Good morning! Today’s edition unpacks another ridiculous earnings report from Nvidia, the freshly inverted yield curve, and more. First time reading? Join 190,000 self-directed investors gaining an edge every morning. Sign up here. 

Nvidia delivers big

If the Federal Reserve dictates the cost of money, then Nvidia determines the amount of hype in financial markets. 

The AI bellwether delivered on earnings once again Wednesday, smashing Wall Street’s expectations and reaffirming its status as the most important name in both the stock market and artificial intelligence. 

“Demand for Blackwell is amazing as reasoning AI adds another scaling law — increasing compute for training makes models smarter and increasing compute for long thinking makes the answer smarter,” said CEO Jensen Huang. 

Here’s what the company reported for the fiscal quarter ending in January: 

Nvidia’s outlook, too, impressed Wall Street, with first-quarter revenue for fiscal 2026 forecasted to hit roughly $43 billion. 

“We’ve successfully ramped up the massive-scale production of Blackwell AI supercomputers, achieving billions of dollars in sales in its first quarter,” Huang said. “AI is advancing at light speed as agentic AI and physical AI set the stage for the next wave of AI to revolutionize the largest industries.”

Nvidia’s impact, of course, extends beyond its own balance sheet.

Its chips provide the oxygen to the AI economy while its dominance dictates how trillions of dollars in capital are allocated across markets. 

3 takeaways from the blowout results

For the bulls, these earnings confirmed that AI spending isn’t slowing down and Nvidia will continue to be the prime beneficiary of the arms race. 

For the bears, the stock's tepid reaction and margin pressures suggest that even perfection may not be enough to justify Nvidia’s sky-high valuations forever. 

Shares of Nvidia are up about 65% over the last 12 months.

Elsewhere:

📉The bond market is flashing a warning. The 10-year Treasury yield passed below that of the 3-month note on Wednesday, known as an inverted yield curve. Investors remain concerned on how President Trump’s ambitious economic agenda will impact inflation, growth and geopolitics. The previous yield curve inversion happened October 2022, but was not followed by a recession. (CNBC)

🐓 Moderna stock tumbled after hours. Shares fell over 5% following a report that the Health and Human Services Department was reevaluating its $590 million contract for developing a bird flu vaccine. The funding was awarded in the final days of Biden’s administration, and currently the US is in the midst of a outbreak of bird virus. (Barron’s)

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About me:

📰 I’m Phil Rosen, co-founder and editor-in-chief of Opening Bell Daily. I’ve published books, lived on three continents, and won awards for my journalism, which has appeared in Business Insider, Fortune, Yahoo Finance, Bloomberg and Inc. Magazine.

I write our flagship newsletter to prepare you for each trading day, unpacking markets, economic data and Wall Street with analysis you won’t find anywhere else. Feedback? Write me at phil@openingbellmedia.com, reply directly to this email, or ping me on X @philrosenn.