Inside Markets — Strong AI Fundamentals

NVDA earning report, due tomorrow after the close, is this week’s biggest catalyst. AI fundamentals remain extremely strong, driven by accelerating hyperscaler capex spending with NVDA likely to benefit from its GB200 ramp and start of the GB300 program. From a technical perspective, risk/reward looks more challenging given that short interest is near an all-time low and momentum long positions appear stretched. The last point is contrarian bullish given Sam Altman’s recent comments, the underwhelming GTP5 launch and MIT report have resulted in AI skepticism/bearish near-term sentiment. Note, options markets imply a post-earnings move of 5.8% in either direction.