START-UP WILL DELIVER ANOTHER WINDFALL FOR THAT CHIPMAKER. MAYBE THE WHOLE SPACE OVERALL. JOINING ME AT POST NINE, BERNSTEIN'S ANALYST STACY RASCON GOOD TO SEE YOU IN PERSON. >> THANKS FOR HAVING ME. >> WHEN YOU SEE NVIDIA DO WHAT IT IS DOING, WHAT IS YOUR REACTION >> I THINK YOU HAVE TO BE THERE, RIGHT. I'M NOT SURPRISED IT IS DOING WHAT IT IS DOING, RIGHT. WE HAVE THE NUMBERS A WEEK OR TWO AGO WHENEVER IT WAS THE DEMAND FOR THEIR PRODUCTS IS OFF THE CHARTS YOU HAVE A PRODUCT CYCLE ON IT WAYS THEY TOOK THE AIR POCKET TRANSITION RISK OUT. WHAT IS NOT TO LOVE? >> AT SOME POINT WHEN I TALK TO YOU, THE DAY OF EARNINGS, PRENUMBER, WE WERE I THINK AT 950. >> THAT'S RIGHT. I THINK I TOLD EVERYBODY TO SORT OF RELAX. >> YOU DID. >> THE PHRASE. >> YOU SAID IT WAS GOING TO BE MUNDANE. >> YEAH. >> I MEAN, IT CERTAINLY WASN'T SHOCKING >> TO BE FAIR -- >> MAYBE IT WAS. >> THE NUMBERS WERE -- THEY WERE A GOOD BEAT PROBABLY IN LINE WITH SORT OF THE WHISPER NUMBERS, BUT THEY SAID TWO THINGS THAT WERE HELPFUL ONE IS THEY TOOK THE AIR POCKET TRANSITION RISK AS YOU GO FROM HOPPER TO BLACKWELL OFF THE TABLE, AND THEN NUMBER TWO, I THINK THE COMMENTARY ON THE PACE AND TIMING OF THE BLACKWELL RAMP THE NEXT GENERATION PRODUCT WAS SUPPORTIVE PEOPLE THINKING IT WAS COMING NEXT YEAR, AND HE WAS CLEAR, SAID WE'LL SEE A LOT OF BLACKWELL REVENUE THIS YEAR THE QUOTE. >> DID YOU EXPECT THAT >> I EXPECTED IT NEXT YEAR EARLIER THAN WE THOUGHT. >> IS THAT ONE OF THE REASONS YOU RAISE YOUR PRICE TARGET? >> OUR NUMBERS WENT UP MATERIALLY IT WAS BOTH OF THOSE REASONS, BUT YEAH. >> WHAT DO YOU DO WHEN THE STOCK CONTINUES TO OUT RUN YOU YOU KNOW WHAT I MEAN. >> IT'S NOT OUT RUNNING US YET. >> I MEAN IT'S ON THE VERGE OF OUTRUNNING EVERYBODY AND EVERYBODY'S PRICE TARGET. >> YEAH. >> HOW DO YOU HANDLE THAT? >> WE'VE HAD THIS CONVERSATION DON'T GET HUNG UP ON THE PRICE TARGETS -- I KNOW. >> THE PRICE TARGETS MATTER. PEOPLE LOOK AND ARE LIKE OKAY, NOW WHAT. >> PEOPLE DON'T UPDATE THEIR TARGET PRICES EVERY DAY. FOR NOW LET IT RUN THE STORY IS REALLY GOOD THE NUMBERS ARE GOING HIGHER THE STOCK REMEMBER IT'S NOT LIKE IT'S EXPENSIVE, LIKE IF THE NUMBERS COME IN ANYWHERE CLOSE TO WHERE WHERE I THINK THEY CAN COME IN THE STOCK IS INEXPENSIVE GIVEN THE GROWTH TRAJECTORY. >> WHAT IS THE RISK AT THIS POINT? >> YEAH. >> THE STOCK AT THE HIGHS OF THE DAY, UP 7.2%. >> OKAY. >> WE'RE HAVING THIS ANOTHER $76 DEERS TODAY. >> YEAH. I THINK IN THE NEAR TERM THERE'S NOT A LOT OF NEGATIVE CATALYSTS ON THE WAY AGAIN, WE KNOW THE NUMBERS ARE FINE IN THE NEAR TERM, THE