Nvidia Earnings JUST Brutalized Michael Burry [Say a prayer!!!]

Well, as expected, Nvidia earnings

smash. The question is, will the smash

last? Hopefully, we can hang in there

and make them last. That's going to be

the big question. It's not going to be a

question about is Nvidia going to beat.

We know Nvidia is going to beat. It's

always a matter of how much are they

going to beat by and is that going to be

enough to keep people attached to this

market. The hope is yes. So far in the

post market, we've already rejected the

29860 line. We do have a nice 4.6%

pump here in the afters on great

earnings. We're going to go through the

earnings in just a moment. Do note that

the entire ecosystem is pumping on this.

Palunteer gets a shout out on the

ontology product. Great move up here.

You've got coreweave moving up to the

7927

line up 7%. We got Bitcoin also trying

to recover here back over 90,000.

Ethereum bounces literally right on my

2875 line. Let's see if it can hold up.

Tomorrow morning is going to be critical

because we don't want to get jack in the

box. We don't want to get grindered.

Both of these we're not doing too hot

right now. Okay, cuz the CEO is over at

Grinder getting margin called. Not good.

Well, that's the opposite of what's

happening at Nvidia. Because even though

you had some weenies guiding really,

really high to $75 billion for Q4,

Nvidia guided $65 billion, 4.8% above

expectations. And it is so good that

people are looking for anything to poop

on Nvidia for. And so they're coming

over to the balance sheet. What people

are doing is saying, "Oh my gosh,

accounts receivable at Nvidia are

skyrocketing." And it's true. Accounts

receivable at inventory or at Nvidia are

up 44% from 23 billion to 33.3 billion.

However, let's be real, folks. That's

only 18% of one quarter of revenue. So,

is it really a big deal that their

accounts receivable, in other words,

potentially bills that you know haven't

been paid yet uh to Nvidia are going up

by 10 billion? No. This is a company

with over $60 billion in cash. Does it

really matter that their accounts

receivable are up 10.38? No, not at all.

They can wait another few weeks on their

revenue and it makes zero difference to

Nvidia. So this increase in accounts

receivable, not a big deal. This is this

this was a very good report from Nvidia.

This idea that inventories are up 19

bill up to 19.7 billion. This was a

little surprising. Usually when you do

see inventories go up at the chip plays,

it is an indicator that you're having a

harder time selling your chips. Nvidia

argues that this inventory buildup is

because they're wanting to build out

their supply chain to make sure they

have enough long lead time components to

actually keep providing the Blackwell

product on time. That's their argument.

So far it sounds reasonable given that

we are raising to a $65 billion uh you

know revenue forecast for Q4 and we

expect to beat that as well. So far

Nvidia Ultra is now the leading

architecture. No significant H20 sales.

So basically no China here. Gross margin

increasing not a surprise. Gross margin

is increasing as they're sort of

buttering out their scaling costs for

Blackwell. So this is positive. Now,

something that you also heard Jensen

say, which I thought was really

interesting, was that the number of

customers coming to Nvidia after looking

at alternatives is actually going up.

Now, that's a big deal because a lot of

people are looking at Google and they're

like, "Oh my gosh, Google has uh built

out their uh Gemini 3 product on the

back of the Tensor processing unit, not

Nvidia chips. Oh my gosh, that's bearish

Nvidia, right?" Well, Nvidia is

basically countering that. It's saying,

"Nah, we're fine. Don't worry. Plenty of

people are still coming to Nvidia. Now,

Nvidia's also countering Michael Bur.

They basically stopped short of saying

Michael Bur's name, but they literally

said, quote, "Our ecosystems extend

useful lives. We have A100 chips from 6

years ago that are still running at 100%

utilization. Without CUDA, yes, chips

would be obsolete after 2 years. But

because we're the and we have the

best software to go with our chips, our

chips rock and they're still being used

up to 100% after 6 years. Therefore,

Michael Bur go suck it. Okay, they

didn't say the last part, but that's

basically what they're saying. On top of

that, basically giving Michael Bur the

big middle finger, they're also saying,

"Hey, we're going to ramp Reuben in the

second half of 2026, which is already

moving on from our Blackwell uh GB 2000

to 300 technology to the next phase

because we're getting to this annual

ramp kind of like an iPhone cadence, but

we're not alienating the old stuff

because that should continue to be

utilized since we have a supply

shortage. we can't print all the chips

we want. It's kind of like, you know,

the plane analogy I've given in the past

that if you don't have enough supply of

something something, assets that usually

depreciate over time, like planes, uh,

can actually go up in value over time.

