AI Could Lead to US 'Innovation Renaissance,' Says Ives

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Watch AI Could Lead to US 'Innovation Renaissance,' Says Ives - Bloomberg on Dailymotion

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00:00There are opportunities. What have you been maybe buying in this, you know, recent pullback?

00:09You own Tesla. You own the hyperscale. Look at Oracle, the sell-off here. Look at Meta.

00:14I mean, these are golden buying opportunities for the next two, three, four years.

00:18And that's my view where we are in the AI revolution, that you use these as opportunities, not head for the elevators.

00:24So I guess the question that I have, Dan, if this is a buying opportunity, what happens if there's another 10% pullback?

00:35It's my view. We're going to be talking about NASDAQ 25,000. NASDAQ 30,000 next two, three years.

00:43So these are, it's my view, as we continue to play out, streets underestimating numbers by 20% or 30% next few years.

00:50That's why these are opportunities to own the AI owners on these pullbacks.

00:58Okay. So let's look ahead to NVIDIA next week. Dan, you know that they're going to be reporting earnings on Wednesday.

01:04It's the king of AI bellwethers, no doubt about it.

01:06What do you think, though, we will see? What should we see to give you, you know,

01:11the confidence that you're talking about right here with us on this Thursday?

01:14I think demand 20% higher than the streets expecting in the next 12 to 18 months.

01:21And that's even without China.

01:24And I think when you hear from Jensen, combined with the hyperscaler, combined with what we see with Palantir,

01:30this is a CapEx super cycle playing out. That continues to be the thesis.

01:34So you think any, so the pullback that we're seeing, you think it's investors being kind of silly,

01:43that like when we see NVIDIA, it's close to, I think, about a 10% pullback since late October.

01:49That nervousness, normal, wrong? You just think it's wrong that investors have it wrong?

01:54No, I think it's normal.

01:57Okay.

01:57Like, it's normal. When people call them bubble, valuation, circular financing, right?

02:02I mean, it's normal. We've had a massive run. It's normal, but it's healthy.

02:07But it's my view, this is not the end. This is second inning of a nine-inning game.

02:14That's where I think this plays out.

02:16So fast forward a few years for us. Fast forward to the end and what that view looks like.

02:20And this is something I've been asking everyone, Dan, because we're not just interested in the micro

02:23with these individual companies, but we're interested in the economic effects of this

02:28investment and the promise of this technology. If everything goes according to plan, what does it

02:34look like if these investments are successful? What does that look like to everyday life? What

02:38does that look like to employment in the U.S. and around the world? What are the effects

02:42of this tech on society?

02:45Look, you and Carol, I think you'll be in a robo-taxi. I think the humanoid robots are going

02:50to be something that over the next four or five years are going to become a reality.

02:55And I think it's going to be a massive innovation renaissance in the United States.

03:01For the first time in 30 years, the U.S. is ahead of China.

03:04And that's massive in terms of as this all plays out. Will there be job losses? Yeah.

03:10But I think net, net, it's jobs created. Innovation, AI centers, manufacturing.

03:16There's more data centers under construction, say, than active data centers. So that's my view why

03:22this is a fourth industrial revolution. And we continue viewing. Days like today, they don't feel

03:27good, but they create the opportunities.

03:30You know, you talk about the AI build-out. We are, you know, increasingly doing stories about

03:35a data center built, but they don't have the power to power it. It's funny, but not funny.

03:40So, and I do think about, you know, also the political impact of Americans, myself included,

03:47paying super high electricity prices right now. And, you know, the pushback where we had a guest,

03:53was it yesterday, that was talking about, you're going to have a point where Americans are saying,

03:58nope, you can't build this data center here. Like, we need lower electricity.

04:02Yeah, Conor Sen in Bloomberg opinion.

04:03Conor Sen, thank you. So, like, I just do wonder, Dan, like, it's going to have some challenges.

04:08Already had it. Nuclear, nuclear, nuclear.

04:11Yeah, but that's not going to happen overnight. You know that.

04:14And to be fair, Conor was joining us from Atlanta, and that's where the,

04:19Georgia is the state that has the most recent new U.S. nuclear reactor, the Vogel-2 plant,

04:24the first one that has been built in, you know, in 10 years, basically. And that was open just a

04:29couple of years ago. And still, he and his neighbors, they're seeing electricity costs soar.

04:34It is. Look, and that's something where, like, that is the reason right now, from a power situate.

04:41The only thing stopping the AI revolution is power. 3% of companies have gone down the AI revolution.

04:47When you get to 20%, power starts to be a massive shortage. But I believe nuclear fusion,

04:55enhancements on the grid, solar, going to be an all-in sort of hands-on deck that you're seeing in the U.S.

05:03some power. AquaOps would be one of our favorite names and others. But that's my view, where you're

05:10going to see really a massive surge of focus on investment in technology to enhance power in the

05:16United States.

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