20.11.25 - “We are sold out” - FOMO

Nvidia reported earnings last night after the market close, easily surpassing expectations once again.

In Q3, revenues surged to 57.0 billion, up 62% year-on-year and 22% to last quarter, driven by continued demand for data-center GPUs, while margins remained almost unchanged. The company guided confidently for the next quarter, signaling that supply remains the key constraint, not demand.

Markets: Nvidia stock jumped followed by all AI related stocks

My View: during Nvidia’s quarterly earrings call, CEO Jensen Huang delivered the best sales pitch imaginable: “We are sold out.”
This is the perfect psychological trigger. It signals success, dominance, and unstoppable demand. It tells every tech company: order your chips today, before someone else does — or get ready to wait even longer.
Nobody wants to fall behind. Nobody questions whether they truly need it, how they will finance it, or how these investments eventually generate returns.

“We are sold out” - it’s the classic FOMO message: Be smart. Buy now. Don’t lag your competitors.

And it works on first sight.
These three words — “we are sold out” — are enough to restart the entire hype cycle. They revive the chip frenzy and pull investors right back into tech stocks, still showing high valuations, even after the recent smaller correction.

But the real question is now, how long this rush will last.
If the bounce is driven mainly by speculators chasing momentum, the rally could fade quickly. Maybe some institutional investors take this rebound as an opportunity to take profit before the year-end.

Given current market dynamics, this remains my base scenario.

Disclosure: short position Nvidia

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