Record-Breaking: Nvidia Shocks World & Soars 🚀🤖

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GM and BRRR.

Yesterday we wrote that we considered trimming our Nvidia position ahead of earnings and we’re glad we didn’t. Its after-hours earnings report smashed expectations by so much that the stock added $250B to its market cap - a 30% overnight surge.

In other news, Florida Governor Ron DeSantis announced he is running for President on Twitter Spaces last night. With Elon Musk and David Sacks hosting, DeSantis decried the expert-consensus on everything from COVID lockdowns to Woke Culture & ESG expansion to Central Bank Digital Currencies and regulatory hostility towards bitcoin and web3.

Additional support for crypto and Web3 came from renowned VC Fred Wilson yesterday. Wilson was asked if the US’ regulatory crackdown is forcing the firm to reevaluate its significant Web3 investment strategy to which Wilson responded:

Here’s what we brrr’d today:

• Nvidia Smashes Expectations, Soars 30%

• DeSantis: Pro-Bitcoin, It’s A Civil Liberties Issue

Nvidia Smashes Expectations, Soars 30%

• Exceptional Revenue Forecast for Nvidia: The chipmaker's expected revenue significantly outperformed Wall Street analysts' predictions, propelling it close to a $1 trillion market cap and leading to a global surge in artificial intelligence-related stocks. Nvidia anticipates approximately $11 billion in sales for the quarter ending in July, well above the estimated $7.2 billion.

• Impact on Other Tech Stocks: This forecast has influenced the stocks of other chipmakers and suppliers, like Advanced Micro Devices Inc., Taiwan Semiconductor Manufacturing Co., and SK Hynix Inc. Combined with European chipmakers, these companies added more than $260 billion in market value amidst global economic concerns.

• The AI Wave and Increased Investments: The success of AI chatbots, such as OpenAI’s ChatGPT, is encouraging investors to significantly increase spending on the technology, underpinning AI. Analysts predict that this could be the start of a significant shift in the AI industry, with Nvidia at the forefront.

• Rise in AI Component Stocks: Semiconductor manufacturers and equipment suppliers, including TSMC, Advantest, and Hynix, which are key to Nvidia’s production, have experienced stock growth, reflecting investors' belief that AI research will benefit these companies.

• Nvidia’s Position and Future of AI: Nvidia, under CEO Jensen Huang, has strategically positioned itself as the top provider of components for training AI software. The strong demand for Nvidia’s A100 and H100 AI chips indicates that the use of AI technology is in its early stages, and the company is leading the charge towards more specialized industry-specific products.

  Yahoo Finance (Bloomberg)

DeSantis: Pro-Bitcoin, It’s a Civil Liberties Issue

• DeSantis Advocates for Bitcoin: Florida Governor Ron DeSantis, a contender for leadership of the Republican Party, declared himself an advocate for cryptocurrencies. In a Twitter discussion with Elon Musk and venture capitalist David Sacks, he expressed concern that the current regime might harm Bitcoin if allowed to continue for another four years.

• Crypto as Civil Liberties Issue: DeSantis views cryptocurrencies as a civil liberties matter. As the Governor of Florida, he signed legislation prohibiting the use of central bank digital currencies (CBDCs) within the state, although there's debate about the actual impact of this law.

• DeSantis against CBDCs: During the interview, DeSantis stressed the need for Congressional authorization for a CBDC and committed to avoiding it during his potential presidency, citing concerns about potential misuse to influence politically unfavorable purchases.

• CBDCs as Political Issue: CBDCs are increasingly seen as a new controversial topic in U.S. politics. According to Samuel Armes, president of the Florida Blockchain Business Association, DeSantis’ office has received more calls about CBDCs than any other typical issues.

• Other Republicans on Bitcoin: DeSantis isn't the first Republican candidate to discuss Bitcoin. Vivek Ramaswamy, a former pharma entrepreneur and longshot contender, also opposed CBDCs and said that the next election should be a "referendum of fiat currency" during his speech at Bitcoin 2023 in Miami.

  CoinTelegraph

AI ART OF THE DAY

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Nvidia single-handedly saved the market this week. What debt ceiling?

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The BRRR is meant for informational purposes only. It is not meant to serve as investment advice. Please consult with your investment, tax, or legal advisor before making any investment decisions.