NVDA may be a scam: Maybe the real AI gold rush is the junk stonk we pump and dump along the way

One of these, I believe, is APLD. They're ranked #1 on my list of stocks to buy puts on. They recently raised $160M from a Nvidia private placement, which made their stock go up over $6: a perfect opportunity for me to buy some $4 and $4.50 puts because the price of those puts went way down. This is a company with negative gross margins, huge net losses, depleted cash reserves, asset sales, equipment issues, and questions about the true demand for their services. This quarter's interest expense: $18M, revenue: $46M, operating income: -$34M. Net loss: -$65M. This is obviously unsustainable, so they just issued $53M in convertible preferreds, convertible at $7, so that places a pretty firm cap on the stock price there. Then they're going to issue 49M more shares at $3.24. The current price is about 6X tangible book value. This is a company that used to be called Applied Blockchain and only switched from Bitcoin mining to HPC two years ago. I'm not sure whether APLD uses only Nvidia GPUs, but I suspect it does. And then there's all this: https://www.wolfpackresearch.com/items/apld%3A-an-embarrassing-and-predictable-stock-promotion and this: Problems at Applied Digital (APLD) - by Edwin Dorsey . . .

If this is typical of the kind of investments Nvidia is making, that doesn't speak well of them. If they're so successful at selling GPUs, why are they trying to shore up customers like these?

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