NVDA bull thesis: Vera Rubin platform drives significant revenue beat vs analyst estimates ($109B Oct, $124B Jan).

First of all, you can't be excited about artificial intelligence without putting Nvidia on the list, can you? Jensen comes out in all these interviews to say that anyone who describes artificial intelligence as gloomy and pessimistic is almost an idiot.

Artificial intelligence is here to make us rich, save us time, save us money, and much more . So, the first stock will be Nvidia.

Its current price is $222. The stock hasn't been doing well since the beginning of the year, rising by 17.7%, which I do n't think is bad, is it? 17.7 percent is a really good result.

I may be being greedy because of the impressive returns the past few years have yielded thanks to the AI story , but the stock has risen by about 17%.

Now, the reason to be excited is the Vera Rubin platform. This is the new artificial intelligence infrastructure that will be launched. They have already started shipping this quarter.

They mentioned it briefly during their earnings call. This is the engine that will generate huge returns.

We just talked, I think in the previous episode, about Semianalysis indicating that Vera Rubin generates significantly more revenue for cloud consumers and cloud gamers compared to Blackwell.

Blackwell has already made far more money than Hooper. So, people line up here. People are lining up to buy Vera Robin, and whoever operates Vera Robin will receive huge sums of money and make a lot of money.

But the company that will make tons of money, and we know that for sure, is Nvidia.

I mean, here we take a closer look at the analysts' predictions. For the quarter ending October 26, analysts are expecting around $109 billion . This is crazy. This type of revenue in just one quarter .

It is strange to me that this is a company that trades with futures profit ratios that we will only see at 18 or 19. The $109 billion figure still represents a year-on-year growth of 91.2%.

And now for the end of this year, for the January 2027 quarter, the market is expecting around $124 billion.

I'm going to make a bold guess here. Both figures will be significantly exceeded. We will see more than 110 billion for the October quarter, and we will easily see more than 125 billion for the January quarter because Nvidia's Vera Rubin platform will be a smash hit.

And again , we hope the success isn't literally "overwhelming," because that's the last thing we want from artificial intelligence. Now we look at future profitability ratios .

Companies trading with forward earnings ratios of 18.45. Are you telling me that a growth company, a company that is growing by more than 90% year-on-year, is trading with a forward earnings ratio of 18.45?

I like to say this a lot on this channel. I think the market is either stupid, or we don't have enough computers. Regardless of what you think, in my opinion, Nvidia is benefiting greatly.

Many people are talking about shrinking profit margins . Nvidia has spoken a little about it, and even Nvidia's historical footnotes aren't too bad. Many believe that if their margins ever fall from 75% to their normal levels, it would be a 50% decrease.

No, the drop will be from about 75% to the mid- sixties, right ? Nvidia's usual gross profit margins have always been strong because it is an integrated artificial intelligence company, and before that, it relied on hardware and software that helped it achieve diversified profit margins .

So, a company with a huge balance sheet and tremendous opportunities, let's take a closer look at what management has said recently. Nvidia's chief financial officer, Colette, said they expect the third quarter's sequential growth to be driven primarily by artificial intelligence and data centers.

While growth in hyperscale is expected to accelerate in the fourth quarter and fiscal year 2028 , as Vera Rubin's supply increases over time, we expect Vera Rubin to account for approximately 20% of data center revenue in the third quarter.

So, in the third quarter, we'll see tremendous growth in the AI cloud, right? The infrastructure market is also growing. It grows rapidly. That would be a good driving force , and that's what you'd like to see: reliance outside of cloud service providers.

Then they tell us that in the fourth quarter, hyper-domain companies, such as Amazon, Google, Meta, Microsoft and Oracle, will be spending huge sums because Vera Rubin's platform is so amazing .

You expect growth to accelerate there . These are the ones with huge budgets, so they will also see a good acceleration in revenues .

So, I'm very excited, and that's why I'm not sure the analysts are really and correctly predicting what we should see in the January 27th quarter .

The second thing we have here regarding Nvidia, the second text, is that we started production shipments of the Vera Rubin platform earlier this month. Therefore, they have already received purchase orders from every major provider of hyperband, AI cloud, and systems manufacturers.

We expect Vera Rubin to represent the fastest production increase in Nvidia's history.

How can you hate Nvidia ? Tell me literally in the comments below, how can you hate Nvidia ? I know some comments that say, "Oh, when you're so optimistic about Nvidia, that's why we hate it."

This is the sign of reaching the top . Go ahead, that's fine.