NVIDIA Fallout, Anthropic IPO and Hot CPI Hit Markets

NVIDIA

Across the shows: 94 speakers in other episodes, 75 bullish and 50 bearish calls, past 30 days

• Josh Brown · Ritholtz Wealth ManagementUncertain

  Huang's conduct is a mess, but he should survive; board removal is not warranted absent a bombshell.

  Brown calls Huang's conduct horrible judgment that will bring investigations, congressional scrutiny and politicization, so investors are derisking and the stock will not get better soon. Leverage on long and short tech positions and programmatic trading amplify moves, turning a 4% move into 7%. He is a twelve-year shareholder who has sat through 70% drawdowns and sees Huang as part of the bull case. Unless a bombshell shows Huang knowingly broke rules with other countries, he does not think the board should remove him; he expects a messy, ugly process but a positive resolution eventually.

  “I'm a twelve year shareholder in this situation. I've been through 70% drawdowns along the way. ... I don't think the move is to get rid of him for the board of directors.”at 2:14

• Rob Sechan · NewEdge WealthBullish

  Nvidia's selloff is a governance discount, not a demand problem; CUDA moat survives Huang; firm is topping up.

  Sechan says Nvidia would probably be worth less without Huang, one of the most important figures in the industry, but CEOs get replaced successfully at Apple, Microsoft and Alphabet. The irreplaceable asset is CUDA, the AI development architecture every developer learned on and every model was built on, and it only runs on Nvidia chips, so it does not leave with the CEO. The market sold the single stock rather than AI broadly. He sees a governance discount, not a demand discount, with no change in demand, and the selloff may even help other AI suppliers gain pricing power. Nvidia still gets 50 cents of every AI dollar. His firm is slightly underweight and he is topping up, while noting there is depth in the organization even if no bench has taken over yet.

  “we're slightly underweight in our portfolios right now, NVIDIA, but I wanted to top that up... this is a governance discount. It is not a demand discount. We are not seeing any changes in demand.”at 6:57

• Joe Terranova · Virtus Investment PartnersUncertain

  Nvidia's selloff is quant-driven price action, not fundamentals; analyst buy ratings unchanged at 78%.

  Terranova argues Nvidia is not really a momentum stock on price: it is down about 20% over six months and roughly unchanged since July 2025. Analyst buy ratings held at 78% and the 12-month target only moved from $3.24 to $3.20. Calls with a large high-frequency trader indicated the selling was driven by pure price action rather than fundamentals, and the stock is near its 52-week low of $164.27. A break below that level would push more quant, non-discretionary capital to the sidelines. He says the majority of the selling came from systematic trading over the prior 24 hours, and he does not know the ultimate outcome.

  “The stock over the last six months is down, like, 20%. If you go back to 07/15/2025, the stock is basically unchanged.”at 12:48

Anthropic

Across the shows: 108 speakers in other episodes, 143 bullish and 89 bearish calls, past 30 days

• Josh Brown · Ritholtz Wealth ManagementBullish

  Anthropic's IPO should price near $1.2–1.3T rather than $2T; a lower price allows an aftermarket pop.

  Brown says the first valuation was $1.5 to 2 trillion and the company is now zeroing in on $1.3 trillion. The investment banks' syndicate sets the IPO price as a proxy for what secondary buyers will pay. Coming out at $2 trillion and dropping 40% would be bad, but pricing at $1.2 to 1.3 trillion lets the stock pop in the aftermarket. That outcome benefits employees, venture capitalists, executives, underwriters, secondary buyers and retail. He does not think it puts a floor under neoclouds like CoreWeave, but he wants to see the deal happen.

  “Guess who sets the price? ... It's better if it comes out at 1.2, 1.3, and then it can pop in the aftermarket. The employees win... Nobody wants to see two.”at 24:07

• Rob Sechan · NewEdge WealthBullish

  Anthropic is generational; $10B run-rate added in a month and 900% retention make $1.4T defensible.