Kind of like how I sold my plane for a

profit because supply chains are so

tight. Uh, now chips usually depreciate

even more rapidly. So yeah, it's a

little bit wild to think that chips are

still getting used, but we're seeing it

as well, even with our house hack

artificial intelligence, where we can

actually put older chips to great use. I

mean, the analogy that I gave when the

earnings first came out was this

comparison to the this is just sort of a

in the background. This is a product or

a company. Gosh, what am I saying? This

is a house that we actually bought. This

is just sort of a in the background, you

know, we have some some cleaning up to

do in terms of the actual visualizations

on it, but in the background, we were

just testing our uh our AI and our AI

found this on its own, scored this

property at an A, and we already bought

the property because it was a good deal,

but to us, it just reiterated that uh

our our AI is working. And this is

actually in part to what Jensen is

talking about. It's sort of credit to

what Jensen's saying. He says, "What you

want to see is you want to see inference

usage go up. You want more people to buy

Blackwell chips, us included. You know

that house hack, see I got the Nvidia

jacket with house hack underneath.

[laughter]

You know, we uh we're using Blackwell

chips as well, not just for training our

ML uh but then of course uh we use cloud

for inference and we're using uh we're

you know, we're inferencing with AI as

well as we ramp our AI product." So,

we're very excited and we think he's

right about that. Uh, and so so far

there's really nothing not to like in

any of these numbers. Uh, quick

disclaimer just so I don't get in

trouble. Make sure to read the offering

circular at houseack.com/reinvest.co.

It's the same company. Uh, read that.

You can see our 5% bond offering. If the

Fed panics and closes or drops rates,

we'll obviously drop that as well pretty

soon. But, uh, you get 5% through

conversion and then all the upside in

the stock. Read about that and the risks

involved investing at house hack.com. So

anyway, going back to this, they also,

you know, what where I think we're going

to end up going with this artificial

intelligence is you'll find that LLMs

will become so good that a lot of

companies like whether it's Google or

Meta or Microsoft with Copilot, they'll

really start advertising a lot out of

their LLMs. And you actually saw Jensen

directly shout out Meta talking about

their AI recommendation systems and the

inference usage in advertising. I

actually think you're seeing some of

that over at P um not just Palanteer but

also Pinterest as well. And Pinterest,

you know, the problem is with with these

companies like the consumer plays is the

consumer is pretty freaking weak right

now. You know, it's like the rich

companies that spend money on Blackwell

chips, you know, they can afford this

kind of stuff. But if you look at

Pinterest on like a weak chart, look at

how low this sucker is, you know, and

they're they're a beneficiary of the

artificial intelligence advertising

revolution as well. So, kind of

interesting to see this trend line that

they're literally sitting on right now.

Pretty remarkable. Uh, now one thing

that uh that does suck right now is you

don't want to invest in a company like

Fat Brands. Fat Brands is basically

going bankrupt in my opinion. So, a big

oopsy dupy over there. Uh, but anyway,

okay. So, what else do we have? Then we

have, if we go look at some of our other

numbers over here, we have OpenAI 800

million weekly users. That was

interesting. 1 million enterprise users

and they say gross margins at OpenAI

were healthy. You know, I honestly I

thought that was kind of funny because

it's like who cares about the gross

margins at OpenAI? We all care about the

net margins. Uh that's what matters.

Then we have uh Blackwell Ultra trains

5x faster than the Hopper chips. That

was kind of cool to see. We saw uh their

expectation that gross margins are going

to keep holding in the mid70s through uh

throughout the next quarter. That's good

because you're actually seeing their

gross margins go up because they're

scaling Blackwell. Now AMD, it's worth

remembering, only makes about 46% of

their revenues from data centers,

whereas uh Nvidia is sitting at over

89.8%

of their revenue coming from data

centers. It's almost all data centers.

Now, I was a little disappointed that

gaming was down 1% uh sequentially and

automotive sales were only up 1%

sequentially. They were up about 33%

year-over-year, but only up 1% quarter

over-arter. Uh, you know, from the last

quarter, I was a little disappointed

about that. I see Nvidia as a really

good sort of like robo taxi and FSD play

that is reasonably valued right now. I

like the valuation of Nvidia and I think

that the valuation of Nvidia does

support uh frankly a $300 price target.

