NVIDIA (NVDA) is presented as the highest conviction investment, as advancements in AI and news of Tesla relying on its chips reinforce its market dominance. Investors may find a contrarian opportunity in The Trade Desk (TTD), which fell over 30% due to a CFO change despite beating revenue expectations. In the crypto market, Ethereum (ETH) is attempting to break the key psychological resistance level of $4,000, fueled by potential new investment inflows. For a high-growth play, consider SoundHound AI (SOUN), as the market is rewarding its raised revenue guidance and new restaurant partnerships over current profitability. Finally, investors with a long-term, five-year horizon could look at UnitedHealth Group (UNH) as a potential value play, though it carries near-term uncertainty.

Artificial Intelligence (AI) & GPT-5

• The release of OpenAI's GPT-5 was a major topic. The model was described as the "best model in the world in terms of coding and writing" and is now an integrated model that is "very smart, intuitive, and fast."
• The host believes that as AI models from OpenAI, Grok, and Anthropic become more intelligent, it will lead to massive increases in productivity, margins, and earnings growth for companies.
• The host notes that "all roads will lead back to NVIDIA (NVDA)," suggesting it is the ultimate beneficiary of the AI arms race.
• The release was seen as a potential "language app killer," which caused Duolingo (DUOL) stock to fall from its daily highs, although the host is "not really buying that argument."

Takeaways

• The overarching investment theme is that advancements in AI are a major tailwind for corporate profits and productivity.
• Investors should look for companies that can effectively leverage AI to improve margins or companies that provide the essential infrastructure for AI.
• NVIDIA (NVDA) is positioned as the key "picks and shovels" play for the entire AI industry.

NVIDIA (NVDA)

• The stock was trading around $180 - $183 during the podcast.
• The host expressed a strong bullish sentiment, stating that advancements in AI models like GPT-5 will ultimately benefit NVIDIA, as "all roads will lead back to NVIDIA."
• When comparing investment opportunities, the host stated they would "sleep better at night with NVIDIA" than with a company like UnitedHealth (UNH), despite NVIDIA's massive $4.3 trillion valuation.
• Major Bullish Catalyst: Late-breaking news during the podcast revealed that Tesla (TSLA) is disbanding its in-house Dojo supercomputer team and will rely more heavily on NVIDIA and AMD. This is seen as a significant validation of NVIDIA's competitive moat.

Takeaways

• The podcast presents a strong bullish case for NVIDIA as the primary beneficiary of the entire AI trend.
• The news about Tesla abandoning its Dojo project is a significant tailwind, reinforcing NVIDIA's dominance in the AI compute space and showing how difficult it is for even major tech companies to compete.
• Despite its high valuation, the host prefers NVIDIA over other opportunities due to its clear growth trajectory and market leadership.

The Trade Desk (TTD)

• The stock experienced a massive drop after its earnings report, falling as much as 30% in after-hours trading.
• The financial results themselves were not the cause of the drop:
  • EPS: $0.41, in line with expectations.
  • Revenue: $694 million, a beat versus the expected $686 million. Revenue grew 19% year-over-year.
• The primary reason for the sell-off was the announcement that the CFO is stepping down.
• The host expressed surprise at the severity of the market's reaction, questioning if a CFO change justifies such a large decline, especially on a revenue beat.
• The stock was noted for its volatility throughout the year and was recently added to the S&P 500.

Takeaways

• The market had an extremely bearish reaction to TTD's report, driven entirely by the management change, not the financial performance.
• This creates a major disconnect between the company's solid operational results and its stock price.
• This could be an overreaction, but investors should be cautious as the market is pricing in significant uncertainty or a deeper issue signaled by the CFO's departure.

Rocket Lab (RKLB)

• The host is personally invested in the company.
• The stock was extremely volatile after earnings, initially jumping +7% before reversing to fall -7%, and later settling to be roughly flat.
• Earnings Results (Mixed):
  • EPS Miss: Reported a loss of 13 cents per share versus 11 cents expected. The loss widened 63% year-over-year, showing a move away from short-term profitability.
  • Revenue Beat: Revenue beat expectations by 7% and grew 36% year-over-year.
• Guidance: The company guided for a record Q3 with revenue between $145 million and $155 million.
• Neutron Rocket: The company noted "steady progress" on its reusable Neutron rocket. No firm launch date was given, but they announced an opportunity for retail shareholders to attend the opening event of the Neutron launch site in Virginia.
• The host described the quarter as "good" but not "blockbuster," and noted that long-term investors are more focused on the progress of Neutron than quarterly earnings.

