Nvidia’s quarterly sales more than doubled.

But OpenAI’s custom inference chip was reported to beat Nvidia’s Blackwell on power efficiency and latency.

Demand is huge today. Long-term dominance is less certain.

Nvidia’s Growth Is Still Enormous

Nvidia reported quarterly revenue of $96.2bn.

Data centre revenue reached $89bn, up 117 per cent year-on-year. Net income reached $59.7bn, and gross margin was 75 per cent.

The outlook was also ahead of expectations.

Nvidia expects current-quarter sales of $108bn, plus or minus 2 per cent. Wall Street expected $104bn.

The weaker number was margin. Nvidia expects about 74 per cent, slightly below the 75 per cent analysts expected.

Demand is not the immediate problem.

Earlier this month, Nvidia said it was working with Apollo Global, KKR, Brookfield, BlackRock and Goldman Sachs on a $500bn funding package.

More customer financing could support more infrastructure spending and potentially more demand for Nvidia chips.

OpenAI’s Chip Raises the Long-Term Question

OpenAI’s Jalapeño inference chip, built with Broadcom, was reported to deliver up to 1.9x more throughput per watt and up to 3.6x lower latency than Nvidia’s Blackwell.

The limitation matters. Jalapeño handles inference, which is the work performed when an AI model answers users. It does not handle model training.

OpenAI designed the chip. Broadcom provided the silicon and networking. Celestica makes the boards and racks. TSMC fabricates it on 3nm.

The risk is that large cloud companies move more inference work away from GPUs.

Analysts cited by the risk-watch source expect Nvidia’s inference share to fall from more than 90% toward 20 to 30% by 2028. That is an expectation, not an established outcome.

Nvidia’s current results provide the counterpoint. Its data centre revenue rose 117 per cent, and its sales forecast beat expectations.

Custom chips may be getting better. Nvidia is still growing at an enormous rate.

AI Stocks Are Splitting From the Market

The 40-day correlation between the US Broad AI Index and the S&P 500 ex-AI Index fell to a record-low -0.60. It was +0.65 in mid-May.

The US AI Index has surged 160% since April 2025. The S&P 500 ex-AI Index gained about 35%.

That suggests investors are increasingly rotating between the two groups instead of moving both together.

Before Nvidia’s report, the S&P 500 and Dow gained 0.3%, while the Nasdaq rose 0.7%. Nvidia gained about 2%, ending a multi-day losing streak.

Oil fell roughly 3-4%. Inflation fears eased, and bond yields declined.

Bitcoin briefly moved above $80,000 before settling near the high $78k to $79k range.

Individual stocks moved much more sharply. Moderna climbed nearly 14% following analyst upgrades and momentum from its cancer vaccine trial success. Dick’s Sporting Goods fell more than 30% after missing estimates and cutting full-year guidance.

Consumer confidence dropped to a seven-month low, while new home sales declined.

Tesla’s Bigger Claims Have Less Disclosed Evidence

Jason from the All-In Podcast described Optimus hardware as about 1.5 generations ahead and its “brain” as about 5 generations ahead.

He said Optimus would win 35 of 51 contests at the World Humanoid Robot Games. He also predicted 1 billion Optimus robots by 2036.

But he said he could not disclose what he saw in the demonstration.

Elon Musk separately told Ron Baron that he is building a chip that will be 2 to 3 times better than Nvidia at 10% of the cost.

Musk also said Tesla’s self-driving system has logged 10 billion miles and is 4 times safer than a human driver. He said the new chip would make it 10x safer.

These remain Musk’s claims.

Meta Considered Much Deeper AI Automation

Reuters reported that Meta had planned for AI to take over much of the daily work performed by thousands of employees.

Executives also explored reducing many teams by as much as 60%. The CEO changed course hours before the first layoff wave.

Meta reached an overnight high of $573.20 on potential settlement news, according to Heisenberg.

Separately, Wall Street Millennial’s risk-watch item said Meadow was forced to pay $942 million in civil penalties to New Mexico on August 7th, 2026. The lawsuit concerned the alleged addictive nature of Facebook and Instagram and their effects on children.

Ahold Shows the Price of Stability

Ahold returned to about 30 after trading above 40.

Its constant-rate results were stagnant. Online sales kept growing, margins were stable, and earnings per share fell 1.4%.

Its outlook included a 1 billion share buyback and free cash flow of 2.3 billion.

The value-investing speaker calculated an intrinsic value of 28 using a 4% dividend yield and a 10% discount rate.

Another scenario produced a present value of 34. It used 3% growth from buybacks, 3% organic inflation growth and a 3% dividend yield.

The speaker said the stock could reach 40 if interest rates declined. A recession scenario implied another 30% decline.

The range is wide because the valuation depends on lower interest rates, a good consumer, avoiding a bad recession and investors accepting a 4% rather than 6% dividend yield.

Bill Ackman’s portfolio offered another set of comparisons. Uber remained his biggest position. Brookfield, Microsoft, Amazon, Meta Platforms, Visa and Netflix were described as relatively cheap compared with the market.

Ackman said Pershing trades at a huge discount to net asset value. Pershing charges a 1.5% annual management fee and a 16% performance fee, which the speaker said helps explain the discount for long-term holders.

Big Stock Targets Came Without the Work

Investing@DollarCostAvg said IREN’s 2027 annual recurring revenue target was in the $10-15 + BILLION range. The account added, “We are 5 months from it.”

Marcos Milla said Marvell could gain 500%+ over the next 3-5 years. He rated it 4.5/5, said Wall Street analysts rated it a BUY, and followed the claim with a Zenvesto promotion.

Those claims were not backed by company results or forecasts with supporting figures.

Trade, Healthcare and Government Funding Added Separate Risks

Automakers had hoped for relief from Washington’s 25% tariffs on vehicles and parts crossing the US-Canada border.

Reuters reported that the problem instead became twice as bad. A separate market brief said new retaliatory tariffs extended the tensions, although markets largely brushed them aside.

The US FDA approved Revolution Medicines’ pancreatic cancer drug after a large trial showed it doubled survival among patients with advanced disease.

A geopolitical-economy speaker argued that foreign governments are reducing Treasury holdings because they fear the dollar and US government debt can be weaponized.

The speaker pointed to the 2022 freeze of 300 billion dollars of Russian central-bank assets. According to the speaker, a European Central Bank report using 2025 data showed gold had overtaken US Treasuries as the largest asset in global central-bank reserves.

George Gammon described possible use of the US Treasury’s near $1 trillion general account as an “act of desperation.” His source said the account could help fund increased government bond purchases.

Nvidia’s numbers show that AI demand is still enormous.

OpenAI’s reported chip results raise a different question. If custom inference chips keep getting better, who captures that spending later?

Demand is not Nvidia’s problem today. The unresolved question is its long-term dominance.