Editor's Note: Tech legend Jeff Brown says NVIDIA's revolutionary new invention could hand early investors generational wealth in 2026. If you missed your chance to become one of 600,000 "overnight" millionaires minted in the first waves of the AI boom, click here to see what Jeff has uncovered now, or read more below. |
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Dear Reader, |
In 2016, NVIDIA CEO Jensen Huang hand-delivered the world's first AI supercomputer to Elon Musk and OpenAI. |
Paving the way for ChatGPT... |
Triggering the AI boom... |
And ultimately, turning 600,000 investors into "overnight" millionaires... so far. |
Now, nine years later... |
Haung just delivered the world's first "AI factory supersystem" to Sam Altman and OpenAI. |
Paving the way for the USA to achieve the "holy grail" of AGI 30 years sooner than ever thought possible. |
If you missed your chance when Jeff told everyone to buy NVIDIA in 2016 – before it skyrocketed as much as 30,000%... |
Tech legend Jeff Brown... the man who called NVIDIA before it soared as high as 30,000%... |
Says investors who get in before Jensen Huang's shocking announcement as early as March 16 have a new chance to collect generational wealth in 2026. |
Click here to see what Jeff Brown has uncovered, before it's too late to get in. |
Regards, |
Lindsey Hough
Managing Director, Brownstone Research |
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FEATURED ARTICLE |
NVDA crushed expectations with $68.1B in Q4 revenue (+73% YoY) |
When a company prints $68.1 billion in a single quarter, you don't call it a "beat." |
You call it a statement. |
NVIDIA just reported Q4 revenue of $68.1 billion, up 73% year over year, crushing the roughly $65.8 billion analysts expected. |
On the surface, this is easy: |
AI demand is strong.
Blackwell is ramping.
Hyperscalers are still spending. |
But here's the Cheap Investor version: |
The quarter was the proof.
The stock reaction depends on the runway. |
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Because in markets like this, you don't get paid for what already happened. |
You get paid for what stays durable. |
Let's break it down properly. |
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Scoreboard: What Actually Happened |
Revenue: $68.1B (+73% YoY) |
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That growth is staggering when you consider: |
NVIDIA is already a multi-trillion-dollar company The comparison quarter last year was already enormous The AI buildout is now well past "experimental" phase
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The key takeaway: |
This was not a "growth slowing gracefully" quarter. |
It was a re-acceleration confirmation quarter. |
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The Real Reason the Market Cares |
The market wasn't doubting NVIDIA's ability to post a big number. |
It was doubting whether the AI capex wave was: |
Peaking Normalizing Budget-constrained
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This quarter says: |
Demand is still there.
Budgets are still open.
Blackwell is not derailing the cycle. |
That matters more than the beat itself. |
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Deep Dive: What NVIDIA Actually Is Now |
Forget the old framing of NVIDIA as a "chip company." |
NVIDIA is now: |
A platform vendor A rack-scale systems provider A data center architecture supplier A software monetization engine (CUDA ecosystem)
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The center of gravity has shifted from: |
GPU units → Full-stack AI infrastructure |
That shift supports: |
Higher ASPs Stronger ecosystem lock-in Cross-sell into networking, interconnect, and systems
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(continued below) |
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(continued) |
The Blackwell Factor |
Blackwell is the real supercycle variable. |
Why? |
Because it determines whether NVIDIA's growth curve: |
Flattens Steps higher Or accelerates again
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Blackwell isn't just a chip refresh. |
It's a systems architecture change. |
And if hyperscalers commit fully to rack-scale Blackwell deployments, the revenue curve can extend well into 2027. |
That's the Cheap Investor fulcrum. |
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The Numbers That Matter Beyond Revenue |
Revenue gets headlines. |
Margins tell the truth. |
1) Gross Margin Stability |
If NVIDIA maintains elevated gross margins during a generational platform transition, that tells you: |
Pricing power remains intact Supply constraints are not forcing concessions Competitive pressure (read: AMD) isn't biting yet
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Margin durability = moat durability. |
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2) Capex Signal from Customers |
Hyperscalers are spending hundreds of billions on AI infrastructure. |
The key is: |
Are these multi-year commitments?
Or cyclical surges? |
If forward commentary reinforces multi-year roadmaps, that supports: |
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3) Free Cash Flow Velocity |
Revenue growth is impressive. |
Cash flow conversion is what makes it "Cheap Investor relevant." |
If NVIDIA continues converting at high rates: |
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Is It Cheap? |
Let's address the uncomfortable part. |
NVIDIA is not cheap on headline multiples. |
But Cheap Investor cheap doesn't mean low P/E. |
It means: |
Cheap relative to the durability of earnings. |
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If earnings continue compounding at elevated rates through 2027, then today's valuation may compress into reason. |
If growth normalizes sharply in 2026, today's valuation is priced for perfect. |
That's the tension. |
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What Would Make It Actually Cheap? |
Three things: |
1) Durable 2027 demand language |
If guidance reinforces multi-year backlog strength. |
2) Margin resilience through Blackwell ramp |
If gross margin doesn't structurally compress. |
3) Broader customer base |
If demand isn't concentrated in just 4 hyperscalers. |
If all three hold, the multiple becomes less fragile. |
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Bull / Base / Bear Scenarios |
Bull Case: Supercycle Extension |
Trigger: |
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Outcome: |
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Base Case: Growth Slows but Stays Strong |
Trigger: |
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Outcome: |
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Bear Case: Budget Constraint Narrative Returns |
Trigger: |
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Outcome: |
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The Competitive Layer (Don't Ignore This) |
AMD is not standing still. |
Custom silicon efforts are growing. |
Cloud providers are experimenting with in-house alternatives. |
NVIDIA wins when: |
Performance per watt stays dominant Software ecosystem remains sticky Switching costs remain high
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If any of those erode, valuation resets quickly. |
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What the Tape Will Tell You |
Post-earnings moves don't end on Day 1. |
Watch: |
Gap-and-hold behavior Volume on follow-through days Relative strength vs SOXX and SMH Whether implied volatility collapses aggressively
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If it gaps up and bleeds, expectations were already maxed. |
If it gaps and holds, institutions are underwriting the forward curve. |
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Action Plan (Cheap Investor Discipline) |
Investors |
Do not chase vertical moves. |
Use a scale-in framework: |
1/3 starter
1/3 on pullback to key support
1/3 only if next quarter confirms durability |
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Traders |
Options implied move is often underpriced or overpriced depending on sentiment. |
After a monster beat, IV crush is real. |
Directionally: |
Only lean bullish if the market treats 2027 guidance as expanding, not stabilizing. |
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Cheap Investor Checklist |
Track these over the next quarter: |
Blackwell shipment cadence Hyperscaler capex commentary Gross margin stability Competitive announcements (AMD/custom silicon) AI workload expansion beyond training (inference monetization) Data center networking attach rates Free cash flow growth Customer concentration disclosures
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The Broader Market Implication |
NVIDIA's print isn't just about one stock. |
It influences: |
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If NVIDIA remains strong, mega-cap leadership likely persists. |
If NVIDIA cracks, breadth rotation accelerates. |
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Bottom Line |
$68.1 billion. |
+73% growth. |
A beat by over $2 billion. |
The quarter was historic. |
But the Cheap Investor question remains: |
Is the runway longer than the market thinks? |
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If Blackwell extends the cycle into 2027 with durable margins, NVIDIA may still justify its premium. |
If growth normalizes faster than the Street expects, even record revenue won't save the multiple. |
That's the game. |
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investing involves risk, including the potential loss of principal. Always do your own research before making investment decisions. |
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