1
00:00:00,160 --> 00:00:03,160
Speaker 1: Right now, the most valuable company in the world has

2
00:00:03,240 --> 00:00:05,760
Speaker 1: reported its results today. Its market cap is more than

3
00:00:05,800 --> 00:00:09,840
Speaker 1: three trillion dollars. It's California based computer chip manufacturer in

4
00:00:09,920 --> 00:00:13,600
Speaker 1: Nvidiat reporting sixty nine billion New Zealand dollars in revenue

5
00:00:13,600 --> 00:00:16,000
Speaker 1: for the first three months to January twenty six. That

6
00:00:16,120 --> 00:00:18,720
Speaker 1: is a record number for the company, which means it's

7
00:00:18,760 --> 00:00:21,480
Speaker 1: probably a record number for the world and better than

8
00:00:21,520 --> 00:00:25,000
Speaker 1: forecast we're predicting. Greg Smith is with Devin Funds. He's

9
00:00:25,000 --> 00:00:26,880
Speaker 1: the head of retail, Greg Good Evening.

10
00:00:27,280 --> 00:00:28,120
Speaker 2: Good at Earning Royn.

11
00:00:28,200 --> 00:00:30,320
Speaker 1: So what are they doing. Well, there this new chip

12
00:00:30,320 --> 00:00:31,880
Speaker 1: that they've got high uptake for that.

13
00:00:32,840 --> 00:00:35,760
Speaker 2: Yeah, that's right to these high performance, high tech chips.

14
00:00:35,800 --> 00:00:38,360
Speaker 2: So they say it's all about AI. Demand sells up

15
00:00:38,400 --> 00:00:43,040
Speaker 2: nearly eighty percent, as you said, and this the growth

16
00:00:43,280 --> 00:00:45,120
Speaker 2: has slowed down if you go over the past yet

17
00:00:45,240 --> 00:00:48,080
Speaker 2: was sixty five percent goaick a year ago as two

18
00:00:48,320 --> 00:00:50,639
Speaker 2: one hundred and sixty percent is slowing down a bit,

19
00:00:50,680 --> 00:00:53,400
Speaker 2: But yeah, certain there's certainly sort of kicking goals in

20
00:00:53,440 --> 00:00:56,320
Speaker 2: terms of the demand for their chips. There's no denying that.

21
00:00:56,440 --> 00:00:58,319
Speaker 2: And it's really been reflecting the ship. I should look

22
00:00:58,320 --> 00:01:01,360
Speaker 2: at that it's up nine hundred percent since early twenty

23
00:01:01,360 --> 00:01:03,080
Speaker 2: twenty three and the only company worth more in the

24
00:01:03,080 --> 00:01:06,760
Speaker 2: world of Apple, and it's worth thirty times more than

25
00:01:06,760 --> 00:01:09,760
Speaker 2: the entire value about stock market. So not bad for

26
00:01:09,800 --> 00:01:11,840
Speaker 2: a company that was founded in ninety ninety three over

27
00:01:11,880 --> 00:01:13,240
Speaker 2: a coffee at the Dennis.

28
00:01:13,760 --> 00:01:16,320
Speaker 1: Is Apple back ahead of it because then video was

29
00:01:16,360 --> 00:01:18,560
Speaker 1: ahead of Apple. Is Apple back out in front now

30
00:01:18,600 --> 00:01:19,000
Speaker 1: are they?

31
00:01:19,680 --> 00:01:22,039
Speaker 2: Yeah? That's right. This would have been sort of jostling

32
00:01:22,080 --> 00:01:25,520
Speaker 2: for position a bit. But Apple, of course is also

33
00:01:25,640 --> 00:01:28,160
Speaker 2: on the AI trainers are all the big tech so

34
00:01:28,280 --> 00:01:30,720
Speaker 2: they are hoping that that sort of drives the next

35
00:01:30,800 --> 00:01:34,560
Speaker 2: round of upgrades in their iPhones. But in the media

36
00:01:34,640 --> 00:01:37,640
Speaker 2: that controls around about eighty percent of the AI market,

37
00:01:37,800 --> 00:01:41,559
Speaker 2: So you're seeing the likes of Amazon, MESA, Microsoft, Google,

38
00:01:41,640 --> 00:01:44,279
Speaker 2: they are all customers. It's all about this exponential growth

39
00:01:44,280 --> 00:01:47,520
Speaker 2: of the cloud as well. Yeah, you think chat, GPT

40
00:01:48,280 --> 00:01:51,000
Speaker 2: and those sort of AI models. They require these high

41
00:01:51,040 --> 00:01:54,559
Speaker 2: performance chips. So look, there's no denying demand this seeing

42
00:01:54,760 --> 00:01:57,480
Speaker 2: and you can actually argue that even at three point

43
00:01:57,520 --> 00:02:02,160
Speaker 2: two trillion US dollars, it's not it's trading on evaluation

44
00:02:02,280 --> 00:02:05,040
Speaker 2: of around thirty times and to give you an idea

45
00:02:05,440 --> 00:02:08,680
Speaker 2: frition Plogal healthcare in New Zealand is very nearly fifty

46
00:02:08,800 --> 00:02:11,120
Speaker 2: times and it's growing at a slower rate. But I

