NVDA “Puts Money Where Its Mouth Is,” Creates Open Agent Safety Platform

Morning trade live. Let's focus on the chart fordia. It's ha a very nice day today. Up 2.7%. Up around 30% year over year. It had a little bit lback over the summer. But we are up again right now. We've had a lot of newated to this company this morning. Nvidia making a couple of big announcements today. These are the focus of the morning trade. So for a closer loo breakdown of all of this is Marley Kayden good morning Marley. Hope you had a nice d. Just walk us through all the headlines we're seeing this morning surrounding Nvidia. Good morning Sam.ean I guess first we should just start with this move to the upside. We seenearly 3% move to the upside because of these headlines driving it higher. Shar moving hi because of two major announcements. Both of them speak to the opportunities and the challenges that surround the AI boom. The first one that Nvidi launching its new open agent safety platform. This is desig give companies more control over these increasinglyonomous AI agents. Of course, in the wake of the hugging face att which Nvidia has purchased Hugging Face. And second is that they've authorized $150 billion stock buyback. That brings the total remaining authorization up to $235 billion. So we've got N addressing two different things right now. One the biggest emerging risk in AI security. And then the second one while returning eno amounts of capital to shareholders as they bet that this AI build out still has a v long way to run. But let's start with the safety push first, as this has been one of the top stories of the last few weeks, they're describing by introducing thised reference design, it provides security controls across the AI agent stack, from the software that's running t agento the underlying computing infrastructure. And eventually, they say to even robotic systems, the timing here very important because of allhese rece AI models escaping the environments that are supposed to be isolated. Of course, hugging face, one of those, an Australian governmen agency, another one of those. And it's very interesting. Let's talkaboa says that based on what it knows specifically hugginge, it could have prevented that breach with this t. It has two layers. The first one is Open Shell, which Nvidia had preyreviewed. It runs on Nvidia's Vera CPUs, allows organizations to establish rules around what an agent can access, and then enforcese rules in real time. The second one is new. They're calling it Nvidia . It's a newer that runs on Nvidia's Bluefield data processing units. Sentr job is to monitor these AI agents, and if it suspects te is behaving, it can intervene and isolate it. And Nvidia says can qine that agent within milliseconds. So it could have potentially ted these attacks that we've seen. The broader message here, t I think is very important. The company is treating AI safety really more as it's looking at as like an engineering and infrastructure problem. Rather than saying we need to slow down, which has be of the driving narratives around AI right now. It's saying, we just need better controls. We don't have to slow our pace. We just hahave controls in place to make sure these agents are doing what we want them to, e want them to, and be able to stop them when they're not. The second one here, though, is arguably more important for investors. It's this buyback. They're adding to their buy box. They authorized another $150 billion in share buybacks. That brings the total up to $235 billion. The company says it expects to execute that remaining program through fiscal 2028. And Jen Wong said that Nvidia's growth, he believes, is being driven what he calls a once a generation shift toward AI and accelerated computing, and that the company's cash generation gives it the ability to both invest in the AI infrastructure, build and return capital to shareholders. And that's the key here. T not choosing between one or the other. to dooth. The scale of their cash generation is just a ections AI infrastructure build out has s right in the middle of this AI booming cycle. But very important messaging here, I think,round this AI safety narrative and where Nvidia stands without having to directly whether or not they're pro or against this narrative of slowing AIwth. Yeah, it's certainly an interesting conversation. I ,as e security companies this morning, Palo A Crowd, they were all lower ahead of the pre trade this morning off the back of this. But now they're all trading positively. So interesting moves we're seeing. It could have a lot to do with the share buyback repurchase as well I guess today. Molly t you so much for all the breakdown of those details. Let's trade this one now with Charles Moon, stock strategist over at Prosper Trading Academy. We've got some China headlines as well around this name. So a lot happening on this front. Just walk us thr an example trade. Yeah. You know certainly the market kind firms again after the all time highs. This is where Nvidia could be the greatest. So I actually love that this news could le a potential breakout above their all time high p More in particular with the safety protocols. You know talk about the leader of the industry saying listen, we're goi tacklehis head on. We're going to give our investors a reason to believe in the growth and more importantly, that there won't ay going to benefit Nvidia. So I'm looking at the 1016 contract, the 240 strike at 350 or lower. Now the risk is going to be huge. It's 100% of the premium. But if this breaks I could see Nvidia makin this run st around $250. The laws of attraction number. And for me that that point of emphasis on contracts trade at least atese 300% or higher. I think that the fact that there's concerns about protocol and then they're putting in these protocols, there's concerns about oversight. Well, don't need oversight. They have actually agreed in relation to what David Sacks has said, which was the AI czar, the House, that this falls on the companies themselves, this falls on the company in relation to liability and responsibility. And Nvidia Jensen Huang in particular hadie now putting, you know, the their money, where their mouth is. They are putting in these protocols. They are putting these safety measures. And this is exactly what, i opinion, what investors would want on top of addingheir $150 billion buyback, which is the largest they've ever on paper. So for me, this is a great combination. We just need th markets to obviously cooperate as well. Yeah. Nice move topside here for shares in Nvidia really outperforming the rest of the r chipce today across the semis. Charles really appreciate it. As always.