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Special Edition: Nvidia Forecast Misses Loftiest AI Estimates · Bloomberg Intelligence

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  Speaker 1: Bloomberg Audio Studios, podcasts, radio news third.
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  Speaker 2: Quarter adjusted earnings per share coming in above estimates at
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  Speaker 2: eighty one cents. Estimate was for seventy four cents. Third
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  Speaker 2: quarter at revenue coming in at thirty five point one
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  Speaker 2: billion dollars. Estimates were for thirty three point twenty five
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  Speaker 2: billion dollars third quarter data center revenue. This is what
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  Speaker 2: everybody wants to see that coming in above estimates thirty
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  Speaker 2: point eight billion dollars. The estimate was for twenty nine
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  Speaker 2: point one four billion dollars. Carrol Nvidiac's fourth quarter revenue
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  Speaker 2: at thirty seven point five billion plus or minus two percent.
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  Speaker 2: The estimate was for thirty seven point one billion dollars.
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  Speaker 3: Gotta say, initial reaction, folks, not an upbeat one. Kunjan
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  Speaker 3: Zabani of our Bloomberg Intelligence Senior semi conductor team, he's
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  Speaker 3: an analyst. And then we're going to want to bring
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  Speaker 3: in another guest to kind of give us some more
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  Speaker 3: thoughts about what we got from video today.
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  Speaker 2: Yeah, Caroline Hyde, who hosts Bloomberg Technology on Bloomberg TV,
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  Speaker 2: is joining us now. She's got our eyes closely watching
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  Speaker 2: everything happening over ed in video that forecasts failing to
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  Speaker 2: meet the loftiest estimates for the company cheers in the
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  Speaker 2: after hours right now down about four percent, so they're
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  Speaker 2: off of those lows, Caroline, But is this just about
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  Speaker 2: high expectations, very high expectations and in Nvidia coming out
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  Speaker 2: and saying Okay, we're almost going to meet them, but
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  Speaker 2: not quite.
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  Speaker 4: And a very high market valuation that is the most
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  Speaker 4: valuable in the world, that has seen a run up
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  Speaker 4: of almost two hundred percent so far in the years.
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  Speaker 4: So maybe some profit taking when you are seeing, Yes,
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  Speaker 4: Luke Capital, if you dig into the analysts expectations for
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  Speaker 4: the fiscal fourth quarter or twenty twenty five, Luke Capital
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  Speaker 4: had it at about forty four billion dollars as the
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  Speaker 4: highest realm.
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  Speaker 5: Then you had few one and securities at about forty one.
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  Speaker 4: Billion, and then you get into the thirty seven billion
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  Speaker 4: dollar range with the likes of Craig Hullum and Da
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  Speaker 4: Davidson was a little bit above that. So compared to
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  Speaker 4: perhaps some of the highest levels out there, they're coming
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  Speaker 4: in below and there's a plus or minus two percent
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  Speaker 4: there to be built in as well. So I think
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  Speaker 4: there is some digesting that this isn't beaten raised and
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  Speaker 4: blown out of every single analysts expectations.
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  Speaker 5: Still, these are incredibly strong numbers.
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  Speaker 4: This is a guide to the fact that we're getting
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  Speaker 4: Blackwell on stream. That supply side will be ironed out,
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  Speaker 4: and I think we'll have far more from Gensen hung
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  Speaker 4: on that particular perspective, and that demand is still incredible.
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  Speaker 4: So I think there's just a little bit of profit
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  Speaker 4: taking coming on. When we've seen that the rapid rise
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  Speaker 4: has been two hundred percent over the year, maybe four
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  Speaker 4: or five percent sell down isn't the most remarkable.
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  Speaker 3: Shift, Caroline Great point, right, it's not Reay yet. Well,
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  Speaker 3: you know, listen, this is her world that she's talking
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  Speaker 3: to these you know, tech companies, following them inside and outside,
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  Speaker 3: and this idea that there's still supply, that there's demand,
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  Speaker 3: it's just the supply constraints. It's not like people are
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  Speaker 3: running away from the products. Having said that, I want
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  Speaker 3: to tap into your knowledge of this industry and that
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  Speaker 3: you do have companies that come out and it's gangbusters,
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  Speaker 3: and then maybe they have some issues with supply constraints
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  Speaker 3: and so on and so forth. This is kind of
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  Speaker 3: part of the process. Is that fair?
