CNBC & Fox Today On NVIDIA Stock, Micron Stock, AMD Earnings - NVDA Update

I saw it yesterday with the with the [snorts] DRAM with the memory stocks. Like why here? That is not a sign of a bottom. It's a sign of confusion. Uh and you need a crescendo sell where people just say I can't take it anymore. Right now people I had my first guy came into me. He said, "Listen, Jim, I can't take the Nvidia anymore. I can't take it." And I said, "Well, it's up. No, you don't understand. I can't take Nvidia every it goes up and then it goes down. It is totally bleagery." And I say, David, if Nvidia, which has the greatest balance sheet doing super, is believe like why is it up five? I mean, come who's buying up five? WHO'S DOING THAT? WHY DID SOMETHING HAPPEN? WHY? It goes down every day after it goes up like that. Who is doing that? The machines? Some hedge fund jackass? >> I don't have an answer for you, Jim. Yes, there are lots of algorithms, many >> quantitatively driven funds certainly are a huge huge part of our overall market. We don't talk about it that often. >> Well, but Elliot partners Elliot talked about it. >> Elliot talked about it. Uh yeah, I mean Elliott is known for putting out a letter >> in particular Paul Singer that scares the heck out of everybody because their approach typically and it's worked very well is the world is a really scary place. We will keep you safe. >> Okay, that's true. But I just say Nvidia up five. But don't I mean if if a stock goes up really strongly at the beginning of the day every day and then goes right down. Why are you the guy who says today is going to be different? I'm buying it up five. Why are you doing that? And nobody likes No one else named their dog Nvidia and I say don't buy it up five. Okay. Cuz at times they're not changing. >> But you say own it. So why not just buy it now? You don't >> should Why buy a pot? Why not wait till the bears come in, sell it down to 200, you buy what you want. Why don't you wait? >> Aren't you talking about it as a long-term hold? Something that's going to >> generate great value. So why are you why are you arguing around? >> You really did go to college to get stupid. Listen to me. Up five is not a great idea with the stock of Nvidia. >> Okay? >> It's not worked. >> Okay. >> It's not worked. >> All right. >> What? >> You've you've you've forgotten more about Nvidia than I'll ever know. Look, I Jetson Wong I tried to get to him yesterday about whether you like the momentum deal. He does. I think the momentum Oh, no. I think the momentum deal is is not a good deal for this moment. You have to read the room. But two years from now, that deal I think would be good. >> Okay. >> But when I look at Nvidia, I just say, can we please, unless you think the buyback's going to walk up right behind you, which has not been the case, I think let it come in. Now, I like to have a good basis. I like to have my basis be lower. This is how you belleaguer people. This is how people get bleaguered. They say, "You know what? I'm going to It's running. It's running. I'm going to get involved." It It's not running anywhere. >> Yeah. Well, that was definitely the story of the NASDAQ yesterday. 1% intraday gain to a 1% loss. And you're saying that repeated pattern is what depresses people. >> If we get the pattern broken, it could be terrific. But the way the pattern breaks from the 45 years I've traded is it opens down and finishes higher. >> Yeah. >> Not if it opens up and finishes lower. All that does is encourage more selling. You have to wait till it opens down. No particular reason and then you come in and buy. >> Do you admit memory costs are going to be a problem beyond the December? >> Well, I think that there are people who believe if you look at the stocks that there that that's too too dire. I happen to think that Micron I believe Micron and Sanjay Moroce when he says listen things are going to go up up up the stocks are saying otherwise the stocks are saying there's a peak in memory uh and that if they are rewarded with a peak in memory I think that that's probably the best stock in in in the world to buy I'm telling you look I my char owns micron I don't think there's a peak this stock is saying to me listen you more I almost cursed listen you you have to understand don't you see this as a peak you you you're so in love with it Are you really that in love with it? Are you transfixed? The stock is telling me I'm wrong. There's a peak. >> It is remarkable. I mean, you look at that that name. Uh most of the gains of the year came within about six or eight weeks. >> Exactly. So, I mean, I look I I hope I'm right, but hope belongs to the in the stadium. Like, I hope I'm right about the Giants losing to the Eagles, but I don't want to take the Eagles. >> Earnings are great. There's no two ways about it, but at some point the stock market starts to discount what earnings are going to be in the many months ahead of us. And the first sniff of an earnings peak, the