Ca$htag$: NVDA "Perfectly Positioned" in AI Trade, AMD, AVGO & INTC Gain Speed

on Schwab Network. I'm Diane King Hall alongside Tom white, Chicago studio. Time now for our cash check segment. For that, let's bring in our next guest. And that is Andy Swan, co-founder of like folio with new sentiment data on Nvidia Nvidia ticking higher today. Andy you've got fresh sentiment data. Walk us through what it looks like at a headline level. And happy Friday to you. Yeah happy Friday. Nvidia is just cranking on all cylinders. Probably the best company in the world. If not that it's one of the best by far. You know when we look at Nvidia we like to look at it from the from the mix versus competitors. Because Nvidia got out to such an incredible head start in the AI race versus everybody else. They kind of caught everybody else off guard. This wave that came in, they took advantage of flawlessly. They were perfectly positioned and executed really well. But when we look now at the landscape, things have changed a little bit. You know, Nvidia is not the only player in town. The competition is getting more competent. And while Nvidia's, you know, growth story is incredible and it remains extremely strong, we're starting to see some competitors outpace it in terms of in terms of growth rate. You know, specifically I really like AMD here. I think they're doing phenomenal things to catch up and, and, you know, kind of solidify the second position, which can be very lucrative. And so, you know, when we think about Nvidia, we think best company in the world priced to perfection, delivering above perfection over and over again. But what else in the AI space, what else in the in the compute space is starting to compete. There are some other winners bubbling up there, but I think the big story here is that the AI build out, data center build out. ET cetera. That story is not cooling off. I see absolutely no signs that this is a bubble. In fact, what we're seeing is more and more adoption, broader and broader implementation, more and more developers and more and more businesses getting into the game, which is different than web, you know, the, the, the web 1.0 bubble. Not everybody was participating. Not everybody was building into the same ecosystem like they are with this. So I think we're just in inning two of the AI and data center build out. If anything, it's accelerating. Nvidia's perfectly positioned. They've shown competence beyond belief in executing and taking advantage of those types of ways. We see no reason why that would stop here. But we also see the bubbling up of some competent competition that will also benefit. Yeah, Andy, you know, we've seen Nvidia, you know, on a forward valuation basis, it's cheap compared to a lot of its competitors that you mentioned just AMD Intel even at that point, maybe it's a law of large numbers, but the 6% gains this week, we've seen a resurgence in the shares after their great earnings last week. My question for you is, when you look at that AI data center market, where it's, what, 472,000,000,000 in 2026, 2 trillion by 2032. Do you guys see any signs that, hey, things are going to become more efficient? Hyperscalers aren't going to have to spend as much. Maybe chip design gets innovated where, you know, costs have to come down because the exhaustion level up about the amount of spend. Do you guys see any data that says that there might be cracks in maybe some of those estimates? Yeah, I think the biggest crack, you know, that you could put on Nvidia is that the margins almost have to come down because of the, the competence of the competition and the efficiencies that you talk about. But we actually see, you know, in terms of those efficiencies, we see that as a positive feedback loop for the industry. The the models of today will be half the price or one tenth the price a year from now. And the new models that keep coming out from these, you know, from Claude, from Grock, from GE t the open source models keep getting better and better. And what that does is it brings more people into the ecosystem as developers, as consumers, as implementers, and it makes it an arms race that could seemingly never end. And so we see it as an acceleration mechanism, the efficiencies, we see it, you know, also going to, to test and pressure the the profit margins and the gross profit margins of individual competitors like Nvidia. But the whole pie, we think, continues to grow at an accelerating almost exponential rate well into the future because of what these these data centers, these chips and these AI technologies unlock for businesses and individuals around the world just keeps getting more and more powerful and drawing more and more people in. So let me ask you this, Andy. So then I guess then you should. One shouldn't make too much of that chart where AMD is a little above Nvidia in terms of what demand looks like. It's just the pie is growing. Is that how we should look at that. Yeah. The pie is growing. And Nvidia was coming off of such an enormous lead and such an enormous, you know, baseline number that even the plus 24% year over year is an incredible feat considering where they started a year ago and how much of a lead they had on everybody, those those bars above that would have to be, you know, plus 100% or more to really be denting Nvidia's massive lead at this point. So it's, it's grinding away. It's going to put some pressure on margins. But Nvidia definitely in the driver's seat of the entire AI race and all the money that's flowing into all these companies. Grok Claude G t an enormous percentage of that continues to go to Nvidia well into the future. And just a follow up question after the announcement that they're buying Hugging Face, that open source AI model platform. You know, if you look at that, you know, compared to what we've seen, whether it's from anthropic, whether it's from open AI, you know, they're they're expanding their stack, their AI stack at this point. And that seems to be like the next logical step. Do you see them having a bigger opportunity there where, you know, how many how many of these models are we going to have moving forward? Are we going to or is it going to be somebody's going to lose or somebody's going to win? Or maybe there'll be two winners? I mean, what do you what kind of data are you guys seeing on that front? You know, as I hope we continue to get hundreds of models and I hope we have multiple winners. And more importantly, I hope that all of the venture capitalists and private equity guys and everybody that invests in these companies continues to fund the fantasy that there will only be one winner in the AI race, because what that's doing is just, you know, pushing so much capital into the space and so much innovation. I mean, Hugging Face has over 18 million developers involved in its ecosystem. And and that number continues to grow as more money continues to flow into these. So we don't see it. We don't see the implementation layer in any way as a winner take all type of end game. This isn't Amazon versus the rest of the retailers. You're going to continue to have choice. And you know, like every month we see one of these AI companies come out with the newest, greatest model and it blows. Every cloud is yesterday's news. And tomorrow, grok will be the shining star. And all of that is good for Nvidia. It's good for the data center Buildouts. It's good for consumers and it's good for implementers. And we hope that continues for for a long time. And we think it will because this arms race is just getting started. All right. Good stuff. Thanks, Andy. That's Andy Swan, c