WEBVTT - Nvidia Becomes First $5 Trillion Firm, Lifted by AI Boom 0:00:02.520 --> 0:00:12.920 Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive 0:00:12.960 --> 0:00:16.759 from coast to coast with Caroline Hyde in New York 0:00:17.040 --> 0:00:20.200 and Edva though in San Francisco. 0:00:23.360 --> 0:00:26.680 This is Bloomberg Tech coming up in Vidio, the first 0:00:26.800 --> 0:00:30.560 five trillion dollar company as President Trump puts Blackwell at 0:00:30.600 --> 0:00:31.800 the heart of talks with China. 0:00:32.000 --> 0:00:34.880 We had the interview with Nvidio CEO Jensen one. 0:00:35.040 --> 0:00:38.280 Plus Alphabet, Microsoft and Meta all sut to report results 0:00:38.320 --> 0:00:41.479 after the closing bell today will drill down on what investors. 0:00:41.120 --> 0:00:41.680 Are looking for. 0:00:42.840 --> 0:00:46.800 An AI startup character AI will ban kids from having 0:00:46.800 --> 0:00:49.239 conversations with chatbots on its platform. 0:00:49.520 --> 0:00:52.160 We have more in that story later this hour, but first. 0:00:51.880 --> 0:00:54.120 We check in on these markets that are at a 0:00:54.240 --> 0:00:56.920 new record high five straight days of gains on the 0:00:57.000 --> 0:00:58.600 Nasdaq one D We're up four. 0:00:58.560 --> 0:00:59.360 Tenths of percent. 0:00:59.640 --> 0:01:01.960 It is our worth more than thirty three trillion, this 0:01:02.120 --> 0:01:05.480 entire benchmark. But there's one keen juggernaut ed underneath that 0:01:05.720 --> 0:01:06.400 and you're looking. 0:01:06.240 --> 0:01:09.240 At it, yep, and that is in Nvidia. 0:01:09.400 --> 0:01:13.399 Nvidia is the first company to reach five trillion dollars 0:01:13.720 --> 0:01:17.120 of market value of market capitalization, and one of the 0:01:17.120 --> 0:01:19.160 things we reflected on on the gain in the shares, 0:01:19.160 --> 0:01:21.520 if we could pre bring up that chart, is the 0:01:21.600 --> 0:01:25.840 idea that that value jump has happened very quickly from 0:01:25.920 --> 0:01:29.080 the four trillion dollar milestone. Why is the stock hire 0:01:29.120 --> 0:01:32.680 by four percent today in the session. It's because President 0:01:32.720 --> 0:01:37.119 Trump on board Air Force one saying will be speaking 0:01:37.280 --> 0:01:38.320 about Blackwell. 0:01:38.760 --> 0:01:40.360 It's a super duper chip. 0:01:40.760 --> 0:01:44.319 I think we may be talking about that with President Ji, 0:01:45.000 --> 0:01:48.200 and of course President Trump due to meet with China's leader. 0:01:48.520 --> 0:01:49.760 That's where the focus is. 0:01:49.920 --> 0:01:52.320 But in Vidia's role in it is what's driving the market. 0:01:52.440 --> 0:01:54.600 Let's stay on in video and bring in bloombergs Ian King, 0:01:54.880 --> 0:01:58.880 who leads our coverage as a semiconductor sector. The news 0:01:59.000 --> 0:02:01.520 is that the President has said that he will discuss 0:02:01.600 --> 0:02:05.440 Blackwell with China's President G. There is some explaining to 0:02:05.520 --> 0:02:08.440 do because the understanding of the market was this is 0:02:08.520 --> 0:02:13.120 Blackwell architecture for a deprecated lower power chip for China, 0:02:13.240 --> 0:02:16.560 not necessarily the leading edge, but there is actually quite 0:02:16.560 --> 0:02:17.240 a lot we don't know. 0:02:17.639 --> 0:02:20.200 Yeah, no, absolutely right, And if you just go by 0:02:20.240 --> 0:02:24.680 what the President has said yesterday or today and what 0:02:24.760 --> 0:02:27.520 he said previously, there's a gap. 0:02:27.639 --> 0:02:27.799 Right. 