The Coming 3 Trillion AI Panic by Eric FryEric said the NVDA CEO will reveal on August 23 what company is going to be making GPU’s for NVDA. Would be nice to know who this is ahead of this date.
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After listening for a while the real sales pitch came in: $1799 for his pick.
Overall, the concept makes sense: take advantage of government subsidies and investments to GPU manufacturers as this is an indication prices will go higher for these companies. He rules out Nvidia as the valuation is too high. So his strategy is to identify smaller companies, then look to buy OPTIONS, not stocks in order to leverage the growth ride.
Could be an interesting strategy, but certainly risky as well
I listened as well. He’s relying on the NVDA forecast plus hoping the CEO will specify a new/expanded supplier for gpus. The tricky parts, assuming that the forecast is a blockbuster, is whether he names the supplier or not, along with the Chips Act 25% tax break for US production. While he named ASML at the very end as “a pick”, it doesn’t seem to be one of the top 2 picks. But ASML would be a decent play regardless since everyone needs their gear to make the best gpus.
90% Sure it’s options in Intel (INTC). He’s bullish on Intel and NVIDIA ceo has mentioned in the past that they would use Intel as a manufacturer. Zero clue what the play is but the company he described sounds like Intel: 20 Billion facility being built right now in the US.
The only thing that didn’t make sense is 14x less market cap than NVIDIA.
If nothing else, I give Fry some credit for getting to the “punch line” in less than an hour, something Teeka and some of the other presenters of “the most important news ever” “Wednesday night at 8 Eastern” events seem to have trouble doing. Much more often than not, I only stay for the free pick.
The best free pick in a while was Navellier’s August 2022 SMCI which was in the 60s at the time and until very recently had success up to 357, now down to about 243
In response to this and similar articles, I bought some medium term call options on AMD and TSM this month.
The point being the tax benefit will be for US companies only, so (he) would not expect the same uptick for TSM.
Would TSM be a possibility since they’re building a huge manufacturing facility in AZ?
I’m still unsure what the AI panic is going to be. Eric equated this to buying Bitcoin at its peak and just received an email about the Gartner Hype Cycle alluding to the same thing. How does this make any sense when Luke, Eric, and Louis just released their AI picks? A month ago, Luke released his picks. Did everyone just buy at the peak?
In a month or so, will all the AI stocks drop? Are we going to see a drop in the markets or does NVIDIA fuel another run after their earnings. Any insight is greatly appreciated for anyone who understands the panic. I’m still unfamiliar with Project Omega too – Elon purchased 10,000 GPUs and potentially has a product more powerful than Chat GPT. Okay, what does that have to do with AI stocks and the markets.
INTC is building in Ohio and TSM is building in Arizona. Pretty sure these two will benefit most and here is the link for the US Governments “AI Winners Act”. https://www.ai.gov/
Happy trading!
Mr. Fry acts like he knows. Is there anything here where private CoreWeave is much more involved while under Nvidia?
CNBC claims NVDA does not make its own AI or GPU chips.
They claim TSM in Taiwan manufactures them and that ASML makes the equipment to manufacture these chips.
“This rally can be explained by a simple fact: Nvidia does not manufacture its own chips. Instead, it relies on TSMC, the most advanced chipmaker in the world, to manufacture its GPUs. And TSMC relies on machines from ASML, which are required to manufacture the world’s most advanced semiconductors.
Nvidia’s bullish forecast for the second quarter has bolstered expectations that it will ramp up orders with the likes of TSMC, which in turn relies on ASML’s equipment.
“We have procured substantially higher supply for the second half of the year,” Colette Kress, chief financial officer at Nvidia, said on the earnings call on Wednesday.
The stock price rally across the industry highlights the concentrated nature of the semiconductor supply chain.
Nvidia is arguably the leader when it comes to designing AI chips, but it relies on TSMC — the largest and most-advanced contract chipmaker in the world. TSMC manufactures chips for a plethora of companies including Apple, for example.
Meanwhile, ASML is the only company in the world that can makes and sell its $200 million extreme ultraviolet (EUV) lithography machine. This tool is required to make cutting-edge chips, the likes of which are required by Nvidia for its top-end GPUs.
Yes, NVDA is a fabless chip designer, they are very dependent on TSM for their fabrication now, though they’re considering diversifying with Samsung to help increase production. TSM is so huge, though, that NVDA is probably responsible for only something like 2% of their revenue. AMD and Apple and many others also rely primarily on TSM.
Looks like the stock Eric might have been talking about was VMware. The company has a market cap around 70B, which is roughly 14x less than NVIDIA. CEO announced VMware multiple times today on the earnings call. Stock has shot up $14 since August 18th. Interesting call with the virtual GPUs.
TSM better build fast, China might move in any day while President Joe has used up a lot of our weapons for Israel and Ukraine. He has also drained the Strategic oil reserves to keep gas prices down and he’ll probably MT them come next October. Besides, just my opinion, I don’t think Joe wants to take on China. I hope ASML has a couple of extra machines earmarked for Arizona.
I hate those “short presentations “ so much that I read it. In the printed material he doesn’t document the “ FREE” tip. I guess you have to listen to it all. UGH