Nvidia Is Literally Out of This World

Market_Recon_TSP1_KL

The Fighting 69th

It was in the month of April

When the boys, they sailed away

And they made a sight so glorious

As they marched along Broadway

They marched right down Broadway, me boys

Until they reached the shore

And from there, they went to Washington

And straight unto the war

So, we gave them a hearty cheer, me boys

It was greeted with a smile

Singing here's to the boys who feared no noise

We're the fighting sixty ninth

- Casey, Kelly, Martin (recorded by many)

"Gentle when stroked, fierce when provoked" ... Happy St. Patrick's Day, gang.

Good Morning

Forgive my indulgence. Your author is both Irish Catholic and a veteran of New York's Fighting 69th Infantry Regiment as well as being a former U.S. Marine and a former Harlem Hellfighter. The 1st Battalion, 69th Regiment is the last surviving unit of the Civil War's "Irish Brigade" and still bears that nickname.

As a matter of fact, the glorious green flag of the Irish Brigade has been deployed with the 69th everywhere the U.S. Army has sent them ever since. St. Patrick's Day is the unit's special day. As an Irish kid from New York with two grandparents buried on the Emerald Isle, the day has always been special to me.

Garryowen in glory.

Nvidia's GTC Conference

Nvidia (NVDA) CEO Jensen Huang delivered his keynote address from San Diego on Monday. "Wow" is all I can say to what Huang said. If you know someone hiding from AI with their head in the sand, try to talk some sense into them. Adapt and make AI a tool used every day or fall by the wayside. That's really all one, especially one employed in "white collar" fashion can do. That, and invest in the future so when that tap on the shoulder does come, there has at least been some kind of hedge in place against one's own professional demise.

On Monday, Jensen Huang doubled down on the $500 billion revenue figure he threw around for 2026 last year... "We saw $500 billion in GPU demand last year for Blackwell and Rubin. I'm here to tell you that right here where I stand, one year after the last GTC, I see through 2027, at least $1T."

Huang added, "Demand for Nvidia GPUs is off the charts. AI can do productive work. Now, the next level is inference. Every time AI has to work and do tasks, it has to use inference and use tokens. Computing demand has increased by 1M times in the past couple of years."

Huang called this the "inference inflection" and stated, "Fusing structured information and generative AI will go through industries. Structured data is the ground truth of AI."

Understand this. Huang's prediction for $1 trillion in revenue is just for AI-capable chips, not for total revenue. Wall Street's consensus view for Nvidia's fiscal years 2027 and 2028, which run only though January 2027, is for a rough $835 billion in total revenue. To put it bluntly, Huang's projection for AI-driven revenue for his company is an incredible 19.8% above Wall Street's projection for Nvidia's total revenue over that same time frame. Adapt, kids. Especially for those of you who work for someone else and that someone else sees you as a business expense. Be long Nvidia? I am.

Launch 1

Nvidia also launched its Vera CPU, or central processing unit, which has been designed specifically for data processing, AI training and scaled agentic inference. Agentic for the one or two readers who may not have put two and two together, is defined as, "Having the autonomy and reasoning ability to act independently towards a goal."

This is where the diminished demand for costly white-collar labor is going to come from. Know how to run pipes or rewire electricity? You will last longer than your pals who took accounting in college, went into coding or manage money. But AI will eventually get to you, too.

Haung spoke further... "Vera is arriving at a turning point for AI. As intelligence becomes agentic -- capable of reasoning and acting -- the importance of the systems orchestrating that work is elevated. The CPU is no longer simply supporting the model, it's driving it. With breakthrough performance and energy efficiency, Vera unlocks AI systems that will think faster and scale further."

Cloud providers such as Alibaba (BABA) , Cloudflare (NET) , ByteDance, CoreWeave (CRWV) , Nebius (NBIS) and Oracle (ORCL) , as well as many others, have already committed to Nvidia's Vera CPU.

Walking on The Moon

Giant steps are what you take

Walking on the moon

I hope my leg don't break

Walking on the moon

We could walk forever

Walking on the moon

We could live together

Walking on, walking on the moon

-Gordon Summer, aka Sting (The Police), 1979

Launch 2

On Monday, Nvidia announced plans to bring artificial intelligence to space-based data centers. Incredibly, one of our very astute readers emailed me ahead of the conference in San Diego and mentioned that he thought data centers were going to space. Well, Chris, you're not just a smart fellow, you're a prophet.

