We note the conference call Wednesday afternoon after the stock market's closing bell by Nivida. CEO Jensen Huang said in no uncertain terms that he sees NO bubble in the AI market, and then reported that in the last quarter- forgive us for using technical terms- his company blew the doors off. They cannot meet demand for their chips and racks. Forget about companies, but most countries on earth are reaching out to buy chips for data centers. Indeed the current administration is using access to Nvidia chips as a carrot to countries in their efforts to negotiate the end of regional flareups.
Make no mistake - here's where we are with AI. Remember when (some of you) used typewriters and people began talking about using a computer and some program called Word to replace the typewriter and that the program could store the document for easy editing, and had spell check? And most people said they were afraid of computers and didn't think typewriters would be replaced? That was circa 1986-1990. Not too long ago.
That is where we are with AI. Agree or not, it is here to stay and will fundamentally change life from how you are served cafecito, to how you drive, to how you work, to how you get your health care. And if you don't think AI will impact all areas of the law, including those who wear black robes, get your head out of the sand, We used to pay up to $100,000 for jury focus groups in trial prep. We just did one three weeks ago with AI for a tenth of the price, and nailed a quick NG.
How you read your depos and search for terms; how you research; how you prepare opening closing and cross- AI right now is changing the legal world,
The only thing it cannot change is a Judge who thinks all they need to do is call balls and strikes and deny motions. But that too will change.
For you Gen X,Y,Z and A judges and lawyers- here is what we are talking about.
Coming next: Our emails released 😨
10 comments:
Rumpole - it what you say is true, why the huge reversal today from up and in the green - to down and red on Wall Street.
Many brilliant financial folks believe the economy is in big trouble and that credit facilities have overextended on loaning to build too many data centers - with not enough energy to power them or chips to run them.
Hence - losses and credit defaults.
I worry about a credit crash.
The bears are growling and looking for reasons. As soon as Nvidia didn’t give them any they jumped to the employment numbers and then the lessening likelihood of a December rate cut. The rule is you can’t fight the fed but you can get rich making money off of people’s stupidity. If you like my thesis Nvida under 190 is a strong buy. We also loved Costco in the 880s. Why? We went to Costco recently and couldn’t find parking. It was jammed. That told us all we need to know. And they reported very strong numbers for their last quarter and raised for the next quarter that will include December shopping. We are a buyer. As well as Amazon for same reasons.
AI will replace court reporters, too. It's already happening.
Yikes. Are you buying more Nvidia stock today or tomorrow? It was a massacre. Maybe they don’t believe that all the money that the big companies are paying for Blackwells will pay off in profits for the hyperscalers?
The Volatility index VIX is rising Rumpole. The retail investors are dumping?
So the Vix and retail investors are somewhat intertwined while institutional investors are my main concern. And what you have is professionals who have locked in profits for 2035 after the bull run of October. They sell ,lock in their profits and their bonuses and stay on the sidelines for the rest of the year. So the money flow is depressed and there is no support for buying dips. AND I DONT CARE because I am buying quality and I have time. Listen to the Nvidia call yesterday. If you do and it drops to170 or 150 or to 100 I don’t care because this company is changing the world and it will make me rich. Or I’m my case richer. Because their next quarter will be better than this one and the one after that better than the last two. And that must payoff because numbers are numbers and they must be respected. So short term is meaningless to me. I don’t need my money from Nvidia until 2030 and do you really think it’s going down between now and then ? I don’t. And let me bang the drum for Costco. Another company with a blow out quarter and the stores are jammed. People are fighting for parking spaces because the narrative of Americans being hurt by high prices is real. Costco has the best prices and people have to eat. And wear clothes. And in my case drink wine and Costco is the largest retailers of wine on the planet. So I have been buying from the 950s down to 880 lately. And if it falls I’ll buy more. Remember Warren Buffett’s maxim. When people are greedy be fearful. And when people are fearful be greedy. Right now I’m greedy.
Rumpole. You are better at explaining these financial issues than the pundits on CNBC or even my own Goldman Sachs wealth advisors. Makes sense. I’m on it tomorrow. With cash to buy.
For those who simply cling to the past, the sense memory of the zipping sound of the return carriage on their high school semi-electric typewriter, the clicking spin of the keyball on the law office fave—the Selectric;, the slow keyboard clacking and shove of the carriage on your dad’s WWII shiny black manual Remington… get the Hanx Writer app. You’ll love it, AI or no AI, because you’ll feel like you’re actually creating something. It will transport you back from the future. https://apps.apple.com/us/app/hanx-writer/id868326899
Thank you. I enjoy doing it. Costco. Amazon. Take advantage of their current weakness as they will have a strong holiday sales season. Nvidia because by now you know why. And I’m intrigued by AMD. I love the CEO. She’s done a remarkable job turning the company around. My issue is the PE is 106 and Nvida’s is like 40. So when I bought this week I had to buy the value of price to earnings and stick with N. But sometimes you bet on horses and sometimes jockeys and with AMD they have both. I’m a buyer if the price falls or the earnings continue to rise and the value gets better. They are a very strong alternative to N. And the market is big enough for both. Stay away from the gambling /casino stocks. I’ve been shorting them for a year and making a ton. They have terrible management and financial structure. My 2026 pick is going to be Asian funds. I’ve been to Asia (quietly ) several times this year. I’m betting on China Thailand and the new powerhouse Vietnam (although Vietnam has a terrible storm flooding problem as these last two months have shown. Their infrastructure investment must now include technology that the Netherlands have with locks and flood control ). But I see Asia , including Korea and maybe even Japan getting back its mojo with their new PM, as the winner over the rest of the 21st century. We here aren’t doomed. But our politics and policies have set us back 40-50 years. Sorry but I speak with investors all over the world and I am hearing really bad things. Thanks for reading.
Cool
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