Nvidia, the mother of AI, pumps lifeblood into stock market
From YouTube
Record results for the mother of AI, prove there is no AI bubble
The mothership of AI, $NVIDIA (NVDA.US)$, delivered another better-than-expected report card and outlook — throwing cold water on worries of an AI-spending bubble. And it was exciting to see that, unlike many of its past post-earnings reactions, this one has been positive — and that’s very telling for several reasons.
Shares in the world’s biggest company rallied 5% to $195.75 in after-hours trade. Recently, Nvidia’s share price has tended to fall even after delivering show-stopping results. This suggests this time is different, with dip-buyers taking advantage of its recent pullback, which left the stock 12% below last month’s record all-time high.
What’s compelling for shareholders — and what will also encourage new investors to buy Nvidia here — is that Nvidia not only delivered a blowout set of numbers, but its outlook is brighter than ever. Founder and CEO Jensen Huang said: “Blackwell sales are off the charts, and cloud GPUs are sold out.”
– Record revenue of US$57.0 billion, up 62% from a year ago
– Record data-centre revenue of US$51.2 billion, up 66% year-on-year
– Gross margins of ~73.4% for the quarter (for context, CBA’s margin is near 2%)
It seems more AI momentum lies ahead. Nvidia expects fourth-quarter revenue of about US$65 billion, beating analysts’ expectations of US$62 billion. And on a yearly basis, Nvidia is also on track to deliver more annual net income than Intel and AMD combined. Zooming out further, Huang says the company has US$500 billion in orders across 2025 and 2026 for its AI chips. That’s extremely compelling.
The tech giants are all leaning in too. Microsoft, Meta, Amazon, and Alphabet have lifted their capital-expenditure forecasts due to AI buildouts — collectively expecting to spend more than US$380 billion this year, with a large chunk directed towards Nvidia’s technology to future-proof their businesses.
My four takeaways for Nvidia are:
1️ Demand remains exceptionally strong. Nvidia’s bullish outlook shows clients like Microsoft, Amazon, Tesla, and Palantir continue increasing orders — even at premium prices — because its chips are powerful and essential to their ecosystems and growth.
2️- Nvidia is the only mega-cap delivering almost 60% revenue growth, with roughly 60% of its customers coming from the Nasdaq-100. Its chips are powering the growth behind Microsoft, Meta, Amazon, Alphabet, and Tesla, as well as China’s Alibaba and Baidu-backed Temu.
3️- This is not just a win for Nvidia — it’s a win for the entire stock market. Nvidia accounts for 8% of the S&P 500 and 10% of the Nasdaq-100.
4️ - The big question: buy, hold, or sell. Nvidia has a long history of recovering from pullbacks and then hitting new record highs. The average investment bank rates it a BUY. 91% of ratings are a BUY, seeing 27% upside to $237. After tonight’s result, several brokers upgraded the stock. And you should expect more upgrades.
Other stocks to add to your watchlist
$Constellation Energy (CEG.US)$ was the best performer in the Nasdaq 100 overnight, rising 6% after the Trump administration vowed to give the company a $1 billion federal loan to restart its nuclear plant. Three Mile Island Unit 1 now has the green light to begin producing nuclear power again in 2027, after being shut for eight years.
The first loan advance is expected in the first quarter of 2026 and comes with a guarantee that Constellation Energy will protect taxpayer money, the DOE said.
$Block (XYZ.US)$ was the second-best performer in the S&P 500 overnight, rising 7.1% after saying it expects profit growth to ramp up over the next three years. Block sees 17% gross profit growth year-on-year, reaching $11.98 billion in 2026 and $15.8 billion by 2028. How is Block planning to increase profit? The payments firm, led by Jack Dorsey, plans to launch products at a faster pace, while doubling down on getting its leading consumer app, Cash App, to integrate more deeply with its merchant payment system, Square.
It’s also seeking to popularise Bitcoin for everyday payments. Expect the ASX-listed Block to mimic that trend. Consensus among analysts is that Block is a ‘Buy’. It received four upgrades overnight, including one from Morningstar. Analysts see the share price rising 33% to $82.46, from $62.00.
$Australian Agricultural Co Ltd (AAC.AU)$ delivered stellar results, with operating profit up 97% on the year and net profit reaching $82 million. EBITDA more than doubled, helped by cattle sales rising 71% year-on-year.
What’s ahead? The company expects tighter global beef supply, which could put upward pressure on beef prices. Beef prices are already up 14% this year. Bell Potter rates AAC a ‘Buy’ with a $1.90 price target.
What’s ahead? The company expects tighter global beef supply, which could put upward pressure on beef prices. Beef prices are already up 14% this year. Bell Potter rates AAC a ‘Buy’ with a $1.90 price target.
What else you need to know
The Nasdaq is the winner, up 0.6%. The S&P 500 is also higher, which is good to see after four straight down days — but it’s still 3.9% below its record high. There’s very selective stock-picking underway, especially after the Fed meeting minutes showed the Fed may not cut rates this year. Both Barclays and Morgan Stanley raised their year-end targets.
Bitcoin continued to bleed. It fell as low as $88,522 and is now around the $90,300 level — down 28% from its $126,000 high. Leveraged buyers are trapped, and there is a risk of a systematic squeeze ahead.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
Read more
Comment
Sign in to post a comment
Jessica Amir
Moomoo Market Strategist
moomoo, market strategist.
Seen/heard on Fox News Business, ABC, SBS, Reuters wires.
Investor/Trader.
9822
Followers
20
Following
23K
Visitors
Follow
VSM : I agree
strongly agree with you, Nvidia very important mother board 
Thank you, Moomoo for edition and Aurthor 
anymore like NAVDA around
explaining component and expedition development of procedures to processing units that collaborative working the unique design primarily provides information business and services
75266175 VSM : Spoke too soon. Even worse reversal. I'm not anti-NVDA, but all major US indexes are showing very bearish short term indicators except the DOW which is why I'm not completely anti-NVDA, but I think it will be a laggard while other positive but previously lagging sectors like healthcare catch up.
Mixed jobs report with likely sustained to increased inflation and no good data coming means Fed will likely hold rates. They got their positive que in increased job growth for the more cautious fed voters to push for a hold for better data and see if the current reduction has sparked a reversal in job growth momentum. While non-recession is good the early pause of reductions takes some wind out of the sails especially for over-leveraged tech.