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SolHashira

Trade breathing, 8th Form

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- SolHashiraSolHashira
  ·03-03
  Top tier fud by people that have never stepped foot into a semiconductor foundry
  Has Nvidia Stock Peaked at $153? One Telltale Metric Offers a Decisive Answer.
  Are the best days now in the rearview mirror for the face of the artificial intelligence (AI) revolution?
  Has Nvidia Stock Peaked at $153? One Telltale Metric Offers a Decisive Answer.
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- SolHashiraSolHashira
  ·03-03
  L take by a guy that have never worked in data sci.
  Contrarian Opinion: President Trump's Pentagon Budget Reductions Will Benefit Palantir. Here's Why.
  The Pentagon has been tasked with finding ways to cut its budget by 8% -- or $50 billion per year -- over the next five years.
  Contrarian Opinion: President Trump's Pentagon Budget Reductions Will Benefit Palantir. Here's Why.
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- SolHashiraSolHashira
  ·03-02
  $NVIDIA(NVDA)$
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One Telltale Metric Offers a Decisive Answer.","url":"https://stock-news.laohu8.com/highlight/detail?id=2516685193","media":"Motley Fool","summary":"Are the best days now in the rearview mirror for the face of the artificial intelligence (AI) revolution?","content":"<html><body><ul>\n<li>\n<div>\n<svg fill=\"none\" height=\"15\" viewbox=\"0 0 14 15\" width=\"14\" xmlns=\"http://www.w3.org/2000/svg\">\n<path d=\"M14 5.58984C14 2.91016 11.8398 0.75 9.16016 0.75C6.50781 0.777344 4.375 2.91016 4.375 5.5625C4.375 6.10938 4.45703 6.60156 4.59375 7.09375L0.191406 11.4961C0.0546875 11.6328 0 11.7969 0 11.9609V14.0938C0 14.4766 0.273438 14.75 0.65625 14.75H3.71875C4.07422 14.75 4.375 14.4766 4.375 14.0938V13H5.46875C5.82422 13 6.125 12.7266 6.125 12.3438V11.25H7.13672C7.30078 11.25 7.51953 11.168 7.62891 11.0312L8.28516 10.293C8.55859 10.3477 8.85938 10.375 9.1875 10.375C11.8398 10.375 14 8.24219 14 5.58984ZM9.1875 4.25C9.1875 3.53906 9.76172 2.9375 10.5 2.9375C11.2109 2.9375 11.8125 3.53906 11.8125 4.25C11.8125 4.98828 11.2109 5.5625 10.5 5.5625C9.76172 5.5625 9.1875 4.98828 9.1875 4.25Z\" fill=\"#FFB81C\"></path>\n</svg>\n</div>\n<div>By one estimate, artificial intelligence (AI) can increase global gross domestic product by $15.7 trillion come 2030.</div>\n</li>\n<li>\n<div>\n<svg fill=\"none\" height=\"15\" viewbox=\"0 0 14 15\" width=\"14\" xmlns=\"http://www.w3.org/2000/svg\">\n<path d=\"M14 5.58984C14 2.91016 11.8398 0.75 9.16016 0.75C6.50781 0.777344 4.375 2.91016 4.375 5.5625C4.375 6.10938 4.45703 6.60156 4.59375 7.09375L0.191406 11.4961C0.0546875 11.6328 0 11.7969 0 11.9609V14.0938C0 14.4766 0.273438 14.75 0.65625 14.75H3.71875C4.07422 14.75 4.375 14.4766 4.375 14.0938V13H5.46875C5.82422 13 6.125 12.7266 6.125 12.3438V11.25H7.13672C7.30078 11.25 7.51953 11.168 7.62891 11.0312L8.28516 10.293C8.55859 10.3477 8.85938 10.375 9.1875 10.375C11.8398 10.375 14 8.24219 14 5.58984ZM9.1875 4.25C9.1875 3.53906 9.76172 2.9375 10.5 2.9375C11.2109 2.9375 11.8125 3.53906 11.8125 4.25C11.8125 4.98828 11.2109 5.5625 10.5 5.5625C9.76172 5.5625 9.1875 4.98828 9.1875 4.25Z\" fill=\"#FFB81C\"></path>\n</svg>\n</div>\n<div>Nvidia's Hopper and Blackwell graphics processing units (GPUs) have fueled a roughly $3 trillion increase in the company's market cap.</div>\n</li>\n<li>\n<div>\n<svg fill=\"none\" height=\"15\" viewbox=\"0 0 14 15\" width=\"14\" xmlns=\"http://www.w3.org/2000/svg\">\n<path d=\"M14 5.58984C14 2.91016 11.8398 0.75 9.16016 0.75C6.50781 0.777344 4.375 2.91016 4.375 5.5625C4.375 6.10938 4.45703 6.60156 4.59375 7.09375L0.191406 11.4961C0.0546875 11.6328 0 11.7969 0 11.9609V14.0938C0 14.4766 0.273438 14.75 0.65625 14.75H3.71875C4.07422 14.75 4.375 14.4766 4.375 14.0938V13H5.46875C5.82422 13 6.125 12.7266 6.125 12.3438V11.25H7.13672C7.30078 11.25 7.51953 11.168 7.62891 11.0312L8.28516 10.293C8.55859 10.3477 8.85938 10.375 9.1875 10.375C11.8398 10.375 14 8.24219 14 5.58984ZM9.1875 4.25C9.1875 3.53906 9.76172 2.9375 10.5 2.9375C11.2109 2.9375 11.8125 3.53906 11.8125 4.25C11.8125 4.98828 11.2109 5.5625 10.5 5.5625C9.76172 5.5625 9.1875 4.98828 9.1875 4.25Z\" fill=\"#FFB81C\"></path>\n</svg>\n</div>\n<div>A worrisome trend with a key operating metric -- not sales or net income -- spells trouble for Nvidia.</div>\n</li>\n</ul><div><p>For the better part of the last two-plus years, the stock market has been unstoppable. The 30-component <strong>Dow Jones Industrial Average</strong>, broad-based <strong>S&amp;P 500</strong>, and innovation-fueled <strong>Nasdaq Composite</strong> have all soared to numerous record-closing highs.</p><p>Investors haven't had to dig too deeply for the reasons behind this epic rally in equities. Everything from stock-split euphoria to the declining rate of inflation have helped lift the Dow Jones, S&amp;P 500, and Nasdaq Composite to uncharted territory.</p><p>But among these catalysts, none has been more directly responsible for lighting a fire under Wall Street than the rise of artificial intelligence (AI).</p><p>In <em>Sizing the Prize</em>, the analysts at PwC pegged AI as having the potential to add $15.7 trillion to the global economy by the turn of the decade. The capacity for AI-driven software and systems to reason, act, and evolve, all without the need for human intervention, gives this technology utility in most industries around the world.