  Sechan calls Anthropic the best barometer for the AI trade at this moment and says it is a generational company, like SpaceX was. It added $10 billion in new run rate in one month. A $1.4 trillion valuation may seem like a lot, but the run rate is tough to ignore, and he says the IPO is about underwriting contracts rather than a dream. He cites 75% enterprise revenue, nearly 12,000 customers spending $100,000 a month, and 900% net revenue retention, meaning customers spend about nine times more one year later. He notes his firm is a big customer, which does not make him a holder.

  “This is generational company, just like SpaceX was. $10,000,000,000 in new run rate in one month. While 1,400,000,000,000 may seem like a lot, that run rate's tough to ignore.”at 25:55

• Joe Terranova · Virtus Investment PartnersBullish

  Anthropic offers decent value in the $70s given fast recurring-revenue growth; free cash flow positive by 2030.

  Terranova says he is a fan and that the $70s share range offers decent value based on annual recurring revenue and how fast that recurring revenue is growing, which he cites up to $81 billion. He points to a Goldman Sachs report that projects Anthropic will be free cash flow positive in 2030, which he calls pretty fast.

  “I'm a fan. In the seventies, it's... There's decent value based on... the annual recurring revenue and the growth of the recurring revenue up to 81,000,000,000. Read the Goldman Sachs report. 2030, free cash flow positive.”at 27:04

Delta Air Lines

Across the shows: 6 speakers in other episodes, 6 bullish and 1 bearish calls, past 30 days

• Josh Brown · Ritholtz Wealth ManagementBullish

  Delta is in great shape and could become a triple-digit stock; Brown is long and expects a strong Q4.

  Brown says Delta's business is in great shape and he believes in its strategy of catering to the upper end of the K-shaped economy. He expects a Q4 blowout and sees the stock testing resistance around $92 to $93 multiple times, with a potential breakout. Oil is the wild card: a renewed conflict in the Gulf of Hormuz would knock airlines down, but he thinks that would be temporary. Rothschild also says oil coming down helps airlines, and Delta's refinery offers diversification.

  “Delta's business is in great shape. I believe in the strategy of catering to the upper end of the k[-shaped economy], and I think this will be a triple digit name I am long personally.”at 30:42

• Joe Terranova · Virtus Investment PartnersBullish

  Delta is the clear winner, gaining domestic and international share and the airline to own on momentum.

  Terranova agrees with Brown and calls Delta the clear winner among airline carriers. He says Delta has captured significant market share both domestically and internationally, and he describes it as the one name investors want to own for momentum.

  “Yeah. I agree with that. I think Delta's the clear winner. They've captured significant market share domestically and international.”at 31:22

Broadcom

Across the shows: 9 speakers in other episodes, 8 bullish and 5 bearish calls, past 30 days

• Rob Sechan · NewEdge WealthBullish

  Broadcom benefits as Nvidia stumbles via custom hyperscaler chips and networking; AI build-out exposure is strong.

  Sechan thinks Broadcom will benefit from many of Nvidia's problems because of its custom chips for hyperscalers. Broadcom plays both sides, offering custom hyperscaler chips and data center networking software, and is present throughout the AI build-out, while Nvidia sits at the top of the stack. The stock was up 11% week to date, with AMD up 14%, which he reads as a bet that the build-out continues even if Nvidia does not. He sees Broadcom's AI build-out exposure as strong as anyone's.

  “I think this is a company that is going to be a beneficiary for many woes in NVIDIA because of the custom chips that they make.”at 13:53

Amazon.com

Across the shows: 46 speakers in other episodes, 59 bullish and 10 bearish calls, past 30 days

• Josh Brown · Ritholtz Wealth ManagementBullish

  Amazon is the best hyperscaler this year and up 32 points off its low; Brown holds it.

  Brown says he liked Amazon before earnings and it has since rallied 32 points off its low. He calls it the best of the hyperscalers on the year, and says people invested in the AI theme own Microsoft and Amazon, not only Nvidia.