stock market's not going to look the way it does. And you're not going to be able to cite the fact that earnings are as strong because people are going to say, "Yeah, you're right." >> Yeah. but they have peaked and as earnings decline then you can't be willing to pay perhaps the multiples that you're willing to pay today for some stocks within the orbit that I just said >> possibly that's what's >> possibly what you just described Scott is exactly what's happening right now with the likes of Nvidia and Micron um which if we would look at their valuation versus their growth rates I I think we would say that they're attractive but the point you're making is probably what the market is saying about those stocks is that a peak is here. I am not that worried about it. I mean, I want to acknowledge the investing prowess of Mr. Singer and Mr. Pollock at Elliot Management, but I have to also acknowledge that there's been a cottage industry for decades of finding the next Minsky moment, the next Leman Brothers. And I mean, I'm old enough to remember when private credit was going to do that earlier this year. I'm old enough to remember when Silicon Valley Bank was going to take things down. I get what I do instead of thinking about those things is I think about the core fundamentals. low unemployment, strong GDP growth, strong profit growth, even when you take out the paper gains. And I'll just, you know, I'll I'll end my saliloquy here on Nvidia. The next 12 months, it's likely to generate 300 billion in free cash flow. So, as much as we're agitated properly about negative free cash flow at the likes of Meta and Oracle, that negative free cash flow is creating positive free cash flow elsewhere. There is a virtuous cycle of money flowing through the economy right now and it's showing in all of the statistics that matter. I um I can't worry about the debt and deficit when that's been a problem for literally 26 years. >> Has there already been >> maybe there was signs of bubble, but it's been deflated. Yeah. So, this market topped in July. It's very hard to have a bubble if no one else is willing to play along. Um, bubbles aren't historically at least known to coincide with uh 16 months of multiple contraction. The if you think about the semi semi-equipment group that Joe is talking about in AMD, um they are 33% below their highs. The SMH itself is 24% uh below its highs, which is right about when situational awareness blew up. The semi uh stocks were in a 25% draw down. So, we're in that same draw down that we were in then without another situational awareness uh thing happening. Nvidia is 14 times forward earnings. The S&P value index by contrast uh uh price earnings is 17.9. So Nvidia is selling at a discount to value stocks. DRAM, which some would say is the epicenter of the bubble. Well, if it is a bubble, it was a bubble. It's 41% below its highs. Can you make the argument that it'll end up 80% below its I guess you could, but let's not act like people are frothing at the mouth for these stocks. They're not. >> Where where does it leave you on the memory names? >> I think memory um you know, obviously is becoming more and more important. uh you know for the AI industry and you know I think there is a point where like you know where h how much can prices go before they kind of destroy some demand and like you know people design around it but I think that the tailwinds are really strong there and you know they'll they'll continue to do well I do think it's like got to remember it's a cyclical industry um and so like that's just the biggest thing to like you know think about when you're investing in these names but they've had a growth tailwind for the last decade and because you know memory is becoming more important. It's harder to make these chips. There's AI data center chips that are different from commodities. So, um I think that's it's definitely more interesting industry and they've got a lot of tailwinds. >> So, AMD reports tonight, the shares are up 5% today. But, as Dan Clifton just pointed out, the data center trade has underperformed the S&P by 30 points, which he attributes to some midterm anxiety. Have you been buying the AI trade on all of these down days and buying it broadly? Yeah, I mean there's a lot of like, you know, costs here. I'd say that part of it is geopolitics, part of it is like, you know, kind of concerns about the sustainability, but I think that, you know, when you're looking at investing, you want to make sure you own the companies that are the best franchises that can grow share over the long term. [snorts] And, you know, I think AMD is one of those companies that uh they continue to do well. And you take a look at the longer term horizon. Yeah, they're cyclical uh dynamics, but uh you know, they've proven to like innovate through the cycle, which is really impressive. >> So, I can't shake you. I can't shake you on memory. I can't shake you on Apple. I can't shake you on who else, the chips. Um