Sooooo really interesting report from NVDA.  Did it blow the doors off the room??? Looks like it on the surface.  Demand is there.  Demand is growing.  The AI DC buildout continues to grow and that is with $0 China dollars as well.  Sooooo bully for us.............In fact it looks like demand has now outpaced money.

We finally saw one of the very first signs of the Bank of Jensen.  FCF dropped like what 70% in ONE QUARTER????? That should scream concerns in any other market.  But it shows that people are so desperate for NVDA product that they are begging for anything they can get their hands on.  Even when they don't have the money to buy the product.  Now NVDA is pushing payment terms back which sounds great in theory.  Shows demand.  Buttttttttttt I just wonder.

I said yesterday that cash is kind in a stagflationary environment and I really do believe that.  NVDA is shipping product to companies that don't have the chance to pay yet.  And accepting future payment.  Which is fine when you are drowning in cash and that is a pretty basic setup for most businesses.  But we aren't talking about cars.  We aren't talking about clothes or coke or anything else that sits on the shelves.  We are talking about a brand new technology that has demonstrated a lot of "good things" but the economic value has still not yet been defined.

I just wonder how many of these companies that "owe NVDA" will be around in the future to pay them.  And will NVDA ever collect that cash owed or will they have massive writeoffs in the future?  Its a problem for another day apparently but I just wonder.  We all know that the economics of AI don't match the current value.  Sure they match the potential value but that still hasn't been realized yet.

So on the surface this is a win.  Lisa only reports shipped product and really only reports paid product as well.  I wonder if she is going to take a similar approach.  NVDA has been generating the most FCF out of any company in the world the past 2 years so who cares right??? I'm not sure everyone else can replicate this and maybe that is the power of being the king right?  But oooooof.

AMD tried to break above that dreaded 50day EMA and retreated back.  That thing is the bane of our existence.

Technical Analysis for AMD 8/27-------Pre-Market