00:00 Speaker A
Let’s talk about when you have a buy on, Stacy. That that would be Nvidia. Now, Bloomberg reporting, you saw this one. Uh, Chinese government has told companies over there, like Alibaba, yes, they can start to get ready for those H200 AI chips. You saw that headline, you saw that story. Uh, I guess, do you actually, do you believe that story, Stacy? Do you believe that headline? The timing is interesting, because I do see reports that CEO Jensen Wong playing to travel to China in late January.
00:33 Stacy
Yeah, may maybe. Look, so we hear these headlines all the time, like it it’s on, it’s off, it’s on and off. At a minimum for for Nvidia, at least they took China completely out. So like if it takes longer than expected, it’s not downside at least. And that was very smart of them. And fortunately for them, they’ve got so much demand right now that that even without China, they they they’ve got plenty, right? They’re they’re selling everything they can make. Um, at least from the US side, it does look like they’re going to be allowed to sell and so like the the bottleneck or the gateway at this point has been China. And if China releases that bottleneck, I I’m convinced that there was a lot of demand in China for those parts. So they will be able to sell in China anything that they were allowed to sell. What that number is, I don’t know, but whatever it is, it’ll be upside from where things are right now, um because they zeroed it out.
01:21 Speaker A
You know, Nvidia, I’ll end here, Stacy. Nvidia, it’s been moving basically sideways here for for months. Why is it moving sideways? And what are the catalysts, Stacy that are going to move it higher? As a guy as I, you know, as a fan of the name.
01:42 Stacy
Yeah, it’s a great question. and and it’s funny too because you look at other parts of the space like like semi cap and memory and all these things, they’ve they’ve all just been ripping. Why? Well, you know, they’re going to build all this great AI stuff. Like okay, and that’s that justified. like fine, but but but for who? Like who are they building it for? It’s going to be companies like Nvidia. So it’s it’s been this very interesting um divergence between these two groups. and in my opinion, that divergence is not sustainable. Like one of them is wrong in in my opinion. Um so I actually do think that there is a a potential for a catchup trade because I don’t think that the like the other parts of the supply chain can be doing as well as they they are doing and have it sustained if if it eventually doesn’t filter down to the compute names. And and even for Nvidia, they’ve they’ve even said it, like that the numbers are too low and I mean, the stock is like really cheap. I mean, in terms of catalyst, I mean, look, you you got earnings coming up and you know, they already talked a little bit about Ruben at CES. I think it’s going to be a big cycle for Ruben this year. I’ve got GTC, their their um uh GPU technology conference in March at their uh up in San Jose. in Santa Clara. Um, you know, you’ll start getting Ruben data points like coming out of the supply chain in the first half for the launch in the second half. and hopefully we’ll start seeing some of the the new models that have actually been trained on Blackwell. We’ve actually haven’t seen any Blackwell trained models yet. So hopefully when the when we see those kind of come out that hopefully those models are good, but I do think there’s enough catalyst coupled with hopefully like like numbers finally like really going up and a valuation that is very inexpensive. Um I I like Nvidia. I do.
03:13 Speaker A
Stacy, we will leave it there. Always great to have you on the show. Enjoy the weekend.
03:17 Stacy
Yeah, you bet.