In the absence of my reassuring presence, I see that AI-related shares have taken a hit. It has nothing to do with the fundamentals, which remain outstanding. Jensen Juang is as insistent as ever that the AI infrastructure boom has years to run and is of generational significance.
Huang said that the “largest infrastructure buildout in human history” is being driven by “sky high” demand for computing power, which AI companies and hyperscalers can use to make more money. He cited specific examples of what Nvidia customers are doing with AI.
Meta is using AI to move from a recommendation system that ran on CPUs to a system that uses generative AI and agents, Huang said. He said Amazon Web Services’ usage of Nvidia chips and AI will affect how the retail giant recommends products, and that Microsoft will use Nvidia-powered AI to improve its enterprise software.
He also praised OpenAI and Anthropic, the two leading artificial intelligence labs, which both use Nvidia chips through cloud providers. Nvidia invested $10 billion in Anthropic last year, and Huang said earlier this week that the chipmaker will invest heavily in OpenAI’s next fundraising round.
“Anthropic is making great money. Open AI is making great money,” Huang said. “If they could have twice as much compute, the revenues would go up four times as much.”
He said that all the graphics processing units that Nvidia has sold in the past — even six-year old chips such as the A100 — are currently being rented, reflecting sustained demand for AI computing power.
“To the extent that people continue to pay for the AI and the AI companies are able to generate a profit from that, they’re going to keep on doubling, doubling, doubling, doubling.
Jensen Huang, CEO, Nvidia, CNBC, 6 February 2026
Palantir shares have been hammered, down 38 per cent peak to trough, yet the latest quarterly figures could not have been more impressive.
The large language models will not lead us to salvation. They require a means of reliably and efficiently interacting with the byzantine complexity of the modern enterprise – its tangle of datasets, operations and personnel.
The strings of text produced by the language models are little without a software architecture that can lend a grammar and structure to the output of these probabilistic prediction engines. The models must be tethered to objects in the real world, and it is that tether, that means of grounding and orientation, that we have built.
As a result, our U.S. commercial business, once a promising but mostly theoretical backwater of our company, is now growing at an astonishing rate, generating $507 million last quarter – a 137% increase over the same period the year before.
Alex Karp, CEO, Palantir, letter to shareholders, 2 February 2026
He started his letter by saying.
We are at the outset, the very beginning, of a generational project.
There is no question that Palantir is experiencing one of the most incredible business expansions in software history yet the shares plummeted. The simplest explanation is that they were too high before. They are trying to find the right level to correspond with the oustanding fundamentals
Commentators are talking about the Dow Jones Industrials hitting new peaks, industrials and other humdrum shares having their day in the sun, and so on. This may all be true but nothing changes one important fact. AI stocks are the most exciting businesses the planet has ever seen.
Credo Technology makes the all-important networking equipment vital for data centres/ AI factories. Demand is exploding, and the company has talked in the past of reaching an inflexion point. They certainly have, with sales expected to triple in the current year.
Credo expects to report third quarter 2026 revenue in the range of $404 million to $408 million, above the high-end of Credo’s previously announced third quarter guidance range of $335 million and $345 million. Looking towards the end of fiscal year 2026 and into fiscal 2027, Credo expects sequential revenue growth in the mid-single digits leading to more than 200% year-over-year growth in the current fiscal year.
The company is on the most incredible roll and yet, before this latest announcement, the shares fell frtom a peak $212 to $93 before rebounding sharply. Talk about shareholders as manic depressives. Where are they going? God knows. Probably higher, maybe lower, maybe all over the place but this is a valuable business at the heart of the AI infrastructure action.
Investing in AI-related shares is not about pontificating commentators and that includes me. It is about belief. Do you believe all these guys, Jensen Huang, Alex Karp and co. If you do hang in there for the ride. It may be wild but ultimately it will be rewarding.
Gold is having a moment. In the recent past, Gold has doubled while Bitcoin has halved. As usual, the reasons for this are mysteries few humans can solve. Gold has advantages – a long history of desirability, you can touch it, shape it, wear it, it doesn’t rust or tarnish, and it is scarce. Not surprisingly, in an era of relentless devaluation of paper money, it has great appeal.
Since the early 1970s, when Nixon unpegged the dollar from gold, the Dow Jones has risen 90 times, and gold has risen 157 times — food for thought. Just for the record, dollar cash has risen zero times. It can generate interest, but that is taxable income. Governments have no shame.
Uruguay, which is where I have been for most of the last six weeks, is booming, especially on the coast. Prices are high. You can spend £200 in a restaurant in Punta del Este as easily as you can in central London. A beach house in Jose Ignacio, an especially chic resort, is for sale for $20 million. I have many great nephews and great nieces in Uruguay. Unlike most of their parents and all of their grandparents, they all speak English.
I was sitting in my favourite cafe talking about kingfishers, especially the one perched on the next table, with my neighbour. He was an American investment banker. Uruguay has incredible beaches, summer in the northern winter and a wonderful quality of life. This is being discovered by a growing international community. The Uruguayan peso is one of the world’s strongest currencies.
Curiously, the biggest party in the left of centre government is communist, no doubt impressed by the economic success of Cuba and North Korea. The arrest of the Venezuelan gangster, Maduro, has sent shock waves through the region. When I heard the news, I jumped out of my chair with delight. My son’s Uruguayan girlfriend was less ecstatic, but fortunately, we have smoothed that one over.
Just for the record, I am not a completely arrogant gringo, as my son and I are sometimes, affectionately I hope, known to some of our many relations. His Spanish is fluent, and mine is at a conversational level, though with an accent, which means that when I speak Spanish to anyone who can also speak English, they reply in English
Strategy – Using Buy & Sell Signals
An alternative strategy with a stock like Palantir is not to buy into weakness but to wait for a technical buy signal. Presently, two out of the three moving averages I follow are falling for Palantir. A buy signal would be given when the longer of those moving averages turns higher.
If the longest moving average were to turn lower, that would suggest the possibility of a longer and deeper period of weakness, not impossible for a share which was $6 three years ago.
The truth is that presently we know two things about Palantir. The business is growing explosively, and the shares have developed considerable downward momentum. It may seem an odd combination, but these things happen in the stock market.
At Quentinvest, we are working to develop a system of automated alerts based on our proprietary indicators. We also hope to be able to analyse the results of using those indicators. We intend this to be a valuable tool for subscribers.
We are looking at the possibility of incorporating sell signals. This is more like insurance to make sure you preserve the bulk of your profits and avoid the shares during major declines.
We want to base our share recommendations on hard facts, which are core fundamentals and chart signals. Everything else is just opinions, and you can get a new and different one of those from almost everybody you talk to.
Cogito ergo sum
In the 18th century, a wave of scepticism swept Western Europe. Could you believe what your senses told you about the material world when so many people perceived things differently? Was the material world even there or just an illusion? A philosopher called Descartes imagined what would happen if you doubted everything, even your own existence and ended up with the famous ‘cogito ergo sum’. I think, therefore I am. Subsequent philosophers say this proved nothing because he was assuming the thing he was trying to prove.
I am trying to apply a ‘cogito ergo sum’ approach to the stockmarket. There are many experts and many opinions out there. This share is cheap, no, it is dear and so on and so on. Many of these people can talk a good talk, but can they predict the future? Not in my experience.
So I am trying, with important assistance, to develop an approach which is rooted in hard facts. I am hopeful that these will guide our actions in a profitable direction.
