Google Stock Buybacks Per Year
AI is a capital intensive business. Source: Brandon Carl @brandonjcarl
The 1997 analogy on the S&P 500 (current in yellow vs. 1997 cycle in red)
There are plenty of tempting short signals out there, but markets driven by momentum and speculation rarely stop simply because they look expensive. For now, the 1997 analogy continues to prevail. The crowd keeps chasing upside, leverage keeps building, and downside protection remains unwanted. History suggests that can continue longer than expected. History also suggests it eventually matters... Source: TME
The BTC top coincided with the moment the AI narrative went parabolic.
One possible explanation is that speculative capital has simply found a higher-beta home in AI. SK Hynix remains one of the key AI mania names to watch. Is an AI bear market the only thing that can bring those flows back to crypto? If so, BTC bulls may find themselves in the unusual position of rooting for weakness in the very risk assets that have driven markets higher. Source: TME
Berkshire Hathaway buys another $10 billion in Alphabet $GOOG to raise its stake to $26 billion.
Warren Buffett never would have guessed that Berkshire's 4th-largest holding would be a $4.5 trillion AI company just one year after he retires. Source: Phil Rosen @philrosenn
Yesterday, $377 BILLION of Market Cap were added to AI infrastructure stocks in a single session.
NVDA +6.19% MU +6.51% DELL +10.79% SNDK +3.72% WDC +3.70% STX +4.71% Every single one of these companies directly supplies the hardware that runs AI, chips, memory, servers, and storage. Demand from data centers is outpacing supply across the board. Dell booked $24.4 billion in new AI server orders in a single quarter. Micron is sold out through 2026. SanDisk and Western Digital are one of the two biggest suppliers of NAND flash memory used in AI storage. Seagate supplies the hard drives filling new data center being built. The market is repricing every company in the AI hardware supply chain at the same time. Source: Bull Theory
JENSEN AT COMPUTEX TAIPEI:
- Marvell will become the next trillion-dollar company - Marvell and Nvidia are strengthening their partnership to expand critical networking & connectivity to power AI data centers Jensen touch...plus 17% Source: amit
U.S. distillate fuel inventories fall to the lowest level since 2003
Source: Bloomberg, Hedgeye
One of the most striking charts out there: the SOX index has risen sixfold since 2020, while SOX earnings per share have climbed fivefold.
In other words, most of the rally has been backed by real earnings growth, not just higher valuations. The key question now is whether these profits will actually come through and whether they can keep rising. (HT Goldman Sachs) Source: HolgerZ, Bloomberg
