Has Nvidia's stock been too priced to perfection? Two top investors weigh in

Published: Aug 28, 2024 Duration: 00:05:29 Category: News & Politics

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DAVE, LET ME START WITH YOU, FIRST OF ALL, THE EXPECTATIONS VERSUS THE REPORT, TO ME, IT LOOKS LIKE ANALYSTS PRETTY MUCH NAILED IT. MAYBE THEY SHOULD GET A GOLD STAR THIS MORNING? >> YOU'RE ABSOLUTELY RIGHT WHEN YOU LOOK AT A COMPANY WHEN THEY BEAT AND RAISE, THEY GROW REVENUE AT 150%. THE MOST AGGRESSIVE GROWING AT 155%. NORMALLY THAT WOULD BE TIME FOR INVESTORS TO CHEER BUT BECAUSE WE'VE BECOME SO 0 CUACCUSTOMED NVIDIA, WITH INCREDIBLE BEATS AND ALSO RAISES, THE STOCK BEING PRICED TO PERFECTION, YOU KNOW, INVESTORS ARE SELLING OFF THIS MORNING. ACTUALLY, IT'S COME BACK IN, TO YOUR POINTERS FROM SOME OF THE EARLIER LOADS. THIS IS AN EXAMPLE THAT EXPECTATIONS BECAUSE THE MARKET WAS SO HEAVILY INFLUENCED BY NVIDIA BEING THE KING OF A.I., REALLY, ANY NEGATIVE NEWS WAS A SIGN FOR INVESTORS TO PULL BACK. >> OR JUST TO TAKE THE MONEY AND RUN FOR A BIT. SARAH, HOW IS NVIDIA'S REPORT INFLUENCING HOW YOUR STRATEGY WILL DEVELOP OVER THE DAY? >> I THINK THE REALITY IS I'VE BEEN SEEING THIS FOR A WHILE. THIS IS A GOOD COMPANY IT'S NOT AS GOOD FOR COMPETITORS AS IT USED TO BE. WE SEE THAT IN THE FORWARD PRICE GUIDANCE. THE REALITY IS, INTEL, GOOGLE, ALL OF THESE TECH NAMES THAT ALSO DESIGN GREAT CHIPS, THEY'RE ALSO TALKING ABOUT NEW THINGS THEY'RE GOING TO RELEASE THIS YEAR AND IT DOESN'T HELP THAT BLACKWELL IS STILL NOT HERE, RIGHT? IT SEEMS LIKE IT'S GOING TO BE GREAT BUT THEY NEED TO GET SEMICONDUCTORS OR OTHER FABS TO MANUFACTURE IT. >> THEY SAID THEY WERE SHIPPING THE VOLUME IN THE FOURTH QUARTER, IS THAT NOT ENOUGH FOR YOU, SARAH? >> YOU KNOW, IN THE FOURTH QUARTER AND INTO 2026, I THINK WE'RE SEEING THE WIGGLE WORDS THERE. AND KICKING IT OFF. WHAT WE'RE NOT SEEING IS THEM COMING OUT AND SAYING IT'S HERE, IT'S SHIPPING. WE KNOW THE DEMAND IS THERE IN PART BECAUSE IF YOU WANT TO SESEE NVIDIA IN GOOD GRACES, YOU HAVE TO SEE IT. I THINK THERE'S POTENTIALLY A LITTLE CONTENTION BETWEEN THEM AND THEIR MANUFACTURERS OF HEY, MAYBE PAY US A LITTLE MORE, WE'LL WORK A LITTLE FASTER AND YOU CAN GET YOUR CHIPS OUT SOONER. SO I THINK THE CHIPS, THE NEW LAUNCHES, ARE GOING TO BE AN AREA TO WATCH. >> DAVE, WE GOT A LOT OF COLOR COMMENTARY NOT ONLY ON THE CHIPS AND BLACKWELL BUT HOPPER AS WELL. BUT THE QWAY THAT COMPANIES ARE MAKING AN INVESTMENT ON HOPPER. >> YEAH, WE KNOW PARTICULARLY NVIDIA'S LARGEST CUSTOMERS, SOME OF ITS NUMBERS, ALPHABET, AMAZON, MICROSOFT, META, THEY'RE PLOWING ALL OF THEIR CAP ASSETS, A GREAT PORTION OF THAT, ANDS KR INCREASING THAT CAPEX. THEY HAVE SUCH A READ RELATIVE TO CHIPS. AND THEY NEED THEM TO BUILD THE LARGE MODELS. WE KNOW COMPANIES, LOOK AT WALMART MOST RECENTLY. THAT'S A HOUSEHOLD NAME, NOT A NAME YOU ASSOCIATE WITH A.I., THEY'RE USING IT TO MAKE THE BUYING EXPERIENCE EASIER NOFOR CONSUMERS AND FOR EMPLOYEES TO NAVIGATE THE HR SYSTEM. AND THEN WE SAW EXAMPLES HOW SERVICES LIKE SERVICE NOW, FMP AND DOX ARE USING A.I. NOW. WHAT WE'RE SEEING WE'RE AN AN INFLEXION POINT FOR A.I. AND COMPANIES NEED TO BUILD IN MONEY TO BUILD THIS. FOR THE TIME BEING, NVIDIA IS A BIG BENEFICIARY BECAUSE OF HOPPER AND THEN WITH BLACKWELL COMING. >> SARAH, WE HEARD ON THE CALL IN FROM THE CFO THAT CHINA IS A CONCERN. THAT THE DATA GREW IN THE SECOND QUARTER BUT REVENUE WAS DOWN 17%. TELL ME WHAT THAT INDICATES TO YOU ABOUT THE BROADER PICTURE IN CHINA, WHAT IT MEANS FOR THE TECH SECTOR. >> IT'S GOING TO CONTINUE TO BE TOUGH TO SELL INTO CHINA. I THINK UNTIL WE'RE INTO A NEW ADMINISTRATION, WE'RE NOT GOING TO BE SURE EXACTLY WHERE THE FAULT LINES LIE. THEY'RE CERTAINLY NOT INOCULATED AGAINST IT BUT IT'S NOT JUST SOMETHING THAT IMPACTS THEM. WE'VE SEEN THAT WITH APPLE. THERE ARE MASSIVE TECH NAMES NOT IN CHINA AT ALL AND THEY DO JUST FINE. SO I DO THINK THAT'S GOING TO CONTINUE TO BE A LINE FOR THEM TO WALK. ONE CERTAIN THAT IS MASSIVELY I THINK STARTING TO ABATE IS THE CONCERN AROUND TAIWAN AND TAIWAN'S SEMICONDUCTOR. SO THE ABILITY TO GET THE CHIPS MADE IN TAIWAN, THAT'S LESSENED. BUT THE QUESTION IS HOW MUCH CAN AN AMERICA

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