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The REAL Reason Nvidia is Unstoppable · Earn Your Leisure

• 0:00
  Speaker 1: Let's do this, because I think this is going to
• 0:01
  Speaker 1: be a learning lesson. We talked about NVIDIA all show.
• 0:04
  Speaker 1: This or that, NVIDIA or Broadcom? It's more of a
• 0:10
  Speaker 1: fight than people may think, but for sure, NVIDIA.
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  Speaker 2: Like, one of the greatest.
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  Speaker 3: Okay.
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  Speaker 4: Since Tim Cook has stepped down, is NVIDIA the number
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  Speaker 4: one CEO in America?
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  Speaker 2: He's always been my number one. So... Always.
• 0:29
  Speaker 4: Profit margin, ecosystem, the development, the drive is.
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  Speaker 2: Second to none. So for sure, for me, it's NVIDIA.
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  Speaker 2: I think it's NVIDIA as well.
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  Speaker 1: But I think people misunderstand and kind of don't give
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  Speaker 1: Broadcom its justice. I agree a thousand percent. It's a
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  Speaker 1: very important company, right? What NVIDIA does in GPUs. Broadcom
• 0:56
  Speaker 1: has said, OK, if you can't afford that, what we
• 0:59
  Speaker 1: can do for you, Meta, is we can make you
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  Speaker 1: an XPU, right? We can make you your own, right?
• 1:05
  Speaker 1: We can make it for you. You can put whatever
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  Speaker 1: you want and you can use it. You're seeing a
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  Speaker 1: lot of companies do that, right? Even Google, which is
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  Speaker 1: a partner of them now, Broadcom has fallen back because
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  Speaker 1: they're for guidance. And again, $ 100 billion is what they
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  Speaker 1: said they're going to do. Wall Street wanted to hear
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  Speaker 1: them say they were going to do $ 110 billion.
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  Speaker 2: OK, understood.
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  Speaker 1: But the demand has not changed. Google, the headline was
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  Speaker 1: that they were, you know, not going to be partners
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  Speaker 1: with them anymore. They actually just went to number two.
• 1:36
  Speaker 1: This wasn't a big deal. I think what, and this is,
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  Speaker 1: this is the genius of Jensen. Their natural competitor and
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  Speaker 1: not by size yet or market cap is Marvell because
• 1:47
  Speaker 1: both companies make custom silicone chips. If you listen to
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  Speaker 1: when Jensen spoke at, at, at, earnings at the summit.
• 1:57
  Speaker 1: He said the next trillion dollar company was going to
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  Speaker 1: be who?
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  Speaker 2: Marvell. Was he putting some extra on that? Well, why
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  Speaker 2: is he saying it? He's saying, look, I know my
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  Speaker 2: competitor over there does that.
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  Speaker 1: Yeah. I'm going to partner with the company that's doing
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  Speaker 1: what they're doing. I'm not going to say, hey, we're
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  Speaker 1: going to do exactly what you do. I'm going to
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  Speaker 1: find a company that does. I'm going to partner with
• 2:19
  Speaker 1: them and I'm going to give them this cosign. Come
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  Speaker 1: on stage with me. We're already partnering. but you're going
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  Speaker 1: to be the next trillion dollar company. And tell us
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  Speaker 1: what that move is like to tie back into the book,
• 2:30
  Speaker 1: getting rich from relationships. Since that's a competitor, why was
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  Speaker 1: that a great move to highlight them as opposed to
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  Speaker 1: demeaning them and tearing them down?
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  Speaker 2: Because I think that's a valuable lesson.
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  Speaker 1: Yeah. Well, if I know I have your backing from
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  Speaker 1: the number one company, the king of this AI story,
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  Speaker 1: if they have their backing and they have their partnership,
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  Speaker 1: potentially they have their resources. What does that say for
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  Speaker 1: my competitor? I got to go out and find more
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  Speaker 1: clients because they're Their demand's so high. They have 75%
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  Speaker 1: of the GPU market, right? How do I now get
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  Speaker 1: edge on them, right?