Now, that doesn't mean that I'm super

excited or optimistic about the stock

market in the near term. Uh I think we

have a lot of headwinds with jobs and

recession risks and otherwise. So, I'm

I'm I've been diversifying a lot to

cash. Uh I've been taking profits on

some stocks and I send of course those

alerts in our alpha report which you can

get at meetke.com. We have a coupon code

uh coupon code Nvidia is actually the

current coupon code. So, coupon code

NVDA as in honor of Nvidia earnings. Uh

and that is uh expiring today. Uh so you

could use that over at mekevin.com. But

anyway, uh you've got this uh the other

thing to Oh, that's a little funny as

the coupon code phases. I got to work on

that transition. But anyway, uh so

you've got net income. Consider this.

55.7%

of Nvidia's net income goes to their

bottom line after taxes. That's insane

cuz remember they're a chip designer.

Now they uh produced their last with

TSM. They produced their first Blackwell

wafer in Arizona last month. That's kind

of cool. Uh I do think a fair value for

the stock is $33. I do think there are

other opportunities where you could make

more than 50%, you know, by the time we

hit that. Uh but you I got to give them

credit. These are really good numbers.

These are this is very large price,

great pricing power, great balance

sheet. Momentum is obviously very high,

so not the best, but there's really no

bankruptcy risk here. Uh, and the

valuation is fair. It's trading for a

1.6 peg. It could easily be at a 2.6. 60

billion in cash. Plenty of room to keep

buying the stock. Uh, I know some people

again are worried about the inventory

aspect. So, you kind of have to like

look at them and be like, "Well, do you

believe them or not about what they're

saying regarding inventory?" Regarding

uh they did shout out Lowe's, I thought

this was cool. They talked about how

Lowe's is using CUDA to help build out

their supply chain agility. I'm a big

fan of Lowe's, by the way. House hack,

we are almost exclusive with Lowe's. Big

fan. Uh we have a pro contract with

them. So, you know, when we put quotes

in for orders, we get huge discounts

with them. So, we're we're big fans, big

supporters. Uh we've got uh they talked

about their anthropic partnership. Uh

they talked about uh Steam. Oh, not

Steam. I misspelled that. Stream. Steam

breaking 42 million concurrent users

partly in the backs of uh Nvidia chips.

Uh Steam, by the way, dude. 42 million

concurrent users at one point. You

realize that's like the entire state of

California playing on Steam at the same

time. Like do you know how much Rust we

could be playing if we were all playing

at the same That's sick, man. I and I

got my 5090 to play Rust. Although I

haven't played Rust in months. I'm a

little disappointed and I don't need a

5090 to play Runescape and I'm

definitely not going sailing later

today.

Anyway, uh Jensen talks about, you know,

sort of next iteration of getting from

not only the CPU to GPU movement, but

getting into agentic AI and then

physical AI. You know, this is really a

shilling of robots and a shilling of

agentic. I don't I don't know. I'm not

so convinced on on Agentic AI yet, but

we'll see. You know, Gemini 3 has a lot

of hope. Its cost to operate is pretty

high. Uh if you look at the pro version

of Gemini and then the Aentic spend, you

know, this is really what you're looking

at right here. Uh we have there it is

Gemini 3 deep think preview. Its cost to

operate is like 100x the cost to operate

per task. Gemini Pro 3 or 3 Pro. Now,

the Gemini release could really motivate

other companies to spend even more on

Nvidia chips to try to catch up to

Gemini or Gemini is just going to

bankrupt companies like XAI and OpenAI

because Gemini is just going to eat

their lunch. It, you know, we don't

know. It seems binary at this point. But

I think the most important thing

tomorrow from a strategic and like

trading point of view is you have to see

what ends up happening with

institutions. Is Nvidia going to keep

rejecting these two lines right here?

The two lines that I have is or or

198.98 and 19653. The lesser of the two

is this one right here. We've rejected

this one and we've rejected this one.

So, both of them today and these lines

have been here for a while. So, these

aren't like secret lines or whatever.

