Speaker 1: Bloomberg Audio Studios, podcasts, radio News.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market harnessing the power of Bloomberg Data.
Speaker 1: Let's take a look now at some stocks making news
Speaker 1: in the week ahead. I'm Nathan Hager, joined by Bloomberg
Speaker 1: Intelligence Global Head of Tech Research Mandeep Singh, because we
Speaker 1: have some major tech earnings coming up this week, including
Speaker 1: the big one from Nvidia. Is Nvidia still the big
Speaker 1: one man deep when it comes to the AI trade
Speaker 1: and earnings?
Speaker 3: Absolutely. I mean, if there's you know, one company that
Speaker 3: really has carried through the mantle then it comes to
Speaker 3: this AI build out, it is in Nvidia, and it
Speaker 3: shows up in their numbers when you look at you know,
Speaker 3: growth expectations of close to mid ninety percent and actually
Speaker 3: their revenue seems to be accelerating. So it just goes
Speaker 3: to show that, you know, this company with over a
Speaker 3: three hundred and fifty billion dollar run rate now is
Speaker 3: really executing very well and it is at the front
Speaker 3: and center of this big AI infrastructure buildout.
Speaker 1: It's incredible the run that Invidia has had literally for
Speaker 1: years now, and just now this latest announcement of a
Speaker 1: one hundred and five billion dollar data center investment in
Speaker 1: Ohio for open Ai. It just speaks to so much
Speaker 1: of the outperformance that we've seen for in Nvidia for
Speaker 1: quite some time. And I guess the question still of
Speaker 1: you know, whether circular investment is still an issue for
Speaker 1: this company? Is it for you?
Speaker 3: Well, So the thing that has changed with Nvidia now
Speaker 3: versus a couple of years back is it's got a
Speaker 3: really strong balance sheet with a ton of cash to invest.
Speaker 3: And so what it is doing now is with these
Speaker 3: big data center deals, it is helping you know, the
Speaker 3: likes of open Ai and Tropic and other companies neoclouds
Speaker 3: finance this build out where if they want to set
Speaker 3: up a data center, Nvidia will be that backstop in
Speaker 3: terms of filling in some of the investment requirements and
Speaker 3: then helping these labs raise funding from private capital and
Speaker 3: other sources. But in Vidia is really flexing its balance
Speaker 3: sheet in terms of making sure there is a robust
Speaker 3: ecosystem around it and all of them are able to
Speaker 3: raise financing, because that's the hard thing now as these
Speaker 3: numbers get bigger and bigger, not every company will be
Speaker 3: able to raise financing. For one, hundred billion dollar data center.
Speaker 3: So that's where in Radia comes in and kind of
Speaker 3: helps and be that backstop. And Google is doing the
Speaker 3: same thing, by the way, so all these major players
Speaker 3: who are training the models are kind of using their
Speaker 3: balance sheet in an effective way to prop up the
Speaker 3: ecosystem around that.
Speaker 1: Okay, so we're definitely looking forward to those earnings results
Speaker 1: from Nvidia on Wednesday. We're also going to hear from CrowdStrike,
Speaker 1: the cybersecurity firm. A lot of debate about this company's
Speaker 1: valuation heading into the print. How do you see it?
Speaker 3: I would agree that they have been a beneficiary of,
Speaker 3: you know, the entropic Mythos release and all the kind
Speaker 3: of anxiety around every company being at risk of a
Speaker 3: cyber attack because Mythos exposed all the vulnerabilities. But to
Speaker 3: my mind, CrowdStrike hasn't really shown that in their numbers.
Speaker 3: They're still growing top line at mid twenty percent, which
Speaker 3: is healthy, but nothing like what you know, we talked
Speaker 3: about in Vidia growing at mid ninety percent, and you
Speaker 3: know some of the other companies in the chip space
Speaker 3: are growing triple digits. So mid twenty percent growth for
Speaker 3: a company of CrowdStrike size doesn't seem that impressive, and
Speaker 3: it's already trading at a very premium valuation multiple, So
Speaker 3: from that perspective, the expectations are higher. But maybe they
Speaker 3: come out and talk about, you know how all the
Speaker 3: enterprises have started increasing their cybersecurity spend POSTMETHOS, and that
Speaker 3: will be a good narrative. I think that may help
Speaker 3: the stock sentiment.
Speaker 1: And before we hear from crowdstriking Nvidia on Tuesday, we're
Speaker 1: going to get earnings from Marvel Technologies off the back
Speaker 1: of their announcement of a twelve point two billion dollar
Speaker 1: share purchase deal with Google. What's that say about where
Speaker 1: Marvel is in the chip raise?
Speaker 3: I mean, all these chip companies I think have really
Speaker 3: benefited in a big way from you know, the capex
Speaker 3: increases that we keep hearing about, and Marvel is exposed
Speaker 3: to all the custom silicon development and now they are
Speaker 3: partnering with Google. Earlier they were predominantly working with Amazon.
Speaker 3: So the fact that Google is working with Broadcom and
Speaker 3: now they are working with Marvel to expand their TPU
Speaker 3: kind of unit shipments suggests to me that, you know, Marvel,
Speaker 3: we'll see accelerating top line as well. And they have
Speaker 3: more customers now than they had previously, and Google is
Speaker 3: obviously a big customer. I was a little surprised with
Speaker 3: the stock warrant aspect of this deal, like why they
Speaker 3: had to give that, But we've seen that kind of
Speaker 3: you know deal with between AMD and Meta and MD
Speaker 3: and open Ai, so it's not that unusual these days
Speaker 3: to you know, give warrants if you have a big
Speaker 3: customer lined.
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