GPT5 keeps Nvidia's AI narrative going!

After the release of GPT5, the demand for data centers will double within five months. The resources and capital invested by tech giants in AI will not decrease but intensify, which is the biggest boon for AI semiconductor companies represented by NVIDIA and AMD.

Companies in the related industrial chain will attract capital inflows, such as the three data center operating companies invested by NVIDIA—CRWV, APLD, and NBIS—which will continue to see long positions. Nuclear power-related companies will also be hyped again.

Many people have significant cash on hand, waiting for the seasonal correction in August to buy the dip. However, based on the current situation, the AI narrative is only growing stronger, and capital is becoming smarter. Any dip will be bought.

Therefore, waiting for a major correction will be very difficult.

After all, following the correction in February and March this year, the recovery was so rapid that many didn’t even react before the market rebounded.

Thus, the current strategy is to firmly hold onto AI semiconductor companies and those in the AI main track.

Many believe PLTR’s P/E ratio is too high, labeling it as a bubble, but they overlook PLTR’s uniqueness in government contracts and its explosive growth in corporate orders year after year.

When you turn a blind eye to Tesla’s consistently high P/E ratio but nitpick PLTR’s, you’re ignoring one thing: autonomous driving is tangible, while PLTR’s AI systems and data-driven decision-making are invisible in daily life, making its valuation seem inflated.

But you must understand that U.S. counterterrorism and military intelligence rely on PLTR’s systems. National security isn’t measured by money, so government contracts keep flowing. Tesla has competitors like Uber and Google’s Waymo, but PLTR has none—its purpose is to eliminate competition.

APP and TTD, both AI-driven ad-tech companies, have taken completely different paths: one is heavily favored by capital, while the other faces a sell-off. This reflects the market’s attitude—only the strong survive. In AI advertising, the dominant players with technological advantages and higher ROI capture more market share, as the overall market pie hasn’t expanded significantly.

But the semiconductor industry’s pie keeps growing due to rising demand, allowing NVIDIA to become a $4.4 trillion giant, Broadcom to surpass Tesla in market cap, and AMD to secure more orders despite competition.

Market adjustments now happen faster—some complete in a week. A single earnings report can trigger a 30% drop, followed by a prolonged bottom until sector-specific good news sparks another rally.

Thus, the U.S. stock market gives the impression that making money is slow, but losing it is fast—a single unexpected event can wipe out months of gains.

This is why big capital prefers to flock to NVIDIA’s $4 trillion empire rather than dabble in smaller companies, which are more vulnerable to attacks.

Today’s CPI data might shake the market, but from Trump’s perspective, maintaining rate-cut expectations is crucial. His administration’s unconventional moves, in a way, resolved the U.S. government’s debt crisis—like taxing overseas-registered giants (e.g., Apple, Google) when they face foreign penalties (e.g., EU fines), then mediating. It’s contradictory: no tangible benefits but resources spent cleaning up their messes. So, why not make them pay a percentage of revenue to solve the U.S. debt crisis?

For capital markets, reduced uncertainty is good. With most quality stocks overpriced, investors have fewer cheap alternatives. So, when a big company’s CEO visits the White House on good news, it’s a bullish signal—capital rushes in to buy the dip.

This is the reluctant choice in a market with no good options.

2025 will undoubtedly be a volatile year, requiring full digestion of the past two years’ gains. Thus, personal discipline is paramount—strict position management is advised. Those who prioritize discipline can join our community.