Smart money starts asking harder questions. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
Don here...
Brandon just called NVIDIA's $60 billion buyback announcement "the death nail."
While retail traders are celebrating yesterday's earnings "beat," we spotted the warning signal that could mark the beginning of the end for the AI darling.
NVIDIA just announced a $60 billion stock buyback—40% of their entire annual revenue.
In 2013, Apple did the same thing when innovation stalled. They hoped they could prop up their share price.
Here's the problem: They don't have the cash to do it.
NVIDIA's financing their own customers' chip purchases through companies like Coreweave. That can’t continue forever.
In today's Live Trading Room session, Brandon pulled back the curtain on what this really means:
- The concentration risk nobody talks about: 40% of NVIDIA's revenue comes from just TWO companies (likely Meta and Microsoft/Tesla)
- The Core Weave connection: NVIDIA has 91% of their investments in one company that's burning $7.9 billion in free cash flow while borrowing money to buy NVIDIA chips
- Why the dispersion trade broke on June 20th, 2024—and why the current rally lacks the institutional mechanics that drove the stock from $40 to $140
- The options market tells the real story: Institutions are now selling calls and buying puts on NVIDIA as a hedge, not betting on explosive upside
- Energy sector opportunity: Massive bearish block trades hitting XLE, OXY, and XOP at resistance—the real trade while everyone's distracted by NVIDIA
When a company starts returning 40% of revenue to shareholders instead of investing in growth, the writing's on the wall.
The question isn't whether NVIDIA can squeeze higher—it's whether you'll be positioned for what comes after the squeeze.
→ Watch the complete breakdown here
To your success,
Don Kaufman
Chief Market Strategist, TheoTRADE
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