Froggy
Crypto Analyst, Trader at Wallet
AI software and hardware advances make GPUs and power more valuable, creating huge long-term tailwinds for compute providers and AI model and app businesses. Each new software generation increases a GPU's value; each hardware generation increases the value of a gigawatt of power. That favors Nvidia, Broadcom, Intel and AppLovin. x.comÂ
The broad AI trade is among the most undervalued markets in years on a growth-adjusted basis because demand for intelligence keeps rising. Usage of open-weight and closed frontier models keeps climbing, while GPU rental prices are up around 80% this year despite exploding supply. Nvidia, AMD and SpaceX share this demand bet as long as both lines keep rising. x.comÂ
Rising Chinese competition and doubts about valuations add to Nvidia's downside risk as the AI sector bleeds. Nvidia's break from an uptrending triangular pattern rarely ends well; the AI bubble is cracking, and the trendline break marks the beginning of something much bigger. x.comÂ
NVIDIA's rapid revenue and earnings growth makes its near-AI-boom-low P/E look attractive. Quarterly revenue and EPS are both up more than 100% year over year, while the stock trades near its lowest P/E since the AI boom began. x.comÂ
NVIDIA is cheap at 14.7x 2027 earnings with 69% consensus EPS growth, a next-year PEG of 0.21, and it can keep rising from all-time highs. The next wave is robotics and AI in the physical world, where NVIDIA will be the brain of the robots. x.comÂ
Nvidia's AI profits are real, but its compute demand depends heavily on fragile venture funding. Per Chamath, 1% of firms account for 90% of AI spending, and 72 cents of each dollar comes from unprofitable VC-backed firms. Venture money passes through startups to Nvidia and cloud suppliers; if the next raises fail, concentrated orders could contract together. x.com x.com x.comÂ
Nvidia's monster quarter shows the AI boom continuing, with revenue growth accelerating to over 100%. Per the reported results, Q2 revenue was $96.2B, up 106%, data center revenue $89.0B, up 117%, and Q3 guidance $108B. x.comÂ
Nvidia's demand continues to accelerate well beyond Street expectations, delivering another robust, eye-popping quarter. The print and guidance are hugely important, with ripple effects across the tech world. x.comÂ
Nvidia faces risks on both sides of the AI cycle. Vendor financing is a concern at the center of the buildout: strong AI sentiment brings competition, while weaker sentiment brings a slowdown. That makes it the largest holding of greatest concern. x.comÂ
Growing businesses amid steep share declines make eight stocks generational buying opportunities. Nvidia guides toward over 70% growth in 2027 at 17.8x forward earnings, its cheapest valuation in a decade. Broadcom's AI chip revenue rose 221%; Amazon's backlog rose 154.4%; Oracle has $664B of backlog, half expected to convert within three years. Uber trips rose 18.3%, IREN AI cloud revenue rose 109.6%, Nokia AI and cloud sales rose 105%, and AppLovin exceeds 1B daily active users. x.comÂ