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  Speaker 3: He's invested.
• 3:01
  Speaker 2: I'm talking about Hot 10. Hot 10. Shoddy.
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  Speaker 3: Okay, now Shoddy, to your point.
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  Speaker 2: Hot 10, I broke down.
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  Speaker 5: Well, we talked about the NVIDIA ecosystem of the companies
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  Speaker 5: that he's actually invested in. And Marvell, that's a company
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  Speaker 5: that they've actually have equity stake in. So it's like, okay,
• 3:20
  Speaker 5: at a certain point in time, The music business, what
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  Speaker 5: the model was in a rap standpoint is that the
• 3:26
  Speaker 5: rapper gets hot, then the rapper gets a label, then
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  Speaker 5: the rapper does features on other artists, then makes them hot.
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  Speaker 5: So that's what Lil Wayne did for Drake and Nicki Minaj.
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  Speaker 5: That's what Jay-Z did for Freeway and Beanie Siegel and
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  Speaker 5: Memphis Bleak, even Kanye to a degree. Everybody did the
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  Speaker 5: same thing. So, I mean, Jensen... saying that this is
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  Speaker 5: going to be the next trillion dollar company. We said
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  Speaker 5: it with that. I mean, he's in a position to
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  Speaker 5: move markets, whatever he says. It's like him, Elon Musk, there's.
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  Speaker 3: A few people that can actually just move the market.
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  Speaker 5: They've invested in over, what, 10,000 companies?
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  Speaker 3: It's not just NVIDIA. It's the NVIDIA ecosystem that.
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  Speaker 5: They benefit from if their companies do well, that they're
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  Speaker 5: invested in, and then They're going to do well because
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  Speaker 5: they invested in the company.
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  Speaker 3: So then that's going to benefit the parent company.
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  Speaker 4: And it helps the entire ecosystem if Marvell goes up to,
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  Speaker 4: let's say, 400. There's demand internationally that they can't take
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  Speaker 4: care of, but they've already set it up for Australia
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  Speaker 4: to then go to Marvell.
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  Speaker 1: And it's brilliant because they're looking at the space and
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  Speaker 1: they're saying GPUs is what we're known for, hardware and
• 4:40
  Speaker 1: software is what we do. We talked about the CUDA platform.
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  Speaker 1: We don't do custom ASIC. Our competitor does that. Let
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  Speaker 1: me find a company that does it. Invest in them.
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  Speaker 1: They're touching bases on all aspects of it. And we
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  Speaker 1: talked about this over and over, whether it was from photonics,
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  Speaker 1: whether it was from infrastructure, from energy. Now here you're
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  Speaker 1: talking about Custom Asics. That's our company. We're going with them.
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  Speaker 1: Next trillion dollar company is right here. We watched that
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  Speaker 1: company shoot up to 390.
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  Speaker 2: We were part of that.
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  Speaker 4: And it goes back to your point about Peter Thiel
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  Speaker 4: saying competition is for losers. The real strategy is, like
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  Speaker 4: you said, to build an ecosystem where you can direct,
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  Speaker 4: you're almost like a toll road where you can direct
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  Speaker 4: the flow of traffic and send business out, you're still
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  Speaker 4: getting a VIG on the business that's not even coming
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  Speaker 4: to you. So it's a brilliant shot. That's when people
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  Speaker 4: are like, I'm short in video. I'm like, they have
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  Speaker 4: their hand in every company that matters now and the
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  Speaker 4: companies that are going to matter over the next 10 years.
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  Speaker 3: Only losers want to compete.
