$NVIDIA(NVDA.US)

NVIDIA's (NVDA) earnings report is not just about whether this quarter is good or bad, but a major test of confidence for the entire AI industry.My personal view is: $150 is not a resistance level, but a springboard.

Why do I say that? NVIDIA is the one selling "water" during this AI wave. Everyone is frantically building models, while it quietly sells chips—OpenAI, Microsoft, Google, which one isn’t its customer? The flagship H100 chip has almost become the standard for high-end AI training, with data center revenue surging 280% last year, much of which hasn’t fully reflected in last quarter’s earnings.

Financially, NVIDIA is rock-solid. Over the past four quarters, EPS has consistently exceeded expectations, and gross margins have returned to over 75%. This isn’t about hype propping up the stock price but genuine profit-driven growth.

As for valuation, while many think it’s expensive, compared to the entire AI industry chain, NVIDIA is the one that can most effectively monetize.Meta and Google are spending tens of billions on chips to train models—whose pockets is that money going into? NVIDIA’s. While TSMC and AMD are still "making chips," NVIDIA is already "collecting rent."

Of course, there are risks, such as export restrictions due to U.S.-China relations and market concerns about the sustainability of AI growth. But look at recent events like Microsoft Build, Google I/O, and OpenAI’s GPT-4o—AI is now truly part of operating systems, browsers, and phones. The computing power behind all this? Still NVIDIA chips.

Not to mention, after the H100, the H200 has already started shipping, with faster inference and larger memory, poised to become the new flagship. The Blackwell architecture is also on the way, maintaining a technological lead.

So if this earnings report continues to meet growth expectations, the market will likely push the stock price to the next level. Don’t forget, many Wall Street institutions have already set target prices above $200. The current $150 might just be the runway before takeoff.

The AI revolution is just beginning, and NVIDIA remains the ace. The question isn’t whether it will break $150, but—are you ready to keep up with its next move?