WEBVTT - Wedbush Securities' Dan Ives Talks Nvidia

0:00:02.520 --> 0:00:07.280
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

0:00:07.760 --> 0:00:11.280
<v Speaker 2>Let's dive a little bit deeper into the Nvidia earnings.

0:00:11.400 --> 0:00:15.400
<v Speaker 2>Who do you want to dive deeper in than better person?

0:00:15.480 --> 0:00:16.400
<v Speaker 1>Right now? That's our guy.

0:00:16.560 --> 0:00:18.680
<v Speaker 2>I mean, he's getting geared up for Penn State, Nevada

0:00:18.760 --> 0:00:21.640
<v Speaker 2>this weekend, but he's probably focusing a little bit here

0:00:21.680 --> 0:00:25.840
<v Speaker 2>on Nvidio. Hey, Dan, I thought these numbers were darn good.

0:00:26.000 --> 0:00:27.920
<v Speaker 2>But I know there's the law of large numbers. I

0:00:27.960 --> 0:00:31.520
<v Speaker 2>know there's a whole thing about expectations. Give us your

0:00:31.560 --> 0:00:35.080
<v Speaker 2>take on these Nvidia numbers, Dan, I.

0:00:35.080 --> 0:00:37.960
<v Speaker 1>Thought they were robots, and I think the sum extent

0:00:38.000 --> 0:00:42.640
<v Speaker 1>when you factored China and they actually beat expectation, especially

0:00:42.640 --> 0:00:45.000
<v Speaker 1>when you look at the outlook. I think this stock

0:00:45.040 --> 0:00:48.839
<v Speaker 1>cuts up today and I think in further validates Well,

0:00:48.840 --> 0:00:50.879
<v Speaker 1>we've obviously been talking a lot, you know, with you

0:00:50.920 --> 0:00:54.280
<v Speaker 1>and the team about about the AI story now playing

0:00:54.320 --> 0:00:58.800
<v Speaker 1>out into the next stiege of growth. This is bullish

0:00:58.840 --> 0:01:00.000
<v Speaker 1>in my opinion.

0:01:00.840 --> 0:01:03.640
<v Speaker 3>Dan, What was your takeaway here as it relates to

0:01:04.360 --> 0:01:06.280
<v Speaker 3>a lot of the spending here, Capax.

0:01:08.360 --> 0:01:10.640
<v Speaker 1>I think it just sures there's one ship in the world.

0:01:10.720 --> 0:01:13.919
<v Speaker 1>Few in the AI revolutions led by Godfather of Ai Jensen,

0:01:13.959 --> 0:01:17.720
<v Speaker 1>thea viding and newquit's happened on Capax. It's just continuing

0:01:17.720 --> 0:01:21.240
<v Speaker 1>to accelerate. And then you factor in China that could

0:01:21.240 --> 0:01:24.479
<v Speaker 1>be fifty billions, I mean, and talking about the fifty

0:01:24.480 --> 0:01:28.639
<v Speaker 1>percent growth. I look, I think this is just now.

0:01:29.360 --> 0:01:32.880
<v Speaker 1>It's showing the next fees of the AAR revolutions now

0:01:33.000 --> 0:01:35.679
<v Speaker 1>starting to play out, especially when you combine it with

0:01:36.040 --> 0:01:40.199
<v Speaker 1>hyper scalurs and everything we've seen from Pallentier now Snowflake,

0:01:40.280 --> 0:01:43.160
<v Speaker 1>Manga deb the use cases are expanded.

0:01:44.319 --> 0:01:48.200
<v Speaker 2>Dan flush out for us the whole China situation. Where

0:01:48.320 --> 0:01:51.520
<v Speaker 2>is Nvidia today Visa VI China And how do you

0:01:51.520 --> 0:01:53.160
<v Speaker 2>think this is going to play out over the coming

0:01:53.280 --> 0:01:54.760
<v Speaker 2>quarters with their age twenty.