  “Now the stock is up 32 points off its low... It's the best of the hyperscalers on the year.”at 16:59

GE Vernova

Across the shows: 6 speakers in other episodes, 10 bullish and 1 bearish calls, past 30 days

• Joe Terranova · Virtus Investment PartnersBullish

  GE Vernova's turbine backlog looks protected, with about 80% of its slots sold through 2032.

  Terranova agrees with Sechan that a procurement problem at SoftBank is not a power problem, and says that for GE Vernova specifically about 80% of its slots are sold through 2032. He argues that cancellations would have to happen for that to be a problem, and that hyperscalers would likely step in to buy any freed slots. He sees the bigger issue as SoftBank's write-down and what it signals about AI investment.

  “80% of their slots are sold through 2032. And you would have to tell me that if there's cancellations, that the hyperscaler is gonna step in and say, okay. We're gonna buy those slots.”at 18:45

SoftBank Group

Across the shows: 2 speakers in other episodes, 0 bullish and 3 bearish calls, past 30 days

• Joe Terranova · Virtus Investment PartnersBearish

  SoftBank's $3.7B writedown signals sovereign funds' AI data center bets cooling as valuations fall.

  Terranova says SoftBank taking a $3.7 billion writedown is discouraging and indicative of how sovereign wealth funds have invested in US data center buildouts and many AI trades as valuations start to come down. It is a sign of the overall environment for AI. SoftBank's statement cited a revised power generation equipment procurement strategy, a loss on nonrefundable advanced payments and changes to signed contracts.

  “they take a $3,700,000,000 write down. And I think they are indicative... of how sovereign wealth funds are invested in The US, in the data center story build out, in a lot of the AI trades when the valuations are beginning to come down.”at 18:45

CoreWeave

Across the shows: 89 speakers in other episodes, 25 bullish and 96 bearish calls, past 30 days

• Rob Sechan · NewEdge WealthBearish

  Neoclouds reliant on Nvidia financing will struggle while financially strong builders win the AI buildout.

  Sechan argues the market is a have and have-not market. Financially healthy players can finance the buildout and benefit, while those worried about financing from Nvidia, such as the neoclouds, will struggle. He says CoreWeave is among the companies likely to struggle.

  “Those that are gonna struggle gonna be the core weaves [CoreWeave] of the world. Those that are worried about getting financing from NVIDIA.”at 20:36

Vistra

Across the shows: 2 speakers in other episodes, 2 bullish and 0 bearish calls, past 30 days

• Rob Sechan · NewEdge WealthBullish

  Vistra's EBITDA is up 50% at 13x earnings; financially healthy power names can self-fund AI demand.

  Sechan argues the power space companies are incredible, and as part of the have side of a have and have-not AI market, they can finance the build-out. Vistra's EBITDA is up 50% year over year, it trades at 13 times earnings, and it is buying back stock and paying dividends. He says that financial health lets such companies drive shareholder value.

  “these companies are incredible. EBITDA for Vistra is up 50% year on year. It trades at 13 times earnings. They're buying back stock. They're paying dividends.”at 20:36

The Carlyle Group

• Josh Brown · Ritholtz Wealth ManagementBearish

  Carlyle faces a difficult environment like all PE and private credit firms; no rush to buy, though he stays invested.

  Brown agrees with UBS's downgrade of Carlyle to neutral and a cut in its target to $47 from $60, which doubts its growth profile and path to 2028 targets. He says the environment is hard for all private equity and private credit firms. Wealth management growth is slowing as individuals ask second and third questions about investing in private markets at size, and rates are a challenge for privately held companies and for investments in them. He remains a shareholder after a long time holding the stock but sees no race to buy it.

  “I actually agree with the call. I think it's going to be a difficult environment. It is that way for all private equity and private credit firms.”at 28:17

Ross Stores

• Joe Terranova · Virtus Investment PartnersBullish

  Ross Stores is capturing significant off-price share and is the better opportunity versus TJX.

  Terranova says the three names tell different stories, but Ross Stores is the better opportunity because it seems to be capturing significant market share in off-price retail. He argues that TJX has been struggling for six months and has probably diverted some equity flows to Target, which has had a 2026 revival. He says the story across the three names is really Ross and Target.

