Zed Francis

Yeah, I mean, ultimately, NVIDIA has turned into an established veteran company in comparison to what it was a handful of years ago.

So as you alluded to, the beat and raise is basically what's baked in the cake.

That's what everybody's expecting at this point, because that's what they've been doing in the past.

And we see this stock moving, but kind of benign, ultimately.

I'm a volatility guy at the end of the day, and the options market was pricing in a 5.5% move in NVIDIA on these earnings.

And the entire range of after hours were obviously well inside of that.

So I think we're kind of at the point where NVIDIA is the new Apple.

It's just a boring event, even though it used to be the main show for the last handful of years.

Right.

Yeah, I mean, it's a very interesting sector, right?

Because ultimately semiconductors are viewed as hyper-cyclical, but NVIDIA has kind of disrupted that concept over the last handful of years, right?

And I bring up Apple because I think it's a reasonable parallel.

Like Apple started as hardware, then started building their network, and then started building services.

So even though hardware is the main driver of Apple's business in terms of top and bottom line, there's more confidences.

and reoccurring revenue from that business than a traditional cyclical hardware company.

And Nvidia is trying to follow that game plan and has reasonably been successful over the last couple of years to establish that concept with the market as a whole.

And the reason they're kind of able to do that is they're the highest value add in their space and a decent amount of why folks are purchasing their chips versus somebody else outside of them.

Having this spread in comparison to the rest of the market in terms of the value add is also software.

So they've been trying to make that pivot to have the market view them as more reoccurring revenue business rather than a pure cyclical, which traditionally the semiconductor space has been.

Yeah, so you bring up a perfect point.