All Eyes on Nvidia 👀

March 1, 2025 | Read Online | Subscribe

As promised, we're back in your inbox with a total redesign.

From now on, we'll be focusing on (tech-heavy) financial market news and filtering through all the noise to find valuable investment opportunities.

Let us know what you think of the new format!

DISCLAIMER: The content in this newsletter is not financial advice; it is for education and information purposes only. Stocks can be risky and speculative. Please do your research before investing.

Week of February 24, 2025

▼ S&P 500	5,954.50	-1.20%
▼ Nasdaq	18,847.28	-3.80%
▲ DOW	43,840.91	+0.80%
▲ FTSE 100	8,809.74	+1.74%
▼ Bitcoin	$84,429.94	-12.33%
▼ Ethereum	$2,226.98	-21.04%

*Stock data as of market close on February 28, 2025. Cryptocurrency data as of 4:00pm ET.

Markets

The S&P 500 and Nasdaq regained some ground on Friday, but ultimately ended the week in the red.
Bitcoin and Ethereum dropped significantly over the last week, likely due to the $1.5B ByBit hack (largest crypto heist in history).
Fear and Greed Index is showing Extreme Fear in the markets. Reasons: negative market momentum, weak stock price strength, decreasing trading volume, and rising put to call ratio.

Earnings

Feb 25: Workday (WDAY) Q4 EPS came in at 8% above expectations, and revenue earnings exceeded expectations by $30M.

Feb 26: Salesforce (CRM) Q4 EPS came in at 6.5% above expectations, but revenue earnings dipped below expectations by $40M.

Feb 26: Nvidia (NVDA) Q4 EPS came in at 6% above expectations, and revenue earnings exceeded expectations by $1.28B.

View full earnings calendar here.

🟢 Recent 52 Week Highs

Visa: $362.06
AT&T: $27.49
Raytheon Technologies: $133.09

🔴 Recent 52 Week Lows

AMD: $98.69
Applied Materials: $153.95
Synopsys: $448.11

Economic Reports

Consumer Confidence dropped by 7% due to persistent inflation and new economic tariffs.

Initial jobless claims jumped by 22,000 to 242,000, likely a reflection of federal worker layoffs.

Increase in inflation YoY dropped to 2.5% from 2.6%.

🤖 Artificial Intelligence

IBM revealed an open-source reasoning model called Granite 3.2 that can quickly toggle between standard thinking and chain of thought.

💾 Data Storage

Lonestar Data Holdings is testing out the feasibility of space-based data storage by sending a mini data center to the Moon via Falcon 9 rocket.

⚡️ Nuclear Energy

France has topped the leader board in fusion research by maintaining a hydrogen plasma reaction for 22 minutes and 17 seconds (beating China's previous record).

🧠 Neurotechnology

Researchers in China have built the world's first two-way brain-computer interface that allows the brain and machine to learn from each other.

⚛️ Quantum Technology

Amazon revealed its first quantum chip, Ocelot, with a processor designed for error correction over brute compute power (aim is to reduce computing costs by 90%).

Tech Layoffs

Skybox Security, an Israeli cybersecurity firm, shut down and laid off its entire team.
Phoenix-based Onsemi Intelligent Technology, a semiconductor company, laid off 2,400 workers (9% of its total workforce).
Hewlett-Packard laid off 2,000 employees as part of its "restructuring" plan.
Autodesk laid off 1,350 employees due to "changes in sales" and to stay "competitive" in the current economy.

Venture Capital

💻 NinjaOne, an IT platform for endpoint management, raised $500M for a valuation of $5B with Iconiq Growth as one of the lead investors.

🧬 Eikon Therapeutics, a biopharmaceutical company, raised $351M for an undisclosed total valuation.

Insights from Google Trends...

🍎 Search volume for "Apple $500 billion investment" shot up by 800% on Feb 24 ➡️ Probably due to prospect of new manufacturing facilities and creation of 20,000 much needed jobs.

🔻 Search volume for "Bitcoin price" increased by 100% on Feb 25 ➡️ Likely caused by price dropping below 50-day moving average.

