To The Moon

Nvidia isn’t far from the $5 trillion milestone. It needs just another 14% gain, which could happen within the year. The first trillion is the hardest, the next one gets easier.

The technological moat is very wide, even if it may not be permanent. There’s no doubt Nvidia will milk it big time in the near future. Its net profit margin is a staggering 52%.

Nvidia reported earnings on Wednesday and the stock initially dropped 3% in after-hours trading, at one point does such as 5%.

Some investors were probably just taking profits. The results weren’t bad, though some may complain that revenue growth has decelerated.

But growing at over 56% YoY is still very fast for the world’s largest company. None of the other Magnificent 7 are growing at this pace—not even half of it. Nvidia beat both revenue and earnings estimates. Even the guidance was a beat.

Another concern is Nvidia losing China revenue. H20 chip production has been halted as it’s no longer competitive against China’s homegrown alternatives.

However, Nvidia is now looking to sell a watered-down version of Blackwell to China. Trump has publicly said he is open to it. If approved, Nvidia should regain its China revenue.

Finally the customers accounted for 39% of Nvidia’s Q2 revenue. Some see this as a concentration risk, but they are likely major cloud players—the only ones with deep enough pockets to buy at scale. That’s actually a positive sign: AI spending and capex aren’t slowing.