00:00 Speaker A
Gil, what do you think here? I mean, I’m looking at some of Nvidia’s off-year revenue projections, but the consensus for next year is still 59% growth. This is a 2027 figure and will represent a 29% growth from then on. But as we all know, Nvidia beats the estimates that are out there quite often. So how concerned are you that growth will eventually slow over the years?
00:32 Gil
Well, at least the outlook is pretty good for this year, and next year will be in sight soon. Microsoft, for example, plans to submit a report as early as July, providing guidance for next year. So there should be a sense of relief if NVIDIA achieves growth heading into next year. You don’t even have to grow up that fast. The stock trades at just 24 times forward earnings. The big disconnect here is between Nvidia and other chip stocks. AMD and Broadcom trading at 32x, memory stocks and their performance suggest that the cycle peak is two to three years away for these stocks, and Nvidia at the lower end of historical multiples suggests the cycle peak is now. There’s a big disconnect here, but I very much agree with Reuben that everything that’s happening today is not about Nvidia or CRM, it’s about SMH and IGV. Regardless of what these companies reported, there is a huge rotation from semis to software happening today. Nvidia reported a great quarter and great outlook. Salesforce continued to slow down quarter after quarter, and despite the new format for conference calls, this didn’t bode well for them. Stocks went up and Nvidia went down, even though it really didn’t work out. Today we’re talking about rotation. Again, the opportunity here is with Nvidia compared to everywhere else. Nvidia’s performance has been strong this year, and while it’s several times lower among megacaps, it’s still the fastest growing among megacaps. Indeed, the concern is when this cycle will peak, but it’s unlikely to peak this year for Nvidia or three years from now for other companies.
01:57 Speaker A
right.
