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- NVIDIA's had an amazing
around the past couple years.

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Do you see that continuing
going into 2025?

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- Certainly they have the
poll position in terms

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of their chips, which are
designed for the AI build out,

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are really, I guess just head

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and shoulders above
any of the competition.

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So they have a huge
backlog of orders and if,

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and they have these new models
that are gonna be coming out,

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which I guess is just gonna
take it all to the next level.

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So, you know, I think in the
near term is NVIDIA's market,

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you know, from an investor's
point of view, a couple things.

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One is to what extent is that priced in?

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And with Nvidia now having been
the top performer, not only

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last year in the s and p 500,

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but also this year, you have to argue that

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that is not new news to investors.

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A lot of that is priced
in trading at, you know,

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30 times sale, 62 times earnings,

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and there's just no cushion
in case there's any hiccup.

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And indeed, although many
people are talking about,

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you know, Nvidia is the new
barometer of the new economy

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and so forth, surpassing
Apple, surpassing Microsoft.

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The fact of the matter is
Nvidia is at 1 35 in June right

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now, eh, around one 20.

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So it's significantly off of its highs,

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arguably still in a
mini correction period.

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It has not done well this summer

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because I think the key, one
of the key issues is on top of

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how long can they maintain
their supremacy is how long,

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how will their purchasers,
their consumers make money?

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Everyone says AI is great,

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but how are you gonna monetize that?

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How are you gonna get
your return on investment?

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Are, are you and,

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and me gonna pay up to
have, you know, $50 a month

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to have AI capability
on my smartphone or not?

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You know, how are people
gonna justify all that?

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So that's the big question,
which I think is one

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of the reasons Nvidia has
pulled back this summer.

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And of course you still have
the inevitable competition.

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Now, just this morning we
heard that Intel lowly Intel,

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which has been kicked around
now for, for years now,

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has entered into a partnership

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with Amazon's AWS cloud service to

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co-design AI chips.

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AWS is one of the premier
leaders of the cloud.

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If they think Intel chips make sense

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and why wouldn't they
want to work with Intel?

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So they have an alternative to just having

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to go back on their hands

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and knees to Nvidia to beg them,
to give them a better deal.

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So what's my point?

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My point is competition will be coming and

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because, you know, NVIDIA's
got a target on its back,

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it's minting money right now, but,

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and they will all want
to be a part of that

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and design their own chips somehow.

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- Yeah. So Nvidia is far

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and away the leader in, in
the AI revolution right now.

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And for investors in Nvidia,
do you think it's time to sort

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of price average in at
one 20 ish or whatever,

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or, or wait and see?

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- Well, you know, it depends
what you're trying to do.

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I don't think it's one

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of the top opportunities
in the market now,

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because even though 1 35
to one 20, you know, given

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that it's, you know, like
doubled already this year

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and done similarly in, in prior years,

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that's not much of a discount.

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And of course, with this
news with Intel this morning,

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you see competition is coming

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and people are still trying
to ask, answer that question,

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how do we make money with all their chips?

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So, but if your goal
is I want to, you know,

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keep up with the market

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and just tweak by portfolios, I basically,

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I have a market portfolio,

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but maybe get a slight edge,

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maybe you just underweight
it a little bit.

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You, you, you can't not
have Nvidia given its size

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market cap size and therefore
influence on that s and p 500.

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You have to have some exposure,

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but maybe you wouldn't have
a full position exposure

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- If I were to invest in AI right now.

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Do you think that there's
maybe more potential in,

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in a company like Intel that's
the competitor to Nvidia,

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that people, you know, it's
a beaten down stock, the,

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it's a troubled, they've
gone, had some troubles

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as a company, do you think it, they'll,

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they're gonna turn it around and

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- I prefer actually Intel

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as an investment today
versus Nvidia, you know,

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Intel is down about 60%.

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They're talking about
kicking it out of the s and p

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or the Dow Jones Industrial average.

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It does have a lot of debt.

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But, you know, here's
the thing, I think it is,

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of strategic importance to this
country where, you know, one

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of the big themes of the last four

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or five years is to reshore onshore.

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We do not want to be reliant
on Taiwan, for example,

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for all our chips because
of the geopolitical risk

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and the potential, you know, hijinks

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of supply chains and so forth.

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So to award, for example,

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in the inflation redu in
the CHIPS Act, I think

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Intel got about $10 billion of,

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of assistance from the government

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to then let Intel founder
here doesn't make any sense.

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Indeed, I think Intel's
just gotten some contracts

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with the US military to
produce chips for them.

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They want Intel to do well

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because it's, it's a, it's
a homegrown chip maker

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and I think they still have
the intellectual property.

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I still think they have the, the,

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the leadership under Pat
Gelsinger to rebound.

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Incidentally, he just bought
about a million dollars worth

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of shares just under 20 right now.

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The stock I think is up
for the second day in a row

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to maybe 22, 23.

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But of course the stock
at one point was close

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to 40 not too long ago.

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So I think that's an interesting
speculation for investors

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who wanna play in the pool,

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but at a lower valuation play
with the, the down and outer.

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- Thank you very much, David.
- My pleasure.

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- Thanks for watching.
Check out more@qz.com.