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According to this strategist, one thing could threaten growth

Artificial intelligence has emerged as a transformative technology, and tech giants are increasingly investing in its development. Semiconductor companies like Nvidia (NVDA) are among the biggest beneficiaries. Futurum Chief Market Strategist Cory Johnson joins Market Domination Overtime to share his insights on Nvidia’s prospects ahead of its upcoming earnings report.

Commenting on Nvidia’s sustained growth trajectory, Johnson says, “We’ve never seen anything like this before.” He highlights the company’s ability to continually innovate, introduce new products and sell everything it makes, maintaining its position as a powerhouse in the world to consolidate the rapidly evolving AI landscape. Johnson also points out that Nvidia has significant pricing power, which contributes significantly to margin growth. However, he points out one concern: the tech giants themselves are actively pursuing projects to reproduce Nvidia’s chips in-house.

“If all your customers are trying to invent a competitor to the product you’re selling them, you might want to worry about that,” Johnson tells Yahoo Finance.

For more expert insights and the latest market activity, click here to watch the full episode of Market Domination Overtime.

This post was written by Angel Smith

Video transcript

How do you think, Corey, you’re talking about geopolitical competition?

How do you feel about who is ahead right now?

If you were to ask the US or China: Oh, absolutely undeniable, what’s going on in the US and and why?

Um, because there is freedom and creativity here and people want to develop themselves.

They want to develop further, especially in Silicon Valley.

Um, and that’s where the smart people are.

I mean, you know, you’ve been in the Bay Area for a long time and I’ve been there even longer.

And, um, there’s so much excitement around a self right now, and it’s really a sea change because you’re still living with it.

Has this slowed down at all in the last six months?

12 months.

Just still widespread, right?

Was it too much excitement?

Sure there will be Boston, but this one feels really different because it’s a really fundamental change in what the technology can do, and by the way you’ll hear, it’s so interesting that you saw this one.

You will hear that it is fundamental.

It’s a paradigm.

Internet mobile A. I you.

Do you agree?

I agree 100%.

And you see the results.

You know, one of the differences between I and machine learning is there, but the chat GBT moment was an iPhone-like moment.

It was a Netscape browser moment.

It really showed us how things can really change in the future.

And the development over the last year is simply stunning.

Um, and you know, you mentioned NVIDIA earlier.

We’re getting results from NVIDIA next week, and that means things are going to get really interesting.

I really expected them to dial back expectations and tone down the fire a bit in the final quarter, and they did just the opposite.

Um, and that could be really interesting.

So I’m glad you brought up NVIDIA because actually, um, I’m writing about NVIDIA for tomorrow morning.

Short newsletter.

Shameless plug, please.

Yahoo Finance.

It’s on my street, but I’ll tease you a little here.

Just looking at how much NVIDIA’s data center business has grown and is expected to continue to grow, I’ve looked at other companies, right?

If you look at other companies that have grown a lot in the past, like Tesla in 2013, where sales grew 387%, but revenue wasn’t even $2 billion.

And you’re talking about a company, a company that increases, doubles or triples its sales every year.

But the sales are in the three-digit range, billions like this.

I mean, has any other company been this big and grown this much?

We’ve never seen anything like this before.

There is nothing like it.

What’s also interesting is that NVIDIA and we’ll see how that plays out.

But NVIDIA has also increased its gross margins.

In other words, they sell everything they make.

They do things as quickly as possible.

They invent and integrate faster than any other chip company ever.

But they also hold on to their customers and raise their prices very heavily and successfully, because as you know, they used to say, “No one ever gets fired for buying IBM if you build data.” Middle, you buy the NVIDIA Chips, it just depends on what you do and whatever they charge you, you’re going to buy those chips. So it doesn’t matter if it’s an expansion, but again, they all have their customers, a lot of their customers say, we’re going to start developing our own chips.

Now I doubt that Google and Amazon, er, all will be able to develop chips that are as good as NVIDIA, and that will be difficult.

It’s the hardest thing.

Perhaps this has been done before so they may not have had the same success.

But, um, if all your customers are trying to invent a competitor to the product you’re selling them, you might want to worry about that.

So NVIDIA makes a lot of money, they take a lot of profits, and they innovate at an incredible pace.

But their customers don’t like paying as much as they pay

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