In today's episode, Tyler Herriage dives into the latest market action after a strong start to the week, highlighting the impressive rebound in major indexes and the standout performance of individual stocks. He takes a close look at the current buzz around Google’s new TPUs versus Nvidia’s GPUs, breaking down what these innovations mean for investors and whether there’s truly an AI bubble brewing.

Don’t look back because the market is closed. Good Tuesday afternoon everyone. Tyler Herriage here with you for today’s VRA Investing podcast. Hope you all had a fantastic day out there today. It’s tough to complain when you get a start to the week of like this, especially for individual names out there that have been on some really big runs. And of course our major indexes, you know, bouncing off of those lows from last week. Really good stuff to see here.

Which of course I’ll cover all of here today on the podcast. But quickly, I will be on Wayne Allen Root Show War zone tonight at 5:30 Central Time, 6:30 Eastern. You can find it on Gateway Pundit. You’ll see the link there at the top. You’ll also see it on Wayne’s X feed or Twitter feed, as well as Rumble. So come and join us. We’re going to have a good time as we always do. Thank you, Wayne, for having me back on.

[00:01:07]:
There really is nobody better. So looking forward to that interview here tonight. We’ve got a lot of fun topics to break down here and I’ve got a short time to do it in. So we’ll jump right in today. We’ll cover, you know, one that we’ve been getting a lot of requests for. Here is the Nvidia story, especially with this latest news from Google, their chips, their TPUs as they’re calling them, compared to Nvidia’s GPUs. We’ll break that down a little bit here and maybe some surprising factors in there as well as some big news from the White House overnight. I’ll just give you a little hint here.

The innovation revolution is only just beginning. It will also cover the home builders getting a big, big rally today, yields heading lower. We’ll cover some of the reasons for that as well. Got some good news on that front. And finally, our major indexes, as I mentioned earlier, good start to the week this week. All four of them now getting above all of their major moving averages. Really good stuff here, really to get away from so many of the doom and gloom naysayers out there who’ve said this is an AI bubble that has popped. Well, I’ve said this on the podcast last week as well.

[00:02:35]:
I know Kip has too. If this is a bubble popping, then this has been the most boring bubble in stock market history. Maybe not in stock market history, but really an incredibly mundane bubble. We talk about it here often. During the 1995-2000.com melt up, the NASDAQ rallied 585%. Well, even at the highs of just a month ago, the Nasdaq had rallied roughly 140%. So 580 versus 140. Not much of a bubble just yet.

And the companies from the dot com era don’t have, didn’t have earnings like we’re seeing here today. So with that said, let’s start off with the tech theme because we are getting a lot of questions about this one as Google has been on a phenomenal run here since Warren Buffett announced Berkshire Hathaway’s investment into Google. You know, by some, some metrics, Google has a weird stock holding scenario where it’s a little bit harder to get the full valuation, but right at a 4 trillion dollar market cap here, which would make them the fourth company to hit a 4 trillion dollar level, joining Nvidia, Apple and Microsoft there. Now if you’re a regular listener here, you know, we’ve talked a lot about these market caps after Apple was the first trillion dollar company just about seven years ago now. And what we see going forward into 2030, where we think will likely almost certainly, I hate to say certainly though in stock market terms, right, that’s a fool’s errand to say something like that. But we’re looking at companies that will cross a 10 trillion dol valuation and beyond, especially if this innovation revolution can do what we think it’s going to do. We’ll break down some of the reasons for that here today, but we broke them all down in our book the Big Bribe. And really those expectations might even be on the low side if anything.

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Quickly here though, if you’re distracted by my mustache today, rocking the Movember mustache for men’s health awareness. I thought I’d rock it tonight for Wayne show as well. So hopefully you get a good kick out of it here on the podcast as well. But okay, let’s get serious here because this is is a serious conversation and again, we’re getting a lot of questions about it. So I wanted to break it down a little bit. You know, Google has had out and really in the last week or so unveiled these TPUSC, the tensor processing unit compared to Nvidia’s GPUs, which if you’re on my podcast last week I broke down after Nvidia’s earnings how CPUs used to make up 90% of chips in supercomputers and how that number has almost completely swapped with GPUs, the graphics processing units specifically from Nvidia, which Now make up 85% of the chips that go in to supercomputers. These graphic processing chips have proven to be much more than, than what they sound like, what people considered them in 2017, 2018. They’re just for gamers.

