It's pucker time ...

The NVIDIA stock chart. Jonathan Raa/NurPhoto via Getty Images

It's pucker time, you know, the feeling you gotta tighten up or disaster ensues. This is where we are at regarding Nvidia, AI and all the companies invested to the moon with Nvidia,
something discussed in a "wonderful" BRT blurb titled The Tell.

As the price of almost everything has increased, and American workers’ wages have all but stalled, politicians like President Donald Trump have tried to ease our minds by telling us that the economy is “doing great” and that the stock market is booming. “Record high, record high, record high,” Trump said at an event earlier this month in Florida.

The world’s most important company, Nvidia, is driving the entire growth of the US stock market to an extent that no single company has in recent memory.

If it falters, there’s a fear it will take the entire US economy down with it — and there are signs that it might.

The shock waves of Nvidia falling would be devastating and far-reaching — from tech startups and cloud computing to construction, land development, and steel — because of the AI supply chain.

Still, despite what has been a good year for the stock market, it’s hard to find a day in which a podcaster, influencer, or economist isn’t warning that the AI boom that’s powering the economy could be a bubble — one that is about to burst.

The company that’s driving Wall Street’s positive movement is Nvidia, the most valuable company on the planet. And that’s because the recent rash of data centers popping up across the country are filled with Nvidia’s graphic processing units, or chips.

As per The Tell ...

While the report and guidance were strong, the one red flag with Nvidia's report was that the company continues to see its accounts receivable balloon. During the quarter, this metric climbed 89% year over year to $33.4 billion, outpacing its sales growth. Accounts receivable is how much money is owed to the company for products that have been shipped. Continued big jumps in this metric can be a sign of channel stuffing or collection problems. Given that Nvidia has started to make investments in its customers, like OpenAI and Anthropic, this makes it even more notable, as the chipmaker is essentially providing the cash these companies need to help buy its chips. This type of circular financing likely isn't sustainable over the long run.

AKA Stuffing the Channel ...

Channel stuffing is the practice of flooding a distribution channel with excess inventory to artificially inflate sales figures, often done to meet short-term sales quotas or inflate performance. This can lead to negative consequences like high return rates, bloated inventory, fluctuating demand, and reduced profits. It is a fraudulent accounting practice that can result in significant legal trouble for companies, notes KPMG International and MoloLamken.. 

The underlying issue no one talks about is the notion of AI hallucinating as virgin content for AI no longer exists so continued scaling of ever larger AI models necessitates the tech bros to enlist their AI's to create synthetic experiences, a process akin to inbreeding along the lines of the royals and we all know where that leads, correct?

And so it goes. K. Vonnegut