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  Speaker 4: I think that's fair when it comes to in Video
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  Speaker 4: as well, and the rapid rate of innovation. I mean,
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  Speaker 4: they've almost become an Apple in every single year they're
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  Speaker 4: bringing out their latest neww chip set and design, and
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  Speaker 4: we go from Hopper swiftly on to Blackwell, and people
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  Speaker 4: have got to keep up with that innovation.
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  Speaker 5: Just the way in which you store your.
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  Speaker 4: Chips and the infrastructure within your data centers means that
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  Speaker 4: if they're vertically stored, well, that's going to lead to
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  Speaker 4: more heating issues. Then if you're doing it more broadly
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  Speaker 4: on a horizontal perspective. There is a lot of innovation
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  Speaker 4: that has to come along with in Video's own GPU
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  Speaker 4: CPUs and overall chipsets. So I think that they have
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  Speaker 4: said and guided to the market that yes, you're getting
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  Speaker 4: this reporting of overheating, Yes you're getting these reports of
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  Speaker 4: snags and design. This is entirely normal, and we're working
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  Speaker 4: very closely with our hyperscale sub clients to fix this,
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  Speaker 4: to innovate with them and ensure that we can get
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  Speaker 4: them out there as swiftly as possible. I think there
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  Speaker 4: has been also just trying to spreading out of AI demand.
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  Speaker 4: What's been interesting hearing from Jensen Wong of late has
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  Speaker 4: been the scaling laws. Basically, the theory goes is that
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  Speaker 4: the more data you fire, the more compute power you bring,
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  Speaker 4: the faster and more sophisticated.
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  Speaker 5: These large language models become.
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  Speaker 4: But actually we started to hear from the anthrop from
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  Speaker 4: the great reporting coming out of San Francisco with the
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  Speaker 4: Bloomberg team that Rachel Mets is saying maybe open aiyes
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  Speaker 4: had to slow down a little bit in terms of
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  Speaker 4: the developments of their own large language models because they're
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  Speaker 4: not getting as sophisticated as it happen in the Leaps
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  Speaker 4: and Bounds. Jensen still saying, Look, in the next decade,
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  Speaker 4: you're going to see a million times increase in compute.
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  Speaker 4: But we've just got to get there in terms of
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  Speaker 4: actually making it happen.
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  Speaker 2: Yeah, I mean, hard to even imagine, hard to even
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  Speaker 2: imagine that kind of increase in compute at this point,
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  Speaker 2: Kun john'subney, I want to bring you back in here
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  Speaker 2: over a senior intell senior analysts over at Bloomberg Intelligence.
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  Speaker 2: We're seeing shares down about two percent in the after hours.
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  Speaker 2: A couple headlines the company sees fourth quarter revenue coming
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  Speaker 2: in at thirty seven point five billion dollars plus or
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  Speaker 2: minus two percent. That's pretty much in line with estimates
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  Speaker 2: at thirty seven point one billion dollars. Third quarter Data
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  Speaker 2: center revenue blowing past expectations at thirty point eight billion
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  Speaker 2: dollars estimates report twenty nine point one billion dollars Coon, John,
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  Speaker 2: what's the question you'd ask, Jensen Wong?
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  Speaker 6: I mean, my questions really would focus on trying to
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  Speaker 6: figure out the physical twenty six calendar twenty twenty five
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  Speaker 6: black Well revenue ramp magnitudes and around gross margins. I mean, look,
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  Speaker 6: we have seen in the past when vidias come out
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  Speaker 6: and beat way more than what they did right now,
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  Speaker 6: and the stock has still plummeted double digits. You also
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  Speaker 6: have to keep in mind this end of the year.
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  Speaker 6: The stock has tripled this year, right, so there is
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  Speaker 6: some incentive for profit locking and taking the gains away
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  Speaker 6: from the table as well.
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  Speaker 3: You know, I also do think about how do you feel, Kunjon,
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  Speaker 3: that they are giving numbers for fiscal year twenty twenty
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  Speaker 3: six good sign? Do you trust that visibility? Like, how
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  Speaker 3: do you think about their ability to put out a
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  Speaker 3: number and maybe that number might change based on if
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  Speaker 3: they figure out the supply issues.