0:02:28.040 --> 0:02:31.160 Our understanding was they might be allowed to send part 0:02:31.200 --> 0:02:35.079 of this new chip line to China, but only a 0:02:35.200 --> 0:02:37.440 very reduced version of it. That was the understanding that 0:02:37.480 --> 0:02:39.440 would be better than what they can do now. That 0:02:39.480 --> 0:02:41.960 will be good for revenue. But if he's referring to 0:02:42.040 --> 0:02:45.240 the whole of the Blackwell line to effectively in Video's 0:02:45.480 --> 0:02:49.000 best chips, that's a massive expansion of the opportunity and 0:02:49.200 --> 0:02:52.200 would obviously explain a lot of excitement, but it's unlikely 0:02:52.280 --> 0:02:53.120 that that's the case. 0:02:53.600 --> 0:02:56.440 What's extraordinary is the level of excitement even prior to 0:02:56.480 --> 0:02:59.560 that statement on Air Force one, the fact that Jensen 0:02:59.600 --> 0:03:03.760 one was outlining how much rampant demand there is for 0:03:03.880 --> 0:03:07.880 Reuben and Blackwell, even without any China demand whatsoevery in. 0:03:09.080 --> 0:03:11.720 Yeah, No, you're absolutely right, and I think that would 0:03:11.760 --> 0:03:14.400 probably be the bigger driver of what's going on today 0:03:14.840 --> 0:03:16.919 if we sort of look at the Wall Street reaction. 0:03:17.400 --> 0:03:19.840 As you said, he put that number of half a 0:03:19.960 --> 0:03:23.640 trillion dollars of sales that he's sure he's going to 0:03:23.680 --> 0:03:27.280 get for these new chips over a five quarter period. 0:03:27.360 --> 0:03:29.960 So it's a little bit uncertain when it will exactly 0:03:30.320 --> 0:03:32.639 hit and how it will line up with Wall Street estimates, 0:03:32.680 --> 0:03:35.880 But you've got to remember that total revenue estimates for 0:03:36.000 --> 0:03:39.440 the company over the next couple of years are in 0:03:39.480 --> 0:03:42.320 the three hundred range. So five hundred is a lot 0:03:42.320 --> 0:03:45.440 more than three hundred. So regardless of how exactly that 0:03:45.480 --> 0:03:48.119 lines up and whether that's all captured in one year, 0:03:48.720 --> 0:03:51.720 is still a huge number. And really, as we saw 0:03:51.800 --> 0:03:54.480 from our TV interview with him yesterday, and as we 0:03:54.520 --> 0:03:57.840 saw from his appearance at the Big Show here in Washington, 0:03:58.040 --> 0:04:01.200 he's saying, look what bubble, don't worry about it. 0:04:01.760 --> 0:04:01.960 Ian. 0:04:02.280 --> 0:04:05.880 You've covered this industry since the late nineties, and you know, 0:04:05.920 --> 0:04:07.600 I was reflecting at the top of the show that 0:04:07.640 --> 0:04:10.160 the jump in market cap from four trillions five trillions 0:04:10.200 --> 0:04:14.600 quite recent. But there was so many headlines yesterday from 0:04:14.680 --> 0:04:16.800 Jensen Wong himself. You know, we heard from him for 0:04:16.880 --> 0:04:20.720 like an hour and a half in total after the keynote. 0:04:20.800 --> 0:04:23.000 Was there anything that was really important that jumped out 0:04:23.040 --> 0:04:24.840 that you think might have got lost in the wash 0:04:25.080 --> 0:04:26.480 of all of the news that happened. 0:04:26.680 --> 0:04:29.120 Yeah, I mean, he was trying. He's playing whackam all right. 0:04:29.680 --> 0:04:33.560 The biggest concern is that we're building ahead of the 0:04:33.600 --> 0:04:36.599 actual business case for AI. So a lot of what 0:04:36.680 --> 0:04:39.000 he said was like, hey, we're doing this this that 0:04:39.120 --> 0:04:41.359 was signing these deals to get rid of some of 0:04:41.400 --> 0:04:44.560 these blockages, were bringing these new products to market to 0:04:44.560 --> 0:04:47.840 get rid of some of these perceived blockages. Oh, by 0:04:47.880 --> 0:04:51.320 the way, here's our guaranteed revenue. And guess what, I'm 0:04:51.320 --> 0:04:53.280 on a plane to Asia to try and help sort 0:04:53.360 --> 0:04:55.640 out this big problem with China. So there was a 0:04:55.800 --> 0:04:58.480 huge amount of information given, but it was all channeled 0:04:58.520 --> 0:05:01.280 in the same direction, which is AI is real. We're 0:05:01.279 --> 0:05:03.200 going to make sure it's real, and we're going to 0:05:03.200 --> 0:05:05.000 get rid of some of these problems. 0:05:05.720 --> 0:05:08.479 Mexican King, Well, thank you so much for the roundup. 