Welcome to The Alpha Report 👋

You only have to get rich once. Now is your time.

Major News Today:

• NVIDIA’s HIGHLY anticipated earnings dropped.

• Palantir could be close to crashing.

• Is AI really the future?

• SMCI pumps after hours.

• Watchlist changes.

• 30 year fixed mortgage climbs to 7.08% from 6.98% yesterday.

• 10 year treasury bond yield climbs slightly to 4.41% from 4.39% yesterday.

Fear & Greed Index For Today

• 50 yesterday & 51 today. (market stays in balance which is good!)

• Be greedy when others are fearful.

• Be fearful when others are greedy.

Million Dollar Lesson:

A 50% loss requires a 100% gain to break even.

Protecting your capital is just as important as growing it.

NVIDIA Reports Earnings:

• Nvidia Q3 25 Earnings (yes it really is for Q3 2025, companies often change their reporting cycles)

• Currently trading at $143/share

• Q3 25 EPS: $0.81 (just reported today)

• Q2 25 EPS: $0.68

• Q1 25 EPS: $0.61

• Q4 24 EPS: $0.51

• Total TTM EPS: $2.61

• 143/2.61 = 55 PE trailing.

• EPS same quarter last year was $0.40 vs $0.81 now. That is 102% YoY earnings growth

• Revenue same quarter last year was $18.12b vs $35.08b now. That's 93% YoY revenue increase

• The stock is up 189% in the last year.

• I am a very strong believer that AI is the future.

• I think NVIDIA is positioned to capitalize on this.

• Is a PE ratio of 55 lofty? Not really when you are growing at triple digits YoY

• BUTTTT, how sustainable is growing 100% per year? NOT AT ALL!

• Eventually the growth will slow, when will that be?

• Probably very soon.

• But does "slowing growth" matter?

• Yea but it is expected

• Maybe this year its 100%, next year 90, then 80, then 70, ect...

• One thing is forsure, there is not much competition right now.

• This is a company that has pricing power and a solid moat.

• This is why the revenue and earnings are essentially doubling YoY, compare to PLTR, they only grew revenue at 30% YoY and PLTR is a MUCH smaller company, so it should be much easier to get the growth on a smaller company vs the big dog NVDA

• I am super bullish NVDA for the long run

• I will prob be selling puts and buying shares tomorrow.

• See my watchlist below for more details!

Notes From Jensen Huang CEO during the call:

• The new Blackwell chip is ahead of schedule and ramping great.

• He thanks SMCI for help implementing Blackwell (I bought calls on this today).

• Blackwell is just the beginning for the big transformation coming.

• Trillions of dollars in data centers will undergo “modernizations” which include implementing Blackwell.

• Synthetic data generation is coming. (simulations instead of using data to get info)

• Age of AI & robotics is now.

Is AI Really The Future?

• The short answer, YES.

• You either need to adapt as a company, or you will get left behind.

• Lets look at UPS for example vs company XYZ.

• What if UPS says there will always be human drivers on the road delivering packages but company XYZ goes with the Tesla Semi truck that can drive autonomously.

• Imagine how much cheaper XYZ can deliver packages for vs UPS.

• XYZ doesn’t have to worry about employee salaries, calling out sick, scheduling, benefits, healthcare, retirement, ect…

• The autonomous Tesla truck at company XYZ will never call out sick, doesn’t get paid a salary, and doesn’t get distracted when driving.

• It is safer and more efficient.

• What CEO isn’t going to adopt that technology… I would.

• You either adopt it, or XYZ will put you out of business cause they can do the same job safer, cheaper, & better.

• This is just one use case of AI & there is MILLIONS, & MILLIONS more to come.

Is Palantir About To Crash?

• Currently trading at $62/share

• Q3 24 EPS: $0.10

• Q2 24 EPS: $0.09

• Q1 24 EPS: $0.08

• Q4 23 EPS: $0.08

• Total TTM EPS: $0.35

• 62/0.35 =177 PE trailing.