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  Speaker 6: I mean, I see that as a very strong sign
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  Speaker 6: I mean, look at this earning season across the semi
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  Speaker 6: sector right nobody is giving out numbers that far out.
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  Speaker 6: Even in Vida's competitors who are trying to address the
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  Speaker 6: same opportunity and are sing the same strong demand signals,
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  Speaker 6: are not giving out numbers, strong confident numbers that in
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  Speaker 6: year out. So that really speaks to the strength and
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  Speaker 6: the confidence that they have that they'll be able to
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  Speaker 6: support this demand and the demand is there, and you guys, it'd.
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  Speaker 3: Be tech talk to him a lot, like I'm just
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  Speaker 3: curious with the top of mind, if you were sitting
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  Speaker 3: down with him right now, like top two.
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  Speaker 4: Questions, and if Ed Ludlow was but he's out in
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  Speaker 4: fraternity leaves and congratulations.
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  Speaker 5: To on Ed Ludler becoming a father.
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  Speaker 4: But I think first and foremost we'd be asking exactly
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  Speaker 4: as Kuan Jhn has been saying, as you all have
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  Speaker 4: been saying, it's got to be about supply coming on
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  Speaker 4: tap and just talking a little bit more around Blackwell
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  Speaker 4: and the incredible demand, What exactly does that really mean?
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  Speaker 5: Who are the key clients?
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  Speaker 4: How are we seeing that diversify out of the main
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  Speaker 4: hyper scalers, if.
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  Speaker 5: At all, and then I think sort of trying.
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  Speaker 4: To articulate that, look, yes, maybe we haven't blown past
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  Speaker 4: the highest analyst expectations, but thirty seven and a half
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  Speaker 4: billion dollar guide that's still seventy percent ramp up in revenue.
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  Speaker 4: That's following a ninety percent ramp up in revenue of
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  Speaker 4: the fiscal quarter just reported their fiscal third quarter. I
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  Speaker 4: think he's just going to have to sort of remind
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  Speaker 4: the market how far they've come, how far they've still
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  Speaker 4: to go, and maybe just take a bit of a
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  Speaker 4: reality check here that you know, at the moment, the
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  Speaker 4: numbers will go up, but maybe not at the two
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  Speaker 4: hundred percent that we were hoping to see well, that
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  Speaker 4: we did see in the first quarter of twenty twenty
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  Speaker 4: five for their fiscal year reporting.
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  Speaker 2: Hey coon, John ian King on the live blog bringing
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  Speaker 2: up a really interesting point, and it kind of gets
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  Speaker 2: at the question that I was asking with regard to
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  Speaker 2: super micro computer. Ian notes that cloud computing providers are
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  Speaker 2: the biggest companies in technology, and they still dominate in
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  Speaker 2: videous sources of revenue, making up fifty percent of sales
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  Speaker 2: for its data center unit. So that's just a handful
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  Speaker 2: of companies that are making up the majority of the
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  Speaker 2: revenue for the data center in video watchers want that
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  Speaker 2: number to go down. Three months ago that number was
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  Speaker 2: forty five percent. Is that a concern to you.
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  Speaker 6: I mean, I don't want to look at it from
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  Speaker 6: quarter to because remember these large customers are lumpy in nature, right,
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  Speaker 6: they have to also manage their capex and deployments. We
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  Speaker 6: did see over the last two to three quarters, if
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  Speaker 6: I'm not wrong, the number come down. It was about
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  Speaker 6: close to fifty or even about fifty and it has
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  Speaker 6: been coming down steadily. So that was a good sign
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  Speaker 6: for us. I still have to go and digest the
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  Speaker 6: numbers later on, but the fifty percent in the short
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  Speaker 6: term might not be that great of a sign. But
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  Speaker 6: I would not jump to conclusions just looking at one quarter.
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  Speaker 6: It could be very well timing of you know, them
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  Speaker 6: picking up a lot more Hopper supply supply right now
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  Speaker 6: when they cannot get their hands on blackwell.