0:05:08.480 --> 0:05:10.480 And look in was just talking about the florry of 0:05:10.560 --> 0:05:13.240 partnerships that were announced yesterday. One key one of them 0:05:13.320 --> 0:05:15.560 in Video Planning to make a one billion dollar equity 0:05:15.600 --> 0:05:19.320 investment in Nokia. The announcement saw a massive search look 0:05:19.320 --> 0:05:20.400 at it in Nokia shares. 0:05:21.000 --> 0:05:23.080 We of course sat down with Jensen Wang. 0:05:22.839 --> 0:05:25.479 And Nokia CEO Justin Hootard about the news. 0:05:26.640 --> 0:05:29.600 For national security reasons, for economic reasons, our industry should 0:05:29.600 --> 0:05:31.679 be built on American technology, and for the very first 0:05:31.680 --> 0:05:32.640 time we can do that. 0:05:32.720 --> 0:05:34.520 We have a brand new product line. 0:05:34.279 --> 0:05:37.599 That takes advantage of computing, accelerated computing and AI, and 0:05:38.000 --> 0:05:40.680 we have a great partner to help us deal with Nokia. 0:05:41.560 --> 0:05:44.920 The market reaction kind of speaks for itself. There was 0:05:44.960 --> 0:05:48.360 a time where Nokia was already looking to America. You've 0:05:48.400 --> 0:05:50.480 been in the role since April. But may I start 0:05:50.480 --> 0:05:53.560 by asking you what role the administration played in bringing 0:05:53.600 --> 0:05:56.240 you both together? If this is indeed a strategic priority. 0:05:57.160 --> 0:05:59.480 I don't think there was anything specific that the administration 0:05:59.640 --> 0:06:03.520 did other than they've created the environment to support innovation. 0:06:03.640 --> 0:06:06.280 I mean, Jensen's talked about manufacturing, but it's also about 0:06:06.400 --> 0:06:10.200 R and D and innovation and technology leadership. And if 0:06:10.240 --> 0:06:12.560 you think about where this world is going, and all 0:06:12.600 --> 0:06:16.599 those incredible devices are gonna be built on video platforms, robotics, 0:06:16.640 --> 0:06:21.240 autonomous vehicles, augmented reality, virtual reality, we need a different 0:06:21.320 --> 0:06:24.000 kind of network in the future and that's what we realized, 0:06:24.360 --> 0:06:26.600 and that's why we wanted to forge this partnership so 0:06:26.640 --> 0:06:32.320 that we're building a network leveraging AI for AI services, 0:06:32.360 --> 0:06:33.880 and that's really the big change here. 0:06:34.200 --> 0:06:35.760 The technology is flowing both ways. 0:06:35.839 --> 0:06:37.160 I mean, what is it that you will be able 0:06:37.160 --> 0:06:40.360 to do with Nokia, Jensen un able to do on your. 0:06:40.200 --> 0:06:43.640 Own well, first of all, Nokia is in all of 0:06:43.640 --> 0:06:46.800 the world's base stations, and this air scale platform of 0:06:46.839 --> 0:06:49.680 Nokia's millions of base stations around the world, if our 0:06:49.720 --> 0:06:52.480 computers are not inside that base station doesn't help. It's 0:06:52.520 --> 0:06:55.280 no different than in videos tech computing platforms not inside 0:06:55.279 --> 0:06:57.640 of cars doesn't help. And so the first thing is 0:06:57.640 --> 0:06:59.240 we need a partner to get us into the world 0:06:59.320 --> 0:07:04.920 space station. We also remember we're bringing AI to radio networks, 0:07:04.920 --> 0:07:07.920 AI to RAM so that we can make wireless tech 0:07:07.960 --> 0:07:11.920 communications a lot more efficient. Second, we're bringing AI for 0:07:12.160 --> 0:07:15.120 the radio, meaning on top of these radio networks and 0:07:15.160 --> 0:07:17.960 these telecommunication network we're going to be able to provide 0:07:18.000 --> 0:07:20.200 AI services, which is going to be able to make 0:07:20.240 --> 0:07:23.080 it easier for us to do robotics and autonomous vehicles 0:07:23.080 --> 0:07:26.680 and industrial automation and reach all of the different places 0:07:26.720 --> 0:07:28.520 around the world. That's kind of hard to deal with. 0:07:28.560 --> 0:07:32.080 Wi Fi, celluar reads everything. And so we now have 0:07:32.200 --> 0:07:38.080 this fabric that we can deploy AI computing services on 0:07:38.120 --> 0:07:40.840 top of it. It's going to be completely revolutionary. 