Best Investment Right Now
NVIDIA just released its highly anticipated Q1 earnings report, delivering unbelievable stats. Its total revenue rose 85% year-over-year to a record-breaking $81.6 billion, and the Data Centre segment alone brought in a massive $75.2 billion.
On top of smashing Wall Street expectations, Jensen Huang and the board announced a mind-blowing $80 billion stock buyback program and aggressively hiked the quarterly cash dividend by 2,500% up to $0.25 per share.
NVIDIA is worth more than Germany’s GDP 0f $5.4 trillion (the third largest economy in the world). If you add all the German companies together, including global heavyweights like Volkswagen, Deutsche Telekom, SAP, and Allianz, all publicly quoted German companies and double it, you might come close to NVIDIA’s worth on some days.
The combined value of all German listed companies is about $2.6–$3 trillion, while NVIDIA’s market value is roughly $5.5–$5.75 trillion.
Does this show the scale of AI?
There is a massive demand for data centres as the AI industry continues to grow and filter down into everyday life.
Alphabet has just made a deal with Blackstone for $5 billion to build cloud storage. Computing storage will be in massive demand in the future. This huge demand creates a demand for more energy to power these data/cloud storage centres.
By understanding what’s happening, you find investing opportunities in the right areas.
The energy sector could potentially do very well.
Energy costs are soaring and will continue to increase even more. Energy could soar as much as 57% in the next 4 years as the demand for power needed by data centres increases.
Data centres need power; oil is under pressure, and oil prices are volatile and unreliable. Green energy, like solar and wind, cannot meet the demand. The winner is nuclear power. There are currently 72 nuclear power stations being built worldwide.
Nuclear stock has the potential to do well as the demand for energy surges and countries and mega-cap AI companies realise that the Oil sector has challenges.
“What have you got? A shortage of energy. That’s the number one blockage, and that’s where you can make a profit right now.” – Nigel Green, deVere CEO.
Always talk to a financial adviser before investing. Make sure you have the right investments for your attitude towards risk and stay diversified.
Elon Musk and his company SpaceX plan to go public. This is set to be the largest IPO in Wall Street history and could happen as early as next month. SpaceX makes rockets, offers satellite internet called Starlink and owns controversial AI firm xAI. The space rocket builder values itself at $1.5 trillion, making it the largest private company globally. Musk, who also owns the X social media platform, intends to dissolve xAI and pursue AI under SpaceX.
Ahead of the IPO, SpaceX also revealed a deal with competitor Anthropic, developer of Claude. Anthropic will pay $15 billion a year to access data centres for Musk’s xAI.
Although Musk’s AI ambitions have been struggling, its rocket and Starlink businesses are booming.
Is this the company to watch over the next few months?
Please note, the above is for educational purposes only and does not constitute advice. You should always contact your adviser for a personal consultation.
* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.