Published May 26th 2023

Daily Brief - ☀️ NVDA: onwards and upwards

TLDR: Keep an eye on NVDA’s stock in the next few days. The company beat on earnings and sales, and its performance after its monster rally might be a bellwether for the whole market.

Certain stocks lead the whole market. Today, NVDA is one such stock.

The company posted a nice beat yesterday, confirming its ability to take those two magical words - Artificial Intelligence - and turn them into profits

Spec positions were heavy into the call, mostly on the long side. As they unwind, the trend of NVDA will answer a key question: can Artificial Intelligence save the bull market?

In the last 2 quarters AI has transcended its original meaning, and reached a mystical quality. AI is to the bull market what OM ॐ is to cheap western spirituality: a rallying call both highly recognizable and vague in meaning.

But if we look beyond the hype, we recognize that Generative AI makes capital so much more productive. EPS and sales coming from productivity boosts are real.

And that is bullish.

What stocks are doing well today?

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General Interest: A very angry Orca

Orca: the Killer Whale is a 1977 reinterpretation of Jaws by legendary Italian producer Dino de Laurentis. That’s the same guy we need to thank for Conan the Barbarian and Lynch’s 1984 Dune.

In the movie, a fishing accident causes a female orca to miscarry. The mate of the female orca goes on a Jaws-inspired killing spree, and a blood-fest ensues.

Well, you know how reality at times follows fiction? Seems this is one of those cases.

An orca named Gladis is believed to have been involved in a painful maritime accident with a boat recently. Gladis seems to have taken the event personally, starting a vengeance cycle that sees it headbutt and sink boats.

The worst part? It’s teaching other orcas to do the same.