Daily Alpha · X
· Midday Alpha · by Buzzberg Research
X carried HSBC's CoreWeave value-destruction case and reports, citing people familiar with the matter, of more than 3 million Chinese orders for Nvidia's RTX PRO 5500.
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CoreWeave credit
HSBC put CoreWeave's 2026-2030 return on invested capital at 8.9%, below its borrowing costs, as its June 2030 bonds fell 2.2 cents to 83.10 cents on the dollar.
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Market Radar →HSBC estimates CoreWeave's 2026-2030 ROIC at 8.9%, below its borrowing costs
HSBC maintained its Reduce rating on CoreWeave with a target implying 36% downside, citing more than $51 billion of debt and slowing AI revenue growth.
$CRWV - HSBC WARNS COREWEAVE IS SPENDING BILLIONS TO DESTROY VALUE HSBC maintains its Reduce rating on CoreWeave, with a
HSBC warns further investment could destroy shareholder value.
Source →Jukan relays why Chinese buyers now favor the RTX PRO 5500
Jukan quoted a passage saying major Chinese firms initially showed little interest in Nvidia's RTX 6000D, but that persistent restrictions and scarce AI computing capacity made the RTX PRO 5500 a more attractive substitute.
What made them change their minds?
The excerpt ties Chinese demand for the export-compliant card to continued restrictions and scarce compute.
Source →December 2027 Brent futures are close to $90, the highest ever
Lisa Abramowicz, quoted by Luke Gromen, said oil traders are increasingly pricing the battle over the Strait of Hormuz as the new normal, with December 2027 Brent close to $90, a sharp departure from a month ago.
Oil markets appear to be calling "bullsh*t" on both the Administration's "We control the Strait" narrative and its "Prices will
Gromen said oil markets are rejecting the administration's narratives on control of the Strait and on prices after the US midterms.
Source →Gaetano: Vicor booked about $100 million in the first two weeks of Q4
Gaetano noted Vicor product revenue rose 16% quarter over quarter to about $131 million and product gross margin rose to about 52% from about 47%; management expects at least $43 million of Q4 royalties without new license agreements.
$VICR operating profit grew 107% QoQ on 38% revenue growth. Wow.
The new AI licensee has already placed another significant licensing purchase order.
Watch Q4 hardware revenue, which is expected to grow about 10% quarter over quarter.
Source →Chinese tech firms reportedly ordered more than 3 million Nvidia RTX PRO 5500 cards worth over $35 billion
Per people familiar with the matter, Nvidia told partners they might receive only 5% to 10% of requested quantities; one source said it could produce no more than 3 million of the cards globally in 2027, against total China orders above 6 million.
$NVDA $MU $SKHY $TSM China's Hunger For Compute Power. Thr Beginning.
Nvidia reportedly told customers it cannot guarantee filling the orders because Chinese demand far exceeds planned production.
Source →