Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: Let's dive a little bit deeper into the Nvidia earnings.
Speaker 2: Who do you want to dive deeper in than better person?
Speaker 1: Right now? That's our guy.
Speaker 2: I mean, he's getting geared up for Penn State, Nevada
Speaker 2: this weekend, but he's probably focusing a little bit here
Speaker 2: on Nvidio. Hey, Dan, I thought these numbers were darn good.
Speaker 2: But I know there's the law of large numbers. I
Speaker 2: know there's a whole thing about expectations. Give us your
Speaker 2: take on these Nvidia numbers, Dan, I.
Speaker 1: Thought they were robots, and I think the sum extent
Speaker 1: when you factored China and they actually beat expectation, especially
Speaker 1: when you look at the outlook. I think this stock
Speaker 1: cuts up today and I think in further validates Well,
Speaker 1: we've obviously been talking a lot, you know, with you
Speaker 1: and the team about about the AI story now playing
Speaker 1: out into the next stiege of growth. This is bullish
Speaker 1: in my opinion.
Speaker 3: Dan, What was your takeaway here as it relates to
Speaker 3: a lot of the spending here, Capax.
Speaker 1: I think it just sures there's one ship in the world.
Speaker 1: Few in the AI revolutions led by Godfather of Ai Jensen,
Speaker 1: thea viding and newquit's happened on Capax. It's just continuing
Speaker 1: to accelerate. And then you factor in China that could
Speaker 1: be fifty billions, I mean, and talking about the fifty
Speaker 1: percent growth. I look, I think this is just now.
Speaker 1: It's showing the next fees of the AAR revolutions now
Speaker 1: starting to play out, especially when you combine it with
Speaker 1: hyper scalurs and everything we've seen from Pallentier now Snowflake,
Speaker 1: Manga deb the use cases are expanded.
Speaker 2: Dan flush out for us the whole China situation. Where
Speaker 2: is Nvidia today Visa VI China And how do you
Speaker 2: think this is going to play out over the coming
Speaker 2: quarters with their age twenty.
Speaker 1: Ship Yeah, Paul, Look they're cognmental between us and but
Speaker 1: the reality is Jensen's ten percent politician, ninety percent CEO,
Speaker 1: and Trump administration to know, is big as chip on
Speaker 1: the poker table is in the video. So as this
Speaker 1: all plays out there, it's a pay for play model.
Speaker 1: They're going to have access to China, even if it's restricted,
Speaker 1: and that's going to add and incremental what two five
Speaker 1: six billion per quarter? And you know, even though Beijing's
Speaker 1: saying telling you know, maybe these companies you don't want
Speaker 1: to buy video chips. That's like telling a kid not
Speaker 1: eat candid. Big tech in China wants in video chips.
Speaker 3: So I mean, as we dig in here into the
Speaker 3: data what we saw from the earnings report, what is
Speaker 3: your takeaway in terms of what they were able to
Speaker 3: see specifically in terms of data center AI demand. That's
Speaker 3: definitely something that's been in focus here with this report.
Speaker 1: Yeah, look, I think it's noise in terms of any
Speaker 1: other quote unquote like miss because when you factored China,
Speaker 1: it's basically over a billion and a half feet. They're
Speaker 1: seeing demand acceleration. I mean, no region is not showing acceleration.
Speaker 1: And now you're starting to factor what's going to happen
Speaker 1: in Middle East, what's going to happen in China, It's
Speaker 1: gonna to rest of the world, and you're really talking
Speaker 1: about one chip that's fueling it. So when I look
Speaker 1: in a video, I think there's a five trillion dollar
Speaker 1: mark cap potent by a year under early twenty six,
Speaker 1: and it's just further validation for the AI revolution basis.
Speaker 2: So talk to us DAN about their customer base and
Speaker 2: the concentration of the customers, and I know they want
Speaker 2: to broaden out their customer base, maybe the sovereigns into
Speaker 2: other net buyers out there. How do you think that's
Speaker 2: going to evolve.
Speaker 1: Big Tech's going to continue dom as a quote unquote
Speaker 1: customer base in terms of the concentration. But now as
Speaker 1: sovereigns play out, as enterprises play out, you're going to
Speaker 1: see more and more people, you know, obviously start to
Speaker 1: understand that this revolution is not just big Tech. It's
Speaker 1: about other sort of regions starting to play. And there's
Speaker 1: only one ship in the world fuel in it, and
Speaker 1: that's in video.