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  Speaker 3: You know, I'm looking at the supply chain analysis on
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  Speaker 3: the Bloomberg function. When it comes to Nvidia, Microsoft, about
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  Speaker 3: nineteen percent of the revenue for Invidio, Meta, about ten percent,
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  Speaker 3: super Micro nearly eight percent Alphabet about six percent, Amazon
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  Speaker 3: more than five percent, Dell more than three percent. So
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  Speaker 3: we talk about a handful of companies, these cluster of
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  Speaker 3: companies that are so involved. You know, Caroline, I want
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  Speaker 3: to bring you back in here. You know, Nvidia. This
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  Speaker 3: has been such a focal point right the end of
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  Speaker 3: the earning season, just thinking about it so much. You know,
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  Speaker 3: how do you think about you know, Bloomberg Technology, you know,
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  Speaker 3: into the Thursday edition, you guys when you're on air
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  Speaker 3: and like, what's the tomorrow's story?
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  Speaker 5: The tomorrow story.
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  Speaker 4: I think we'll be trying to articulate where the growth
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  Speaker 4: trajectory goes from here. I think we're gonna hear from
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  Speaker 4: Jensen the next decade. You're gonna hear him talking about
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  Speaker 4: humanoid robots. You're gonna hear him talking about drug discovery,
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  Speaker 4: the capabilities of generative AI, the return on AI investment.
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  Speaker 4: So I think we're gonna want to be talking to
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  Speaker 4: the investors that back that vision. We're going to be
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  Speaker 4: wanting to hear from the analysts out there that are
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  Speaker 4: trying to square these numbers with where their own viewpoint
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  Speaker 4: have been on the here and now at the fiscal
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  Speaker 4: fourth quarter. But I think we're also going to we
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  Speaker 4: want to think about who else is in the space
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  Speaker 4: at the moment. It's answering some of the development issues,
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  Speaker 4: some of the heating issues, some of the concerns around AI,
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  Speaker 4: generative AI chip development and manufacturing. Who are the startups
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  Speaker 4: in the space, wh the rivals in the space? What
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  Speaker 4: are we seeing in terms of the hyper scalers building
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  Speaker 4: their own chips. So I think there's so many directions
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  Speaker 4: that we could go for, But for me, it's going
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  Speaker 4: to be really interesting talking about where does AI infrastructure
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  Speaker 4: go from here?
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  Speaker 5: And where does in video's view on selver in AI?
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  Speaker 5: Where does in video's view on China? Where does in videos.
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  Speaker 4: View on the next repurposing of their chips not just
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  Speaker 4: to keep hammering large language models, but the development of
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  Speaker 4: generative AI in the real world.
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  Speaker 2: So what are some of the names, Caroline, that our
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  Speaker 2: investing audience has to have their eyes on. Is it
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  Speaker 2: the sam Altman's of the world who are trying to
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  Speaker 2: raise lots and lots of money to go after Invidia?
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  Speaker 2: Is it the hyperscalers who are going to be doing
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  Speaker 2: this in house? Who who holds a candle to them
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  Speaker 2: or who could hold a candle.
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  Speaker 4: To them in terms of siphoning off future demand or
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  Speaker 4: in terms of just wanting to know who the name
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  Speaker 4: key players are.
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  Speaker 2: Off future demand because you know, Intel, Intel, Intel's in
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  Speaker 2: a tough position right now, as you guys have reported
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  Speaker 2: on a lot over the last year. Am D maybe,
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  Speaker 2: but what about those upstarts.
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  Speaker 4: Hmmm, I mean, and that's going to be interesting as
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  Speaker 4: to whether or not we just get a future type
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  Speaker 4: of chip development. You know, we've got the grocks for example,
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  Speaker 4: that are backed by venture backing who have been looking
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  Speaker 4: to ways in which we expand and have faster and
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  Speaker 4: more efficient chips. You've also got you know, different players
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  Speaker 4: out there thinking about not just the data that you
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  Speaker 4: have to train, but then the inferencing that you do,
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  Speaker 4: and that does that become a different type of conversation
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  Speaker 4: around the technology and ultimately whether you need to have
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  Speaker 4: more efficient chips within an energy source and an energy suck.
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  Speaker 4: So I think so many people AMPI has been doing
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  Speaker 4: things around that particular innovation of different types of chips. Eventually,
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  Speaker 4: will people start to go to Galdhi and what Intel
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  Speaker 4: has been providing. How much can AMD chip away in
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  Speaker 4: terms of market share, in terms of the AI part
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  Speaker 4: of the business as well. So there are so many
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  Speaker 4: people and analysts and investors that are looking at distributing.
