This notebook right here I have the one stock I'm buying over Nvidia right now, but before we do that, first of all, we have to talk about the incredible earnings from Nvidia They blew everybody out of the water literally video game level earnings and not in that sense. Revenue doubled the erroneated to 13.5 billion US Dollars higher than Nvidia's own forecast and the market is all EPS 2.70 a share 429 year-on-year rise Frank And there are no signs of slowing the company forecasting for the September quarter revenue of 16 billion dollars, blowing away estimates and representing if met at 170 year-on-year rise. We're gonna review the numbers today. We're gonna go over the business model and where Nvidia is headed and their very bright future.

and I'm going to explain to you why I'm not investing in the video right now despite the greatness of this company. and I'm really a fan of what they're doing. But at the end of the video, I'll actually reveal to you which company I am investing right now for AI exposure and Nvidia exposure at a much better price with much more upside. And no, it's not AMD So relax over there the AMD Fanboys before we get started.

I Have to give a huge thanks to today's concert 10ds 10ds are working with me for over a year. They provide a free newsletter for you to get the best information on the Internet about the stock market economy geopolitics. They have a free options flow, an options calculator, you can link your own brokerage to their website, and get personalized information. They offer some of the best info and data I've seen and they're absolutely free.

There's no premiums, there's no upsells. Tell them Tom sent you the link to join is below and thank me later once you join because look at the end of the day, good information is the key to success in this market and attendees provide that for free, so why not give it a go? Let's go back to the video. So Nvidia just beat earnings. They beat Revenue David EPs and they got it for 16 billion dollars of Revenue in the next quarter with 250 percent increase in revenue from data centers.

Now we're going to talk about data centers in a minute because that's the story in its own. But they also announced 25 billion dollars of a buyback and at this point I Think it's pretty safe to assume that Jason Hank is definitely up there with the top three CEOs in the market right now along with Elon Musk and probably Anthony Nodo I know I'm gonna get a little hate for this, but you know, shout out to Anthony Auto you're in that list for me, you're my top three. CEO You know at the end of the day you have to look at CEOs with what they're working with, what their roles do they have, and how much championships they win. you know Jensen Hang is you know he has a top tier team Elon Musk has a top tier team Anthony Otto he took so far when it was hot trash and look what it's making it into.

So Anthony Noro, you're on my list now. Let's move on and by the way, if you want to come on for an interview I'd love to have you now. Look, let's dive a little bit deeper into the Nvidia numbers and then after that I'm going to reveal to you which stock I'm actually buying because I do want to show you how great the Nvidia numbers are, but also where the chinks in the armor can be if you actually look a little bit deeper, where the risks are and where the problems are now. Nvidia numbers are some of the best we've seen recently.

Revenue is up a hundred and one percent year over year, but obviously data centers leading the charge. I'll talk about that in a second. We're going to do a deep dive into every single kpi of Nvidia The Guidance: Out of this world they're getting for 16 billion dollars for the next quarter. And that's absolutely insane because the estimates we're talking about 12 and a half billion.

That's a 30 increase in the guidance, quarter of a quarter and a 20 increase from the already insane 13 and a half they did this quarter. So the insanity of this is you know I can't put it better than Denise A friend of the channel and by the way, I had an interview with him here in the channel. Go check it out Then I said it the best jaw dropping demand. So when we're talking about this jaw-dropping demand, let's break it down because when you do break down these things into the Kpis, your head literally flies off how good this thing is.

look. Data Center Revenue went from 2 billion in 2021 to 10.3 billion. From Q1 2021 to Q2 2023 to years up from 2 billion to 10.3 billion. That's a 400 increase in two years now.

Don't go two years back. just go one quarterback core. What? I Recorded: they went from 4 billion to 10 billion. That's 140 increase in revenues from data centers quarter over quarter.

