Key Takeaways Micron posted fiscal Q1 2026 revenue of $13.64B, up 56.8% year over year, driven by AI-related memory demand.MU expects stronger Q2 2026 results, projecting $18.3-$19.1B in revenue and EPS of $8.22-$8.62. NVIDIA posted $57B in fiscal Q3 2026 revenue as Blackwell chips and cloud GPUs sold out. Banking on the artificial intelligence (AI) boom, Sanjay Mehrotra-led Micron Technology, Inc. (MU) outperformed Wall Street’s darling NVIDIA Corporation (NVDA) last year (+239.1% vs +38.8%). Can Micron re ...

Core Viewpoint - AMD's management is optimistic about its future in the data center market, aiming for significant growth despite current challenges in competing with Nvidia [1][4]. Group 1: Market Performance and Projections - AMD has outperformed Nvidia in 2025, with an 80% increase compared to Nvidia's 35% [2]. - AMD's data center revenue rose 22% year over year to $4.3 billion in Q3 2025, while Nvidia's data center revenue reached $51.2 billion, up 66% year over year [5]. - AMD's management projects a 60% CAGR for its data center division over the next five years, exceeding the 38% CAGR needed for a fivefold return [9]. Group 2: Competitive Position and Opportunities - AMD's ROCm software downloads increased tenfold year over year as of November 2025, indicating potential for competitive growth against Nvidia [4]. - Nvidia's current supply issues with cloud GPUs may lead clients to seek alternatives, positioning AMD as a viable option due to its lower price point [7]. - A recent agreement with the U.S. government allows AMD to export downgraded GPUs to China, which could significantly boost AMD's revenue in the long run [8]. Group 3: Profitability and Growth Potential - AMD's overall CAGR is projected at 35%, slightly below the required 38% for a fivefold return, due to slower growth in its consumer hardware and embedded processor divisions, which are expected to grow at 10% CAGR [9]. - Improving profit margins to the 15% to 20% range could double profits from revenue, providing an additional growth lever for AMD [12]. - If AMD can achieve both revenue growth and improved profit margins, it may surpass the necessary CAGR for substantial stock returns [10][12].

The skeptics may doubt that the rally is sustainable and might see $500 as an impossible dream. Yet, as the data will reveal, NVIDIA is a chip-making powerhouse in the age of artificial intelligence (AI). So, keep an open mind as NVIDIA stock's upside potential is considerable. Is NVIDIA the Next Cisco? It's the darling of the financial markets and the undisputed heavyweight champion among U.S.-based processor producers. Truly, NVIDIA (NASDAQ:NVDA) is roundly revered and to many traders, NVIDIA seems unstop ...

The artificial intelligence (AI) behemoth and the chip giant NVIDIA Corp.’s (NVDA) stock has gained about 34% so far this year. The returns are solid but not great, as the stock has surged about 1150% since the start of 2023.Since then, the stock has seen an immensely sharp and steady momentum on the AI boom, but hit a roadblock in early 2025 due to Trump’s tariff concerns. However, the slip was momentary as the NVDA stock rebounded from late April 2025.Let’s find out what awaits NVDA shares in 2026.NVIDIA’ ...

