The Hottest IPO of 2026 Will Shock You

**Travis Hoium** (0:02)
It's Monday, and Jensen Wong is making big deals. Motley Fool Hidden Gems Investing starts now.
Welcome to Motley Fool Hidden Gems Investing. I'm Travis Hoium, joined today by Lou Whiteman and Tyler Crowe. Guys, we're taking over the Monday show today. So we can bring some heat. And over the weekend, we got some interesting news, Tyler, that Jensen Wong and Nvidia, again, making potentially massive deals. This time, the reporting from their Wall Street Journal is that they are going to basically backstop potentially a $250 billion project. I even saw $500 billion thrown around that OpenAI would like to build. Somebody's got to guarantee those debt payments, those lease payments, and Nvidia apparently seems to have raised their hand.

**Tyler Crowe** (0:51)
Yeah. Well, to the point we're all kind of having the substitute teacher energy today with the three of us doing the Monday show.
The funny thing was is I feel like that Wall Street Journal article kind of buried the lead too because not only was Nvidia saying they're going to guarantee that $250 billion, that's just for the build out of the facility and had nothing to do with the chips. And then it was like, and could potentially also be another $350 billion in chips on top of the equity stake that Nvidia has already invested in it.

**Travis Hoium** (1:20)
What's a half trillion dollars between friends?

**Tyler Crowe** (1:23)
I mean, it really, the numbers now almost seem like they're just made up. I'm about to go $11 billion or something like for all these deals here.
And again, this wasn't the only deal that was announced today. Nvidia is on a real heater here. On top of the OpenAI deals that were announced, it was obviously smaller because these were smaller companies. But Nvidia also decided to deal with Thinking Machines, which was a new startup coming out of those, like the OpenAI genesis of people who started early on, as well as, I always mispronounce his last name, Ilija Sutskever. Sutskever, a safe super intelligence. Awful name, dude. Get a better name. Either way, all three of these companies are just basically getting Nvidia money thrown at them right now. And so, a lot of money going out the door.
Really kind of, you know, we're going to touch on this. Like that circular accounting thing is starting to come back up again, which does give some people who have been around a little bit longer some nervous feelings.

**Travis Hoium** (2:30)
Lou, this reminds me a little bit about the discussions we've had about Eli Lilly. Hey, when the times are good and you've got a high valuation, you've got cash, try to build a remote around your business. Eli Lilly is buying other pharma companies.
Nvidia is making sure their customers are staying afloat.

**Lou Whiteman** (2:46)
Yeah. I'm glad Tyler didn't say bender. They're not on a bender today. They're on a roll, but maybe we'll see. It might not turn into a bender. Here's the good news for Nvidia shareholders is that there's enough cash there. This is not a bad balance sheet. So the debate here is whether or not the stock works or the stock doesn't work from here. It's not will the company fail. I don't think we have to worry about that. Look, there is a way that this all works out fine. The way is AI is everything we think it is. It generates all the revenue that we've seen in projections. Revenue solves all issues.
If all these companies can pay back all of this debt that they're taking on, Nvidia has got nothing to worry about. But obviously, there's a lot of ways this doesn't work out. Tyler mentioned the circular funding. The obvious comparison here is vendor financing in the 90s.
I get the concerns. I get why that's scary. But let's just say balance sheets are a lot stronger than in the 90s, back to what I said before about Nvidia. This feels like a different business environment. In the 90s, we were financing fiber being laid that was 90 percent not being used or even more. We were building excess capacity. We weren't building for what we need today.

**Travis Hoium** (4:01)
Well, to be fair, we are building data centers that don't yet have chips in them. We're not seeing the supply hit the market quite yet.

**Lou Whiteman** (4:08)
Data center vacancy rates are near record lows. I think right now, the assumption, I mean, we see all these companies making deals, SpaceX is selling off its data centers wherever whoever needs it. The Neo Clouds are all out there. There is a lot more today demand for data centers than there was for this fiber back in the 90s.