</p><div><img loading=\"lazy\" src=\"https://g.foolcdn.com/image/?url=https%3A%2F%2Fg.foolcdn.com%2Feditorial%2Fimages%2F809377%2Fstock-chart-crash-invest-broker-tablet-crypto-plunge-bubble-getty.jpg&amp;op=resize&amp;w=700\" srcset=\"https://g.foolcdn.com/image/?url=https%3A//g.foolcdn.com/editorial/images/809377/stock-chart-crash-invest-broker-tablet-crypto-plunge-bubble-getty.jpg&amp;w=300&amp;op=resize 300w, https://g.foolcdn.com/image/?url=https%3A//g.foolcdn.com/editorial/images/809377/stock-chart-crash-invest-broker-tablet-crypto-plunge-bubble-getty.jpg&amp;w=1000&amp;op=resize 1000w, https://g.foolcdn.com/image/?url=https%3A//g.foolcdn.com/editorial/images/809377/stock-chart-crash-invest-broker-tablet-crypto-plunge-bubble-getty.jpg&amp;w=2000&amp;op=resize 2000w\"/><p>Image source: Getty Images.</p></div><p>Although dozens of tech stocks have witnessed their shares soar as a result of the AI revolution, no company has been a more direct beneficiary than <strong>Nvidia</strong> <span>(NVDA<span> 3.97%</span>)</span>. Leading up to its latest round of operating results, Nvidia had packed on nearly $3 trillion in market cap since 2023 began, including hitting an all-time high of $153 per share on Jan. 7, 2025.</p><div><div><div></div></div></div><p>But while Nvidia's headline growth figures continue to look phenomenal, one telltale metric suggests Nvidia's best days are in the rearview mirror.</p><h2>Nvidia's hardware is what makes AI-accelerated data centers tick</h2><p>Market-leading businesses don't just add $3 trillion in market cap over the course of two years by accident. Nvidia's ascent is a reflection of its hardware being the clear top choice in high-performance data centers.</p><div></div><p>Last year, the analysts at semiconductor analysis firm TechInsights estimated that Nvidia accounted for 98% of the graphics processing units (GPUs) shipped to enterprise data centers in 2022 and 2023. Considering that Nvidia recorded $130.5 billion in full-year sales in fiscal 2025 (ended Jan. 26, 2025), and data center revenue made up more than 88% of net sales, it's fair to assume that Nvidia's Hopper (H100) chip and successor Blackwell GPU architecture are in high demand.</p><div><app :collapse_on_load=\"false\" :instrument_id=\"204770\" :show_benchmark_compare=\"false\" amount_change=\"4.77\" average_volume=\"244,832,040\" company_name=\"Nvidia\" current_price=\"124.92\" daily_high=\"125.09\" daily_low=\"116.40\" default_period=\"FiveYear\" dividend_yield=\"0.03%\" exchange=\"NASDAQ\" fifty_two_week_high=\"153.13\" fifty_two_week_low=\"75.61\" gross_margin=\"74.99\" logo=\"https://g.foolcdn.com/art/companylogos/mark/NVDA.png\" market_cap=\"$3.0T\" pe_ratio=\"42.50\" percent_change=\"3.97\" symbol=\"NVDA\" volume=\"896,629\"></app></div><p>Then again, assumptions aren't necessary. According to Nvidia's fiscal fourth-quarter filing, it \"delivered $11 billion of Blackwell architecture revenue.\" This is an <em>incredibly</em> quick ramp-up that demonstrates just how popular the company's hardware is with businesses wanting to be on the cutting-edge of AI innovation.</p><div><div><div></div></div></div><p>Nvidia's CUDA software platform has played a key role in assisting growth, as well. CUDA is the toolkit leaned on by developers that helps them maximize the computing potential of their GPUs, along with build large language models. Most importantly, it's keeping Nvidia's customers loyal to the brand.</p><p>But perhaps the prevailing reason Nvidia has seen its sales catapult from $27 billion to $130.5 billion in just two years is AI-GPU scarcity. When demand for a good or service overwhelms supply, it's normal for the price of said good or service to climb until demand tapers. Nvidia has been commanding up to $40,000 per Hopper chip and $30,000 to $40,000 for each Blackwell chip. This compares to <strong>Advanced Micro Devices</strong> selling its Instinct MI300X AI-accelerating chips for $10,000 to $15,000 per unit.</p><p>Otherworldly pricing power has lifted Nvidia's sales and profits, as well as boosted its margins.</p><div><img loading=\"lazy\" src=\"https://g.foolcdn.com/image/?url=https%3A%2F%2Fg.foolcdn.com%2Feditorial%2Fimages%2F809377%2Faccountant-balance-sheet-corporate-income-statement-earnings-calculator-getty.jpg&amp;op=resize&amp;w=700\" srcset=\"https://g.foolcdn.com/image/?url=https%3A//g.foolcdn.com/editorial/images/809377/accountant-balance-sheet-corporate-income-statement-earnings-calculator-getty.jpg&amp;w=300&amp;op=resize 300w, https://g.foolcdn.com/image/?url=https%3A//g.foolcdn.com/editorial/images/809377/accountant-balance-sheet-corporate-income-statement-earnings-calculator-getty.jpg&amp;w=1000&amp;op=resize 1000w, https://g.foolcdn.com/image/?url=https%3A//g.foolcdn.com/editorial/images/809377/accountant-balance-sheet-corporate-income-statement-earnings-calculator-getty.jpg&amp;w=2000&amp;op=resize 2000w\"/><p>Image source: Getty Images.</p></div><h2>Nvidia's best days may be in the rearview mirror</h2><p>If investors were to solely judge Nvidia stock based on its ability to leapfrog the consensus revenue and profit estimates of Wall Street analysts, there'd be no end in sight to its upside potential. But if these same investors were to dig beyond the headline figures, a different story would emerge.