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Key Points:
Nvidia’s AI earnings, dividend hike and buyback framed as long‑term support for the stock Rising bond yields and oil market dislocations viewed as key macro risks Mega‑IPOs like SpaceX and OpenAI seen as major tests of market liquidity
Global equity sentiment strengthens, according to Ira Epstein from Linn & Associates, with Wall Street rebounding as Nvidia’s blockbuster numbers reinforce the AI thematic. Nvidia’s forecast for US$91 billion in second-quarter revenue, a sharply higher dividend and an US$80 billion buyback are seen by Epstein as underscoring its status as the “buy of buys” on an earnings basis, despite volatility after results. He suggests the stock’s valuation versus peers supports a long‑term, gradual return profile rather than a rapid surge to a projected US$4 trillion market capitalisation.
Epstein points to rising bond yields and elevated borrowing costs as a mounting headwind for highly leveraged tech hyperscalers, while oil’s sharp slide reflects hopes of a US–Iran deal to ease Middle East tensions. He notes record US crude draws, including from strategic reserves, and argues this pattern of inventory depletion could force a supply crunch if geopolitical risks persist. Ebola’s spread and new US airport screening are highlighted as an underappreciated macro risk.
On corporate flow, Epstein views prospective mega‑IPOs such as SpaceX, OpenAI and Anthropic as potential liquidity vacuums, questioning what investors will sell to fund them. He also expects solid numbers from Walmart ($WMT) as US consumers trade down, while discretionary spending on luxury names lags.
