AI & Semiconductors Morning Note — 26 May 2026

First trading day after Memorial Day. NVDA reported a monster quarter into a -1% tape — that's the setup. Written 06:00 ET, 26 May 2026.

Top Call

NVDA — buy the post-earnings dip. Q1 FY2027: $81.6B revenue (+85% YoY), data-center at $75.2B (92% of sales), EPS $1.87 vs $1.76 est., $80B buyback, Q2 guided to $91B. The stock slipped ~1% post-print. The market wanted a miracle and got a record — that's sentiment, not a broken thesis.

$81.6BNVDA Q1 FY2027 revenue, +85% YoY (est. $78.8B)
$91BQ2 revenue guide
+65% YTDSOX index — 15 intraday ATHs in 2026
$710B2026 hyperscaler AI capex (AMZN+MSFT+GOOG+META)

Overnight / Long-Weekend Recap

Trade Ideas

IdeaEntryTargetStop
LONG NVDA — buy the post-earnings dip$130–138$175 (12M)< $120
LONG MU — HBM scarcity playpullback to ~$120$150$105
LONG QCOM — edge-AI re-rating$220–230$280$205

Bottom Line

The AI semiconductor supercycle is real, but the easy money is behind us. SOX at +65% YTD demands discipline — own the quality (NVDA, MU, TSMC), use the post-earnings NVDA dip, respect the 1999 parallels without being paralysed by them. The next 12 months will separate the investors from the tourists.

Sources: company earnings releases and guidance (NVDA, AMD, MU, QCOM), broker notes, market data as of 26 May 2026, 06:00 ET. Disclaimer: educational purposes only; not investment advice; levels reflect views at time of writing.