Nvidia continues to solidify its position as a leader in the tech industry, despite facing potential setbacks from the delay of the Blackwell chip. In his CNBC interview, Paul Meeks highlighted the company's robust innovation pipeline and strategic advantages that help maintain confidence among investors. Watch the interview for details!
Transcription:
Speaker
There is this report that we've been seeing about the delay in the blackmore chips and what that could potentially mean as an effect for some of those customers like Ameta, Google and Microsoft. How are you watching that story? Is this going to have an impact, do you think?
Paul Meeks
I think what happens as it pertains to Nvidia is they may have a delay of the Blackwell series chip. Could be as long as about 90 days. But I think in the meantime, they're so far ahead with their technology that no one is going to come in in that vacuum and steal market share. So it's theirs for the taking. I think their revenues are simply going to be delayed for about a quarter or two. And because they're the most important cog in the AI supply chain, sure, it's going to impact the AI infrastructure building of some of those hyperscalers, as we call them in the states, the four big companies that are spending billions and billions on building their AI infrastructure.
Speaker
Well, I know Sam scratched this point and she raised this issue about, you know, the AI hype, being bullish on tech, which you are, broadly speaking, but drilling it down to specifics. You know, if an activist fund manager with the credibility of Elliott management says that there is an AI over hype and that these talks are overbought, do you think the pressure builds to the downside?
Paul Meeks
You know, I think we need to distinguish between what I call AI 1.0 and AI 2.01.0. I continue to be very comfortable with. Those are the infrastructure building names, typically semiconductor companies, data networking companies, and data server companies. Now, the four hyperscalers have promised, I guess nobody promises, but they've said recently in their conference calls that over the next twelve months they are going to spend $227 billion combined on AI infrastructure. I don't think they are going to change those plans. And they also say that their capital expenditures in the year afterwards are going to accelerate from that very high base. So I like all those stocks. Then you get to the AI 2.0 stocks, which I'm not sold on yet, so I don't own a single one. These are the companies that claim, after all the infrastructure building spending, that they will have these marvelous money generating products featuring AI on the other side. I'll believe that when I see it. But for my thesis to be right, I only need the AI 1.0 stocks as of yet. I don't need the AI 2.0 stocks.