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
How many loans to negative cash flow start ups were made using Nvidia chips as collateral?
Source: Edward Dowd @DowdEdward
Here are the key takeaways from a great post by Kris Patel on X: 🔥 $GOOGL vs. $NVDA — The Market is mispricing the AI War.
Everyone’s arguing about who has the fastest chip. But that’s not the real disruption. Google isn’t trying to beat Nvidia on speed. Google is trying to beat Nvidia on economics. Here’s the overlooked truth: 1️⃣ The “Nvidia Tax” Nvidia sells to hyperscalers with 70%+ margins. AWS, Azure, and everyone else pay it, and pass it on to you. 2️⃣ Google plays a different game They’re the only hyperscaler that doesn’t need to profit from selling chips. They build TPUs at cost and control the entire stack: Chip → Interconnect → Data Center → Cloud. No margin stacking. No tax. 3️⃣ Training ≠ Inference Training = Ferrari (Nvidia dominates). Inference = Semi-truck (cheap, reliable, scaled). As AI matures, ~90% of spend shifts to inference. And here’s the bombshell: 👉 If Google drives cost-per-token toward zero with TPUs + aggressive cloud pricing… Raw speed stops mattering. Economics wins. Nvidia is selling generators. Google is building the electric grid. Cheap compute + massive distribution = 🏰 Empire. Source: Kris Patel
Nvidia responds to news of Meta using Google's TPUs, sending $NVDA stock -6% lower:
Nvidia says they are "delighted by Google's success" and they "continue to supply Google." They also say, "Nvidia is a generation ahead of the industry" and "offers greater performance, versatility, and fungibility." The AI wars are heating up. Source: The Kobeissi Letter
