NVIDIA, a giant in graphics card production, is under scrutiny from several users on X (formerly Twitter). Here's a beginner-friendly summary of the recent allegations:
1. Performance Rise: NVIDIA has seen a massive +262% growth this year. Many believe it's due to the rising demand for AI.
2. Real Demand Question: Samantha LaDuc raised questions about NVIDIA's data center revenue growth, suggesting the company might be inflating its GPU demand.
3. Connection with CoreWeave: NVIDIA gave CoreWeave, a client, a $2.3 billion line of credit. This amount matches NVIDIA's earnings in Q2. CoreWeave also used NVIDIA GPUs as collateral for a loan, which is unusual given that tech products can quickly lose value.
4. Possible Money Movement Pattern:
- Funds lent to CoreWeave.
- CoreWeave buys GPUs from NVIDIA, possibly inflating demand.
- NVIDIA's stock price rises.
- Cycle repeats.
5. CoreWeave's Rapid Growth: The company has seen significant investment, but there's uncertainty about its genuine valuation and demand.
6. Who is CoreWeave?:
- Founded by hedge fund professionals.
- Got substantial investments soon after being established.
- Raised huge amounts, including a $2.3 billion debt using NVIDIA's GPUs.
7. Client Reviews: Reviews for CoreWeave are scarce and possibly not genuine. Despite this, they're expected to reach $1.5 billion in revenue by 2024, without any major partnerships or clients announced.
8. NVIDIA's Market Impact: NVIDIA's growth has significantly influenced the tech sector, representing 30% of the S&P 500 technology market cap gain.
9. Global Demand & The Bigger Picture: Despite NVIDIA's bright picture, global demand might be weaker. There's a potential risk if global consumption doesn't pick up.
In Summary: Questions arise about NVIDIA's real demand, its relationship with CoreWeave, and the actual market dynamics. The concerns are not just about legality but about the ethicality and authenticity of these corporate actions.
Comments
The 100 day is $397 and the 200 day is $302. Any pullback short term will be short lived as we get closer to the next earnings report the week before Thanksgiving. If they have another stellar quarter and a beat, we should see $500 as a support level by years end.
I don't believe they have to say when they are buying back shares, but they will have to log the purchases daily and then report the numbers either each quarter or semi annually to the SEC.
goodnight. just remember stocks are voting machines in short term, weighing machine in long term. short term volatility doesn't matter to long term holders...it's just used as content for bashers with nothing better to do.
It's a no brainer buy if just look at the facts and ignore all the noise. I went all in and won't be chasing this at 500's and 600's. This is the opening curtain for Nvidia.
CEO would not sell NVDA $450 when it was just $520 if he thought it was going up
This is one scary short.... NVDA can explode by $50 in minutes on ANY news