I mean, and and look, maybe with good reason. From where you sit, do you think these continue to lead the business cycle, lead the broad stock market rally? High conviction until until when or what happens? Yeah, I mean I think that uh you know I I don't think like you can expect one company to lead indefinitely or a group of stocks, right? So I I think that I kind of think about as like multi-year compounding and who's best positioned to capture that. Um and we're going to have cycles and downturns, but like you want to know in the companies that will kind of be like you said like lead on the other side and I think that is a lot of technology stocks um because of so much innovation going on. Um but you know we're constantly you know kind of you know assessing the risk of the market and rotating the portfolio. So um you know that's definitely you know in our minds as well. >> What is your favorite name right now? [snorts] >> Yeah I mean I think that uh look I think like semiconductors like the big franchise names like Nvidia continue are good. um you know AMD like we talked about uh you know I think Microsoft continues to compound really well and you know the models are more open like they will have a good position there with Azure and I think uh you know integrating their broader office suite. So um you know I think that you know these companies just have such good modes and they have a strong competitive uh kind of like set of set of characteristics with capital with compute with leveraging their install base. So, um, you know, I continue to like them, uh, over the long term. >> Uh, in your note, you talked about, uh, some of these cheap, uh, chip names. We just got just had a table with them, you know, the Nvidia, the Broadcoms, and Micron. I want to start though with Micron, uh, because after the bell last night when my Apple reported, they they said, listen, you know what? Uh, this the memory is going to be expensive. Everyone keeps saying memory is scarce. It's going to be expensive, and it's going to last for a very long time. And Micron shares just keep going down. You say buy it. >> Not only do I say buy it, I think the stock is worth three times what it's trading at. >> You got a 3,000 target on it. >> That is correct. And and I don't do that lightly. >> Micron right now is only 3% of the market cap of NASDAQ. It represents 10% of NASDAQ earnings over the next 12 months. >> If a year from now it trades at a market multiple that's $3,000. And as you pointed out, all I heard from Apple is we don't have enough memory, which means we can't sell enough computers and phones, and we just put $33 billion to secure 5 years of memory. Guess who's getting those $33 billion. It's Micron. They're set for the next five years. The market is absolutely not giving credit for that. >> AMD shares are jumping around, but higher by almost a percent. Uh the earnings are out. Sema Mod's got the numbers. Sema, hey Melissa, Advanced Micro Devices delivering a sizable beat on its bottom line. an earnings per share of $29 versus the $1.95 estimate. Quarterly revenue ahead of the street at 13.38 billion. The estimate was for 13.1. And take a look at the data center segment sales nearly doubling year-over-year and coming out ahead of consensus at 8.5 billion. Uh up 97% yearonear. A different story for client and gaming sales, which were down about 8% yearon year. And if we just break out gaming specifically, that business saw sales decline by around 40% due to lower semicustom and graphics revenue. Uh if we take a step back and look at non-GAAP gross margins in line with the street at 56% and sort of a mixed fourth quarter guide, it does see sales coming in at 17 billion. That's higher than the 16.2 estimate, but gross margins expected at around 55%. uh slightly below this street estimate of 55.3 but sort of pulling hairs there guys. Uh we will look for more comments on the PC market specifically. They don't they don't break out that line item. So we'll have to uh wait for CEO Lisa Sue to address the PC market what they're seeing there 5:00 p.m. Eastern when the call begins. >> Company reporting a strong beat on the bottom line and the data center segment topping expectations as well while nearly doubling versus last year. Joining us now is Stacy Rascan. is senior analyst at Bernstein with an outperform rating and a $650 price target on AMD. Uh Stacy, good to see you. U obviously the stock's been uh you know along with the rest in the penalty box. Does this get it out? >> Uh may certainly will help, right? I mean it it's it's taken it on the chin after Intel's results. If as you recall uh that stock's been down a ton. Uh they had a very poor client revenues. PC's markets have been in a lot of pressure um given the the memory dynamics and there were there were tons of worries that AMD would have the same fate and it's actually looking a lot a lot better. A AMD's client revenues did come in a little light but I don't think that is