Companies Are Hoarding Compute Like Gold

**Melvin** (0:00)
Corporations are seeing Compute as the new store of value, which is like everyone thought this was going to be Bitcoin back in 2021, and it never really happened. Corporations never seem to adopt it. And it was great that it was a scarce asset, but what corporations want is scarce assets that are productive.

**LGDU Set** (0:15)
What's up, everybody? It's LGDU Set here, and welcome to Milk Road AI, the twice-weekly AI show that is not getting suckered into buying software stocks just because they're finally showing signs of life. Today is June 3rd, 2026, recording on June 2nd. This week, Google announced yet another $80 billion in capex as it becomes clear that no matter what the market does, these companies are not done building. But does it mean to go long on Google or is there a different play at hand? We'll also talk about Corning as the dominant hand on the fiber bottleneck, SaaS and its potential comeback from the dead, and then get a glimpse of what the guys are actually buying this month. And a quick reminder, these guys make several trades a week, and Melvin is already up 60 percent since March. So you can see what they're doing in real time by getting into Milk Road Pro. It's literally just a dollar to test it out. If you don't like it, that's fine. You can cancel anytime. Today's episode is brought to you by Nexo, Earn Interest, Borrow and Trade Crypto. All right, gentlemen, we're back for another episode, Milk Road AI. We got the full squad here.
And let's start by going around the horn. I want to hear your thoughts on the market, how you're feeling right now. Vincent, let's start with you, man.

**Vincent** (1:20)
Yeah, this week has been a busy one. There has been so much going on. GTC, Jensen giving its keynote. Jensen last night talking about Marvel technology stock ups 30 percent today. Robinhood launching agentic options and SaaS back or not, those are the topics I'm focused on.
All right. How about you, Melvin?

**Melvin** (1:44)
I feel great, man. Market's pumping. My portfolio just hit an all-time high. It broke about 60 percent in a few months, so I'm pretty happy about that.
And yeah, we're keep on seeing good news throughout the market, like Vincent mentioned, like SaaS is finally going to come back. And I think we're just going to keep on going higher. Oh, 59 percent now.

**LGDU Set** (2:08)
Wow.

**Melvin** (2:09)
Yeah.

**LGDU Set** (2:10)
First to 80, you're going to be the first to 80K if you didn't already touch it.
Everybody started at 50 for people listening. So this guy started at 50K just what, like three months ago, three months ago. So you're up 60 percent in that time. Congrats, man. Sold possession of first place by it. I feel like it was just the other day on the show where we congratulated you on briefly going into first over Martin, and now you're dominantly there.

**Melvin** (2:31)
None of these guys are going to touch me for a really long time.

**LGDU Set** (2:36)
Kyle, let's go to you, man. How are you feeling right now? You got some ground to make up on the portfolios, but I feel like you're feeling good.

**Melvin** (2:42)
Yeah, I think I remain bullish on the markets for now. I think I was hoping that the Iran situation would be kind of figured out and oil would be a lot lower right now, and it's not. Doesn't feel like they have any hold there, which is not ideal. But in the AI space, the market is seeing through it, right? If you look at like crypto and other markets, they're struggling and probably because of these things. I think we thought the rates were going to go lower this year, and now we're already like a rate hike is priced in this year. So everything's kind of changed on the macro side, but AI seems to just brush it off. And I think the reason is people see a lot of future value in compute, right? If you can get your hands on more compute and more AI and more tokens, then people believe that that's going to yield something a lot better than not, right? And so I think that money continues to go into this. I'm actually kind of thinking of like, I put out a tweet this morning of like, corporations are seeing compute as the new store of value, which is like, everyone thought this was going to be Bitcoin back in 2021
And it never really happened. Corporations never seem to adopt it. And it was great that it was a scarce asset, but what corporations want is scarce assets that also that are productive. And everyone thought maybe that was going to be ETH, and it turns out it's actually compute, right? If you can get compute, you can make your company a lot more productive than without it. So I actually see corporations, I think are starting to see compute and AI and this build out as like, it is the place to store your value, because it's going to make you more value over time. And you're seeing it with like, you know, this is meta. They're just like, we're just going to put everything into this. I don't even know what we're going to do, but we're just going to spend, spend, spend, and we'll be able to figure out whether we rent out our compute, or we put it into our own company, whatever we do with that compute, we can find ways to monetize it. You just saw SpaceX, right? Or XAI, who had all this extra compute, they spent 24 billion on it and they're already now renting it out to Anthropic and going to make 29 billion in a year, right? So it's like, I think these companies are going to realize like, hey, we just need to spend more and we'll figure it out, whether it's within our own products or it's renting out to someone else or whatever it is, there's just an infinite demand for this stuff. And so if we can be the ones to access it, we're going to find a way to monetize it in some way or another, which is what you're seeing with the Bitcoin miners that all pivoted over to AI, you're seeing it with the hyperscalers, so on and so forth, it's just non-stop. And so I think that trend continues. And in our macro conversation we had this morning with John and Martin, and Melvin was in there too.