This is why I put Power Metallic Mines Inc. (PNPN.V) on our webinar schedule (September 3rd at 10AM CT). In addition to a lot more electricity generated by natural gas fired power plants. AI companies are going to need a lot of copper and other strategic metals. PNPN's Nisk Project has the potential to be a polymetallic supergiant, with high-grades of Copper, Nickel, Platinum, Palladium, Cobalt, Gold and Silver.
------------------------------
NVIDIA just became the first company in history to hit a $4 trillion market cap. < Larger than the market-cap of the entire energy sector.
Why?
Because America isn't just building AI anymore. It's weaponizing it.
Elon Musk's "Project Colossus" — the largest AI supercomputer ever built — is now online in a Memphis warehouse.
It's powered by 100,000 of NVIDIA's most advanced AI chips... and it's only the beginning.
Trump's $500 billion Stargate Initiative is now supercharging America's AI infrastructure — fast-tracking minerals, cutting red tape, and turning U.S. critical resource companies into the next NVIDIA-class plays.
Even NVIDIA's CEO says: "Not allowing energy to be an obstacle is a phenomenal result for AI in the U.S."
Meanwhile, China's DeepSeek R1 is open-source and global — scraping American data and giving away ChatGPT-level power for free.
This isn't just a tech boom anymore.
It's a full-blown AI arms race.
Why is Nvidia Market-Cap so high?
Why is Nvidia Market-Cap so high?
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Why is Nvidia Market-Cap so high?
Notes below are from today's Felder Report:
This week, all eyes were on Nvidia and for good reason. As Cameron Crise writes, "Nvidia has singlehandedly accounted for more than 1/6 of the rally in the SPX off of its April low, and in so doing has posted the highest four-month Sharpe ratio in the company’s history."
The stock has set some "Ncredible" milestones in the process. "Over the last year Nvidia’s market cap has overtaken the total valuations of the main stock indexes in the UK, France and Germany. It's also overtaken the entire S&P 500 energy sector to whose members will fall the task of powering the machines that use its chips," writes John Authers.
And that last comparison may be the one that matters most. As The Economist reports, "Fittingly for an unstoppable force, Nvidia is about to come up against an immovable object. Or at least an object that has not moved much in decades—America’s power grid."
This is something the stock's current valuation doesn't seem to discount. "Add up analysts’ estimates of the next five years’ worth of free cash flows, discount them back at a 10 per cent rate, and they total just $650bn. In other words, the remaining $3.8tn of enterprise value represents cash arriving from 2030 onwards," reports The Financial Times.
But the herculean long-term growth projections behind that valuation may not prove credible. As Rob Arnott tells Forbes, "Bubbles burst not because the story is completely wrong, but because around the margins the story is wrong. The story of the rate of growth, the time horizon of growth, is unrealistically optimistic, and the risk of competition eroding market share is underestimated."
----------------------
MY TAKE: The AI companies will "pay whatever it takes" to get the electricity they need to power their datacenters. The only near-term solution is a lot more natural gas fired power plants need to be built.
This week, all eyes were on Nvidia and for good reason. As Cameron Crise writes, "Nvidia has singlehandedly accounted for more than 1/6 of the rally in the SPX off of its April low, and in so doing has posted the highest four-month Sharpe ratio in the company’s history."
The stock has set some "Ncredible" milestones in the process. "Over the last year Nvidia’s market cap has overtaken the total valuations of the main stock indexes in the UK, France and Germany. It's also overtaken the entire S&P 500 energy sector to whose members will fall the task of powering the machines that use its chips," writes John Authers.
And that last comparison may be the one that matters most. As The Economist reports, "Fittingly for an unstoppable force, Nvidia is about to come up against an immovable object. Or at least an object that has not moved much in decades—America’s power grid."
This is something the stock's current valuation doesn't seem to discount. "Add up analysts’ estimates of the next five years’ worth of free cash flows, discount them back at a 10 per cent rate, and they total just $650bn. In other words, the remaining $3.8tn of enterprise value represents cash arriving from 2030 onwards," reports The Financial Times.
But the herculean long-term growth projections behind that valuation may not prove credible. As Rob Arnott tells Forbes, "Bubbles burst not because the story is completely wrong, but because around the margins the story is wrong. The story of the rate of growth, the time horizon of growth, is unrealistically optimistic, and the risk of competition eroding market share is underestimated."
----------------------
MY TAKE: The AI companies will "pay whatever it takes" to get the electricity they need to power their datacenters. The only near-term solution is a lot more natural gas fired power plants need to be built.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Why is Nvidia Market-Cap so high?
Any chance the A.I. companies start buying natgas producers in order to lock in their own private stash/supply?
And eliminate having to buy energy on the open market in competition with others?
And eliminate having to buy energy on the open market in competition with others?
Re: Why is Nvidia Market-Cap so high?
They won't buy the upstream oil & gas companies, but AI companies will make natural gas supply contracts with them. If AI companies build their own natural gas fired power plants, they will need a lot of gas. LNG export companies are doing the same thing with upstream companies.
Pine Cliff, the company that's hosting our Houston luncheon on September 17th already has a contract to supply gas to an AI Data Center in Alberta.
Several AI Data Centers will be built in Alberta.
Pine Cliff, the company that's hosting our Houston luncheon on September 17th already has a contract to supply gas to an AI Data Center in Alberta.
Several AI Data Centers will be built in Alberta.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Why is Nvidia Market-Cap so high?
Wonder if the NG world will become a term contract world similar to the uranium industry. Spot price contracting of uranium means nothing these days.
Re: Why is Nvidia Market-Cap so high?
I do believe that many of the AI Data Centers will enter into term contracts for their natural gas supply, but I doubt they will be at a fixed gas price for a long period. If they are fixed price contracts, the gas price will be much higher than it is today.
Trading of natural gas futures contracts should get very interesting in 2026. Utilities and LNG exports can buy NYMEX futures contracts with the plan to take physical delivery when the contracts expire.
In 2026 we can expect to see new records for LNG exports set month after month. The next five years will be very interesting for the North American gas market. I do expect natural gas prices to lag in Western Canada until their LNG export capacity ramps up. If all of the LNG export facilities on the West Coast of Canada do get built that are planned, Canada should have close to 7 Bcf per day of export capacity by 2030.
This topic will be covered at our Houston luncheon on September 17th.
Trading of natural gas futures contracts should get very interesting in 2026. Utilities and LNG exports can buy NYMEX futures contracts with the plan to take physical delivery when the contracts expire.
In 2026 we can expect to see new records for LNG exports set month after month. The next five years will be very interesting for the North American gas market. I do expect natural gas prices to lag in Western Canada until their LNG export capacity ramps up. If all of the LNG export facilities on the West Coast of Canada do get built that are planned, Canada should have close to 7 Bcf per day of export capacity by 2030.
This topic will be covered at our Houston luncheon on September 17th.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group