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Sam Dickie: Fisher Funds expert on Nvidia's quarterly results going up · Best of Business

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  Speaker 1: You're listening to a podcast from news Talk set B.
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  Speaker 1: Follow this and our wide range of podcasts now on iHeartRadio.
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  Speaker 2: The AI bubble may not be popping anytime soon if
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  Speaker 2: you have a look at what's just happened to Nvidio.
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  Speaker 2: The latest quarterly results smashed expectations off the back of
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  Speaker 2: fierce demand for its chips to power the AI. It
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  Speaker 2: recorded revenue of a tick over fifty seven billion US dollars.
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  Speaker 2: It's a twenty two percent jump from the previous quarter.
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  Speaker 2: And Sam Dickey from Fisher Funds is with us. Hello Sam,
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  Speaker 2: Hello Heather. Now what did you make of this result
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  Speaker 2: and what did we learn about the broad health of
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  Speaker 2: AI as a result of it?
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  Speaker 3: Yeah, I mean you said it was another stonking result
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  Speaker 3: from the biggest company on Earth. So revenue and earnings,
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  Speaker 3: we already saw pretty lofty or inflated expectations, but they
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  Speaker 3: beat expectations by about three percent for the quarter, and
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  Speaker 3: critically they guided forecast revenue and profit to beat the
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  Speaker 3: expectations by even more, about four to five percent. So,
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  Speaker 3: as you said, there was fairly palpable fear for the
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  Speaker 3: last I'd say probably ten trading sessions in the market
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  Speaker 3: of the AI bubble was bursting, and this has at
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  Speaker 3: the very least temporarily calmed the market. So we saw
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  Speaker 3: that play out after market in videous years jump five percent,
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  Speaker 3: and any stock it even smells like it is exposed
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  Speaker 3: to AI, they rarely pretty hard. So Applied micro Devices, Oracle, Broadcom, Google, Amazon, Meta,
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  Speaker 3: Microsoft all up two to four percent after ours.
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  Speaker 2: Did it calm fears of the bursting of the AI bubble?
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  Speaker 3: Yeah? I think it has, at least temporarily. So you know,
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  Speaker 3: every time he reports, Jensen is getting more and more
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  Speaker 3: granular with with his guidance and his forecasts. He's now
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  Speaker 3: sort of forecasting half a trillion dollars of revenue to
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  Speaker 3: be shipped over the next sort of fourteen months, and
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  Speaker 3: that's getting quite specific, and he has good a line
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  Speaker 3: of sight on that. So I do think this was
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  Speaker 3: a critical resultant for now fears are calmed.
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  Speaker 2: Okay, Now I want to talk about something else as well,
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  Speaker 2: which is the US consumer. Tell me what you make
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  Speaker 2: of the health of the US consumer. If you look
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  Speaker 2: through the eyes of home depot target, you know, that
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  Speaker 2: kind of.
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  Speaker 3: Thing definitely a vastly different story for the all important
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  Speaker 3: US consumer. So those companies were generally or incrementally more cautious.
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  Speaker 3: So Home Depot think of Mino ten or Bunnings on
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  Speaker 3: steroids and one of the biggest retailers in the US said,
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  Speaker 3: consumer uncertainty and continued pressure and housing are disproportionately impacting
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  Speaker 3: home improvement demand. And importantly, while it had been primarily
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  Speaker 3: the lowering consumer that was hurting hither you and I
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  Speaker 3: have talked about that, that is now spreading to the
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  Speaker 3: middle income consumer target the massive general merchandise I said,
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  Speaker 3: consumers are continuing to trade down and he cheekily equipped
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  Speaker 3: about Christmas. He said people will prioritize what goes under
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  Speaker 3: the tree rather than spending unnecessarily on what goes on
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  Speaker 3: the tree. And Lowe's competes with Home Depot, while feeling
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  Speaker 3: it a little less said visibility remains poor.
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  Speaker 2: What does this all mean for investors? Do you think?
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  Speaker 3: I think it really shines a clear spotlight on the
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  Speaker 3: extraordinary two speed economy in the US, AI and all
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  Speaker 3: spin related to AI and everything else. So it's a
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  Speaker 3: reminder that a couple of handfuls of AI winners and
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  Speaker 3: the S and P five hundred since chat GPT was
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  Speaker 3: launched in November twenty twenty two. Like the start of
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  Speaker 3: the modern AI bonanza, those stocks have driven seventy five
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  Speaker 3: percent of the gains, and the S and P five
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  Speaker 3: hundred eighty percent of the growth and earnings and ninety
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  Speaker 3: percent of the growth and capital expenditure. And outside of that,
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  Speaker 3: the economy remains or visibility on the economy remains very
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  Speaker 3: very poor.
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  Speaker 2: Hey, thank you very much. Sam has always appreciated and
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  Speaker 2: we'll talk to you again soon. That Sam Dickey Official funds.
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