all right folks listen AI is here it's not going anywhere in fact according to IDC spending is going to reach 632 billion dollar by 20 uh by 2028 right we're talking about compounding average growth rate of almost 30% now the IDC report also another report that I thought from deoe points it out pretty well because within that space obviously it's generative AI or geni uh banking Transportation telom Insurance consumer technology Finance Pharmaceuticals all major consumers of it but still there's a sense on Wall Street that the party is already over for the pxs and shovels
leader Nvidia well my next guest says he's very bullish on Nvidia want to Bringing out emj Capital founder Eric Jackson all right so Eric you're a true believer that geni will live up to the hype right True Believer died in the wall all right so here's the thing one reason the street is sort of not necessarily against geni per se but they've s on Nvidia they keep talking about increased competition AMD just made a $5 billion acquisition how close is the race for leadership there I I still think we have a ways to go Charles
because it's not even two years since chat GPT first debut and I think we can all remember first playing around with chat GPT and and thinking like whoa this is like way more sophisticated than anything I've ever used before but and now we're up to chat GPT 4 but you know that all these hyperscalers like the the Googles the microsofts uh the metas they're all working on their own models open AI working on chat GPT 5 and six and there was a an interesting video that came out last week with Eric Schmidt talking to some
students at Stanford where he said he thinks that each of those big companies is probably going to have to spend $300 billion dollars on Nvidia chips over the next few years to get to where they want to go and I think the reason why is that um there was there was a podcast invest like the best really popular Finance podcast that came out today with an interview with Gavin Baker where he said um Larry P just quoted as having said internally at Google I'm willing to bankrupt this company because we have to win at this
llm war this geni war with with versus Facebook and others because we're creating a digital God here and that you know that that's never h you know that's the race that they're on they're going to keep buying Nvidia chips until that happens and it's so ironic it was the Google earnings report that kind of sent these names tumbling and and they said as much I didn't I still I'm still confused what Wall Street saw in that report that spooked everyone all right let's talk specifically Nvidia in terms of these earnings reports streets looking for 28.7
billion I want to point out to the audience first quarter was 26 billion uh they're also looking for earnings of 64 cents what are you looking at let's just start start on the revenue side what do you anticipate that we'll see maybe Revenue operating margins and earnings per share sure well well you I think it's all it it all comes down to the Top Line I think um people want to know that they didn't just meet expectations for the top line and as you say they're supposed to do something just under 29 billion in revenue
for this quarter but equally if not more important is what they guide to for the Topline for next quarter and so right now uh I think the expectations are something like you know around just under 31 billion for next quarter so you you ideally want to hear them come out and say hey we we cleared the bar uh we did 30 billion in the trailing quarter and we did something like you know 32 33 billion um you know is what we're guiding to in the next quarter we know that they're going to be have an
incredible gross margin 76% or something like that um so that that's sort of like that that's baked into the cake it's all top line and it's all expectations so there is risk that they don't you know they don't achieve the high bar that's there but that's that's what they guided to last quarter and the stock you know had a huge bounce afterwards I think we're going to see that there's still insatiable demand for these chips the Blackwell delay concerns is kind of like you know it doesn't really matter I think that's starting to fade even
ahead of this number I got to jump in here because I I want to spend a little bit of time we only have about a minute or so everyone dreams of buying a stock that becomes the next Nvidia right now of course you got to buy it and hold it and and live through the ups and downs that's the part no one really talk talks about I read when you had a conversation with your son you gave him these three names right defi technology open door and upstart as potential 20 Baggers uh I never heard
of defi tell us about it defi is is in the crypto space but they they run a bunch of ETFs over in Europe so and they're a small company they're they're less than a billion market cap uh and that's one of the keys if you want to find a 20 bagger you got to start small I love Nvidia but to 20 bag from three trillion that's gonna be tough so di is is small it's cheap it's has something like a 3X Ford price price earnings uh multiple versus people like coinbase and Robin Hood who have
like 40x Ford pees so I think it's just going to continue to do well and perform and people will Discover it that's why I like it the other two names that I like that that you had on there before were open door which is trying to be like the carvana for for realy you can basically go to their go to Open Door type in your home and they'll make you an offer and if you want to you can accept right then and there uh they're the only player kind of left over uh nationally to do
this kind of business model they're just on the verge of profitability they've been forgotten about uh they've been they're sort of like a levered housing play and they you know the stocks been like trading in the doldrums for for a couple of years now I think they're about to wake up just like carvana has woken up over the last year and then the last one is upstart uh people remember it ipoed in late 2020 at 20 bucks went to 400 bucks and went back to 12 bucks uh but now it's sort of come come alive
again uh they they use AI to approve people for personal loans and auto loans and this sort of thing uh now we have the the Tailwinds of the FED cutting interest rates that's going to help them they could go back to 400 and Beyond especially over the next five years you know Eric what I like what I like about the what you're saying here is uh you know some of these names have already made these big moves we know when it comes particularly to Tech the hype goes ahead of the move you know the fundamentals
don't necessarily evolve as quick as the hype they come back down but if they do live up to the initial hype like Nvidia did because Nvidia was a stock that was talked about big time and it crashed and went sideways for a decade until it went up a gazillion percent hey Eric thank you very much let's talk again soon okay thanks Charles all right
