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dave tepper - hands down, GOATED investor
the only investor the other greats admire and respect and would not dare disrespect
he's also misunderstood... known as a great distressed investor, he's also a great macro investor... skates to where the puck is headed, full cycle
assume we’ll get some upgrades tomorrow $iclr even a slow grower cro is catching a demand wave
Anyone have a strong take on medpace $medp
$ICLR
-Cowen raises ICON target to $197 from $164
Buy
-Mizuho raises target to $190 from $180
Outperform
-BMO raises target to $187 from $160
Outperform
-Baird raises target to $186 from $168
Outperform
-RBC raises target to $185 from $126
Upgrades to Outperform from Sector Perform
-Barclays raises target to $175 from $160
= Weight
-Citi raises target to $165 from $140
Neutral
-Bank of America raises target to $150 from $125
Underperform
-JPMorgan raises target to $135 from $130
Neutral
$stx entry was may 2025 at $117 pps. was a big position. my largest contributor of the ai cycle to date.
was a fun ride, could have definitely sold the top better.
what went right:
- fundamental thesis was a slam dunk; price and exabyte growth as ai dc growth and training came to pass
- held through the vols
what went wrong:
- sold half too early before the blow off rip higher
- average exit price about 40% off the peak
thanks for laughs seagate and best of luck HDD frens
net short $wdc but will be covering imminently
semis do look a bit cheap here
*D.A. DAVIDSON UPGRADES BROADCOM TO BUY ON AI IPO CATALYSTS & UNJUSTIFIED VALUATION DISCOUNT
D.A. Davidson upgraded Broadcom $AVGO +3% to Buy from Neutral, raising its price target to $400 from $350.
Gil Luria highlighted that Broadcom's valuation trading at just 16x 2027 estimated EPS effectively prices in a near zero probability of successful public market debuts for core AI lab customers like Anthropic and OpenAI.
Luria expects Anthropic's upcoming IPO to proceed with OpenAI potentially following in 2027, unlocking substantial fresh capital that will directly fund sustained multi-billion-dollar demand for Broadcom’s custom AI ASIC accelerators and high performance networking infrastructure.
polling everywhere will have overstated republican turnout and voting
It’s over
but mostly over if trump in all his megalomania colludes with a blue legislature to move the country to the left
people will find out the hard way that $1 trillion data center capex is free cash flow negative until it lights up, then it cash flows 20-40% p.a.
by the time it does, another $1tn in the ground does the same and those xpus are suddenly doing $400bn - $800bn fcf p.a and the whole system is cash flow positive
the big bet is whether the token demand is sustainable
per whoever published it today - if we’re spending 0.1% of payroll cost on ai at $100bn annual spend run rate, we’ve only got to spend 0.5-1% for the whole thing to balance
the biggest worry shouldn’t be demand but some algorithmic improvement that allows smaller models on local endpoints
For me don’t think there’s much to worry about that anytime soon, but I will change my mind if something changes
Last 48 hour issuance announcements
- meta $95bn equity
- ant via private credit $avgo 65bn debt
- spcx via nvda 45bn debt
That’s 200 billy capital for likely 400bn xpu purchases
Think semis are gunna be ok
1/Anthropic’s S-1 is out.
2/ Revenue, quarter by quarter ($M)
Q1'25: 376
Q2'25: 787
Q3'25: 1,382
Q4'25: 2,040
Q1'26: 4,731
Q2'26: 11,555
Q2'26 revenue was up 1,368% YoY. Compute & infra costs were up 300% over the same period.
Q2'26 was the first quarter with positive GAAP operating income: $974M.
3/ How “Run-Rate Revenue” is defined
Trailing-28-day consumption fees × 13
+ monthly subscription fees × 12
Three caveats from the S-1:
-It includes customers later found to be violating the usage policy
-It is seasonal: usage dips in summer and winter holidays
4/ Revenue is recognized gross
When Claude is sold through the AWS, GCP or Azure marketplaces, Anthropic is the principal. It books the full amount as revenue, and the cloud provider’s fee goes into Sales, marketing & partnerships.
The marketplace share of revenue has climbed fast:
11% (2023) → 32% (2024) → 47% (2025) → 48% (H1'26)
Adjust for this before comparing multiples with companies that report net.
5/ Distillation
The S-1 puts a number on it:
“we estimate that revenue from such customers represented approximately 5% to 7% of our revenue for the nine months ended September 30, 2026”
These are customers violating the usage policy or commercial terms. Applied to ~$33B of 9M revenue, that’s roughly $1.7–2.3B.
Enforcement was stepped up in Aug–Sep, and the company expects the share to decline. The S-1 says the estimate “requires judgment and may change.”
6/ Visibility is low
RPO at 6/30/26: $10.8B
~75% of that is recognized in the next 12 months, so cRPO ≈ $8.1B
Deferred revenue: $1.65B
Q2 annualized revenue is ~$46B, so cRPO covers less than 20% of it.
80% of revenue is consumption-based, and next year’s revenue depends almost entirely on usage.
7/ The compute bill
Disclosed commitments:
Broadcom TPU leases: ~$161B
SpaceXAI (NVIDIA GPUs): up to $121B, ~$3.1B a month from Dec’26
Google: ≥$115B, plus $125–150B more of TPU capacity in 2028–31
Amazon: ≥$110B
Microsoft: ≥$45B
Nscale: ~$45B
Lambda: ~$41B
AMD: >$20B
That adds up to roughly $780–810B.
8/ The mismatch to watch
Revenue is variable and consumption-driven. Compute costs are fixed, multi-year and take-or-pay.
On top of that, the Broadcom leases, the credit agreement and the convertible notes include cross-default provisions.
This is the single most important risk in the filing.
9/ Demand is real
NRR ~900% (ex-Pro/Max)
Customers paying more than $100K / $1M / $10M a year: 11,900+ / 1,900+ / ~250
No single customer was >10% of 9M’26 revenue
Top 5 customers ≈ 25% of 9M revenue
Q3: 79% of revenue came from outside the top 5, up from 64% in Q1
Claude Enterprise users who also use Claude Code spend ~20x more than those who don’t
10/ Dilution
$77B of convertible capacity: Google $20B, Amazon $15B, Broadcom $42B, settled in shares at a trailing VWAP
Google can buy up to $10B more stock at the IPO price
A Public Benefit Fund already holds 5% of fully diluted shares, and can get up to +2% more for every 50% rise in the share price
the Anthropic s-1 takes on this website are awful. you guys are outting yourselves as tech bros unskilled at anything else. be a generalist. it’s a lot cooler. more satisfying life.
agree. step back: the cambrian explosion of ai entering the enterprise was say - 4 months ago. with compute bottlenecks in display, my personal opinion is gpu cloud margins tear higher. it's showing up in $ant numbers.
$amzn, $msft and $GOOG near ATHs indicate the market likewise understands huge ROI on these capex $.
have to disaggregate negative impact of cost of capital on cap markets funded vs. internally funded clouds.
think market is saying semis/mag 7 higher.
This is the key stat. The average Fortune 500 customer of Anthropic spends less than .1% of their expenses on Anthropic.
While that number likely will eventually asymptote somewhere (token prices coming down, and other large enterprise spend areas not going away), there’s no reason it can’t be 10-50X higher than this, reaching a “mere” 1-5% of spend. Which would still be a fraction of what most startups are spending.
Thus, you can see how big of a divide there is between the frontier users of AI and the rest of the world still.
Today, only a microscopically small set of companies are actually using agents for large amounts of background tasks and inside of workflows that aren’t human prompted. This Fortune 500 spend is likely dominated by coding tasks and broad employee productivity use-cases.
But the big jump will come as these enterprises start to rewire their underlying processes for agents, which we’re now in the earliest stages of seeing. Agents processing large amounts of data in the enterprises; swarms doing coding, bio research, cyber, and other large fan out tasks; background workflows executing tasks in processes, and so on. All of these use cases generally are 100X bigger consumers of tokens, and much closer to direct ROI on the spend.
This S-1 gives you a sense of both the strength of the frontier lab business model - even amidst massive competition - and how early we are in the build out of AI.
deployed a ton of cash on a semis/wfe trade
anthropic capital efficiency isn't as bad as feared
$crwv / $nbis may have found a near term bottom - did not add either of these...
narrative can shift fast...
trading call only
$meta by far the most expensive asset in this portfolio
i've got $ACMR at 13x 27E - just entered a buy order and canceled because never go full retard
$ICON and cpo en fuego would be a seller if was long term gains
first big earnings report of the year for me is tonight $wdc short as a hedge against $stx dont love the positioning but has been a great hedge over last 3 weeks
want to add $hpe here tbh but stepping into rising macro / commodity uncertainty not my m.o.
37% cash
This was prescient no?
$meta offering size off by $5bn and announced day of $ant s-1
More equity offerings to come from companies not named anthropic or OpenAI
Not enough capital for all
1. Meta and major other enterprise customers moving away from Claude AGGRESSIVELY and
2. Distillation crackdown
But if you think that’s bad, wait til Zuck does a $100bn equity offering right before Anthropic prices it’s IPO
$meta
lots of weird headlines today, but weirdest may be Apollo buying 10% of mubadala capital $apo
S&P at highs and getting cheaper by the day
Barron's: A record number of S&P 500 companies have issued third-quarter earnings guidance above consensus estimates.
@soberlook thedailyshot.com/subscribe/
Daave “3 and 30” Tepper retweeted
Pretty crazy that on a day like today, the S&P 500 nearly triggered a deGraaf Breadth Thrust for the first time since May 2025. 👀
The trigger is 55% of S&P 500 stocks closing at new 20-day highs.
Today, we hit 50.4%.
So close.
@RenMacLLC @granthawkridge @WillieDelwiche




















