SpaceX Just Filed to IPO — The Numbers Are Ugly

Summary

Prof G Markets – “SpaceX Just Filed to IPO — The Numbers Are Ugly”

Date: May 21, 2026
Hosts: Ed Elson (Prof G Markets), Guest: Patrick Boyle (King’s College London professor, ex-hedge fund manager, finance YouTuber)
Segment Heads: Zed Francis (Convexitas CIO, on Nvidia)
Main Theme:
A first look at SpaceX’s freshly filed IPO prospectus, why the numbers are concerning, and what it signals for the company, markets, and retail investors. The episode also quickly recaps Nvidia’s record-breaking earnings and discusses profound government corruption affecting market trust.

---

1. SpaceX IPO Filing: First Impressions & Ugly Financials

[02:12 – 14:40]

Main Takeaways:

• SpaceX is going public (NASDAQ: SPCX), aiming to raise at least $80 billion, possibly valuing it at nearly $2 trillion – the largest IPO ever.
• First time real financials are public: $4.7B Q1 2026 revenue but $4.3B net loss in the same quarter; revenue grew 15% YoY.
• Cumulative losses total $37B since inception.

Notable Observations:

• Marketing over Substance:
  “The first 15 or 20 pages were photographs of rockets, which is a little bit unusual and somewhat reminiscent of the WeWork IPO document where there were lots of photos in there.”
  – Patrick Boyle [04:11]

• Speculative New Businesses:
  Mentioned possible future revenue streams, such as:

  • Point-to-point travel by rocket
  • In-orbit or moon manufacturing
  • Asteroid mining
    “Not all of these businesses are functioning at the moment.”—Patrick Boyle [05:55]

• Losses and Adjusted EBITDA Tricks:
  SpaceX shows over $1B “adjusted EBITDA” for Q1 2026, but only after adding back $2.5B of depreciation/amortization—the actual cost of replacing rockets and Starlink satellites.
  “EBITDA is not an interesting number for a company like this… You want to look at, basically, is it profitable or is it on the path to profitability? It doesn’t seem to be.”
  – Patrick Boyle [05:55]

• Elon Musk’s Control: Musk will retain 85% of voting shares and requires arbitration for lawsuits, making this IPO “very much for the Elon Musk fan.” [06:55]

• Reliance on Vision, Not Numbers: “This is very much a vibes-based IPO. It's for people who are excited about Elon Musk. It's not really for people who are going to scrub through the numbers.”
  – Patrick Boyle [07:50]

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2. SpaceX’s Breakout Financials: The Good, The Bad, and the AI Problem

[08:16 – 10:39]

• Mission Statements Border on Sci-Fi:
  “The mission of this company is to, quote, ensure species level redundancy and that the light of consciousness will not be tied to a single planet.”
  – Ed Elson [08:16]
  (“Light of consciousness” is mentioned 10 times in the filing; AI, 1,200 times.)

• Business Segments Broken Out:

  • Space (launches): Lost $662M in Q1
  • Connectivity/Satellites (Starlink): Turned a $1.1B profit in Q1
  • AI: Lost $2.5B in Q1—primary drag on finances

• Skepticism on Data Centers in Space:
  “It’s not clear why it would be cheaper to put a data center in space than somewhere on the Earth… it might be cheaper to put one on the bottom of the sea.”
  – Patrick Boyle [09:26]

---

3. IPO Timing, Motivation, and Future Valuation

[10:08 – 14:40]

• IPO Urgency:
  SpaceX is “burning so much money” that its backers want an exit while markets remain hot and before similar IPOs—OpenAI, Anthropic—can crowd investor interest.
  “This is a race to get this stuff out before the others.”
  – Patrick Boyle [11:32]

• Bull Case? Hard to See at These Valuations:
  “This is the most out there valuation of any company you can think of… SpaceX just isn’t [profitable], it’s a money furnace.”
  – Patrick Boyle [12:27]

• AI Business Issues:
  Musk’s separate AI company (xAI) was acquired by SpaceX for $250B, but within weeks Musk “announced that the tech stack… was not working and had to be rebuilt from the ground up.”
  – Patrick Boyle [13:08]

• Post-IPO Index Inclusion:
  15 days after listing, SpaceX will be included in major indices—passive investors will be forced buyers, which may drive up post-IPO demand.