shocking at all and I overd delivered versus what Intel did. In the meantime, the data center business which is what everybody really cares about is is really overd delivering. They they came in something like $300 million above the street and then the revenue guide for next quarter is is well above consensus. Um, I don't know the relative mix of data center and client in the guide at this point, but I think it's unlikely that data center the implied data center number is going to disappoint given where the overall revenue is. Um, and if client is a headwind, it's it's the rest of the business is strong enough to to I think more than overpower it. And again, this is not something that their larger competitor necessarily saw. >> Yeah, clearly um the guidance into the end of the year is is very different from what Intel gave us, Stacy. But in terms of in terms of what AMD can say about the PC market, in terms of what AMD can say about the pressure of of memory prices rising into the next year, do you think they can escape um the headwinds that that Intel is facing? >> Yes and no. I mean, they probably can't escape it. That's a market issue, but it's a less of an issue for AMD. You have to remember like in in Q3, like the client group for Intel was almost half their revenues. Like for AMD, it's it's kind of upper teens. And as you go forward, AMD has more data center drivers. Um, they're still overd delivering on servers. Intel's manufacturing footprint right now is still a little offsided and so they're having a hard time getting the revenue to to supply the demand. And they also had that that Israel issue that that cost them some data center revenue. AMD is not suffering from any of that. And they also have the ramp of their new Helios Mi450 product which should be starting now and drives growth into into next year. Um, and so given all of that, the client piece of it is just a much smaller piece of their revenue than Intel. I think it's a lot easier for them, given the other drivers in the business to to work through it. >> So, what do you most want to get some color on here? I mean, given the fact that, you know, the entire group has been punished because of the sort of longer term concerns about pace and sustainability of of spending and and all the rest of it, what reassurance might you be looking for? Yeah, I think there's a there's a few things I'd want to see what they they see [snorts] for their own server CPU growth because uh the the whole like a Gentic CPU um story has really been pushing a number of names in the space. I'd like to see if they have any further revisions to their views. They've been very positive. Secondly, I'd like to see sort of the pace and trajectory of this MI450 Helios ramp. Again, this is the quarter Q4 should be when it really starts. Um and they've got a number of uh big wins that should be ramping next year. And so, what does the shape of that look like? And then thirdly, I'd like to get a look at gross margins next year. The the guidance for gross margin was a little light. They guided 55 and a half. We at 55. That's where they guided. I'm sorry. The stream was at 55 and a half. They guided 55. We at 55. Um the the the uh AI GPU business does have lower gross margins and it's got a it's got a lot of memory content as well. And like even even other players like Nvidia haven't been able to fully offset um the the the memory cost inflation. So, I'd like to see uh where they they want to decide to put gross margins next year. But, I'd say given what we're seeing right now, at least into Q4, um the margin trajectory at this point looks okay to me. Um but those are the three things I' I'd want to hear on this on this call. >> Okay. So, so [laughter] I'm just curious, Stacey, because it seems like that their their customers have not escaped investor skepticism even after reporting earnings. And so to to that extent, do you think that this group just gets continued to be caught up no matter almost no matter what they say and just the concerns about the hyperscalers their ability to finance a buildout that you know the ability of it or the willingness of investors to finance that build out? Yeah, you have to remember at least for AMD a number of the the ramps they have into um 2027, they actually gave warrants for those which which I don't really like but but I do understand like I always said like Lisa had to be on the rocket ship so she bought her ticket and the value of the warrants that they've granted in some sense are almost equivalent to the value of the the parts that they're selling. So I'm not really worried about like the the AMD the ability of their their named customers to finance at least the AMD trajectory at this point. I think for the broader universe, this this is a concern. Like the numbers have just gotten so big, you know, people worry about financing, they worry about power, and I I I think we're just going to have to over the next several quarters um just just see those