NVDA NVIDIA $209.68

Nvidia continues its dip, pay attention. The number one, they have earnings this week and they're raising the price of their AI servers and what's going into those chips as well by roughly 15 to 17 percent. This also will increase the price of building a data center as far as one gigawatt of compute by roughly $5 billion. Now I warned you yesterday that this would hurt names like Nebius, CoreWeave and Iren. And all those names are on the downside today. But I will say the entire market is getting hit, so it's not just one name. Now, Nvidia has earnings on Wednesday, so this could be pretty big for the stock. It's also worth mentioning Nvidia is down and has been red for seven days now in a row, which is probably one of the biggest drops that we've seen continuation of red on the downside and maybe two to three years. I don't think Nvidia is going to crash and burn. I think this could be a pretty great buying opportunity for the stock because their margins likely will increase over time because of this or stabilize, which is good as well. And they also announce new deals that they're working with SpaceX. If you don't know, SpaceX is exclusively using NVIDIA GPUs for all their data centers and they likely will have the most compute going into the next two to three years. And they're definitely building the most. So this is a major win for Nvidia. And they're actually launching some of these new chips right now, which was announced today. So the long haul, I think Nvidia is totally fine. I think SpaceX will also be a pretty big winner in the long haul as well. I know a lot of people don't like the valuation and I even think it probably dips in the short term, but long term, what they're doing with AI, what they're doing with compute, they're going to make a lot of money. And I think they could reach a $100 billion run rate by the end of this year, which is crazy to say out loud. But if they get enough compute online, they will be making a ton, a ton of money. And I think they could reach a $100 billion run rate by the end of this year, which is crazy to say out loud. But if they get enough compute online, they will be making a ton, a ton of money.