Hey Snackers,
In the battle to win in the tech space, we often hear about problems like not being able to build data centers fast enough to keep up with demand, but we don’t often hear about problems like the one TSMC is encountering in Japan: the chipmaker is delaying the expansion of a second plant on the island because its presence is single-handledly creating horrific traffic problems, turning a 10- to 15-minute drive into a much, much longer commute. And we thought traffic in NYC was bad!
A relatively calm day of trading saw the S&P 500 up no more than 0.3% and down not even as much as 0.1% over the course of the session, with the benchmark index giving up modest gains in the last couple hours of trading to finish flat. The 40-basis-point difference between the day’s high and low was the index’s slimmest range since Valentine’s Day, and total volumes across US exchanges were the lowest in roughly a month. The Nasdaq 100 managed a 0.3% gain while the Russell 2000 dipped 0.2%.
Nvidia victorious as CoreWeave smashes expectations faster than analysts can set them
Yesterday, Sherwood News Markets Editor Luke Kawa made a startling observation: Nvidia has made more money on just its CoreWeave position this quarter than nearly half the companies in the S&P 500 made at all last quarter.
Naturally, we had to run the numbers on that, and it’s true. Even better, that gain is more in net income than 473 companies in the S&P 500 generated last quarter. The company, which made its IPO in late March, has been on a real tear lately, and Nvidia owned oodles of it at its IPO.Â
Over the course of this quarter (which is only about two-thirds complete), the value of Nvidia’s CoreWeave position has increased by about $3.1 billion, assuming it hasn’t sold any. That’s about $900 million in value at the end of Q1 (24,182,460 shares at a price of $37.08) turning into nearly $4 billion as of yesterday afternoon.
Let’s take a look at CoreWeave’s absurd run:
Just two weeks ago, shares of the AI cloud computing company broke above the $100 threshold for the first time. Yesterday they closed at just over $165.
That parabolic surge put CoreWeave in an extremely unusual position where all eight of the analysts who had a “buy” rating on the stock also had price targets that were well below where the shares were trading.
Earlier this week, Applied Digital and CoreWeave jumped again after the former announced a pair of 15-year deals between the two tech companies to support the latter’s AI capabilities.
The Takeaway
It was a little curious when Nvidia took an anchor position in CoreWeave’s IPO. The move had a bit of an ouroboros feel to it — the dominant industry player supporting an upstart whose business model has been dependent on access to the chip designer’s powerful products.Â
Well, if Jensen Huang ever gets bored of running a $3 trillion company, there just might be a place for him in the hedge fund world.
Own a Piece of This Celebrity-Backed Startup
The future of immersive entertainment is here — and Virtuix is leading the charge.
Virtuix's Omni treadmill lets players physically walk and run in 360 degrees through virtual worlds — for gaming, fitness, and even military training.
How’s it Going?
âś… Impressive Momentum: $18M+ in product sales1 and 400K+ registered players, and just launched Omni One following 3,000+ preorders.2
âś… Military Expansion: developing VR training systems in collaboration with the U.S. Air Force
âś… Industry-Leading IP: 32 patents (24 issued, 8 pending) protecting core tech in hardware and software
âś… Backed by $40M+: investments across all offerings from well-known investors like Scout Ventures, Maveron, and Shark Tank celebrities
With over $2M already raised in this round, investor demand is heating up.
Don't miss this chance to invest in one of the most exciting players in VR.3
1 Lifetime product sales is since December 20, 2013.Â
OpenAI’s plan for “democratic AI”
The race for sovereign AI is heating up across the world, with countries rushing to secure AI infrastructure to spin up data centers inside their borders for scientific research, commerce, and defense. The US has a head start in the AI field, as the home to the leading model makers and infrastructure companies. But the globe is catching up: Sherwood’s Jon Keegan made a handy table of every nation’s AI ambitions and partners.
To address this global hunger, OpenAI announced an initiative called “OpenAI for Countries" last month, which aims to help countries develop and host their own AI infrastructure locally. Perhaps the most interesting part of the announcement touched on the ability for nations to craft their AI models to reflect their values: “This will be AI of, by, and for the needs of each particular country, localized in their language and for their culture and respecting future global standards.”
