More Tales From Nvidia: Is NVDA a Business or Stock? (Issue 201!)
It’s very interesting.
I suppose Nvidia ($NVDA) is not too different than Strategy’s Michael Saylor.
Does Nvidia run a business, or a stock? Is Jensen Huang a CEO or an equity market strategist and stock promoter?
Jensen Huang is obviously brilliant. He knows nearly the whole sector is a circular financing that has become too big for him to keep financing himself. It is now moving from being dependent on privately funded circular financing deals and the nuttiness of the credit markets, to needing the amounts of capital that only the equity markets can provide. Google ($GOOGL) and Meta ($META) have just implicitly told you that too, via their equity sales and theoretical planned equity sales. Open AI has told us it is even graver and more desperate than I suggest, because the company apparently is already back to begging the government again for money.
At any rate if all of one significant down day in the equity markets is enough to spook the Nvidia CEO into full Saylor waving pom-poms mode, it shows you they all know how desperate the situation is and how dependent the scheme is for fresh capital inflows at greater scale from the public markets to keep the game going.
The Nasdaq advances by +300% (and multiples are in unheard of territory) and then down 4% — and it is a “selloff” and a buying opportunity?
Positions: None.
