Nvidia surged 7% after delivering blockbuster Q2 earnings with $96.22B revenue (106% YoY growth) and raising FY28 guidance to ~70% growth. The Vera Rubin platform is ramping ahead of schedule with orders from all major hyperscalers. However, gross margins are expected to compress from 75% to 71-72% due to rising memory costs, and the company's massive capital commitments warrant monitoring.

Nvidia has partnered with six major financial institutions (BlackRock, Blackstone, KKR, Apollo Global Management, Brookfield, and Goldman Sachs) to create a $500 billion AI infrastructure financing plan. The deal aims to securitize AI compute assets and diversify Nvidia's customer base beyond hyperscalers. While the plan resembles financial engineering that could amplify an AI slowdown, it positions Nvidia as a critical ecosystem provider and enables recurring revenue streams through inferencing-as-a-service.

Nvidia CEO Jensen Huang announced a $500 billion financing initiative with Goldman Sachs, BlackRock, KKR and others to mobilize capital for AI infrastructure. The five-word thesis 'In AI, compute is revenue' frames Nvidia chips as collateral for loans, similar to aircraft or rail cars. However, the arrangement's viability depends on sustained AI demand and the resale value of chips, with risks remaining untested.

CoreWeave's business model challenges the bear case that older GPUs become obsolete quickly. The company secured a multi-year renewal on 2020-era Nvidia A100 chips extending through 2029, demonstrating that older hardware can generate profitable revenue in subsequent contracts after initial debt is paid down. Debt markets are increasingly pricing in this residual value, with CoreWeave's new $2.6 billion facility having a longer maturity than underlying customer contracts, signaling lender confidence in GPU longevity.

Nvidia partnered with major Wall Street firms (Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, KKR) to create compute financing platforms targeting $500 billion in AI data center funding. While the deal aims to accelerate AI infrastructure buildout, the author expresses skepticism about its sustainability, noting that hyperscalers are increasingly relying on debt markets and questioning whether GPUs' shorter lifespan makes them viable collateral compared to traditional assets like power plants.

Private credit investments are expected to become available in 401(k) plans, opening a massive $14 trillion market opportunity. While private credit offers higher returns, it carries significant risks including illiquidity and interest rate sensitivity. Alternative asset managers like Blackstone, Apollo Global Management, and KKR are well-positioned to capitalize on this expansion without investors needing to directly buy private credit funds.

Oppenheimer downgraded major investment banks Goldman Sachs and Morgan Stanley from perform to underperform, citing valuations that are priced for perfection. The downgrades reflect concerns that investment banking revenues, boosted by the SpaceX IPO and strong Q1 2026 results, may not sustain if capital markets activity slows due to higher bond yields or delayed AI IPOs. Oppenheimer recommends rotating into super-regional banks and alternative asset managers with greater upside potential.

KKR launched Helix Digital Infrastructure, a new venture backed by over $10 billion in committed capital to finance and deploy data centers, power, and connectivity for AI hyperscalers. Led by former AWS CEO Adam Selipsky and supported by partnerships with Kuwait Investment Authority, NVIDIA, and Vistra, the initiative represents KKR's major push into the growing AI market. However, KKR stock shows bearish technical indicators with a 24.59% 12-month decline and a death cross pattern, though analysts maintain a Buy rating with a $122.50 price target.

The article compares KKR & Co., a private equity and alternative assets manager, against T. Rowe Price Group, an active management firm specializing in retirement accounts. While KKR has higher AUM growth (17% YoY to $744B), it faces risks from market sensitivity and client redemptions if performance lags. T. Rowe Price offers more stable, recurring revenue from retirement assets (67% of AUM) with robust 28.5% net margins and trades at a lower valuation (11.2x Forward P/E vs. sector average 16.6x). The author recommends T. Rowe Price as the better 2026 buy due to its reliable business model, competitive advantages in ETFs and separately managed accounts, and attractive valuation.

Multiple major M&A transactions and bankruptcies dominated the deal landscape. NextEra Energy agreed to acquire Dominion Energy for $66.8 billion in an all-stock deal. Shein acquired Everlane for $100 million, while Authentic Brands Group bought Lee from Kontoor Brands. IMAX is exploring a potential sale. West Marine, Del Monte Foods, Warrior Technologies, and Bitcoin Depot filed for Chapter 11 bankruptcy. Other notable deals include Medtronic's acquisition of SPR Therapeutics for $650 million and KKR's sale of CIRCOR Aerospace to Parker Hannifin for $2.55 billion.

Parker-Hannifin (PH) announced a $2.55 billion acquisition of CIRCOR International's Commercial and Defense Aerospace business, owned by KKR. The deal is expected to close in H2 2026 and adds complementary flight-critical motion and flow control systems. Parker projects the business to generate $270 million in 2026 sales with margins above 40% before synergies, and expects the deal to be immediately accretive to EPS and cash flow. The company also raised its full-year 2026 guidance.

FS KKR Capital Corp (FSK), a business development company, trades at a significant discount to book value (58 cents on the dollar) despite a 15.3% yield. Despite two recent dividend cuts and rising non-accruals in its loan portfolio, KKR is backing the stock with a $600 million capital commitment including preferred stock purchases, share buybacks, and fee waivers. The author argues this management support and potential mean reversion could deliver 36% total returns.