Apparently, the Nvidia Space-1 Vera Rubin Module has 25 times more AI compute capacity than the Nvidia H100 graphics processing unit (which was state of the art like 20-minutes ago) and is one part of Nvidia's corporate strategy. Data centers moving into outer space have been gaining increased attention since Elon Musk merged his AI shop xAI into his space exploration company, SpaceX.

Now this. On Monday Jensen Huang said, "Space computing, the final frontier has arrived. As we deploy satellite constellations and explore deeper into space, intelligence must live wherever data is generated. AI processing across space and ground systems enables real-time sensing, decision-making and autonomy, transforming orbital data centers into instruments of discovery and spacecraft into self-navigating systems. You kids wonder why I never waver in my support for the former "Stocks Under $10" core portfolio holding Rocket Lab (RKLB) ?

The Future of Software

"Every SaaS company Will become an agentic company"

- Nvidia CEO Jensen Huang, March 16th, 2026

Thought we were done? It's incredible just how much ground Jensen Huang covered on Monday and how much I had to leave out just so that this article could be readable. Huang spoke about OpenClaw's ability to create agents using Nvidia's privacy and security controls. Huang said,"OpenClaw is the most popular open-source project in the history of humanity, and it did so in just a few weeks. It can manage LLMs (large language models), decompose a problem step-by-step, and it can step off and work with other agents. It has interoperability." Huang added, "The implications are incredible."

Nvidia's CEO then got a little granular: "Every company in the world today needs an OpenClaw strategy. Every SaaS company will become an agentic company. There is just one catch. Agentic systems within a corporation can access sensitive information and communicate externally. This obviously can't be allowed. So, we worked with OpenClaw to make it enterprise ready. This can now connect to the policy systems of all SaaS companies."

Peter Steinberger, the creator of OpenClaw, chimed in, "OpenClaw brings people closer to AI and helps create a world where everyone has their own agents. With Nvidia and the broader ecosystem, we're building the claws and guardrails that let anyone create powerful, secure AI assistants."

Marketplace

Monday was a great day for U.S. financial markets. We did inform in this column 24-hours ago that markets were set up for a technical rally. Not that the positive-looking price discovery from Monday should be taken with a grain of salt, but be careful. Head on a swivel. All of our mid-major to major-equity indexes closed in the green. The S&P 500 and Nasdaq Composite both gained more than 1% for the day. All 11 S&P sector SPDR exchange-traded funds closed in the green as well, led by Technology (XLK) , thanks to "The Fonz" also known as Jensen Huang.

In addition, winners beat losers by better than two-to-one at both exchanges, while advancing volume took a commanding share of the composite action for names listed at both exchanges. All good? Well ... aggregate trade did broadly contract on a day-over-day basis, so Monday WAS NOT a "day one" bullish reversal of trend. Oil was down and U.S. equities were higher. Oil is up this morning and U.S. equity index futures are trading lower. There was one rather positive take-away, though.

Monday ended up being an "inside day" meaning that the high and the low of the S&P 500's trading range for the session fit neatly inside the range of the day prior. This one-day pattern often signals an imminent reduction in volatility, so if that is what you need right now, you may be able to stick that feather in your cap and call it macaroni. Rock & Roll.

Economics

(All Times Eastern)

08:15 - ADP Employment Change (Weekly): Last 15.5K.

08:55 - Redbook (Weekly): Last 6.2% y/y.

09:00 - Pending Home Sales (Feb): Expecting -1.1% m/m, Last -0.8% m/m.

1:00 p.m. - Twenty-Year Bond Auction: $13B.

4:30 - API Oil Inventories: Last -1.7M.

The Fed

(All Times Eastern)

Fed Blackout Period.

Today's Earnings Highlights (Consensus EPS Expectations)

After the Close: (DOCU) (.95), (LULU) (4.78), (OKLO) (-.17), (ZTO) (3.15)

At the time of publication, Guilfoyle was long NVDA, RKLB equity.