• Quote:
  “It’s a wonderful, cool science experiment, but that doesn’t mean that it’s obvious how you convert all of this stuff into dollars and cents.”
  – Patrick Boyle [14:12]

---

4. OpenAI & The IPO Tech Gold Rush

[14:40 – 17:01]

• OpenAI is also going public:
  Ed notes increased IPO activity as AI companies race each other to market.

• Caution on AI Bets:
  “All of this AI stuff, it’s really early… Are you investing in the Google of search, or the Yahoo, or AOL? Because being first doesn’t necessarily make you the big winner.”
  – Patrick Boyle [15:13]

• Winners Take All… Or Not:
  If AI becomes more commoditized (like Uber vs. Lyft model), none of these companies will have the pricing power the market now assumes.

---

5. Nvidia: Earnings Recap & Market Take

[20:37 – 28:45]
Guest: Zed Francis (Convexitas)

• Blowout Quarter:

  • $81B in revenue (+85% YoY)
  • Data center revenues up 92%
  • $80B stock buyback + massive dividend hike

• Market Response:
  The options market was expecting a 5.5% swing; actual stock movement was muted.
  “I think we’re kind of at the point where Nvidia is the new Apple almost—it’s just a boring event.”
  – Zed Francis [21:44]

• Why Nvidia Commands a Premium:

  • Moving from cyclical hardware to a “recurring revenue” (software/services) model, like Apple.
  • “Nvidia has more forecastable revenues in the out years… and thus you get a higher valuation.”
    – Zed Francis [24:41]

• Valuation Discussion:
  Traded at mid-20s forward earnings (in line with S&P 500).
  Biggest risk: is this AI/data center “gold rush” temporary?

• No More China Sales:
  No chips shipped to China this quarter vs. $4.5B a year ago—but “wouldn’t be surprised if they’re getting… revenue through other sources.”
  – Zed Francis [28:15]

---

6. U.S. Financial Corruption: Trump & the IRS

[29:00 – 33:02]

News Recap:

• Trump and family granted “forever immunity” from IRS prosecution/investigation after Trump drops $10B lawsuit against IRS.
• DOJ pledges “the US government will be forever barred and precluded from prosecuting or pursuing tax claims against Trump or his family.”

Host Commentary:

• “Now at a certain point, there’s just not much commentary I can even provide here… Do I really need to argue why that’s bad?”
  – Ed Elson [31:30]

• Market Impact:
  “It erodes faith in the system of markets. It creates this belief that… the rules do not apply.”
  – Ed Elson [32:12]

---

Notable Quotes & Moments

• On SpaceX IPO Motivation:
  “This is very much a vibes-based IPO... It’s for people who are excited about Elon Musk... not for people who are going to scrub through the numbers.”
  – Patrick Boyle [07:50]

• On Market Systemic Risks (re: Trump news):
  “It erodes faith in the system of markets… makes Americans assume, correctly, that the system is rigged.”
  – Ed Elson [32:12]

• On Nvidia’s New Normal:
  “Nvidia has turned into an established veteran company… We’re kind of at the point where Nvidia is the new Apple almost—it’s just a boring event.”
  – Zed Francis [21:44]

---

Key Timestamps

| Time | Segment | |----------|------------------------------------------------------------------------------------------| | 02:12 | SpaceX IPO financials and prospectus overview | | 04:11 | Guest Patrick Boyle on IPO document and financial key points | | 08:16 | Discussion on mission statements and business segments | | 10:08 | Market context: urgency/timing of SpaceX IPO | | 14:40 | Brief on OpenAI going public; IPO tech “land rush” | | 20:37 | Nvidia earnings analysis begins (Zed Francis guest) | | 24:41 | Nvidia’s model: commoditization vs. recurring revenue | | 28:15 | Nvidia and risk/exposure to China | | 29:00 | Trump granted total immunity from IRS investigation—market and systemic implications | | 32:12 | Final editorial: Faith in markets and system fairness |

---

Final Takeaways

• SpaceX’s IPO is being called a “vibes-based” event—with little justification in the numbers and much more in the “vision” and personality cult around Elon Musk.
• Massive losses masked by selective accounting (adjusted EBITDA); big bets on unproven businesses.
• Nvidia continues to defy gravity but is now “the new Apple”—dependable, high-priced, and in the spotlight for what comes next.
• Systemic political corruption is now so overt that it barely elicits commentary—yet its effects on market trust are profound.

