Btw,
As another lesson other than “dog” stocks like AMD, is the press. Twilio had very positive press. One article actually even had the headline that “Bulls should have much to cheer for with Twilio earnings.”
On the other hand, NVDA press has been almost exclusively negative. The negative was that the gaming market was going to hit the wall, that AMD and Intel would become greater competition, and that server sales would slow and hit a summer lull.
All of these things may still happen of course.
But the headline, “just short NVDA, and Short it Now” {paraphrased but accurate} was nearly 100% of the press.
Twilio fell 30%, NVDA…
Thus the reason why 95% of news means nothing other than to help interpret the real facts going on, and the real facts are never the facts specified by the financial press. But the financial press can give off a lot of clues, often contrary. But they are all so persuasive.
Another article on NVDA today, “NVDA Excels Until Someone Invents a New Chip” {again paraphrased}. I started reading the article, and it talks about Google’s TCU chip. The author has no idea that the TCU chip does not do training for AI systems. That there are no real alternatives at this time that do training. Not to say that something new may not pop up, but at present, to train an AI system, NVDA has built up an entire ecosystem around this. It will take quite a lot to upend the use of the GPU in this training function.
This does not even mention what happens on the edge of the network, or in autonomous driving…
Now, a more knowledgeable source, or a source that can actually mention an actual technology that is in the field, now that would be something, but not the case here. But still, anxiety creating for those who do not know better. All good for creating that Wall of Worry I guess.
Tinker