</p><div><div><div></div></div></div><p>During the fiscal fourth quarter, Nvidia precisely met its forecast generally accepted accounting principles (GAAP) gross margin of 73%. Though the company's gross margin has increased substantially from where things stood before the AI revolution took shape, a worrisome gross margin trend has emerged that spells trouble for Nvidia stock.</p><p>Here's a snapshot of Nvidia's GAAP gross margin since peaking during the fiscal first quarter of 2025:</p><ul><li><strong>Q1 2025</strong>: 78.4%</li><li><strong>Q2 2025</strong>: 75.1%</li><li><strong>Q3 2025</strong>: 74.6%</li><li><strong>Q4 2025</strong>: 73%</li><li><strong>Q1 2026</strong> (est.): 70.6%</li></ul><p><img src=\"https://media.ycharts.com/charts/35a37f3f1d54894fd04508e3f6fe0de9.png\"/></p><p>NVDA Gross Profit Margin (Quarterly) data by YCharts. The above chart doesn't yet reflect Nvidia's GAAP gross margin of 73% for the fiscal fourth quarter.</p><p>This persistent decline in gross margin is indicative of competition picking up in a big way. The includes domestic competitors like AMD, as well as overseas tech giants, such as China-based Huawei. As AMD and Huawei increase their GPU output, the AI-GPU scarcity that's afforded Nvidia phenomenal pricing power will wane.</p><div><div><div></div></div></div><p>But it's not just these direct competitors that are the problem. Many of Nvidia's top customers by net sales are internally developing AI chips to use in their data centers. This includes <strong>Microsoft</strong>, <strong>Meta Platforms</strong>, <strong>Amazon</strong>, and <strong>Alphabet</strong>. The Hopper and Blackwell GPUs maintaining their computing speed superiority likely won't be enough to save Nvidia from losing out on valuable data center space in future quarters to these less-costly and more readily available AI chips.</p><p>There are also ongoing concerns regarding China-based DeepSeek and its large language model chatbot. DeepSeek's R1 model is touted as being developed for a fraction of the cost of what Wall Street's most-influential businesses are spending on their AI-data centers, and it utilizes less-powerful Nvidia chips. There's the worry that select businesses may shift their orders to less-costly (i.e., lower margin) hardware.</p><p>The final dagger is that most businesses lack a well-defined game plan for how to optimize their AI solutions and/or generate a positive return on their AI investments. Investors overestimating the early stage adoption and utility of a next-big-thing technology is nothing new. Rather, it's the recipe that often leads to tech bubbles forming and bursting.</p><p>Based on Nvidia's GAAP gross margin trend over the last year, it looks increasingly likely that its stock has peaked at $153 per share.</p><div><div><div></div></div></div><div></div></div></body></html>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Has Nvidia Stock Peaked at $153? One Telltale Metric Offers a Decisive Answer.</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHas Nvidia Stock Peaked at $153? One Telltale Metric Offers a Decisive Answer.\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-03-03 16:51 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2025/03/03/has-nvidia-stock-peaked-at-153-metric-offer-answer/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>By one estimate, artificial intelligence (AI) can increase global gross domestic product by $15.7 trillion come 2030.\n\n\n\n\n\n\n\nNvidia's Hopper and Blackwell graphics processing units (GPUs) have fueled ...</p>\n\n<a href=\"https://www.fool.com/investing/2025/03/03/has-nvidia-stock-peaked-at-153-metric-offer-answer/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"NVDA":"英伟达","LU1951200564.SGD":"Natixis Thematics AI & Robotics Fund R/A SGD","LU0077335932.USD":"FIDELITY AMERICAN GROWTH \"A\" INC","BK4533":"AQR资本管理(全球第二大对冲基金)","LU2403377893.USD":"ALLIANZ SELECT INCOME AND GROWTH \"AM\" (USD) INC","LU0557290698.USD":"施罗德环球可持续增长基金","LU0265550359.USD":"BGF SYSTEMATIC GLOBAL ENHANCED EQUITY YIELD \"A2\" (USD) ACC","NVDS":"Tradr 1.5X Short NVDA Daily ETF","NVDD":"Direxion Daily NVDA Bear 1X Shares","SG9999014575.USD":"UOB UNITED INCOME FOCUS TRUST FUND (USDHDG) INC","LU2420271590.USD":"ALLIANZ SELECT INCOME AND GROWTH \"AT\" (USD) ACC","NVIW.SI":"NVDA 3xLongSG261006","IE00BN29S564.USD":"JANUS HENDERSON BALANCED \"A3\" (USD) INC","NVDU":"Direxion Daily NVDA Bull 2X Shares","LU1670628061.USD":"M&G (LUX) NORTH AMERICAN DIVIDEND \"A\" (USD) INC","LU0052756011.USD":"TEMPLETON GLOBAL BALANCED \"A\" (USD) INC","NVDX":"T-REX 2X LONG NVIDIA DAILY TARGET ETF","LU1868837300.USD":"CT (LUX) I AMERICAN FUND \"9\" (USD) ACC","LU2125909916.SGD":"Natixis Thematics Safety R/A SGD","NVDY":"YIELDMAX NVDA OPTION INCOME STRATEGY ETF","LU2265009873.SGD":"Eastspring Investments - Global Growth Equity AS SGD-H","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","LU2023250504.SGD":"Allianz Thematica Cl AMg DIS H2-SGD","LU2065170008.USD":"M&G (LUX) GLOBAL MAXIMA \"A\" (USD) INC","IE00BJLML261.HKD":"HSBC GLOBAL EQUITY INDEX \"HCH\" (HKD) ACC","LU0314106906.USD":"MANULIFE GF GLOBAL EQUITY \"AA\" (USD) INC","NVD3.UK":"LS 3X NVIDIA","LU0823434740.USD":"BNP PARIBAS US GROWTH \"C\" (USD) INC","LU0310799852.SGD":"FTIF - Templeton Global Equity Income A MDIS