$100B Quarter…

→ Nvidia beat revenue estimates.
→ Beat profit estimates.
And could be heading for its first $100 billion quarter.

Great news for Nvidia.

But apparently, also for everyone else.

Nvidia now sits in the middle of an AI spending chain that stretches from memory chips and data centers to electricity, cloud computing and Big Tech’s enormous capex budgets.

Which got us wondering:

How did one company’s quarter become everyone else’s business?

Here’s where Nvidia got so important.⇩

SPONSOR BREAK presented by DealMaker*

Ends Tonight: The ‘Nvidia of Energy’ Has a $2.1T Opportunity

Nvidia’s valuation surged by 1,092% when it became the backbone of AI*. But now there’s a problem Nvidia can’t solve: AI data centers are beginning to consume more power than entire nations like Sweden or Argentina**.

Enter Frontieras. Their patented tech reforms coal, one of America’s most abundant resources, into high-value commodities like jet fuel and diesel without burning it. With a coal-friendly White House, this could unlock up to $2.1T in energy potential***. 

Frontieras has reserved the “FASF” NASDAQ ticker and raised over $50M from 17,000+ investors. Now you can join them. Invest before the opportunity closes tonight at 11:59 p.m. PST.

Disclaimer: This is a paid advertisement for Frontieras’s Regulation A offering. Please read the offering circular at https://invest.frontieras.com/. Forward looking statements were included here that the Company believes to be accurate given the current information. They involve known and unknown risks, uncertainties and other important factors which if changed may affect the outcome(s). Reservation of the ticker symbol is not a guarantee that we will be listed on the NASDAQ.  Listing on the NASDAQ is subject to approvals. Under Regulation A+, a company has the ability to change its share price by up to 20%, without requalifying the offering with the SEC. Comparisons to other companies or investments are provided for informational purposes only and do not imply future performance.

Why Does Everyone Wait For Nvidia?

The Bellwether Logic Explained↓

Big Tech has spent years writing increasingly enormous checks for AI.

Billions were poured into chips, data centers and cloud infrastructure.

Worth it, though?

Recent cloud results from Microsoft, Amazon and Google offered some reassurance. But rising spending from Google and Meta kept the other side of the debate alive.

That’s where Nvidia  NVDA ( ▲ 8.15% ) comes in.

Nvidia sits near the receiving end of much of that AI spending. So its results give Wall Street something unusually valuable: a read on whether the AI buildout is still accelerating.

In that sense, Nvidia was giving the AI boom its quarterly checkup.

The Numbers in Full↓

SPONSOR BREAK presented by DealMaker*

Ends Tonight: The ‘Nvidia of Energy’ Has a $2.1T Opportunity

Nvidia’s valuation surged by 1,092% when it became the backbone of AI*. But now there’s a problem Nvidia can’t solve: AI data centers are beginning to consume more power than entire nations like Sweden or Argentina**.

Enter Frontieras. Their patented tech reforms coal, one of America’s most abundant resources, into high-value commodities like jet fuel and diesel without burning it. With a coal-friendly White House, this could unlock up to $2.1T in energy potential***. 

Frontieras has reserved the “FASF” NASDAQ ticker and raised over $50M from 17,000+ investors. Now you can join them. Invest before the opportunity closes tonight at 11:59 p.m. PST.

Disclaimer: This is a paid advertisement for Frontieras’s Regulation A offering. Please read the offering circular at https://invest.frontieras.com/. Forward looking statements were included here that the Company believes to be accurate given the current information. They involve known and unknown risks, uncertainties and other important factors which if changed may affect the outcome(s). Reservation of the ticker symbol is not a guarantee that we will be listed on the NASDAQ.  Listing on the NASDAQ is subject to approvals. Under Regulation A+, a company has the ability to change its share price by up to 20%, without requalifying the offering with the SEC. Comparisons to other companies or investments are provided for informational purposes only and do not imply future performance.

Look Who’s Also Buying.

The hyperscalers are still buying Nvidia chips at a remarkable pace.

The first wave of AI spending was heavily concentrated among a handful of companies with very deep pockets.

→ Amazon.
→ Google.
→ Microsoft.
→ Meta.

✱ Now, Nvidia says the buyer list is getting longer — new AI labs, startups, open-model developers and companies building physical AI are all adding to demand.

In other words, Nvidia’s growth is becoming less about how much a few giants can spend and more about how many companies want AI computing in the first place.

The Catch?

Nvidia remains heavily dependent on the hyperscalers. And some of its biggest customers are spending billions developing their own AI chips at the same time they’re buying Nvidia’s.

It creates a rather unusual relationship:

They’re some of Nvidia’s biggest customers — and some of the companies working hardest to need fewer Nvidia chips.

For now, both can be true. Big Tech can build its own silicon and keep buying Nvidia at enormous scale.

The question is how long that balance lasts.

The Ripple Effect.

Nvidia’s quarter had another winner hiding in the numbers: memory chips.

The reason? Nvidia needs a lot of them.

AI GPUs rely on high-bandwidth memory, or HBM, to move enormous amounts of data quickly. And as Nvidia ships more AI systems, demand for that memory rises with it.

There’s just one problem: There isn’t enough to go around.

Nvidia CFO Colette Kress described memory price increases as “astronomical,” with supply so tight that securing manufacturing capacity doesn’t always guarantee exactly how many chips Nvidia will receive — or what they’ll ultimately cost.

→ SK Hynix SKHY ( ▲ 1.2% ) , Samsung and Micron MU ( ▼ 2.01% ) have already sold much of their premium AI-memory capacity through 2026.

So Nvidia’s booming demand doesn’t stop at Nvidia.

More AI GPUs → more HBM → tighter memory supply → more business for the companies making it.

✱ And suddenly, a great quarter for Nvidia becomes a pretty interesting quarter for the memory guys, too.

The $0 China Bet↓

There’s one rather large market missing from Nvidia’s outlook:

China.

Nvidia’s forward guidance assumes $0 in China data-center compute revenue.

Just because Nvidia has no reliable way to know what it will actually be allowed to sell there.

→ <1% › Of $89B in data-center revenue came from resumed H200 sales
→ $7.9B › Total China revenue, or 8.2% of Nvidia’s Q2 sales

The situation has become almost circular. Washington approved Nvidia’s older H200 chips for China, only for Beijing to discourage Chinese companies from buying them.

So Nvidia has taken the simplest route with its forecast:

If China can’t be counted on, don’t count China at all.

That leaves a potentially enormous market completely outside the guidance — and one very big geopolitical wildcard sitting on top of an otherwise booming quarter.

Lesson Of The Day:

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