Tonight, Nvidia (NVDA) will release its highly anticipated earnings report after the market closes.

This announcement is crucial, not only because Nvidia dominates AI chipmaking, but also because it will provide a glimpse into the AI revolution and whether it’s still going strong.

For The Million Mission, this report could determine whether Nvidia’s stock remains a long-term winner or if the AI hype has been pushed too far.

Despite a slowdown in stock growth in recent months, Nvidia’s position in the market remains strong.

With AI services becoming increasingly critical, Nvidia’s GPUs continue to be essential for training and deploying AI models, such as those used by OpenAI’s ChatGPT.

However, there are concerns about new developments in AI technology, particularly around DeepSeek, a Chinese startup that claims to have built AI servers at a fraction of the cost using older Nvidia chips.

All ears tonight will be listening carefully to CEO Jensen Huang and his comments regarding what DeepSeek means for the demand of Nvidia chips.

Has DeepSeek’s efficient technology decreased the demand for Nvidia GPUs?

NVDA stock – and quite frankly the entire stock market – hinges on this question.

How to Play Nvidia Earnings

The excitement surrounding Nvidia's earnings report tonight is palpable, and for good reason.

While DeepSeek’s AI breakthrough and its impact on Nvidia remains the big story, the “other” storyline tonight is the continued demand from hyperscalers.

Are the big cloud companies like Meta, Amazon, Google, and Microsoft spending enough to keep Nvidia’s business strong in the near and long-term?

We’ll hear more from Jensen tonight, but all signs indicate this demand is still incredibly strong.

In fact, these hyperscalers have all increased their 2025 capital expenditure estimates in the last few weeks.

Meta Platforms – Announced $65 billion in planned 2025 spending compared to $40 billion in 2024.

Amazon – Announced plans to boost capital expenditures to $100 billion in 2025, largely driven by AI investments. This capex figure exceeds last year’s spending of roughly $83 billion.

Google – Announced plans to spend $75 billion in capital expenditures in 2025. This capex figure came in ahead of the $59.73 billion consensus estimate.

Microsoft – Announced it was planning to invest about $80 billion in fiscal 2025 to develop data centers.

As long as these companies keep increasing their AI budgets, Nvidia will continue to benefit.

This leaves Nvidia’s response to the DeepSeek controversy as the last piece of the puzzle…

DeepSeek’s claims of cheaper, older AI chips have certainly turned some heads, but here's the thing: AI models and the compute power they require are only going to grow exponentially (not to mention the other technologies relying on Nvidia chips – autonomous vehicles, robotics, etc.)

DeepSeek’s cost-saving measures may appeal to certain markets, but they don’t diminish the need for Nvidia’s more powerful GPUs that remain the gold standard for cutting-edge AI work.

CEO Jensen Huang will likely address this during the earnings call.

From a trading perspective, if Huang reassures the market that DeepSeek's advances are unlikely to disrupt Nvidia's dominant position, we could see the stock move higher.

That’s why I’m positioning my portfolio accordingly ahead of the announcement.

Late Tuesday, I bought $150 strike call options that expire in April.

It's a modest position—just $4,000—that I’m viewing as a hedge in case NVDA surges after the earnings release. (I don’t want to miss out on that potential upside.)

Over the next few days, I’ll carefully evaluate the earnings report and how the market reacts.

If the results are as promising as I expect, there could be an opportunity for a much larger trade.