00:00Let's discuss earnings. Bloomberg tech co-host Ed Ludlow is joining us. Ed, it's the big one. It's NVIDIA after
00:05the bell. I was just saying the bar is really high. So where exactly is that bar? Yeah, the bar
00:11is really high. But with the expectation that it doesn't really matter what happens in the quarter gone. They want
00:16Jensen Wong to give some guidance. Right. So top line growth of 80 percent. EPS growth 85 percent in an
00:23environment where the demand is Jensen Wong told us on Monday. Right. Is vastly outpacing supply.
00:30That's that's the status quo. There are some overhangs on the stock. Right. In most recently China. Like what you
00:36guys were saying is so spot on. You know, through yesterday's close in aggregate on the socks. We were flirting
00:43with correction territory just from Friday, Monday, Tuesday. Wow. Because there wasn't really this like net outcome from the president
00:50and his trip to China and Jensen going with him. We didn't have any certainty on that. But yeah, it's
00:56it's very elevated for sure.
00:58The thing is analysts expect them to beat and raise. Right. Always. Yeah. Which begs the question. Why don't analysts
01:04just raise their estimates. But also China could be not for the reporting quarter.
01:12But for the outlook, a really important piece or is China actually a small piece for the outlook, Ed?
01:17Yeah. You know, it's more psychological than anything else. Like the base case assumption right now is zero revenues from
01:23China. And NVIDIA has talked regularly about it being a 50 billion dollar opportunity.
01:28But that's what I mean. That's the part that needs to be reconciled. Because at NVIDIA's own conference in March,
01:35Jensen Huang was on stage talking about the idea that because they had those licenses from the US and they
01:41saw an indication they would get orders from China, they ramped up the supply chain.
01:46But clearly it's it's up to China and China right now is positioned based on what the president said and
01:51based on what Jensen told me on Monday is they want to protect their own domestic players.
01:55So it doesn't move the needle really, you know, in the modeling for the sell side. It's just this idea
02:02that Jensen Wang and NVIDIA is right at the heart of the broader China story.
02:05So much for the 50 billion dollar TAM. Right. Right. Everyone is so pumped. And I've been saying the entire
02:11time for over a year. OK, so they can sell into China.
02:16But the Chinese government keeps telling companies not to buy these things. And everybody was poo pooing, you know, my
02:22negativity here.
02:22It turns out that parade has been rained on. The thing is, there was a time where China was a
02:29critically important data center market. Right.
02:32Prior to the AI revolution. But there is an opportunity there. Right. Tencent, Alibaba, Baidu are massive companies that can
02:42be seen as being like at hyper scale, you know,
02:45with a similar data center footprint to those here in the United States. The opportunities there and they, you know,
02:51as Jensen Huang
02:52would put it more academically, 50 percent of the world's AI research is being done out of China or by
02:57Chinese engineers and scientists.
02:59So that's that kind of is the why of why they want to be in it.
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