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They’re graphics processing units. They’re just, you know, gamers. Okay. You can buy mine Bitcoin with them. Well now it’s turned out that you can train AI models with them very well also. So what is this tensor processing unit? It’s Google’s version of their AI chip. So to break it down just a little bit of what the difference is here, Nvidia. I covered this a few weeks back when talking about the Tesla AI chips.

Nvidia is the best all around general purpose chip out there. This tensor processing unit are very specific to Google’s infrastructure architecture. Okay. Whether it’s processing Google’s style of data, their cloud compute platforms and specific to Google’s applications. Okay, I’ll break down a little bit more of what that means. So Nvidia is the best all around. Okay, really simple terms here. The best all around chips.

It’s like having a Swiss army knife versus the TPU being a very specific style, you know, a carving knife or whatever knife comparison you want to make, but kind of a one use case. That’s a little bit oversimplification, but the analogy works for this podcast here today. So on the cost side, TPUs are more cost effective. Again, very specific use case. GPU’s more expensive but very versatile. Let’s just see. I’m going through my notes here to kind of break down the very specific, you know, the efficiency of Google chips. Again, for their specific use cases, their energy consumption is less.

[00:07:52]:
So for Google’s AI ecosystem, they want to develop their own chips. We’re seeing the same thing from Tesla. We got Jeff Bezos announcing a chip company which will likely work on Amazon’s services. Right. However, these aren’t one offs. Right. They’re not switching completely over just to their own chips. These will likely work in a hybrid style of model.

Okay. Where you have Nvidia chips still for the flexibility, for the versatility and then the TPUs or in Tesla’s example, as Elon stated in the Saudi investment forum last week, they’re going to continue to buy Nvidia chips and as well. So the real concern came out when Anthropic announced this deal for access to Google chips, which remember Anthropic also has a deal with Nvidia Meta is the rumor mill of going to be announcing the that they’re going to start using these chips as well. Again, these are in addition to Nvidia chips. That point can’t be understated. And what really is probably the most important factor of this is they aren’t even buying these chips. You know Nvidia, you can buy them off the shelf, plug them in the way you want, use them how you want. For these deals with Google and their TPUs, they aren’t buying chips, they’re renting cloud compute space.

[00:09:17]:
So this isn’t even a chip story technically for Google, this is a cloud story for Google. As we’ve seen, the cloud compute side of things has been one of the fastest engines of growth for Amazon with Amazon Web services, for Microsoft with I believe it’s Azure and now Google as well with their cloud services. There’s so many users though on the Google platform. I believe it’s 2 billion users on the, on the Google platform. That’s things like Gmail, Google Drive for, for business, you know, whether Android phones, all of these kinds of things. So the headlines here are misleading. It sounds like they’re buying TPUs from Google when in reality they’re just renting cloud compute space. So again this isn’t a really direct competition to Nvidia’s chips.

And overall for again the versatility of Nvidia’s chips, the TPUs don’t come anywhere close to what Nvidia’s GPUs can do. So I think that’s a big part of the story here. We’ll break it down a little bit more as we go further, further into the innovation revolution here. But again Google becoming the fourth company here to hit a 4 trillion dollar valuation. It helped that last week they launched their Gemini 3 as well. So the TPUs do help with their AI platforms. So again, completely different story than what we’re seeing with Nvidia really comparing apples to oranges here. And so far though Gemini, the, the third version here of it has blown away all expectations, has broken some records on AI performance.

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So it makes sense that their stock is breaking records here as well with Google. Let’s see, what were they, what did they finish up on the day to day? Google up over one and a half percent. Just a huge move in the last two sessions here from Google. But overall additional competition isn’t a bearish case scenario for our innovation revolution for AI. Ultimately we see it as bullish for the US as a whole. We want to continue, you know, as the, the largest market in the world, the closest to free market out there. We want to foster More competition here in the US So that we do win the AI race. That’s a huge part of this.

