trading here. As the Nasdaq firms up this morning. But a few pieces missing including Nvidia. Andrew Chang joins us from S&P Global Ratings technology director covering some of the key stocks that we're watching Andrew. Good morning. Good morning. Let's talk some Nvidia first here. It's just obviously still such a crucial player this week. Some fresh optimism around Jensen Wong's comments for Blackwell. Did you hear anything different there? Anything new? No, it just confirms our view that we have strong runway for at least the next 12 months. I was at the conference at which Jensen spoke. So the reiteration of the demand being strong. Also, another data point. Oracle earnings recently, CapEx doubling for fiscal 25. All of these are great data points that at least for the next 12 to 18 months, things look great. I mean, from the credit perspective, we like the significant technology lead that Nvidia has strong product execution. Ultimately, it's not a GPU company. It's a platform company with GPU hardware, Cuda software. It's a full rack scale solution, which is very different than other software companies. Other semi companies out there. Great point. Also a really good point on Oracle too, because one of my questions has been over the last quarter and a half, basically, where will the marginal surprise come from in terms of who's buying these chips? Like what hasn't been priced in? Basically, it kind of seems like Oracle's guidance and the CapEx spend there was sort of an example of that that like there were companies that we kind of like didn't quite understand how much they were spending on this. We were talking about it for Amazon, Microsoft and others, but maybe Oracle, a bit of a surprise. Oracle is a bit of a surprise given how rapidly that spending is ramping up. From our perspective, again, from the credit side, we are more concerned about that issue of CapEx running ahead of AI revenues, which has been reported on ad nauseam. Ultimately if Oracle, if Microsoft, Amazon don't see the ROI at the timing that they expect, they're going to cut orders. So hyperscale. So hyperscale demand volatility is something that really concerns us. But as of now obviously all positive news for now. But you know these data center players have been known to order a bunch and then pause for multiple quarters. So that's what we're looking out for. Okay, as far as exogenous regulatory stuff, antitrust pressure rumors, the whole gambit of kind of scrutiny falling on the sector, is there any way to price that in at the model or are you just are we just kind of at the whims of regulators? Yeah, I you know, I think we should expect more regulations on the EU side. You're about transparency, accountability, the pending California bill. It's about safety protocol for AI systems. Clearly there's antitrust scrutiny from Justice Department on Nvidia. I mean, as or given the massive Tam total addressable market we're talking about here and the potential for AI to disrupt our economy, I think it's just a matter of time before other sovereigns, other jurisdictions jump in and try to regulate this market. Okay. Well said on Nvidia. Like the update on what you heard from Oracle and the conference. Adobe this morning under pressure. One of the few companies really that's got a live AI product that's been there for a couple of quarters now. I know you're a credit guy. Stocks getting hit though. I mean, seems like a pretty high bar. Doesn't look like the products like bad. I would say it's all about expectation. From the credit side, numbers are great, but software sector clearly underperforming for the year. It's about investors understanding the timing of software benefits from AI. And that timing is going to be a while. It's going to take time to monetize. I mean, clearly software budget at the margin has taken a back seat to AI investments. The spending, of course, is clearly occurring at the infrastructure layer now, but that's going to move up to the next stack, to the platform, and then to the application stack. On the software side, you got to remember that we have similar concerns back ten, 15 years ago when Microsoft and Amazon were investing in the public cloud, a lot of investments, no return for a while. Same thing when software moved from license to subscription model. Again, a lot of business disruption. What investors need to be aware of is that the semi software benefit from AI. That's going to take time. It's not going to be flashy like that of the semi. All you're doing is adding AI functionality to existing software. Exactly. And Adobe is going to sell that at a marginally higher ASP. It's not sexy, but it does mean that a mature company like Adobe can accelerate growth, can add to annual recurring revenues. And that's great. Okay, so the last point there, Andrew, do you think more that kind of the weakness right now, at least in the market or kind of the perception of it is more tied then to just kind of the financials associated with building out some of these new things instead of like the product, this being a reflection of a weakness of the product. Your point is like, all right, you know, the average price per sale is moving up here. That's not like a ballistic overnight event. Maybe the market thought it was going to be. Yeah. Correct. You have to look at Adobe as somebody who has 40 million plus Creative Cloud subscribers. They talked about 12 billion images created in Firefly. It's a matter of time before this is monetized. But again, the monetization will be gradual, slow to now to the up and to the right. But it's not going to be an Nvidia type of number. Far from it. All right. Thanks, Andrew. Great stuff. Good perspective there. Nice look at