NVDA fell

Last night was one of those nights that reminds you exactly how the market works.

NVDA reported $81.6 billion in revenue. Up 85% from a year ago. Beat on revenue. Beat on EPS. Guided Q2 at $91 billion, more than what most analysts expected. By every traditional measure, this is one of the best quarterly results any company has ever posted.

And the stock went down after market.

If that surprises you, it shouldn't. I warned about this.

💻 NVDA: THE PERFECT QUARTER THAT WASN'T ENOUGH

The numbers are genuinely staggering. $81.6 billion in a single quarter. Data centre revenue hit $75 billion, nearly doubling year on year. Q2 guidance came in at $91 billion. This is an extraordinary business delivering extraordinary results.

But here is the thing. NVDA has now fallen after earnings in 7 of its last 10 reports. Not because the business is struggling. Because the expectations already priced into the stock are so high that even a spectacular quarter cannot satisfy the market.

This is what I call the hype ceiling.

Pete's Take 👇 I have been saying for a while that the hyped-up semicon trade was showing cracks. This is exactly what I meant. When a stock needs to grow 80 to 90% year on year just to stay flat, you are no longer investing in a company. You are investing in an expectation. NVDA is a brilliant business. But the easy money in the AI hype trade may already be made.

🔄 WHERE SMART MONEY LOOKS NEXT

So what do you do with this?

You do not panic. You do not dump your NVDA if you own it. But you do start asking a serious question.

What does the rest of your portfolio look like?

I have been quietly researching companies that are nowhere near the AI hype cycle. Non-tech. Non-AI. Companies with strong fundamentals, reliable earnings, and cash flows that do not depend on a single technology narrative staying intact.

The kind of companies that grow steadily, whether or not AI is having a good year.

That is the kind of diversification that lets you sleep at night.

🎁 I MADE YOU A FREE LIST

I spent a lot of time on this one.

I put together a curated list of companies I like based on their fundamentals. Strong balance sheets. Good earnings history. Not riding the AI wave, which also means they are not exposed when that wave eventually cools.

I am sharing it for free with the Invest with Pete community. No course. No catch. Just solid research I want to get into your hands.

NVDA is a great company. But great companies are not always great investments at every price. Right now, the smarter move might be to pay attention to the companies nobody is talking about.

That is exactly what this list is.

Happy Hunting!

Pete
Invest with Pete

🚨‼️ By the way, I’ll never PM anyone on telegram or any other social media platforms. If you receive any “Pete” messaging you, these are scammers impersonating me. Pls beware!

The information provided in this newsletter is for informational purposes only and does not constitute financial advice. Readers should seek their own independent financial advice before making any investment decisions. Please note that while Pete is a portfolio manager, the opinions expressed in this newsletter are his own and do not represent the views of any organization. Always perform your own research and due diligence before investing.