So this jaw-dropping demand is definitely in the data center section, not in the other stuff. But hey, the other stuff they do, they actually are doing pretty well. Look, the gaming sector actually suffered a little bit of a decline recently, but it's bouncing back up. It was a 2.8 billion in Q1 of 2021 and it dropped all the way to 2 billion in Q2 of 2022.

Now it's bouncing back to two and a half billion. so it's trending up. It is down from the peak by 11, but it's up year over year by 25. So gaming is recovering.

It's not gonna be as huge as data centers, but it is a major major impact on their financials. Now the professional visualization I Can't say professional visualization I Can't say it now in the professional visualization side. Absolutely insane. Q1 2021 370 million Now here's the crazy part.

if you look at this number and you compare it to Q2 2023, they've only done 379 million, so it's flat if you compare it to Q2 2021. But again, there was a major drop. They dropped massively to 200 million in Q3 2022 just nine months ago, and now they're bounced back to 379. So the peak level? They're up 90 on this sector within three quarters.

Absolutely insane. So all the trends are actually going up for NVIDIA Not just data centers. Now a lot of people talk about the automotive side as their big next you know, s-curve explosion implosion I Don't know. Look at the end of the day, it's still a minuscule amount of their business.

We're talking about 150 million out of, you know, 13 billion in Revenue. So let's just pump the brakes on the Automotive side. But the growth rate is actually impressive I'm not going to take this away from them. They deserve their flowers in Q1 2022.

So in Q1 2021, they had 154 million dollars in revenues from Automotive in Q2 2023. Just two years later, they're 253. So we're talking about 64 growth in two years. It's not as crazy as the data centers, but it is growing so you can't ignore this.

but it's still a tiny portion of the entire business right now. If you're buying Nvidia, you're buying it for the data center business. Everything else is just adjacent to this. And as far as this increased jaw-dropping demand for the data center business, where is it actually coming from? Well, look, the entire server world as we know, is basically changing.

We're going from CPUs to Gpus because of all this AI Requirements Now, whether you're upgrading or building new ones, you will have massive Capital expenditures, changing your infrastructure to fit Ai And that's where Nvidia comes in because they have pretty much number one position in the market and the demand shows this. Nobody comes close, But the problems here, and we have to actually talk about the issues here is that it's not an infinite project and like Palantir for example. and I'm sorry to bring plant here back into The Fray because you didn't click this video to hear me talk about patent theater, but Palantir has pretty much an infinite demand as long as they provide these Services The companies, at least in theory, might need them forever with this project. With the data Center upgrade project, or you know, new builds, we're talking about the massive total addressable Market of about one and a half trillion dollars.

It's a lot of money. It's a lot of revenues, but it's a finite project. Whether it takes two, three, four years, at the end of the day, it's gonna run out, it's gonna dry out, and that's something that you have to take into consideration. This isn't a, you know, a start of a new 10-year cycle where these demands basically come back every year.

The other problem is, there's gonna be a lot of competition where so much meat in the bone, so much money in the market, competition has to follow, whether it's internal or external. A lot of their clients probably going to start building their own because at these prices, why not try. And of course, there's macro issues. The economy can go to the toilet or a new working breakout geopolitical stuff and that obviously will hurt Nvidia because the demand for data centers.

it's not going to go as crazy if the economy is in the toilet. You would agree with me here, but still, Nvidia is a terrific company with a bright future and the question here might be for you is, if that's the case, why am I not buying why I'm about to talk about a whole different company in about minute. Well, number one, they are a terrific company. But the reason I'm not investing at this juncture is very, very simple.

They're currently trading at 509 dollars per share. That's implying an 85 growth every single year for the next five years. I ran my DCF I reverse engineered this I use a 12 discount rate. I'm getting 85 growth now.

Look, they might get it. They might not. It depends on how long this bull cycle continues with the upgrades of the data centers. Now to me their price right now as if that 85 growth is a lock.

