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Nvidia’s A Victim Of It’s Own Success…

Just like clockwork, every time Nvidia steps up and delivers a blockbuster quarter that flushes their doom-and-gloom narratives, these folks retreat to their comfy little corners and poke holes at something—supply chain, capital expenditures, or the ever-popular “bubble” theory.

Newsflash: Nvidia reported jaw-dropping Q3 2025 earnings with a 62.5% revenue jump to $57 billion and earnings per share soaring 60.5% to $1.30, smashing the street’s timid estimates. And guess what? They shouted from the rooftop that their order book is a staggering $500 billion—and growing—for AI infrastructure that powers the world’s top cloud providers and innovators.

But those analysts? They’d rather clutch their pearls over “potential” supply hiccups than actually admit Nvidia’s leadership executed another flawless quarter.

Let’s be real. How can we even talk about a bubble when global cloud capacity—the backbone of AI— is sold out?

When each Nvidia GPU delivers returns in the realm of 300% to 1000% ROI, you’re not looking at some speculative froth; you’re gazing at a revolution pumping out inferencing and reasoning workloads that are reshaping industries from healthcare to finance.

The data center revenue alone shot up 66% year-over-year to over $51 billion. If that’s a bubble, it’s one that’s locking in cash flow and profit like no other.

But here’s the kicker: the analysts won’t talk about the long game—they’re hypnotized by their short-term 12-month price targets. No one is bothering to drop 5 or 10-year forecasts because that would encourage investors to hold and think like long-term owners.

And that, my friends, would kill the gravy train of high-volume trades and juicy fee generation for brokerages. So instead, they toss out cautious tones, half-hearted warnings, and a generous helping of misplaced skepticism to keep you buying, selling, and sweating on every quarterly twitch.

And the irony? A bunch of these sell-side pros started riding the AI wave when it was clear it was winning—before mooning over Nvidia and the AI complex. Now that they’re proven spectacularly wrong, their fallback is to besmirch the entire sector, drape AI in “dotcom bubble” hand-wringing, and try to drag the narrative down with them.

Spoiler: This isn’t 1999, and this isn’t some ephemeral fad confined to Silicon Valley’s whims.

This is a global industrial revolution, orchestrating seismic shifts in how the world processes data, learns, and reasons.

Think about it: Nvidia’s chips power AI data centers, cloud services from the U.S. to Europe, Asia, and beyond. This is a worldwide evolution, not just a Wall Street flavor of the week.

Those who snooze on this colossal shift—comparing it to the dotcom bubble with a shrug—are embracing ignorance and will suffer for it. AI-generated tokens are skyrocketing; inferencing and reasoning workloads are growing exponentially as AI models demand ridiculous compute scale to power everything from chatbots to autonomous vehicles. Nvidia’s Blackwell architecture is flexing more muscle than a caffeine-fueled gym rat, boosting efficiency and output across all use cases.

Go ahead, question capital expenditures if you like. But remember this: every GPU Nvidia ships is a cash-generating machine. Between 300% and 1000% ROI on each unit isn’t your garden-variety capex project—it’s pure rocket fuel for the company’s expanding margin fortress and relentless growth.

If you’re looking for a bubble, watch the pointless debates about crypto or meme stocks—not Nvidia. This company is executing on multiple fronts, and investors ignoring this empirical evidence will only find themselves wiping egg off their faces again when Nvidia continues proving doubters wrong quarter after quarter.

Remember when Apple launched the iPhone, and analysts insisted it was just a gimmick? Thirteen years later, Apple’s iPhone business turned the world on its head and made early doubters look embarrassingly short-sighted.

Nvidia and the AI revolution are the new iPhone moment—and this time the globe is the stage.

So, dear investors: take a deep breath, ignore the sell-side’s “12-month worry window,” and consider the decades-long horizon where AI reshapes everything. Just maybe then, Wall Street’s favorite short-termers might join the party instead of throwing shade—because if they can’t beat Nvidia’s execution, they might as well try to ride the wave.

This is your moment to soak in the facts—not the snarky, short-term blather from analysts who missed the AI boat and now desperately swim upstream against the tide of history

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Just Another Falling Knife On Wall Street…

The recent plunge of the stablecoin USDe to 65 cents was more than just a minor hiccup in the crypto landscape—it morphed into a full-scale market meltdown that exposed deep fissures in the crypto ecosystem and sent shockwaves through equity markets.

But let’s not overlook the real star of this financial soap opera: Bitcoin’s margin trading frenzy.

Yes, dear reader, that seemingly magical tool allowing traders to dance on the razor’s edge with borrowed money played a starring role in dragging markets into a liquidity black hole, leaving investors drenched in forced liquidations and margin calls.