0:01:54.560 --> 0:02:00.440
<v Speaker 1>Ship Yeah, Paul, Look they're cognmental between us and but

0:02:00.520 --> 0:02:04.160
<v Speaker 1>the reality is Jensen's ten percent politician, ninety percent CEO,

0:02:04.840 --> 0:02:07.440
<v Speaker 1>and Trump administration to know, is big as chip on

0:02:07.480 --> 0:02:10.320
<v Speaker 1>the poker table is in the video. So as this

0:02:10.400 --> 0:02:13.120
<v Speaker 1>all plays out there, it's a pay for play model.

0:02:13.200 --> 0:02:16.040
<v Speaker 1>They're going to have access to China, even if it's restricted,

0:02:16.480 --> 0:02:19.040
<v Speaker 1>and that's going to add and incremental what two five

0:02:19.320 --> 0:02:24.000
<v Speaker 1>six billion per quarter? And you know, even though Beijing's

0:02:24.000 --> 0:02:26.880
<v Speaker 1>saying telling you know, maybe these companies you don't want

0:02:26.919 --> 0:02:29.520
<v Speaker 1>to buy video chips. That's like telling a kid not

0:02:29.639 --> 0:02:35.040
<v Speaker 1>eat candid. Big tech in China wants in video chips.

0:02:35.960 --> 0:02:38.160
<v Speaker 3>So I mean, as we dig in here into the

0:02:38.240 --> 0:02:40.880
<v Speaker 3>data what we saw from the earnings report, what is

0:02:40.919 --> 0:02:43.600
<v Speaker 3>your takeaway in terms of what they were able to

0:02:43.639 --> 0:02:46.960
<v Speaker 3>see specifically in terms of data center AI demand. That's

0:02:46.960 --> 0:02:49.160
<v Speaker 3>definitely something that's been in focus here with this report.

0:02:50.760 --> 0:02:53.119
<v Speaker 1>Yeah, look, I think it's noise in terms of any

0:02:53.160 --> 0:02:56.519
<v Speaker 1>other quote unquote like miss because when you factored China,

0:02:56.639 --> 0:03:00.320
<v Speaker 1>it's basically over a billion and a half feet. They're

0:03:00.520 --> 0:03:05.119
<v Speaker 1>seeing demand acceleration. I mean, no region is not showing acceleration.

0:03:05.840 --> 0:03:07.840
<v Speaker 1>And now you're starting to factor what's going to happen

0:03:07.880 --> 0:03:10.480
<v Speaker 1>in Middle East, what's going to happen in China, It's

0:03:10.480 --> 0:03:13.440
<v Speaker 1>gonna to rest of the world, and you're really talking

0:03:13.480 --> 0:03:16.280
<v Speaker 1>about one chip that's fueling it. So when I look

0:03:16.320 --> 0:03:18.320
<v Speaker 1>in a video, I think there's a five trillion dollar

0:03:18.440 --> 0:03:21.280
<v Speaker 1>mark cap potent by a year under early twenty six,

0:03:21.680 --> 0:03:25.520
<v Speaker 1>and it's just further validation for the AI revolution basis.

0:03:27.200 --> 0:03:29.600
<v Speaker 2>So talk to us DAN about their customer base and

0:03:29.639 --> 0:03:31.959
<v Speaker 2>the concentration of the customers, and I know they want

0:03:31.960 --> 0:03:34.840
<v Speaker 2>to broaden out their customer base, maybe the sovereigns into

0:03:34.880 --> 0:03:38.600
<v Speaker 2>other net buyers out there. How do you think that's

0:03:38.640 --> 0:03:39.200
<v Speaker 2>going to evolve.

0:03:40.960 --> 0:03:43.600
<v Speaker 1>Big Tech's going to continue dom as a quote unquote

0:03:43.640 --> 0:03:47.200
<v Speaker 1>customer base in terms of the concentration. But now as

0:03:47.320 --> 0:03:50.600
<v Speaker 1>sovereigns play out, as enterprises play out, you're going to

0:03:50.640 --> 0:03:54.280
<v Speaker 1>see more and more people, you know, obviously start to

0:03:54.480 --> 0:03:59.120
<v Speaker 1>understand that this revolution is not just big Tech. It's

0:03:59.160 --> 0:04:01.680
<v Speaker 1>about other sort of regions starting to play. And there's

0:04:01.720 --> 0:04:04.160
<v Speaker 1>only one ship in the world fuel in it, and

0:04:04.240 --> 0:04:04.920
<v Speaker 1>that's in video.