I Don't know that might take two or three years for the demand to dry out I Don't know. There's also obviously risk I mentioned geopolitical macro risks at this point Nvidia is priced for total Perfection for the next five years and I think there's other undervalued plays out there for you to invest in and myself. Of course this is not. Financial Advice: doing research, make your own decisions, but I think for me, there's better opportunities out there that a little bit more undervalued than misunderstood Palantir being one.

But again, this video is not about Palantir, but there's another. Let's talk about it right here. So I Want to talk about a stock that's called Super Microcomputer Smci Now this company is currently trading 277 dollars per share. They they are up 180 over the past six months.

Yes, I just said it. They are up 180 over the past six months, but they're still hella cheap. Hear me out before you laugh and make a decision. I'm not just saying this.

I'll get to the numbers in a second now. This company has massive Nvidia exposure because what they do is they build servers And they build servers with Nvidia components. So whatever it is NVIDIA is doing. whatever that Demand on the Nvidia side, it's going to flow over to this company.

Supermarket computer is going to actually build the servers. They have absolutely insanely good products. Companies love them. They have a terrific relationship with Nvidia and they're pretty much the first to the market with all the newest Innovations coming out of Nvidia because of their insanely good relationship with the company.

Now look at the end of the day. let's look at the numbers I'm going to show right now even though they went up 180 over the past six months because of this Nvidia relationship and that Nvidia correlation which is there. Make no mistake about it, they're still trading at 23 priced earnings 23pe my guy, 23 not 230 like Nvidia 23pe. They're only a 15 billion dollar cup company I Know I Just said only.

but compared to Nvidia 15 billion doesn't seem as much. They're trading at twice price to sales, two price to sales. Yes, I just said it. two 2x price to sales.

They have twice the assets and their liabilities. They have more cash than debt 450 million of cash, 290 of debt. They have a nine percent net profit margin and that's a hardware company. The revenue grew 37 of the past year and 113 of the past three years they have 80 of institutional shareholding.

Their ebida grew 122 of the past year and 700 of the past three years. And look at the efficiency: Their operating expenses, while they just increase revenues by 37, only went up by 12 percent. Now, they're also not Capex heavy. Which is the part that blew my mind because at this point I'm expecting to see a lot of capital expenditures.

This is a hardware company. There's Massive Capex. Their Capex is currently 30 million per year. 30 million per year for a company that generates seven billion dollars in revenues.

Look, Nvidia just gave you 13 billion in revenues and they're growing like crazy. This company is generating 7 billion. They're extreme expression they're you know, built like a tank, great margins, great cash flow, and they're trading at this be 23pe twice sales. With all this relationship and correlation with Nvidia Absolutely insane now.

I actually ran a DCF on this company and I assumed only 30 growth Now nothing spectacular. 30 growth at 12 discount rate I got a 450 per share price Target on a 30 growth. Imagine if Nvidia isn't bullshitting and Nvidia is actually going to fly up, What do you think is going to happen to this company? You don't think their demand is going to adapt like crazy because they're actually building the servers that Nvidia is building components for. So these guys are going to fly up.

Yes, they're hyped, but look at how cheap they're still trading, it doesn't have to be a mutually exclusive Arrangement But look, if you want to invest in this company, you have to understand something very important. It is a high top company. Smci is a hyped up company, No company goes 180 in six months and it's not a hyped up company it is. But there is a way to invest in high top companies without overpaying.

I Literally made a video called How To Invest In High Top Companies Without Overpaying showing you the entire system, warning you from the pitfalls, showing you how to do it I'm going to put it on the screen right now on the end screen. Go check it out right now and if you haven't yet, make sure you subscribe to this. Channel And if you have yet, go to our Patreon, check it out and join our Academy There's final spots left before we go from 35 to 100 per month. Learn how to do a DCF Learn how to become a better company evaluator Join the academy.

Try it out for 30 days for risk-free money back guaranteed I'll see you in the next video.