00:00Isn't it just mind-boggling to think that this company could nearly double in market cap over the next 12 months, given that it's the biggest company in the world?
00:11Yeah, look, I think the numbers certainly seems, you know, from a market cap, seems it's quite unbelievable.
00:17But what they're doing in terms of their ability to deliver on revenue and earnings potential, it just continues to surpass expectations.
00:24So I think one of the reasons, you know, we've turned more bullish is based on what we're seeing for next year.
00:29I think the whole narrative is starting to come through.
00:31You know, I think the last couple of years, it's really been tied to hyperscaler capex spending.
00:36But as we start to see this year, we're starting to see more signs that the TAM opportunity is really increasing beyond just the four or five hyperscalers that we've seen over the last couple of years.
00:45Don't they, because of the boom in AI over the past, let's say, three years, and NVIDIA has been kind of the only player in town in terms of training models,
00:56don't they see increased competition fast from Broadcom, from AMD, and from the Chinese?
01:05Yeah, I mean, I think, you know, earlier in the year, especially in the first half of the year, there's a lot of debate about, you know, within the hyperscalers,
01:11the ASIC opportunity was booming.
01:13Broadcom, which is a stock that we like tremendously as well, you know, we continue to see they gain strength to strength.
01:19But I think what has changed is really, you know, the narrative is that the opportunity is not just hyperscalers.
01:27You know, we've seen a lot of strength with NeoCloud.
01:28We've seen Sovereign.
01:30I mean, this is something that Jensen has been talking about since the beginning of the year, but it is starting to happen.
01:35You know, we see, you know, Stargate is a good example of Sovereign AI really starting to take off.
01:39And I think, you know, what we also see is NVIDIA is also getting more bullish about their forecast to TSMC going into next year.
01:46And, you know, we haven't really seen this momentum accelerate for almost a year.
01:51But as we go into next year, that number looks like it's starting to get stronger again.
01:54A huge part of the TAM of the total addressable market, Frank, is China.
01:59To believe in $320 a share, do you have to imagine that we have some kind of positive outcome to this trade war?
02:11I think certainly from a sentiment point of view, it will make a difference.
02:14And even regarding that, you know, we do believe there could be some opportunity to see some improvement.
02:20You know, we went into August cautioning investors that China would not be as easy just because NVIDIA is being allowed to get into the China market.
02:29And that's proven to be, I think, correct that the Chinese are not really moving to NVIDIA as quickly as expected.
02:36But we do think, you know, once the trade deal gets done, that will start to improve.
02:40And NVIDIA, we expect, we'll have another chip that will be geared for the China market.
02:45But realistically, though, we don't need China to really be a big part of the story.
02:49I think if you look at, you know, the recent OpenAI deals, just looking at the gigawatt that's been committed,
02:56that potential market size can almost double the NVIDIA data center revenues of $300 billion from next year.
03:03So, of course, the timeline for that is going to be, it's going to take some time.
03:07But it does show you that the TAM potential is there.
03:10The gigawatts is still something I'm trying to figure out in my head, right?
03:15I think Manhattan, to power Manhattan, you need, what, seven or eight gigawatts of power.
03:20However, you point out from OpenAI and Stargate alone, they have almost 20 gigawatts of exposure here.
03:28What kind of total do you expect in terms of gigawatts of power needed to hit, you know, $8 trillion NVIDIA next year?
03:39Look, I don't think we expect that it'll be overnight.
03:41But we do think that one of the challenges and the focus for the market will probably be sometime around mid-next year,
03:49we're going to start to look at the power part of the story much more closely.
03:53Stargate project really starts to kick off in the second half of next year, but it's not of scale yet until 27.
04:00So I think we have about another year before the power issue really becomes a crucial bottleneck.
04:05So I think we'll have to continue to see over the next year how the power infrastructure builds out.
04:10But if you believe, you know, whatever OpenAI has committed right now, then the market potential truly is quite big.
04:19And it could potentially double NVIDIA's revenues over the next few years.
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