pre mkt thoughts 21 May 2026 Yields retraced last night on mkt optimism towards a sight of the end of the Iran war. 30Y yields dropped ~8bps from 5.18% to 5.1%. In asia trading, they have rebounded back slightly higher. NVDA earnings delivered a solid beat however the market response to it was rather lacklustre. Like i mentioned earlier, core questions for NVDA towards the sustainability of its 75% gross margins into 2028 and beyond remain unanswered and form a huge part of the tepid response from investors. Notable for NVDA is the BoM costing. Memory is now the second most expensive component in a NVDA VR200 rack (7.8M) , costing ~2M in each rack outfit. Meanwhile things like substrates form only ~10K in value. This gives good context from the subtle warning towards memory makers not to force people's hands in find alternatives. Memory is also trading firm in pre mkt with MU at 738 and Korea's KOSPI up 8.4% - for context, this is the 4th biggest one day jump on record and the index in 2026 had already 9 5% moves...talk about volatility! Given the news about the leverage being taken in KR, I would stay wary of this market because positioning overhangs can easily lead to cascading sell pressure. NVDA has also pretty much conceded China's AI chip market to Huawei - anticipating zero future sales for the chinese market. In other news, OAI has reported to be filing for IPO soon. This has spiked up $9984 up ~20% today as this would potentially unlock a path to liquidity for Masa's enormous OAI position. Interestingly, this alongside with SPCX will mean we will have one of the biggest IPO supply coming into the market at the best timings. Let me know if there is anything i missed Good Luck!(degentrading)