Nvidia's earnings were 'boring' but stock still has plenty of runway, says Gabelli's John Belton

Published: Aug 28, 2024 Duration: 00:04:54 Category: News & Politics
Tags : news Breaking News money finance investing business politics wall street stocks economy CNBC the exchange kelly evans newsroom
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"NVIDIA." HOW ABOUT THAT? PRETTY GOOD. >>> WE MIGHT NOT GET THROUGH THE NEXT WITHOUT MENTIONING IT. TECH MAY HAVE TAKEN THE SPOTLIGHT AMID THE RUSH TO BUILD OUT AI INFRASTRUCTURE, BUT THE SAFETY TRADE HAS QUIETLY OUTPERFORMED, AND YOU CAN SEE THAT RIGHT HERE. SPDR GOLD ETF GLD UP 21% THIS YEAR TO DATE, VERSUS THE SPDR TECH ETF, XLK, WHICH IS UP ABOUT 15%. HOW ABOUT THAT? HERE TO MAKE THE CASE FOR BOTH, I'M JOINED BY MARK SMITH FROM WELLS FARGO, AND JOHN BELTON FROM GROWTH EQUITIES. MARK, YOU HAVE BEEN BULLISH ON GLD SOMEBODY >> WHY NOT? IT'S A SAFE HAVEN. IF YOU LOOK AT IT OVER THE LAST TWO YEARS, THERE ARE A NUMBER OF REASONS TO GO INTO IT. NUMBER ONE, GEOPOLITICAL RISKS. WE JUST SAW YESTERDAY A MILLION BARREL JUST GOT BOMBED IN THE RED SEA. THAT COULD BE MAJOR ISSUES FOR A NUMBER OF DIFFERENT COUNTRIES, AND IN FACT, COULD CAUSE FURTHER CONFLICT IN THE MIDDLE EAST. SO GLD IS A SAFE HAVEN. NUMBER TWO, YOU HAVE A PRESIDENTIAL ELECTION. NOT ONE CANDIDATE IS TALKING ABOUT OUR DEFICITS. AND THAT SHOULD BE CONCERNING FOR EVERYONE. GLD IS ANOTHER REASON -- >> THAT'S PROBABLY BECAUSE BOTH OF THEIR PROGRAMS WOULD RAISE THE DEFICITS. >> EXACTLY. GLD MAKES SENSE, TOO. A LOT OF FOLKS WERE GOING TO BITCOIN IN THE LAST TWO, THREE YEARS. YOU'RE NOT SEEING THAT AS MUCH RIGHT NOW. GLOBALLY, YOU'RE SEEING A HUGE DEMAB DEMABND FOR GOLD. >> ANOTHER AREA YOU LIKE IS UTILITIES. A REAL SAFETY PLAY. >> ABSOLUTELY. LISTEN, THE ELUSIVE SOFT LANDING IS YET TO BE SEEN. AND SO UTILITIES -- >> YOU THINK IT'S NOT COMING? >> WE'VE SEEN IT RIGHT NOW, BUT WE JUST SAW A HUGE JOBS REVISION, ONE OF THE LARGEST THAT I'VE SEEN IN MY CAREER. ALL THE NUMBERS THAT I HAVE SEEN WHEN I THOUGHT RATES WOULDN'T GO ANYWHERE, THAT WAS BASED UPON THE NUMBERS. THE NUMBERS ARE WRONG. SO IF YOU LOOK AT THAT, YOU HAVE TO SAY HEY, LISTEN, ARE WE GOING TO GO AHEAD AND CONTINUE THIS? ARE THE NUMBERS GOING TO CONTINUE TO GET WORSE THAN THEY ARE? AND SO THAT COULD BE A SLOWDOWN. MAYBE THAT SOFT LANDING WE WERE PREDICTING IS WRONG, BECAUSE WE WERE LOOKING AT NUMBERS THAT WERE INCORRECT. >> JOHN, LET'S TURN TO TECH. IS EVERYTHING OKAY IN AI LAND? >> WELL, I MEAN, THANKS FOR HAVING ME, TYLER. I WOULD START BY SAY, SORRY I HAVE TO RAIN ON YOUR PARADE AND TALK ABOUT SOMETHING AS BORING AS NVIDIA'S EARNINGS. I GUESS JUST TO START THERE, BECAUSE THAT IS THE TOPIC DEJOUR. I WOULD SAY IT WAS MORE OF A BORING EARNINGS REPORT FOR NVIDIA, IF SUCH A THING EXISTS. I THINK WE KIND OF LIKE BORING. I THINK BORING IS ACTUALLY HEALTHY FOR THIS STOCK AND FOR THE LONGER TERM FOR THE AI SPACE MORE BROADLY. BUT NVIDIA WAS KIND OF A BORING STANDARD BEAT IN RAISE. I THINK THERE'S STILL PLENTY TO GET EXCITED ABOUT. THEY'VE HAD THE DISCUSSION OF BROADENING THE PRODUCT, STILL PLENTY OF RUNWAY FOR I WOULD SAY ACCELERATED COMPUTING IN AI AS A SUBSET OF THAT TO RUN. SO, YEAH, I THINK THERE STILL IS -- >> YOU OWN IT, WOULD YOU BUY MORE OF IT? >> SO NVIDIA IS ONE OF THE TOP POSITIONS IN EACH OF OUR FUNDS. WE'VE OWNED IT FOR MANY YEARS. WE'RE A LONG-TERM INVESTORS WITH NVIDIA. I THINK WE HAVE BEEN BUYING IT HAS WORKED WELL FOR US. IT'S NOT SOMETHING WE TEND TO TRADE VERY ACTIVITY ON EARNINGS REPORTS. LAST NIGHT'S EARNINGS IS VERY VALIDATING. WE'RE HAPPY TO HOLD IT FOR THE LONG-TERM. WE THINK THE OUTLOOK IS, OVER TIME, PRETTY POSITIVE. >> OKAY, IF THAT'S SORT OF SUSPECT NUMBER ONE, NOT SUSPECT, BUT CANDIDATE NUMBER ONE IN AI, TO YOUR VIEW, WHAT ARE NUMBER TWO, THREE, AND FOUR WHERE I WOULD WANT TO PUT MONEY IN ARTIFICIAL INTELLIGENCE RIGHT NOW? >> PROBABLY -- WELL, I WOULD SAY NVIDIA IS THE TOP -- IS EACH OF THE FIRST FIVE. AFTER THAT, I THINK THERE'S A LOT OF DIFFERENT WAYS TO PLAY IT. UTILITIES BEING ONE AREA THAT IS GOING TO BENEFIT FROM ALL THE POWER DEMAND. >> INTERESTING POINT. >> SO YOU HAVE THE CLOUD SERVICE PROVIDERS WHO ARE NVIDIA'S LARGEST DISTRIBUTORS. I THINK -- >> THOSE BEING? >> MICROSOFT, GOOGLE AND AMAZON. I THINK, YOU KNOW, THAT'S GOING TO BE THE FIRST PLACE WE SEE AI TANGIBLY SHOW UP IN FINANCIALS. YOU HAVE THESE BIG CONSUMER INTERNET COMPANIES, WHERE META AND GOOGLE ARE USING AI, ACCELERATED COMPUTING INFRASTRUCTURE TO BOLSTER THEIR CORE BUSINESSES. SO THAT'S NOT DIRECTLY A PLAY ON AI, BUT THAT'S AN

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