The Most Powerful Banker in the World? The Central Bank of Nvidia

Is Nvidia ($NVDA) now the central bank and lender of last resort? Is the Federal Reserve’s Kevin Warsh the boss, or is it now Nvidia’s Jensen Huang?

Who really is the most powerful banker in the world right now? 

Who has more impact on rates and the economy?

See the link below:

https://www.tipranks.com/news/nvidia-may-be-helping-finance-oracles-ai-data-centers-td-cowen-says

It does not stop. Now Nvidia needs to finance and backstop Oracle ($ORCL) along with everything else? 

The Nvidia balance sheet soon may be bigger than the Fed’s at the rate the company is financing the economy to dig holes and fill them back up, so Nvidia can recognize revenue. The balance sheet and cash flow statement tell a very different story than earnings do. Amazing GAAP allows for this. 

Then I still wonder: Does this industry have any chance of working? It still seems at the frontier lab-level, which underpins everything, the more numbers that come out, the less it makes sense. It seems this business does not and cannot scale. With every dollar of additional revenue, even at this size, comes more than an additional dollar of expense. As noted in “More Tales” this morning, Anthropic ex the accounting charge still lost $8.7 billion on $16 billion of revenue in the first six months of 2026. 

Sixteen billion dollars is a lot of revenue and Anthropic still lost 50 cents on every dollar. This is why the company resorts to trying to report earnings before expenses. They have $518 billion of commitments over the next decade. 

Do they have a bat phone connected to the Central Bank of Nvidia?

Positions: None.

Avatar photo

Posted by Doug Kass

Doug Kass is a world-renowned hedge fund manager with decades of experience and success navigating through some of the most turbulent periods in market history. He is known for his time-tested analytical skills and ability to look past the current noise and herd mentality. On TheStreet Pro, Kass provides frequent market commentary and investing ideas for active investors throughout each trading day in Doug’s Daily Diary. He also serves as president of Seabreeze Partners Management Inc. Previously, he served as a senior manager at Omega Advisors, a $6 billion investment partnership. He co-authored a book with Ralph Nader and the Center for the Study of Responsive Law called “Citibank: The Ralph Nader Report” and can be found as a guest host on CNBC's "Squawk Box." A Note from Doug: Current strategies and actionable trade ideas -- all on one dynamic platform built exclusively for active trades. From sudden sell-offs to sudden spikes, TheStreet Pro arms you with crucial analysis -- at a rapid fire, professional pace -- to help you make sound trading decisions -- every day, every hour, and every minute. Join me and my team of professional traders for unique perspectives and breakthrough investment opportunities.

Leave a Reply

Your email address will not be published. Required fields are marked *