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Investors Wait For Nvidia Earnings

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Bloomberg Nov 19 09:34 · 30.8k Views

Chips stock edged higher with the exception of Nvidia ahead of their earnings on Wednesday as reports emerge that design of its AI chips have hit a snag.

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Transcript

  • 00:00 Look, you have been thinking just broader than the chip infrastructure.
  • 00:04 You've been thinking about
  • 00:05 AI and energy needs, for example.
  • 00:07 How are you seeing this broadening out?
  • 00:10 Good morning.
  • 00:11 Great to be here today.
  • 00:12 Well, I, you know, I think that the AI trade continues to, to chug along, right?
  • 00:16 We might have some blips in the road and, and feedback on chips and things like this.
  • 00:19 And
  • 00:20 you know, so much in terms of the near term performance on semiconductors and tech will be hanging on NVIDIA,
  • 00:26 NVIDIA earnings, But there's more to do, right?
  • 00:29 So if we think about where AI goes in the future and, and how AI can continue to, you know, broaden out and, and develop out,
  • 00:37 you need the energy to, to essentially power all of these different things we're doing.
  • 00:41 You know, whether it's
  • 00:42 cloud, whether it's data centers, whether it's AI for crypto mining, whether it's
  • 00:47 quantum computing and supercomputing,
  • 00:48 you're going to need these companies like Vistra, like constellation energy,
  • 00:53 GE or Nova, like
  • 00:54 there, there's power that has to come into play here in order for, for this theme to continue to work.
  • 00:59 And so
  • 01:00 I love the AI trade, which is classically chips, right?
  • 01:03 But now I'm going down the line and I'm saying like, what else matters?
  • 01:06 I think quantum computing matters.
  • 01:08 I think AI and, and it's, it's power sources matter.
  • 01:12 I think teleconnectivity matters and things like this.
  • 01:14 So we'll go back to looking at those
  • 01:17 mobile and broadband providers.
  • 01:18 So the AI trade is, is, you know, diverse, let's just say.
  • 01:22 And I think it'll broaden out.
  • 01:24 Why does quantum matter to you and how do you play that?
  • 01:28 Yeah.
  • 01:28 So quantum matters, I think because, you know, so first, when we say quantum, we think of supercomputers, right?
  • 01:34 Basically computers that are able to process data at,
  • 01:37 you know, these these insanely fast speeds so that the the data can be utilized, whether it's through,
  • 01:44 you know, medical research, whether it's through robotics and surgery, you know, banks analyzing risk, aerospace and defence.
  • 01:49 So in order
  • 01:51 for AI to work, you need the data to be processed and has to be processed efficiently and it has to be processed quickly.
  • 01:56 And so,
  • 01:57 you know, I think
  • 01:58 a big
  • 01:59 future development that we'll see
  • 02:01 is is super computing and quantum computing.
  • 02:03 So you can use a quantum ETF, you can use companies like
  • 02:06 Ion Q, you can look at companies like D Wave.
  • 02:09 I mean, they're all pretty small cap companies, but this is kind of
  • 02:12 when you start looking at them right in in their infancy.
  • 02:16 People started looking at Palantir a while ago
  • 02:18 and boy has it ridden the AI wave.
  • 02:20 And I know this is a name that you've thought about a lot and it's getting caught up in a lot of volatility down on today after a big run up on Friday.
  • 02:27 How do you play Palantir and,
  • 02:28 and Doctor Karp's vision?
  • 02:31 Yeah, I mean, I think you just named the, the, the, the new, you know, the new hot kid on the block after NVIDIA, right.
  • 02:36 So
  • 02:38 Palantir, I think is, is likely going to be the stock of the next couple of years that the people really look at it.
  • 02:43 And, and that's because of their role in, in AI and aerospace and, and defense,
  • 02:47 you know,
  • 02:48 government funding and things like this will, will go their way.
  • 02:51 I, I think it's a pullback like like any other.
  • 02:54 And I think
  • 02:54 it's a dip and it's an opportunity to buy on the dip.
