00:00The NVIDIA story, generally speaking, has been about an unstoppable company, now the world's most valuable company, that is growing
00:09its revenues at about 75 to 80 percent, is highly profitable, has unprecedented margins in an industry where the economics
00:18are really brutal.
00:19And in artificial intelligence, the commonality between NVIDIA and all of the companies that buy its chips, either to train
00:29AI models or to run them, is that the demand for that is outpacing NVIDIA's ability to supply it.
00:37And that's always a pretty healthy position to be in. But as you alluded to, the kind of unknown is
00:43China.
00:44And the state of play for NVIDIA is NVIDIA has a base case assumption until this point where there is
00:50no revenues coming from China.
00:53And so you guys tell me, what was the conclusion of being able to get a lot of money?
00:57We've been talking about it all morning, Ed. It's still a little murky. We don't know.
01:02Yeah. And so the sell-off on Friday, that's the whole point.
01:05I mean, you know, it turns out you can get a last-minute seat on Air Force One.
01:09Yes. Seats are available. Get the jump seat.
01:12But it doesn't guarantee you the outcome that you wanted going there.
01:17But, I mean, NVIDIA wasn't the only one to see a dip on Friday.
01:20You also saw Micron, Intel, a bunch of these tech stocks losing more than 5 percent.
01:25Is this because those valuations are not realistic and the rubber is starting to meet the road there?
01:32Is this signs of a bubble or is this just signs of the inputs and the factors you were just
01:36talking about?
01:37Yeah.
01:39Probably a little bit just giving back after many, many weeks of what a lot of people in the markets
01:45were calling a melt-up.
01:47Right. And so you always have to think about relative performance.
01:51I love to stare at squiggly lines on charts.
01:53I know that, like, you guys probably saved the Bloomberg This Weekend audience from that, and I commend you for
01:59it.
01:59But sometimes you just sort of look at the squiggly line.
02:00We're an audio-first product, so they generally discourage us from using too many squiggly lines because then we have
02:05to describe what people are seeing.
02:07I completely get it.
02:08So the squiggly line on Friday, as you quite rightly point out, was pretty sharply downward.
02:13But if you extrapolate out and look at NVIDIA in particular since the end of March, it's just been on
02:19an astonishing run.
02:21I think it was up sort of 47 percent through Thursday's close.
02:25And all these other stocks that are associated with it had like a year's worth of gains in just a
02:32few weeks.
02:33You know, broadly speaking, equity markets kept hitting records.
02:37The S&P 500, the NASDAQ 100 is my favorite index because it's a tech-heavy one.
02:42And NVIDIA in the first two weeks of May accounts for most of that.
02:45You know, so I think part of it was just saying, okay, we were about to have earnings.
02:50What did we actually learn from China?
02:52We're not sure.
02:52Everyone's kind of scratching their head.
02:54Everyone on Friday took a breather.
02:55We were on air yesterday as details of some of these deliverables came across the terminal having to do with
03:00agriculture and tariffs.
03:01Are we still awaiting perhaps word on China's appetite for these NVIDIA chips?
03:06We saw Jensen Huang supping noodles around Beijing and enjoying the local scenery and all of that.
03:12But is he and are they still optimistic that there could be some announcement here in the days ahead?
03:17What the president said was that he discussed the issue of H200, which is a depowered variant of or a
03:26lower power variant of a prior generation of chip that NVIDIA makes,
03:30not its latest chip, and the president, as the president puts it, China's not interested really because they want to
03:36support their own domestic industry and their own domestic chips.
03:40And so, like, the reason that I kind of – I was joking, but the reason everyone's saying, well, what
03:44was the net outcome of that trip is nothing's changed.
03:47You know, the U.S. had already licensed NVIDIA to be able to allow to export their chips from the
03:52U.S. to China on a technical basis.
03:55Jensen said in March, I've got orders from Chinese companies, but it isn't up to either of those people.
04:02The president of the United States with Jensen Huang, China isn't allowing them to do this yet.
04:06And so, again, it's a base case assumption of zero.
04:09Ed, before we let you go, we've only got about a minute left, but you are heading to Vegas for
04:13the Dell Technologies World Conference.
04:15You're going to speak to Jensen Huang along with Dell CEO Michael Dell.
04:19What are you expecting and what should we be on the lookout for?
04:22Yeah, they're very close business partners, very close personal relationship.
04:26Dell assembles servers.
04:27Servers go into data centers, and it's as simple as that.
04:30And, you know, historically, NVIDIA didn't sell its chips directly to the market.
04:35It needed Dell to sell to all kinds of companies.
04:38They're trying to make the idea of owning your own data center great again, you know, what we call on
04:44-prem, but don't rely on cloud computing companies.
04:46Build your own, and that's kind of a bit of what the story will be.
04:50But please tune in, and I welcome audience questions.
04:52You know where to find me.
04:53I always love it when you guys submit your questions, too.
04:56Let me just pick up on this quickly.
04:57I don't know if you want my questions, but probably David's.
04:59But this is the thing now.
05:02We have Jensen Huang with another CEO.
05:03They sit down and compliment.
05:04This is something that they really like.
05:05NVIDIA likes to play up, the point of partnership.
05:08I'm just stating I have no idea if it's a part of the deal, a part of the contract between
05:13one company and another.
05:14But Jensen appearing alongside one of his partners in an interview on stage is something that's happened regularly for the
05:20last three years.
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