🍪 Search volume for "NVDA" shot up by 600% on Feb 26 ➡️ Driven by impactful earnings report and deep market implications such as question of demand for costly AI chips and impact of tariffs.

Insights from Twitter...

Most talked about stocks by YTD performance:

$TSLA (Tesla): -25.66% YTD
$NVDA (Nvidia): -13.13% YTD
$PLTR (Palantir): +12.74% YTD
$SOFI (SoFi Technologies): +0.42% YTD
$MSTR (MicroStrategy): -19.99% YTD
$HOOD (Robinhood): +23.68% YTD

Insights from Reddit...

r/investing: CHIPS Act could be in danger after hundreds of NIST (National Institute of Standards and Technology) employees are expected to be laid off.

r/investing: Over 30% of Nvidia's revenue is concentrated in 3 customers (industry analysis suggests it's Microsoft, AWS, and Google).

r/wallstreetbets: FAA Could Cancel $2.4B Verizon Air Traffic Control Contract and Give It to Elon Musk’s Starlink.

📈 Stock Picks

$NVDA (Nvidia)
📆 Publicly traded since 1999
💰 Specializes in GPUs, Data Centers, and AI
📍 Headquarters in Santa Clara, California

Financial Green Flags

Based on Quarterly Earnings Report:

✅ Net income (profit) is up 14% Quarter-over-Quarter

✅ Net income (profit) is up 80% Year-over-Year

✅ Diluted earnings per share (EPS) are up 82% Year-over-Year

Based on Annual Earnings Report:

✅ Net income (profit) is up 145% Year-over-Year

✅ Diluted earnings per share (EPS) are up 147% Year-over-Year

✅ Return on equity (ROE) is 28%

Things to Consider

💡 Morgan Stanley analysts predict that Nvidia will capture 95% of the global GPU market in 2025, thereby further solidifying itself as a dominant industry player.

💡 The company is making a lot of its money from a few big spenders. Over 30% of Nvidia's revenue is concentrated between 3 customers (reportedly they are Microsoft, AWS, and Google).

The Bottom Line

While Nvidia may be overexposed in terms of revenue sources, it is undoubtedly a dominant player in the GPU and data center industry and has a track record of strong financials and accurate forecasts. Right now could be a good time to add some Nvidia shares to your investment portfolio.

$APP (AppLovin)
📆 Publicly traded since 2021
💰 Specializes in Marketing and Data Analytics
📍 Headquarters in Palo Alto, California

Financial Green Flags

Based on Quarterly Earnings Report:

✅ Net income (profit) is up 38% Quarter-over-Quarter

✅ Net income (profit) is up 248% Year-over-Year

✅ Diluted earnings per share (EPS) are up 253% Year-over-Year

Based on Annual Earnings Report:

✅ Net income (profit) is up 343% Year-over-Year

✅ Diluted earnings per share (EPS) are up 362% Year-over-Year

✅ Return on equity (ROE) is 145%

Things to Consider

💡 AppLovin stock grew 700% in 2024, but shares dropped 12% on Feb 26 and are down 20% over the past week.

💡 The company has been accused of "copying Meta's homework", showing explicit ads to children, and exaggerating its AI platform's innovativeness.

The Bottom Line (Buy the Dip?)

While AppLovin has been taking a beating in the press, it still has strong financials on paper so this might be a good time to buy the dip (not financial advice btw).

🚀 Startup Pick

Paladin Power, Inc.
📅 Founded in 2022
📍 Headquarters in Carlsbad, California
⚡️ Specializes in off-grid energy storage

Highlights:
1) 500% YoY Sales Growth, serving a $114B+ energy storage market
2) Generated over $2M in sales in 2024

The Business Model: Paladin Power makes money by selling its energy storage systems directly to residential and commercial customers who want reliable and sustainable energy solutions.

Competitive Advantage (Edge): Most competitor products can only power a portion of a home. Paladin Power can power an entire home in a smaller footprint compared to most competitors.

Industry Trends: California Regulation Changes to NEM 3.0 in April of 2023 are driving demand for Paladin Power's Energy Storage System.

Strategic Partnerships: Paladin Power has signed a manufacturing service agreement with JABIL to achieve a scalable manufacturing and supply chain process that will help meet revenue goals.

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