QQQs +45bps to start the day as risk-on continues. Seeing more strength in NVDA + AMD following the Saudi deals (which seems like a lot bigger deal for AMD as 500MW or $3-5B annually (BofA’s estimates) is 10-17% of AMDs revs and only MSD for NVDA). Sentiment has done a big 180 on how Admin looks at AI: Trump has gone from hinderance to a positive as he brokers deals with countries. Things move quick…
JPM conference continues today…Webcast…Agenda:
UBER’s GO-GET conference today. CSCO + CRWV earnings post-close.
We’ll do Research/News first then hit up DT and Tencent earnings…
SMCI: Announced MOU with Datavolt for $20B
The agreement will see Supermicro deliver high-density GPU platforms and rack-scale liquid cooling systems to power DataVolt’s hyperscale AI campuses in Saudi Arabia and the United States.
“We are thrilled to partner with Supermicro and build on the strong foundations laid in these first 100 days of the Trump Administration,” said DataVolt CEO Rajit Nanda.
He cited support from President Trump and Saudi Crown Prince Mohammed bin Salman as key to enabling the business environment.
NVDA: BofA comments on the Saudi deals yesterday
BofA reports significant AI partnerships between Saudi Arabia's HUMAIN and both NVIDIA and AMD, each involving 500MW compute capacity with estimated value of $3-5B annually ($15-20B total) (TMTB: as a % of revs, a lot bigger deal for AMD) These sovereign projects represent 10-15% of the projected $50B+ annual global AI infrastructure opportunity and provide strategic diversification against China export restrictions. NVIDIA secured direct contracts worth approximately $7B including 18K Blackwell GPUs in Phase 1, while AMD appears to be pursuing a joint venture approach with Cisco utilizing CPUs, GPUs, and their ROCm software stack. BofA raises price targets for NVIDIA to $160 (from $150) and AMD to $130 (from $120), citing AI chips' growing geopolitical importance and continued strong hyperscale customer spending.
Pointed this out yesterday: chart breakout looks very similar to back in Sept…Got Computex next week, then earnings. Catalyst path a lot cleaner now as we head into the heart of Blackwell ramp…sentiment has improved dramatically - change in tone from admin a huge deal - now seen more of a tailwind/helped vs. hinderance:
CVNA: MS raises Bull case to $500 from $400 and raises #s slightly
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