00:00 Speaker A
Philip, when I think of the AI industry, I can’t help but think of Nvidia. And while the results came in after the bell on Wednesday, and most of them beat Wall Street’s expectations, most think the overall story for NVIDIA is sort of, or rather, the results kind of keep the story afloat. So, I’m just concerned about the valuation here. So does that mean we’re going to cross that $5 trillion threshold? Are you worried about that one by one? Tell me how you think about Nvidia being such a leader, such a significant player, in today’s AI industry and momentum.
00:58 philippe
Yeah, look, Nvidia is a great company. It’s, uh, great business. Well, what we learned from this week’s results is that the fundamentals remain strong. Ah, but of course there was a backlash in performance. This basically means that a lot of information is already baked into the stock. So, what we’re thinking about is, uh, sort of an upside scenario and a downside scenario, uh, for NVIDIA, but we don’t think there’s much visibility beyond the broader infrastructure, uh, or a few seconds, 12, 18, 24 months. There’s a huge amount of innovation, uh, still happening. There is a new market entrance. So, from our perspective, when we think about accessing AI trading today, we look outside of the infrastructure segment and don’t focus on areas like video.
01:58 Speaker A
Like you said, where can I access it? Because we know the Salesforce report is coming out next week. I looked up the software name. Where are the backdoors to this deal now? And after what we’ve seen in the last few months, do you feel like now is the time to say, “Okay, I’m ready to jump in here.”
02:24 philippe
Well, software is not one of these areas. Hmm, but I think you have to be selective. Well, I think we’re going into a rebound from the big drop in February. Although some of these stocks were quite expensive, we think the AI loser tag many of these software companies have received in recent weeks is probably too short-term. I think investors, to some extent, are missing the fact that these businesses are so ingrained in their workflow that it’s very difficult to break out of it, and that they can add AI on top of their existing capabilities. So we’re selective about software, um, I think it’s an area that we like. Um, but when you think about the balance of risk, uh, in terms of future outcomes, we talked about Nvidia earlier, um, we think we’re a hyperscaler. Microsoft, for example, has also been affected to some degree by software vulnerabilities. So this is a stock that we added to, for example, during the first quarter, following some weakness.