PRODUCT CYCLES ARE COME. I DON'T KNOW IF THEY'LL TALK ABOUT DATA CENTER, IT WOULD BE WEIRD FOR THAT, BUT THEY'RE GOING TO BE IT. >> JENSEN WILL SPEAK THERE. >> YOU KNOW, IT LOOKS PRETTY GOOD FOR NOW. >> YOU'RE TELLING ME THERE'S NO RISK I MEAN - >> LOOK THERE'S ALWAYS - >> I KNOW, THERE'S ALWAYS RISK WE WALK OUTSIDE THE BUS COMES. IS THERE LEGIT RISK? THEY PULLED FORWARD THE BLACKWELL PRODUCTION EXPECTATION. >> VERSUS -- I DON'T KNOW VERSUS THEIR EXPECTATION BUT VERSUS OURS THE RISK ARE A FEW, RIGHT. THERE'S ALWAYS THAT CYCLICAL RISK YOU KNOW, THAT SEEMS TO BE OFF THE TABLE IN THE NEAR TERM WE CAN TALK ABOUT LONGER TERM. IN THE NEAR TERM FINE. LONGER TERM THE WORRY WOULD BE A LOT OF INVESTMENT HAPPENING AND EVENTUALLY THERE HAS TO BE A REAL RETURN ON THOSE ASSETS DRIVING REVENUE OR EFFICIENCIES OR I DELI FOR THEIR CUSTOMERS AND IF IT WERE TO TURN OUT OVER TIME, THEN THE WHOLE THING WOULD COME CRUMBLING DOWN FOR NVIDIA AND OTHERS I DON'T THINK THAT IS THE CASE AND IT'S NOT A RISK NOW, BUT OVER TIME CERTAINLY YOU WANT TO SEE BUSINESS MODELS START TO GET BUILT ON THIS, SURE. >> WHAT ABOUT INTEREST RATES, DO THEY MATTER? >> THEY'RE HIGH. THEY HAVEN'T MATTERED AT THIS POINT. >> IF THEY KEEP GOING HIGHER, DOESN'T MATTER >> I DON'T KNOW. I'M NOT A MACRO ECONOMIST. >> YOU DON'T LOOK AT THAT SORT OF THING AND SAY IT COULD BE A RISK IN THE NEAR TERM. >> INTEREST RATES GO HIGH DRIVE MULTIPLES LOWER, IT HAS NOT HAPPENED IN THE SEMI SPACE, RIGHT. CERTAINLY -- BUT AGAIN THAT'S NOT NVIDIA SPECIFIC RIGHT. THOSE ARE BROAD RISKS. INTEREST RATES GOING HIGHER AND IMPACTING THINGS WOULD IMPACT LOTS OF THINGS >> WHY IS AMD UP 3.5%. A HALO ON THIS >> PROBABLY. YOU MENTIONED THE xAI MUSK STORY. >> BROADCOM IS DOWN. NOT LIKE EVERYTHING IS UP. AMD IS UP. >> I THINK THE PLAYERS THAT ARE VIEWED AS MAYBE MORE LIKE DIRECT BENEFICIARIES MAY BE UP. BROADCOM IS A DIRECTIVE BENEFICIARY OF AI AS WELL. >> A LOT OF PEOPLE MAKE THAT ARGUMENT AS A CHEAPER WAY OF PLAYING NVIDIA AT THIS POINT IT'S NOT THAT MUCH CHEAPER. >> IT'S QUITE A BIT CHEAPER AND STILL INEXPENSIVE. BROADCOM IS A DIFFERENT AI YOU ASKED ABOUT RISKS TO NVIDIA ONE IS COMPETITION HYPER SCALERS ARE DOING THEIR OWN. BROADCOM IS DOING THE WORK FOR THE HYPER SCALERS. THERE'S ONLY TWO COMPANIES THAT HAVE MATERIAL AI STORIES RIGHT NOW VIDENVIDIA AND BROADC AND THAT'S IT. >> DO WE KNOW WHETHER xAI WILL SPEND ALL THIS MONEY WITH NVIDIA >> I DON'T KNOW THAT WE KNOW ANYTHING FOR SURE BUT SEEMS -- DOES SEEM THEY JUST RAISED MONEY, DOES SEEM THEY'RE GOING TO BE SPENDING MONEY LIKELY WITH