I want to make sure I don’t have anything else here in my notes. You know, specifically just to Nvidia. Yes, we finished lower today. Yes, it’s been a pullback for the stock here, but man, did we just forget the incredible earnings quarter that they had. Record breaking numbers across the board for Nvidia estimates for the fourth quarter as well. Breaking records. We wouldn’t be surprised here if this is when Jensen Wang and their team come out with a new headline. They’re probably prepared for this, right? Something exciting is probably right around the corner here for Nvidia.

Something outside of just these deals that they’ve announced. You know, as we’ve seen though, the Blackwell chips are in such high demand they can’t even keep them in stock. Right. This is an incredible problem to have. And great news for Taiwan Semi as the manufacturer, right? Nvidia designs these chips, Google designs these chips. TSM is the one who makes them at the end of the day. But again, wouldn’t be surprised to see some big news coming out of Nvidia here. We still continue to like and own the stock here.

[00:12:54]:
We also own a leveraged semiconductor etf. So we like this space. We continue to like this space as a whole. And if you’re not here with us already, you want to find out exactly what that is, come and join us for two weeks and free@vra letter.com but again, as we said here often, this innovation revolution is still in its infancy as we see it. You know, I mean, there’s just so many bullish factors to it here that I don’t even know where to begin. But overnight we got another big one here as the White House announced a new executive order from President Trump. And for some of the worries about the energy needs for this sector, let’s see if we can address a few as last night, executive order launching the Genesis mission. You know, I don’t have time to break down the full scope of this year, but it is a dedicated, coordinated national effort to unleash the new age of AI accelerated innovation and discovery that that can solve the most challenging problems of the century.

That is a bold, bold claim here. And what they go on to say here is this is a Manhattan style project, okay? That’s how seriously they’re taking this Manhattan Project. Of course, if you didn’t see Oppenheimer, the nuclear race, this is going to be on scale aimed at harnessing AI for Supercomputing, giving access to government data they’ve never had before. And likely that’s some of our data. But specifically on the scientific side, the national laboratory resources to accelerate scientific discovery, enhance national security and drive innovation and energy, specifically focusing on advancing fusion reactors, optimizing nuclear designs for safety and efficiency, and modernizing the the power grid. So as I mentioned, the energy concerns for this space nuclear is going to be a key part of that. And as Elon thinks here as well, solar power from space, not even here on Earth, from space satellites collecting solar power right for these data centers to run in orbit. I mean all kinds of incredible things.

[00:15:15]:
Again, the innovation revolution of things. This effort will actually be led by by the Department of Energy. So we know that it’s got the administration’s full attention here, especially with a massive project like this announced. You know, as more details come out in addition to this paper, we’ll talk about it more here on the podcast. But pretty incredible stuff here. Again, we’re just at the beginning of this and I think this pullback will prove to be an incredible buying opportunity. As Kip said yesterday, in about a month from now no one’s going to even remember that this happened. So let’s quickly cover our major indexes here on the day today as I got to get start getting ready here in a little bit for my interview tonight.

But today, all of our major indexes crossing above their major moving averages. Really textbook bull market action with all four of them essentially bouncing right off of their 100 day moving, moving average serving as a great support level here. And we had small caps lead the way. This is their time to shine their year here or their time frame of the year. And it is seasonally speaking, one of the most bullish times of the year for the markets as a whole. Small caps though up 2.14% on the daytoday, Dow Jones up 1.4% on the day and just what you want to see from them, transports leading the way up 2.27%, putting in a higher high or excuse me, a higher low it looks like on their way to a higher high on their chart as well. NASDAQ here, excuse me, The S&P 500 was next up 910 of 1% and then finally the NASDAQ up 67%. We didn’t get the semi outperformance, the semiconductor outperformance you would have liked to have seen on a day like today as Nvidia was our laggard here as it’s right at some important Support levels here as well.

