00:00 Speaker A
Looking at some analysts’ comments, it seems like $1 trillion isn’t much higher than the company’s resulting expectations. Is this why this number doesn’t inspire more enthusiasm?
00:20 Speaker B
Trillion dollars is not their revenue forecast, nor is it the final number of 26 and 27. This is just their backlog so far. So when you look at current revenue forecasts and compare them to trillions of dollars, it’s really no surprise. But if this is just the starting point for further gains, I think once people realize this, it will drive the stock even higher.
00:53 Speaker A
Ezequiel, what do you think? I mean, you know, you’d think it would, but it’s very difficult to move those Nvidia shares.
1:04 Ezequiel
Yeah, I think it doesn’t matter how high the number Jensen Huang said yesterday. The market is just unwilling to believe that large-scale data center construction will continue into next year. The market is largely indicating that they believe, as a collective, this is the peak of capex investment. So Huang’s guidance for growth of over 30% next year is really falling on deaf ears right now. He is pushing the rope. Now, with that being said, Microsoft will soon report earnings for July and provide guidance for its next fiscal year, which ends in June 2027. If they start to guide further increases in capex next year, and then Amazon and Google do that later this year, I think investors will start to believe that more. But now, no matter how long it takes and how big the numbers Nvidia leads, the market just doesn’t want to believe that we can continue to build data centers at this rate.