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  Speaker 5: Some of their bets.
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  Speaker 4: I'm sure, but for now in video has been the
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  Speaker 4: only game in town and certainly the easiest one to
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  Speaker 4: back in terms of up into the right Coon.
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  Speaker 3: Jent, I want to bring you back in here looking
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  Speaker 3: at our live blog. Ian King, who follows the semiconductor
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  Speaker 3: space and video as well. He says, one question analyst
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  Speaker 3: will have when the conference call begins, what's happening in
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  Speaker 3: networking sales? And that business slid sequentially dropping by that
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  Speaker 3: five hundred million dollars and videos acquired. Networking tech has
• 12:19
  Speaker 3: faced opposition from many rivals, some of which argue for
• 12:22
  Speaker 3: an industry standard approach rather than a reliance on and
• 12:24
  Speaker 3: vidious proprietary technology. Weigh in on that, yeah, I.
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  Speaker 6: Mean, look, we have identified since last year that networking
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  Speaker 6: in AI servers is going to be sort of the
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  Speaker 6: next wave of growth, especially in terms of where the
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  Speaker 6: dollars spend. The dollars go beyond just accelerators. So I mean,
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  Speaker 6: until now in media, if you look at the market
• 12:45
  Speaker 6: for the first Hopper series, right, they had this advantage
• 12:48
  Speaker 6: of shipping their own proprietary networking gear, which customers had
• 12:51
  Speaker 6: no other option but to just buy that. So two things, right,
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  Speaker 6: They got all the dollars, but they also got great
• 12:56
  Speaker 6: profit margins because they could really charge whatever they wanted. Now,
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  Speaker 6: the competition there is increasing. Customers want to move to Ethernet,
• 13:05
  Speaker 6: which again Nvidia has started offering and starting from the
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  Speaker 6: black Bell series. So we are going to see that
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  Speaker 6: Ethernet revenue also increase for Nvidia, But when you compare
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  Speaker 6: it from perchip dollar perspective, it's still less. We still
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  Speaker 6: think positive for Nvidia's networking revenue share going forward, but
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  Speaker 6: there will be a lot more competition there. It won't
• 13:26
  Speaker 6: be just one company taking everything in your area.
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  Speaker 3: That's a really good point, right, And I do think about,
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  Speaker 3: you know, and Videa's really had this world to its
• 13:32
  Speaker 3: own for a while, and you think about increasingly kind
• 13:36
  Speaker 3: of what's going on in the future as there's more competition.
• 13:39
  Speaker 3: YouTube Dynamic Duo, thank you so much. Your insight really
• 13:44
  Speaker 3: so important to breaking down these results from Nvidia. Bloomberg
• 13:47
  Speaker 3: Technology co host Caroline Hidketcher at eleven am Wall Street
• 13:50
  Speaker 3: Time on Bloomberg Television for Bloomberg Tech and of course
• 13:53
  Speaker 3: our thanks to ku Joan Sabani of our Bloomberg Intelligence team.
• 13:56
  Speaker 3: He's a senior semiconductor analyst. So again, some great insight
• 13:59
  Speaker 3: we'll watch for some of you research. Let's continue our conversations.
• 14:03
  Speaker 3: Bloomberg News Equities reporter at Ryan Lostelico with us. He
• 14:06
  Speaker 3: has been writing about it and kind of you know,
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  Speaker 3: talking about markets bracing for what we might get from Nvidia.
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  Speaker 3: He joins us from Chicago. Also with us is our
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  Speaker 3: own Red Brown, who follows the earning season and sets
• 14:17
  Speaker 3: us up. Bloomberg News Earnings reporter. He's back in New
• 14:19
  Speaker 3: York City. Ryan, come on in on this your report.
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  Speaker 3: Ahead of the release in Nvidia, traders bracing for a
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  Speaker 3: potential three hundred billion dollar earnings move. It was down
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  Speaker 3: more than four percent though initially.
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  Speaker 1: Yeah, absolutely, I don't think it would be all that
• 14:32
  Speaker 1: surprising to see the stock really take some swings from
• 14:34
  Speaker 1: where it's trading right now. I mean, this is not
• 14:37
  Speaker 1: a huge move, especially not for our company as viollatile
• 14:39
  Speaker 1: as Nvidia is. Just to put it in context. Palo
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  Speaker 1: Alto also reported that stock is at about five percent
• 14:44
  Speaker 1: and after hours trading in video is obviously much bigger,
• 14:48
  Speaker 1: but you know, not a huge move by their standard.
