Despite delivering another record-breaking quarter with $96.221 billion in revenue (+106% YoY) driven by massive data center demand (+117%) and the acceleration of its next-gen Rubin architecture, Nvidia’s post-earnings stock weakness reflects growing margin anxiety and a consistent pattern of post-release sell-offs. High memory component costs are projected to squeeze Nvidia's gross margin down from 75% to a trough of 71%–72% in Q4, signaling that supply chain inflation is temporarily outpacing pricing power. However, this near-term margin pressure on the primary chipmaker directly benefits memory and optical suppliers who are capturing those increased component dollars, creating a classic supply chain rotation. For investors, buying Nvidia right on the earnings headline carries historical risk given its four-quarter trend of initial sell-offs, but the broader rally in underlying memory and cloud infrastructure names offers a compelling pick-and-shovel entry point as compute continues to directly convert into enterprise revenue.