Speaker 3: So taking a step back here in video wrapped up
Speaker 3: all of the mag seven earnings here. What were your
Speaker 3: thoughts more broadly overall this earning season.
Speaker 1: I mean, I think this is the bullish tech earning season.
Speaker 1: We've talked about it, the validation of the AI revolution,
Speaker 1: his next stage of growth. It's spreading, second, third, fourth derivatives.
Speaker 1: Now Grant look in video is a Scottie chauffeur of tech. Okay,
Speaker 1: but what you're just starting to see now play out
Speaker 1: is those derivatives, the spending, the multiplier, it's all happening
Speaker 1: and I think that's just bullish going into year end
Speaker 1: in terms of tech stocks, and I think this bull
Speaker 1: market has two to three year run still left.
Speaker 2: Dan, So as you talk to institutional investors, how are
Speaker 2: they viewing this fifteen percent? I don't know government fee
Speaker 2: that the US government may impose on some of the
Speaker 2: chip sales the China. How's that being viewed by investors?
Speaker 1: Look, it's obviously it's unusual. It's a pay for play model,
Speaker 1: but guess what, investors, it's new rules of the road,
Speaker 1: right Big tech starting to understand how that works. But
Speaker 1: when it comes in video, Okay, pay fifteen percent, that's breadcrumbs.
Speaker 1: You can raise prices fifteen percent. You need access to China.
Speaker 1: You can't give Huawei on a silver platter that market.
Speaker 1: So as it continues to play out, I think investors
Speaker 1: have accepted they want a video open access to China
Speaker 1: because that continues to be the golden goose that Jensen's
Speaker 1: going after.
Speaker 3: Dan, I want to quickly go right back to what
Speaker 3: we were talking about here when it relates to data centers.
Speaker 3: How concentrated is in video's revenue right now? Or like
Speaker 3: you know, the top five hyper scalers still the overwhelming
Speaker 3: majority of data center sales.
Speaker 1: You know, it's concentrated, but that's just the nature right
Speaker 1: now big text three hundred, what fifty during sixty billion,
Speaker 1: But it's going to spread sovereigns, enterprises the rest of
Speaker 1: the world. And Vidia is going to continue to own
Speaker 1: that so contry today when you look out three four,
Speaker 1: five years ago, that concentration will continue, I think to
Speaker 1: diminish as more players get into AI. But there's one
Speaker 1: chip fueling and it's a video damn.
Speaker 2: How do you think about the competitive environment for in
Speaker 2: Nvidia here? Is it am D, is it Huawei? Is
Speaker 2: it others? We don't know about at the moment.
Speaker 1: Yeah, but glease is to an AMD clearly competition. I
Speaker 1: think that it would continue to be bullish and that
Speaker 1: in terms of getting more and more pieces of pie.
Speaker 1: Huawei is a competitor. But that's the whole reason that
Speaker 1: you don't want to just give them full access to
Speaker 1: China because that will help them narrow the gap for
Speaker 1: bullets obviously on broad common others. And I think look
Speaker 1: as this plays out, in Vidia is years ahead of
Speaker 1: any other competition. And even when you hear talk about
Speaker 1: you know, US government and obviously, you know Soft Bank
Speaker 1: investing and Intel, I mean Intel is you know, so
Speaker 1: many years behind. You know, they continue to really have
Speaker 1: just a massive out pill battle and that's why video
Speaker 1: is top of the mountain.
Speaker 2: All right, Dan, your Penn State Nitley Ions opened the
Speaker 2: season Saturday, three point thirty pm on the CBS Television network,
Speaker 2: compariment plus against Nevada forty three and a half point favorites.
Speaker 2: How do you feel about your Nitley Lions this year?
Speaker 1: I mean work, I was at practice last week State College.
Speaker 1: I told you I think this is the year. I
Speaker 1: think we win the nanty. We have some tough games
Speaker 1: in Oregon, Ohio State, but I think Big ten continues
Speaker 1: to hold the mantle. I like al our Singleton and
Speaker 1: Penn ste I think I think we'll be holding the
Speaker 1: trophy in January.
Speaker 2: I like the call naese and clear and confident. Dan Ives,
Speaker 2: Globalhead of Technology a Webush Securities appreciate getting a few
Speaker 2: minutes of Dan's time here today on Nvidia and big
Speaker 2: Tech