SGD","2NVD.UK":"2X NVIDIA ETP","NVDS.UK":"LS -1X NVIDIA","NVD2.UK":"2X NVIDIA ETP","BK4514":"搜索引擎","LU0175139822.USD":"AB FCP I Global Equity Blend A USD","IE0034235188.USD":"PINEBRIDGE GLOBAL FOCUS EQUITY \"A\" (USD) ACC","LU0466842654.USD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"A\" (USD) ACC","3NVD.UK":"LS 3X NVIDIA","LU1066053197.SGD":"HSBC GIF GLOBAL EQUITY VOLATILITY FOCUSED \"AM3\" (SGDHDG) INC","LU0320765059.SGD":"FTIF - Franklin US Opportunities A Acc SGD","LU1059921491.USD":"NORDEA 1 GLOBAL STABLE EQUITY \"HB\" (USDHDG) ACC","NVD":"GraniteShares 2x Short NVDA Daily ETF","LU1046421795.USD":"富达环球科技A-ACC","LU1699723380.USD":"ALLSPRING GLOBAL LONG/SHORT EQUITY \"AP\" (USD) ACC","SNVD.UK":"LS -1X NVIDIA","LU0786609619.USD":"高盛全球千禧一代股票组合Acc","LU1244550577.SGD":"FTIF - Franklin Global Multi-Asset Income A (Mdis) SGD-H1","LU1861220033.SGD":"Blackrock Next Generation Technology A2 SGD-H"},"source_url":"https://www.fool.com/investing/2025/03/03/has-nvidia-stock-peaked-at-153-metric-offer-answer/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2516685193","content_text":"By one estimate, artificial intelligence (AI) can increase global gross domestic product by $15.7 trillion come 2030.\n\n\n\n\n\n\n\nNvidia's Hopper and Blackwell graphics processing units (GPUs) have fueled a roughly $3 trillion increase in the company's market cap.\n\n\n\n\n\n\n\nA worrisome trend with a key operating metric -- not sales or net income -- spells trouble for Nvidia.\n\nFor the better part of the last two-plus years, the stock market has been unstoppable. The 30-component Dow Jones Industrial Average, broad-based S&P 500, and innovation-fueled Nasdaq Composite have all soared to numerous record-closing highs.Investors haven't had to dig too deeply for the reasons behind this epic rally in equities. Everything from stock-split euphoria to the declining rate of inflation have helped lift the Dow Jones, S&P 500, and Nasdaq Composite to uncharted territory.But among these catalysts, none has been more directly responsible for lighting a fire under Wall Street than the rise of artificial intelligence (AI).In Sizing the Prize, the analysts at PwC pegged AI as having the potential to add $15.7 trillion to the global economy by the turn of the decade. The capacity for AI-driven software and systems to reason, act, and evolve, all without the need for human intervention, gives this technology utility in most industries around the world.Image source: Getty Images.Although dozens of tech stocks have witnessed their shares soar as a result of the AI revolution, no company has been a more direct beneficiary than Nvidia (NVDA 3.97%). Leading up to its latest round of operating results, Nvidia had packed on nearly $3 trillion in market cap since 2023 began, including hitting an all-time high of $153 per share on Jan. 7, 2025.But while Nvidia's headline growth figures continue to look phenomenal, one telltale metric suggests Nvidia's best days are in the rearview mirror.Nvidia's hardware is what makes AI-accelerated data centers tickMarket-leading businesses don't just add $3 trillion in market cap over the course of two years by accident. Nvidia's ascent is a reflection of its hardware being the clear top choice in high-performance data centers.Last year, the analysts at semiconductor analysis firm TechInsights estimated that Nvidia accounted for 98% of the graphics processing units (GPUs) shipped to enterprise data centers in 2022 and 2023. Considering that Nvidia recorded $130.5 billion in full-year sales in fiscal 2025 (ended Jan. 26, 2025), and data center revenue made up more than 88% of net sales, it's fair to assume that Nvidia's Hopper (H100) chip and successor Blackwell GPU architecture are in high demand.Then again, assumptions aren't necessary. According to Nvidia's fiscal fourth-quarter filing, it \"delivered $11 billion of Blackwell architecture revenue.\" This is an incredibly quick ramp-up that demonstrates just how popular the company's hardware is with businesses wanting to be on the cutting-edge of AI innovation.Nvidia's CUDA software platform has played a key role in assisting growth, as well. CUDA is the toolkit leaned on by developers that helps them maximize the computing potential of their GPUs, along with build large language models. Most importantly, it's keeping Nvidia's customers loyal to the brand.But perhaps the prevailing reason Nvidia has seen its sales catapult from $27 billion to $130.5 billion in just two years is AI-GPU scarcity. When demand for a good or service overwhelms supply, it's normal for the price of said good or service to climb until demand tapers. Nvidia has been commanding up to $40,000 per Hopper chip and $30,000 to $40,000 for each Blackwell chip. This compares to Advanced Micro Devices selling its Instinct MI300X AI-accelerating chips for $10,000 to $15,000 per unit.Otherworldly pricing power has lifted Nvidia's sales and profits, as well as boosted its margins.Image source: Getty Images.Nvidia's best days may be in the rearview mirrorIf investors were to solely judge Nvidia stock based on its ability to leapfrog the consensus revenue and profit estimates of Wall Street analysts, there'd be no end in sight to its upside potential. But if these same investors were to dig beyond the headline figures, a different story would emerge.During the fiscal fourth