Product & Sales - Hugging Face's Reachy Mini, despite limited out-of-the-box functionality, achieved impressive day-one sales [1] Industry Trends - The discussion includes open-source bots and LangChain's $1 billion pivot [1] Company Focus - The report mentions Rivian's new side hustle [1] Social Media Platform - The report references another unusual week for X (formerly Twitter) [1]

Company Performance - Nvidia's revenue has seen a historic ramp, growing from approximately $7 billion per quarter two years ago to $44 billion in just eight quarters [2][3] - The company is generating significant free cash flow and earnings [3] Market Position and Strategy - Nvidia holds a dominant market position in the new AI hardware computing paradigm, similar to leaders in previous computing shifts like PCs, internet, mobile, and cloud [4] - Jensen Wong possesses a unique combination of business acumen and technical expertise, enabling Nvidia to anticipate and position itself ahead of major technology shifts [6] - Nvidia consistently positions itself with the right technology at the right time, exemplified by the transformer engine inside the Hopper GPU released before ChatGPT [7] - Nvidia's Blackwell GPU offers 50 times the inference performance of the previous Hopper GPU, coinciding with a surge in AI computing demand [8] AI Technology and Trends - Reasoning models represent a major advancement in AI, taking minutes to research and provide higher quality answers [8][10][11] - Open AI's weekly active users increased from 300 million to 500 million in just a few months, driven by reasoning models [10] - Anthropic's annual revenue run rate has quadrupled in the last three months, indicating rapid growth in the AI sector [10]

Core Viewpoint - Nvidia is set to report its first-quarter earnings with expectations of $0.88 in earnings and $43.21 billion in revenue, but potential supply chain issues may impact results [1][2]. Financial Expectations - Wall Street anticipates earnings of 88 cents and revenue of $43.21 billion for the quarter [1]. - The guidance for the July quarter may be reduced by approximately 10% due to supply chain challenges related to the H20 chip [5]. Technical Analysis - Nvidia stock is currently trading at $135.50, above its eight-day, 20-day, and 50-day simple moving averages of $134.03, $125.44, and $115.39 respectively, indicating a bullish trend [3]. - The Moving Average Convergence Divergence (MACD) stands at 6.31, suggesting continued upward momentum, while the Relative Strength Index (RSI) is at 68.00, indicating healthy buying pressure but nearing overbought territory [4]. Supply Chain Challenges - The H20 chip, crucial for Nvidia's AI hardware, is facing production delays in China, which is a significant market for the company [6]. - Issues such as slower rack production and power supply constraints are contributing to mixed sentiment regarding Nvidia's performance [6]. Market Sentiment - Despite a nearly 25% increase in Nvidia's stock over the past month, there are concerns about whether the stock can maintain its bullish trend amid potentially weak guidance [7]. - Long-term confidence remains, with expectations of around $5 in earnings power for the year, despite short-term supply issues [6].

Core Viewpoint - Super Micro Computer (SMCI) stock has surged over 33% in two trading days due to an analyst upgrade and a $20 billion partnership with DataVolt, but the company faces critical issues with low and declining margins [1][2]. Financial Performance - As of Q3 FY'25, Super Micro's gross margin is 9.6%, down from 11.8% in Q2 FY'25 and 15.5% in Q3 FY'24, while net margins are under 3%, significantly lower than industry peers like HP Enterprise and Nvidia [2]. - Diluted EPS for Super Micro declined to $0.17 in Q3 FY'25, down from $0.51 in the previous quarter and $0.66 a year ago [2]. Revenue Growth vs. Margin Compression - Revenue increased by 19.4% year-over-year last quarter, with projections of over 45% growth this fiscal year and another 35% next year, but low margins may hinder meaningful earnings gains [3]. - If margins remain low, Super Micro risks scaling a low-margin business that could be challenging to manage without creating shareholder value [3]. Technological Advancements - Super Micro has successfully implemented liquid cooling technology at scale, overcoming reliability concerns, which may provide a competitive edge in the AI hardware market despite higher upfront costs and margin pressures [4]. Corporate Governance and Controversies - The company has faced controversies, including allegations of accounting irregularities and scrutiny from short-sellers, which may necessitate cautious investment approaches despite recent improvements in financial filings [5].