I had a GAIN today....yes....a gain. Thanks to NVDA, AAPL, AMZN, and GOOGL. But...it was a small gain. I had a beat on the SP500 by....0.25%....today.
I LOVE IT....contrary to all the BS you see in the media about circular deals. A NICE business decision....If it was me...I would do the same thing. I love the strategic nature of the thinking at NVDA when it comes to investing in younger tech companies and doing business with other names in the big chip, AI, and/or big tech world. They are weaving a HUGE tapestry....of future income streams. As an owner....shareholder....this is EXACTLY what I want to see a business that I own doing with their free cash and products. Nvidia to provide 1 gigawatt of AI chips, make 'significant investment' in OpenAI rival Thinking Machines Labs https://finance.yahoo.com/news/nvid...i-rival-thinking-machines-labs-155432367.html
This is what I am talking about.....from the above story: ".....Under the terms of the deal, Nvidia is also making a "significant investment" in Thinking Machines to "support the company's long-term growth." The firms didn't reveal the amount of the investment. Nvidia has been on a dealmaking spree as of late. On March 2, it announced agreements with Coherent (COHR) and Lumentum (LITE) to build optics technologies. In February, the company said it was entering a massive multiyear, multi-generational partnership with Meta (META). OpenAI also revealed that Nvidia would invest $30 billion in the company as part of its $110 billion fundraising round......."
The guts of the deal above.....NVDA will provide about 1 gigawatt's worth of its next-generation Vera Rubin chips to Thinking Machines.
AND....WOW....when I look at the real business news for the largest and greatest companies....BUSINESS IS BOOMING. There are so many great fundamental stories that are simply being ignored....by the media and the markets. The financial media is so focused on negativity they can not begin to see the BOOM in business that is going on in the greatest of the BIG CAP stock world. Just looking at my seven stocks...I am amazed at the deals they are doing......the money they are making right now.....the products they are producing....etc, etc. Earnings.....BOOMING....for multi-quarters and into the future. Yer....if you just look at the media....is it all DOOM....DOOM....DOOM.
What a name..."Thinking Machines". I don't know why that just sounds sketchy to me, but it just does. I don't know anything about them. They may be a star in the making for all I know....LOL. What I want to see at some point, is how many of these startup AI related companies survive. I suspect many will go up in smoke. They can't all make it in the crowded field. That will tell in the long run if this or any number of these are a good business deal. Of course, NVDA can afford to throw money at a number of these and be alright I would imagine. I can't imagine the hand wringing and wailing that will occur when some of this happens. You talk about a fire sale....now that will be a sale/discount moment.