If you’re a retail investor, the key point is caution: In 2026’s frothy IPO market, don’t confuse ambition for cash flow, and don’t assume that the system isn’t tilted. Know what you’re buying—and why.

Transcript

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Selling market Welcome

[Ed Elson]

to Profit you Markets. I'm Ed elson. It is May 21st. Let's check in on yesterday's market vitals. The major indices all climbed more than 1% after President Trump said talks with Tehran are in the final stages. Brent crude declined even though Trump also said, quote, we're going to do some things that are a little bit nasty if a deal wasn't made. Treasury yields also stumbled. Tech rallied ahead of Nvidia's earnings. More on that later. And finally spread. Speculation swirled all day in anticipation of IPO filings from SpaceX and OpenAI. We will get into that right now. SpaceX has officially filed to go public. In a prospectus filed with the SEC yesterday, SpaceX said it will list on the NASDAQ under ticker SPCX. The company is looking to raise $80 billion or more, which would make it the largest IPO in history. The prospectus offers the first peak to SpaceX's financials before the company goes public on June 12th. So lots of numbers to discuss here. Today we're speaking with Patrick Boyle, professor at King's College London, former hedge fund manager and host of one of the Most popular finance YouTube channels. Patrick, thank you so much for joining us again on the show to discuss again SpaceX the filing for which literally came out about 15 minutes ago, 20 minutes ago. So we've had that amount of time to get up to speed on it. But there are some interesting things here. I'll just start with some of the financial data that we learned. $4.7 billion in revenue in Q1 2026, $4.3 billion in net losses in Q1 revenue grew 15% from last year. But plenty other things that we could talk about. Where would you like to start? What strikes you?

[Patrick Boyle]

Yeah, I mean, you know, to be honest, it's a fairly interesting IPO document. I mean, I'm sure you saw the first 15 or 20 pages were photographs of rockets, which is a little bit unusual and somewhat reminiscent of the WeWork, you know, IPO document where there were lots of photos in there. You know, other things that were interesting. The company has lost $37 billion since Inc. Perception. There's lots of stuff. There's some new business stuff in there. There's talk about point to point travel where people will be able to travel from place to place on rockets rather than airplanes. There's talk of, I believe I saw in orbit manufacturing or at least manufacturing on the moon. But I've noted down in orbit. I'm not sure if that's correct. Asteroid mining is another business that they expect to make money from as.

[Ed Elson]

Yeah, I mean when we spoke with you on this topic, one of the things you pointed out is that the financials here are just a little bit concerning, especially if you're looking at a company that's going to go public at $2 trillion. That's at least what people are expecting. Close to 2 trillion.

[Patrick Boyle]

Yeah.

[Ed Elson]

One thing that struck me is they are losing money. But they also included their adjusted EBITDA, which they reported was over $1 billion in Q1 20, 26. And I couldn't help but notice the fact that they, you know, in order to get to that number, you have to add back almost two and a half billion dollars in depreciation and amortization costs, which to your point, is their whole business. Because they're building rockets?

[Patrick Boyle]

Yeah, because it's the cost of the rockets. You know, there's huge R and D to build the rockets. And then the depreciation, you know, they put all those Starlink satellites up there, they last about five years and then they fall out sky. And so that is your depreciation. They have to constantly replace them. So it's not. EBITDA is not an interesting number for a company like this. You want to look at, basically. Is it profitable or is it on the path to profitability? It doesn't seem to be. There's other stuff in there as well. I don't know if you noticed that Elon Musk will get, I think, 85% of the voting shares. He does like, as we know, a shareholder lawsuit. And so that has to go to arbitration. So essentially, if you're buying, this is very much an IPO for the Elon Musk fan. You're not necessarily that worried about profitability. It's sort of. It used to be sort of rockets, now it's rockets. Twitter, AI in space, space manufacturing, transportation by rockets, asteroid mining. And not all of these businesses are functioning at the moment. Even if you look at the starship thing, the starship they're talking about, what is it? Sorry, I've got the numbers down here. Basically they're talking about hourly launches of starships in order to get, I think something like a million tons of stuff into space per year at the moment. I think the next starship test is tomorrow. It's never gone into orbit, it's never carried any cargo. I think it's going to carry some dummy SpaceX satellites tomorrow. But this is very much a Vibes based ipo. It's for people who are excited about Elon Musk. It's not really for people who are going to scrub through the numbers and ask questions about profitability.

[Ed Elson]

Yeah, just on that point, some of the company statements that we saw at the top of the document, the mission of this company is to, quote, ensure species level redundancy and that the light of consciousness will not be tied to a single planet. It's also to, quote, understand the true nature of the universe to ensure that humans don't have the same fate as dinosaurs. By the way, that phrase, the Light of consciousness is mentioned 10 times in the filing and AI is mentioned over 1,200 times in the filing. Just looking at profitability again, they break out each of the businesses into space as a business. Connectivity, which is like satellites and AI. Space lost $662 million in Q1 connectivity, turned a $1.1 billion profit. And it seems that actually the satellite business is pretty good. AI lost two and a half billion dollars. And that really struck me that maybe this AI thing is perhaps the problem.

[Patrick Boyle]

And I think that's per quarter, isn't it? That loss.

[Ed Elson]

That's the quarterly number.

[Patrick Boyle]

Yeah.

[Ed Elson]

What do you make of those numbers?

[Patrick Boyle]

So yeah, you're looking at. And I think that was growing as well. Like the loss from AI is growing. And the whole story of SpaceX, it's no longer about space flight. It's kind of about this data cent in space idea. There are a lot of people who've done research. It's not clear why it would be cheaper to put a data center in space than somewhere on the Earth. It might be cheaper to put one on the bottom of the sea. It's not clear why this is necessary, but I think it's a mistake to ask too many questions about this. You just have to go with your feelings.

[Ed Elson]

So this, I mean, what do we think this will mean for this IPO? I mean they're looking to raise $80 billion, biggest IPO in the history of business. But it sounds like you are not really convinced at all. I struggle to be convinced. I like the idea of space travel. I'm excited by sci fi stories in general. But I mean looking at these numbers personally, this seems insane. What do you think this means for the ipo? Do you think that this stock will actually perform well?

[Patrick Boyle]

Firstly, I think they're kind of rushing it out largely because it's burning so much money.

[Ed Elson]

Right?

[Patrick Boyle]

Like 37 billion in losses since inception. And the VCs and whatever only want to keep putting more money in for so long. And there's a very hot market right now. S and P is near highs and people are excited by Elon Musk stuff. They're also excited about AI. And I think Elon for years said that he would never take SpaceX public until he had reached Mars, I think till there was like a colony on Mars. So we're a little bit early for that. I think the real reason is just VC funding is kind of drying up for this sort of stuff. This is worth a lot and they want their money back. On top of that, you've got big IPOs coming from OpenAI and coming from Anthropic and even there's an argument, yeah, they basically want to get out first because the question is, will there be appetite? If investors have to liquidate something in order to buy these new things, at what point do they not necessarily want to buy the next AI thing coming out? So I think to a certain extent this is a race to get this stuff out before the others.

[Ed Elson]

For the people listening who are fans of SpaceX and who plan to maybe purchase this IPO or believe in the company, I mean, what, what is your honest bull case for this company? Like in what world? What would it take for this company to make sense and for it to be, you know, a profitable and sustainable business that is worth investing in?

[Patrick Boyle]

Well, a much lower price to start with. But that's not what's going to happen, right? Because of course, this is the whole thing with investments. Like it's, you're buying a thing and the how much are you paying for the thing? And this is the most out there valuation of any company you can think of. Like it's way beyond the valuation of Nvidia. And Nvidia is hugely profitable with massive margins. SpaceX just isn't, it's, you know, it's a money furnace, right? Especially with all this, you know, Xai, the AI company, you know, I think he paid 250 billion for it. Like SpaceX bought that from Elon Musk. Then within a few weeks he announced that the tech stack within Xai was not working. Basically it wasn't very good and it had to be rebuilt from the ground up. And he said, well, that happened with Tesla as well. And it's like, yeah, but you just got people to pay $250 billion for this, right? They bought it from you. And so this is the thing is, would I be bet on the price falling? I mean, in the long term, yes, just because I think it's, you know, this sort of gravity can only be overcome for so long. But you know, there's the funny thing, as last time we spoke, we spoke about the Nasdaq inclusion. So 15 days after the IPO, passive investors, whether they like it or not, will become shareholders. And that is an incentive even to get in at the IPO because, you know, 15 days later there's so there's some new bag holders to take it off your hands in the long run. Like any company, the value of any company is the cash flows. You're buying cash flows, you're buying the profits. Of a company. Is there a version of the world where it could become profitable? Yeah, but it doesn't look like an amazing business at the moment. It's a wonderful, it's a cool science experiment, but that doesn't mean that it's not obvious how you convert all of this stuff into, into dollars and cents.

[Ed Elson]

You mentioned earlier the other company that is set to go public, which we actually just learned is going to go public as of yesterday, that is OpenAI. There were questions over whether this was going to happen. Even the CFO was saying that we needed more time, that the company needed more time before it goes public. But apparently now that the Elon trial is out of the way, they are going to go public. Just before we let you go, I'd love to just get your top line thoughts on OpenAI as a business, your expectations for this IPO and then hopeful we can have a longer conversation about it at some point too.

[Patrick Boyle]

Yeah, I mean, once again, all of this AI stuff, it's really early in this business and it's really hard to know who the winners and losers will be. So the question with OpenAI, with anthropic, with any of these is are they the sort of Google of search or are you investing in the Yahoo or the AOL or whatever? Because being first doesn't necessarily make you the big winner. It's not something that I'm excited about just because it's kind of a roll of the dice and a hope and pray kind of thing. Also, it's not obvious. Even if AI is a huge productivity booster, it's reasonable to think it could boost the productivity of all the people using it. But that doesn't mean they get to charge that because there's sort of 10 mod out there. They're all reasonably equivalent to each other. And so the question is, will AI be a winner take all model like the way Internet search was, or will we have kind of 10? You know, it's a bit like Uber where there's sort of in every part of the world, there's Uber and then there's a few other ones. And the problem with if there's always a few other ones, you never really get to crank up your prices. And so people benefit from the affordable taxi rides, which is great, but the companies themselves never get that profitable. So with these huge valuations, the assumption is that one of these things is going to win the whole market and is going to be able to charge an awful lot of money for their services in the future.

[Ed Elson]

Very exciting time in the IPO markets. I mean it's just incredible what we're going to see this year.

[Patrick Boyle]

It is. For years people have been saying there's no companies going public. In fact, they were all going private. And also people said all these companies, they're hoarding cash, they're not investing. Now we've got all of big tech are spending a fortune on building data centers and all of this stuff and we've got all of these companies going public. So people wanted to. Yeah, but the scale of them is beyond anything we've seen before. So people are getting what they want, which is the opportunity to invest in this stuff and these companies investing in stuff rather than hoarding cash.

[Ed Elson]

Yeah. Big win for the bankers that are underwriting these companies too. Patrick Boyle is a professor at King's College London and a former hedge fund manager and he is the host of one of the Most popular finance YouTube channels. Patrick, thank you so much for joining us again. Appreciate it.

[Patrick Boyle]

Yeah, thank you for having me on.

[Ed Elson]

After the break, Nvidia reports earnings and by the way, we are heading out on tour next week. So for more info and to get tickets to a show near you, head to propertymarketstore.com.

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[Ed Elson]

We're back with Prof. G Markets Nvidia posted earnings last night and the entire economy was watching. The chip company had beaten earnings expectations for 18 of the previous 20 quarters and this time was no different. Total revenues came in at over $81 billion, up 85% from the same period last year and beating analyst expectations. Nvidia also authorized an $80 billion stock buyback and a massive dividend hike, signaling a confident outlook for quarters ahead. Still, investors weren't entirely impressed. The stock whipsaw after hours. So here to give us a breakdown on Nvidia's earnings, we are speaking with Zed Francis, CIO and co founder at Convexitas. Zed, thanks so much for joining us. Just some of the numbers here. $81 billion in revenue up 85% year over year. The data center revenues up 92% year over year. Just these numbers are just astounding. Give us your initial read on these Nvidia earnings.

[Zed Francis]

Yeah, I mean ultimately Nvidia has turned into an established veteran company in comparison to what it was a handful of years ago. So as you alluded to, the beat and raise is basically what's baked in the cake. That's what everybody's expecting at this point because that's what they've been doing in the past. And we see this stock moving but kind of benign ultimately. I'm a volatility guy at the end of the day. And the options market was pricing in a 5.5% move in Nvidia on these earnings and you know, the entire range of after hours, we're obviously well inside of that. So I think we're kind of the point where Nvidia is the new Apple almost. It's just a boring event. Even though it used to be the main show for the last handful of

[Ed Elson]

Years, Right, yeah, in that sense, I mean, the fact that they are authorizing $80 billion in new buybacks, they're raising the dividend from $0.01 to $0.25 per share. I kind of of see that and I love that. It's like they're owning the fact that they are an established, profitable company. And it does seem quite Apple like in that regard. Did that stand out to you, the fact that they are returning that money to the shareholders?

[Zed Francis]

Yeah, I mean, it's a very interesting sector. Right. Because ultimately semiconductors are viewed as hypercyclical. But Nvidia has kind of disrupted that concept over the last handful of years. Right. And I bring up Apple because I think it's a reasonable parallel. Apple started as hardware, then started building their network and then started building services. So even though hardware is the main driver of Apple's business in terms of top and bottom line, there's more confidence in reoccurring revenue from that business than a traditional cyclical hardware company. And Nvidia is trying to follow that game plan and has reasonably been successful over the last couple of years to establish that concept with the market as a whole. And, and the reason they're kind of able to do that is they're the highest value add in their space and a decent amount of why folks are purchasing their chips versus somebody else outside of them. Having this spread in comparison to the rest of the market in terms of the value add is also software. So they've been trying to make that pivot to have the market view them as more reoccurring revenue business rather than a pure cyclical, which traditionally the semiconductor space has been.

[Ed Elson]

Yeah. What is the argument on that front? Because I mean, on the one hand they are just printing money right now, but so are many of sort of the memory stocks, sort of the sand disks as an example. And the concern there is, you know, there's a gold rush for data centers. Right now everyone's trying to build a data center. Once they're built though, maybe that's it. At which point, what is Nvidia going to sell? Is that that a concern for the company? Is that something that they are addressing and talking about?

[Zed Francis]

Yeah, so you bring up a perfect point. It's very much a barbell industry within the same exact sector. So you have, you have Nvidia trying to become less cyclical. They're definitely the least cyclical of the group and the memory guys on the other side are the most cyclical. So what, what does that mean in terms of valuation and how you think about the business. Well, Nvidia has more forecastable revenues in the out years beyond years 1, 2, 3. And so because of that, years ago they were the first mover in terms of valuation because people gain confidence in the out years, the years three plus and their ability to produce those revenues. And thus you get a higher valuation. If folks believe that a decent amount of your ability to produce those earnings is actually reoccurring, then you're naturally going to get a higher valuation. Which is is exactly what happened with Apple. Again, from kind of 2013 through live, it went from a Teams PE stock to a mid-20s plus simply because the confidence of those reoccurring revenues were grown. And Nvidia is trying to follow that path. Opposite side, those memory folks, they have a click. It is a purely commoditized business where right now they're on the right side of the supply demand dynamic where they're raising prices dramatically expanding those margins. But the market's belief is there is a hard cliff where eventually they will go back to where they were before. And that's why when you look at a Micron, their forward pe is like a 12ish. But ultimately that's because, well, we have confidence in the next 18, maybe 24 months of earnings. But after that, very, very little confidence. So it's all about discounting what we know right in front of us versus that longer term kind of DCF valuation of something with reoccurring revenue.

[Ed Elson]

What do you make of the Nvidia valuation at this point? I don't have the multiples in front of me, but the stock's trading at around $220 a share. It's up 18% year to date. It's up 66% in the past year. How are you feeling about the valuation at this point?

