WEBVTT 00:00:00.000 --> 00:00:01.860 align:middle line:84% BRAD SMITH: It's been a big year for NVIDIA 00:00:01.860 --> 00:00:07.020 align:middle line:84% as we've continued to track that stock over 170% in gains, 00:00:07.020 --> 00:00:09.480 align:middle line:84% is what we've seen year to date, plus strong earnings 00:00:09.480 --> 00:00:12.900 align:middle line:84% made it the first chip company to briefly boost its market cap 00:00:12.900 --> 00:00:14.820 align:middle line:90% over the trillion-dollar mark. 00:00:14.820 --> 00:00:17.040 align:middle line:84% But with the generative AI hype not showing 00:00:17.040 --> 00:00:19.050 align:middle line:84% any signs of slowing down, Nvidia may be 00:00:19.050 --> 00:00:21.120 align:middle line:90% the biggest winner of them all. 00:00:21.120 --> 00:00:24.640 align:middle line:84% Yahoo Finance's Dan Howley joins us now with the details. 00:00:24.640 --> 00:00:27.210 align:middle line:84% Dan, help us break this down even further. 00:00:27.210 --> 00:00:29.580 align:middle line:84% The company, Nvidia, they've been focused 00:00:29.580 --> 00:00:32.310 align:middle line:84% trillion-dollar club, entered, exited, but 00:00:32.310 --> 00:00:33.787 align:middle line:90% they're still in that ballpark. 00:00:33.787 --> 00:00:35.220 align:middle line:84% DAN HOWLEY: Yeah, and let's just break down 00:00:35.220 --> 00:00:38.280 align:middle line:90% why Nvidia is in this position. 00:00:38.280 --> 00:00:41.610 align:middle line:84% The company that started decades ago, and really their focus 00:00:41.610 --> 00:00:44.380 align:middle line:90% was on video games at the time. 00:00:44.380 --> 00:00:46.950 align:middle line:84% But as they started to try to expand, 00:00:46.950 --> 00:00:49.980 align:middle line:84% they were looking for new ways to grow their market 00:00:49.980 --> 00:00:52.350 align:middle line:84% to take advantage of those graphics chips, 00:00:52.350 --> 00:00:53.790 align:middle line:84% and they opened it up to developers. 00:00:53.790 --> 00:00:57.060 align:middle line:84% And they basically found that, look, the kind of parallel 00:00:57.060 --> 00:01:00.300 align:middle line:84% processing that graphics processing units offer 00:01:00.300 --> 00:01:04.830 align:middle line:84% is infinitely better than central processing units, CPUs, 00:01:04.830 --> 00:01:07.360 align:middle line:90% at processing AI data. 00:01:07.360 --> 00:01:11.640 align:middle line:84% And so that's why we're seeing Nvidia really take off here. 00:01:11.640 --> 00:01:15.120 align:middle line:84% The reason why they're beating the likes of AMD 00:01:15.120 --> 00:01:18.240 align:middle line:84% and others in this space, as far as processing goes, 00:01:18.240 --> 00:01:20.280 align:middle line:84% is because they recognize that early 00:01:20.280 --> 00:01:23.910 align:middle line:84% and they capitalized it by investing in it heavily. 00:01:23.910 --> 00:01:26.670 align:middle line:84% For years, they've been talking about how they're 00:01:26.670 --> 00:01:28.800 align:middle line:84% working on AI, how they have these servers, 00:01:28.800 --> 00:01:29.880 align:middle line:90% how they have the software. 00:01:29.880 --> 00:01:33.180 align:middle line:84% So they're a full stack company from soup to nuts, 00:01:33.180 --> 00:01:36.930 align:middle line:84% and they're the best to do it, and their products 00:01:36.930 --> 00:01:38.760 align:middle line:84% are in short supply, so people are 00:01:38.760 --> 00:01:43.050 align:middle line:84% really fighting over how to get their chips at this moment. 