Forget about valuations, the market is addicted to easy money, says Niles Investment's Dan Niles

Market Performance & Concerns - Despite beating top and bottom lines, video shares experienced a slight decrease, primarily due to data center revenues falling short of expectations, intensifying concerns about competition from China [1] - Data center revenues missed estimates for the first time since the emergence of Chat GPT in late 2022 [2] - The market is currently heavily influenced by the expectation of Federal Reserve rate cuts, overshadowing valuation concerns [3][4][5] - The analyst suggests a parallel to the late 1999 market conditions, cautioning about potential future differentiation and market correction [16] AI Investment & Returns - A study indicates that 95% of corporations investing in AI are not seeing any returns [9][10][11] - Major hyperscalers have doubled their capital expenditure to $600 billion over the last 2 years [15] - There's a thesis that AI is going to "eat" software, suggesting potential winners and losers in the software sector [14] Company Strategy & Execution - The analyst initially held a bullish stance on Nvidia, anticipating a strong quarter [2] - The analyst acknowledges Nvidia's massive write-down in April, which initially prompted a bullish outlook [7] - The analyst expresses hope that the data center revenue miss is an isolated incident in Nvidia's otherwise strong performance since late 2022 [6]