0:07:40.840 --> 0:07:42.680 In your world and in your market. 0:07:43.000 --> 0:07:46.320 Huawei is an influential player not just in Europe, I 0:07:46.320 --> 0:07:50.280 think also about the Middle East and Africa. How important 0:07:50.360 --> 0:07:53.880 is the relationship with Nvidia to be able to counter, 0:07:54.400 --> 0:07:56.440 you know, what Huawei does in those markets. 0:07:57.080 --> 0:07:58.840 Yeah, I look. I think for us, one of the 0:07:58.880 --> 0:08:00.920 principles I've had with my team is coming in has 0:08:00.960 --> 0:08:03.520 been do what we can do that no one else 0:08:03.560 --> 0:08:06.040 can do, and that is air scale. What we do 0:08:06.080 --> 0:08:08.200 with any rand software, the software that runs on it 0:08:08.280 --> 0:08:10.640 that we're going to be putting on on the Nvidia 0:08:10.760 --> 0:08:13.960 Arc platform, that do what we can do well, and 0:08:14.000 --> 0:08:14.760 partner with the. 0:08:14.680 --> 0:08:15.760 Best everywhere else. 0:08:16.080 --> 0:08:19.160 And this is a clear opportunity to partner with the best. 0:08:19.640 --> 0:08:23.280 And by the way, that's where America and the Western 0:08:23.280 --> 0:08:26.960 world succeeds because we don't necessarily have one company doing 0:08:27.000 --> 0:08:30.680 everything like Whuawei. We succeed because we partner aggressively. And 0:08:30.720 --> 0:08:33.040 you if you watch GtC today, it was hard to 0:08:33.440 --> 0:08:35.960 not find it obvious that you're partnering with everybody. But 0:08:36.040 --> 0:08:39.400 that's the advantage is this partnership. So we do what 0:08:39.440 --> 0:08:41.719 we do best, we let in Video do what they 0:08:41.720 --> 0:08:46.320 do best, and ultimately our customers win and ultimately for America, 0:08:46.320 --> 0:08:49.000 I think America will win because there'll be more innovation faster. 0:08:49.240 --> 0:08:53.240 Nobody knows telecommunications better than Nokia. They've been at it 0:08:53.280 --> 0:08:55.360 for a long time. They're all over the world, and 0:08:55.520 --> 0:08:59.600 between our two partnerships, we know how wireless telecommunications we 0:08:59.640 --> 0:09:04.560 have and we have accelerated computing all in this partnership. 0:09:06.880 --> 0:09:10.600 Nvidia CEO Jensen Wang and Nokia CEO Justin Hotard. There, 0:09:10.920 --> 0:09:13.880 let's get more on Nvidia this deal with Nokia. Vlad 0:09:13.960 --> 0:09:17.360 Galibov joins us. He's senior research director at Omdia, where 0:09:17.360 --> 0:09:21.880 he's responsible for cloud and data center research. Under this arrangement, 0:09:21.880 --> 0:09:25.040 that the technology flows both ways, but it's basically about 0:09:25.120 --> 0:09:28.760 wireless tech for use at the edge. You know, it 0:09:28.800 --> 0:09:31.400 was a huge surprise just going on the reaction of 0:09:31.480 --> 0:09:35.720 Nokia shares, but it's it's Nvidia moving into yet another 0:09:35.800 --> 0:09:36.400 new segment. 0:09:36.840 --> 0:09:38.320 What's your reaction to it, please? 0:09:40.040 --> 0:09:43.880 So it is I think we have seen the transition 0:09:44.080 --> 0:09:48.400 towards a virtualized radio access network be a little bit 0:09:48.760 --> 0:09:53.560 slower than what we would like. With this partnership, Nokia 0:09:53.640 --> 0:09:58.480 is basically promising to rewrite it. Stack up data is harder, 0:09:58.559 --> 0:10:03.840 stack updated software, stack optimize on Nvidia's software libraries and 0:10:03.960 --> 0:10:06.599 on Nvidia hardware. So I think it's very significant. 