You're welcome to copy them, but anyway,

how the market responds tomorrow is

going to be critical because you know

the post market you're not going to get

institutional profit taking. The concern

is what happens tomorrow morning. Is

there going to be institutional profit

taking at the morning? we'll go this

way. You know, we didn't see much

movement this morning on uh Nvidia. What

happens this morning, that's going to be

critical. And if there's a bunch of

profit taking and the whole sector goes

down with it, especially as we

essentially anticipate no rate cut, you

know, we looked at the Fed minutes

earlier and they were really

disappointing because you pretty much

have a Fed that's like, "Look, if you

want us to cut, we need data. We need

data, data, data, data,

>> data dependence."

>> And we don't have data. So, uh, you

know, overall, there's really nothing to

like in the Nvidia earnings. They're

really good. They keep printing money.

Uh they're helping companies convert

sales. Slow down. I again I didn't like

the gaming or or um automotive revenues

on a quarter- quarter basis, but

otherwise they're firing on all

cylinders here. Uh they're not relying

on China. The margins are strong. The

net margins are the greatest I've ever

seen. They basically shut down Michael

Bur. They think they have a half a

trillion dollars of revenue visibility

through the end of 2026, which is a huge

pipeline of visibility. Uh and and so

really the only thing to be concerned

about is basically

institutions coming and saying cool all

right like this is the top let's take

our money and run but beyond that

there's nothing that Nvidia said that I

think is really uh nerve-wracking. Uh

and so it's really just going to go back

to market sentiment at this point. But

broadly I'm I'm pretty excited about it.

Uh and you know I kind of feel honored

that uh you know we chose Nvidia

earnings day to do an expiring coupon

code and the coupon code is NVDA.

Remember you could get a tax write off

before the end of the year by joining

very likely. Talk to your CPA about that

of course no guarantees. Every trade

alert all the eight courses. We've got a

new one coming out as well which you

will get access to that as well totally

for free once you're a part of the meet

Kevin membership. You get every private

live stream, the alpha report, and

you'll also get a big fat discount on

our house hack AI if you join the Meet

Kevin membership. So, you'll get a

discount on the AI. You'll be able to

get it for a lot cheaper uh if you are

part of the Meet Kevin membership, which

is kind of cool. Somebody here writes

UiPath for Agentic AI. Dude, thanks for

the $10 donation. But you have to

remember that UiPath was AI before it

was AI. They were trying to do process

automation for you when AI was still

considered deep learning and and big

data, right? The problem is now

everybody can put together the pieces of

the puzzle like UiPath. So UiPath really

has to prove that it is somehow better

AI than like Gemini X uh you know XAI

and and Copilot and somehow better than

all the other agentic services. And so

it really takes process automation and

turns it into a moed product to a

non-moded product. That's your big

problem with UI and I think a lot of

people have hope for it. But but that's

that as long as you are comfortable that

they have a moat maybe there's a shot

for UiPath, right? But that's what you

have to look at there. So somebody here

says nothing is good and perfect. I

don't know what you're saying. Uh so uh

oh uh and then I talked about the

competitors, right? Yeah, we talked

about the competitors, how they're

seeing competitors to Nvidia or

customers who are looking at competing

products actually come back to Nvidia

and they're like, "Yeah, no. Uh, we uh

we we just want the Nvidia chips." So,

pretty pretty optimistic there. Looking

at some of your other comments here by

kids, be careful investing out there,

says someone. Everyone is hanging on

productivity gains from AI. Nvidia shows

us that market probably moving up now.

No, I mean it I don't know that a lot of

people were expecting Nvidia to miss.

Yeah, it's uh Jensen's a really good

salesman. So, we should have a green day

tomorrow unless you get profit taking.

All right, folks. Uh we'll put together

a plan of the alpha report tomorrow.

Remember, if you join today, you can be

part of tomorrow's alpha report and

we'll see you there. So, thanks so much

and we'll see you in the next one.

And make sure to go to houseack.com

[music]

to learn more about investing in

Houseack. Read the offering circular cuz

there's risk reinvested.

>> [music]

>> Why not advertise these things that you

told us here? I feel like nobody else

knows about this.

>> We'll we'll try a little advertising and

see how it goes. Congratulations, man.

You have done so much. People love you.

People look up to you.

>> Kevin Praath there, financial analyst

and YouTuber. [music] Meet Kevin. Always

great to get your take.