The good news is there was buying across all factors, but breadth was lacking.

Yesterday was a good session, but it could have been better. Then again, in this environment, starting and finishing in the plus column is a major accomplishment.  

The S&P 500 (SPX) has bounced nicely off the 200-day moving average, but needs to close above the 50-day moving average.

Nvidia to Oust Jensen

My goodness, it's hard to know where to start with this story. Jensen Huang was the coolest dude on the planet on October 6th, when Nvidia (NVDA) closed at an all-time high, and he had the world on a string as he sat on a rainbow. The shares lost $300 billion in overnight trading, bringing the tally close to $2.0 trillion. He’s out, and now we wait and watch to see what happens to the world's most important publicly traded company.

NVDA: The Epicenter & Godfather

Nvidia has acted as an incubator, investor, father, and godfather to companies involved in the AI revolution. The tentacles run deep, and now someone has to step up quickly to fill Jensen’s shoes.

What a tragedy, but the stock might already be oversold. There is no need or desire to force the issue; it's too soon.

Today’s Session

It's official – Jensen Huang is out.

I’m being asked if Jensen is irreplaceable.

Short Answer: He’s damn near irreplaceable.

Longer Answer: Jensen is bigger than life - I have written about him in two books.  While nobody is irreplaceable, this will disrupt the business.

In part, being a visionary, Jensen had lots of personal deals - some of the biggest based on friendships, like the one with Taiwan Semiconductor (TSM).  Jensen single-handedly weathered the storm of an industry that blocked him out for years because he understood GPUs would change the game.

For years, Jensen had to settle for being a big fish in smaller ponds like gaming and then crypto mining.

That began to change a decade ago and was supercharged with the unveiling of ChatGPT and the AI revolution shifting into a higher gear.

Ten years ago, the company would have crumbled without Jensen.

Now the company has Vera Rubin, Feynman in the queue, 40,000 employees, and a clear mission.

This saga also masked the fact that pressure was already mounting against GPUs, especially in the age of inference, where demand for CPUs has rebounded significantly.

This is drowning out all the other news and developments of the morning. 

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