buildouts happen and hopefully get confidence. And so I I don't know what AMD can say to move sentiment on that one way or the other. I will say, however, that the only ones that really seem to be worried at this point are are investors. the companies that are actually out there in the mix of this and actually doing the spending and doing the deployment, they do not seem terribly worried at this point. >> Right, let's get more on AMD. Bring in Wed Bush, a managing director of Matt Bryson. Matt, great to see you. He's got an outperform rating. A $600 price target on the stock. Um, looks good all around. What were some highlights from the call in your view? >> Um, it's all about the strength and data side. So, uh, they gave us a better number. They gave us a better guide. Uh they're talking about revenues being up in total 80% next year. Uh so that gives you 94 billion plus in revenue which is above where consensus was. Uh epic uh sales doubling. Um so all good. Um if you want to pick at things you can pick at gross margins a little bit but management was very upfront about saying that instinct is is lower gross margin. Our gross margins next year are going to be in the mid-50s. and that's what they're guiding for Q4. So all good. >> Do you think that this will give investors or do you think that you know the the lesson so to speak the takeaway from this report is that the data center buildout is on track that there is no slowdown that they've got you know this pipeline they have this clarity out there that they can see and therefore investors should not be as worried. >> Um I I [laughter] think that I [snorts] I mean that's that's where I'm coming up right. So we've heard from companies last week uh we heard from super micro today um AMD as well that that data spender spend is is really strong and so from a component supply chain perspective I I'm just not seeing any weakness. Um, having said that, you could say AMD is better positioned if you think about where Instinct is. Um, it's predominantly selling into the large clouds, so that there's a bit less NeoCloud exposure there maybe. Um, you could say with Epic that they're getting benefits from Magentic AI. Um, but with Epic, I I mean, everyone needs compute. So, if you think about someone like Core, we they're buying a lot of compute. And so, yeah, I I think I think AMD's numbers, Super Micros, they're they're good for everyone. >> Matt, uh, by the way, you should be happier, man. You seem kind of somber. [laughter] >> It's been a tough week. >> I bet it has. >> What? Help us think about how you think about the multiple on this one because again, we were talking earlier about, you know, analysts like some like to go out to 28 and 29. um you know you see these numbers for next year and what is a multiple that that feels uh like a nice growth multiple without saying this is extraordinary. >> Yeah. So I if like my rule of thumb is if you are seeing growth in the high double digits or your multiple should should somehow connect to to to your growth rate particularly if you've got expanding operating margins which they do. Um, so, you know, I'm certainly comfortable with with 30 times if they're growing at 80%. Um, I pushed AMD up to 40 times. I I think when you get above that, well, then then you start getting into uh kind of areas that are that are a little bit difficult to defend. Having said that, you know, Intel recently has been 50 60 times my numbers, which scares me. But with AMD, um, if we're going to see this growth continue through 27, 28, um, it it's not 40 times for very long. It's not 30 times for very long, um, because they grow into the multiple. All right, I hope you're all doing well today and staying calm in this market. Tuesday was a mixed day in a market ahead of Tuesday's midterm elections with many AI hardware and data center adjacent stocks trading in the green. AI hardware stocks got another positive boost shortly after market close thanks to AMD earnings. AMD reported strong quarterly results, beating consensus expectations on both the top and bottom lines. Revenue was up roughly 45% year-over-year, adjusted EPS up 74% year-over-year, and data center revenue was up 97% year-over-year. AMD guided Q4 revenue at roughly 17 billion, which beat consensus expectations by roughly 5%. What really stood out from this earnings report was that data center revenue accelerated, growing 27% quarter-over-arter versus sequential growth of 16% last quarter, and adjusted operating income grew roughly 27% quarter-over-arter compared to revenue growth of 16%. Meaning adjusted operating income grew at a faster rate than revenue. Overall, I would say these results and outlook are strong and they bode well for AI infrastructure stocks that have been under pressure in recent weeks. We also got earnings from Super Micro Tuesday after market close. What stood out from Super Micro's report was that the company raised its guidance. Super Micro guided fiscal Q2 adjusted EPS in