NVIDIA: To the moon or grounded soon? 🤖

^{“I don’t paint dreams or nightmares, I paint my own reality.”}

— Frida Kahlo

👋 Friends, Rallie here. The newsletter educating you on the latest in tech, finance and crypto because we think every day is a school day.

On the menu:

• 🤖 NVIDIA: To the moon or grounded soon?

• 🗞️ Headlines That Hit

• 📈 Refresh: Market Cap

• 🤓 Trivia Tuesday

• 💯 Top Tweets

The Rallie Recap

📣 NVIDIA, the company that has almost quadrupled its worth in just one year, is the apple of many investors’ eyes. Today, we give a run down on the company and why it’s suddenly so popular.

• Here’s the skinny: NVIDIA is a chip company that popularized the graphics processing unit (GPU), and the company is quickly becoming a pioneer in artificial intelligence tech. Their GPUs are in high demand as they can be used for crypto mining, gaming, vehicles, robotics, AI and many other professional applications.

• So why the attention? Over the past week, NVIDIA stock has skyrocketed due to its hand in various sectors, the demand for its products as a result of COVID, and the surge of interest in AI solutions. 🚀

• But that’s not all… This morning, the company hit $1 trillion in market value as a result of AI demand. Wowza!

• And the company is working fast. A new machine they’re developing will facilitate 1 quintillion calculations per second. NVIDIA is also building Israel’s most powerful AI supercomputer to meet customer demand for AI applications.

• However, not everyone believes in NVIDIA’s promise. The CEO of ARK Invest dipped out of the NVIDIA ride before the 160% share increase, referencing product shortage, growing competition from major corporations, and noting ARK plans to pivot to other AI plays. We doubt her shareholders are very happy right now…

• Adding on to a more critical view, some of the company’s most active consumers mourn the rise of NVIDIA. As many predict that pricier GPUs are on the way. The latest generation of gaming GPUs are angering customers with steep prices, confusing marketing, and a lack of features. The backlash has caused a 38% gaming revenue decline in the first quarter of 2023; however, NVIDIA still holds dominance in the space in terms of GPUs.

• Time will tell if NVIDIA’s progress is too good to be true or if it will continue to break expectations. Either way, keep an eye out for updates from us!

Headlines That Hit

• 🇨🇦 No bueno. Canada has the highest household-debt-to-GDP ratio in the G7.

• 🤝 A controversial agreement. Biden and McCarthy have reached an “agreement in principle” to raise the country’s legal debt ceiling, but the pressure is on for Congress.

• 👑 Representation for women and a protest for rights. The 3rd woman to win a Cannes Palme d’Or uses her acceptance speech to criticize French president, Emmanuel Macron, who harshly repressed protests against pension reforms.

• 🇷🇺 36 billion gone. In the past year, foreign investors have withdrawn billions from the Russia, but Western companies looking to exit the market have to make a direct donation to the Russian state.

• 🧐 TECHnical assistance. JPMorgan is developing an AI service that gives investment advice and helps select investments for its customers. 

• 👁 Eye spy. The CEO of OpenAI wants to scan your eyeball in exchange for crypto with his $115 million project, Worldcoin.

Rallie Refresh: Market Cap

Market cap: two words frequently used by analysts and often heard in the news, but what does it mean? Today, we’re breaking it down for you. Let’s dive in!

🏛️ What is market cap?

• Market capitalization (aka market cap) is the total value of a company’s outstanding shares of stock. But a company’s value cannot be determined through just the market cap alone.

• Market cap is used as a measure of a company's size and worth in the financial markets, providing an indication of its overall market value.

• Generally, to calculate a company’s market cap, multiply the number of outstanding shares by the current market value of one share.

• A company’s stock price is determined by supply and demand, which can also affect a company’s market cap, and changes in market cap can result in changes in stock price.

• For example, if a company’s market cap increases due to factors such as increased investor confidence or positive financial performance, it can potentially lead to an increase in stock price. Conversely, a decrease in market cap can put downward pressure on the stock price.

₿ What about crypto?

• Market cap in crypto refers to the total value of a crypto asset. It is often used to understand token popularity, meaning whether investors are more interested and/or willing to invest.

• Assets with lower market capitalization are more likely to fluctuate dramatically than those which a much larger market cap.

• Crypto market cap can be calculated by multiplying the total number of mined crypto tokens with the price of one token at the time.

🚀 There you have it! Understanding market cap is an important tool in your DYOR tool box as an investor!

Fun Fact

📈 To find out the answer, be sure to read our Thursday newsletter!

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That's all for today. Stay hungry & we'll catch you next time. ✌️

DISCLAIMER: This is not financial or legal advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisionsT