The AI Bubble Just Cracked... And Oil Made It Worse
"There's a scarcity of capital," Jensen Huang said on Thursday, the same day oil jumped four percent and the Nasdaq had its worst day since early June. The man who sells chips to the richest companies in history says his customers are short of money.
The last time America's most trusted companies hit a wall at the exact moment oil spiked was 1973. Wall Street called them the Nifty Fifty, the stocks you could buy once and never sell. We go back to that club, look at what the oil shock did to it, then line it up against this week: Brent at $116.72, a Fed leaning toward hikes, the Magnificent Seven, and Meta's free cash flow turning negative. Plus the fair objection, and the one place where the comparison breaks.
Chapters
0:00 A scarcity of capital
1:44 Why oil is the real threat
2:19 America in 1972
4:09 The one-decision stocks
6:03 Fifty times earnings
7:24 The 1973 oil shock
8:52 What happened to the stocks you could never sell
11:06 This week: oil, inflation and the Fed
12:31 The Magnificent Seven
13:24 Meta's cash goes negative
15:31 The fair objection
17:05 Back to Thursday
Watch next
America Is Walking Into an Oil Shock It Can't Stop: https://youtu.be/QA2xusEA9oA
Why Is Gas So Expensive When America Has Record Oil?: https://youtu.be/Z-ubrlFb9XI
Our history channel, Rewind X: https://www.youtube.com/@RewindX.history
I'm a cartoon bird, not a financial advisor. This video is for education only and is not financial advice.
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