quarter, Nvidia precisely met its forecast generally accepted accounting principles (GAAP) gross margin of 73%. Though the company's gross margin has increased substantially from where things stood before the AI revolution took shape, a worrisome gross margin trend has emerged that spells trouble for Nvidia stock.Here's a snapshot of Nvidia's GAAP gross margin since peaking during the fiscal first quarter of 2025:Q1 2025: 78.4%Q2 2025: 75.1%Q3 2025: 74.6%Q4 2025: 73%Q1 2026 (est.): 70.6%NVDA Gross Profit Margin (Quarterly) data by YCharts. The above chart doesn't yet reflect Nvidia's GAAP gross margin of 73% for the fiscal fourth quarter.This persistent decline in gross margin is indicative of competition picking up in a big way. The includes domestic competitors like AMD, as well as overseas tech giants, such as China-based Huawei. As AMD and Huawei increase their GPU output, the AI-GPU scarcity that's afforded Nvidia phenomenal pricing power will wane.But it's not just these direct competitors that are the problem. Many of Nvidia's top customers by net sales are internally developing AI chips to use in their data centers. This includes Microsoft, Meta Platforms, Amazon, and Alphabet. The Hopper and Blackwell GPUs maintaining their computing speed superiority likely won't be enough to save Nvidia from losing out on valuable data center space in future quarters to these less-costly and more readily available AI chips.There are also ongoing concerns regarding China-based DeepSeek and its large language model chatbot. DeepSeek's R1 model is touted as being developed for a fraction of the cost of what Wall Street's most-influential businesses are spending on their AI-data centers, and it utilizes less-powerful Nvidia chips. There's the worry that select businesses may shift their orders to less-costly (i.e., lower margin) hardware.The final dagger is that most businesses lack a well-defined game plan for how to optimize their AI solutions and/or generate a positive return on their AI investments. Investors overestimating the early stage adoption and utility of a next-big-thing technology is nothing new. Rather, it's the recipe that often leads to tech bubbles forming and bursting.Based on Nvidia's GAAP gross margin trend over the last year, it looks increasingly likely that its stock has peaked at $153 per share.","news_type":1},"isVote":1,"tweetType":1,"viewCount":260,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":409534939255424,"gmtCreate":1740993287646,"gmtModify":1740995120822,"author":{"id":"4203813526004392","authorId":"4203813526004392","name":"SolHashira","avatar":"https://community-static.tradeup.com/news/ccc95796b00f47e02e554fc93e7c9521","crmLevel":5,"crmLevelSwitch":0,"followedFlag":false,"idStr":"4203813526004392","authorIdStr":"4203813526004392"},"themes":[],"htmlText":"L take by a guy that have never worked in data sci.&nbsp;","listText":"L take by a guy that have never worked in data sci.&nbsp;","text":"L take by a guy that have never worked in data sci.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/409534939255424","repostId":"2516254414","repostType":2,"repost":{"id":"2516254414","kind":"highlight","pubTimestamp":1740943140,"share":"https://ttm.financial/m/news/2516254414?lang=&edition=full_marsco","pubTime":"2025-03-03 03:19","market":"fut","language":"en","title":"Contrarian Opinion: President Trump's Pentagon Budget Reductions Will Benefit Palantir. Here's Why.","url":"https://stock-news.laohu8.com/highlight/detail?id=2516254414","media":"Motley Fool","summary":"The Pentagon has been tasked with finding ways to cut its budget by 8% -- or $50 billion per year -- over the next five years.","content":"<html><body><ul>\n<li>\n<div>\n<svg fill=\"none\" height=\"15\" viewbox=\"0 0 14 15\" width=\"14\" xmlns=\"http://www.w3.org/2000/svg\">\n<path d=\"M14 5.58984C14 2.91016 11.8398 0.75 9.16016 0.75C6.50781 0.777344 4.375 2.91016 4.375 5.5625C4.375 6.10938 4.45703 6.60156 4.59375 7.09375L0.191406 11.4961C0.0546875 11.6328 0 11.7969 0 11.9609V14.0938C0 14.4766 0.273438 14.75 0.65625 14.75H3.71875C4.07422 14.75 4.375 14.4766 4.375 14.0938V13H5.46875C5.82422 13 6.125 12.7266 6.125 12.3438V11.25H7.13672C7.30078 11.25 7.51953 11.168 7.62891 11.0312L8.28516 10.293C8.55859 10.3477 8.85938 10.375 9.1875 10.375C11.8398 10.375 14 8.24219 14 5.58984ZM9.1875 4.25C9.1875 3.53906 9.76172 2.9375 10.5 2.9375C11.2109 2.9375 11.8125 3.53906 11.8125 4.25C11.8125 4.98828 11.2109 5.5625 10.5 5.5625C9.76172 5.5625 9.1875 4.98828 9.1875 4.25Z\" fill=\"#FFB81C\"></path>\n</svg>\n</div>\n<div>President Trump and Secretary of Defense Pete Hegseth hope to find tens of billions of dollars of spending they can cut from the U.S. defense budget.</div>\n</li>\n<li>\n<div>\n<svg fill=\"none\" height=\"15\" viewbox=\"0 0 14 15\" width=\"14\" xmlns=\"http://www.w3.org/2000/svg\">\n<path d=\"M14 5.58984C14 2.91016 11.8398 0.75 9.16016 0.75C6.50781 0.777344 4.375 2.91016 4.375 5.5625C4.375 6.10938 4.45703 6.60156 4.59375 7.09375L0.191406 11.4961C0.0546875 11.6328 0 11.7969 0 11.9609V14.0938C0 14.4766 0.273438 14.75 0.65625 14.75H3.71875C4.07422 14.75 4.375 14.4766 4.375 14.0938V13H5.46875C5.82422 13 6.125 12.7266 6.125 12.3438V11.25H7.13672C7.30078 11.25 7.51953 11.168 7.62891 11.0312L8.28516 10.293C8.55859 10.3477 8.85938 10.375 9.1875 10.375C11.8398 10.375 14 8.24219 14 5.58984ZM9.1875 4.25C9.1875 3.53906 9.76172 2.9375 10.5 2.9375C11.2109 2.9375 11.8125 3.53906 11.8125 4.25C11.8125 4.98828 11.2109 5.5625 10.5 5.5625C9.76172 5.5625 9.1875 4.98828 9.1875 4.25Z\" fill=\"#FFB81C\"></path>\n</svg>\n</div>\n<div>Given the Pentagon's history of failing audits and Trump's creation of the Department of Government Efficiency, it's not surprising to see the Pentagon receive some extra scrutiny.