But how “sovereign” this AI will be under this plan is an open(AI) question.Â
This isn’t a plan to let countries roll up their own models from scratch — it involves customizing OpenAI’s tech.
An update to the announcement reinforces an earlier hint that the plan is to have OpenAI and the US government running the show.
Countries that participate in the plan are expected to invest in the US Stargate project.
Notably, OpenAI says it will “support countries that would prefer to build on democratic AI rails, and provide a clear alternative to authoritarian versions of AI that would deploy it to consolidate power.” Saudi Arabia and UAE, the latter of which is where OpenAI just launched Stargate UAE, are both monarchies with a history of human rights violations.
The Takeaway
The “OpenAI for Countries” document reads like the Trump administration had some notes for OpenAI to clarify a few things about the program. Without knowing which countries will be part of the initial cohort, we’ll have to wait and see whether the company is able to stick to these principles in the face of all that sweet, sweet capital.
The biggest S&P 500 Index winners and losers since April 4
After eking out another gain in Tuesday’s session, US stocks have now climbed nearly 20% since bottoming out on April 4, sending the S&P 500 Index within spitting distance of its all-time close of 6,144 in February. Our friends at Chartr made this incredible interactive visualization to show which company gained the most and which is the biggest loser.Â
OFF THE CHARTS
Which game racked up 19.8 million players in the US last year, rising 311% from three years earlier to become the fastest-growing sport in the country?
The future of entertainment is here
Virtuix's Omni treadmill lets users walk and run in 360° inside VR games and simulations. With $18M+ in lifetime revenues1 and $40M+ in investor backing, Virtuix is just getting started.
In the words of Kevin O’Leary, StartEngine Strategic Advisor and Shark Tank personality4: “This is a huge market, and Virtuix is a competitor in it with proven sales. That’s what I like about this deal.”
Own a stake in one of the most exciting companies in immersive entertainment.3Â
1 Lifetime product sales is since December 20, 2013.
Yesterday’s Big Daily Movers
Dollar Tree was one of the biggest losers in the S&P 500 after the discount retailer beat Q1 estimates but warned that tariffs could slash its profits by half
CrowdStrike fell after reporting weaker-than-expected revenue guidance for the current quarter after the bell yesterday
Reddit popped after the social media platform filed a lawsuit against AI startup Anthropic
What else we’re Snackin’
Ahead of Tesla’s robotaxi launch, video from a fatal full self-driving accident shows the shortfalls of relying on cameras only
Analyst: Apple is too expensive; buy Amazon or Alphabet instead
Airbus had a good day as China reportedly nears a massive deal for hundreds of jets
Webus is joining the digital asset treasury trend and raising up to $300 million for an XRP treasury
The future of immersive entertainment is here with Virtuix's Omni treadmill, where players physically walk and run in 360 degrees through virtual worlds. Learn more about the opportunity to invest in one of the most exciting players in VR.3
Snack Fact of the Day
ChatGPT is officially clocking more site visits than Wikipedia.
Thursday
Earnings expected from Broadcom, Ciena, Lululemon, Victoria’s Secret, and Petco
2 Preorders are non-binding expressions of interest and do not represent guaranteed sales. Actual conversion to revenue may vary based on fulfillment, customer demand, and other factors. Past performance is not indicative of future performance.
3 Please read the offering circular and related risks at the StartEngine webpage for Virtuix. This is a paid advertisement for Virtuix’s Regulation CF Offering. This Reg CF offering is made available through StartEngine Primary, LLC.Â
Investing in private company securities is not suitable for all investors because it is highly speculative and involves a high degree of risk. It should only be considered a long-term investment. You must be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid, and there is no guarantee that a market will develop for such securities.
This was a paid for ad. Sherwood Media has been compensated for this ad by the Virtuix Reg CF Campaign hosted on StartEngine.
4 Kevin O’Leary is a paid spokesperson for StartEngine. See his 17(b) disclosure, here. StartEngine is where Virtuix’s Reg CF offering is made available.