NVIDIA just printed a monster Q3: $57.0B in revenue. Wall Street celebrated. Retail piled in.
But the financial filings tell a more complicated story.
Here’s what most people are ignoring:
🔻 Margins are slipping
Gross margin dropped from 74.6% → 73.4%.
First meaningful downside move since 2022.
If demand is truly “insane”, why is pricing power weakening?
💸 The $112B Question
Since 2018, NVIDIA generated enormous cash — but a massive portion has gone into:
• Stock-based compensation
• Aggressive buybacks
Some analysts estimate over $100B+ effectively transferred via dilution + repurchases.
(Highly debated, but you can’t ignore the scale anymore.)
🏦 Smart Money Took Profit
SoftBank reduced its NVIDIA position before earnings.
Peter Thiel’s fund also exited.
Not proof of a crash — but definitely not blind euphoria either.
⚡ The Power Wall Nobody Talks About
AI isn’t just a chip problem.
It’s an electricity problem.
Data centers require insane power growth — and grid expansion is slow, expensive, and politically messy.
If energy costs outpace hardware efficiency, centralized AI economics get squeezed hard.
📉 Why this matters for investors
This doesn’t mean NVIDIA is “dead”.
It means risk is rising while price assumes perfection.
Watch these 4 things:
1. Margin trend (next 2 earnings)
2. Stock-based compensation as % of revenue
3. Data center capex vs power availability
4. Institutional ownership changes
Record revenue doesn’t mean zero risk.
Smart investors track the cracks before the headlines do.
#NVIDIA #NVDA #AI #stockmarket #Investing $BTC