Takeaways

• The sentiment is neutral. Strong revenue growth is a positive, but widening losses are a concern for the market.
• The long-term investment thesis remains entirely dependent on the successful development and launch of the Neutron rocket. Quarterly earnings are more of a progress report on that journey.
• The stock's muted final reaction suggests the report didn't significantly change the long-term story for better or worse.

Bitcoin (BTC) & Ethereum (ETH)

• Bitcoin (BTC) was moving higher, getting above $117,000 (This appears to be a slip of the tongue, likely meaning $117,000 on a different scale or simply meaning $117k, but the number was stated). It was noted as having reclaimed the $117k level.
• Ethereum (ETH) was trading just under $3,900 and was noted to be "trying to go for 4k," which has been a "weird psychological resistance" level.
• Catalyst: The crypto market was reportedly being "fueled by Trump allowing 401ks to now have crypto and private investments."

Takeaways

• The sentiment for crypto is bullish, with positive price momentum.
• A potential political catalyst is the move to allow crypto investments within 401k retirement accounts, which could unlock a significant new source of capital for the asset class.
• For Ethereum, breaking and holding the $4,000 level is seen as an important psychological milestone.

SoundHound AI (SOUN)

• The stock was up around 8-10% after hours.
• Earnings Results (Mixed):
  • EPS Miss: Reported a wider-than-expected loss of 19 cents per share versus the 10 cents loss the street wanted.
  • Revenue Beat: Revenue came in at $42.7 million.
• Raised Guidance: The company raised its full-year revenue outlook to between $160 million and $178 million.
• Business Update: The CEO noted a shift in the market, stating that restaurants are now proactively seeking out their AI automation services ("they're knocking on our doors"). They announced new wins with Red Lobster and IHOP.

Takeaways

• The market is focused on the revenue beat and raised guidance, overlooking the miss on profitability. This is a bullish signal.
• The commentary from the CEO suggests accelerating adoption of its AI voice technology in the restaurant sector, which is a key part of its growth story.
• The stock is rewarding top-line growth and future potential over current profitability.

Block (SQ)

• The stock was up significantly after hours, rising between 7% and 12%.
• There was conflicting information on the earnings results in the transcript. An initial report stated a beat on top and bottom lines. A later, more detailed report stated:
  • EPS Miss: $0.62 vs $0.69 expected.
  • Revenue Miss: $6.05 billion vs $6.3 billion expected.
  • Bitcoin Revenue Miss: $2.14 billion vs $2.48 billion expected.
  • GPV (Gross Payment Volume) Beat: Came in slightly ahead of estimates.
• Despite the apparent misses, the host noted that "investors are pretty bullish," with the stock up strongly.

Takeaways

• There is a disconnect between the reported headline numbers (misses) and the market's bullish reaction.
• Investors may be focusing on a specific metric not highlighted, like the GPV beat, or other details in the report that signal underlying strength in the core business.
• This suggests the headline numbers don't tell the whole story, and the market is optimistic about the company's direction.

Other Notable Mentions

• UnitedHealth Group (UNH): The host considers the stock "cheap for a reason" due to the DOJ investigation. While it could be a good investment on a five-year time horizon with a potential path back to $400, the host sees better, less uncertain opportunities in tech, like NVIDIA. The risk is "multiple compression," where the market permanently assigns it a lower valuation.

• Tesla (TSLA): The stock was trading around $321-$322. The biggest news was the decision to disband the Dojo supercomputer team to rely on NVIDIA and AMD. This is seen as a negative for Tesla's vertical integration story but a major positive for NVIDIA.

• MP Materials (MP): The stock was up 11% after a beat on both revenue and EPS. The company is seen as a strategic play on rare earth minerals, with investments from the Department of Defense (DOD) and Apple. The host notes the valuation is "a bit aggressive" at a 55x price-to-sales multiple.

• Absci Corp (ABCL): The stock was up 4% after beating on revenue and EPS. The host describes this as a high-risk, high-reward investment that is either a "100X or it's zero." For this type of stock, the quarterly earnings numbers are "largely irrelevant" compared to the progress on its drug development platform.

• Take-Two Interactive (TTWO): The stock was up after a large beat on EPS and a beat on revenue. The company confirmed the release date for its highly anticipated game, Grand Theft Auto 6, for May 26, 2026.

• Pinterest (PINS): The stock was down 10-12% despite what seemed like good numbers: 17% revenue growth and record users, with Gen Z now making up half of the user base. The street had a bearish reaction, suggesting the results were not good enough to meet high expectations.

• Twilio (TWLO): The stock was down 9% or more after hours despite reporting 13% year-over-year revenue growth and positive income from operations. The negative reaction was similar in nature to TTD's, though no specific reason was given.