That's Barron's Tae Kim who is perched on the catbird seat that used to be occupied by Tiernan Ray and before that by Eric Savitz.
Here's the quick hit with that headline:
How should investors assess the report? Nvidia shareholders have been best served by taking a long-term view on the stock and not selling in response to volatility. Unless there is a dramatic change in Nvidia's long-term fundamental outlook, they should hold steady.
The stock may go up or down this week or next month, but over time, Nvidia’s solid fundamentals have tended to win out. Big Tech has continued to increase its capital expenditure budgets, while emphasizing that demand for AI is outstripping capacity. According to William Blair, publicly announced data-center deployments for 2026 could add nearly $100 billion in revenue for Nvidia, including sovereign AI initiatives and new GPU cloud projects from OpenAI, CoreWeave, xAI, Oracle, and others.
Beat or Miss, Stick With Nvidia Stock
Tae KimUpdated 2025-08-27 12:56 ET / Original 2025-08-27 12:56 ET
How should investors assess the report? Nvidia shareholders have been best served by taking a long-term view on the stock and not selling in response to volatility. Unless there is a dramatic change in Nvidia's long-term fundamental outlook, they should hold steady.
The stock may go up or down this week or next month, but over time, Nvidia’s solid fundamentals have tended to win out. Big Tech has continued to increase its capital expenditure budgets, while emphasizing that demand for AI is outstripping capacity. According to William Blair, publicly announced data-center deployments for 2026 could add nearly $100 billion in revenue for Nvidia, including sovereign AI initiatives and new GPU cloud projects from OpenAI, CoreWeave, xAI, Oracle, and others.
With the production of Nvidia's AI rack servers just ramping up, several quarters of robust financial performance should be on the way. As long as demand for AI computing resources keeps increasing, Nvidia's stock should rise as well.
It is now wrapped in Barron's liveblog:
Nvidia Earnings: Stock Rises Ahead of Critical Report Later Today
Follow live coverage and analysis of the chip maker's second-quarter results.
Last Updated:
Aug. 27, 2025 at 9:13 AM ET
Over the years our riff on that sentiment has been a less pithy but just as heartfelt:
Our judgement: If you want to own the future, own this company. That is not a new opinion.
That's the version that followed last year's Q2 report, "Nvidia And The Keynesian Beauty Contest (NVDA)"
Following on yesterday's "Nvidia Beats On Top And Bottom Lines, Shares Drop (NVDA)" and "Nvidia Q2 2025 Earnings Call Transcript, August 28, 2024 (NVDA)":
A repost from August 21 i.e. a week before NVDA released their Q2 numbers:
"Nvidia is nearing another milestone that would showcase its stunning growth" (NVDA)
We try to be careful with this type of writing. Speculating about a speculative investment out in public is an exercise fraught with downsides, among which is the Keynesian Beauty Contest aspect of information on an asset price. You not only have to be right about the underlying story but also on the market's reaction to that story should it come to pass.
With that caveat, and with an awareness that NVDA has from time to time shown an almost perverse reversal of the price trend going into earnings.... One of the most dramatic was in February 2024 when a short-but-sharp downtrend reversed in dramatic fashion:"....
Reminder: We believe AI is a bubble and have made the decision to ride the bubble.
