To The Moon

$NVIDIA Corp(NVDA)$ You’re raising some solid points, especially with what’s happening with $SUPER MICRO COMPUTER INC(SMCI)$ and the broader market dynamics. But let’s look at a few things that might suggest NVDA isn’t in as much trouble as it might seem at first glance.

1. SMCI’s Financial Issues

If SMCI is hiding something about their finances, and it affects NVIDIA, that could be a concern. But NVIDIA is a massive company with a lot of different customers and revenue streams. SMCI is important, sure, but they’re not the only game in town. Even if NVIDIA has to adjust some of their numbers because of SMCI, it’s not likely to be a huge deal in the grand scheme of things.

2. AI and GPU Demand:

Yes, a lot of money has poured into AI and GPUs, some of it maybe more speculative than solid. But the need for high-end GPUs isn’t going away anytime soon. NVIDIA’s tech is at the core of so many industries now, from gaming to AI to data centers. Even if the hype cools off, the underlying demand is still strong.

3. Buybacks and Insider Sales:

NVIDIA’s buyback at peak prices and Jensen Huang selling shares might look sketchy, but it doesn’t automatically mean the company is in trouble. Buybacks can be a way to boost shareholder value, and insiders sell for all kinds of reasons, like diversifying their portfolio or handling personal finances. It doesn’t always mean they’re losing faith in the company.

4. Market Correction Risks:

A 20-30% drop in the short term? It could happen, especially if the broader market pulls back. But NVIDIA is well-positioned in industries that are likely to keep growing, like AI. Any correction might be a buying opportunity, rather than a sign of deeper issues.

5. Fed Policy and the Economy:

The Fed’s cautious stance might signal economic worries, but NVIDIA is in a strong spot to handle downturns. They’ve got a solid balance sheet and are crucial to the AI revolution, which isn’t slowing down anytime soon.

6. Skepticism and Track Record:

Your skepticism is understandable, especially after seeing how things played out with crypto. But AI is a different beast. It’s not just hype—it’s driving real advancements in tech and industry. Even if the market pulls back, NVIDIA is likely to remain a key player in the long term.

In short, while it’s smart to be cautious, NVIDIA’s fundamentals are strong, and they’re leading in a field with massive potential. Sure, there might be some bumps in the road, but they’re far from being in serious trouble.