Pinned Tweet
$TLT $RKT $QQQ $CRWV
Understanding the Nasdaq and Treasury moves today.
Lots of moving parts, but here is 1:
Yesterday's inflation data initially produced the expected reaction: Treasury yields rose, and the market priced in a higher probability of Federal Reserve tightening.
Then the AI-sector selloff accelerated, particularly around Anthropic revenue and CoreWeave's debt, and Treasury bonds rallied.
🚨 AI Efficiency Is Accelerating. Here’s How I Expect the Investment Landscape to Change.
Next week:
AI overcapacity concerns and market uncertainty could pressure leveraged infrastructure stocks even more, particularly $CRWV, $NBIS, $IREN and $APLD.
3–6 months: Investors increasingly scrutinize debt, GPU utilization, financing costs and margins. Expect a widening gap between infrastructure winners and losers.
12–24 months: Cheaper AI accelerates adoption, agentic workflows and specialized compute. Favor platforms, custom ASICs, networking and enterprise AI distribution.
2 years+ : Basic AI intelligence becomes commoditized. Value migrates toward proprietary data, applications, automation, physical AI and companies controlling customer relationships.
Weekend News:
DeepSeek’s latest V4.1 Flash release reinforces the accelerating economics of open-weight AI. Frontier-level capabilities are becoming increasingly accessible at dramatically lower costs.
Meanwhile, the Nasdaq is already under pressure, and investors are questioning whether massive AI infrastructure spending will deliver sufficient returns.
But there’s an important paradox:
More efficient AI doesn’t necessarily mean less compute demand.
If compute requirements per task fall 50%, but AI usage triples, aggregate compute demand still increases 50%.
The real question is who captures the profits as AI becomes cheaper?
I’m increasingly cautious on highly leveraged neoclouds, while favoring businesses that monetize AI adoption regardless of which frontier model wins.
Bottom line: The AI boom isn’t necessarily ending. The economics are evolving, and the biggest investment opportunities may shift from building intelligence to deploying it profitably.
The next phase of AI investing is about margin expansion, sustainable cash flow and who captures the value—not simply who spends the most on compute.
📉 $QQQ: Where is the next major bottom?
QQQ closed at $709.80 after a sharp tech selloff.
I analyzed 20 years of historical prices, current technical indicators, macro conditions, and options-implied volatility to estimate the potential bottom over the next 4 months.
My probability-weighted scenarios:
🟢 35%: $650–690
🔵 34%: $690 or higher
🟠 19%: Below $620
🔴 12%: $620–650
Key technical levels:
• $699 — 38.2% Fibonacci retracement
• $679 — 50% retracement + 200-day MA near $675
• $659 — 61.8% retracement
• $631 — 78.6% retracement
My thesis: A bounce around $700 is plausible, $660–680 offers stronger intermediate technical support.
Hot inflation, elevated yields, and questions about AI spending returns create downside risk. Strong technology earnings remain the bullish counterweight.
The model estimates a ~38% chance QQQ closes at or below $660 before mid-February.
My approach: staged buying, and keeping dry powder for a deeper correction.
Probabilities are research estimates, not guarantees.
$QQQ $NDX $NVDA $AVGO
🤨
One caution from history. $SOXX only other nine-session losing streak (May 2006) was followed by roughly 17% more downside into that July.
$QQQ touched 709
Placing very small initial buys:
AI/tech selloff: 5 rebound picks for the next 60 days:
$TSM – 41% revenue growth, attractive valuation, AI chip leader.
$NVDA – Explosive earnings, strong AI demand, reasonable forward P/E.
$AVGO – Custom AI chips growing rapidly, massive free cash flow.
$MU – Huge earnings growth, low forward P/E, strong memory demand.
$ANET – Strong AI networking growth, excellent balance sheet.
Next Tier: $CRDO, $HPE, $WDC, $GLW, $ASML, $GOOGL, $META, $MSFT, $ALAB, $AMD, $MRVL, $SNPS, $AMZN, $HOOD, $MDB, $ARM
Several are down 15–30% from recent peaks despite strong fundamentals. Looks more like valuation compression than collapsing earnings for many of these names.
