Nvidia Stock (NVDA)

I wanted to make one more point on the circularity, which continues to fly under the radar. The revenue quality issue. See tweet below: The circular financing goes well beyond Nvidia ($NVDA) and others funding their customers. It is also the Venture Capital firms who are financing the consumers of the compute, in the hopes …

Is Nvidia ($NVDA) now the central bank and lender of last resort? Is the Federal Reserve’s Kevin Warsh the boss, or is it now Nvidia’s Jensen Huang? Who really is the most powerful banker in the world right now? Who has more impact on rates and the economy? See the link below: https://www.tipranks.com/news/nvidia-may-be-helping-finance-oracles-ai-data-centers-td-cowen-says It does not …

Upside – $SMCI +12% (preliminary fiscal Q1 revenue outlook was raised well above expectations, with gross-margin upside) – $SPCX +8.2% (Q3 revenue and profit crushed expectations, marking its first quarterly profit since the IPO, while special committees evaluate a potential TSLA merger) – $CRDO +7.2%, $VRT +6.7%, $DELL +6.9%, $LITE +5.6%, $HPE +5.0%, $COHR +4.6% …

A few observations: * Per my previous “Tales” in which I made the point regarding the low-quality revenue in this space due to a lot of it coming from venture-backed firms that have no future like Character AI, here is some data. Tweet and subtweet. The first tweet claims 80% of Anthropic’s and Open AI’s revenue comes …

* But there are important differences which will likely produce more muted downside to the hyperscalers and more muted upside to consumer staples… “History doesn’t repeat itself, but it often rhymes.” – (Attributed to) Mark Twain The U.S. stock market is starting to look like the spring of 2000 when the dot-com boom came to a halt …