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Issue No. 10  •  Wednesday, June 3, 2026

THE TRADING ADDICT

NEWSLETTER

by Maria Helmick

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» Story No. 1 of 3 · Market Insight

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Nvidia’s Ecosystem May Be the Real AI Trade

Why NVDA may be more than just a chip stock.

Nvidia is no longer just a semiconductor story.

Yes, the chips still matter. The GPUs are still the engine. But the bigger story is the ecosystem around them. Nvidia now sits across the full AI stack: compute, software, networking, data-center systems, cloud infrastructure, robotics, autonomous systems, and edge computing.

That is why NVDA remains one of the most important stocks in the market.

In its latest reported quarter, Nvidia posted record revenue of $81.6 billion, with Data Center revenue reaching $75.2 billion. That tells you where the strength is coming from: AI infrastructure demand is still driving the story.

But the real edge is not just the chip.

A normal semiconductor company sells parts. Nvidia is building a platform. Its GPUs, CUDA software, networking products, and full-system infrastructure all work together. Once companies build around that stack, switching away is not easy. That creates staying power.

Nvidia Is Investing Across the AI Buildout

Nvidia is not only selling into the AI boom. It is also investing across the infrastructure behind it.

Nvidia’s latest publicly disclosed 13F portfolio reported 7 holdings with a total reported value of about $18.37 billion. That list helps show where Nvidia sees strategic importance:

• Intel — major exposure to chip manufacturing and semiconductor infrastructure.
• CoreWeave and Nebius Group — AI cloud capacity and GPU compute demand.
• Synopsys — chip design software.
• Coherent and Nokia — networking, optical, and telecom infrastructure for AI data.
• Generate Biomedicines — AI-enabled biotech.

Why This Matters for Investors

If NVDA is a top portfolio holding, the bet is bigger than one earnings report. The real bet is that AI infrastructure spending continues. That includes hyperscale data centers, enterprise AI adoption, networking demand, AI cloud capacity, robotics, physical AI, edge computing, and autonomous systems.

That is the bull case. Nvidia remains at the center of the spending cycle, and its ecosystem gives the company multiple paths for growth.

But expectations are also very high. NVDA is no longer early. Everybody knows the story. When everybody knows the story, the stock has less room for disappointment.

If growth slows, margins tighten, export restrictions worsen, supply becomes an issue, or competition improves, the stock can move fast. There is also concentration risk. If NVDA is a top portfolio holding, that portfolio is heavily tied to the AI trade.

Maria’s Take

NVDA is still one of the clearest ways to own the AI infrastructure theme. But this is not just a chip stock anymore.

It is an ecosystem stock.

Nvidia sits in the middle of the AI buildout: compute, software, networking, cloud infrastructure, data centers, and next-generation technology. That is the opportunity.

The risk is just as clear: the bigger the story, the bigger the expectations. Strong company. Strong ecosystem. Huge expectations. Respect the upside, but do not ignore the risk.

» Story No. 2 of 3 · Cybersecurity & AI

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Cybersecurity May Be the AI Trade Nobody Should Ignore

Palo Alto’s strong quarter puts CrowdStrike in the spotlight.

For months, Wall Street has been wrestling with one big software question:

That fear has been hanging over the sector. If AI helps companies do more with fewer employees, some investors worry that traditional seat-based software pricing could come under pressure.

But cybersecurity may be one of the major exceptions.

Palo Alto Sent a Strong Message

Palo Alto Networks just reminded the market that security spending is not slowing down. The company reported fiscal Q3 revenue of $3.00 billion, up 31% year over year, beating expectations of about $2.94 billion.

Adjusted earnings came in at $0.85 per share, ahead of the roughly $0.80 analysts expected.

The most important part was not just the beat. It was the guidance.

Palo Alto raised its full-year revenue outlook to roughly $11.42 billion to $11.43 billion. Earlier this year, software stocks were getting punished for soft guidance. This time, Palo Alto beat expectations and raised the bar.

Why This Matters for CrowdStrike

Now the spotlight shifts to CrowdStrike. CrowdStrike reports next, and traders will be watching to see whether Palo Alto’s strength carries over into CRWD. Both companies sit directly in the cybersecurity and AI-security conversation.

If AI is creating faster attacks, more automated threats, and a larger security problem for companies, then cybersecurity spending may not be discretionary. It may become even more necessary.

Why Cybersecurity Is Different From Regular SaaS

AI may pressure some software categories if it reduces the need for certain workers, tools, or seat-based licenses. But cybersecurity is different because AI can increase the threat level.

Faster attackers require better defense. More automated hacking attempts require stronger monitoring. More complex cloud systems require stronger protection.

That is why the cybersecurity trade deserves its own lane. This may not be a sector getting hurt by AI. It may be a sector being forced to grow because of AI.

Maria’s Take

Palo Alto did more than beat earnings. It helped prove that cybersecurity is still a priority budget item. Companies may cut spending in weaker areas, but they cannot afford to ignore security when AI is making threats faster and more sophisticated.

The CRWD setup is exciting, but also dangerous. The stock has already had a major move, and expectations are high. That does not mean traders have to ignore it, but it does mean they should be smart about timing.

One idea may be to wait until after earnings instead of trying to guess the report. Once the numbers are out, traders can see the reaction, watch where the stock holds, and still look for elevated implied volatility if premium remains attractive. Sometimes the cleaner trade comes after the first move, not before it.

For a smaller account or a cautious trader, that may mean a small defined-risk trade, a tighter premium setup, or simply waiting for the post-earnings dust to settle before entering. The goal is not to be first. The goal is to get paid enough for the risk.

Cybersecurity may be one of the cleaner AI beneficiaries, but after a big run, entry still matters. No chasing. Let the numbers confirm the story.

» Story No. 3 of 3 · The Power Infrastructure Play

POWL — AI Infrastructure Play

The AI trade is moving from chips to power. xAI’s data centers need gigawatts, the grid can’t deliver fast enough, and companies are turning to on-site generation and advanced electrical infrastructure.

Powell Industries (POWL) builds the switchgear, power distribution systems, and control solutions that make that buildout possible. In fiscal Q2 2026, POWL announced a data center order exceeding $400 million — the largest in company history. That is the kind of order book that turns into earnings.

POWL is positioned in a critical part of the AI supply chain. The full breakdown — xAI’s power needs, why on-site generation matters, the bull and bear cases — is below.

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Educational only. Not financial advice.