Steve Eisman said “the AI story goes on,” but identified OpenAI and Anthropic as its potential weak points.
- David Sacks said the AI bubble and “SaaS is dead” narratives were getting “shredded.”
- Nvidia’s surprise outlook squeezed short sellers, with its daily value at risk estimated at $1.48 billion.
- Nvidia reportedly paused some cloud-financing deals amid antitrust concerns, while apparently exploring a potential $12.9 billion acquisition of Hugging Face.
Nvidia’s (NVDA) record quarterly results won praise from Elon Musk, Steve Eisman and David Sacks after its surprise growth forecast sent the stock soaring and squeezed short sellers.
NVDA stock jumped nearly 9% on Thursday, adding about $440 billion to its market value and breaking a four-quarter pattern of post-earnings declines.
Nvidia’s Billion-Dollar Daily Run Rate
“Nvidia is doing $1 billion in revenue PER DAY. Insane,” Pro Capital CEO Anthony Pompliano said on X. “Impressive,” Musk replied. Nvidia generated $96.221 billion in its 91-day fiscal second quarter, averaging about $1.06 billion per day. Revenue rose 106% from a year earlier, net income hit $60 billion and gross margin stood near 75%. The larger surprise came on the earnings call, when CFO Colette Kress forecast 70% revenue growth for fiscal 2028, well above Wall Street’s 44% estimate.
CEO Jensen Huang said supply was limiting the outlook. “Our demand is much greater than 70%,” Huang said. “Our supply allows us to confidently deliver 70%.” Based on the consensus fiscal 2027 revenue estimate of $396 billion, the forecast would place fiscal 2028 sales near $673 billion.
Eisman Backs Nvidia-Led AI Boom
Eisman, best known for betting against the U.S. housing market before the 2008 financial crisis, said the results supported the durability of the AI expansion. “Nvidia’s results point to one thing. The AI story goes on,” he said on Substack. Eisman said the industry’s main vulnerability was not Nvidia or the hyperscalers funding the infrastructure buildout, but the economics of major AI model developers.
“The Achilles heel of the AI story rests not with Nvidia and not with the hyperscalers but with Anthropic and OpenAI,” he said. Eisman expects the cycle to continue unless open-weight models trigger a price war or another weakness emerges among frontier AI labs.
Sacks Rejects AI Bubble Fears
“The ‘AI capex is a bubble’ and ‘SaaS is dead’ narratives [are] getting shredded this morning,” Sacks said on X after Nvidia surged and Salesforce rallied about 20%. Sacks served as U.S. President Donald Trump’s White House AI and Crypto Czar from January 2025 through March 2026. He highlighted Nvidia’s revenue growth, profitability and 70% outlook, which surpassed expectations despite supply constraints. Sacks also pointed to Salesforce’s fastest bookings growth in four years and quoted CEO Marc Benioff: “The UI is the AI.”
Nvidia Shorts Get ‘Decimated’
Veteran tech journalist Tae Kim said hedge funds had shorted Nvidia after the initial earnings release, expecting the stock to repeat its recent pattern of falling after strong results. Kress’ surprise forecast then forced many to cover their positions. “Just imagine all the quants and hedgies piling into Nvidia short after the print,” Kim said, only to be “decimated” by the 70% guidance.
Kim said some funds had used Nvidia shorts to finance long positions in other chipmakers. The resulting losses prompted them to cover shorts and sell longs, contributing to unusual moves across the market. S3 Partners estimated Nvidia had $61.3 billion in short notional exposure. Combined with 2.41% daily volatility, this represents about $1.48 billion in daily value at risk, the second-highest in its analysis behind Micron at $1.62 billion.
Nvidia Financing Plan Faces Scrutiny
The strong results come as Nvidia reportedly paused some deals under its AI Compute Partnership amid internal concerns that the program could attract antitrust scrutiny. The initiative promised to rent unused GPU capacity from smaller AI cloud providers, giving them guaranteed revenue and making it easier to finance infrastructure purchases. Nvidia would also receive 50% of rental revenue earned above an agreed hourly threshold, allowing it to profit from both chip sales and subsequent usage.
Nvidia disclosed $36 billion in commitments under agreements typically lasting six years. The company had also sought some control over which customers could rent the capacity, according to the report, prompting resistance from potential partners.
However, an Nvidia spokesperson told CNBC that the business model introduced in July “is still in place and continues to evolve due to high demand,” indicating the program could be revised rather than abandoned.
Reports separately said that Nvidia could acquire open-source AI platform Hugging Face for about $12.9 billion. Co-founder Thomas Wolf told Bloomberg that the startup had long attracted acquisition and investment interest.
How Do Retail Traders Feel About NVDA?
On Stocktwits, retail sentiment for NVDA was ‘extremely bullish’ amid ‘extremely high’ message volume.
One user said, “$NVDA maybe 220 tomorrow but not much more for the Put holders. NVDA is once again the market's fair-haired child.”
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Another user said, “Nvidia acquiring Hugging face. Hyperscalers $AMZN $ORCL better watch their investments as open source and open weight models get served directly by DGX Cloud. $NVDA undisputed champion with this move. $OPEAZZX $ANTHZZX better hurry going public or else current valuations are going to erode fast.”
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NVDA stock has gained 22% this year, making it the best-performing member of the “Magnificent Seven.”
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