Tesla + Intel Shock 🚀 | LTHs Buying & Broadcom’s AI Explosion 💥

On this Tuesday, the discussion focuses on a comprehensive analysis of charts, on-chain analytics, and current global events, identifying both market winners and losers. The segment, titled "Escape Velocity," emphasizes that investing can be a means to achieve significant financial momentum. The discussion begins with a look at some challenging news. The crypto fear and greed index remains at 11, indicating "extreme fear," marking the longest period of such sentiment in seven to eight years. Concurrently, U.S. tech employment, while seeing growth in areas like data processing, has largely declined since its peak in January 2022, despite the ongoing AI revolution. This counterintuitive trend suggests that the current AI boom is distinct from previous tech cycles. Geopolitical tensions are also addressed, with a brief mention of potential saber-rattling and ongoing peace talks. The market’s quick rebound from early morning losses, turning green, is attributed to Pakistan reportedly requesting an extension to a deadline, though details remain unclear. Regarding Bitcoin, the presentation touches on "quantum risk," reassuring viewers that while certain wallet types are susceptible, this risk is six to seven years away and will likely be mitigated before becoming an immediate threat. It's noted that if quantum computing becomes a reality, other systems would likely be compromised before Bitcoin. The evolution of Bitcoin wallet types over time is also illustrated. In the AI sector, Anthropic has significantly surpassed OpenAI in terms of analyzed revenue, reporting $30 billion compared to OpenAI's $18 billion. This shift in market interest could pressure Sam Altman to expedite OpenAI's IPO, despite internal reluctance, to secure exit liquidity before market conditions change. Another interesting AI development involves Google, which had reportedly developed an AI equivalent to ChatGPT based on its Lambda model. However, Google chose not to widely release it due to its "toxic" and "unreliable" raw behavior, highlighting Google's high standards for product quality compared to other companies. Moving to positive news, Bitcoin had a strong performance last week, outperforming other cryptocurrencies. It was up 4% compared to the previous Tuesday, while Ethereum and Solana saw slight declines. Overall, Bitcoin has shown a modest increase of approximately 2% for April so far, following a similar performance in March. Digital asset flows were positive last week, with about $224 million pulled in, exceeding expectations given hawkish Federal Reserve sentiments and global instability. Bitcoin saw significant inflows, particularly on Monday, with nearly half a billion dollars entering the market. BlackRock and Fidelity were major contributors to these inflows, prompting speculation about whether investors are front-running the anticipated Morgan Stanley Bitcoin ETF. XRP also saw substantial inflows, attributed to claims that it could replace Swift, though the presenter expresses skepticism about this given XRP's older technology. On-chain data for Bitcoin indicates a positive trend: long-term holders, who had been selling in 2023-2024, have spent the last 155 days accumulating Bitcoin. This accumulation phase typically reduces selling pressure and, historically, has often preceded price spikes, demonstrating "strong hands absorbing the dip." This is happening despite some treasuries, like Nakamoto and Marathon, selling portions of their Bitcoin holdings. A significant development is Morgan Stanley's upcoming launch of a Bitcoin ETF. While the ETF itself is notable, the more impactful aspect is the potential for Morgan Stanley's 16,000 sales representatives to recommend a 4% allocation to Bitcoin for asset holders with $9 trillion in assets. This could drive substantial flows into Bitcoin, challenging the notion that Bitcoin is "dead." The broader macro environment, however, remains cautious, with the stock market also experiencing "extreme fear" and oil prices spiking above $114 a barrel. Tesla's stock performance is highlighted as a "roller coaster," experiencing significant dips due to factors like missing "liberal rules" (likely referring to regulatory compliance or market expectations), a downgrade by JP Morgan, and increased selling by "weak hands." However, Cathie Wood's ARK Invest reportedly bought 40,000 shares during this period. Despite recent drops, Tesla's price has significantly increased over the past year, three years, and five years, underscoring its volatility and potential for long-term gains for patient investors. The concept of "mean reversion" is emphasized, suggesting Tesla's price will rebound. Other Tesla news includes the closure of a NHTSA probe into 2.5 million Teslas over Full Self-Driving (FSD) issues. FSD version 14.3, a "10x parameter model," has been released, promising enhanced capabilities, though it's not yet at the level Elon Musk previously described. This update is expected to significantly improve Tesla's autonomous driving, which already surpasses human driving in many aspects. A surprising announcement is Intel's collaboration with Tesla on the "Terafab" project. The Terafab, intended to be the world's most advanced and largest semiconductor factory, will benefit from Intel's extensive experience in chip manufacturing, including 2-nanometer technology, and government funding. Intel's role will be to assist in the design, manufacturing, and packaging of high-performance chips, including the AI5 chip, which boasts 50 times the performance of its predecessor and will power Optimus, Cybercabs, and FSD. This partnership, along with Tesla's collaborations with XAI and SpaceX, is seen as highly synergistic. The market has reacted positively, with Intel's stock jumping 3% on the news and up 38% for the year, signaling a "resurrection" for the company. The Terafab, potentially the largest building ever constructed, will be funded in part by an anticipated SpaceX IPO, which is projected to have a valuation exceeding $2 trillion. Broadcom also made headlines with significant orders from Google and Anthropic for TPUs (Broadcom's version of NVIDIA GPUs) to support their AI programs. This five-to-six-year deal, extending to 2031, grants Broadcom access to 3.5 gigawatts of Google's AI chip capacity, which is three times larger than the planned XAI data center in Memphis, Tennessee. This massive capacity will power hundreds of thousands of high-end TPUs and connectivity solutions. Broadcom's stock has risen from lows of $270-$280 to over $330 in just a few days, demonstrating its strong performance despite the market downturn. The segment concludes with a meme reflecting the "degenerate" nature of traders who capitalize on market dips despite broader anxieties, illustrating a preference for taking advantage of opportunities rather than dwelling on low-probability risks.