00:01:43.050 --> 00:01:45.630 align:middle line:84% We're not talking about small firms, either, 00:01:45.630 --> 00:01:47.640 align:middle line:84% we're talking about the likes of Microsoft, Google, Meta. 00:01:47.640 --> 00:01:51.960 align:middle line:84% They're all trying to get their hands on Nvidia's servers 00:01:51.960 --> 00:01:55.560 align:middle line:84% and chips, and so that's why this company really has taken 00:01:55.560 --> 00:01:56.970 align:middle line:90% off and why it's doing so well. 00:01:56.970 --> 00:01:59.940 align:middle line:84% Now, obviously the generative AI hype 00:01:59.940 --> 00:02:02.290 align:middle line:90% has really played into that. 00:02:02.290 --> 00:02:05.850 align:middle line:84% But I think it's important to note that generative AI itself 00:02:05.850 --> 00:02:09.610 align:middle line:84% is very hyped, but it's not the end all, 00:02:09.610 --> 00:02:11.940 align:middle line:90% be all when it comes to AI. 00:02:11.940 --> 00:02:14.730 align:middle line:84% AI, as I've said, multiple times has 00:02:14.730 --> 00:02:16.560 align:middle line:84% been around for quite some time, companies 00:02:16.560 --> 00:02:17.940 align:middle line:90% have already been using it. 00:02:17.940 --> 00:02:21.360 align:middle line:84% That's why NVIDIA has been able to do so much work in AI. 00:02:21.360 --> 00:02:25.110 align:middle line:84% It wasn't just generative AI that made Nvidia overnight 00:02:25.110 --> 00:02:28.140 align:middle line:84% a hit, they've been doing this for quite a while 00:02:28.140 --> 00:02:31.320 align:middle line:84% working in the AI space, improving their capabilities, 00:02:31.320 --> 00:02:34.380 align:middle line:84% releasing newer and newer servers and processors, 00:02:34.380 --> 00:02:37.110 align:middle line:84% scooping up companies to make the interconnects 00:02:37.110 --> 00:02:40.590 align:middle line:84% between different pieces of equipment talk 00:02:40.590 --> 00:02:41.800 align:middle line:90% to each other faster. 00:02:41.800 --> 00:02:43.800 align:middle line:84% So this is something that NVIDIA has been working 00:02:43.800 --> 00:02:45.480 align:middle line:90% on for a long, long time. 00:02:45.480 --> 00:02:49.380 align:middle line:84% Generative AI, right now, it definitely is the most 00:02:49.380 --> 00:02:51.660 align:middle line:90% talked about type of AI. 00:02:51.660 --> 00:02:56.170 align:middle line:84% Look, it might not be the final iteration that we see of AI. 00:02:56.170 --> 00:02:58.500 align:middle line:84% In fact, it won't, there will be new versions 00:02:58.500 --> 00:03:00.340 align:middle line:90% of AI that do different things. 00:03:00.340 --> 00:03:02.900 align:middle line:84% This is a specific portion of AI. 00:03:02.900 --> 00:03:05.700 align:middle line:84% AI is a broad range of technologies, 00:03:05.700 --> 00:03:11.070 align:middle line:84% and Nvidia will continue to do well as far as overall AI goes. 00:03:11.070 --> 00:03:13.710 align:middle line:84% Now, there are going to be rivals. 00:03:13.710 --> 00:03:16.470 align:middle line:84% AMD is working on things, Intel obviously 00:03:16.470 --> 00:03:18.570 align:middle line:84% working on things, Qualcomm coming out 00:03:18.570 --> 00:03:21.180 align:middle line:84% and saying that they're all about AI. 00:03:21.180 --> 00:03:24.120 align:middle line:84% You have Broadcom and Marvell, they're all 00:03:24.120 --> 00:03:26.620 align:middle line:84% working on their own technologies, 00:03:26.620 --> 00:03:29.430 align:middle line:84% whether that's with third parties like Google 00:03:29.430 --> 00:03:31.350 align:middle line:84% producing their own chips or not. 00:03:31.350 --> 00:03:34.920 align:middle line:84% For now, though, Nvidia really is riding this hype train, 00:03:34.920 --> 00:03:37.230 align:middle line:90% and they're the conductor. 00:03:37.230 --> 00:03:39.250 align:middle line:84% JULIE HYMAN: I like that analogy, Dan. 00:03:39.250 --> 00:03:40.240 align:middle line:90% Thank you so much. 00:03:40.240 --> 00:03:42.080 align:middle line:90% Appreciate it.