00:00I think it's interesting to have you know Nvidia and Walmart right next to each other because Walmart is the
00:05inflation story which to be honest we don't really care about much.
00:10It feels like the Fed has never really cared about that much. And then on the other hand you've got
00:14the the A.I. story which is everything right.
00:18That's what's driven us to 7500 on the S&P. Does it matter much more. Well it's great to be
00:25with you. Thanks for having me.
00:27I actually thought Walmart was an A.I. story. I mean today it's an inflation story. Yesterday it was an
00:34A.I. story.
00:35I mean you just say A.I. and everything's an A.I. story. So I mean what really matters at
00:40the end of the day I think is the sustainability of growth and the trajectory of growth.
00:44So in terms of Nvidia the topic du jour right. The fundamental story there just continues to be really strong.
00:52But I think as many of your other guests this morning have shared you can't keep that pace up forever.
00:58Right.
00:58Is it to the moon. And so I think this natural sort of next stage of the innovation cycle is
01:04some maturation and some slowing in terms of growth.
01:07That's not a negative. It just means that the stock price reaction is a little bit more of a snoozer
01:12than maybe what investors would like.
01:14I think just zooming out I think the stock markets kind of traded a little bit directionless the last few
01:19trading days in particular mostly hoping that we would get a quick resolution to the conflict with Iran and that
01:26inflation would start to settle in.
01:28Nobody waved a magical policy wand to make that happen. So I think it's just a little bit of steam
01:33coming out of the market rally sales at the moment.
01:35You're talking about to the moon just baiting me to talk about SpaceX Amanda. That's what I feel that one
01:41of the ways in there.
01:42I love it. One of the ways I thought Mandeep Singh from Bloomberg Intelligence he was talking on radio.
01:47I thought made a really really good point about just kind of the valuations in this market we're willing to
01:53accept.
01:53So theoretically SpaceX goes at two trillion dollars.
01:56He pointed out that it's growing 30 percent off of a 20 billion dollar revenue base.
02:02NVIDIA is growing 80 percent off of a 40 400 billion dollar revenue base.
02:07So in that case if you're willing to pay two trillion for something like a SpaceX Amanda should we be
02:14thinking about NVIDIA trading much more richly than it is now and maybe a lot of the other chip makers
02:20in the similar instance.
02:22Well we've certainly seen chip makers and just AI leverage plays in general trading at much higher valuations.
02:31Some of that has settled in a little bit. So I think it all comes down to the multi-year
02:37secular growth story for either SpaceX or just AI in general or more broadly speaking.
02:42And so investors are willing to pay up big time right technical term for you big time in terms of
02:48forward P is under the assumption that we're very early innings and this long secular tale of growth is just
02:55going to continue and an unabated pace.
02:57I think that's very much the case with AI. We're still very early innings three or four years into it
03:03doesn't mean much.
03:04We haven't seen those use cases really permeate the market more broadly speaking.
03:09So I think there's a ton of runway there. I'm not sure I know yet what the runway for SpaceX
03:14in terms of growth is.
03:16You know it's a big bang right in the best possible sense hopefully.
03:21But I just don't know that it's going to have the same legs that a broader AI trade has.
03:26So I'd be a little nervous.
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