0:04:06.400 --> 0:04:09.080
<v Speaker 3>So taking a step back here in video wrapped up

0:04:09.280 --> 0:04:11.840
<v Speaker 3>all of the mag seven earnings here. What were your

0:04:11.880 --> 0:04:14.880
<v Speaker 3>thoughts more broadly overall this earning season.

0:04:16.920 --> 0:04:19.960
<v Speaker 1>I mean, I think this is the bullish tech earning season.

0:04:19.960 --> 0:04:23.360
<v Speaker 1>We've talked about it, the validation of the AI revolution,

0:04:23.560 --> 0:04:27.840
<v Speaker 1>his next stage of growth. It's spreading, second, third, fourth derivatives.

0:04:28.000 --> 0:04:31.360
<v Speaker 1>Now Grant look in video is a Scottie chauffeur of tech. Okay,

0:04:31.400 --> 0:04:33.800
<v Speaker 1>but what you're just starting to see now play out

0:04:33.920 --> 0:04:39.000
<v Speaker 1>is those derivatives, the spending, the multiplier, it's all happening

0:04:39.279 --> 0:04:42.280
<v Speaker 1>and I think that's just bullish going into year end

0:04:42.320 --> 0:04:44.919
<v Speaker 1>in terms of tech stocks, and I think this bull

0:04:45.000 --> 0:04:48.560
<v Speaker 1>market has two to three year run still left.

0:04:49.680 --> 0:04:52.800
<v Speaker 2>Dan, So as you talk to institutional investors, how are

0:04:52.800 --> 0:04:57.840
<v Speaker 2>they viewing this fifteen percent? I don't know government fee

0:04:57.920 --> 0:05:00.040
<v Speaker 2>that the US government may impose on some of the

0:05:00.120 --> 0:05:04.200
<v Speaker 2>chip sales the China. How's that being viewed by investors?

0:05:04.760 --> 0:05:09.720
<v Speaker 1>Look, it's obviously it's unusual. It's a pay for play model,

0:05:09.839 --> 0:05:12.160
<v Speaker 1>but guess what, investors, it's new rules of the road,

0:05:12.279 --> 0:05:15.680
<v Speaker 1>right Big tech starting to understand how that works. But

0:05:15.800 --> 0:05:20.080
<v Speaker 1>when it comes in video, Okay, pay fifteen percent, that's breadcrumbs.

0:05:20.120 --> 0:05:23.280
<v Speaker 1>You can raise prices fifteen percent. You need access to China.

0:05:23.640 --> 0:05:26.760
<v Speaker 1>You can't give Huawei on a silver platter that market.

0:05:27.120 --> 0:05:29.520
<v Speaker 1>So as it continues to play out, I think investors

0:05:29.560 --> 0:05:32.960
<v Speaker 1>have accepted they want a video open access to China

0:05:33.000 --> 0:05:36.560
<v Speaker 1>because that continues to be the golden goose that Jensen's

0:05:36.600 --> 0:05:37.159
<v Speaker 1>going after.

0:05:38.920 --> 0:05:40.960
<v Speaker 3>Dan, I want to quickly go right back to what

0:05:40.960 --> 0:05:43.719
<v Speaker 3>we were talking about here when it relates to data centers.

0:05:43.760 --> 0:05:46.839
<v Speaker 3>How concentrated is in video's revenue right now? Or like

0:05:46.880 --> 0:05:49.600
<v Speaker 3>you know, the top five hyper scalers still the overwhelming

0:05:49.640 --> 0:05:51.159
<v Speaker 3>majority of data center sales.

