AI trade slows on high costs
The guest maintained a cautious and negative view on NVIDIA, arguing that the artificial intelligence phenomenon is slowing down as high infrastructure costs fail to generate matching revenues.
The argument
The guest pointed out that when companies like Meta discuss heavy AI capital expenditures, investors react negatively due to the lack of clear near-term monetization.
The thesis, stress-tested
✓ What validates it
- ✓Tech companies reporting declining ROI on AI capital expenditures
- ✓NVIDIA guidance downgrades or inventory build-up
▸ Risks discussed
- ▸Surprise acceleration in enterprise AI software revenues
- ▸NVIDIA beating earnings expectations with sustained demand
Hear it yourself
"What do you think what do you think he's getting at? Or what do you make of his move? Like, what's your assessment? Do you think he should have just left? Or No. I think many people have probably gone to Powell, including many Democrats, people like Elizabeth Warren, and have asked him to stay to block Trump. You know, they don't want to see changes at the central bank, particularly at the hands of someone like Kevin Warsh who has always been feared by the Fed staff because he understands. He understands how their models work or don't work and he understands how some of the methodologies that they use to formulate monetary"
AFFILIATE LINK · ZORTIX MAY EARN A COMMISSION · NEVER A RECOMMENDATION TO TRADE