0:10:08.679 --> 0:10:10.920 Why does Nvidia need to make a one billion dollar 0:10:10.960 --> 0:10:14.360 equity investment in Nokia and own three percent of it 0:10:14.760 --> 0:10:15.719 in order to do this. 0:10:17.080 --> 0:10:20.160 I think that what we've seen in the past, whenever 0:10:20.200 --> 0:10:24.040 you ask a company to rewrite their software stack, it 0:10:24.080 --> 0:10:28.680 is costly. In fact, Amazon did something similar a little 0:10:28.679 --> 0:10:32.440 bit more under the radar when they started shipping their 0:10:32.559 --> 0:10:35.760 ARM CPU. What they did is they would enable software 0:10:35.800 --> 0:10:40.040 developers through funding to optimize their code for ARMED, to 0:10:40.160 --> 0:10:43.080 migrate their code from Excity six to ARM. In essence, 0:10:43.120 --> 0:10:46.160 what Nvidia is asking nok to do is to optimize 0:10:46.160 --> 0:10:49.959 their code for whatever is already virtualized from Xcity six 0:10:50.000 --> 0:10:53.720 to ARM, but also to move from a physical RAN 0:10:54.200 --> 0:10:56.360 appliances to a virtual RAN. 0:10:57.800 --> 0:11:01.160 What's extraordinary, Vlad here is the bigger picture. 0:11:01.800 --> 0:11:04.520 This is in Vidia time and time again. 0:11:05.000 --> 0:11:08.920 Basically making investments for people to ensure that in Vidio 0:11:09.080 --> 0:11:12.680 technology is integral across every industry group if you just 0:11:12.720 --> 0:11:14.960 go through not here when you think it telecoms, but 0:11:15.040 --> 0:11:18.080 they did deals across Lucid, across Uber. We think about 0:11:18.200 --> 0:11:20.880 robotaxes and thinking not just tell them communications I think 0:11:20.880 --> 0:11:22.640 are the future of software. When we think about what 0:11:22.640 --> 0:11:24.640 they've been doing with Palenteer of flood. Is there any 0:11:24.640 --> 0:11:27.440 other wide open space for in Vidia to get into. 0:11:28.600 --> 0:11:31.840 I think you're absolutely right. This is in Nvidia utilizing 0:11:32.000 --> 0:11:35.000 its cash stockpile in a very smart way by entering 0:11:35.000 --> 0:11:38.439 another market. The mobil infrastructure market itself is only thirty 0:11:38.440 --> 0:11:42.200 five billion, so I think Jensen understands that this is 0:11:42.240 --> 0:11:44.120 not going to be the holy grail. This is one 0:11:44.160 --> 0:11:47.160 of the many investments. I think that you see something 0:11:47.520 --> 0:11:51.160 very similar that I think will become more prominent in storage. 0:11:51.720 --> 0:11:53.720 I think that in Vidia has a lot more room 0:11:53.760 --> 0:11:56.920 to grow in a networking I think you'll see it 0:11:57.240 --> 0:12:00.000 growing a lot more in customer piece a consumer PC, right, 0:12:00.120 --> 0:12:01.640 because that's one of the things it wants to do. 0:12:01.679 --> 0:12:04.520 With Intel. I think you end up seeing it probably 0:12:04.600 --> 0:12:08.080 in their robot revolution in the future. They also said 0:12:08.080 --> 0:12:10.959 they want to be in cars, so I think that 0:12:11.040 --> 0:12:17.280 we can see that Jensen's strategy is just maximize your 0:12:17.320 --> 0:12:22.320 presence and specifically get your programming environment, the cold environment, 0:12:22.760 --> 0:12:23.800 to be ubiquitous. 0:12:24.840 --> 0:12:26.679 Just tell us how ubiquitous it already is. 0:12:26.720 --> 0:12:28.679 Flat because I think so many of us make the 0:12:28.760 --> 0:12:31.319 quick assumption that it's all about hardware and se inconductors, 0:12:31.400 --> 0:12:33.120 but this is a full tech stack, and the fact 0:12:33.120 --> 0:12:35.679 that they're so ingrained in terms of software as well. 0:12:35.880 --> 0:12:39.200 It's almost become the de facto king across every other 0:12:39.600 --> 0:12:40.600 big tech company. 0:12:41.840 --> 0:12:44.960 Yes, in fact, I myself underestimated it a little bit 0:12:45.040 --> 0:12:47.560 because you know, one of the things we know is 0:12:47.720 --> 0:12:52.080 a Nvidia advantage was the Envy Link, and we are 0:12:52.080 --> 0:12:55.360 starting to see more challengers in the networking domain. But 0:12:55.400 --> 0:12:59.120 the reality is the networking is not as sticky as software. 