NVIDIA: We Have 5 Years

During a talk at The New York Times’ DealBook summit, Nvidia's CEO, Jensen Huang, highlighted the rapid advancement of artificial intelligence (AI) in relation to human capabilities.

He suggested that in the coming five years, we might witness AI systems capable of performing tasks at a level comparable to human intelligence, particularly if artificial general intelligence (AGI) is measured by a computer's ability to complete tasks in a way that is competitive with humans.

Nvidia is currently experiencing significant growth in its business, driven by an increased need for powerful graphics processing units (GPUs). These GPUs are essential for training AI models and managing substantial tasks in various sectors, including automotive, architecture, electronics, engineering, and scientific research. This demand also extends to the requirements of OpenAI's ChatGPT.

The company's financial performance reflects this trend, with Nvidia's revenue in the fiscal third quarter showing a threefold increase. Net income rose dramatically to $9.2 billion, up from $680 million in the previous year.

Huang forecasted that the AI sector's competitive landscape will give rise to readily available AI solutions.

These tools, he anticipates, will be adaptable across various fields. Businesses in distinct sectors, ranging from semiconductor manufacturing and software development to pharmaceutical research and radiology, will customize these AI resources to suit their specific requirements.

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BONDS: Historical Month

Throughout a challenging year for the US bond market, November stood out as a month of historical importance. There was a notable increase in the values of Treasuries, mortgage debts, and agency, marking the most remarkable monthly achievement since the 1980s. This rally brought much relief to bond investors who were bracing for what could have been a third year in a row of losses - a situation unprecedented in the history of the Treasuries market.

This growth sparked a robust rally across various sectors, including stocks, credit, and emerging markets. Additionally, even the lesser-known, high-risk cryptocurrencies, which usually struggle in high-yield periods, saw substantial gains.

The continuation of this rally into December and beyond into 2024 hinges on whether the primary factors driving it persist. These factors include indications of a slowing economy and inflation and the expectation that the Federal Reserve may cease increasing interest rates.

MUSK: “Go f*** yourself”

At the 2023 DealBook Summit in New York, Elon Musk, who is the owner of the social media platform X (previously known as Twitter), expressed his disregard for advertisers withdrawing from the site due to his posts of antisemitic content.

Musk was direct in his response to the situation, stating, “If somebody’s going to try to blackmail me with advertising? Blackmail me with money? Go f***. Is that clear?” During his speech, he specifically acknowledged Disney CEO Bob Iger, who was present in the audience, with a pointed “Hi Bob!”

Furthermore, Musk suggested that his supporters might also boycott these advertisers in retaliation. He warned, “The whole world will know that those advertisers killed the company, and we will document it in great detail.”

For the first time since his comments ignited worldwide criticism, Musk apologized for his tweets. The post was the “worst and dumbest I’ve ever done,” said Musk.

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From Rejecting $6B to the Brink 💥

This company was insulted by a $6 billion offer and is now almost bankrupt. 

Groupon burst onto the scene in 2008, seizing the daily deals market with an innovative model: Offering limited-time deals with significant discounts on everything from meals to spa treatments. The idea was simple but impactful, demanding a minimum number of buyers for each deal to activate. By 2010, Groupon was a tech sensation, famously turning down a $6 billion offer from Google.

The company soon faced challenges. The initial excitement around daily deals began to fade as customers and businesses experienced ‘deal fatigue.’ Groupon also found itself in a fiercely competitive market, and some of its deals failed to offer real value, leading to customer dissatisfaction. In fact, Groupon was selling some products for cheaper than the wholesale cost of them, which had a massive impact on Groupon’s retailers. 

However, the critical issues lie within the company itself. Groupon’s rapid expansion led to a scattered business focus. They ventured into too many markets too quickly, diluting their brand and straining their resources.

Groupon stock is almost down 100% since the IPO, and the company is trying to fight off bankruptcy. 

Chart of the Day

📊 At the last November meeting, the FED noted that December could bring the final hike in the tightening cycle.

The author, publisher or insiders of the publisher may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.