Mind the Death Jaws

Last night, Nvidia reported earnings. The AI bellwether doubled its net income from $22 billion to $43 billion in the fourth quarter of 2025.

Good news, right? Nope. The stock dropped like a stone at the open today, down 7%.

For AI-linked companies — Nvidia foremost among them — investor expectations continue to rise along with their valuations. At this point, even billions in profit are not enough.

Like the fiber optic spending plans that dominated the 1990s at the height of the dotcom bubble, AI spending is squeezing the cash flows for the S&P 500’s biggest companies:

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Soaring AI spending is hitting Mag 7 balance sheets and will risk capital gains for individual investors across the indexes going forward. (Source: Crescat Capital)

The market has a logic all its own. Despite record profits, the Mag as a group is down 12% from its October 28, 2025, high.

~ Addison

P.S. Grey Swan Live! this week will be coming to you live from inside the Rarcoa Vault in Chicago.

Our interest: Rare coins offer a unique way to protect your wealth with precious metals – and they carry the added value of rarity, mint, condition and historical significance.

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Please join us while we visit with family founder, Wayde Milas, inside the Rarcoa vault to check out the 2025 Eagle Privy Silver Eagle graded NGC MS70 from the first group of 50,000 pristine minted coins. Brand new sets will be available to attendees of the Zoom at a steeply discounted event price.

The live Zoom event will air on Friday, February 27, 2026, at 2 p.m. EST/11 a.m. PST.

Last night, Nvidia reported earnings. The AI bellwether doubled its net income from $22 billion to $43 billion in the fourth quarter of 2025.

Good news, right? Nope. The stock dropped like a stone at the open today, down 7%.

For AI-linked companies — Nvidia foremost among them — investor expectations continue to rise along with their valuations. At this point, even billions in profit are not enough.

Like the fiber optic spending plans that dominated the 1990s at the height of the dotcom bubble, AI spending is squeezing the cash flows for the S&P 500’s biggest companies:

Turn Your Images On

Soaring AI spending is hitting Mag 7 balance sheets and will risk capital gains for individual investors across the indexes going forward. (Source: Crescat Capital)

The market has a logic all its own. Despite record profits, the Mag as a group is down 12% from its October 28, 2025, high.

~ Addison

P.S. Grey Swan Live! this week will be coming to you live from inside the Rarcoa Vault in Chicago.

Our interest: Rare coins offer a unique way to protect your wealth with precious metals – and they carry the added value of rarity, mint, condition and historical significance.

Turn Your Images On

The live Zoom event will air on Friday, February 27, 2026, at 2 p.m. EST/11 a.m. PST.

That earnings calls are buzzing with questions about AI is a good sign investors are trying to be realistic about the tech’s capabilities…

The market’s headline indexes have held their ground, relatively speaking, among all the Persian Gulf hand-wringing. But it’s worth a closer look at what’s causing this unique setup…

The problems in private credit aren’t going away – they’re compounding. For now, the market is more focused on Iran and oil than private credit. But the trouble compounds.

With the United States conducting what the Pentagon politely calls an “operation” against Iranian military infrastructure, markets have had every reason to be panicky. Instead, the past week delivered something subtler…

That earnings calls are buzzing with questions about AI is a good sign investors are trying to be realistic about the tech’s capabilities…

The market’s headline indexes have held their ground, relatively speaking, among all the Persian Gulf hand-wringing. But it’s worth a closer look at what’s causing this unique setup…

The problems in private credit aren’t going away – they’re compounding. For now, the market is more focused on Iran and oil than private credit. But the trouble compounds.