Ale's World of Stocks on $NVDA (Nov 8, 2026)

Because for the number one holding here, the largest, well, we have what was truly the crown jewel of the entire AI revolution. I am of course talking about Nvidia, and its trading symbol " NVDA".

Which represents an astonishing 42% of its entire investment portfolio, worth over $125 million.

Now, if we look at the stock chart here, we can see that Nvidia has had a very difficult time recently, losing almost a quarter of its value in the last month alone. Although, of course, it is still performing very well in the long run, again, some of this recent pullback comes directly from post-midterm anxiety .

In fact, chip stocks as a whole suffered their biggest sell-off in years, with pessimists also pointing to rising chip costs and even concerns that cloud giants are designing their own chips that could slowly begin to erode Nvidia's market share.

So, let's quickly review some of those concerns. As I mentioned in my last segment on midterm selling, which I will link below for those who wish to delve into the details, I personally do not see politicians suddenly hindering their local state-level economies by completely banning AI data centers .

I think they will negotiate to obtain more tax revenue , and will put some restrictions in place where necessary, especially with regard to energy and its sources. And I believe that ultimately they will proceed as planned.

As I said, even if they don't reach an agreement, I think these tech giants could simply move to another location over time. I'm not saying it's going to be easy, but I think they certainly have the experience and knowledge, and they've been around long enough to be really able to deal with these kinds of organizations or obstacles, whatever you want to call them.

But with artificial intelligence being integrated into everything we do these days in our daily lives and the operations of consumers and businesses around the world, there is nothing to stop this train at this point.

I'm not saying I'm a fan of it, but the reality is that demand for this artificial intelligence technology will likely continue to rise at alarming rates .

In fact, the top five cloud computing companies alone are expected to increase their spending on artificial intelligence from $800 billion this year to $1.3 trillion next year, supported by a global cloud order book exceeding $2.3 trillion.

This drives impressive results in Nvidia's income statement . For example, revenues more than doubled in the last quarter to more than $96 billion, with data center revenues alone jumping 117% to $89 billion.

This was achieved with an astonishing gross profit margin of 75%. What's even crazier is that they turned nearly $60 billion of that into net profit, also generating more than $21 billion in free cash flow in just 3 months.

I will admit that cloud computing companies designing their own chips poses a real threat that we as investors should monitor in the long term, because companies like Google, Amazon and Meta would certainly like to reduce the 75% profit margin they currently pay to Nvidia.

However, there are still two main reasons why none of these companies would simply abandon Nvidia. Firstly, in-house customized chips take years to design and produce, while AI models evolve every few months.

Therefore, for advanced training, you still need Nvidia's speed and flexibility, both in the speed with which it designs new configurations each year, and in the speed with which it updates with new software and adopts it on a large scale.

This leads me to the second reason, which is software, since all these external cloud customers, the actual companies that pay to rent computing power, still write their code directly on Nvidia's CUDA platform.

Therefore , if any cloud provider stops offering Nvidia devices, their customers will simply pack up and move to another provider that does.

Thus, this "ditch" of KODA software ends up trapping the entire ecosystem in place.

As for hardware, Nvidia continues to innovate at a pace that I don't think the competition can really keep up with. Therefore, although I believe that many of the technology giants will try to use their own chips wherever possible for their operations, and wherever it is appropriate.

They can certainly improve on that over time and help reduce some costs. But overall, I think Nvidia will probably remain the most important and necessary gold standard for the most serious work in the field of artificial intelligence.

In fact, they have already started shipping the next-generation Vera Rubin architecture. As CEO Jensen Huang pointed out, while Hooper generated $18 billion per gigawatt and Blackwell $25 billion, Vera Rubin is expected to generate $40 billion in revenue per gigawatt, a phenomenal figure.

What's even more impressive is that Nvidia no longer just sells discrete graphics chips, but now sells complete pre-built server units . They operate almost like ready-to-use computing factories, complete with brand-new Vera central processing units.

But now, because standalone AI agents require a lot of day-to-day computing to perform tasks and browse the web, Nvidia is building its own CPUs for them, sidelining the competition and capturing billions of dollars of corporate spending that previously went only to other chipmakers.

So, yes, Nvidia will face some increased competition, but it is also trying to take market share from other companies as well. Best of all, when you combine explosive financial performance with a recent price drop, Nvidia is now trading at a shockingly low valuation.

For example , revenues were around $130 billion in fiscal year 2025. Analysts expect these revenues to more than double in the current fiscal year to exceed $400 billion, and then double again to exceed $900 billion two years later.

This leaves them with a staggering operating income of over $600 billion , with an actual net income of around half a trillion dollars as well.

And now, folks, this means the price-to-earnings ratio will be only about eight . This is an insanely low level for the growth rate they are achieving. In fact, because of this, when you look at the price-to-earnings-to-growth (PEG) ratio, it is less than 0.5, which is more than 60% cheaper than the industry average, if you believe it.

Because of this, analysts maintain an average price target that could yield gains of over 75% in the next twelve months alone. Nvidia is now scheduled to release its next earnings report very soon .

This month, actually, I think it's on November 17th.

Looking at the history of the last thirteen reports, Nvidia's stock has actually declined immediately after eight of them, including the last four quarters in a row, which is a little worrying.

So, when you combine that history of the market demanding absolute profit perfection with increasing competition from large corporations, concerns about excessive spending on artificial intelligence, and perhaps also concerns about Democrats adding new regulations after elections and changes in governors.

Yes, this is not the easiest or safest stock to hold right before the new results are released .

Therefore, I completely understand the desire to wait a while to see how those results actually turn out. But again, I am not investing in this stock for quick or short-term gains, or for what will happen this month or next month. I'm looking at it much more in the long term.

From this perspective, I believe the stock still looks like a buying opportunity, given its very low long-term valuation. But again, I understand the desire of some to be cautious here in the hope that the stock will fall further after those profits, which is what I personally hope for as a shareholder. I actually want the stock to go down.

As a long-term investor, I always hope that the prices of my favorite stocks will fall so that I can get the lowest possible cost and then benefit from their great growth in the coming years.

I'm just trying to add a word of caution here, which is that you should expect some fluctuations. I think that will happen in the near future, given everything that is going on around them.

Just be prepared for significant price fluctuations. It may be up or down, but I simply think there will be some fluctuations.

But in terms of ranking, I still place this stock very high on our list. I can't raise it to Amazon's level. This is a stock I love very much. It's one of my favorites in the entire market.

Therefore, I cannot raise it to the level of Amazon.

But based on current evaluation metrics, I think I should give Nvidia a very slight edge in our list and put it in second place.