0:05:52.440 --> 0:05:55.480
<v Speaker 1>You know, it's concentrated, but that's just the nature right

0:05:55.520 --> 0:05:59.040
<v Speaker 1>now big text three hundred, what fifty during sixty billion,

0:05:59.520 --> 0:06:03.000
<v Speaker 1>But it's going to spread sovereigns, enterprises the rest of

0:06:03.040 --> 0:06:05.159
<v Speaker 1>the world. And Vidia is going to continue to own

0:06:05.200 --> 0:06:08.360
<v Speaker 1>that so contry today when you look out three four,

0:06:08.480 --> 0:06:12.240
<v Speaker 1>five years ago, that concentration will continue, I think to

0:06:12.320 --> 0:06:17.840
<v Speaker 1>diminish as more players get into AI. But there's one

0:06:17.960 --> 0:06:20.680
<v Speaker 1>chip fueling and it's a video damn.

0:06:21.200 --> 0:06:23.720
<v Speaker 2>How do you think about the competitive environment for in

0:06:23.800 --> 0:06:27.159
<v Speaker 2>Nvidia here? Is it am D, is it Huawei? Is

0:06:27.200 --> 0:06:29.080
<v Speaker 2>it others? We don't know about at the moment.

0:06:29.839 --> 0:06:33.599
<v Speaker 1>Yeah, but glease is to an AMD clearly competition. I

0:06:33.600 --> 0:06:35.520
<v Speaker 1>think that it would continue to be bullish and that

0:06:36.040 --> 0:06:38.360
<v Speaker 1>in terms of getting more and more pieces of pie.

0:06:39.440 --> 0:06:42.200
<v Speaker 1>Huawei is a competitor. But that's the whole reason that

0:06:42.240 --> 0:06:44.279
<v Speaker 1>you don't want to just give them full access to

0:06:44.360 --> 0:06:47.040
<v Speaker 1>China because that will help them narrow the gap for

0:06:47.240 --> 0:06:50.440
<v Speaker 1>bullets obviously on broad common others. And I think look

0:06:50.600 --> 0:06:53.279
<v Speaker 1>as this plays out, in Vidia is years ahead of

0:06:53.320 --> 0:06:56.080
<v Speaker 1>any other competition. And even when you hear talk about

0:06:56.200 --> 0:06:59.039
<v Speaker 1>you know, US government and obviously, you know Soft Bank

0:06:59.120 --> 0:07:03.400
<v Speaker 1>investing and Intel, I mean Intel is you know, so

0:07:03.560 --> 0:07:07.359
<v Speaker 1>many years behind. You know, they continue to really have

0:07:07.560 --> 0:07:09.679
<v Speaker 1>just a massive out pill battle and that's why video

0:07:09.720 --> 0:07:10.560
<v Speaker 1>is top of the mountain.

0:07:11.240 --> 0:07:13.400
<v Speaker 2>All right, Dan, your Penn State Nitley Ions opened the

0:07:13.440 --> 0:07:17.640
<v Speaker 2>season Saturday, three point thirty pm on the CBS Television network,

0:07:17.640 --> 0:07:21.680
<v Speaker 2>compariment plus against Nevada forty three and a half point favorites.

0:07:21.680 --> 0:07:23.320
<v Speaker 2>How do you feel about your Nitley Lions this year?

0:07:24.000 --> 0:07:26.880
<v Speaker 1>I mean work, I was at practice last week State College.

0:07:27.000 --> 0:07:28.840
<v Speaker 1>I told you I think this is the year. I

0:07:28.880 --> 0:07:31.440
<v Speaker 1>think we win the nanty. We have some tough games

0:07:31.440 --> 0:07:34.880
<v Speaker 1>in Oregon, Ohio State, but I think Big ten continues

0:07:34.920 --> 0:07:37.600
<v Speaker 1>to hold the mantle. I like al our Singleton and

0:07:37.640 --> 0:07:39.560
<v Speaker 1>Penn ste I think I think we'll be holding the

0:07:39.600 --> 0:07:41.000
<v Speaker 1>trophy in January.

0:07:41.240 --> 0:07:44.679
<v Speaker 2>I like the call naese and clear and confident. Dan Ives,

0:07:44.840 --> 0:07:47.800
<v Speaker 2>Globalhead of Technology a Webush Securities appreciate getting a few

0:07:47.800 --> 0:07:51.160
<v Speaker 2>minutes of Dan's time here today on Nvidia and big

0:07:51.200 --> 0:07:51.400
<v Speaker 2>Tech