00:00 Speaker A
There’s another trend that I wanted to talk to you about, Paul, that I found interesting in the market recently. And that’s, you know, you and I’ve been following these tech stocks for a long time, right? And there’s some like Oracle, which we’ve been speaking about recently and watching that have sort of found new life because of this AI wave. How much further can it take them?
00:37 Paul
Yeah, there are a couple of blasts from the past, I would say Oracle and AI, but I don’t think Oracle and AI with its any kind of tilt towards a large language model or even its apps is the big deal. It’s OCI, right? Their cloud computing infrastructure. That’s very much like Microsoft Azure and Amazon AWS. If it was just an AI hopeful software company, I wouldn’t have the same view of Oracle. The other thing I think will be interesting is not today, not tomorrow, but sooner or later, quantum computing will explode, and then you’ll see another blast from the past because here comes IBM. IBM after all these years of being poo-pooed could be a leader in quantum computing.
01:58 Speaker A
Well, and IBM has already trading near a record, so it’s already been seeing a lift from some of the transformations that company has been undergoing. Are there other sort of like old workhorses that you think people should be holding in their portfolios because they’re part of this new wave?
02:25 Paul
Yeah, another one that people had given up for dead was Cisco, right? For a long time, Cisco’s growth had slowed, and the only reason that you would buy Cisco was it had a really high dividend yield for a tech stock. So you could get kind of a two-fer and have a call option on some price appreciation. However, Cisco, in this AI infrastructure world, has some mojo. And I also think Cisco might be part of the consortium that is permitted in the United States to buy Tik Tok, so that could be interesting. So, yeah, another one.
03:33 Speaker A
Let’s get to the biggie here, and that is, of course, Nvidia. We had the recent news that they were going to be selling more, or that they were expecting to get the licenses again to sell H20s into China. What do you think is the biggest obstacle or risk for Nvidia at this point?
04:04 Paul
Well, we know, whether it’s the Chinese or the dude that we have in the White House, that, you know, a policy could easily be changed from morning to afternoon. So I still worry about that. But in the meantime, I think things are going great there. And this quarter, Nvidia was supposed to do revenues of about $45 billion. And that was excluding $8 billion in H20 revenue. So now that we’re back on, it won’t go from zero back to eight. But think about it. This could add, and it should add to all the Wall Street models, 20% upside to revenues over the next year or so. So if this deal sticks, I’m always worried about these deals sticking. But obviously a boon for Nvidia, and I agree. Post this announcement, the sell side is at about a $200 price target for Nvidia. I think it’s achievable.
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