  • 02:57 This is a stock that, you know, people traded ahead of that NASDAQ conclusion.
  • 03:01 And so, you know, they did pretty well with that.
  • 03:03 It's kind of a a natural
  • 03:05 relief to take a little bit of profits and, you know, hold that name for the longer term.
  • 03:09 But I'm not worried about the pullback.
  • 03:11 I just think it's an opportunity to get in again.
  • 03:13 I mean,
  • 03:14 talking of pullback, you were just talking about quantum name ion Q and that's having a big pullback on the day as well.
  • 03:19 And
  • 03:20 how do you ride those bouts of volatility?
  • 03:22 Is it that you just cannot be in on one name, you do go broader like with the ETF perspective
  • 03:26 or do you have to be willing to take such downs when you are on the longer term, the direction is higher.
  • 03:32 So I mean, we launched an ETF on this for that reason that like the the tickers quantum and we hold all of these stocks in there.
  • 03:38 And, and you know, to answer your question, we did it for that reason, right?
  • 03:40 You want that broad based exposure.
  • 03:42 So you want exposure to NVIDIA, to
  • 03:44 AMD, to
  • 03:46 to Microsoft, to Alphabet, to all of these companies that have, you know, robust and quality balance sheets that that serve as a ballast for any kind of volatility.
  • 03:55 And then you get the smaller names in there, like the D wave, the, you know,
  • 03:58 Ambarella's, the ion QS and and some of the smaller companies out there that are more volatile, right?
  • 04:03 So it kind of smooths out the ride.
  • 04:04 But when they get their opportunity and and to shine in the sun,
  • 04:08 you know,
  • 04:08 they take off and they take off big.
  • 04:10 So if you look at the performance chart for ion Q,
  • 04:12 you know, it's kind of fairly, fairly decent path there, not unlike Palantir in recent days, right?
  • 04:17 It's just been kind of running straight up.
  • 04:19 And I think same thing.
  • 04:20 I think investors are taking a little bit of profit off the table.
  • 04:23 But how do I think about this?
  • 04:24 I'm a long, long term investor, right?
  • 04:26 So I buy these stocks and I hold them for for years and years.
  • 04:29 That's how long I think
  • 04:30 AI is going to play out, right?
  • 04:32 And so I'm not so worried about these these moves.
  • 04:34 I just
  • 04:35 kind of dabble back in when they pull back.
  • 04:38 Sylvia,
  • 04:38 you've been talking about crypto for a long time as well.
  • 04:41 And I'm just, I mean, how have you ridden this wave?
  • 04:43 How are you thinking about
  • 04:45 ensuring that you're not too overweight?
  • 04:47 What has been a phenomenal run up
  • 04:50 Yeah.
  • 04:51 So a couple of years ago
  • 04:53 I I was actually talking with you guys and I think I said that you know crypto is probably going to hit 100,000 in in the next couple of years.
  • 04:59 There is a solid.
  • 05:00 Here there where he's getting a lot of emails, like so much for that, right?
  • 05:03 We don't want to pull back, but
  • 05:05 but here and, and a lot of people have said that and, and have, you know, even higher targets, right?
  • 05:09 But I I play crypto through micro strategy.
  • 05:12 I think that the the latest election of President Trump is actually going to be great for crypto.
  • 05:17 You know, people kind of asked like, well, what changes, you know, deregulation changes, tax cuts change.
  • 05:21 But,
  • 05:22 you know, if you also have a president that's kind of open to deregulation, you know, that could mean more products that are filed, you know, a change up in the SEC See, it could mean potentially holding crypto on the government balance sheet.
  • 05:33 Like you don't know where this can go.
  • 05:34 But I think
  • 05:35 overwhelmingly, there's a, there's an optimistic and positive view on cryptocurrency going forward because of the recent election
  • 05:41 and not to, you know, not to mention that crypto has just been on the tear anyway, right, for the last year, Risk asset,
  • 05:47 strong economy, you know, tech is doing well.
  • 05:49 I, I kind of throw a crypto in that bucket and you know, it's been a good, a good trade for a lot of investors.