00:00Mandeep, of those names, Microsoft, Alphabet, Meta, Apple, Amazon, what's the number one focus for you?
00:08I mean, it has to be the cloud growth for Microsoft, Google, and Amazon.
00:12And look, it's no different from the last time around, but what changed with the print last quarter was Microsoft got close to 40% in Azure growth.
00:22It will be interesting to see if they actually surpass that higher bogey.
00:26And to my mind, you know, that's the justification for increasing CapEx because the expectations for 2026 are still somewhat lower than what we saw this year, which was almost, you know, close to 60% growth.
00:40Next year, it's more low teens or low to mid teens.
00:43And so to my mind, all these companies will raise their CapEx and that will be dictated by whether they beat on that cloud number or not.
00:50Mandeep, as you know, all these names get thrown into the same bucket.
00:54I'll throw another name out there, Meta.
00:56Is the market more comfortable with the spending of some companies at the moment versus others?
01:00You mentioned Microsoft.
01:01I just wonder who the market is less comfortable with at the moment.
01:05I think I would put Meta in that bucket because they don't have a cloud business.
01:10And look, they will see benefit from AI in their ad pricing, the recommendation systems.
01:16But in the end, you know, if you're not showing a separate, you know, AI number right now in your print, then the market will question what is AI versus what is non-AI.
01:26And in the case of Meta, if they are looking to raise their CapEx close to 100 billion, which is what our number is for all these hyperscalers, Microsoft, Google, Amazon, then you have to ask yourself what is the ROI.
01:40And that ROI question, I think, is extremely relevant for someone like Meta if they are going to raise their CapEx.
01:46Mandeep, you're in Hong Kong.
01:47One thing we've highlighted over the last few weeks is just how different the approach seems to be in Asia, efficiency.
01:54In America, it feels like they're rushing to spend because they're confronting an existential crisis.
01:58Mandeep, do you pick up the same tone, the same theme whilst you're over there?
02:02I do, and everyone is asking me about, you know, what kind of optimizations the cloud providers plan to do.
02:12How will that trickle down in terms of their appetite for NVIDIA GPUs in 2026?
02:17And really, when you come to, you know, this part of the region, DeepSeq and the Chinese models, they have an open source approach.
02:25So that is a big focus in terms of what the frontier LLMs plan to do in the U.S. and elsewhere, whether they want to embrace open source or not.
02:35And that, I think, is an open question at this point of time.
Be the first to comment