⛔ ⛔ ⛔ A word of caution about NVIDIA's business model and its similarities with the likes of #ENRON. ⛔ ⛔ ⛔ 1. A complex web of related enterprises with access to NVIDIA's microchips, NVIDIA's investment capital and to NVIDIA's financing; ⛔ ⛔ ⛔ 2. The outlandish valuation of NVIDIA's stock, mostly a monetary phenomena, which, in plain terms, values NVIDIA's dominance, not only as the chips industry "Top Dog" for years on end, but also as if the #AI revolution will deliver on its promises: (i) most notably on building the monumental DATA CENTER infrastructure required for the exponential adoption and monetization of #AI; (ii) but also on the exponential long term improvement in #AI capabilities. ⛔ ⛔ ⛔ 3. I would add the mad amounts of leverage that is dedicated to this NVIDIA "Witches Brew" to my list of potential "Points of Failure" - together with the #vix index (THE MULTI TRILLION DOLLAR SHORT GAMMA INDUSTRY) and the #jpy carry trade (from whom a Fair Warning Notice was presented, only to be quickly "brushed off" by Mr. Market). ⛔ ⛔ ⛔
This corresponds very well with the points made by Dave Collum in a recent TFTC podcast. He trashed Nvidia’s AI strategy: https://youtu.be/IXRvWX_fXkk?t=392 (the URL already set to the relevant parts, around 6m 30s)
NVDA Stock YTD total return of 161.28% is in the top 10% of its industry.
The is two big things we need to watch, over the next 3 months, is the price of #oil (carry trade) and the #Nvidia's earnings (AI bubble). The job market has been collapsing for nearly a year and the BLS yearly revisions exposed this reality. This the #Fed needs to control the ship, without having to turn on the #QE printers. Otherwise inflation will feed the Leviathan, of social discontent.
A IA é a resposta. Qual mesmo era a pergunta? https://i.imgur.com/LuwFIIW.mp4 https://youtu.be/3FdvGFE1uaU
Investment Analyst (CIIA), Chartered Financial Data Scientist (CFDS)
2moNancy Pelosi & co (i.e. US GOV) followed Eric Schmidt's advice to make this the strategic knowledge supremacy player. They will pump it full of dollars, because that will be inflated away. They know how to keep ahead of the others. Betting against the US is betting against history: Watch this: https://www.linkedin.com/feed/update/urn:li:activity:7232278248720666625/