[00:17:16]:
Again, we look at it as a buying opportunity in one big reason for buying as a buying opportunity as a whole. We just got some of the best internals we’ve seen in over a month. And at the same time, as I mentioned, the naysayers, the doom and gloom, we’ve seen the AI numbers a lot more bears than bulls. Fear and greed index still at just a 16 here. And one more chart here from Ryan Dietrich. He shared this a few days ago. Really perfect timing. We’re right.

We’ve entered the most bullish time of the year. This is where we just got out of, right? That is a typically weak period of the month of November. And now here we go. And the market has corresponded perfectly to that here. All right, so for the internals on the day to day, again, the best internals you’ve seen in just about a month. Over a month since this shakeout began, Advanced decline over 4 to 1 positive on the NYSE. Just under 3 to 1 positive on the NASDAQ. 52 week highs, the lows, solidly positive for both the N.Y.S.E.

and the NASDAQ. On the volume side, great numbers for both. But kind of flip flop from yesterday we had roughly 75% plus upside volume on the NASDAQ. Today we got that from the NYSE, 75.5% upside volume also 2 to 1 positive on the NASDAQ today. Onto our sectors here, this is an important one for us here. You know how bullish we’ve been on housing specifically and that was one of our leaders on the day to day. The real estate sector in the S and P is mostly made up of REITs. So we like the home builders here which had a huge, huge day to day, up 4.2% as pending home sales came in big versus expectations of 0.2% month over month growth coming in at 1.9%.

[00:19:15]:
You know, these analysts just continue to get these things wrong over and over again. Then we also saw yields heading lower on the day today, especially on the long end of the curve. The 30 year bonds here, treasury bonds dropping below all of its major moving averages. The 10 year down 910 of 1% right at a 4 right now. And it also helps that Kevin Hassett has been emerging here kind of the rumor is that he’s the potential front runner now to replace Jay Powell as chairman of the Federal Reserve. We know that he has agreed and echoed the views of Stephen Myron for rate normalization. Getting back to a lower level in line with where we’re Seeing inflation at, you know, truflation continues to come in just above a 2. So what are these Fed officials talking about that they’re not going to cut in December? Well, the market thinks Otherwise.

Here’s the CME’s Fed watch tool now at an 80, roughly 85% chance of a rate cut in December. That’s been our call here all along. The markets on Poly Market expect it as well. All right, finally here for today, our VRA commodity. Oh, I didn’t cover our sectors real quick here. 8 out of our 11 sectors finishing higher on the day today. Actually led by healthcare and then consumer discretionary and communication services, essentially a proxy for tech. Our laggards on the day, energy, utilities and tech actually did finish lower.

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I’m sure Nvidia, you know, really didn’t help out much there as it’s one of the largest holdings in just about all of these ETFs. All right, so for our V commodity watch, gold down slightly on the day to day. Last trade here, $4,400 $165 an ounce. Gold miners did finish lower here today but well off the lows of the dayto day, down just slightly. That is another group we remain very bullish on here. Silver last trade here above $51 at $51.08 excuse me an ounce. Copper at now $5.11 a pound up just, just roughly half a percent on the day to day. Oil moving lower.

Likely a little bit of an impact on the energy stocks there and of course with the nuclear story as well. But $58.11 a barrel. And finally here for today, bitcoin. Get a final look here. Now. Lower on the day to day by 2.3% at 87,94 a Bitcoin. You know about time here for bitcoin to start to go on a move. Texas here just announced a 10 million dollar.

[00:22:13]:
So nothing crazy, a 10 million dollar buy of Bitcoin for Texas, a strategic bitcoin reserve. We’ll see if more states start to follow there and get some demand back into bitcoin. You know we’re in the most bullish time frame of the year for bitcoin here as well. But folks, hope you can join me tonight on War Zone Wayne Allen root show again. You can find it on Gateway Pundit on Wayne’s X feed or on Rumble as well. Just search warzone and it’ll pop right up. So hope you can join us at 5:30 Central Time. That is all we have time for here today.

Please be sure to subscribe to receive our VRA podcast every day at the market close. You can sign up@ vraletter.com, click the podcast link at the top and we’d love to have you with us. Until next time. We’ll see you back here tomorrow for the close. Have a great Thanksgiving, everyone.