Daily Alpha · X
· Post-Market Alpha · by Buzzberg Research
X relays carried reports that Nvidia's board is preparing to oust Huang and that Lutnick held up China chip curbs, while Serenity defended AAOI and BofA client data showed institutions buying last week's dip.
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Nvidia board
Nvidia's board is reportedly preparing to remove Huang and could meet as soon as today; no final decision has been confirmed.
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Market Radar →Nvidia's board is reportedly preparing to oust CEO Jensen Huang
Nvidia is reportedly preparing to remove Huang following revelations of two extramarital affairs, including one involving a suspected Chinese intelligence operative; the board could meet as soon as today.
$NVDA - NVIDIA BOARD REPORTEDLY PREPARING TO OUST CEO JENSEN HUANG Nvidia is reportedly preparing to remove founder and CEO
A removal of the founder and CEO would change Nvidia's leadership.
Watch Any board decision or official announcement, neither of which has been confirmed.
Source →Axios: Lutnick repeatedly held up Nvidia China chip restrictions after Trump approved them three times
Musk, Rubio, Bessent and Hegseth backed tighter controls, Lutnick warned the move will start a trade war with China, and Trump ordered it done. The restrictions still have not been put in place, per Axios.
BREAKING: Commerce Secretary Howard Lutnick repeatedly held up restrictions on Nvidia $NVDA chip exports to China, even after Trump approved
The restrictions on Nvidia chip exports to China remain unimplemented, and the Commerce Department disputes parts of the account.
Watch Whether the restrictions are put in place.
Source →Serenity says AOI signed a $1 billion to $1.5 billion hyperscaler contract and expects a $5-7 billion deal in weeks
Serenity says the three-year contract and the expected $5-7 billion deal are very large relative to AOI's current valuation, but flags that hyperscalers prefer CPO/NPO laser procurement over pluggables.
Yes, I still like and will defend $AAOI despite the "shitco" claims from the level 1 NPCs on X:
Serenity says that preference is probably part of why hyperscalers are not doing prepayments or take-or-pay deals with AOI as for Lumentum or Micron capacity.
Watch Signing of the expected $5-7 billion contract.
Source →BofA client data: institutions bought last week's dip while retail sold
Institutions put in $6.1 billion, about $4 billion through ETFs, and hedge funds were net buyers for the first time in four weeks, while retail dumped $3.4 billion of single stocks for a fourth week of selling.
"Big investors are buying the dip.
Tech got bought for the first time in four weeks, while industrials saw a 15th straight week of outflows.
Source →JPMorgan started Vertiv, Eaton and Johnson Controls at Neutral, citing a later-stage AI capex cycle
Analyst Julian Mitchell argues higher rates could accelerate the cycle's transition; JPMorgan cut targets including GE Vernova to $1,000 from $1,035 and Trane to $480 from $550 without lowering earnings estimates.
JPMorgan is becoming increasingly cautious on AI-exposed industrials, including two of my holdings, $VRT and $ETN.
JPMorgan already assumes AI-related sales growth will slow from 2028.
Watch Vertiv's orders, backlog and service business, which the poster says suggest substantial revenue visibility.
Source →