</div>\n</li>\n<li>\n<div>\n<svg fill=\"none\" height=\"15\" viewbox=\"0 0 14 15\" width=\"14\" xmlns=\"http://www.w3.org/2000/svg\">\n<path d=\"M14 5.58984C14 2.91016 11.8398 0.75 9.16016 0.75C6.50781 0.777344 4.375 2.91016 4.375 5.5625C4.375 6.10938 4.45703 6.60156 4.59375 7.09375L0.191406 11.4961C0.0546875 11.6328 0 11.7969 0 11.9609V14.0938C0 14.4766 0.273438 14.75 0.65625 14.75H3.71875C4.07422 14.75 4.375 14.4766 4.375 14.0938V13H5.46875C5.82422 13 6.125 12.7266 6.125 12.3438V11.25H7.13672C7.30078 11.25 7.51953 11.168 7.62891 11.0312L8.28516 10.293C8.55859 10.3477 8.85938 10.375 9.1875 10.375C11.8398 10.375 14 8.24219 14 5.58984ZM9.1875 4.25C9.1875 3.53906 9.76172 2.9375 10.5 2.9375C11.2109 2.9375 11.8125 3.53906 11.8125 4.25C11.8125 4.98828 11.2109 5.5625 10.5 5.5625C9.76172 5.5625 9.1875 4.98828 9.1875 4.25Z\" fill=\"#FFB81C\"></path>\n</svg>\n</div>\n<div>Considering how much of Palantir's revenue comes from contracts with the U.S. military and intelligence agencies, some investors expect that defense budget cuts will hit the company's financials.</div>\n</li>\n</ul><div><p>For much of the last year, any time investors got news related to <strong>Palantir Technologies</strong> <span>(PLTR<span> 0.18%</span>)</span>, that news was overwhelmingly positive. In 2024, the data analytics specialist's stock was the top performer in the <strong>S&amp;P 500</strong> <span><span>(SNPINDEX: ^GSPC)</span>. It was also added to the <strong>Nasdaq-100</strong> index, and institutional investors finally warmed up to a business they had previously viewed as too heavily reliant on U.S. government contracts. </span></p><p>However, as smart investors know, no stock can go up in a straight line forever. And Palantir just hit its first major snag in quite some time.</p><p>Over the last 10 days or so, shares of Palantir have cratered by 24%. The sell-off was linked to a series of orders out of the White House that spooked investors.</p><p>Let's explore the specifics surrounding Palantir stock right now, and I'll explain my contrarian view that the current sell-off is overblown.</p><div><app :collapse_on_load=\"false\" :instrument_id=\"343121\" :show_benchmark_compare=\"false\" amount_change=\"0.15\" average_volume=\"94,223,902\" company_name=\"Palantir Technologies\" current_price=\"84.92\" daily_high=\"85.18\" daily_low=\"78.58\" default_period=\"OneMonth\" dividend_yield=\"N/A\" exchange=\"NASDAQ\" fifty_two_week_high=\"125.41\" fifty_two_week_low=\"20.33\" gross_margin=\"80.25\" logo=\"https://g.foolcdn.com/art/companylogos/mark/PLTR.png\" market_cap=\"$199B\" pe_ratio=\"449.07\" percent_change=\"0.18\" symbol=\"PLTR\" volume=\"125,977,426\"></app></div><h2>Breaking down the details around the Pentagon budget</h2><p>In mid-February, President Trump expressed an interest in making some major changes to the nation's defense budget. On the surface, it appears that he is looking to identify cost reductions across the military and related defense agencies.</p><div><div><div></div></div></div><p>However, the details are still being refined.</p><p>Shortly after President Trump's suggestion, Secretary of Defense Pete Hegseth announced that the Pentagon would be looking to modify its budget by 8% annually over the next five years.</p><div></div><p>I want to emphasize my use of the word \"modify.\" While some pundits perceive the President's orders as demanding budget cuts, Secretary Hegseth has suggested that the Pentagon is working to identify programs that the administration deems non-pertinent to the military's core mission (national security) and then, per a Defense Department press release, redirect those funds to be \"spent on programs aligned with President Trump's priorities.\"</p><div><img loading=\"lazy\" src=\"https://g.foolcdn.com/image/?url=https%3A%2F%2Fg.foolcdn.com%2Feditorial%2Fimages%2F809124%2Fgettyimages-2162363632-2.jpg&amp;op=resize&amp;w=700\" srcset=\"https://g.foolcdn.com/image/?url=https%3A//g.foolcdn.com/editorial/images/809124/gettyimages-2162363632-2.jpg&amp;w=300&amp;op=resize 300w, https://g.foolcdn.com/image/?url=https%3A//g.foolcdn.com/editorial/images/809124/gettyimages-2162363632-2.jpg&amp;w=1000&amp;op=resize 1000w, https://g.foolcdn.com/image/?url=https%3A//g.foolcdn.com/editorial/images/809124/gettyimages-2162363632-2.jpg&amp;w=2000&amp;op=resize 2000w\"/><p>Image source: Getty Images.</p></div><h2>I'm not surprised by these orders</h2><p>Back in November, the Department of Defense completed its seventh annual audit in a row that resulted in a \"disclaimer of opinion.\" That's basically a formal way for auditors to say they cannot confirm the total accuracy of financial statements. Given that the Pentagon's budget is around $850 billion, it's a bit disconcerting to learn that internal auditors have failed to fully account for the flow of funds for seven consecutive years.