Daily News 19

Tag: AI data center

  • Jim Cramer Predicts NVIDIA (NASDAQ:NVDA) Share Price Movement After Anthropic CEO Remarks

    Jim Cramer Predicts NVIDIA (NASDAQ:NVDA) Share Price Movement After Anthropic CEO Remarks

    NVIDIA Corporation (NASDAQ: NVDA) returned to the spotlight this week after prominent AI leaders called for a slowdown in development, sparking fresh debate over the chipmaker’s near-term trajectory. The company’s graphics processing units (GPUs) remain the backbone of AI data-center infrastructure, and the latest commentary from CNBC host Jim Cramer underscored the tension between short-term sentiment and long-term demand.

    Cramer on Amodei’s Remarks and NVIDIA’s Stock Reaction

    Reacting to Anthropic CEO Dario Amodei’s appeal for a development pause, Cramer took to social media to frame the market’s response:

    “Oh, and yes, Dario’s comments send Nvidia’s stock down four and then it works its way lower and then stabilizes. Yes, it’s a buy. But let it come down. The buyback’s not big enough. This stuff now happens in what seems like slow motion for me…”

    The remarks align with Cramer’s broader stance over recent months, during which he has repeatedly expressed frustration with NVIDIA’s share-price weakness while maintaining a bullish long-term outlook. He characterized any pullback triggered by Amodei’s comments as temporary.

    Blackwell Demand and a $2 Trillion Order Backlog

    Underpinning that optimism is unprecedented demand for NVIDIA’s next-generation Blackwell GPUs. In March, CEO Jensen Huang revealed that the company’s initial estimate of 3.6 million units significantly understated actual requirements. The scale of interest was further quantified in the second-quarter earnings release, which disclosed an order backlog exceeding $2 trillion.

    Explosive Revenue Growth Driven by Data-Center Sales

    The AI boom continues to fuel exceptional financial performance. Second-quarter revenue surged 106% year-over-year to $96.22 billion, with the data-center segment contributing $83.7 billion of that total. This concentration highlights NVIDIA’s dominant position in the accelerated-computing market.

    Margin Pressure from a Historic Memory Shortage

    Growth, however, is colliding with a severe global memory shortage. While Q2 gross margins held at 75%, the company guided for a sequential decline to 74% in Q3 and projected a further slide to between 71% and 72% in Q4. The tightening supply of high-bandwidth memory (HBM) is a primary driver of the compression.

    Capacity Constraints May Limit Upside Surprises

    Analysts at Seaport Global have cautioned that NVIDIA’s sold-out production capacity could restrict its ability to deliver positive revenue surprises in coming quarters. With the revenue base resetting at higher levels, the incremental upside from additional supply becomes increasingly difficult to achieve.

  • Retirees Sue Fund Linked to Public Dogecoin Miner Z Squared

    Retirees Sue Fund Linked to Public Dogecoin Miner Z Squared

    Z Squared, a publicly traded company that acquired Dogecoin mining rigs from a fund advertising 28% annual returns, is contending with SEC enforcement actions, a seven-figure lawsuit from retirees, and a stock price that has fallen 76% over the past year.

    Retirees Sue Broad Street Global Management

    Retirees Paula and Stephen Darby, both 77 years old, filed suit against Broad Street Global Management, LLC, BroadStreet, Inc., Steven Baldassarra, and Joseph Baldassarra in Miami federal court on September 4. The court issued summonses the following day. The Darbys allege that the Baldassarras are trying to steal over half a billion dollars from their own investors, including the Darbys’ approximate $1,415,373.

    Note: Anyone can make allegations in a civil lawsuit, which are not necessarily indicative of wrongdoing. Readers should not interpret initial claims by plaintiffs seeking money as accurate or probable.

    SEC Enforcement Action

    In January 2025, the SEC sued Broad Street and its managers, alleging the group collected more than $1 billion from over 1,000 investors. The name “Broad Street” invokes the prestige of, but is unrelated to, the financial district street in downtown New York. Investor money was supposed to fund hotels, custom home construction, and a South Carolina lagoon resort promising perpetual income at rates of return never seen before. Disturbingly, Broad Street’s crypto mining division took in about $199 million after targeting 28% annual returns. A court-appointed monitor has overseen the company since April 2025, a few months after the SEC enforcement action.

    SPAC Merger and Valuation Concerns

    Despite ongoing SEC proceedings, the mining arm went public via a blank-check holding company merger in April 2026. The combined entity trades on Nasdaq under the symbol ZSQR. CEO David Halabu had worked with Broad Street since late 2021. Broad Street walked away with 41.5 million shares—about 81% of the company at closing—and distributed them to its members.

    The valuation attached to that merger was ambitious. A valuation firm ascribed the 9,800-machine fleet a value of $660 million, assuming every machine was a flagship Bitmain L9 working on Dogecoin. In reality, 8,228 of the machines were lower-specification L7 units. Z Squared’s own books tell a different story: the machines came onto the books at $12.4 million and carried a net value of $11.3 million at quarter end. In the second quarter of 2026, the fleet earned just $1.6 million, 88% of it from Dogecoin. Cost of revenue ran to 211% to generate that revenue, and the filing admitted, Our direct mining costs exceeded our mining revenue before giving effect to depreciation of our mining fleet. The quarterly net loss was $13.8 million. In other words, the company’s “$660 million” fleet of crypto miners generated money-losing revenue.

    Redemption Dispute and the Darbys’ Cash Demand

    Broad Street’s November 2025 redemption notice offered investors two payout options: cash within 180 days, or stock of a Cayman acquisition company. The Darbys chose cash, which was due on May 27, 2026. With the deadline five days away, according to the Darbys, Broad Street changed their selection to the Cayman company’s stock. The Darbys are now suing to recover their cash.

    Pivot to AI Data Center

    Z Squared has since pivoted toward artificial intelligence infrastructure. On Wednesday, the company closed an all-stock purchase of an Arkansas data center campus with eight megawatts of power. Halabu wrote to shareholders last month: I would rather earn your confidence with delivered megawatts than ask for it with words.

    Ongoing SEC Proceedings and Disclosure

    The SEC’s enforcement action remains ongoing. In the latest quarterly filing for ZSQR shareholders, the company disclosed: BSG Series CM, LLC, the entity from which we acquired our entire mining fleet, was our controlling stockholder immediately after the business combination and is a named defendant in SEC enforcement proceedings.

    Related: After crashing 99.9%, this BTC treasury stock crashed 99.9% again (Protos)