What do you think about NVIDIA's latest chip release?

Revenue up 85.2% is indeed impressive, and the H200 launch event looks pretty intimidating. But let's be honest—with a PE of 31.4x sitting there, what does that mean? The market has already front-loaded years of growth expectations. Think about it: how long can 85% growth last? Can the next quarter be just as explosive? Once growth slows even a little, the PE will have to be repriced, and that adjustment won't be gentle. Barron's article mentioned the relationship between NVDA and SpaceX—sounds like an interesting story, but a story is a story, valuation is real. At this price, going up is icing on the cake, but coming down would be adding insult to injury. I think it's better to wait and see. A good company doesn't equal a good price. Let's wait for the valuation to digest.

Earnings quality is the real highlight. 85.2% revenue growth is nothing special; the key is the net profit margin hitting 63%—meaning for every $100 of chips sold, the company keeps $63 in real cash. What does that mean? Consumer goods leaders have net margins of only 10-15%. NVDA's profit efficiency is a whole different species. The H200 launch isn't a marketing gimmick; the margin dominance is real. While the market is still obsessing over short-term stock price fluctuations, people who truly understand the business are looking at this—there's no other AI infrastructure company in the entire market that can sustain this kind of profit margin. Earnings quality is right there; long-term bullish is no problem.

Technicals do say overbought pressure is low—RSI is only 46, far from overbought. But I actually think this is when you need to be more careful. What does RSI 46 mean? It means the market hasn't really gotten excited yet—so where did the previous gains come from? Sentiment, that's what. Look at the distance from the 52-week high—still 13.3% away. What does that tell you? This rally hasn't even hit real resistance—it's sentiment-driven, not fundamentals-driven. When RSI is neutral, it's easiest to get carried away by sentiment because technical traders see a low RSI and think it's still buyable, only to hit selling pressure. I'm not saying NVDA is bad—the H200 is indeed strong—but at this level, technical pressure hasn't been released yet. The more sentiment pushes, the bigger the pullback probability. Wait until RSI is actually above 70 before talking about overbought. Right now, it's coiling, not launching.

RSI is only 46, in neutral territory, meaning it's not overbought at all—in fact, it's far from it. It's still 13.3% off its high. What does that distance mean? It means there's room to the upside—a breakout would confirm the trend. Conditional statement is clear: RSI not overbought, still far from the high—if it can break out effectively, that's a real breakout, not a false signal. I'm bullish now, and my logic is simple: valuation isn't expensive (PE 32x), RSI isn't overbought, and there's 13% upside waiting.

After the H200 launch, the stock price actually fell 2.9% - that itself tells the story: good news has been priced in, and the market is retreating. Moreover, the short-squeeze days (days to cover) are only 1.9 days, meaning most short sellers have already been forced to cover. Think about it: when all the shorts are gone, who will provide a buffer for declines? It looks calm now, but once market sentiment turns, selling pressure without short support will be like a free fall. Plus, Super Micro is still facing export reviews, and the supply chain itself is hanging in the balance. I think chasing now has a completely unfavorable risk-reward ratio.

Honestly, I think the market is underestimating the significance of this launch. The stock price actually fell 2.9% over the past month, showing the market is still waiting and hasn't fully digested the H200 as a positive catalyst. But look, PE is only 32x - for a core AI infrastructure play, this valuation is not expensive at all. The H200 is not a minor tweak; it's something that can truly change the cost structure of generative AI training. The current market reaction seems more like it hasn't realized the weight of this yet. Once money gradually catches on, I think the stock price still has room to go up.

Testing some

Agree with your view, the H200 performance improvement has a profound impact on AI costs.