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Let's dive a little bit deeper into the Nvidia earnings. Who do you want to dive deeper in than better person?
Right now? That's our guy.
I mean, he's getting geared up for Penn State, Nevada this weekend, but he's probably focusing a little bit here on Nvidio. Hey, Dan, I thought these numbers were darn good. But I know there's the law of large numbers. I know there's a whole thing about expectations. Give us your take on these Nvidia numbers, Dan, I.
Thought they were robots, and I think the sum extent when you factored China and they actually beat expectation, especially when you look at the outlook. I think this stock cuts up today and I think in further validates Well, we've obviously been talking a lot, you know, with you and the team about about the AI story now playing out into the next stiege of growth. This is bullish in my opinion.
Dan, What was your takeaway here as it relates to a lot of the spending here, Capax.
I think it just sures there's one ship in the world. Few in the AI revolutions led by Godfather of Ai Jensen, thea viding and newquit's happened on Capax. It's just continuing to accelerate. And then you factor in China that could be fifty billions, I mean, and talking about the fifty percent growth. I look, I think this is just now.
It's showing the next fees of the AAR revolutions now starting to play out, especially when you combine it with hyper scalurs and everything we've seen from Pallentier now Snowflake, Manga deb the use cases are expanded.
Dan flush out for us the whole China situation. Where is Nvidia today Visa VI China And how do you think this is going to play out over the coming quarters with their age twenty.
Ship Yeah, Paul, Look they're cognmental between us and but the reality is Jensen's ten percent politician, ninety percent CEO, and Trump administration to know, is big as chip on the poker table is in the video. So as this all plays out there, it's a pay for play model. They're going to have access to China, even if it's restricted, and that's going to add and incremental what two five
six billion per quarter? And you know, even though Beijing's saying telling you know, maybe these companies you don't want to buy video chips. That's like telling a kid not eat candid. Big tech in China wants in video chips.
So I mean, as we dig in here into the data what we saw from the earnings report, what is your takeaway in terms of what they were able to see specifically in terms of data center AI demand. That's definitely something that's been in focus here with this report.
Yeah, look, I think it's noise in terms of any other quote unquote like miss because when you factored China, it's basically over a billion and a half feet. They're seeing demand acceleration. I mean, no region is not showing acceleration. And now you're starting to factor what's going to happen in Middle East, what's going to happen in China, It's gonna to rest of the world, and you're really talking
about one chip that's fueling it. So when I look in a video, I think there's a five trillion dollar mark cap potent by a year under early twenty six, and it's just further validation for the AI revolution basis.
So talk to us DAN about their customer base and the concentration of the customers, and I know they want to broaden out their customer base, maybe the sovereigns into other net buyers out there. How do you think that's going to evolve.
Big Tech's going to continue dom as a quote unquote customer base in terms of the concentration. But now as sovereigns play out, as enterprises play out, you're going to see more and more people, you know, obviously start to understand that this revolution is not just big Tech. It's about other sort of regions starting to play. And there's only one ship in the world fuel in it, and that's in video.
So taking a step back here in video wrapped up all of the mag seven earnings here. What were your thoughts more broadly overall this earning season.
I mean, I think this is the bullish tech earning season. We've talked about it, the validation of the AI revolution, his next stage of growth. It's spreading, second, third, fourth derivatives.
Now Grant look in video is a Scottie chauffeur of tech. Okay, but what you're just starting to see now play out is those derivatives, the spending, the multiplier, it's all happening and I think that's just bullish going into year end in terms of tech stocks, and I think this bull market has two to three year run still left.
Dan, So as you talk to institutional investors, how are they viewing this fifteen percent? I don't know government fee that the US government may impose on some of the chip sales the China. How's that being viewed by investors?
Look, it's obviously it's unusual. It's a pay for play model, but guess what, investors, it's new rules of the road, right Big tech starting to understand how that works. But when it comes in video, Okay, pay fifteen percent, that's breadcrumbs. You can raise prices fifteen percent. You need access to China. You can't give Huawei on a silver platter that market.
So as it continues to play out, I think investors have accepted they want a video open access to China because that continues to be the golden goose that Jensen's going after.
Dan, I want to quickly go right back to what we were talking about here when it relates to data centers. How concentrated is in video's revenue right now? Or like you know, the top five hyper scalers still the overwhelming majority of data center sales.
You know, it's concentrated, but that's just the nature right now big text three hundred, what fifty during sixty billion, But it's going to spread sovereigns, enterprises the rest of the world. And Vidia is going to continue to own that so contry today when you look out three four, five years ago, that concentration will continue, I think to diminish as more players get into AI. But there's one chip fueling and it's a video damn.
How do you think about the competitive environment for in Nvidia here? Is it am D, is it Huawei? Is it others? We don't know about at the moment.
Yeah, but glease is to an AMD clearly competition. I think that it would continue to be bullish and that in terms of getting more and more pieces of pie. Huawei is a competitor. But that's the whole reason that you don't want to just give them full access to China because that will help them narrow the gap for bullets obviously on broad common others. And I think look as this plays out, in Vidia is years ahead of
any other competition. And even when you hear talk about you know, US government and obviously, you know Soft Bank investing and Intel, I mean Intel is you know, so many years behind. You know, they continue to really have just a massive out pill battle and that's why video is top of the mountain.
All right, Dan, your Penn State Nitley Ions opened the season Saturday, three point thirty pm on the CBS Television network, compariment plus against Nevada forty three and a half point favorites. How do you feel about your Nitley Lions this year?
I mean work, I was at practice last week State College. I told you I think this is the year. I think we win the nanty. We have some tough games in Oregon, Ohio State, but I think Big ten continues to hold the mantle. I like al our Singleton and Penn ste I think I think we'll be holding the trophy in January.
I like the call naese and clear and confident. Dan Ives, Globalhead of Technology a Webush Securities appreciate getting a few minutes of Dan's time here today on Nvidia and big Tech