  “A little bit of a different story for each of these names. I think the better opportunity sits in Ross Stores. They seem to be capturing significant market share for off price.”at 29:06

The TJX Companies

Across the shows: 2 speakers in other episodes, 2 bullish and 1 bearish calls, past 30 days

• Joe Terranova · Virtus Investment PartnersBearish

  TJX has struggled for six months and is losing equity flows to Target; Ross is the better off-price bet.

  Terranova calls TJX a longtime favorite but says it has been struggling over the last six months. He thinks it has probably seeded some equity flows to Target, which has had a revival in 2026. Because of this, he sees Ross Stores as the better opportunity in off-price retail.

  “TJX, which has been a favorite name of mine over the last several years, it's been struggling over the last six months. I think it's probably seeded a little bit of the equity flows to Target.”at 29:06

Mastercard

Across the shows: 3 speakers in other episodes, 2 bullish and 1 bearish calls, past 30 days

• Rob Sechan · NewEdge WealthBullish

  Mastercard is a resilient-consumer beneficiary and a global spending tollbooth, and a sneaky inflation hedge.

  Sechan says his firm increased its Mastercard exposure in May and the stock is up 33% since that addition. He thinks the thesis is about being the beneficiary of a resilient consumer. About 90% of its card transactions happen outside China, making it a great tollbooth for global spending. As the cost of everything rises, it also acts as a sneaky inflation hedge.

  “We increased our exposure back in May. The stock is up 33% since that addition... They have 90% of card transactions outside of China. It's a great tollbooth for for global spending. Sneaky inflation hedge too.”at 29:53

Walmart

Across the shows: 19 speakers in other episodes, 16 bullish and 3 bearish calls, past 30 days

• Joe Terranova · Virtus Investment PartnersBullish

  Walmart and Costco are regaining momentum on tariff relief and dominant market share heading into the holidays.

  Terranova says Walmart and Costco have come back aggressively since Labor Day. He credits some relief on tariffs, but mainly the companies' significant market share, which is overwhelming relative to the rest of retail. He also cites a strong economy going into the holiday season.

  “It's really Walmart, Costco that have come back aggressively here, since Labor Day. They've come back, number one, benefiting from some relief as it relates to tariffs, but also really coming back in taking advantage of the significant market share that they have.”at 31:44

Hewlett Packard Enterprise Company

Across the shows: 3 speakers in other episodes, 2 bullish and 1 bearish calls, past 30 days

• Rob Sechan · NewEdge WealthBullish

  HPE is the plumbing for enterprise AI; doubled this year, near 10x earnings after a 30% drop.

  Sechan calls HPE a fantastic business that has doubled this year and still trades at 10 times earnings. It fell 30% from its October peak, which he sees as an opportunity. He describes it as the plumbing for the entire enterprise AI market: servers, storage and networking, unlike neocloud companies that borrow to build. It runs its own AI data centers and sells to hyperscalers.

  “It's doubled this year and still trades at 10 times earnings. It fell 30% from the October peak... It's the plumbing for the entire enterprise AI. This is not a neo cloud borrowing to build.”at 36:50

Palantir Technologies

Across the shows: 15 speakers in other episodes, 16 bullish and 2 bearish calls, past 30 days

• Josh Brown · Ritholtz Wealth ManagementBullish

  Palantir's revenue is up about 100%, making it the best fundamental story available.

  Brown cites Palantir's earnings or revenue growth of about 100% as the basis for its fundamental strength. He argues there is no better fundamental story than that. He suggests people often start with a view of quality and ignore price action, while his method looks at price first and then checks whether the fundamentals support it.

  “I think the earnings are up a 100% or revenues up a 100%. There's no better fundamental story than that.”at 38:18

AI: overall outlook

• Josh Brown · Ritholtz Wealth Management

  AI mega-caps are not one trade; year-to-date performance diverges widely, so investors are making rational calls.

