Wall Street was celebrating. Retail investors were buying stocks. No one read the fine print.
Nvidia crushed Q3: $57B in revenue, a 112% increase in one year. Stocks jumped 3%, adding $131B overnight.
The filing with the SEC tells a different story.
FRAUD ON $112 BILLION
Since 2018, Nvidia has generated $188 billion in cash. Shareholders received $92 billion.
$112 billion disappeared in employee stock compensation.
Nvidia repurchased shares at an average price of $2,394. Then handed 47 million new shares to insiders. Your investments made them rich. You got half.
MARGIN COLLAPSE
Margins fell from 74.6% to 73.4% in one quarter. The first decline since 2022.
This happened when the CEO claims 'crazy demand' and $500 billion in orders. When a monopoly loses pricing power during shortages, competition comes.
IMPOSSIBLE MATH
The USA adds 45 gigawatts of capacity annually. AI requires 250-350 gigawatts by 2030. Shortfall: 120-180 gigawatts.
It requires 5x the Manhattan Project over five years. Gas turbines are sold out until 2030. Nuclear power does not scale until 2035.
Nvidia has orders for chips. America lacks electricity to run them.
The cost of energy is rising by 40% annually. By 2027, electricity exceeds chip costs. The model is breaking.
SMART MONEY HAS EXITED
SoftBank sold $5.8B before the earnings announcement. Tilly dumped everything... it was 40% of his fund.
They exited before the jump to $131B. They know something.
WARNING MARKET
S&P rose by 0.53%. Nasdaq rose by 0.03%. Bitcoin climbed to $91,234, separating from technology. Correlation decreased from 0.64 to 0.41.
The rotation has begun.
WHAT DOES THIS MEAN
Centralized AI faces an energy barrier in 2027-2028. When electricity costs exceed chip costs, the economy flips.
Decentralization is inevitable. Open models will catch up by mid-2026. Distributed computing uses 12x less energy.
$112B transfer, margin collapse and energy crisis not accounted for.
$BTC