</p><div><div><div></div></div></div><p>In my mind, this dynamic was one of Trump's inspirations in his creation of the \"Department of Government Efficiency\" (DOGE), which he tapped Elon Musk to lead. And considering that DOGE is taking a magnifying glass to programs across the government, why wouldn't the Pentagon receive some increased scrutiny, particularly given its history of failing audits?</p><p>To me, it was obvious to expect that the President would task Secretary Hegseth with finding ways to trim and reallocate some of the Pentagon's budget.</p><h2>Palantir could benefit from these budget cuts</h2><p>The chart below illustrates the magnitude of Palantir's sell-off following news that the Pentagon had been ordered to find places to cut its budget. The main reason the shares took such a nosedive is that Palantir works closely with the U.S. government -- and, in particular, with military and intelligence agencies. In fact, more than half of Palantir's revenue comes from government contracts.</p><p><img src=\"https://media.ycharts.com/charts/0b4846b41308687556b3ce42cdb4bad0.png\"/></p><p>PLTR data by YCharts.</p><div><div><div></div></div></div><p>While no details are available yet, my suspicion is that the proposed 8% change to the Pentagon's budget will come through a combination of cost reductions and reallocations from non-core programs into more directly defense-centric initiatives.</p><p>On top of that, I tend to think most of the cost savings from these changes will come through reductions in employee headcount. It's not uncommon for workforces at large corporations to become bloated. For this reason, when companies decide to make major spending cuts, they almost always begin with layoffs, then follow up by identifying non-core vendor spending to reduce.</p><p>While the Pentagon may indeed begin slashing spending and renegotiating contracts with certain vendors, I expect Palantir will end up a major beneficiary of this cost-cutting plan. Its software programs have several artificial intelligence (AI) features integrated into them. Specifically, its AI platforms can help large enterprises model dynamic scenarios that account for changes in logistics, vendor procurement processes, headcount, inventory, and many other variables. As such, I think that rather than reducing the amount it spends with the company, the Pentagon will rely more heavily on Palantir to help it streamline its budget.</p><p>Lastly, Palantir tends to work with the Defense Department in highly classified environments. While the exact use cases for its tech are generally kept secret, I'm inclined to think the Pentagon will not cut spending on contracts with companies like Palantir that assist it in mission-critical operations.</p><div><div><div></div></div></div><p>For these reasons, I think Palantir's relationship with the government could become even closer as Washington adjusts the Pentagon's budget.</p><div></div></div></body></html>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Contrarian Opinion: President Trump's Pentagon Budget Reductions Will Benefit Palantir. Here's Why.</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nContrarian Opinion: President Trump's Pentagon Budget Reductions Will Benefit Palantir. Here's Why.\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-03-03 03:19 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2025/03/02/contrarian-opinion-president-trumps-pentagon-budge/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>President Trump and Secretary of Defense Pete Hegseth hope to find tens of billions of dollars of spending they can cut from the U.S. defense budget.\n\n\n\n\n\n\n\nGiven the Pentagon's history of failing ...</p>\n\n<a href=\"https://www.fool.com/investing/2025/03/02/contrarian-opinion-president-trumps-pentagon-budge/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PLTR":"Palantir Technologies Inc.","LU1861558580.USD":"日兴方舟颠覆性创新基金B","BK4543":"AI","BK4547":"WSB热门概念","BK4585":"ETF&股票定投概念","LU1861559042.SGD":"日兴方舟颠覆性创新基金B SGD","BK4023":"应用软件","BK4588":"碎股"},"source_url":"https://www.fool.com/investing/2025/03/02/contrarian-opinion-president-trumps-pentagon-budge/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2516254414","content_text":"President Trump and Secretary of Defense Pete Hegseth hope to find tens of billions of dollars of spending they can cut from the U.S. defense budget.\n\n\n\n\n\n\n\nGiven the Pentagon's history of failing audits and Trump's creation of the Department of Government Efficiency, it's not surprising to see the Pentagon receive some extra scrutiny.\n\n\n\n\n\n\n\nConsidering how much of Palantir's revenue comes from contracts with the U.S. military and intelligence agencies, some investors expect that defense budget cuts will hit the company's financials.