EPS same quarter last year was $0.07 vs $0.10 now. That is 43% YoY earnings growth

Revenue same quarter last year was $558m vs $725m now. That is 30% YoY revenue growth

The stock is up 191% in the last year.

GAAP net income of $144 million, representing a 20% margin.

I am suspect about this 20% profit margin. The CEO claims there is basically unlimited demand for their products, but if that was so, why is the profit margin only 20% and why is the YoY revenue growth only 30%… Doesn’t add up to me… Compare to Nvidia's growth above…

If you have true pricing power, the YoY revenue growth would be much more than 30%.

I will not be buying PLTR at these levels

People loveeee to see stocks go up but I promise you that if they ever miss earnings or a bad report comes out at a 177pe, the stock will get clobbered.

Tip of The Day:

Fear and greed control the market, but they don’t have to control you.

When everyone else is panicking, stay calm.

When everyone else is euphoric, stay cautious.

Current Valuations:

• The S&P 500 (Ticker: VOO) is at a forward PE ratio of about 21.7 right now, we are a little lofty. (But not crazy expensive)

• The Nasdaq 100 (Ticker: QQQ) is at a forward PE of 26.21 right now, which is a tad lofty also, but faster growth is being priced in which justifies a higher PE.

• Interest rates are gravity on stocks. We are currently at 4.75% fed funds rate now. We are expected to be at 4 in a year. 1% is a decent cut and that will make a difference.

• Remember, if rates fall, yields on bonds will fall. That means stocks are the only game in town. BUT, if rates are say 5%, that competes with stocks and many people will go for the “guaranteed” 5% yield on the bond vs “risk” of stocks.

Brandons Watch List:

(Updated Daily)

👇My Price Targets For End Of Year 2025👇

• QQQ - $530 (Currently $503)

• VOO - $580 (Currently $543)

•  IWM - $240 (Currently $231)

• SOXX - $240 (Currently $213)

• TSLA - $380 (Currently $342)

• NVDA - $190 (Currently $146)

• AAPL - $240 (Currently $229)

• PLTR - $60 (Currently $62)

• AMZN - $240 (Currently $203)

• GOOG - $195 (Currently $177)

👇My Favorite New Trades I Might Enter👇

• QQQ - DCA Shares - 3 year minimum hold duration

• VOO - DCA Shares - 3 year minimum hold duration

• SOXX - DCA Shares - 3 year minimum hold duration

• TSLA - DCA Shares - 5 year minimum hold duration

• PLTR - Buy Puts - 3 Month Duration - Strike Price $60

• GOOG - Sell Puts - 1 year duration - Strike $150

• NVDA - Buy & hold for 2+ yrs & sell 1 year puts at a strike of $130

• AMZN - Buy shares on a dip and hold for 2+ yrs

• SMCI - Buy calls - 5 month duration - $28 strike.

👇How My Trades Have Performed Since 2023👇

👇My Investing/Options Strategy👇

Doing this strategy below, I have made millions in the stock market & generate $30k/mo on average with options.

Current Value of My Trading Account:

• I think we are about 5-10% over valued as a whole, so if the market takes a dip, that’s 100% normal. (reversion to the mean)

• So I consider the intrinsic value of my trading account to be somewhere around $800k, not $885,113

Final Comments:

• Nvidia reported SOLID numbers with solid guidence.

• I think AI is the future, and Nvidia is a great way to get exposure.

• Companies will be forced to invest in AI, or they will get left behind and clobbered by the adopters.

• SMCI popping after hours after Jensen Huang (NVDA CEO) thanks them for help implementing Blackwell. Jensen wouldn’t have done this if SMCI was going to be a company of the past.

• I see the market at 5-10% over valued. (a dip is ok and normal if it comes)

• Keep your emotions in check on pumps and dumps.

• Continue to DCA into quality stocks/ETFs at good prices.

• When you find undervalued companies, use options to magnify gains

👇Check Out My Links Below👇