$NVDA · Jose Najarro Stocks · 2026-10-30

We also got some recent news impacting Nvidia and them kind of backstopping and providing potentially capital for certain Neocloud players. I do want to start with Nvidia and NScale and how they're financing some they're potentially supporting some financing of new capacity.

So the real first kind of push that we want to see is this Nvidia report. So latest reports coming in from I believe the information was that Nvidia may guaranteed billions of nscale debt for a 460 megawatt anthropic projects.

So final terms and exposures remain unconfirmed.

Now the market is not liking this right. So and Nvidia has previously invested in neocloud companies. I do believe they are an investor of NScale.

And Nvidia has invested in them, right? But it seems like right now, one of the big fears is credit is drying up. And if credit is drying up, and that's one of the fears that we've seen with AI Neoclouds the past week or two, and now we're getting this report, it gives confirmation that that might be true.

Again, right now we don't know about the final terms. We don't know about the exposure Nvidia comes, but the market is still going with ask questions later. If this seems fishy, we're going to punish somewhat of the industry.

Now, another thing I would say we should kind of remember is Nvidia has talked about different ways that they are planning to help fund and finance the overall NeoCloud market. uh they're sometimes lending money and if they do lend money they will have some form of revenue sharing which is extremely positive for them in the market that right now you have GPU pricing continue to go up and they have other teams that are favorable for Nvidia.

So if Nvidia does believe that this AI market will continue it's not necessarily the worst thing to kind of see this play out. Now, the big issue, the big issue is that a 460 megawatt project is probably going to run tens and tens of billions, potentially 20 to30 billion.

The market is asking Nvidia, and maybe we hear about this during uh future earnings, how much are you backing?

Some other people might say, Jose, doesn't Nvidia have tons and tons of free cash flow? What else are they going to be doing with their money? To be honest, I don't know where I'm at right now.

I would love to get more information on the final terms, get more confirmation from Nvidia, right? As these are just unconfirmed reports, but if we see form of revenue sharing and still pretty interesting numbers in forms of interest, if Entropic is still kind of going with this partner as well, if it is an anthropic system, right, if if the final system is going to be for Anthropic's inference needs, we just saw their S1 numbers.

Enthropic is doing fine, right? and they're going to have the ability to be able to pay this at least in the foreseeable future. So, not necessarily bearish on it right now.

I am in the camp where Nvidia has a lot of cash at hands and as long as they're not funding it right and they're not backing everything completely, I don't think it's necessarily the worst thing.

Now, again, Nvidia has kind of multiple roles here with Nscale. They are the suppliers. They are an investor. They're also a customer in the form of backs stop that they do with other NeoCloud players and they have already been a guaranter for I don't even know if that's how you pronounce it, but they've also kind of guaranteed certain debt in the past for a data center in Texas up to $860 million lease rent.

So, this wouldn't be the first time Nvidia is doing this for NScale.

And they say again, we see that they are an investor of them and they probably see the demand that's out there that's like, hey, let's just make sure they're able to build and build because once they do, they're going to have that revenue coming into them.

But I can see why the bears would also be against something like this.