1. Nvidia posted another quarter of record earnings, yet Nvidia trades at 19 P/E.

The longer-term question is how durable its results will prove.
Look at the company’s sales outlook: Analysts surveyed by FactSet expect nearly $400 billion in its current fiscal year, which ends in January, rising to $570 billion the next and around $700 billion the year after.
The amount of spending needed to keep Nvidia’s revenue skyrocketing is questionable.

2. Token spend growth continues in August, driven by a substantial uptick in volumes.

Token volume growth re-accelerated on a sequential-basis in August, expanding +47% m/m.

3. Software is back.

Salesforce raised its annual revenue and profit forecasts and rolled out a new plug-in combining its capabilities with Anthropic's Claude AI models.
The Anthropic partnership reinforces expectations that AI model developers will increasingly align with leading apps vendors who can provide distribution and more application specific solutions than the model vendors.
"Overall, there was no evidence of incremental disruption or competition," BofA writes.
"Looking ahead, we forecast continuing revenue acceleration in Q3 in software with 9.9% YoY growth up from 9.5% in Q2, with 2027 to accelerate to 10.6%."

Below: The equally weighted Software Index.

4. Putting AI in the wireless network.

The combination of 6G and AI-RAN is a telco industry game changer.
Jensen Huang says: "Intelligence is moving into the physical world with robots, autonomous vehicles and cities, 1 billion cars, billions of robots in the future, millions of factories and hundreds of millions of farms will all be connected to intelligence. AI will be distributed at the edge. This is where AI RAN and 6G change everything. The radio network becomes distributed AI.
Notably, T-Mobile’s partnership with NVIDIA underscores this opportunity, since every base station with “Nvidia aerial” becomes an AI computer and 6G is the connective fabric.
By integrating GPU-accelerated computing directly into Radio Access Network (RAN) base stations, telecom towers transform into localized mini-data centers.
Platforms like the Aerial RAN Computer allow operators to run traditional wireless workloads and generative AI microservices simultaneously.

Below: T-Mobile expected growth

5. Vol-control positioning maxed out.

“Stretched positioning leaves limited capacity for further equity additions and creates a more asymmetric flow backdrop should volatility rise”, says Deutsche Bank.
Volatility control funds are automated investment strategies that dynamically adjust their holdings between risky assets like stocks and safer holdings like cash based on current market fluctuations.
When price swings become wild and unpredictable, the algorithm reduces stock exposure and shifts money into cash or bonds to limit losses.

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