to go. I'm currently out. As I mentioned before, my wife's birthday trip and I don't want to take too much time, but I just wanted to jump in and let you guys know, look, catastrophe avoided essentially, we're good. If the market decides it wants to pull back anyway, let's say Nvidia pulls back anyway. We start to see semiconductors pulling back anyway. I'll just jump in and start buying that dip because it would be purely based on emotion and nothing fundamental. Nothing fundamental would have changed. This is a purely emotional pullback and I will be buying that dip and I'll update you guys in TH Capital if I do decide to go in and start doing some buying. But just assume if you see the market pulling back, you see the S&P 500 pulling back, you see SMEs and hyperscalers continuing to pull back, I'm buying that dip because they're doing it off of emotions, not intrinsic value decreasing. All right, so I'll be here tomorrow as per usual updating you. Wanted to just jump in and give you an update. Uh if you didn't get a chance to watch this morning's video when it comes to PCE data, that is absolutely still in play. The uncertainty being brought into the market by this geopolitical situation with bond yields is absolutely still in play. So make sure that you go give that a watch and I'll see you all in the next one. By everybody.