NVDA is the most fascinating stock I’ve seen since I started working in the markets almost six years ago, and it isn’t particularly close.
It’s currently the second-ranked company in the world by market cap, behind only Apple.
But relatively speaking, it’s come out of nowhere.
I mean, take a step outside of your “trader’s brain” for a second and think about it…
Almost every other company in the top ten, with the exception of TSMC (which falls into a similar category as NVDA) is a household name.
They’re massive, global companies that have spent decades making products everyone knows, building brands that have shaped the world along the way.
NVDA, though it was founded in 1993, has not been prominent in the same way.
Though many people might have used their products without knowing it, there’s no iPhone or Windows ‘95 or Facebook they can point to and say, “this is our brand, everyone knows it.”
Even to this day, NVDA’s actual product penetration can’t begin to compare to the Apples and Googles and Amazons of the world.
Its stock price is massively driven by speculation about the future of Artificial Intelligence.
That’s not to say that NVDA isn’t an incredibly valuable company or isn’t a good bet on the future — I wouldn’t agree with either of those statements.
Everyone’s familiar with the “sell pickaxes and shovels” approach — the idea that if there’s a gold rush (A.I., in this case), the best businesses will be the ones that sell the tools everyone needs to be on the same playing field.
NVDA does that for A.I. by producing the chips that most think are essential to A.I.’s future.
But it would be naive to pretend that NVDA’s price isn’t speculative — based entirely on the idea that the future of A.I. runs through Jensen Huang and his company’s semiconductors.
Why else would DeepSeek’s claims that it had produced a LLM without NVDA chips at a fraction of the cost and time of ChatGPT have sent NVDA spiraling to the single biggest one-day market loss in history?
Investors panicked because it challenged the bedrock assumption that A.I. depended on NVDA to proliferate.
Investors are very emotional about NVDA, which means the stock is extremely volatile.
In fact, NVDA has suffered eight of the top ten worst single-day market losses in history:
That doesn’t mean traders should panic or liquidate their shares of NVDA.
It does mean you have to be prepared.
Which is why I think Wednesday is massively important — I honestly believe NVDA’s earnings report after the markets close on Wednesday is one of the most important earnings reports in history (or at least that I’ve experienced in six years of working with this stuff every day)
The potential for a massive move in either direction, not only for NVDA, but for the broader market, is massive.
Think about it:
NVDA reports strong earnings, quiets concerns about the future of AI, announces as big investment in the U.S. economy like Apple did yesterday, and suddenly, the markets stabilize and everyone is happy again.
Vs.
NVDA’s earnings disappoint, Huang admits that there are new challenges from China that make the future cloudier, they lower guidance — panic. Bloodshed. Doomsday. Ragnarok.
There’s a lot on the line.
Which is why I’m so excited that we’ve been able to assemble a team of the top experts to join me and Sarah Sinanan on Wednesday to give their real money trading plans and strategies for NVDA’s earnings.
It’s the first Roundtable event I’ve gotten to put together — I expect it won’t be the last. But I’m confident it will be one of the most important.
So reserve a seat here if you haven’t already
I can’t wait to see you Wednesday at 2:30!
To your prosperity,
Stephen Ground
Editor-in-Chief, ProsperityPub
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