This is NVDA's attempt to maintain momentum in its overvalued stock (buyback language quoted below). "On August 21, 2023, our Board of Directors approved an increase to our share repurchase program of an additional $25.00 billion, without expiration. We plan to continue share repurchases this fiscal year." NVDA ought to be reinvesting in its business. … Continue reading Nvidia Feeds Its Own Hype
Advanced automation / AI offers a real customer value prop. AI has been deployed for decades. However, the hype around Generative AI is a different beast. It will take decades for Generative AI to generate the Economic Value required to justify the valuation run enjoyed by companies such as Nvidia (NVDA shares up 280% since … Continue reading Generative AI Hype vs. Reality
NVIDIA (ticker: NVDA) insider sales are at their highest level since Q1 2022. During Q2 2023, NVIDIA insiders sold $147 million of NVDA shares and purchased $0 NVDA shares. Two directors alone (Stevens and Jones), sold $99 million of NVDA shares during Q2. Insiders know NVDA shares are overvalued. Source: MarketBeat. Click HERE to expand … Continue reading NVIDIA Insider Sales Accelerated in Q2
Somebody has to walk me through why MSFT shares deserve to trade at 12x EV/LTM Revenue and 30x EV/LTM Cash from Operations. The "AI Hype" trade is not a valid answer. MSFT shares are up 41% YTD largely on AI hype. AI revenues will not manifest quickly enough to justify the outrageous multiples sported by … Continue reading Microsoft Is Overvalued. The Fed Is A Giant Dove.
The hype around all things "AI-related" is starting to feel like the 1999 Internet Bubble. The chatter that AI is going to save the U.S. from falling into recession (I believe we are already there), is delusional. I would short that thesis all day. There simply is not enough Enterprise Customer demand for AI / … Continue reading More AI Hype – The Latest Clickbait Phenomenon
The present market hype around all things AI has driven equity valuations beyond what is reasonable. Is it rational that NVDA shares are up 30% over the past 5 days? NO. Is OpenAI worth the implied $29 Billion as a result of its recent $300 million venture round? NO. Is C3 ai's (ticker: AI) 5 … Continue reading AI Hype and Equity Valuations
AWS is Amazon's (AMZN) most profitable business unit (26% operating margin in the September quarter), and is subsidizing other Amazon business units. While AWS allocates capital to other AMZN business units, competing cloud platforms Azure and Google Cloud are capital allocation recipients. While AWS touts its new, high-end Graviton chips - these chips will compete … Continue reading AWS vs. Azure vs. Google Cloud
There is a difference between truly Autonomous Vehicles - those qualified to operate without a driver - and ancillary technologies such as driver assist. Below we provide detail about where various Auto OEMs are in their Autonomous evolution as measured by Autonomous Vehicle permits held in the state of California. (For those who receive our … Continue reading Autonomous Vehicle Permits in CA
AWS, Azure and GCP - the respective cloud platforms for technology giants Amazon (AMZN), Microsoft (MSFT) and Alphabet (GOOG) - will benefit from each company's cloud gaming service. Similar to exercising one's body, cloud platforms benefit from use. Cloud gaming is a recent use case that should further strengthen the leading cloud platforms: AWS, Azure … Continue reading AWS, Azure & GCP Will Benefit from Their Respective Cloud Gaming Services
Given the significant run up in many Technology stocks (our CEORater Tech portfolio is up 57% YTD, detail end of article), the question for many institutional investors is how best to position the portfolio for 2021? There is a saying in Physics that "big bubbles get bigger". Our expectation would be for Alphabet, Amazon, Apple … Continue reading Where Do We Go From Here?