Five themes:
+ Change has speeded up. Everything — valuations, fads, technologies — is changing faster. (Stay with me.)
+ Change has affected every one of our classes of investment. For example, all areas of real estate — whether residential, commercial, warehousing, storage, etc.
+ Diversification was the erstwhile solution to keeping afloat, especially in investments you didn’t control.
+ But diversification doesn’t work too good, if every thing is suffering.
+ Cash is now the most important asset You need it to stay alive with your existing investments and troll for new ones, e.g. Greg Flynn just bought San Francisco’s Market Center for $177 million — a reputed 76% discount from the price it sold at in 2019. That sort of discount is common as regulators put pressure on banks to dump their losers.
Here’s today’s opportunity. Buy Nvidia. Last week it reported blow-out numbers. Then China stuff hurt the stock.
It will bounce back quickly. More about Nvidia below.
Mark Your next Saturday’s Calendar
I tried to see this wonderful play when I was last in New York. It was sold out.
Now we can all see it for free next Saturday June 7 at 7 PM. Here’s the story:
CNN will exclusively televise actor George Clooney’s record-breaking Broadway show “Good Night, and Good Luck,” on Saturday, June 7, the network announced Thursday.
The limited-run play’s penultimate performance from the Winter Garden Theatre in New York will air live on CNN and CNN International and stream on CNN.com at 7 p.m. ET.
“This announcement marks a historic Broadway first: never before has a live play ever been televised,” the network said in a news release.
The show is an adaptation of the 2005 movie Clooney directed of the same name and is based on veteran journalist Edward R. Murrow’s work and tension with Republican Sen. Joseph McCarthy during the Red Scare of the 1950s.
The play, which debuted in March, swiftly shattered weekly records, becoming the highest-grossing play in Broadway history. It has also earned five Tony Award nominations, including Clooney for best leading actor in a play.
Jensen Huang’s Four Surprises
At the end of last Wednesday’s Nvidia earnings call, Jensen spoke:
I would say compared to the beginning of the year, compared to GTC time frame, there are four positive surprises. The first positive surprise is the step function demand increase of reasoning AI.
I think it is fairly clear now that AI is going through an exponential growth, and reasoning AI really busted through. Concerns about about hallucination or its ability to to really solve problems. And I think I think a lot of people are are crossing that barrier and realizing how incredible incredibly effective agentic AI is and reasoning AI is. So number one is inference reasoning, alright, and, the the exponential growth there, demand growth. The second one, you you mentioned AI diffusion.
It it’s really terrific to see, that the AI diffusion rule was rescinded. President Trump wants America to win, and and, he also realizes that that, we’re not the only, country in the race, and, he wants he wants, United States to win and recognizes that we have to get the American stack out to the world and have the world build on top of American stacks, instead of alternatives. And so, AI diffusion, hap happened. The res the rescinding of it happened at almost precisely the time that the countries around the world are awakening the importance of AI as an infrastructure, not just as a technology of great curiosity, and great importance, but infrastructure for their industries and startups and society. Just as they had to build out infrastructure for electricity and Internet, you gotta build out infrastructure for AI.
I think that that’s an awakening, and that creates a lot of opportunity. The third is enterprise AI. Agents work, and agents are doing these agents are really quite successful. Much more than generative AI, agentic AI is game changing. You they you know, agents can understand ambiguous and rather rather implicit instructions and able to problem solve and use tools and have memory and and so on.
And and so I think this is enterprise AI is ready to take off, and and it’s taken us a few years to build a computing system that that is able to integrate, run enterprise AI stacks, run enterprise IT stacks, but add AI to it. And this is the, RTX Pro enterprise server that we announced at Computex, just last week. And just about every major IT company has joined us, and I’m super excited about that. And so computing is one stat one part of it. But remember, enterprise IT is really three pillars.
It’s compute, storage, and networking, and we’ve now put all three of them together for finally, and we’re going to market with that. And then lastly, industrial AI. Remember, one of the implications of of the the the world reordering, if you will, is, regions onshoring manufacturing and building plants everywhere. In addition to AI factories, of course, there there are new electronics manufacturing, chip manufacturing, being built around the world. And all of these new plants and these new factories are creating exactly the right time when Omniverse and AI and all the work that we’re doing with robotics is is emerging.
And so so this this fourth pillar is is quite important. Every factory will have an AI factory associated with it. And in order to create these physical AI systems, you really have to train a vast amount of data. So back to more data, more training, more Also to be created, more computers. These four these four drivers are really kicking into turbocharge.
American exceptionalism
Thoughts
The French Tennis Open is on. It’s called Roland Garros. Great tennis.
— Harry Newton