Core Viewpoint - Nvidia's recent quarterly results indicate strong growth in AI demand, suggesting that AI spending is still on the rise rather than peaking [1][2]. Group 1: Revenue Growth - Nvidia reported third-quarter revenue of $57.0 billion, reflecting a 62% year-over-year increase and a 22% increase from the previous quarter, marking the first acceleration in revenue growth after six quarters of deceleration [3][4]. - Data center revenue was a significant contributor, reaching $51.2 billion, up 66% year-over-year and 25% sequentially, driven by demand for AI training and inference hardware [4]. Group 2: Profitability Metrics - The company's gross margin on a non-GAAP basis was 73.6%, an increase from 72.7% in the previous quarter, indicating strong pricing power [5]. - Non-GAAP operating income was $37.8 billion, up 62% year-over-year and 25% sequentially, suggesting an operating margin in the mid-60s percent range, which is notable for a chipmaker in competitive markets [6]. Group 3: Share Repurchases - Nvidia returned approximately $37.0 billion to shareholders in the first nine months of fiscal 2026 through share repurchases of $36.3 billion and cash dividends of $732 million [8]. - The company had $62.2 billion remaining under its current share repurchase authorization as of the end of the third quarter, indicating strong financial flexibility [9]. Group 4: Future Guidance - Management's guidance for the fourth quarter anticipates revenue of $65.0 billion, implying approximately 65% year-over-year growth and about 14% sequential growth from the latest quarter [10]. Group 5: Earnings Performance - Non-GAAP earnings per share for the third quarter were $1.30, up 60% year-over-year and 24% sequentially, while GAAP earnings per share also rose 67% year-over-year to $1.30 [11].

Core Viewpoint - Nvidia reported a strong quarter with a 62% year-over-year revenue increase and positive guidance, yet faced investor skepticism despite bullish consumer sentiment [3][6][15] Financial Performance - Revenue increased by 62% year-over-year, indicating robust demand [3] - Nvidia's shares have risen approximately 35% year-to-date, while AMD has outperformed with a 70% increase [17] Market Sentiment - There is a notable gap between consumer sentiment, which remains bullish, and investor sentiment, which has turned cautious [3][6] - The discrepancy in sentiment may stem from concerns over rising accounts receivable and inventory levels [4] Competitive Landscape - Nvidia is viewed as the clear leader in the market, commanding about 55% of market share, while AMD is gaining momentum and improving its offerings [10][20] - AMD is positioning itself to capitalize on AI compute demand, particularly in AI inference [19] Infrastructure Challenges - The primary bottleneck affecting Nvidia's growth appears to be infrastructure-related, with challenges in building data centers and securing necessary power [4][15] Long-term Outlook - Long-term data supports a bullish position on Nvidia, with demand expected to continue rising [5][15] - The overall macro trends indicate sustained growth in AI and related technologies, with Nvidia well-positioned to benefit [14][15]

Core Insights - Nvidia's recent earnings report exceeded expectations, reinforcing confidence in the AI infrastructure boom and dispelling concerns about an overheating market [2][3][4] Financial Performance - Nvidia's revenue guidance for the current quarter was raised to $65 billion, surpassing analyst predictions of $62.1 billion [3] - The data-center segment generated approximately $51.2 billion, indicating robust demand for AI infrastructure [3] Market Reaction - Despite Nvidia's strong earnings, the broader market experienced a reversal, reflecting skepticism about the sustainability of the AI boom [6][7] - The S&P, Dow, and Nasdaq all turned negative after initial gains, suggesting underlying tensions in the market [6] Labor Market Insights - The U.S. economy added 119,000 jobs in September, significantly above the Dow Jones estimate of 50,000, indicating a healthier labor market [8][9] - The unemployment rate rose to 4.4%, the highest since October 2021, with job gains concentrated in healthcare and restaurants [9] Interest Rate Outlook - The stronger-than-expected job growth has led to increased speculation about a potential interest rate cut by the Federal Reserve, with the probability rising from 30% to 42% [10][11] Wealth Disparity - Nvidia's success highlights the growing wealth divide driven by technology and AI, with a significant portion of its employees now millionaires [14][15] - The concentration of wealth among tech employees contrasts sharply with the economic struggles faced by a large segment of the population [15][16] Investment Strategy - The healthcare sector is presented as a more balanced investment opportunity, with valuations at historic lows compared to the S&P 500 [20][24] - Companies like Pfizer and Bristol-Myers Squibb are highlighted for their strong fundamentals and potential for growth, despite current market conditions [21][22][24]

