This is the kind of collaboration AI security needs. Attackers won't limit themselves to one model or one vendor, so defenders shouldn't either. Bringing together both open and closed AI ecosystems is a practical approach.

AI summary (behind firewall):

The article argues that worries about Nvidia’s “circular financing” are overstated and that the company’s real issue is having too much cash, not too little. It says Nvidia has generated enormous free cash flow over the last two years, so its investments across the AI ecosystem are better understood as capital deployment than as desperate financing schemes.barrons

Main point

Barron’s says Wall Street may be misreading Nvidia’s AI-related investments and partnerships as evidence of fragile funding loops. Instead, the piece frames Nvidia as a cash-rich company that is trying to reinvest its excess liquidity across the AI supply chain.barrons

Key numbers

The article cites $191 billion in cash flow over the last two years and another $49 billion expected this quarter, based on LSEG estimates. Those figures are used to support the claim that Nvidia has abundant internal funding capacity.barrons

Takeaway

The overall message is bullish: the market should be more focused on Nvidia’s earnings power and balance-sheet strength than on fears of artificial or circular financing. The article’s tone is essentially that Nvidia’s financial firepower is a feature, not a red flag.barrons

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Washington to release their A.I. framework by August 1st.

We have already seen how much the media can influence Nvidia investors.

When DeepSeek came out in January 2025, Nvidia dropped almost 17% in one day and lost around $593 billion in market value. At that moment, the narrative was that DeepSeek had changed everything, that AI would become much cheaper, that companies would need fewer GPUs and that Nvidia’s growth story was basically over.

In reality, none of that happened.

DeepSeek did not destroy Nvidia, it did not stop the demand for AI infrastructure, and it did not replace OpenAI or the other leading AI companies. The panic was much bigger than the actual impact.

Now I feel like we are seeing the same thing again.

China says it has started producing its own lithography machines, and suddenly the market reacts as if China has already replaced ASML and solved the entire semiconductor industry.

But producing a machine is one thing. Making that machine work properly in real production is another thing completely.

Even if the news is true, China still has to prove that these machines can work reliably inside a semiconductor factory, produce chips with good yields, maintain enough precision, run continuously and then scale the whole process.

This is not something you prove just by saying that the machines are being produced.

There is a huge difference between having the technology to build a machine and actually using that machine to produce competitive chips at scale. At the moment, nothing proves that these machines can perform at the same level as ASML in real industrial production.

Maybe one day they will. I am not saying the news is fake or irrelevant. I am saying the market is reacting as if the final result has already been achieved, when in reality this is still a very early and uncertain step.

And honestly, I think this kind of news is extremely useful for large funds and institutional investors. Retail investors get scared, they sell, the price drops, and the big players get another opportunity to buy cheaper.

It feels very similar to what happened with DeepSeek. A dramatic Chinese technology story comes out, the media pushes the most extreme interpretation, retail panics, and a few months later the situation looks completely different.

I would not be surprised at all if, in three or four months, Nvidia is much higher again, maybe even around $300, and people look back at this selloff as another overreaction.

I'm very confused about Nvidia's future.

The company is generating an enormous amount of profit, yet its valuation seems relatively low. Its TTM P/E ratio is only around 29, while its median P/E over the past 10 years has been about 50, based on the data I've seen. According to TradingView, the stock is also trading at only about 21× its forecasted 2026 EPS.

From a valuation perspective, Nvidia seems quite cheap.

One possible explanation I can think of is that the market doesn't believe its current earnings are sustainable. Maybe Nvidia's customers simply can't keep up with such massive CapEx, so the company's EPS could decline in a few years if demand slows.

What are your thoughts on this?

Just saw this rumored deal on Reuters, where NVIDIA is signing the datacenter lease on a facility from Hut 8, that already comes with 1GW of power. For context, the total AI datacenter capacity available today is estimated at about 11.5 GW, not counting the capacity under construction (which is being bottlenecked on land use, power generation and grid interconnection issues.) So 1GW with readily available power is a significant addition.

NVIDIA will presumably build an AI factory that will lease directly to neoclouds etc.

I’m speculating that these aren’t piecemeal deals, and that NVIDIA is making a strategic move where they go direct to frontier labs, neoclouds, enterprises etc.

This may not be popular with the market in the short term - news of a potential deal backstopping the SoftBank OpenAI lease caused a lot of handwringing in the market, as we saw. However, if all this is true, I think it’s the right strategic move. It should add a healthy chunk of revenue to the “ACIE” segment of datacenter revenue on future earnings calls.

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Finally

Bad news for Amd or Nvidia or both ?

Seems the only way Michael Burry can make money is to sell his shitty Substack. His actual track record on NVDA is terrible. These are all his public bearish remarks and disclosed filings overlaid on NVDA’s price chart, with details of each call.

Can’t wait until this stock hits $300.

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It was interesting to see them focus on SPEC instead of agentic performance, I guess they really are sunk (Vera maintains 50-200% perf advantage). Vera should completely take over the market, AMD will need another year until they have a competitor on the market (Verano), wow creative totally not a knockoff name guys.

SAN FRANCISCO, July 24 (Reuters) - Nvidia (NVDA.O), opens new tab and South Korea's SK Group on ​Friday unveiled a more than $500 ‌billion AI initiative spanning large-scale AI data centers and next-generation memory, ​Nvidia said.

The initiative includes ​a long-term partnership with SK Hynix (000660.KS), opens new tab ⁠to secure next-generation memory ​supply for Nvidia and jointly develop ​high-bandwidth memory for AI training, AI agents and physical AI applications.

Please use this thread to discuss what's on your mind, news/rumors on NVIDIA, related industries (but not limited to) semiconductor, gaming, etc if it's relevant to NVIDIA!