00:00Australia and Canada. The move comes amid a growing move to restrict access to children.
00:07U.S. stocks dipped on Thursday even after NVIDIA posted another blockbuster quarter.
00:14The chipmaker reported fourth quarter revenue of more than $68 billion, which was up 73% from a year ago,
00:21as demand for AI computing power keeps surging.
00:26Let's talk now to Dan Ives, Managing Director and Senior Equity Research Analyst at Wedbush Securities.
00:33So, Dan, good to see you back on the program. Some strong earnings and a solid growth forecast from NVIDIA,
00:38but Wall Street isn't particularly happy. What's going on?
00:42I think the stock should be up 3% to 4%. I mean, look, this is a stunner in terms
00:48of a gold medal performance by NVIDIA.
00:50I mean, you're talking about beating the street by 500 to 700 bps, and they're guiding to almost 80%
00:57growth next quarter.
00:58It speaks to my view. We are right now in what I'll call an AI ghost trade, where you're fighting
01:04the ghost.
01:05Stock's obviously going through a lot of negatives in terms of the worries out there.
01:09The AI bubble, you could throw those out the window. You look at these NVIDIA earnings.
01:14I continue to believe early days in this AI revolution.
01:17Are we in a bit of a place with NVIDIA, though, where it's a victim of its own success, if
01:22you like?
01:22Its shares gained so much in the past that growth was already priced in.
01:27Look, I think part of it, no doubt. I mean, you do become a victim of your own success.
01:33Once Jensen puts the black leather jacket on and gets in front of that microphone, investors expect stardom.
01:39But if you look at the numbers, just take away what's happening in the stock.
01:44The ripple effect for tech, the CapEx dollars, for every dollar spent on a video chip, is the $8, $10
01:51multiply across the rest of tech.
01:53That's bullish for the overall tech trade, for semis across Asia and China.
01:59And I think that's really also the broader thesis that's playing out here.
02:03So you've just said you don't think this is an AI bubble.
02:06We are seeing increasing take-up of AI technology, aren't we?
02:10And it seems to be increasing all the time.
02:12Do you think it's just going to carry on then, or are we facing a potential crash in the future?
02:17This is year three of an eight- to ten-year build-out in terms of this fourth industrial revolution.
02:23And look, the haters hate, right?
02:25I mean, they've missed every trade.
02:26The bears have missed every transformational growth stock the last 20 years, focused on valuation or some other sort of
02:32dystopian event.
02:33It comes down to our view.
02:35NVIDIA is a $6 trillion mark cap, 2027.
02:38And a lot of the bears, they can see AI in the spreadsheets when they're in hibernation mood.
02:44So what about competitors then?
02:46NVIDIA has been at the forefront for a long time, a world's most valuable company.
02:50They do have competition, though, some of it from China.
02:53Do you think it can stave that off?
02:56Look, right now, the biggest, I'd say the biggest hurdle for NVIDIA, and probably the best thing that's happened to
03:03Huawei,
03:04is NVIDIA not being able to sell the H200s into China.
03:07Because that just gives more power domestically to Huawei and the Chinese economy.
03:11And that's why NVIDIA...
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