the range of $166 to $1.90 at the midpoint that beat the consensus expectation by about 56%. Super Micros raised guidance helped lift AI infrastructure stocks in after hours. On Tuesday, the FT published a story saying that Nvidia instructed global cloud partners to reduce exposure to Chinese customers. And according to subsequent reporting, at least 51% of services under new contracts must go to non-Chinese customers. Existing agreements are reportedly exempt. At the time I'm making this video, Nvidia has not independently confirmed the reported 51% requirement. As I mentioned in Monday night's video, Apple leadership spoke about the memory shortage Monday night on the Apple earnings call, saying that what we're seeing with memory pricing right now is unprecedented, and Apple expects even higher memory costs for the December quarter. In related news, memory module manufacturer Team Group delivered a strong warning saying they expect the most severe supply demand conditions between Q4 2026 and Q2 2027. They see no downward pricing trend during 2027. Major suppliers 2027 production is already heavily committed through long-term agreements. They believe market balance may not return until the second half of 2028 or later, and leadership is being quoted as having said, quote, "How can prices fall when there's nothing left?" The recent comments from both Apple and Team Group are further indications that this current moment will likely last longer than the typical memory cycles of the past. The midterm elections in the US are the main event on Tuesday. At the time I'm making this video, results are not yet available. As a reminder, I'm politically independent and nothing that I say is motivated by politics. I'm purely talking about the markets right now. Overall, I do think the election is a clearing event that has been weighing on tech stocks in recent weeks. This is because there is notable push back against data center construction in this election cycle. Now, I do think that getting the election behind us will be an overall positive for the markets because it will remove a lot of uncertainty. The market hates uncertainty. That said, when it comes to AI stocks short-term reaction to the election results, I would specifically watch the Texas governor race. A large amount of data center capacity is being constructed in Texas, and the two leading candidates for Texas governor appear to have very different positions on the topic of data center construction. One candidate is generally open to data center construction, while the other candidate has been advocating for a moratorium on data center construction. And so the outcome of the Texas governor race will likely impact how AI stocks trade in the short term following the election. As I often say, remember to stay calm in this market. Remember to maintain a long-term perspective and do not make any hasty or irrational decisions. Looking ahead, we have Nvidia earnings on November 17th. Now, in case you're new to the channel, I want to make sure that you have at least a basic understanding of the underlying long-term thesis. So, let's cover that. Now, I don't know what's going to happen in the short term, but from a long-term perspective, I am very confident that Nvidia will be worth much more in future years than it is today. When Jensen was on the Lex Freedman podcast not that long ago, he was very seriously raising the possibility of Nvidia becoming a $3 trillion revenue company in the near future. If that happens in the coming years, then it is very plausible that Nvidia could one day be worth tens of trillions of dollars in market cap. That might sound crazy, but that's what Jensen is implying when he raises the possibility of Nvidia becoming a $3 trillion revenue company. I guess the question at that point is what multiple the street will be willing to give Nvidia. I don't know the answer to that question, but I truly do think that Nvidia will be worth much more in future years than it is today based purely on the fundamental growth of the business. Based on everything I'm seeing, the world is still computed and I expect that to continue at least through calendar 2028. In a computed environment, developers will use whatever viable compute they can get their hands on. Today, there are no GPUs that are sitting dark due to a lack of demand. Like there was fiber sitting dark due to a lack of demand at the height of the dot bubble. Back then, companies were laying fiber in the hopes that use cases and demand would eventually show up. Today, we are seeing the complete opposite. As I've said many times, when market participants compare this AI revolution to the dotcom bubble, they ignore the fact that the internet is already here this time. This means that mass adoption of the technology and new use case development at scale are immediately possible. We don't have to wait years for it to show up. It's already here. The world is compute constrained, which means there is not enough