Syz the moment

Jensen Huang has apologized. Now Nvidia’s board has to establish what happened. “There is no excuse for what I did,” Huang wrote to employees, acknowledging the affair. The New York Times reported that U.S. intelligence officials had identified the woman as a Chinese intelligence asset. Nvidia’s board has launched an independent investigation into whether Huang was targeted by foreign intelligence. The board says it currently has no reason to believe U.S. national security or Nvidia’s secrets were compromised. Even so, the inquiry puts Nvidia’s safeguards and its reliance on its founder under scrutiny. Huang has been central to Nvidia’s rise. How the board handles this will matter for the company’s credibility, whatever the investigation finds. Does this change how you see Huang’s leadership or Nvidia as an investment?

Source: Peter Berezin

Each one arrives with computing, cabling, power, and liquid cooling already installed, built around Nvidia's Vera Rubin systems. That cuts setup time at a ready site from 6 months to as little as 14 days. Partners plan to deliver them worldwide in early 2027. Jensen Huang: "An AI factory creates value when it starts producing tokens, not when construction is complete." “With NVIDIA DSX POD, we’re bringing factory-built precision and speed to AI infrastructure construction — reducing deployment time from months to weeks so customers can scale capacity and bring revenue-generating production online faster.” Source. Evan on X

Behind several neocloud operators stand companies with trillion-dollar market capitalisations and exceptionally low financing costs. Consider the relationships → CoreWeave: NVIDIA holds approximately 10% of the equity and has committed to purchase unused capacity through 2032, worth up to $6.3 billion. → NScale, Lambda, Nebius and IREN: NVIDIA’s involvement includes equity investments and preferential commercial agreements. → IREN: Microsoft has signed a major contract, with 20% of its value prepaid. → NScale and Lambda: NVIDIA has provided backing for leases. → Hut 8 and TeraWulf: Google has provided lease-related guarantees. → Cipher: Amazon has provided lease guarantees. These arrangements matter. But equity ownership, customer prepayments, capacity commitments and lease guarantees offer different levels of protection. Strategic backing does not eliminate default risk. Equally, a widening credit spread alone does not establish that default is inevitable. Source: Boring_Business on X @BoringBiz_

Nvidia H100s now cost $2.85 per hour to rent, up 53% from the Feb 2025 low and the highest since 2024. Older chips were supposed to get cheaper as new ones arrived. This chart tells a different story. Source: HolgerZ, Bloomberg

The AI boom is redistributing cash flow on an extraordinary scale. According to JPMorgan, Nvidia’s projected cash flow gains exceed the entire expected decline in hyperscaler free cash flow. Think about that. The tech giants funding the AI infrastructure build-out are seeing their free cash flow squeezed. Their chip supplier is capturing extraordinary profits. Same boom. Very different economics. For Nvidia, the sale generates cash now. For hyperscalers, the spending comes first. The returns depend on future demand, monetisation and utilisation. JPMorgan still sees attractive returns on certain data-centre investments. But attractive returns and immediate cash flow are two different things. The timing gap matters. And it raises a crucial question for investors: Who captures the cash—and who carries the risk? The biggest winners from the AI boom may be the suppliers getting paid upfront, while their customers wait for the payoff. Source: TME, JP Morgan

If you invested $10,000 in $NVDA at the bottom of the 2002 market crisis, you'd have about $43 million today. Source: Bull Theory

What’s even more wild is capex was under 4% of FCF last quarter making this one of most capital efficient infrastructure businesses ever built. Source: Shay Boloor