[Zed Francis]

Yeah, I mean it's Forward valuation in mid-20s is about in line with the S and P, technically a little lighter than the market as a whole. So it still has a little bit of that cyclicality priced into it. But I would say it's in the reasonable real. You know, we're, we're, it's a largest company in the world, it's tough to grow exponentially even though they continue to do so in the short term. When you're this large, where the memory folks are on the opposite end, it's the, the expectation of that massive decline in earnings has successfully been pushed out over the last, you know, six, seven weeks. And that's why we've seen massive moves in those specific stocks. But they're always going to be hypercyclical where the earnings of going to, you know, hopefully, you know, earn as a shareholder are right in front of you rather than over the next, you know, couple of decades.

[Ed Elson]

Yeah. Final thing that is kind of interesting, no shipments of chips to China this quarter from Nvidia. They shipped for $4.5 billion in the year before. I mean this in context with Jensen Huang jumping on the plane with President Trump going to China. I believe that was last week. I think that's right. Did we learn anything on the China front? Is China going to be a business for Nvidia, is it not? Where are we on this?

[Zed Francis]

Well, I think we're a little in between whether or not China is actually receiving the end product via different routes rather than directly. That might still be happening on the side, but that is a potential growth engine.

[Ed Elson]

Right.

[Zed Francis]

If we actually get some, you know, more level headed relationships with China, that may reopen that market directly for them. But I, I wouldn't be surprised if they're getting a decent amount of that revenue through other sources.

[Ed Elson]

Zed Francis is the CIO and co founder of Convexitas. Zed, thank you so much for breaking down these Nvidia earnings. We appreciate your time.

[Zed Francis]

Thanks for having.

[Ed Elson]

More news. In the world of financial corruption, Trump and his family have been granted forever immunity from investigations and audits by the IRS. This comes after Trump withdrew his $10 billion lawsuit against the IRS for allegedly disclosing tax information without information. Now, per a pledge from the Department of justice, the U.S. government will, quote, be forever barred and precluded from prosecuting or pursuing tax claims against Trump or his family. In the words of the doj, Trump has been forever discharged from any tax crimes. Now at a certain point, there's just not much commentary I can even provide here. I mean, I can tell you, you that this is corrupt. I can tell you that this is what dictators do. I can tell you that this appears to be illegal. And if it isn't, then it should be. But you already know all of that. I mean, there's nothing more that I can reveal by analyzing what the headlines are already telling us. Because the headlines speak for itself. Trump has taken control of our government. He defunded the irs, he defunded the doj. He filed, hired the SEC director who tried to investigate his insider trading. He personally canceled 160 different white collar crime investigations in one year. Those white collar crime prosecutions have hit a record low this year. And now he has coerced the DOJ into banning the IRS from investigating or auditing his tax claims for the rest of time. Time forever was their term. So do I really need to argue why that's bad? Do I need to present my case on why that shouldn't be happening? I don't really think so. I think either you hear these facts and you acknowledge them, or you hear these facts and you ignore them, or you say they're not a big deal, or you just deny that they're even true. So the only thing that I can really do here, in yet another corruption scandal, the only thing that is even remotely valuable, is to just tell you what happened, to tell you the headlines. And that's what I'm doing. I'm telling you what happened. Now, in the context of markets, I can explain why this is bad. It erodes faith in the system of markets. It creates this belief that for a certain set of people, the rules of markets and regulations do not apply. And in this case, that is true. And it also just makes Americans assume correctly, by the way, that the system is rigged. But I hesitate to even make that argument because I just don't see how you could conclude that this kind of corruption is anything but bad for everyone. And so I end this episode to tell you I have nothing to add here. This is just another day of unprecedented corruption in the Trump administration, the likes of which we have seen over and over and over again. You either acknowledge what is happening or you don't acknowledge it. But I am not gonna be the one to make you care. Okay, that's it for today. This episode was produced by Claire Miller and I, Alison Weiss, edited by Joel Patterson and engineered by Benjamin Spencer. Our video editor is Brad Williams. Our research team is Dan Shalon, Isabella Kinsel, Kristin o' Donoghue and Mia Silverio. And our social producer is Jake McPherson. Thank you for listening to Prof. G Markets from Profgy Media. If you liked what you heard, give us a follow. I'm Ed Elson. Tune in tomorrow for a conversation about taxes with Ray Madoff.

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