Nvidia’s Coreweave Position Explodes

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Transcript:

[00:00:04] Doug McIntyre: Comments about NVIDIA and its earnings based on its, uh, ownership position in CoreWeave. How does that work? What’s the news about that?

[00:00:12] Lee Jackson: Well, I think in front of the CoreWeave IPO, NVIDIA took the biggest position in take, took the most shares in the IPO and it was a staggering amount.

[00:00:24] Lee Jackson: And, and this, despite the fact that some people on Wall Street didn’t like the deal, it started out rocky, but boy, uh, it has exploded higher. And it was funny after it went higher, after the first run-up, it came back almost. The deal price and then it went back up again. So even if you missed it the first time, you could have round tripped it.

[00:00:45] Lee Jackson: And it’s one of the biggest holdings NVIDIA has now.

[00:00:50] Doug McIntyre: Now, uh, look, they use NVIDIA chips. Yeah. Now what’s the point of what, what’s the thinking at the corporate level? Of NVIDIA about why they wanna own it. It’s like, well, these guys use our chips. That means that it’s gonna help. You know what I’m saying?

[00:01:06] Doug McIntyre: What’s the, what’s the thought process behind it?

[00:01:08] Lee Jackson: Well, I mean, CoreWeave’s functional business is ai, and you know. AI computing, AI cloud, you know, AI Tech Center, all of that. So I’m assuming that, you know, they were just thinking that, hey, if this got, if this company’s gonna be such a big client of ours and they’re growing exponentially really fast, I mean the founders, it’s interesting, the founders of CoreWeave.

[00:01:35] Lee Jackson: I think were initially, um, they were crypto traders and crypto, uh, miners, and then, you know, then moved over into another space and, um, boy, it, it, it’s been the IPO market dug for literally almost two years has been dead. There’s been nothing. And you know, the, every once in a while Wall Street tries to sneak something out, but capital markets is a huge part of Wall Street.

[00:02:02] Lee Jackson: And now there’s, you know, there was a deal recently that was up 180% on the first trading day. and it was circle AI or something of that name. it was huge. It was priced at like 31 and oh, you know, it was up to 103 on the first day of trading.

[00:02:19] Lee Jackson: That’s right out in 1989 in Red Hat and the things that were public

[00:02:24] Doug McIntyre: then and just, does this remind you of the.com boom in any way?

[00:02:29] Lee Jackson: Well, hardly because I was working at Bear Stearns during those days and they, those were some good commission days. Let’s just leave it at that. But, um, I think it’s, it’s a little harder ’cause then anything that said.com, anything, even if it was ridiculous worked, but now you can’t just tag AI onto the end of your, uh, company name and have it work.

[00:02:53] Doug McIntyre: It looked like you could for a while, but you’re right.

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