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Sam Dickie: Fisher Funds expert on Nvidia reporting its latest quarterly results · Best of Business

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  Speaker 1: You're listening to a podcast from News Talks'd be follow
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  Speaker 2: Now the most valuable company on Earth, in Video has
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  Speaker 2: reported its quarterly numbers in the past few hours. Every quarter,
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  Speaker 2: this is treated as one of the single biggest events
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  Speaker 2: in global market. Sam Dickey from Fisher Funds joins us.
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  Speaker 2: Now Hi, Sam, hey, ed, Okay, what was the result?
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  Speaker 3: How was the result? How was it different this time round?
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  Speaker 4: It's I didn't think I'd ever say this, but in
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  Speaker 4: Vidio has become a little bit boringly predictable, sort of
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  Speaker 4: the low octane way to play AI. So they beat
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  Speaker 4: revenue expectations by the customary two and a half billion.
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  Speaker 4: They almost beat by two and a half billion every
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  Speaker 4: quarter and raised next quarter's revenue guidance by the same
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  Speaker 4: two and a half billion. But here's the thing. In
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  Speaker 4: Video has now beaten consensus earnings for fifteen quarters in
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  Speaker 4: a row. But the composition of that beats changing slightly.
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  Speaker 4: So it used to be hardcore computer chips that we're
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  Speaker 4: head of expectations what in Vidia's most well known, But
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  Speaker 4: now it's really the networking business or the business that
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  Speaker 4: wires up all those chips in the data center that's
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  Speaker 4: doing the heavy lifting. So perhaps, just perhaps those competitors
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  Speaker 4: like AMD or even Google or Amazon who make their
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  Speaker 4: own chips now and nibbling away at their hardcore chip
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  Speaker 4: market share at the edges.
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  Speaker 3: Right, So who is buying all of these chips? Is
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  Speaker 3: the customer base changing here?
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  Speaker 4: It is a little bit. So we still have the
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  Speaker 4: traditional buyers. So the big tech giants Microsoft, Meta, Google,
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  Speaker 4: and Amazon, we've talked about their buying of these chips
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  Speaker 4: and related products ballooning to nearly a trillion dollars this year,
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  Speaker 4: But now it's sort of entire countries or sovereigns are
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  Speaker 4: very big buyers and growing faster. So the uk UAE,
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  Speaker 4: Saudi Arabia, Japan governments are all buying chips at scale.
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  Speaker 4: But you've also got the fastest growing cohort being large
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  Speaker 4: corporates in the market buying their own chips to to
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  Speaker 4: train their own AI models.
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  Speaker 3: The China overhang has been a bit of a thing
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  Speaker 3: for in video for a few months. Now. Where are
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  Speaker 3: we at with that?
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  Speaker 4: Yeah, that saga does continue, So take a step back.
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  Speaker 4: Remember the US government restricted what chips and video could
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  Speaker 4: sell into China and last year, for example, in Vidio
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  Speaker 4: wrote off about five billion dollars of chips ear marked
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  Speaker 4: for China because or wrote the inventory off because they
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  Speaker 4: couldn't sell them. And China used to be about twenty
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  Speaker 4: five percent of in Video's data center revenue and that's
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  Speaker 4: collapsed to basically nothing. So given the sort of the
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  Speaker 4: Trump she bromance, well publicized romance over the last week
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  Speaker 4: or so, the market was kind of waiting with baited breath,
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  Speaker 4: waiting for that sort of fifty billion dollar a year
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  Speaker 4: market to be reopened. But as of today, no change,
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  Speaker 4: nothing in the numbers for China.
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  Speaker 3: Okay, So what does this all mean for investors?
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  Speaker 4: Then? I think in Video management has, of course, we know,
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  Speaker 4: done an incredible job full stop, but they are also
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  Speaker 4: doing an excellent job of dialing down the volatility in
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  Speaker 4: the stock. So their expectations management is superb. They always
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  Speaker 4: underpromise and slightly over deliver, and what that means is
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  Speaker 4: the average daily volatility of the stock is less than
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  Speaker 4: half some of its more leary peers, like Intel, for example.
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  Speaker 3: It's good to talk to you, Sam, thank you as always,
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  Speaker 3: and we talk again next week. Sam Dickey, Officier funds.
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