0:12:59.240 --> 0:13:02.680 Software is extremely sticky. The thing is they have made 0:13:03.040 --> 0:13:07.040 such a rich suite of tools, in essence, a programming 0:13:07.120 --> 0:13:09.840 language and so many tools that make it easier for 0:13:10.280 --> 0:13:13.800 different skill sets of programmers to develop. I think that's 0:13:13.800 --> 0:13:17.240 what's so impressive about the Nvidia software portfolio, and the 0:13:17.280 --> 0:13:21.560 fact that you can use it in for many optimized functions. 0:13:21.720 --> 0:13:25.199 I think that's what's very interesting. In essence, Jensen is asking, 0:13:25.360 --> 0:13:28.480 she's army of developers, I want you to help this industry, 0:13:28.520 --> 0:13:31.760 in this industry, and this industry and this industry. That's 0:13:31.800 --> 0:13:33.600 I think what's the most impressive. 0:13:35.200 --> 0:13:38.920 Flat The biggest disclosure that Jensen Woe made was the 0:13:38.960 --> 0:13:42.920 five hundred billion dollar figure of revenues that they say 0:13:42.960 --> 0:13:47.160 will come from just Blackwell Rubin specifically over five fiscal 0:13:47.280 --> 0:13:51.400 quarters excluding China. When that number went up on the 0:13:51.400 --> 0:13:55.240 screen on stage, a lot of people reacted, how far 0:13:55.360 --> 0:13:58.480 ahead is that figure than the model that you had 0:13:58.880 --> 0:13:59.760 for the data center. 0:13:59.760 --> 0:14:02.199 Bus says that n video is doing. 0:14:03.400 --> 0:14:05.760 It's I knew you were going to ask me this, 0:14:05.800 --> 0:14:08.160 so I did. Of course, that was what we were 0:14:08.160 --> 0:14:11.319 also watching yesterday. It's about one hundred billion high. So 0:14:11.360 --> 0:14:14.520 this creates about one hundred billion opportunity. I think it's 0:14:14.640 --> 0:14:19.160 very significant, particularly if we end up seeing the Black 0:14:19.200 --> 0:14:21.400 Veil deal with China, because that means that we then 0:14:21.520 --> 0:14:25.160 have more than one hundred billion of upside. I think 0:14:25.200 --> 0:14:27.640 when I think about the one hundred billion of upside 0:14:28.280 --> 0:14:31.200 that Jensen is showing us, I think of it as 0:14:31.200 --> 0:14:34.640 a backlog an order pipeline. There are a few concerns 0:14:34.680 --> 0:14:36.240 that I have along the way in terms of that 0:14:36.320 --> 0:14:39.960 materializing in my forecast. So I am going to start 0:14:40.000 --> 0:14:42.800 exploring bicking it in. But some of the things that 0:14:42.880 --> 0:14:47.400 I am concerned about are physical infrastructure availability and supply 0:14:47.520 --> 0:14:51.040 chain readiness, and power availability in the data center. I 0:14:51.040 --> 0:14:52.880 would say that these are the three things that I 0:14:52.960 --> 0:14:56.760 am most concerned about. Is all of the components that 0:14:56.800 --> 0:15:00.400 we need there in the supply chain. Specific is the 0:15:00.440 --> 0:15:04.160 physical infrastructure ready for the data centers because there's very 0:15:04.160 --> 0:15:07.640 long lead times on some physical infrastructure. And then finally 0:15:07.720 --> 0:15:08.640 it's the power. 0:15:08.680 --> 0:15:11.040 Black Can I jump in very briefly here because when 0:15:11.080 --> 0:15:12.640 you think about the supply chain, you think about the 0:15:12.680 --> 0:15:14.880 other components that are needed within data centers. S k 0:15:15.040 --> 0:15:18.200 Heinez says, it's full twenty twenty six chips late, it's 0:15:18.240 --> 0:15:20.160 sold out exactly. 0:15:20.920 --> 0:15:24.000 So the thing is with ESK Hannix, they are in 0:15:24.040 --> 0:15:26.120 the blackwell, but the rubbin is done with some sung 0:15:26.560 --> 0:15:29.200 So I think that there's some smart hedging of bets 0:15:29.200 --> 0:15:32.640 there from a memory perspective, But there's so many other aspects. 