00:00 Brad Smith
On Wall Street, strategists are replacing AI and economic data with tariffs and viewing tax bills as a major focus for future investors. Barclays strategists hope to increase profits on stocks with AI driving revenue. Now joining me is Thomas Hayes, a Great Hill Capital Chairman and managing member. Thomas, I'm happy to be featured on the set with us today.
00:16 Thomas Hayes
Brad, being with you is great.
00:17 Brad Smith
absolutely. I had to narrow down your questions with my previous guest Dan Ives, but I learned as well, as you track this space very closely with AI.
00:31 Thomas Hayes
Yes, look, I think Dan is a spot. Demand exceeds supply 10:1, which is the current problem with Nvidia. Their business model relies on the kindness of strangers. As a result, Taiwan Semiconductors limits revenue growth to $4 billion per quarter. Therefore, in the next phase of Nvidia's growth, we need to see their fabs finished by Tawa and Semiconductor to increase capacity. And I'm a dark horse that no one pays attention to, you've seen stealth lurries, you know, 45 mph in slow lanes, 10% plus this week. And I think part of that is Lipu Tan cutting staff. The other part is I think it's the only game in town with Fab on the 10-yard line ready to spike football on a touchdown. There are chips that are being tested on the fab. And I think it might be a kind of dark horse if they become part of that supply solution to Nvidia and others. So you might probably be looking at Nvidia Double, but if Intel gets it right, it could make sense.
01:49 Brad Smith
We also raise similar questions we raised in our previous conversations regarding how much of the money that helped Intel reach this point is truly prioritized by growing and scaling production here in the US, so many of these chips can be shipped to other parts of the world.
02:15 Thomas Hayes
Yeah, well, once they get that production set, I think the sky is at its limit when it comes to global demand. Well, I don't think they need to be the best in class. I think there will be a lot of unlimited demand for anyone who can produce even the second tier. It's a strange call to say, hey, just mediocre and meet us at the midpoint. Incidentally, that's my basic case at Intel. They are mediocre chip leaders. Incidentally, when they brought this ability online on Lipu Tan, he did something incredible with Cadence Designs. It was a multi-multibugger. No one's good. He's going to fix it. They will become part of the solution. It will help nvidia. That would help Intel and others. And it will help boring ordinary businesses implementing the AI ​​mentioned by Dan. Now you think AI, you know, Mag7, you think you're thinking Palantir, you think you're Nvidia, but I think big beneficiaries will also become real business.
