Nvidia sells CoreWeave its chips, then rents back the leftovers. It’s right there in CoreWeave’s own filing. Under a $6.3 billion deal, “NVIDIA is obligated to purchase the residual unsold capacity through April 13, 2032.” And Nvidia owns a bunch of CoreWeave stock. What is CoreWeave? CoreWeave is a company that just buys Nvidia’s crap, shoves server farms together and prays to God that somebody leases it. If they don’t lease it, Nvidia buys up all the slack. It’s an amazingly stupid business model that relies exclusively on debt. Last quarter, CoreWeave paid $640 million in net interest and still lost $626 million. How Is This Any Different From The Telecom Bubble? I’m not trying to be facetious here. For those of you that have been around since the early 2000s, how does this differ from all the telecom BS that happened 20-something years ago? Global Crossing is out of

South Korea’s stock market is crashing again. It crashed, technically recovered, and now it’s crashing again. Not enough people are focusing on this, and I don’t think it’s going to stop. If you don’t care about Korea, you should. Half of the iShares MSCI South Korea ETF (EWY) is two chipmakers, SK Hynix and Samsung. When Korea sells off, the chip stocks you own here feel it. I knew before yesterday’s close that the SMH, the fund that tracks the big chip stocks, was going to take a hit. I didn’t know how much. So I put on a butterfly, an options trade that pays the most if the stock lands near one target price by expiration. I was looking for a 1.5% drop, and the SMH blew straight through 2.5%, all the way through my strikes. I got out for more than double my money. Why Chip Stocks Are

Bank of America double-upgraded Salesforce this morning. It went all the way from Underperform to Buy, and the headline in Barron’s says the AI overhang is over.  Salesforce (CRM) sells customer relationship management software, the program companies use to keep track of their customers and sales. I want to ask one question. Where was that upgrade when the stock was down 40%? The Upgrade That Showed Up After The Stock Recovered Nobody upgraded Salesforce at the bottom. Wall Street waited for the stock to recover until it was only down 13%, and then the upgrade showed up. This is beyond Monday morning quarterback. I am so sick of the entire industry doing this. To me, at this point, that’s a great sell. Why TheoTrade Could Build Its Own Version Over A Long Weekend I’m saying this from a development point of view. Here at TheoTrade, we have to use database

https://youtu.be/pn5620t4Yuk The S&P 500 just closed the week at an all time high. Tech had almost nothing to do with it. The semiconductors took a hit all week long. The money carrying the index went into sectors nobody has wanted to touch since the summer. That’s a sharp break from the last few weeks. The Nasdaq led the S&P 500 back to record highs with a straight shot higher of about 10%. This week the Nasdaq finished basically unchanged. The semis did worse. Meanwhile the market bought everything that was oversold. Financials, consumer staples, and utilities all ripped off their lows. The SPX still came within 8 points of the upper edge of its expected move. That’s 8 points on a $7,800 product. I don’t think one week of weakness means the great Nasdaq fade is underway. Next week will decide it. Here’s what I broke down in tonight’s video:

My multimillion-dollar house in the islands had no hurricane insurance. People think that’s absolutely crazy. I had liability insurance, in case somebody fell off the roof, and it could have been me, because I’m the idiot up there fixing the Starlink every other day. What I didn’t have was hurricane coverage. The quote was $75,000 a year with a $20,000 deductible, the amount you pay yourself before the insurance kicks in. So basically I had to be $100,000 a year in. I didn’t pay $100,000 to protect myself from a stupid hurricane. The Hurricane Window Where You Don’t Want To Be The Donkey Hurricane season runs from June through November. Down on the island, there’s a three-week window in September where you’re basically playing pin the tail on the donkey, and you don’t want to be the donkey. Locals told me storms have hit as late as November. So I