• 14:50
  Speaker 2: I like that Ryan's out here talking about Pallelt the networks.
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  Speaker 2: It's a good well there is Look, there are other
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  Speaker 2: companies out.
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  Speaker 3: There, no question, but listen, we're gonna get you in
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  Speaker 3: just a moment. But Ryan, I mean, it's been so
• 15:03
  Speaker 3: important in terms of market momentum, right, Like, give us
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  Speaker 3: some of that context. We talk about it all. We've
• 15:07
  Speaker 3: talked about the mag seven, but when it comes to
• 15:10
  Speaker 3: momentum that aid this is a big one.
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  Speaker 7: Yeah.
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  Speaker 1: Oh absolutely. The stock is almost tripled this year. It's
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  Speaker 1: added more than two trillion in market capitalization. Like you mentioned,
• 15:18
  Speaker 1: it's the biggest stock in the world. You know, We've
• 15:20
  Speaker 1: had plenty of analysts come out and say this is
• 15:22
  Speaker 1: more important than the FED, this is more important than
• 15:24
  Speaker 1: inflation data. This is the key report for Wall Street
• 15:27
  Speaker 1: this week, if not this month. So it's obviously very significant.
• 15:30
  Speaker 1: I do think, you know, we just got the numbers.
• 15:32
  Speaker 1: People are still digesting the report. We are still waiting
• 15:34
  Speaker 1: on the conference call. It's likely we're going to get
• 15:36
  Speaker 1: a bigger move maybe, you know, once we get you know,
• 15:39
  Speaker 1: full details, once we hear from you know, the management
• 15:41
  Speaker 1: team once people get a little bit more context for this.
• 15:44
  Speaker 1: But this is certainly not, you know, a sky is
• 15:46
  Speaker 1: falling type report. It's falling short of some of the
• 15:48
  Speaker 1: most optimistic expectations. But you know, people just got very
• 15:51
  Speaker 1: used to forecasts that are just, you know, billions dollars
• 15:54
  Speaker 1: above the consensus.
• 15:55
  Speaker 3: Carmen Ryanick here, stocks reporter on our live blog, digging
• 15:58
  Speaker 3: into the plus or minus two percent on the revenue
• 16:00
  Speaker 3: outlook that we got from Video a little math, doing
• 16:03
  Speaker 3: some quick math, it means and Video expects fourth quarter
• 16:05
  Speaker 3: revenue between thirty six points seventy five billion and thirty
• 16:08
  Speaker 3: eight point twenty five billion. The average analyst estimate was
• 16:10
  Speaker 3: thirty seven point one billion. So if it's on the
• 16:13
  Speaker 3: minus two percent, it would fall short of expectations. And
• 16:16
  Speaker 3: I think that's why you are seeing investors, at least
• 16:18
  Speaker 3: in the aftermarket, wanting a little bit more color or
• 16:21
  Speaker 3: commentary around this.
• 16:23
  Speaker 2: Okay, so Red Brown, come on in here, because you've
• 16:24
  Speaker 2: got your eye on what's going on after hours and
• 16:27
  Speaker 2: Video shares down about two percent? Is that what it is?
• 16:30
  Speaker 2: Is that concern around that plus or minus two percent?
• 16:33
  Speaker 7: Yeah, I think it kind of has to be the
• 16:36
  Speaker 7: main focus for everybody right now, you know sound it
• 16:40
  Speaker 7: felt like analysts maybe weren't as kind of euphoric heading
• 16:43
  Speaker 7: into this report. Things definitely war more tempered, So I
• 16:45
  Speaker 7: guess it isn't that much of a surprise to see,
• 16:48
  Speaker 7: you know, stock kind of trading a little bit less
• 16:51
  Speaker 7: volatile than it has in recent quarters. I was also
• 16:53
  Speaker 7: just looking at some of the customers because we don't
• 16:56
  Speaker 7: read Ryan's point just how important this is for the
• 17:00
  Speaker 7: wider market. And you know, Microsoft and Meta, two of
• 17:03
  Speaker 7: their biggest customers, both not really reacting as well.
• 17:05
  Speaker 3: So so what are you read watching out for? Listen,
• 17:09
  Speaker 3: you are with us throughout the whole earning season. It's
• 17:12
  Speaker 3: been it feels like a long one, you know. But
• 17:15
  Speaker 3: here we are with Nvidia, which is such a huge
• 17:17
  Speaker 3: one in terms of the reporting season, and you know
• 17:20
  Speaker 3: what we get from Nvideo. But you know, how are
• 17:22
  Speaker 3: you thinking about it as we were kind of reporting
• 17:24
  Speaker 3: into it and now we are on the other side,
• 17:26
  Speaker 3: and there's still some questions to be had that will
• 17:28
  Speaker 3: hopefully play it on the analyst call, but you know,
• 17:32
  Speaker 3: walk us through it in an earning season, you know
• 17:34
  Speaker 3: how this kind of fits in, especially against some of
• 17:37
  Speaker 3: those MAGS seven, those very important big tech names.
• 17:40
  Speaker 7: I think one thing that I'm looking at for and
• 17:43
  Speaker 7: Vidia specifically and kind of how it fits into the
• 17:45
  Speaker 7: wider landscape is actually the R and D spending. So
• 17:48
  Speaker 7: if we look and actually grow forty eight percent, if
• 17:50
  Speaker 7: you compare that to their peers, super Micro forty five
• 17:53
  Speaker 7: percent up this quarter, Broadcom jump seventy five percent. So
• 17:58
  Speaker 7: when we kind of start to dig in beyond on
• 18:00
  Speaker 7: just the top line numbers, I think a kind of
• 18:03
  Speaker 7: an interesting dynamic is playing out there in video is
• 18:05
  Speaker 7: kind of really expending hand over fist to keep up
• 18:08
  Speaker 7: or to kind of continue to have their their lead
• 18:11
  Speaker 7: in this race, And I think it really helps when
• 18:14
  Speaker 7: you can, you know, double your revenue every quarter as well.
• 18:16
  Speaker 7: That there's that spending three billion dollars on R and
• 18:19
  Speaker 7: D is a little bit easier than it is for
• 18:22
  Speaker 7: a company like Broadcom, which is actually you know, the
• 18:24
  Speaker 7: percentage wise, the margin that they're spending is actually much higher,
• 18:28
  Speaker 7: so that race they are kind of still a distant
• 18:32
  Speaker 7: second compared to in videos, so trying to can maintain
• 18:36
  Speaker 7: that lead that they have in the air space.
• 18:38
  Speaker 2: Hey, Ryan, what about when it comes to blackwell and
• 18:42
  Speaker 2: demand around Blackwell. To what extent is that? The question
• 18:45
  Speaker 2: on the call later it went from insane to incredible.
• 18:49
  Speaker 2: As Caroline Hyde pointed out to us, how are you
• 18:51
  Speaker 2: thinking about it?
• 18:52
  Speaker 7: Yeah?
• 18:52
  Speaker 1: Is that a deceleration to go from insane to incredible?
• 18:54
  Speaker 1: I mean I think, you know, in general demand, I
• 18:57
  Speaker 1: think it is.
• 18:58
  Speaker 3: You tell me, I think it is insane to incredible.
• 19:01
  Speaker 2: Yeah, I think that's a declation.
• 19:02
  Speaker 3: Yeah, we say incredible a lot. We throw that word around.
• 19:05
  Speaker 3: When you say insane, that's like a whole other level.
• 19:08
  Speaker 1: Yeah, fair enough. Obviously, you know, people continue to focus
• 19:11
  Speaker 1: on supply. There have been some you know, production hiccups here.
• 19:14
  Speaker 1: Like I said before, people are focused very much on
• 19:16
  Speaker 1: you know, pricing and margins for Blackwell. So all these
• 19:19
  Speaker 1: things together, you know, this remains like a point of
• 19:21
  Speaker 1: real focus for investors, even kind of beyond just sort
• 19:24
  Speaker 1: of the headline numbers of the forecast and so forth.
• 19:26
  Speaker 3: Guys, thank you so much. Busy afternoon, of course. Bloomberg
• 19:30
  Speaker 3: News Earnings reporter Red Brown out there in New York City.
• 19:32
  Speaker 3: Ryan Lostelica in Chicago. He's Bloomberg News Equities reporter