Why NVDA’s Stellar Earnings Aren’t Always a Win for Traders

Everyone’s been talking about Nvidia’s (NVDA) blowout earnings announcement today.

The mega-cap chipmaker was already having a banner year, with shares up more than 220% since the start of 2023. Then management threw a massive cherry on top, announcing quarterly revenue of $13.5 billion — more than double sales from the year-ago quarter.

And earnings of $2.70 per share… up more than 429% compared to last year.

Shares were up nearly 9% in pre-market trading, pushing the stock price up to $512. And it’s no surprise, really; this is the third-straight forecast that has completely surpassed Wall Street estimates.

And it’s exactly the kind of stock I would NEVER trade over earnings…

I know what you’re probably thinking…

Tom, you’re crazy! How could you say that about NVDA?

But let me explain…

You see, there is a right way and wrong way to trade during earnings season, and if you’ve ever traded a call option through earnings, watched the stock’s price rise on the earnings announcement, and then looked at your call option only to find it has lost money, then you know exactly what I’m talking about.

It happens in every earnings cycle — traders lose money on both calls and puts trades despite price moving in the desired direction.

And today’s NVDA announcement was no different. Just look at how the stock reacted after the market opened! Shares went from being up nearly 10% in pre-market trading to finishing the day barely breaking even. That means traders holding near-the-month NVDA calls likely got burned.

Now, I get why people would be looking to make this kind of short-term trade on NVDA. Everyone wants a piece of the AI action, and market experts are predicting that this will be the fastest creation of wealth in history.

But NVDA trades at more than $470 per share! To get into 100 shares of the company leading the AI revolution would cost more than $45,000 — far more than the average trader can afford.

And it’s not just NVDA; ​​most artificial intelligence stocks are too expensive for the average American investor to buy right now.

So what the heck are investors supposed to do?

One of my long-time colleagues spent the past weeks researching that exact question, and he just sat me down to reveal the answer… a way to invest in today’s leading AI companies at a fraction of the cost of traditional methods…

Imagine being able to make a long-term investment in NVDA for just $99 per share RIGHT NOW… instead of $470.

Or Microsoft — currently trading around $320 a share — for just $42 a share RIGHT NOW…

Or GOOGL, priced by the market at around $130, for less than $20 a share RIGHT NOW…

It all boils down to an under-the-radar strategy Wall Street doesn’t want you to know about…

This little-known strategy lets you build your AI stock portfolio at a 75% discount – with 10x the profit potential.

And it’s, hands down, the best way to claim your profits on the AI revolution. Just click here to see how it works!

To your continued success,

Tom Gentile
America’s #1 Pattern Trader

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