So, buckle up while we unpack the epic saga of a stablecoin de-pegging, margin call cascades, toxic balance sheets, and a Fed seemingly joyless about cutting rates—wrapped in a bow of seasonal market irony.

USDe, a stablecoin tantalizing investors with a juicy 5.5% yield, effectively moonwalked off its dollar peg to a shocking 65 cents amid a turbulent October. Not to be outdone, alternative crypto “stable” tokens like Wrapped Beacon ETH (wBETH) and Binance Staked SOL (BnSOL) didn’t just decline—they plummeted to 20 and 13 cents respectively.

Why the carnage? The culprit was a lethal cocktail of liquidity shortages and fragile balance sheets at key crypto players including Binance, compounded by a market saturated with risky leveraged positions.

Over $19 billion in crypto liquidations ensued within a 24-hour meltdown window, with 1.7 million traders caught in the crossfire.

The collapse revealed deep-seated structural holes in the balance sheets of projects relying heavily on yield-generation and basis trades that simply couldn’t withstand extreme market stress, turning what might have been a contained correction into a systemic crypto crisis.

Bitcoin doesn’t often take a backseat in market turmoil, and this time was no exception.

Thanks to rampant margin trading where traders borrowed up to 10x or even 20x leverage to amplify their Bitcoin bets, the market turned into a tinderbox waiting for a spark.

When Bitcoin’s price took a 27% nosedive from its October peak, forced liquidations hit a record high—nearly $12 billion wiped out in leveraged Bitcoin positions alone.

What makes margin trading so dangerously effective? It’s not just the borrowing; it’s the “crowd factor” of automatic sell triggers. When Bitcoin’s price hit certain levels, it wasn’t just one trader hitting the panic button—it was hundreds, sometimes thousands, simultaneously triggering forced sales.

This domino effect cascaded through crypto futures and options markets, magnifying price declines and intensifying volatility. Margin trading was the gasoline poured on an already blazing fire, dragging not just tokens but crypto-linked equities like MicroStrategy (down 29%) and BitMine (down 35%) into the red.

If this all sounds a bit like déjà vu, that’s because it is.

The USDe fiasco mirrored the notorious Japan yen carry trade where traders borrow yen at rock-bottom interest rates to invest in higher-yielding assets abroad. When sentiment flips and the carry unwinds, the market shudders violently.

USDe’s tempting 5.5% yield was the bait, attracting traders into a risky, yield-chasing trade akin to a digital carry trade. When the peg failed, investors scrambled to unwind leveraged positions en masse, morphing a localized crypto crisis into a systemic liquidity crunch.

The margin calls and forced sales unleashed a vicious cycle, echoing the historic dangers of leveraged rollovers and funding mismatches that have long plagued forex carry trades.

Contrary to some misconceptions, November has historically been a decent month for equities, not a guaranteed harbinger of doom.

Data from the past 100 years show that November often benefits from post-earnings-season momentum and anticipatory positioning ahead of year-end rallies. However, such promising seasonality was ruthlessly upended this year—thanks to unprecedented macro and micro shocks.

Still, December usually redeems the losses with a higher-than-average probability of positive returns, driven by Santa Claus rallies and portfolio rebalancing.

So, if you found yourself cursing November’s market blues, remember it’s not historically your enemy—we just had each of the narrative potholes on this market’s highway explode simultaneously.

Let’s not forget the Federal Reserve’s unamused role in this drama. The odds of a rate cut have dwindled to near zero, slamming the door in hopes for a liquidity bail-out. Fed officials have signaled ongoing tightening or at best a wait-and-see stance on policy, underscoring caution rather than relief.

This got magnified across financial plumbing, shaking liquidity flows not only in traditional banking but also in crypto markets where liquidity is notoriously thin and fragile. Banks faced their own stress tests with tightening credit conditions, while crypto platforms struggled with margin calls, lending shortfalls, and withdrawal freezes. In short, a perfect liquidity freeze frame where both Fed rigidity and crypto market leverage collided to hammer the markets.

 So, there you have it—stablecoins tipping over like dominoes, Bitcoin leveraged to the hilt, margin calls cascading like bad party confetti, all while investors awaited a Fed rate cut that wasn’t coming.

The crypto market’s balance sheets, riddled with yield-chasing complexities and undercapitalized reserves, cracked under pressure. Seasonality might favor a strong December, but November’s meltdown reminded us that markets never miss an opportunity to keep traders humble. Investors learned again that leverage is both a rocket boost and a demolition charge, especially in a market still finding its footing between innovation and regulation. If this week’s financial calamity had a tagline, it would be:

“Margin trading—because what could possibly go wrong when everyone’s selling at once?”

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Kevin Davis Founder of Investment Dojo and Author of The C.R.E.A.M. Report