Nvidia expects $108b in Q3 revenue and projects FY28 revenue to grow about 70%. Management explicitly said customer forecasts point to demand that could support roughly doubling again next year, but it’s guiding to only about 70% growth because it doesn’t currently have enough supply to satisfy all that demand.

The largest company in the world by market cap, already $5.5T, shouldn’t be growing like a young company. But that’s exactly what Nvidia is doing. It has boomed for three years running, and in the latest quarter, revenue grew 106% and earnings jumped 126%. These are numbers you’d expect from a young, fast growing company, not a megacap. Yet here we are.

It’s earnings season, and investors are watching AI-related stocks closely, trying to figure out if the AI trade is alive or dying.

This isn’t a case of stocks rallying on good results. It’s a case of stocks not falling much despite impressive results. After the AI trade’s drawdown in July, investors are jittery and less hopeful. AI stocks remain well off the highs they made in June.