***Still watching for technical support to hold before aggressively buying.
***$QQQ drop and hold below 695 invalidates thesis. In that case next strong support is 660s.
Muse Spark Open -- weights releasing today -- runs great on new Mac Studios thanks to work with @johnternus and Apple.
+10% since last week ...... likely on the treasury yield fall....but long term story is they are a great data play $CGSP
$CSGP
Was looking for a good long term value play!
Yes $CSGP the $29 stock that was $94 last year.
This is not just a Homes.com bet, it is one of the most valuable real estate data businesses.
Its core CoStar product alone generates ~$1.35B in annualized revenue. Yet the stock is down bigly from its 52-week high.
WTF you say?
$HPE
Bought small amount at 58 today. I was planning to wait till 700 QQQ. QQQ hit 716 today for low, pretty close. Be mindful we might get another small dip before bounce.
TomOnTech retweeted
I spent 48 hours in SF hanging out with billionaires, data labs and AI founders and execs running $1B to $100B companies.
My observations:
1. Sooo MANY stories of data brokers making like $2M a WEEK selling company data to labs. I can't tell if it's the beginning or a bubble, and I kept wondering which niches are left. Digging into it actively.
2. At dinner, someone asked the table, "If a new model drops next month, does your company get better or worse?" HALF the table went quiet! I think that's the best question to ask about any AI startup right now.
3. The bar people talk about now is hitting $1B in revenue in 12 months (I guess that's the new unicorn?). What I didn't hear much about is retention. AI revenue can come in fast and leave fast, and I think we're going to see a lot of stories of AI companies with huge revenue and terrible retention.
4. It's pretty clear we're living through the reinvention of the computer. The model is the CPU, the harness is the operating system, and skills and plugins are the apps. Thinking about it that way makes it easier to see where the whitespace is.
5. We're maybe 12 months from an agent that can watch you work for a week and then do your job without any instructions. The screen recording plus agent memory plus local model combination makes this possible right now.
6. Agent harnesses feel like the new GPT wrappers, in a good way, especially vertical ones. The best teams I talked to treat the model as swappable. One founder walked me through routing different models to different jobs: one for taste and visuals, a cheaper one for the everyday stuff, another for text.
They use prompts they can move across models over fine-tuning, and A/B test the output on what users actually do with it: do they edit it, export it, share it? A vertical harness is basically four things: the connectors for that industry's data, evals written by people who know the work, rules for what the agent can and can't touch, and a clean screen for a human to review. The model is maybe 20% of it.
7. There's a lot of reverse engineering going on/cloning going on more than I've ever seen. People are decompiling software and rebuilding it with agents, and someone showed a suite of like 10 apps that are worth $5B+ each all that he cloned open source. Me and everyone are still thinking through what it means when software gets this easy to copy.
8. My guess is the value moves to data. If the software can be rebuilt quickly, what's worth paying for in a legacy SaaS company is the years of customer data and workflows inside it. Some SaaS companies are secretly data companies.
Gets me thinking about how do you truly value data for this saas companies? Like if we were buying these dying saas companies at 2x ARR before (as example), maybe there is a better metric. Idk, just thinking out loud here.
9. It feels like a good chunk of legacy software won't make it to the agentic era, especially anything built around people clicking through a lot of screens.
10. Every company I talked to wants to pipe its internal data into one place and expose it to agents through MCP. Then they look at the data and realize it's a mess: five versions of the same customer, old Slack channels, PDFs nobody can search. Cleaning that up feels like a big consulting opportunity!
11. A lot of founders are building the basic building blocks for agents: APIs, data layers and tools. Some of the companies I saw barely have a UI because the main user is an agent. I really believe the startups that build primitives to this agentic era will do extremely well. Building blocks is the best way to think about it.
12. Labs can get plenty of training data, but it's harder to get real examples of agents failing inside companies. Whoever has those logs has something valuable.
13. Someone running a big consumer company told me the next fight is over memory. The model that remembers the most about you wins, and the smartest model matters less than people think.
14. Physical AI came up a lot. Astra I think was the first model that got people into AI can actually do CAD, and I think a lot of people are thinking what does vibe manufacturing really look like. The line I keep thinking about came from a robotics founder: the hardest problems in AI are deployment problems now, not research problems. Their robots work on their own, call a human when they get stuck, and every one of those calls becomes training data.
