There’s a dirty little secret to Nvidia’s (NVDA) earnings…
The tech giant reports late in earnings season. So investors already know, after hearing from their biggest customers, what to expect from the AI chip giant.
Nvidia’s numbers, posted at the market close yesterday in New York, are impressive. First-quarter 2026 revenues topped $80 billion. Year-over-year (YOY) growth came in at 80%. CEO Jensen Huang spent an hour on Maria Bartiromo’s Fox Business show this morning crowing about the AI “5-layer cake” buildout plan.
Across the Nasdaq 100, the bellwether measure for AI, earnings are healthy and growing:
Earnings growth for the tech-heavy Nasdaq has accelerated over the past few years thanks to the AI boom, and as long as the growth continues, stocks can trend higher. (Source: The Compound)
As you may be aware, we’re always on the lookout for historic parallels. During the dot-com boom and bust in the early 2000s, the peak occurred when the market’s overall earnings began to roll over.
But greed kept the market going. At the time, there was a historic rise in initial public offerings (IPOs) by companies with no revenue or earnings and no plans to generate earnings for years.
Today’s ecosystem has learned from prior mistakes. Even big upcoming IPOs like SpaceX have strong earnings behind them.
Of course, nothing lasts forever. As long as earnings are growing, so too can stocks. Nvidia’s release yesterday shows its growth slowing. As a consequence, the stock is a laggard relative to smaller, more nimble companies that are benefiting from the AI’s 5-layer boom.
To get one of the best investment ideas for a smaller player in the AI “5-layer” buildout boom with more room to run, become a member of Grey Swan Pro — details here.
~ Addison
P.S. It doesn’t matter how smart you are or how much money you make in the stock market if you give all your gains to Uncle Sam. Last Friday at 2 p.m. EST/11 a.m. PST, we hosted Nick and friends from Prime Corporate Services for a tax webinar to help you be confident you’re getting all the write-offs that properly structured individual investors are entitled to.
We’ve arranged for a replay here. You’ll be surprised at how much you may be leaving on the table.
As always, if you have any questions for us, send them to Feedback@GreySwanFraternity.com.
