Nvidia’s Record Haul and the A.I. Bubble Question

Foreign. Nvidia just delivered one of the largest profit jumps in Silicon Valley history, raising the question, are we witnessing the peak of a rational AI boom or the edge of a dangerous tech bubble? Then Lauren Summers steps back from teaching at Harvard and and sheds a string of elite roles as newly released Epstein emails trigger the most serious crisis of his public life. We'll look at the explosive revelations in the James Comey case, where Trump's own former White House lawyer says Pam Bondi and Lindsey Halligan should be disbarred. We'll dig into the Charlie Kirk Purge, more than 600Americans punished over social media posts that weren't necessarily violent or even threatening, just not sufficiently loyal. And finally, a new national poll gives Democrats their biggest lead over Republicans in eight years, even as Gavin Newsom and other Democrats warned Trump may be laying the groundwork to undermine the 2026 and even 2028 elections. All that and more today. Here. Are. But it doesn't mean necessarily that Nvidia is going to crash. They could be the big winner. Microsoft, OpenAI could be the big winners. Other companies could lose, but society could be much richer, just as it was after electricity and railroads and automobiles. Let's dig a little bit deeper here. Now, there's no doubt people are nervous. I'm nervous because Nvidia is now so incredibly big that what would have happened if their sales had been down a little yesterday? Many fear that would have caused such a panic in the market because there's such a huge percentage of not just the US Stock market, but the entire worldwide market. Nvidia, its market cap is bigger than the entire market cap of Germany's publicly traded companies. So they are huge, huge, huge. And you can have a sigh of relief after yesterday. But it does seem as though at some point, everybody has a down quarter. You have a down quarter, I have a down quarter. But we're not big publicly traded companies. So what is going to happen? There's no doubt there's going to be some retrenchment. There's no doubt that we're going to get to a point where simply saying you're an AI company, you're going to get showered with this, this positive, warm blanket of good feelings and investor cash. Those days will have to end at some point. Let's look at this in some historical context. In the United States alone, There were roughly 3,000 automobile companies that existed in the 20th century. Almost all of them went out of business. You had the big three after a few decades, and pretty much the rest of them poof so if you were an investor in an automobile company and you invested in 10 companies thinking, well, one out of 10 will hit, well, no, there's a good chance you lost your money in all 10 investments. Let's look at another industry. Radio manufacturers. By 1930, there were 640 US radio manufacturers, radio networks and players. Almost all of those brands disappeared. 90% of them vanished. So this has happened time to time again. Railroads, electricity, new technology comes in. It genuinely is breathtaking technology. Investors rush in, entrepreneurs rush in. That's what you want in a free market capitalistic society. But it is inevitable that at some point there's retrenchment. At some point the bubble burst. It doesn't mean people were irrational to invest in that new technology. It just means most people pick the wrong horse to back and that's that. If you bet on pets.com in 1998, you lost everything. If you bet on Amazon.com, you became wildly wealthy. But you only know that after the fact. So is this the real deal? Is AI the real deal? I happen to be in the camp that you. Yes, it is. It is going to change society and in the short term and the media term, I do think it's going to make society as a whole a whole lot better off. Yes. I'm not Pollyannish about this. There are many, many things it could do to make things worse. Not to mention the fact that we have an entire generation of young people who are happy to sit on the couch and have relationships with digital clones and character AI which may cause the extinction of our species. But putting that aside for a minute, I think in general there's going to be a lot of advances in medical breakthroughs and new cures for diseases. Things that can eliminate backbreaking, painful, dangerous work that will be a huge, huge boon to society. Long term, could it bring out extinction? It absolutely could. I'm very optimistic. Short term and medium term. I'm not optimistic that all of the companies publicly traded in America today that have seen their valuations skyrocket and that are seeing price to earnings ratio that are absurd by historical standards, that they're all going to do well? No, I am not. So what are we to do if we have a lot of our stock, not necessarily in Nvidia, but if you own stock in technology companies and you're sitting back and thinking, wow, my 401k is really growing, my net worth is growing. But it seems too good to be true. It seems too easy. Well, it might be the only guidance I can give you. And this is not a financial investment advice. I am not your financial advisor, but I'm here to analyze major stories of the day and to try to fit it in through the filter of communication and personal development. Beware of hubris. Your net worth today might be higher than it's ever been. It is for a lot of people. That doesn't define your worth. It doesn't mean you're going to have that for tomorrow. The only hedge that I can see that I try to practice is every day when it comes to my own personal finances. Yes, invest. I invest in the market. I try to add holdings every single month. I only do low cost index funds. You can do what you do, but the only real hedge is to continue learning new hard skills, continue trying to be in the marketplace giving value to others so you have income at any age. Ted Danson, as we talked about yesterday, age 77, he's still making a gazillion TV shows and making tons of money. That's one hedge. If you always have income, then if your stocks go down, it's not going to matter. The other thing is, live within your means. Use debt in as limited a way as possible. Use debt in very strategic purposes, for very strategic purposes, and in ways where if all of a sudden your stocks went to zero.