Nvidia Can Hit Home Runs, but Championships Need a Full Lineup

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Hello, Reader.

Babe Ruth is inarguably one of the most famous baseball players in American history.

He became legendary for his 714 career home runs, especially with the New York Yankees, during his time in Major League Baseball in the 1910s–1930s.

Today, he is widely regarded as the greatest baseball player of all time.

Wall Street has a similar elite player: Nvidia Corp. (NVDA)

Since 2023, Nvidia has reached superstar status with its massive earnings beats, often, like Ruth, knocking it out of the park.

Its first-quarter results, released Wednesday, were another tape-measure shot. Revenue soared 85% year-over-year to $81.6 billion. And first-quarter earnings jumped 140% year-over-year to $45.55 billion, or $1.87 per share.

Thanks to AI demand, data center revenue rose 92% year over year to a record $75.2 billion.

CEO Jensen Huang emphasized that “agentic AI” and AI factories are driving long-term demand, with Nvidia targeting over $1 trillion in AI infrastructure opportunities through 2027.

But the overall market reaction following Nvidia’s earnings release was muted.

This has become a common occurrence with Nvidia earnings: The company delivers huge growth, but the stock already priced in near-perfection beforehand. That means an “excellent” report can lead to a flat or slightly down reaction if investors were…