10 Nov 10th November 2025

Index Movement Last Week

We saw a little bit of selling last week across the board as traders took profits in the hottest AI trades. But this is absolutely normal behaviour. It is amusing how a day or two of selling changes retail views.

My pharmacist asked me last week if the markets were about to crash. When I asked him why he said because the economy is so bad. I’m not sure what he is looking at but all I see is record company profits growing at 8%-9% over last year, very low unemployment, stable inflation and interest rates coming down.

Then I had a call from someone who wanted to place their entire account on a short option trade because they were convinced the stock market was about to have a very large crash. Maybe it will. Who knows? But I would rather be long than short here.

With the US Government still shut-down, there are no economic reports because strangely enough even statisticians refuse to work without pay. That leaves me with just company reports to talk about.

Luckily we had a slew of them last week.

Let’s start with NVidia. Whilst they didn’t release numbers, they did hold a developers conference and Jensen Huang spelt out a number of their opportunities.

He claims NVidia is working with the US Department of Energy to build seven new supercomputers, including one that will use 10,000 Blackwell GPUs.

NVidia is also partnering with UBER to build a fleet of self-driving cars, targeting about 100,000 autonomous vehicles with mass production starting in 2027. They are also working with Stellantis and Foxconn on a robotaxi joint venture. Then of course there is Lucid and Mercedes-Benz.

Those two announcements alone would be worth a few extra billion in market-cap, but NVidia also said they are working with Nokia to help develop 6G mobile technology. Shares of Nokia jumped 22% on that one.

But wait, there’s more.

Drugmaker, Eli Lilly is building an AI supercomputer running on more than 1,000 Blackwell Ultra GPUs. The partnership will “enable breakthroughs in genomics, personalized medicine, and molecular design at industrial scale” NVidia said.

This swirl of news from this one event demonstrates how NVidia chips are going to be used in all aspects of our lives and it seems NVidia is doing deals with these partners. Maybe some kind of revenue share rather than just an outright sale.

The NVidia story is far from over. It could even be just beginning. Alan Kohler tells me Nvidia is now worth more than the entire Australian Stock market, plus all the government debt in Australia added together.

At more than $5Trillion (first company to ever get there) he is probably right.

What would you prefer to own – Everything in Australia or NVidia? Whilst the Australia story is attractive, based on future growth – I think I’ll take NVidia as I am worried Australia cannot grow at all.

Amazon smashed numbers out of the park based on AWS revenue that is growing at 20% a year, faster than expected. Quarterly Earnings growth was +34%. How do companies of this size achieve these numbers? Truly amazing.

Apple beat expectations and CEO Tim Cook said iPhone17 demand is “off the chart”

Meta reported that sales and profit growth continue to shoot higher. Then Zuckerberg dropped a bomb saying he is planning to increase spend on data centres and artificial intelligence. Shares dropped 9%.

Here is what the market is missing. You have to plan for the future. Capex could hit $100billion next year. But even this number is still just 60% of what they generate. They will still buy-back stock and pay a dividend.

The market is thinking – oh, that’s too much to spend, I would rather you buy-back more stock.

But what could go right? META has 3.48 billion monthly active users across Facebook, Messenger, Instagram and WhatsApp. This spend sets them up to be able to further monetise this massive asset base for the foreseeable future.

There is no point having all these customers if you can’t make a dollar from them and to generate tens of billions every year for the next decade needs an upfront investment. No one blinks an eye if BHP spends $100million today to develop a mine that will give them income for the next 20 years. This is what this data centre investment by META is. It is called business. Invest today to reap the rewards tomorrow. No investment today means no rewards tomorrow.

This share price dip is a gift. Use it to buy more.

Microsoft’s results confirm its place as an unassailable powerhouse of corporate computing. The company generated a staggering $77.7billion in revenue in the quarter, up 17% year-on-year. Gains were primarily driven by Microsoft Cloud which grew by 20%. CEO Nadella expects revenue to continue to grow next quarter to around $80billion. Accordingly, he raised the company’s strategic investment in AI infrastructure.

If anyone does not own these companies in their portfolio – why not?

Google owns the internet

Meta owns social

Microsoft owns corporate computing

NVidia owns chips to power the above

Amazon owns online shopping and Cloud

Just buy the above and you will effectively own the entire online spectrum It’s almost too easy to profit at the moment.

Unless you are bearish. But then, I never really see bears make money.

Stay bullish and on the right side of this long-term trend.

Warning

Stock values can go down as well as up. It is possible to lose 100% of your investment in a stock. Any advice given by Capital 19 is general advice only and does not take your personal circumstances into account and might not be suitable for you.