0:15:32.720 --> 0:15:36.240 There's packaging material and again in videos being very careful 0:15:36.240 --> 0:15:38.880 with how to balance the packaging material supply chain, but 0:15:39.000 --> 0:15:43.280 Nvidia has only been able to control the semiconductor part 0:15:43.320 --> 0:15:46.800 of supply chain. I'm worried about some fundamental materials like 0:15:46.920 --> 0:15:50.000 precious metals used in the building of the servers and 0:15:50.040 --> 0:15:51.200 the electrical equipment. 0:15:52.080 --> 0:15:55.240 So why where metals are key concern when we're thinking 0:15:55.280 --> 0:15:57.800 about US and China. Vlad Galibov joy to have you 0:15:57.840 --> 0:16:01.320 on Senior research director at Omdia. Thank you coming up 0:16:01.520 --> 0:16:03.880 more on Nvidia and it's border impact on the tech markets. 0:16:04.000 --> 0:16:04.760 It's a blue meg. 0:16:04.720 --> 0:16:17.280 Tech Nvidia has become the first five trillion dollar company. 0:16:17.320 --> 0:16:18.720 This is CEO Jensen. 0:16:18.400 --> 0:16:21.720 Wang's spree of deals propels the AI frenzy to new heights. 0:16:21.800 --> 0:16:24.280 Let's bring in Marghi Patel for Moore. She's a senior 0:16:24.280 --> 0:16:27.800 portfolio manager and head of the capital allocation team at 0:16:27.840 --> 0:16:30.720 all Spring Global Investments. Six hundred and twenty nine billion 0:16:30.760 --> 0:16:34.520 dollars in assets under advisement, about eleven billion dollars worth 0:16:34.560 --> 0:16:39.080 of Nvideo shares in your fun Margie, your reaction to 0:16:39.200 --> 0:16:43.760 this company being the world's first five trillion dollar market 0:16:43.840 --> 0:16:46.960 value company. 0:16:46.320 --> 0:16:50.040 Well, it really shows us. This representation is huge sea 0:16:50.160 --> 0:16:55.560 change in technology, which is artificial intelligence, and certainly it's 0:16:55.560 --> 0:16:56.720 the leader, it's way ahead. 0:16:56.800 --> 0:16:58.680 But honestly, it's like a tsunami. 0:16:58.720 --> 0:17:00.880 There's one big wave and the and there's wave after 0:17:00.960 --> 0:17:03.120 wave after wave, and we really don't know if we're 0:17:03.080 --> 0:17:06.880 even near the peak of artificial intelligence really being incorporated 0:17:06.920 --> 0:17:09.560 in all the different industries. So this is a qualitative 0:17:09.640 --> 0:17:12.080 change that we've never seen in our investment careers. 0:17:12.680 --> 0:17:15.080 So Margie, just to focus in on in Video at 0:17:15.119 --> 0:17:17.440 this moment, do you add to. 0:17:17.480 --> 0:17:19.399 That stake that you currently have. 0:17:19.760 --> 0:17:22.240 We've still got seventy three buys out there from the 0:17:22.200 --> 0:17:24.640 analyst community and in one sell even at a five 0:17:24.680 --> 0:17:25.680 trillion dollar valuation. 0:17:27.160 --> 0:17:27.480 Yeah. 0:17:27.960 --> 0:17:30.600 Well, it's very hard to be negative on in Vidia 0:17:30.760 --> 0:17:33.880 unless you see some negative development in the company. And 0:17:34.320 --> 0:17:36.720 just because the stock has gone up, and actually looking 0:17:36.720 --> 0:17:39.800 at my portfolio, I actually have some stocks that have 0:17:39.840 --> 0:17:42.480 actually are performed in Vidia this year gone up even 0:17:42.560 --> 0:17:44.639 more so, I would say that as long as a 0:17:44.720 --> 0:17:47.720 gross path looks pretty good for n India, that it 0:17:47.760 --> 0:17:49.159 would be a worthwhile add. 0:17:49.520 --> 0:17:51.720 I mean, look at Micron for example, of one hundred 0:17:51.720 --> 0:17:53.439 and fifty percent so far this year. Some of the 0:17:53.520 --> 0:17:56.520 alterias that have really managed to be swept up in 0:17:56.560 --> 0:17:59.520 what's needed in data centers and compute more broadly, where 0:17:59.560 --> 0:18:01.400 hasn't the market seen enough value yet? 0:18:03.840 --> 0:18:06.920 Well, I think really all the oxygen is being sucked 0:18:06.960 --> 0:18:08.960 out of other areas of the market and going into 0:18:09.160 --> 0:18:13.080 artificial intelligence, data storage, data centers, all the rest of that, 0:18:13.600 --> 0:18:16.640 and I think we're still continuing on that trail. All 0:18:16.680 --> 0:18:19.920 those companies have high cash flow to fund these activities. 