Chamath Palihapitiya Nvidia's Price is Going to Blow Your Mind

over the next five years I see nvidia's stock easily reaching a market cap of 50 to 60 trillion do Nvidia jumped 12% on some comments made by meta um and Microsoft that both said that there's increased AI demand and they're going to continue to uh to build out capacity so chamat I know you've talked a lot about this in the past maybe you can give us your read on the comments that were made this week you've historically said that a lot of this buildout is well ahead and there's no real Roi yet but clearly some of the buyers of this Capital Equipment are saying Hey There is Roi we're going to continue to build aggressively so maybe you can share a little bit on is anything different or we just kind of seeing folks justify with the decisions they've made I mean sadly this is another case of Sela news these things rallied Phantom in the after hours and if you look at them they've they've all just given back every dollar of gains so I think that people know that back in the day Nvidia was the driving force behind Tesla's Cutting Edge technology these gpus powered Tesla cars until the company eventually developed their own in-house systems now these original Nvidia cards have become legendary collector's items fetching big bucks on the black market for example one particular model is currently selling for $19,000 and some rare additions have even been sold for hundreds of thousands of dollars now is your chance grab yours from the link below but Act Fast stock is extremely limited that we're sort of at the tail end of the of the hype cycle on AI every chance every time these things Spike people take an opportunity to just massively sell I mean nvidia's turned over 38 million shares today yeah it's crazy it's it's it's literally it's Lally beginning of the day it's trading like a penny stock it's going straight down like the lead balloon yeah meta rally they've basically given up all of their gains it's gone kind of straight down today but the point isn't that these companies are going to zero that's not the case it's just the point is that right now people are optimizing they're selling every chance they get to kind of book the profits and I think that that's fair because you know at some point nobody knows when all of this Phantom money is going to show up right so this is independent of what we would call the economy independent of the recessionary conversation and the rate conversation we just had look I mean I'm in the middle of this right now with 8090 it's been one of the joys of my career to actually start a company in the middle of what I think is the most important wave that I've ever seen professionally since social networking and I jumped into the middle of that wave and I kind of tried to ride the best wave I could there I'm doing it here but my honest takeaway after being in this thing now for you know 7 months intensely and I'll be into it for as many years as it takes to build a successful company is that AI is massively deflationary it takes not that much money and the results are really meaning meaningful in terms of the amount of efficiency that you can capture and the costs that you can save and the right business people I.E startups that are starting from scratch like myself and my co-founders at 890 we will pass that on to our customers because it allows us to differentially price versus incumbent Solutions and so I don't see a path where all of a sudden a multiple of the money that's been spent shows up I don't see it I do see a path where companies find tremendous like think about it this way if you looked in the 1980s and said what is the most profitable operational company that existed in the 80s I don't know what that company was but I suspect that their EA margins were roughly in the 30 or 40% range and it and it was probably incredible if you fast forward now 40 years the most efficient company is probably sort of 50 or 60% EA to margins the reality is that the best AI enabled company will probably have margins that are 70 and 80% in the next 15 or 20 years now that's an incredible thing that's a big prediction but that will again spur the principal law of capitalism that everybody keeps forgetting which is you compete out excess return and so while you will have many companies that have you know 60 plus% operating margins they'll be in much smaller markets and there'll be thousands and thousands thousand and thousands of them so I suspect what happens is that the overall Market grows but the number of companies Grows by an even order larger order of magnitude and in all of that the reality is that it's going to be very hard for these big folks to to to sort of see this value captur that that makes any of this investment worthwhile so I think that you're going to have to have some sort of reset in terms of the capex that's happened here Nvidia has captured the attention of investors worldwide thanks to its pivotal role in the AI Revolution but is it a better fit for long-term or short-term investment strategies long-term investment nvidia's position as a leader in AI chip technology provides a strong foundation for long-term growth as AI continues to reshape Industries the demand for high performance Computing is likely to increase benefiting companies like Nvidia the company's Innovations in Ai and strategic investments in Next Generation Technologies suggests that it could experience substantial growth over the coming years nvidia's consistent focus on advancing its technology and expanding its Market presence positions it well for sustained success making it an attractive option for those looking to invest with a long-term perspective Nvidia sharers climbing higher once again today the stock soared yesterday adding $327 billion dollar to its market cap was driven Higher by strong results from competitor AMD now despite