\n\nFor much of the last year, any time investors got news related to Palantir Technologies (PLTR 0.18%), that news was overwhelmingly positive. In 2024, the data analytics specialist's stock was the top performer in the S&P 500 (SNPINDEX: ^GSPC). It was also added to the Nasdaq-100 index, and institutional investors finally warmed up to a business they had previously viewed as too heavily reliant on U.S. government contracts. However, as smart investors know, no stock can go up in a straight line forever. And Palantir just hit its first major snag in quite some time.Over the last 10 days or so, shares of Palantir have cratered by 24%. The sell-off was linked to a series of orders out of the White House that spooked investors.Let's explore the specifics surrounding Palantir stock right now, and I'll explain my contrarian view that the current sell-off is overblown.Breaking down the details around the Pentagon budgetIn mid-February, President Trump expressed an interest in making some major changes to the nation's defense budget. On the surface, it appears that he is looking to identify cost reductions across the military and related defense agencies.However, the details are still being refined.Shortly after President Trump's suggestion, Secretary of Defense Pete Hegseth announced that the Pentagon would be looking to modify its budget by 8% annually over the next five years.I want to emphasize my use of the word \"modify.\" While some pundits perceive the President's orders as demanding budget cuts, Secretary Hegseth has suggested that the Pentagon is working to identify programs that the administration deems non-pertinent to the military's core mission (national security) and then, per a Defense Department press release, redirect those funds to be \"spent on programs aligned with President Trump's priorities.\"Image source: Getty Images.I'm not surprised by these ordersBack in November, the Department of Defense completed its seventh annual audit in a row that resulted in a \"disclaimer of opinion.\" That's basically a formal way for auditors to say they cannot confirm the total accuracy of financial statements. Given that the Pentagon's budget is around $850 billion, it's a bit disconcerting to learn that internal auditors have failed to fully account for the flow of funds for seven consecutive years.In my mind, this dynamic was one of Trump's inspirations in his creation of the \"Department of Government Efficiency\" (DOGE), which he tapped Elon Musk to lead. And considering that DOGE is taking a magnifying glass to programs across the government, why wouldn't the Pentagon receive some increased scrutiny, particularly given its history of failing audits?To me, it was obvious to expect that the President would task Secretary Hegseth with finding ways to trim and reallocate some of the Pentagon's budget.Palantir could benefit from these budget cutsThe chart below illustrates the magnitude of Palantir's sell-off following news that the Pentagon had been ordered to find places to cut its budget. The main reason the shares took such a nosedive is that Palantir works closely with the U.S. government -- and, in particular, with military and intelligence agencies. In fact, more than half of Palantir's revenue comes from government contracts.PLTR data by YCharts.While no details are available yet, my suspicion is that the proposed 8% change to the Pentagon's budget will come through a combination of cost reductions and reallocations from non-core programs into more directly defense-centric initiatives.On top of that, I tend to think most of the cost savings from these changes will come through reductions in employee headcount. It's not uncommon for workforces at large corporations to become bloated. For this reason, when companies decide to make major spending cuts, they almost always begin with layoffs, then follow up by identifying non-core vendor spending to reduce.While the Pentagon may indeed begin slashing spending and renegotiating contracts with certain vendors, I expect Palantir will end up a major beneficiary of this cost-cutting plan. Its software programs have several artificial intelligence (AI) features integrated into them. Specifically, its AI platforms can help large enterprises model dynamic scenarios that account for changes in logistics, vendor procurement processes, headcount, inventory, and many other variables. As such, I think that rather than reducing the amount it spends with the company, the Pentagon will rely more heavily on Palantir to help it streamline its budget.Lastly, Palantir tends to work with the Defense Department in highly classified environments. While the exact use cases for its tech are generally kept secret, I'm inclined to think the Pentagon will not cut spending on contracts with companies like Palantir that assist it in mission-critical operations.For these reasons, I think Palantir's relationship with the government could become even closer as Washington adjusts the Pentagon's budget.","news_type":1},"isVote":1,"tweetType":1,"viewCount":422,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":409290978050736,"gmtCreate":1740941093107,"gmtModify":1740966375385,"author":{"id":"4203813526004392","authorId":"4203813526004392","name":"SolHashira","avatar":"https://community-static.tradeup.com/news/ccc95796b00f47e02e554fc93e7c9521","crmLevel":5,"crmLevelSwitch":0,"followedFlag":false,"idStr":"4203813526004392","authorIdStr":"4203813526004392"},"themes":[],"htmlText":"<a href=\"https://ttm.financial/S/NVDA\">$NVIDIA(NVDA)$&nbsp;</a><v-v data-views=\"1\"></v-v>&nbsp;","listText":"<a href=\"https://ttm.financial/S/NVDA\">$NVIDIA(NVDA)$&nbsp;</a><v-v data-views=\"1\"></v-v>&nbsp;","text":"$NVIDIA(NVDA)$","images":[{"img":"https://community-static.tradeup.com/news/ff9f027329cfdf652a8f567dcea91f86","width":"906","height":"1459"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/409290978050736","isVote":1,"tweetType":1,"viewCount":218,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0}],"defaultTab":"posts","isTTM":true}