Quick Read – NVIDIA’s (NVDA) data center revenue hit $75.25 billion in Q1, up 92% year-over-year, as the AI infrastructure boom drives demand for expensive chips. – Producer prices for semiconductors are now climbing instead of falling, potentially ending the deflationary…
ilwind that quietly held U.S. inflation in check for 40 years. – New Fed Chair Kevin Warsh inherits sticky core inflation at 3% with little room to cut rates without risking a second inflation wave. – The analyst who called NVIDIA in 2010 just named his top 10 AI stocks. Get them here FREE
Kevin Warsh takes over as Fed Chair on Friday, May 22, inheriting an inflation problem that none of his predecessors faced. For four decades, falling semiconductor prices quietly held down U.S. inflation. That tailwind has reversed, and the AI infrastructure boom is the reason.
Headline Personal Consumption Expenditures (PCE) inflation ran at 4% in March, with core PCE stuck at 3%. The federal funds rate has held at 4% since January, while the 10-year Treasury yield ripped to 5% in May, near its 12-month high. Meanwhile, consumer sentiment is flashing red: the University of Michigan index printed 53.3 in March, recessionary-adjacent territory.