Nvidia CEO Jensen Huang is on CNBC:
The hyperscalers are so constrained by chipsAll of these companies cash flows are going to start risingWe are addressing the largest opportunity in historyNobody uses AI better than META and they see a much large future potential for itEvery company is seeing the same inflection pointTokens because profitable last yearSays he has no problems with OpenAI
Brad Gerstner says xAI and OpenAI will be public in the next 12-18 months.
In the part where he said there were no problems with OpenAI, he looked a bit uncomfortable. That said, he makes a lot of great points about the spending and the returns. Time will tell and Jensen is something of a perma-bull but he’s always been right.
The IPOs of xAI and OpenAI are going to be huge events but my guess is that will be the top of something because it’s going to be very hard to justify any of the valuations and many of the insiders are going to want to unload shares. That’s going to be something like $2 trillion that retail and institutional money is going to need to sop up — no small task.
From the looks of things, Jensen’s comments are working and shares of Nvidia and the broader market are going up meaningfully. The Nasdaq is up nearly 2% and the S&P 500 up 1.7% with the Russell 2000 up more than 3%.
The animal spirits aren’t dead.
This article was written by Adam Button at investinglive.com.