Core Insights - The growth in AI demand is substantial and not imaginary, as evidenced by Nvidia's strong performance and market dynamics [1][3][5] Company Performance - Nvidia reported a 62% year-over-year revenue increase, with data-center sales reaching approximately $51.2 billion and gross margins nearing 75% [3] - The company provided guidance that was $4 billion above market expectations, indicating strong future performance [3] - Nvidia's supply commitments saw a 63% sequential increase, highlighting robust demand from hyperscalers [2] Market Reactions - Despite Nvidia's impressive earnings, the stock experienced volatility, dropping nearly 3% after an initial surge, reflecting broader market anxieties [4][8] - Analysts expressed mixed feelings, acknowledging Nvidia's strong quarter while also noting ongoing concerns about valuations and macroeconomic factors [9][12] Infrastructure and Demand - The future of Nvidia's growth is closely tied to infrastructure developments, particularly in electricity supply, which is currently not equipped to handle the anticipated demand [11][12] - There are concerns about the sustainability of the current pace of AI infrastructure buildout, with potential bottlenecks in power supply and regulatory scrutiny [13][14] Industry Context - Nvidia's performance is seen as a bellwether for the AI sector, with its success influencing broader market sentiment [6][14] - The ongoing investment in AI capital expenditures (capex) suggests that the demand for Nvidia's products remains strong, despite fears of an "AI bubble" [6][12]

Core Insights - Nvidia's stock declined by 3.15% despite reporting better-than-expected Q3 earnings and a strong outlook for Q4 [1] - The company projects Q4 revenue of $65 billion, exceeding Wall Street's expectation of $62 billion [2] - Nvidia's Q3 earnings per share (EPS) were $1.30 on revenue of $57.01 billion, surpassing analyst expectations [3] Financial Performance - For Q3, Nvidia reported EPS of $1.30 and revenue of $57.01 billion, compared to analyst expectations of EPS of $1.26 and revenue of $55.2 billion [3] - The data center business generated $51.2 billion in revenue, exceeding estimates of $49.3 billion, while gaming revenue was $4.3 billion, slightly below the $4.4 billion estimate [3] - Year-to-date, Nvidia's stock is up over 37% and 25% over the last 12 months [6] Market Dynamics - CEO Jensen Huang highlighted strong demand for Blackwell sales and noted that the AI ecosystem is rapidly expanding across various industries and countries [2] - CFO Colette Kress mentioned that the revenue from the China-specific H20 chip was "insignificant" [4] - Notable sell-offs occurred from Peter Thiel's hedge fund and SoftBank Group, which sold their stakes in Nvidia valued at approximately $100 million and $5.8 billion, respectively [5] Competitive Landscape - Advanced Micro Devices (AMD) CEO Lisa Su projected that the data center market could reach $1 trillion by 2030 [5] - Nvidia's market capitalization briefly surpassed $5 trillion last month, indicating significant investor interest [4] Investor Sentiment - Despite Nvidia's gains, investor Michael Burry expressed concerns about companies artificially inflating earnings by understating data center equipment depreciation [7]

Core Insights - Nvidia's earnings report has become a significant event in the stock market, drawing attention even from those not invested in the company [1] - The company exceeded expectations in its latest earnings report, particularly with a sales-forecast increase for the fourth quarter [2] Group 1: AI Spending - CEO Jensen Huang expressed strong confidence in the sustainability of AI spending, highlighting that demand for compute resources is accelerating and compounding [3] - Nvidia's revenue forecast for the fourth quarter indicates immense demand, reflecting a strong market for AI technologies [4] - Satisfaction score for AI spending outlook: 10 out of 10 [4] Group 2: Competitive Position - Nvidia emphasized its competitive advantage in chip performance and its collaborations across various industries, showcasing the widespread adoption of AI [5] - The company is projected to generate more annual net income than the total sales of rivals Intel and AMD, indicating strong financial dominance [5] - There is uncertainty regarding Nvidia's operations in China, as the company did not budget any sales for the fourth quarter in that market [6] - Satisfaction score for competitive position: 8 out of 10 [6]