"NVDA crush-a-thon" After the close update

NVDA just beat every single number that matters, but there is one asterisk that we are paying attention to, revenue. $96 billion against $92 expected, margins at 75%. And they guided next quarter to the holy land that is $108 billion. And that guide assumes zero input from China. Now, there is one phrase from this conference call that is worth way more than this beat. And that is Jensen telling us to expect 70% revenue growth by fiscal year 2028. That is why my friends, you see the after hours gap up sticking like glue. And the market is clearly treating this as proof that AI demand is accelerating. But a full blowout beat is supposed to mean a clean quarter. And this one had one little crack underneath it. Free cash flow margin or FCF, this fell from 60% to 22%. And this all happened in a single quarter. Now, if you're like us, you are scratching your head as to why. And this is all happening because NVDA is now financing its own customers to take delivery of their own chips. So receivables ballooned, and the time to collect cash extended from 45 to 60 days. NVDA is now extending payment terms on large multi-quarter deals. So the translation here is demand is so hot that some customers need NVDA to float them the money to take the compute. So this is vendor financing to the 10th power and it is very new for NVDA at this scale. So we posed this question yesterday before the close. We needed direction in chips. SOXX is now up after market and it is official. The rates excuse that's been weighing on semiconductors is gone for good. NVDA in the green, SOXX higher. The chip weakness is done for now and Jackson Hole is next. Our desk held NVDA into this print. It was a dicey one, but the options setup said we were headed in the right direction. We're happy we did. And that is just one unit of risk we have on right now. If you wanna see the rest of our book across energy, metals, and yes equities, just comment letter below and I'll send you the link. That's another W for Jensen. Now I'm going to go buy a leather jacket.