- Jeffrey Emanuel called Nvidia overvalued and warned about Depseek’s rise
- His essay went viral, triggering market record and panic losses for investors
- Now he is pointing to Coreweave, calling him Türkiye and the “Wework of Ai”
Towards the end of January 2025, Jeffrey Emanuel, founder and CEO of cake Network, wrote an interesting and insightful essay on Nvidia.
More specifically, he discussed what he saw as his overvaluation and the threat he faced with a small Chinese startup called Depseek. When pointing out, “the story shows that markets eventually find a way of artificial bottlenecks that generate super normal gains” and that “Nvidia faces a much more rocky path to maintain their trajectory and current growth margins of what implies its assessment.”
That article, which went viral, helped cause the fall of a single larger day in the stock market, cleaning $ 2 billion of global markets and cutting the capitalization of Nvidia market at $ 600 billion.
A expensive turkey
The last objective of Emanuel’s observations is Rareand, Coreweave, based in New Jersey, which offers an optimized cloud infrastructure for NVIDIA GPUs and is expected to be made public in the coming weeks in what will be an OPI that will be seen closely.
In its demolition of the company, Emanuel described it as the “Wework of AI”, referring to the infamous flexible office space startup that was once valued at $ 47 billion but funds overexcended and poorly managed, and collapsed after a failed ovi.
As Emanuel wrote two weeks ago, “yes [CoreWeave] I really opi for $ 30b+, so it’s much better than NVDA was. They have absolutely no durable pit and will soon be at a structurally disadvantage in the cost curve for the inference of specific LLM models versus hyperscalers like AWS, which have their own patented silicon (because clearly Coreweave does not know the first thing about doing a personalized silicon, and they will not do it soon) ”.
Market clock He collected this and warned investors. The site wrote: “Coreweave established an estimated price range of $ 47 to $ 55 per share for its initial public offer, and an offer of 49 million shares. According to the midpoint of the estimated range, the choreweave opi would collect $ 2.5 billion for the company. It will make its IPO the fourth since 2022 to collect at least $ 2.5 billion, after Linegege, Arm Holdings, Arm Holdings. Kenvue, according to the fourth part of Renaiss, according to 2022, to raise at least $ 2.5 billion, after Linegege, Arm Holdenings, and Kenvue, according to the fourth part of Renaiss, to the fourth.
“Coreweave would have a market capitalization of approximately $ 25 billion depending on the midpoint of the estimated price range,” the site added. While that is much less than the $ 35 billion that many market observers have been predicting, Emanuel says: “That remains at least $ 20B too high for this Türkiye!”
Thanks to Steve Gelsi at @Marketwatch for helping me warn investors about the IPO of Coreweave. Fortunately, they have already had to reduce the valuation by $ 10b of the initial price talk of $ 35b, but that is still at least $ 20B too high for this turkey! https://t.co/fnjorj87nkMarch 20, 2025
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