However, Nvidia's last two earnings reports show that it made almost a fifth of its revenues, about $12 billion, from a single customer last year, while its second-biggest customer accounted for 10%, or about $3.9 billion, in the nine months through October. Those customers are probably Microsoft and Meta given their massive investments in artificial intelligence and the metaverse.
"Just a friendly reminder that most of Mag 7 darling $NVDA's OCF is actually capex from other Mag 7 darlings," Jim Chanos said in a X post on Thursday, referring to operating cash flow and capital expenditure. The spending bonanza represents "immediate revenue/profit for $NVDA, but capitalized costs for their Big Tech customers," Chanos continued. "Who just extended the depreciable lives of their data center equipment (like $NVDA chips)." The famed short-seller — who helped to take down Enron, Tyco, and WorldCom — was underscoring that Nvidia is raking in cash that it can use to run and expand its business, make acquisitions, or fund returns to shareholders. Meanwhile, its Big Tech customers are spending a fortune on chips that will steadily lose value over time. 'Cannibalism' Larry McDonald, a former trader and the founder of "The Bear Traps Report," echoed Chanos' point in his own X post. "Mag 7 Cannibalism, rolls on … until the music stops, tick toc," he said. Of course, Nvidia's customers are scrambling to buy its chips because they need them to power products and services that they expect to generate huge profits in time. But it's possible the likes of Microsoft and Meta won't want as many chips in the future, or will decide they're spending too much and cut back. They could also build their own chips, or buy cheaper ones from another supplier, stalling Nvidia's gravy train.
STONEY!!!! Just got back in from a weekend extravaganza we took with all the money I made shorting this thing. I have 12 emails thanking me profusely... VZ did it again! Saving the readers from those among us that don't do their homework. OLED---> Down $15.25. ;wtf: Hey did you notice.... AJG closed at $245 on the nose? Imagine that! I'm mad at myself though, I was off by $2 on my (once again now legendary call) of $247 by 2/23. BUY SNAP STONEY!!!! I'll be proven right on that one too. One week's drop is noise for the true players.
The Lord answered our prayers and kept you safe and in good health! We all were worried when you went silent, thank goodness!
Epic call on PANW to your private readers! Up 20%! If you bail on GBA and start your own thread, it would be like George Micheal going off from Wham, Sting from the Police, Ozzy from Black Sabbath, Beyonce or Tyler Aerosmith.
Papa needs his Percocet-! GM friends~ health update* I am home it was a wild experience I have never had surgery before. It's a lot like the movies. Once you get in that room it's game on, people are all over you. I stupidly gave the name of my local struggling pharmacy instead if the big chain store and my Rx for Percocet did not go through. They have been robbed so many times or scammed the Pro Health on my block does not give out controlled substances. Mother F'ers. The Hospital is so hard to get through to on the phone I wound up leaving three messages- nothing so far. I need them to re- script me to a CVS pronto!
I'll try and do an abbreviated version of the Morning review. Keep in mind I have absolutely no knowledge of happened since last Thurs~~~ please help me out if I missed something significant. I do know we got lucky with that LUNR like I predicted something went wrong on the moon and the stk crashed-- but we were already gone for a 300% gain!!!!! How you like dem apples?
Domino's Pizza price target raised by $55 at Benchmark, » 06:52 DPZ Boy it's been a long run but this Domino's continues it's epic out performance against poor Papa John. Everything Domino's does is applauded by analysts.