NVIDIA posted its best quarter ever
$68.1B revenue (+73% YoY) and Q1 guidance of ~$78B—but the stock fell, erasing post-earnings gains. CFO Colette Kress flagged potential long-term AI disruption from Chinese chipmakers. China exposure remains limited, with zero H200 chip sales and tariffs on U.S.-licensed shipments. The market reaction shows that when expectations are extremely high, even record results may disappoint. Source: Global Markets Investor, Bloomberg
Wondering why memory chips stocks are on fire? Just watch the chart below courtesy of Bloomberg.
Nvidia's chips consume more RAM witch each generation. Rubin requires as much memory as several powerful PCs.
NVIDIA halts plan to invest $100 billion in OpenAI.
First Apple ditched now NVIDIA planning to pull back.. Source: Brainz - Systematic AI Execution Platform (SAIEP)
Nvidia CEO said yesterday that the “Memory Bottleneck is Severe”
SK Hynix ($330B) $MU ($355B) Samsung ($595B). Wait and see the look on everyone’s face when they find out the entire AI buildout will be bottlenecked by the tiny $AXTI ($1B) after the China’s new export controls. Source: Serenity @aleabitoreddit
Interesting comments by UBS on Nvidia's acquisition of Groq
Source: UBS
Will it ever happen? OpenAI does not appear to have sufficient liquidity, and even if it did, current market pressures may lead it to prioritize operational stability rather than aggressive growth
Source: Markets & Mayhem
Great chart by Tavi Costa showing Mega-caps hardware stocks Entreprise Value as a % of GDP - 2000 vs. today...
We think Nvidia has a different profile. Still, this is a scary one...
Got Hard Assets?
Gold > Nvidia since Q1 2024 *Bloomberg terminal data. Lawrence McDonald @Convertbond