47
00:02:11,120 --> 00:02:13,400
Speaker 2: guess the key thing to arts rhyme will be, you know,

48
00:02:13,440 --> 00:02:15,600
Speaker 2: are they going to have it their own way and

49
00:02:15,760 --> 00:02:18,200
Speaker 2: in finetem which is possibly not the case. And one

50
00:02:18,320 --> 00:02:20,440
Speaker 2: real interesting thing that people might have heard off of

51
00:02:20,520 --> 00:02:24,840
Speaker 2: this new Chinese startup Deep Sea and are basically claiming

52
00:02:24,880 --> 00:02:28,040
Speaker 2: that you don't need these high performance chips that in

53
00:02:28,160 --> 00:02:31,920
Speaker 2: video producers to run their AI model. So that's not

54
00:02:32,080 --> 00:02:34,480
Speaker 2: proven yet, but yeah, if that is does prove to

55
00:02:34,520 --> 00:02:37,239
Speaker 2: be the cation, and it could be really have really

56
00:02:37,240 --> 00:02:38,600
Speaker 2: strong implications for in video.

57
00:02:38,840 --> 00:02:40,800
Speaker 1: People are still a bit skeptical about that claim at

58
00:02:40,800 --> 00:02:42,560
Speaker 1: this point, and I think it's fair to say investors,

59
00:02:42,720 --> 00:02:44,959
Speaker 1: but what about the fact that they're now making more

60
00:02:45,000 --> 00:02:46,800
Speaker 1: off their data centers than anything else?

61
00:02:47,720 --> 00:02:51,880
Speaker 2: Oh? Absolutely, and yes it's ninety one percent. It's in

62
00:02:52,000 --> 00:02:53,880
Speaker 2: video have been around a long time, you know, they've

63
00:02:53,880 --> 00:02:56,800
Speaker 2: been around It's the early nineteen nineties, so you know,

64
00:02:56,800 --> 00:02:59,519
Speaker 2: it's really only the lasted a few years that have

65
00:02:59,560 --> 00:03:03,400
Speaker 2: been seeing some explosion and growth from data centers. And

66
00:03:03,480 --> 00:03:07,799
Speaker 2: in fact it's risen tenfold over the past two years.

67
00:03:07,800 --> 00:03:10,120
Speaker 2: So that's that's where really where all the growth is

68
00:03:10,120 --> 00:03:13,200
Speaker 2: coming from. You know, these the data centers that used

69
00:03:13,200 --> 00:03:15,200
Speaker 2: to sort of have and company buildings are sort of

70
00:03:15,240 --> 00:03:17,200
Speaker 2: now moving away from that, and that's sort of what

71
00:03:17,240 --> 00:03:19,680
Speaker 2: it's all about. And now we're seeing the likes of

72
00:03:20,440 --> 00:03:22,200
Speaker 2: big tech. You know, obviously we've seen them in New

73
00:03:22,280 --> 00:03:24,799
Speaker 2: Zealand as well. There's been a real proliferation of them.

74
00:03:25,040 --> 00:03:28,080
Speaker 2: So that's in videos writing it. You can't argue that

75
00:03:28,120 --> 00:03:30,480
Speaker 2: they're seeing a demand. I guess the thing will be

76
00:03:30,560 --> 00:03:33,359
Speaker 2: on the other side and how these big tech companies

77
00:03:33,400 --> 00:03:36,320
Speaker 2: actually monetize this. So that's probably going to be the

78
00:03:36,360 --> 00:03:39,640
Speaker 2: next interesting thing. And you know, some are perhaps rightly

79
00:03:39,720 --> 00:03:42,080
Speaker 2: comparing this to what happened in the dot com boom,

80
00:03:42,480 --> 00:03:44,840
Speaker 2: and some of the old enough to may remember that

81
00:03:45,320 --> 00:03:49,200
Speaker 2: the biggest company in the world was Cisco. You go

82
00:03:49,280 --> 00:03:53,000
Speaker 2: back that time is actually double Microsoft now that's still around,

83
00:03:53,040 --> 00:03:55,000
Speaker 2: and they used to they produce routers, and that was

84
00:03:55,040 --> 00:03:57,560
Speaker 2: going to be the next big thing. They are currently

85
00:03:57,640 --> 00:04:00,480
Speaker 2: valued at a couple of hundred billion news dollars. So yes,

86
00:04:00,560 --> 00:04:03,040
Speaker 2: things can change. You can go from being a darling

87
00:04:03,040 --> 00:04:05,520
Speaker 2: to a not so darling so but for now and

88
00:04:05,640 --> 00:04:06,880
Speaker 2: videos simply riding away.

89
00:04:07,280 --> 00:04:09,280
Speaker 1: Yeah, interesting and we'll see what the Chinese have got

90
00:04:09,280 --> 00:04:11,840
Speaker 1: to say about it. Thanks Greg, Greg Smith, Devon Funds,

91
00:04:11,840 --> 00:04:15,400
Speaker 1: head of Retail. For more from Heather Duplessy Allen Drive,

92
00:04:15,600 --> 00:04:19,000
Speaker 1: listen live to news talks they'd be from four pm weekdays,

93
00:04:19,120 --> 00:04:21,320
Speaker 1: or follow the podcast on iHeartRadio