Nvidia Stock Just Crushed Earnings—But Here's The Real Question

Nvidia delivered another blowout quarter: 62% revenue jump to $57B, gross margin holding above 73%. Their Blackwell chip line is flying off the shelves, and every major cloud provider (Amazon, Google, AMD, Broadcom) is confirming the same story—AI compute demand is insane right now.

Here’s the thing though: stock actually fell 3% after the report. Why? Interest rate jitters and the sneaking concern we’re in an AI bubble.

What history shows: Looking back at Nvidia’s past 9 earnings cycles, the stock advanced 7 times in the following 6 months—all double-digit gains. The 2 losers only dropped single digits. So short-term momentum favors buyers.

But don’t get blinded by the pattern. Rate cuts aren’t coming in December, macro headwinds are real, and one killer earnings beat doesn’t guarantee a moon mission.

The actual play? Forget the 6-month forecast. Nvidia dominates the AI chip market with trillions in infrastructure spending coming. At 38x forward earnings, the valuation isn’t crazy for a market leader. Even if the stock wobbles near-term, holding for 3-5 years is probably a wealth builder.

TL;DR: Yes to the earnings. Maybe to the short-term trade. Definitely to the long-term hold if you believe in AI.