Yo Pit Crazies,

Nvidia doubled its revenue year over year Wednesday night and the stock still closed short of its record. Traders pushed it up 8.7 percent Thursday to about $228, which leaves it roughly three percent under the $235.47 close it printed on May 14. Doubling your sales and still trading below your high is a strange place for the most important stock in the market to sit.

Here is what came out. NVIDIA Corporation (NVDA) booked $96.2 billion in revenue for the quarter ended July 26, up 106 percent from a year ago, and guided the current quarter to $108 billion. Jensen Huang then told the street to expect about 70 percent revenue growth in fiscal 2028, roughly double what analysts had penciled in.

That guide is why the multiple looks smaller than the market cap suggests. NVDA trades near 25 times forward earnings, a normal number for a company growing at this rate. The earnings finally caught the price instead of the other way around.

Traders are still right that NVDA is the only game in town. My guess on how long that lasts is a few years. Records tend to get made when nobody can see that far out.

2 Year NVDA Chart

VIX trades a midweek low

The part I keep chewing on is how much of this runs on credit. Receivables climbed to $63.1 billion from $38.5 billion at the January year end, which works out to about 60 days of sales against 51 days back then. Operating cash flow came in at $24.1 billion on $59.7 billion of net income, because $22.3 billion walked out the door into those receivables.

NVDA also raised about $25 billion of debt in the quarter and lined up financing platforms with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR to pull in more than $500 billion of outside capital for data center buildouts. A GPU is now a thing that generates money, so somebody has to finance the purchase. General Motors Company (GM) has GM Financial and Toyota Motor Corporation (TM) has Toyota Motor Credit, and nobody calls either one a scandal.

Captive finance is old news. The size is what's new, and I want to see whether those receivables keep stretching next quarter.

VIX trades a midweek low

The CBOE Volatility Index (VIX) is pressing on 14 and could reach the 13s, what we call Zone 1, the lowest of our five volatility regimes. VIX hasn't closed in the 13s since December 2025, and the low for 2026 so far is 14.18 from August 17. That reading measures what traders expect over the next 30 days. October sits outside the window.

30 day VIX chart with 1 day candles

Nvidia is now booking more than $1 billion a day in revenue and clearing around $650 million a day in profit. An internal employee survey last summer, self-reported, put about half the staff at a net worth above $25 million. Money like that moving through Santa Clara shows up in GDP, and it keeps volatility sellers in business.

The calendar is the thing I wouldn't ignore. Kevin Warsh gives his first Jackson Hole keynote as Fed chair Friday morning, and the July FOMC drew three dissents in favor of hiking.

I still expect a year low in VIX Friday and lower into Labor Day, and I know I'm making that call into a live event.

Hopefully this was helpful,

Andrew