RJ Hamster
All Eyes on the Nvidia Earnings
All Eyes on the Nvidia EarningsTech shares clawed their way back from the brink yesterday. That was good news. However, the recovery felt more like a limp than a sprint, weighed down by mounting fears that December’s anticipated Fed rate cut might not happen.The S&P 500 scraped back to 6,760 after flirting with its 50-day moving average, while megacap tech stocks finally halted a three-day bloodbath.The week’s trading was dominated by Fed officials’ skepticism about the December rate cut. As a result, market odds have nose-dived from 95% just weeks ago to a coin flipThe recent government shutdown strangled the data flow right when the Fed needs it most, with the White House confirming some October data may never see the light of day.So, the Fed will have to make its decision without having full access to data.Now, Wall Street is holding its breath for Nvidia’s Wednesday earnings report, where options traders are pricing in a wild 6.2% swing either way. (Photo: Nvidia)The AI kingpin is set to report Q3 fiscal 2026 results after the bell on November 19, and the stakes couldn’t be higher.This isn’t just another earnings call.It could decide the market’s short-term sentiment, as traders are starting to become anxious about all the AI spending.”Its earnings will be a huge test for the markets and the AI-trade, and could either ease fears about AI valuations or inflame them considerably,” said Kyle Rodda at Capital.com.  Kyle Rodda at Capital.com (Photo: Bloomberg)As a proxy for Wall Street’s risk appetite, Bitcoin reveals a lot about traders’ mindset.The world’s favorite digital asset stumbled below $95,000 yesterday, a steep drop from its October high above $126,000.Long-term holders have offloaded more than 815,000 BTC over the past month, the largest such wave since January 2024, banking over $3 billion in profits since early November.Not only that, companies that loaded up on Bitcoin as a treasury asset, such as Michael Saylor’s Strategy, are hitting pause on their Bitcoin buying sprees.Some might even start selling to pay back loans.Investors are keeping an eye on it to see if it could turn into a “perfect storm” for Bitcoin’s sell-off.Data Centers Are Starved For Power, And This Company Provides ItToday’s Stock Pick: Bloom Energy (BE)You would be astonished by how many AI data centers are in the planning stage.(This means developers are in the process of securing land and getting permits.)Just look at the graph below:  (Source: WSJ)Not only that, Big Tech companies are spending a boatload of money on AI infrastructure. In fact, Meta and Microsoft are spending about 35% of their sales on capital expenditures.  (Source: WSJ)Now, there’s one issue…These data centers need a LOT of energy.GE Vernova CEO Scott Strazik said his company — the manufacturer of equipment to generate electricity — is nearly sold out for its output through 2028.So, data centers are starving for more energy.  (Source: WSJ)All of this could be good for Bloom Energy.It is a clean energy company that builds solid oxide fuel cells, which are “mini power plants in a box.” Most importantly, they generate electricity on-site, using natural gas, hydrogen, or biogas with ultra-low emissions and no need for the traditional grid.What makes it unique is that it doesn’t require data centers to be constructed close to power plants. Rather, they can draw energy from Bloom boxes, powered by energy sources that can be transported anywhere.“The growing demand for essential electricity and the knowledge that the climate cannot sustain the status quo require that we rethink how to shape the transforming global energy marketplace,” said Bloom Energy CEO KR Sridhar.  (Photo: Evan Krape)Listen, the AI boom is pushing America’s energy grid to its breaking point.As the servers powering large-scale AI models demand more and more electricity, not to mention the massive cooling systems that keep them from overheating, the Department of Energy now forecasts a 15–20% spike in total U.S. energy demand over the next decade.By then, data centers alone could consume up to 9% of all electricity generated in the country, according to EPRI.Indeed, that kind of demand is forcing bold new strategies.Microsoft, for example, just announced plans to restart the shuttered Three Mile Island nuclear plant to power its data centers. It’s a signal that the race for AI dominance is now directly tied to securing reliable, scalable energy.But here’s the problem: the current grid can’t keep up.A single AI data center can consume as much electricity as 800,000 homes, roughly the same power needs as a city the size of San Jose.And this is happening on a grid already stretched thin.We can’t just build more electricity grids quickly. If we need 750 TWh of new demand, it will require 115,000 miles of new transmission by 2030. There were just 55 miles of transmission built in 2023!  (Source: Bloom Energy)That’s where Bloom Energy comes in.With delivery times as short as 50 days, Bloom’s fuel cells give AI companies a faster path to power. These servers can be deployed on-site as a primary energy source or supplement the grid, offering what traditional infrastructure can’t: energy independence.In fact, Bloom-powered data centers can function completely off-grid, giving operators the freedom to build where it makes the most business sense, not where the power lines happen to be.More importantly, Bloom Energy Servers produce that power through a non-combustion process, making them cleaner and more efficient than fossil fuel-based alternatives. They can run on natural gas today, and switch seamlessly to biogas or green hydrogen tomorrow, meaning zero-emissions or carbon-neutral operations are fully within reach.That’s the main investment proposition for Bloom Energy.The business is doing well right now.The most recent quarter saw a 57% y-o-y revenue growth. Non-GAAP operating income jumped by 475%. EPS was also positive at $0.15 per share.  (Source: Bloom Energy)Bottom line: The world has a problem. Bloom Energy has a solution. Namely, it can offer instant power solutions for surging energy demand. The company is well-positioned for the next few years. EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!  © All Rights Reserved, Trade AllianceUnsubscribe | Manage Preferences |