  Brown argues that AI mega-caps are not one trade. Year to date, Nvidia is down substantially, Microsoft is up 12%, Alphabet up 8%, Amazon up 17%, Meta down 2%, Broadcom down 5% and Tesla down 16%. Investors are making rational decisions, not being driven by flows into the QQQ or other ETFs.

  “The AI mega caps are not one trade. If you actually look year to date, NVIDIA is down substantially. Microsoft is sitting on a 12% gain... Amazon up 17%. Meta down two. Broadcom down five. Tesla down 16.”at 14:53

• Joe Terranova · Virtus Investment Partners

  Since June, investors have rotated into higher-quality AI names like Amazon while neoclouds trade poorly.

  Terranova says the investor community has traded up into higher quality for the AI trade since the end of June, which is why Amazon and some other names are benefiting. Looking under the hood, the neoclouds are trading awfully, and he links the SoftBank news to weakness in that group.

  “I think that what has happened since the end of June is that the investor community has traded up into a higher quality for the AI trade. ... The neo clouds are trading awful.”at 17:33

Software & SaaS

• Joe Terranova · Virtus Investment Partners

  Software stocks still face many headwinds; the AI disruption threat is not over despite recent relief.

  Software names rallied after the midterms because the belief was that AI disruption would be slower than the street expected and that spending would be lower. Terranova says he has been on the bearish side of the software trade all along. He cites Anthropic's new Claude productivity tools as another example of the pressure, and says the all-clear has not sounded for companies like Adobe and Intuit.

  “I take the other side. I've been on the other side of the software trade all along. I still think there's a lot of headwinds in front of them, and this is just another example.”at 40:53

• Rob Sechan · NewEdge Wealth

  Entrenched software is too embedded in daily work to be easily rebuilt by AI rivals.

  Sechan argues that some software companies are so embedded in everyday work that it is hard to reengineer the systems built on top of them. This suggests incumbents can resist AI-driven replacement, which runs against the disruption fears raised by Anthropic's new tools.

  “Some of these software companies are so endemic in the things that we do every day. It's kinda tough to... reengineer the plumbing on top of those things.”at 41:43

US stock market outlook

• Josh Brown · Ritholtz Wealth Management

  Market breadth is healthy and not dependent on Nvidia: energy leads and most stocks trend up.

  Brown says money is being made elsewhere: 69% of S&P 500 stocks are above their 50-day moving average, two-thirds of the market in a good short-term trend. Energy is the best sector this year, up 37%, and communication services is the only sector down, largely due to Meta and Netflix. He concludes that the sun does not rise and set on Nvidia or any other AI giant, so a bad event at one company should not disrupt a well-diversified portfolio.

  “There's money being made. 69% of S and P 500 stocks are above their fifty day. That's two thirds of the market in a pretty good short term trend.”at 15:52

AI chips & semiconductors

• Josh Brown · Ritholtz Wealth Management

  Memory and storage stocks' best trade of 2026 is unwinding as the market doubts 2027–28 build pace.

  Brown notes that Micron is still up 150%, Dell up 163% and SanDisk up 250% this year, but he thinks the best trade of 2026 is being unwound. He says the market never believed the pace of 2024 and 2025 would continue into 2027 and 2028. Stocks like these that were thought to be bargains in October may no longer be, because the political calculus could change the trajectory of AI buildout.

  “Micron is still up a 150% on the year... But right before our eyes, we're seeing the best trade of 2026 being unwound.”at 19:59

AI infrastructure & data centers

• Rob Sechan · NewEdge Wealth

  Midterm-driven political shifts change the timing of AI buildout next year, not final compute demand.

  Sechan says the political calculus around the midterms changes the timing of how much compute gets built next year, but not final demand. The amount of compute needed is still there, and companies that can finance it, with political connectivity, will benefit. He says it is a have and have-not market and that the pie is narrower but not as narrow as suggested, because many financially healthy businesses can still secure financing.

  “It's gonna change the timing. It is not gonna change final demand.”at 20:36