0:18:20.400 --> 0:18:23.440 There's no sign that they're losing their enthusiasm to make 0:18:23.480 --> 0:18:24.920 investments to keep. 0:18:24.720 --> 0:18:25.879 A leading edge and viata. 0:18:26.359 --> 0:18:28.440 And really, if you look at some of those stocks, 0:18:28.440 --> 0:18:30.639 like Micron's a great example. If the worst thing you 0:18:30.640 --> 0:18:32.600 can say about it is the price has gone up 0:18:32.640 --> 0:18:34.600 a lot, that doesn't mean you ought to sell it here. 0:18:34.640 --> 0:18:36.960 So I think we're still somewhere in the middle of 0:18:37.000 --> 0:18:40.840 this huge wave of changing the whole economy, changing technology, 0:18:40.880 --> 0:18:43.480 and it's really too soon to say stocks are too high. 0:18:43.480 --> 0:18:44.680 I'm going to bail out. 0:18:46.119 --> 0:18:47.400 On that note, Margie. 0:18:47.480 --> 0:18:50.720 I spoke to Jensen one yesterday afternoon and I had 0:18:50.720 --> 0:18:53.240 to ask about his view on a market bubble. 0:18:53.280 --> 0:18:54.320 Let's listen to what he said. 0:18:55.320 --> 0:18:57.320 I don't believe we're in the eyebubble, and the reason 0:18:57.359 --> 0:19:00.440 for that is we're going through a natural trend position 0:19:01.000 --> 0:19:03.919 from an old computing model based on general purpose computing 0:19:03.960 --> 0:19:08.440 to accelerated computing. We also know that AI has now 0:19:08.480 --> 0:19:12.320 become good enough because of reasoning capability, research capabilities, its 0:19:12.359 --> 0:19:15.920 ability to think. It's now generating tokens and now generating 0:19:15.920 --> 0:19:18.160 intelligence that's worth paying for. 0:19:21.080 --> 0:19:23.359 Jensen's argument is the same it has been for the 0:19:23.440 --> 0:19:25.600 last two years, we're in the early innings of a 0:19:25.640 --> 0:19:30.280 shift from general purpose computing to accelerated computing. But the 0:19:30.359 --> 0:19:33.560 different bit now is he's saying AI is worth paying for. 0:19:33.680 --> 0:19:36.040 I think that he's saying there's real revenues on the 0:19:36.080 --> 0:19:42.919 software side. Is that the evidence here is that the argument, well, I. 0:19:42.880 --> 0:19:45.240 Think it's really not so much. We haven't actually seen 0:19:45.560 --> 0:19:48.680 revenue pourion. But I think it's a change that companies 0:19:48.720 --> 0:19:50.760 are making because they see that this is what they 0:19:50.800 --> 0:19:53.560 need for their future. And I think it's totally different. 0:19:53.560 --> 0:19:56.160 As he was making the point from say the Internet 0:19:56.160 --> 0:19:59.200 Bubble that people often make a comparison with the Internet 0:19:59.200 --> 0:20:02.760 bubble was about degregulation of the telecom industry and it 0:20:02.840 --> 0:20:06.040 was about moving data and voice faster through pipes. It 0:20:06.080 --> 0:20:10.520 wasn't a material change. This is artificial intelligence. All the 0:20:10.560 --> 0:20:13.560 new chips and so forth are really a fundamental change 0:20:13.640 --> 0:20:17.399 in how we perform all kinds of tasks related in 0:20:17.480 --> 0:20:21.040 our economy. And I think because it's happened so fast, 0:20:21.080 --> 0:20:23.520 it's really only been say one year or two years, 0:20:23.800 --> 0:20:26.359 it's hard to adjust to say we're looking on the 0:20:26.440 --> 0:20:29.320 verge of a whole new world and how we approach technology. 0:20:29.359 --> 0:20:31.960 So I think that's why people are a little discombobulated 0:20:32.480 --> 0:20:34.480 seeing how fast these socks have taken off. 0:20:34.520 --> 0:20:36.960 But they all have the cash flow to finance's growth. 0:20:37.280 --> 0:20:40.280 So it isn't as if they're artificially borrowing money to 0:20:40.320 --> 0:20:42.359