Locator: 49150NVIDIA.
Updates
September 20, 2025: Nvidia’s $5 billion won’t “save” Intel. Link here.
Original Post
Nvidia: Jensen Huang is not through buying; he just spent $900
million (~ $1 billion) to hire Enfabrica CEO, license AI startup's
technology; link here.
- Efabrica's technology: can connect more than 100,000 GPUs together;
- currently, Nvidia's racks come with 72 GPUs installed working together;
- e.g., the kind of system announced by Microsoft today: a $4 billion data center in Wisconsin;
- Microsoft's Wisconsin AI data center, part of a $7.3 billion campus in Mount Pleasant, connects its servers with fiber optic cables . The facility is built to operate as a single AI supercomputer, and the vast scale and speed requirements of AI workloads necessitate fiber over traditional copper links.
- While the specific provider for the Wisconsin data center's fiberoptic cables isn't directly stated, the partnership between Microsoft and Lumen Technologies for next-generation AI infrastructure indicates Lumen is a likely key supplier for Microsoft's network needs, including those at the Wisconsin facility.
- Lumen has reserved a portion of Corning's fiber-optic cable production to support AI-driven applications, and their agreement will help meet the surging demand from large data centers like Microsoft.
- Lumen Technologies and Corning are collaborating and have established a
supply agreement where Corning will provide Lumen with its
next-generation optical fiber and cable to expand Lumen's network
infrastructure for high-bandwidth applications, particularly for
Artificial Intelligence (AI) data centers. Corning's innovative,
fiber-dense cable system allows Lumen to install significantly more
fiber in the same conduit, increasing network capacity and preparig
Lumen to support major cloud data center clients.
Market: I'll post more later tonight. Pressed for time right now due to family commitments, but three things:
- I couldn't be happier about how the market did today;
- CNBC "Fast Money" panel attributed the US stock market action due to the quarter-basis-point cut; they were completely wrong; I'll explain later;
- I was completely wrong regarding my earlier comments about the Nvidia-Intel deal
- I can't recall if I posted that on the blog or if my comments were in sidebar (e-mail) discussion with a reader; regardless, I'll talk about that later, also
- for now, Jim Cramer had the best explanation during his opening on "Mad Money," CNBC, although more can be added.
Intel-Nvidia: Market Watch, link here.
Different styles:
- Pat Gelsinger: looking to sell parts of Intel to raise badly needed cash to save company;
- Lip-Bu Tan: venture capitalist; one of the best in the world; former Intel executive; raising money by offering stakes in the company:
- SoftBank: $2 billion, August, 2025
- Trump: $8.9 billion stake, August, 2025 (no new money; Intel had already received the money)
- Intel: $5 billion, September, 2025
Cramer:
- $5-billion deal:
- did not mention "foundry"
- focused on server and PC (think "Intel inside," #1 competitor: AMD)
Cramer:
- doesn't guarantee survival of Intel
- Intel still needs to execute
- remains a huge challenge
- at this point, Nvidia's stake is mostly a huge "stamp of approval" supporting President Trump
- but, long term, Nvidia widens its strategic footprint
- currently, core competency -- GPUs for hyperscalers
- stake in Intel: consumer electronics (PCs) and servers (retail and commercial)
Good news:
- supports the view
- that the fourth industrial revolution (AI, large data centers, hyperscalers) is real;
- that the revolution is not hyperbole, not a bubble, not hype
- winners and losers not settled
- still very, very early
- plenty of time to methodically invest in the fourth industrial revolution
SCCO: what did SCCO do today? Up slightly. Rose with the market but not by much. If one needs cash to do it, is time to sell a bit of SCCO and buy LUMN?
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Disclaimer
Brief
Reminder
Briefly:
- I am
inappropriately exuberant about the Bakken and I am often well out front
of my headlights. I am often appropriately accused of hyperbole when it
comes to the Bakken.
- I am inappropriately exuberant about the US economy and the US market.
- I am also inappropriately exuberant about all things Apple.
- See disclaimer. This is not an investment site.
- Disclaimer:
this is not an investment site. Do not make any investment, financial,
job, career, travel, or relationship decisions based on what you read
here or think you may have read here. All my posts are done quickly:
there will be content and typographical errors. If something appears wrong, it probably is. Feel free to fact check everything.
- If anything on any of my posts is important to you, go to the source. If/when I find typographical / content errors, I will correct them.
- Reminder: I am inappropriately exuberant about the Bakken, US economy, and the US market.
- I am also inappropriately exuberant about all things Apple.
- And now, Nvidia, also. I am also inappropriately exuberant about all things Nvidia. Nvidia is a metonym for AI and/or the sixth industrial revolution.
- I've now added Broadcom to the disclaimer. I am also inappropriately exuberant about all things Broadcom.
- Longer version here.
