Tuesday, March 19, 2024

"Nvidia CEO Becomes Kingmaker by Name-Dropping Stocks" (NVDA+++++++)

Yesterday I mentioned that there was quite a bit to take in before I start blurting out opinions on Mr. Huang's keynote speech. That was why, in our first post we just linked to some of Nvidia's press releases through GlobeNewswire, while noting that many of the collaborations were released through other services or direct from the companies themselves. Here are the High Performance Computing wizards at Inside HPC with some of the folks who will be opening their checkbooks:

....Nvidia said AWS, Google Cloud, Microsoft Azure and Oracle Cloud Infrastructure will be among early cloud service providers to offer Blackwell instances, as will Applied Digital, CoreWeave, Crusoe, IBM Cloud and Lambda. Sovereign AI clouds will also provide Blackwell-based cloud services and infrastructure, including Indosat Ooredoo Hutchinson, Nebius, Nexgen Cloud, Oracle EU Sovereign Cloud, Oracle US, UK, and Australian Government Clouds, Scaleway, Singtel, Northern Data Group’s Taiga Cloud, Yotta Data Services’ Shakti Cloud and YTL Power International.

GB200 will also be available on NVIDIA DGX Cloud, an AI platform co-engineered with cloud service providers for developers to build generative AI models. AWS, Google Cloud and Oracle Cloud Infrastructure plan to host new these instances later this year.

Nvidia said Cisco, Dell Technologies, Hewlett Packard Enterprise, Lenovo and Supermicro are expected to deliver servers based on Blackwell, as are Aivres, ASRock Rack, ASUS, Eviden, Foxconn, GIGABYTE, Inventec, Pegatron, QCT, Wistron, Wiwynn and ZT Systems.

Software makers, including engineering simulation companies Ansys, Cadence and Synopsys will use Blackwell-based processors for designing and simulating electrical, mechanical and manufacturing systems and parts....


Which is why I don't get too concerned about stuff like this at ZeroHedge this morning:

US Futures Slide As Nvidia Keynote Disappoints And FOMC Decision Looms

One day after we asked if Jensen Huang's keynote speech at the NVDA GTC presentation would be a "sell the news" event, the answer is yes, because this morning US stock futures have slumped, after the AI chip giant's CEO disappointed markets by not revealing anything that the market wasn't already expecting. As a result, as of 7:50am, S&P futures were trading at session lows, down 0.5%, with Nasdaq futures sliding 0.6% and bitcoin dumping after an overnight fat-finger....

The stock is changing hands at $885.21, up $0.66 (+0.07%) or, for folks who have been with us for a while, the stock is at $3540.84 on the old pre-split shares.

Our thinking re: "sell the news" after the jump.

And the headline story from Bloomberg via Yahoo Finance, March 19:

Nvidia Corp. Chief Executive Officer Jensen Huang’s highly anticipated keynote failed to move the needle for his stock. But it turned out to be good for many of the company’s customers and partners.

While Nvidia shares edged lower, falling about 3.3% Tuesday, after the executive unveiled a new processor design called Blackwell, Huang’s touts of other companies — delivered during a two-hour presentation Monday in San Jose, California — sent their stocks higher.

Engineering software makers Synopsys Inc., Cadence Design Systems Inc. and Ansys Inc. rose about 1% after Huang said the companies will use its new Blackwell-based processors to put more artificial intelligence enhancements in their products.

“Everybody who is building these chatbots and generative AI, when you’re ready to run it, you’re going to need an AI factory,” said Huang, who nodded to CEO Michael Dell in the audience. “Nobody is better at building end-to-end systems of very large scale for the enterprise than Dell.”

Software maker SAP SE also rose after Huang said they’re using Nvidia’s platform to develop services.....


The first problem that confronts a seller of the stock is the fact they may be up over 100 times on their money which means that every million-dollar sale exposes over $990,000 to the tax man. A good problem to have but definitely a problem. The second issue is: Do you buy it back after you've sold and paid the tax man? And if so, when and at what price.

Finally, as noted in the introduction to Monday's ""Nvidia AI developer conference kicks off with new chips in focus" (NVDA):

The stock is up  $23.83 (+2.71%) at $902.19 in pre-market action.

Last week we were seeing quite a few pseudo-professional "buy the rumor, sell the fact" pronouncements regarding the GPU Tech Conference but I don't know if that is a good plan, you have a March quarter earnings report coming and though it is expected to be a blow-out, it will probably surprise on the upside. NVDA is selling every chip that they and TSMC can produce and will be for at minimum another quarter and maybe three.

Back to the commentators, you know they're pseudo because they don't use the rhymey "Buy on mystery, sell on history" that any seasoned denizen of the flashing red/green world would go for, if just to break up the monotony - sheer terror pattern of markets....

Mr. Huang and the companies listed at the beginning of this post are playing an entirely different game from that of most of the commentariat.