Trade Alert: Our Robotic Future
Doubling down on a company that helps robots see. Plus, bullish options bets on a semiconductor equipment company and a biotech from our Market Watchers list that pass our technical screens.
Physical AI Gets Another Boost
Nvidia’s (NVDA 0.00%↑) earnings report and call strengthened the case we’ve been making about the AI buildout.
Revenue hit a record $81.6 billion, up 85% year-over-year. Data Center revenue hit a record $75.2 billion, up 92%. More important for today’s alert, CEO Jensen Huang described the buildout of AI factories as “the largest infrastructure expansion in human history,” and Nvidia’s new reporting framework now includes Edge Computing as a separate platform, explicitly covering physical AI applications including robotics and automotive
That also reinforces the point we made in “Partying Like It’s Not 1999”.
Cisco Systems (CSCO 0.00%↑) was roughly the Nvidia of the dot-com boom: the critical networking supplier behind the internet buildout. At its peak in March 2000, using Peter Lynch’s favorite valuation metric, the PEG ratio (Price/Earnings divided by Growth rate), Cisco was trading at a PEG ratio of >4. Prior to this week’s report, Chartmill had a next-year PEG ratio of 0.64 for Nvidia. That will probably be a bit lower once this report is taken into account.
Nvidia is producing staggering current revenue and earnings while the AI buildout is still accelerating.
Back To Ouster
Earlier this month, in our “Physical AI, Power, Semiconductors, And Biotech” alert,
We mentioned Ouster (OUST 0.00%↑) as part of that trend. We noted that we already had an open trade on it, and that its lidar and perception stack tied directly into autonomy, robotics, industrial automation, and physical AI, particularly with its latest, REV8 version.
Since then, Nvidia’s report has reinforced the same broad thesis, and Ouster’s own news has made the tie-in more concrete: the company recently announced support for its REV8 digital lidar across the Nvidia Jetson platform, describing it as a way to bring native color lidar sensing to Nvidia’s robotics ecosystem and power the next wave of Physical AI.
The stock has also passed our technical screens now, with a reasonable RSI, a constructive Chartmill Setup rating, and bullish directional pressure. So we’re adding another trade on it here.
Letting Volatility Work For Us
The other two trades today are different: one is a semiconductor equipment name, and the other is a speculative biotech platform name. Both came through our Market Watchers X List → Chartmill workflow, where we get alerts when names we’ve highlighted from our Market Watchers in the past hit our technical buy zones, and both have enough option premium for us to structure defined-risk bullish trades.
As usual, that structure matters.
We saw another example of that yesterday with T1 Energy (TE 0.00%↑), a name we highlighted in this week’s “Momentum Pullback, Thesis Intact” alert. We entered that trade last week, and after the stock jumped yesterday, we were able to take a ~200% profit on half of our calls.
Calls on T1 Energy (TE 0.00%↑). Bought the December 18th, 2026 $8 calls for $1.33 as part of a 3-leg combo on 5/13/2026; sold half for $4.00 on 5/20/2026. Profit: 201%. Signal: Market Watchers.
That’s the goal here too: find names tied to durable themes, wait for them to pass our screens, and use option structures that give us a chance to profit from volatility in the near term.
Today’s First Market Watchers Trade
Lidar / robotics / physical AI theme
The stock is Ouster (OUST 0.00%↑), and our trade is a hybrid combo consisting of these four legs:
