Yeah, let's move to the semiconductor chip space, if you will, and more pain here for some of the corporates involved with video, the latest one to give a week forecast for the current period. It does suggest to demand maybe even worse than fear. Let's get over and discuss all this with Ian King, Bloomberg News US semiconductor reporter. We got to the moment after ours four and a half pers sent down video that they missed their forecast by
a billion dollars. Now, surely these corporate companies that normally try and under promise and over deliver, this is not the case here. Yeah. I mean what in video is basically saying is, look, we have got this mountain of inventory that essentially the massive dip that we're seeing contumer spending driven by inflation quarter that we just couldn't respond in time. We have all of these chips. Suppliers have all of these chips that you know, we just don't
have the absolute demand for. So we're just going to undership what's going after shelves for the next couple of quarters and make sure that all of this works its way through the system and that we get back to a more healthy position. Is this a darling that's kind of gone off the rails, or is this all understandable given you know, this sort of progression of the pandemic and and bottlenecks and the like, a mixture of both.
I would say, I think what has been underestimated by investors is the amount of these GPU chips and video makes that we're actually in the hands of the crypto minors. And that's obviously a very volatile situation. And there's new technology under way that will basically mean that video's chip won't be used for this market anymore. So there's been a lot of a lot of lack of clarity there. But on the flip side, look, this is what the
chip industry does. It always gets ahead of itself, it always gets caught out, and it always then has to do this called inventory correction. The question is always how long so, And I mean, we have a situation right now also that other PC makers are feeling it. And to me about gaming revenue, how that really held up if it did hold up at a tour, which sure it didn't. And on top of that, one of the main drivers of growth that we've seen is the data centers.
Now you know how are they doing, and what's the sort of forecast for them looking ahead, because that's going to really also be something that we're going to be perhaps looking at again in the next quarter. Yeah. No, I mean you've you've nailed at These are the two things that people are worried about. You know, just spoke with the CEO about half an hour ago and he said, look, you know, fundamentally the gaming market is in, you know, in a good place. You know, lots of games out there,
lots of two technology, and there lots of exignment. But you know, consumer spending is what it is. We'll just have to work our way through this. So obviously that's a you know, a rather sort of how can I put this less bullish approach, and we've heard from him about that market. Data center is a very different situation though, he's saying, look, we just literally can't meet demand. We can't get enough of the support chips we need for the cards we need for the systems, otherwise would be
even better than this record level that we're at. So two very different situations. You know that the chip industry is kind of two faces if you like that. We're still not out of the chip shortages. But we're already into oversupply of other types of chips. So consumer electronics and smartphones suffering I guess a lot here, and part of that can be explained, I suppose by inflation. But since data center is more on the enterprise side, that
looks pretty solid and maybe enough to wretch things back. Yeah, I mean the balance of these two businesses. For in videos, it's it's very much at that point right where if data center has a really really good quarter and gaming stays at kind of this level, then data center will
be more important. But overall, the problem, Brian and is that there is concerned amongst the analysts based upon what other chipmakers have said that guess what, we're consumer leads than enterprise will follow because we'll see an overall week in the economy and that'll cause large companies to cut their budgets and that will just work. It's right, screw into things like in videos data center business. So that's the abiding concern untils sorry in vidious CEO. So don't
worry about that. We're not seeing that. The technology reasons for all of this data center spending is still strong. Don't planic kind of thing. But that's that's definitely in underligning concern and I think that's you know, you're asking the right questions in let's have also look at how in videos stacks up next to its rivals, and you know they've said similar things. Does this perhaps lead that would be because of the number of them cause regulatory
concerns some consolidation. The problem, I think is that there's been so much over the last four or five years that we're down to a very few players, and as we saw within Video and their attempt to get hold of UM that there's just so much opposition amongst the customer base, you know, those willing to whisper to regulators
around the world. But you know, consolidation is just is just very, very difficult to go through as a process because there's so many ways to undermine any deal that gets proposed that it just doesn't seem to be a huge amount of appetite for that right now, anything that's not small and just roughly an add on that nobody cares about kind of thing. Just in ten seconds, margins
margin held them well. Margin's held up well because we're moving to the sort of speaks speaks to management, I suppose, And yeah, anyway out of time this time, but Jensen Wong is a good operator. Interesting to see how long it takes for the company to bounce back. Ian King with US as usual, providing some insightful commentary.