supply to satisfy demand. New capacity is utilized as soon as it comes online. The hyperscalers are monetizing capacity as soon as it comes online. Each of the hyperscalers spoke about being supply constrained on their most recent earnings calls. Additionally, many of the clouds are building out into contracted demand. They're not blindly building in the hopes that demand will eventually show up. No, they're building out because they have signed contracts and in some cases significant prepayments from their paying customers. This AI revolution is fundamentally different from the do-com bubble. And 2026 will be a pivotal year for the AI industry thanks to the rapid adoption of agentic AI and the proliferation of agentic systems in the world's leading enterprises. The leading AI labs revenues are surging right now. Agent coding and the implementation of agentic systems in large enterprises are new use cases that are increasing inference demand significantly that subsequently is increasing compute demand. The rapid adoption of agentic AI is why we're seeing an inflection in inference demand. It's why we're seeing the leading AI labs revenue surge. I wish both Anthropic and Open AI were public so the public could see the ramp in their revenues. I think the leading labs surging revenues may be the initial proof point that grabs market participants attention and causes them to realize that there will be a clear ROI on AI infrastructure. I think the leading labs surging revenues will also help assure investors of the longevity of Nvidia's growth since these labs revenues are directly tied to compute. If they had more compute, they would have greater revenues. It really is that simple. Demand is not the problem. The problem is a lack of supply to meet the demand. As I've said previously, I expect the world to be compute constrained at least through calendar 2028, possibly longer. And so regardless of what happens in the short term, it's important for long-term investors to remain focused on the fundamentals, maintain a long-term perspective, and remember that we are only in the early stages of aic systems being adopted at scale. This will increase compute demand significantly, and after that, the next surge in compute demand will likely be fueled by physical AI. We're no longer talking about digital agents performing digital tasks. With physical AI, we're talking about physical AI agents performing physical tasks in the real world. NVIDIA CFO has called physical AI quote a multi- trillion dollar opportunity and the next leg of growth for Nvidia. This industry will fundamentally transform society and Nvidia has positioned themselves to benefit massively. NVIDIA sells the hardware for the data centers where the models are trained. They offer omniverse where the models are taught and tested. And Nvidia also sells the hardware that allows ondevice real-time inference through NVIDIA AGX, allowing robots to have intelligent interactions with the real world, even when they are not connected to a data center. Notice that NVIDIA is taking a holistic platform approach to physical AI, and they're embedding themselves as the underlying foundation supporting all of it. Over 3 million developers are already building on the Nvidia robotic stack, and this is not getting enough attention. As for production ramps, Blackwell Ultra has ramped and remains in high demand. Vera Rubin is rolling out to customers. Nvidia Gro 3 LPX is in full production. Later on, we're expecting the launch of Reuben Ultra in 2027 and Fineman after that in 2028. We have a clear data center product roadmap stretching into 2028. And Jensen believes that AI infrastructure spending will reach 3 to4 trillion annually by the end of the decade. That means Jensen is expecting growing AI demand and an expanding total addressable market underpinning all of this. I don't think we are anywhere near any type of bubble bursting type of event. With all of this in mind, I seriously think that Nvidia still has plenty of runway ahead of it. And I think this company will be worth substantially more in future years than it is today. At least that's my view of the situation. Quick note before I wrap up. All of the compilations on this channel are edited by Finn Vid with original structure and commentary. Occasionally the same edits appear elsewhere on YouTube. If you're looking for the original version, it's always here on this channel. Thanks for watching Finnvid. I appreciate your support. Remember to stay calm in this market. Remember to maintain a long-term perspective and do not make any hasty or irrational decisions. With all of that being said, I hope you all have a great rest of the day and I'm curious to hear your thoughts about Nvidia in the comments below. Please leave a like on this video so more people will see it. And while you're down there, please consider subscribing. It's free and you can always change your mind. Thanks for watching and hopefully I'll see you in the next