00:00 Speaker A
Now let me talk about Nvidia. Completely different story. I’m surprised when you see the stock reaction to this, I don’t think I’ve seen any company other than Nvidia say that their revenue forecast for the current quarter is going to be $6 billion higher than the consensus forecast. I mean $6 billion, that’s the combined revenue of some companies for the entire year. Well, what’s wrong with the stock?
00:24 Nancy
In short, there is no catalyst. We can see from the data based on the Visible Alpha consensus that you are right. I mean, let’s say Q1 guidance is 78, 77 to 79 billion. The market consensus is that it is 72.4, but the gross profit margin is already there. Looking ahead to the rest of the year, gross margins remain in the mid-70s. so we don’t understand
01:01 Nancy
As we have in the past, the alpha in the fundamentals, I think the market is saying is this fully priced in? It’s asking that question, and I and we saw that reflected in the stock’s performance this morning.
01:21 Speaker A
Nancy, what, what can be quantified as a new, fresh, shocking new catalyst for Nvidia. If spending trillions of dollars building AI infrastructure doesn’t act as a catalyst, what do we need to see to get Nvidia running again?
01:43 Nancy
Yeah, yeah, so I might disagree on that. Uh, we see this looks very much like a depth search to me and then what we see is an opportunity to buy Nvidia at a little over $100 a share. Well, it had gone further and then it was pulled back. If your earnings grow more than 60% and your P/E ratio is less than 25 times next year’s earnings. Well, what you have is an undervalued stock. The Chinese team has not yet participated. Sovereignty has only just begun. They reported $30 billion in sovereign revenue, three times the same period last year. So, I think there’s a risk that you put pressure on those names. Uh, they start in the fall. I do think we’re going to see a return to outperformance. There’s going to be huge growth in the foreseeable future and what you’re saying is the right thing to focus on. Calculation equals reasoning equals income. So what we’re hearing from all the hyperscale providers is that they just don’t have enough capacity, and that’s how you generate revenue. One person’s capital expenditure is another person’s revenue stream, and that’s Nvidia and Jensen.
