>>>We’ll continue the conversation from Wednesday’s show at 11:30 AM ET on Market Masters — how to make your own indicator from scratch to test out various ideas, and a high-probability algo trade that triggered recently!<<<
Nvidia just reported earnings, and Wall Street is having a meltdown over what I call “the world’s most successful failure.” Picture this: Your straight-A student comes home with a 95% and you ask why it wasn’t 98%.
That’s literally what happened here.
The ‘Disaster’ That Wasn’t
Nvidia beat earnings ($1.05 vs $1.00 expected) and revenue ($46.7B vs $46.2B). But their data center revenue “missed” by $200 million on a $41 billion number. That’s like missing your diet goal by half a pound and declaring it a complete failure.
The stock fell as much as 2.8% overnight because apparently, 56% year-over-year growth isn’t impressive enough anymore. This was the second consecutive quarter data centers missed estimates, which tells me analysts have been smoking premium hopium expecting infinite exponential growth.
The China Wild Card
Here’s where it gets interesting…
Zero H20 chip sales to China this quarter. But Nvidia is stockpiling inventory like it’s preparing for Black Friday. Why? It’s betting Trump might ease restrictions, allowing China sales in exchange for 15% revenue to the U.S. government.
Translation: billions in potential revenue currently not priced into the stock. It’s like having a forgotten lottery ticket in your back pocket.
The Smart Money Moves
While everyone panics, Nvidia authorized another $60 billion in buybacks. That’s not a worried company—that’s a company that thinks its stock is cheap.
Investment Opportunities:
- Nvidia — Buy the overreaction. Still dominates AI chips, growing 56% annually
- AMD — Finally a real competitor, targeting 6-8% market share by 2027 with MI350 series
- Infrastructure plays — Taiwan Semiconductor (TSM), Broadcom (AVGO) benefit from $375B annual AI spending
This “miss” reminds me of Mike Tyson’s quote…
“Everyone has a plan until they get punched in the mouth.”
Nvidia just got reality-checked, but it’s still standing, still profitable, still dominating.
Global AI infrastructure spending hits $500 billion next year. Cloud providers remain 50% of Nvidia’s business. Blackwell architecture grew 17% sequentially.
While Wall Street has a tantrum over a 0.5% revenue miss, smart investors ask: “Do I want the world’s most dominant AI company at a discount?”
The best opportunities often come disguised as disappointments.
Jeffry Turnmire
Jeffry Turnmire Trading
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I’m just a regular dude in Knoxville, Tennessee: a husband, father, civil engineer, urban farmer, maker and trader.
I’ve been at this trading thing with real money for 20-plus years, and started paper trading over 35 years ago. I have a knack for making some epic predictions that just may very well come true. Why share them? Because I like helping other people — it’s the Eagle Scout in me.
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. Could Gold Hit $10,000 this year?
This chart pattern suggests we could…
Last time I saw something similar was back in 2020… and it helped me turn $250k to over $1.4 million
