Nvidia was around $179 Monday afternoon. That’s roughly 19 times the consensus adjusted earnings estimate for FY2027, which ends in January. That valuation has my attention.

Last quarter, revenue reached $96.2B, up 106% from a year earlier. Data Center brought in $89B. The business is still growing ridiculously fast.

Memory costs are taking a bigger bite though. Management expects gross margins to fall from 75% in Q2 to 71–72% in Q4, then recover to 72–73% in FY2028 as price increases kick in. They laid that out in August, so the lower margins should already be part of the earnings forecasts.

Sunday’s board announcement adds uncertainty. An independent investigation will examine reports that the CEO was targeted by foreign intelligence. The board says it has no reason to think company secrets or national security were compromised and still backs his leadership.

Earnings are November 17 after the close. I’m interested in whether they stick with that margin outlook.…