15. Cybersecurity companies are having a moment and are actually cool companies to build now, especially the ones that clean up after a breach. Every agent with access to your systems is a new door into your company, and a lot of those doors were left open.
16. Some startups are worth more dead than alive now. A shutdown company with 5 years of Slack, email and code can get paid for licensing all of it. I wouldn't be surprised if founders start factoring that into when they shut down.
17. People are starting to talk about monetizing the agent web. It feels really early, but when the most popular user of the internet is an agent, what startups should you be building?
18. I think agent insurance is coming. Once an agent makes an expensive mistake, insurers will want audits before they cover anyone.
19. Several people said the hire they want most is someone with taste who can write evals. The models are getting good at generating ideas, so the hard part is judging which ones are good.
20. New trend I observed: startup raises VC, uses venture dollars to become a creator, startup fails, founder falls back on being a full-time creator and incubates other products bootstrapped.
21. Getting SIGNIFICANT distribution is HARD right now. Founders are sponsoring buses, buying billboards like crazy and throwing parties with famous DJs to get noticed. Kinda feels dotcom era in that sense.
Attention is what's scarce! The growth guy going viral sharing his UGC strategy from Wispr Flow is a good example. It's the sauce everyone wants, and I truly believe there are probably only 50 people on the planet who know how to scale these types of businesses efficiently in this era.
Always good to get that dose of SF. I felt sooo lucky to have such an incredible trip during such an incredible time in building businesses. Surreal in so many ways.
Happy to be home and locked in.
Until next time!
AI Computing Shifts:
1. Agentic AI is making infrastructure more CPU-heavy.
2. ASIC computing gaining ground vs GPUs.
*Omdia forecasts 10.5M custom AI ASICs vs 10.1M GPUs shipped in 2028.
GPU demand won't disappear but compute is diversifying.
The next three years could bring a material shift from GPU-dominated unit shipments toward a heterogeneous mix of GPUs, TPUs, ASICs and increasingly important CPUs.
Note that the profit migration could be slower than the unit-share migration (ie; $NVDA still on list, Vera CPUs, and will continue to make great $$).
$AVGO, $GOOGL, $MRVL, $AMZN, $ARM, $AMD, $NVDA, $MSFT, $INTC, $ANET, $TSM, $CRDO, $ALAB, $SNPS, $MU
Something to think about when you see the Frontier lab reports on revenue..........
OpenAI and Anthropic face enormous compute costs, subsidized pricing, and uncertain profits.
Meanwhile, $GOOGL $AMZN $MSFT $META have massive cash flows, their own data centers, custom AI chips, and existing customers to monetize AI at scale. $SPCX has Starlink profits to help fund xAI, albeit with greater capital spending risk.
These companies can survive prolonged price wars, drive down AI costs, and profit from AI adoption across their existing businesses.
In the long run the smartest AI is important, but those who can make AI cheaper, outlast competitors, and capture the profits as AI becomes a commodity.
$CSGP
Was looking for a good long term value play!
Yes $CSGP the $29 stock that was $94 last year.
This is not just a Homes.com bet, it is one of the most valuable real estate data businesses.
Its core CoStar product alone generates ~$1.35B in annualized revenue. Yet the stock is down bigly from its 52-week high.
WTF you say?
But wait.........I think the bigger opportunity is CoStar's proprietary data.
Decades of rents, leases, tenants, transactions and property intelligence.
As AI agents proliferate, banks, investors and software platforms could pay for access to verified, constantly updated information.
A new revenue stream worth watching.
AI IS HUNGRY FOR DATA ....and companies are going to PAY!!!
SURE The risks are real: Homes.com spending, crappy property markets, high rates, lower near term revenue and potential subscription cannibalization.
But at ~$30, just 15% above its 52-week low, $CSGP deserves a closer look.
As AI gets cheaper and smarter, proprietary real estate data could become more valuable, not less!!!!
*This is a 1-2 year play!!!!! Not a quick trade.
NFA/DYOR














