Nvidia’s results show continued visibility into AI demand

Transcript

Transcribed by machine (Whisper) from the episode’s audio, so a word may be off here and there.

1. 3:05

   What does this mean for the, I don't know if I could. call it AI bubble story at this point. The AI anxiety story, maybe we have to call it. I mean, we saw the Cetrini Research article that came out this week and got everyone very anxious about AI. We've seen just incredible drawdowns in the software sector, again, because of AI. What does this do to the AI story? How are investors thinking about this now that NVIDIA continues to dominate? Well, there's two different types of anxiety, and they're actually the polar opposite of each other. One level of anxiety is, oh my goodness, we're building so many data centers, this can't be sustainable. When it stops, the music's going to stop, the economy's going to decline, NVIDIA's going to decline, the hyperscalers can't afford to do this. That's one level of anxiety that we've been living with for a few months. The other level of anxiety is

2. 4:02

   the exact opposite. Oh my goodness, AI is so potent, it's going to run us over. It's going to go industry by industry and destroy it. And software stocks are worth nothing at their terminal value. Those two things are opposite. Either you believe AI is great and it's going to transform the economy in two years, or you believe that AI isn't that good and we're going to stop building data centers. Those two things are opposite types of anxiety. And we think that, You know, I've lived with a lot of anxiety in my life, but we can take a deep breath and say both of those things are pretty extreme perspectives.

3. 4:41

   What we do know is that AI is incredibly valuable. It's very potent technology that we are just starting to realize how useful it is to both business customers as well as consumers. Business customers are willing to make long-term commitments, which is why Microsoft, Amazon, and Google are building these data centers. because they have these long-term commitments, and consumers are willing to pay more and more for these subscriptions and using these tools in an even more comprehensive way.

4. 5:13

   We know that's happening, so the anxiety about AI isn't real and we don't need these data centers. NVIDIA can help us put that aside by telling us, look, this data center construction is going to continue. On the anxiety of AI is happening too fast and everybody's going to be unemployed, We can also take a deep breath about that and say, somewhere between software engineers that can... that are very much impacted by AI and nurses that are probably not going to be impacted by AI for decades. We have all the other professions. And yes, AI is going to impact every single profession in that progression, but not all at once. Some professions are more susceptible than others. They will change. The hiring around those will change. People that no longer fit in that profession will move to the other professions. This is not going to happen in a two-year time

5. 6:06

   afraid. Those types of essays are science fiction. They are doomer porn. We can put them aside and just focus on what's in front of us, which is a very powerful technology that can drive productivity growth, which is a good thing. It'll help increase the value of our labor, which will get us paid more. It'll help our companies grow faster so they can hire more. That's the more likely scenario than those extreme concerning scenarios.