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  Speaker 5: And if you look at Mark Zuckerberg, another legend in
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  Speaker 5: our time, he never really competed with anybody. His strategy
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  Speaker 5: was just to try to destroy and buy, buy companies. So, or,
• 5:45
  Speaker 5: or take the model. And just do it at a
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  Speaker 5: higher level and then squeeze them out. But it was
• 5:51
  Speaker 5: never like a thing of like, I'm trying to really,
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  Speaker 5: you know, go toe to toe with Snapchat or Vine or,
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  Speaker 5: you know, any of these companies. Like, you know, it
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  Speaker 5: was like the idea of competition is for people that.
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  Speaker 3: Want to compete. But why would you want to compete?
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  Speaker 1: You know, that's the analogy is so good. And it
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  Speaker 1: makes you think of let's just take NVIDIA and we'll
• 6:18
  Speaker 1: go to the next day. So that after, but when
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  Speaker 1: you hear a deep seek or you hear like a company,
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  Speaker 1: we don't think of it like that.
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  Speaker 2: Right.
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  Speaker 3: Right.
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  Speaker 1: That's a small competitor. I don't have to compete with you.
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  Speaker 1: I can crush you. I have the capital. I have
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  Speaker 1: the bandwidth and I have the network. But when we,
• 6:35
  Speaker 1: we hear, Hey, they're building their own GPO. It's like,
• 6:39
  Speaker 1: Oh my gosh, we watched these companies pull back. Well,
• 6:41
  Speaker 1: why people don't understand it. It's that same mentality. Like,
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  Speaker 1: The level of capital that these companies have, the Broadcoms
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  Speaker 1: of the world, the videos of the world, it's tough
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  Speaker 1: to compete.
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  Speaker 3: You either win or you lose. There's no in between.
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  Speaker 5: Maybe the closest thing that we have is Magic and Bird,
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  Speaker 5: but for the most part, Michael Jordan didn't compete with
• 7:01
  Speaker 5: the Pistons. Michael Jordan didn't compete with anybody.
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  Speaker 3: After he beat them. Exactly, but you look at totality.
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  Speaker 3: He won.
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  Speaker 5: Muhammad Ali really didn't compete with, no disrespect, he didn't
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  Speaker 5: compete with Joe Frazier.
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  Speaker 3: He beat him one time, but Mike, he won the series. Right.
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  Speaker 3: So he, he won.
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  Speaker 5: So it's like, I think people have a false narrative
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  Speaker 5: about the, the honor and like, Oh, this is, this
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  Speaker 5: is great competition. Even in kids, youth, there's no competition.
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  Speaker 5: You got team. Somebody is going to be a winner.
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  Speaker 5: Somebody is going to be a loser. You compete as
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  Speaker 5: far as like you, but the idea of like, well,
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  Speaker 5: we gave it our all and we competed in this,
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  Speaker 5: this competition is going to be lost.
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  Speaker 3: It's going to make us all better.
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  Speaker 5: No, it's going to, Iron sharpens iron. No, iron destroys
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  Speaker 5: weaker iron. Somebody's going to lose and somebody's going to win.
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  Speaker 2: That's it.
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  Speaker 4: Really quick on NVIDIA. Gross margin, 74.7%. A multi-trillion dollar company. 65%
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  Speaker 4: operating margin, 63.7% net, 41.9% free cash flow margin. As
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  Speaker 4: great as Bill Gates was in a monopoly that he created.
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  Speaker 4: They didn't have these numbers by a third.
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  Speaker 1: No.
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  Speaker 2: It's not even fucking close.
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  Speaker 5: I just got a call. I just got a text
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  Speaker 5: from the campaign, by the way.
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  Speaker 2: Okay.
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  Speaker 3: Speaking of competition.
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  Speaker 2: Broadcom case. Broadcom case study this week, y'all.
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  Speaker 3: You're a funny dude.
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  Speaker 2: You're a funny dude. Yo, this is a good one.
• 8:38
  Speaker 2: This is a good one. That was like, I felt
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  Speaker 2: like people, that was an obvious. Yeah, that was an
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  Speaker 2: easy one.