the recent rally though Nvidia Shares are still sitting roughly 133% below their all-time high joining us now for where Nvidia and some of its competitors are headed we want to bring in Stacy Rasin he's Bernstein's managing director and Senior analyst Stacy it's great to talk to you again so it looks like a lot of that excitement has now returned I'm curious do you think there's been just this shift in sentiment following amd's results that we got yesterday so I don't actually think it was about amd's results I think it's about the capex guides we're seeing from lots of the hyperscalers Microsoft and and and meta and Google um all of those those capex outlooks look very supportive like we're starting to see those numbers continue to go up and I think that's what's been driving uh the AI trade I actually don't think really it was amds amds results were not bad necessarily they took their own AI guidance up a little bit but I don't think they took it up any more than people thought they were going to I don't think it was above where where people thought so Stacy then given that capex guide that we are getting from some of these hyperscalers what does that tell us just about the opportunity the upside here that we are potentially seeing for these chipmakers well I I mean look for for companies like these I mean some of the numbers are are very large right as you're as you're looking forward in terms in terms of where expectations are and you know the hyperscalers they're they're big customers they're doing a lot of that spending and so you do want to see those those numbers go up this was a concern if you go back I don't know a quarter or two ago there was a big mismatch at that point between like where the capex Outlook was at the time and a lot of these AI names and we've continued to see the the capex guides actually go up materially I think even meta reported last night and and not only do they take their capex guid it for the year they said that they're going to have like probably substantial increases next year and so I think that's really what's important the the big worry that people have is just is there an air pocket like coming there's so much spending going on the numbers have gotten so big so quickly people worry about sustainability and what we've been hearing from some of the customers is it looks like that spend at least for now is sustaining I think that's what's what's been driving things and and so Stacy as we think about growing into some of these valuations I mean what are these companies going to have to show that they can do in order to grow into the the lofty numbers as we've been discussing well I mean so so be careful like lofty numbers lofty valuations are two different things not all these companies are expensive right you can look at a company like like Nvidia it's actually quite a bit cheaper today than it was before the Run started you know a year or a year and a half ago um because as much as the stock is gone up the earnings of estimates have gone up far more than that and so that becomes the question like is are the earnings actually achievable um I they need to clearly clearly the numbers need to go up I mean I I would say that you know given where the sell side numbers are the investor the buy side numbers are going to be even higher than that um and so any kind of increases we can see the customer spending any sort of clarity we can get on business models what are they actually doing with this spend is is helpful and I would say at least in in in the near term what we're hearing from that supply chain and from the customers is constructed the tech sector is inherent ently volatile and even industry leaders like Nvidia can face significant challenges Market fluctuations and economic uncertainties can impact stock performance the high valuation of nvidia's stock might expose long-term investors to substantial risks if the company fails to meet the lofty expectations set by the market additionally shifts in technology Trends competitive pressures or unforeseen disruptions in the industry could affect nvidia's long-term performance making it crucial for investors to carefully evaluate potential risks short-term investing Pros nvidia's stock price has exhibited considerable volatility creating opportunities for short-term traders to profit from Price fluctuations positive news such as strong earnings reports strategic Partnerships or breakthroughs in technology can lead to Rapid increases in the stock price conversely negative developments or Market Corrections can drive prices down offering short-term Traders opportunities for quick gains or adjustments for those Adept at navigating Market movements and timing trades nvidia's price volatility can provide lucrative opportunities think about it AI is the future it's going to transform every industry from Health Care to finance transportation to manufacturing and at the heart of this AI Revolution nvidia's chips they're the brains behind the operation now let's talk numbers over the next 5 years I see nvidia's stock easily reaching a market cap of 50 to 60 trillion that's trillion with a imagine the possibilities it's a bold prediction I know but when you consider the company's dominance in AI Hardware its massive growth potential and the sheer scale of the AI opportunity it's not as far-fetched as it might seem back in the day Nvidia was the driving force behind Tesla's Cutting Edge technology these gpus powered Tesla cars until the company eventually developed their own in-house systems now these original Nvidia cards have become legendary collector's items fetching big bucks on the black market for example one particular model is currently selling for $119,000 and some rare additions have even been sold for hundreds of thousands of dollars now is your chance grab yours from the link below but Act Fast stock is extremely Limited