'THE NEXT NVIDIA': Wall Street expert names 3 stocks that could explode

Summary

The discussion centers on the future of AI, particularly generative AI, and its massive economic potential. IDC projects AI spending to reach $230 billion by 2028, with a nearly 30% growth rate. The focus shifts to NVIDIA, a leader in AI chip technology, with debate around its market position amid rising competition from companies like AMD. The conversation highlights how major companies, such as Google and Facebook, are investing heavily in AI, driving demand for NVIDIA's chips. Eric Jackson remains bullish on NVIDIA, citing top-line growth and strong market demand, despite Wall Street's concerns.

Takeaways

• 💰 A.I. is rapidly growing, with spending projected to reach $230 billion by 2028, driven by a 30% compounded growth rate.
• 📊 Generative A.I. is a key area of focus, with industries like banks, transportation, and telecom being major adopters.
• 🏦 Despite positive trends in A.I., there is skepticism on Wall Street about the future prospects of NVIDIA.
• 🤖 Competition is heating up, with companies like AMD making significant moves to challenge NVIDIA’s dominance in the space.
• 🔍 Big tech companies such as Google, Microsoft, and Meta are investing heavily in their A.I. models, spending billions on NVIDIA chips.
• 💡 The focus is on A.I. models like ChatGPT, which have evolved rapidly in a short span, with further improvements anticipated.
• 🧠 Industry insiders like Eric Schmidt emphasize that major players are willing to spend vast amounts on A.I. to maintain their edge.
• 📈 NVIDIA's financial performance is under close scrutiny, with high expectations for revenue and growth guidance in upcoming reports.
• 🚀 Investors seek companies that could become the 'next NVIDIA,' targeting smaller, high-potential stocks for outsized returns.
• 🏠 Examples of potential high-growth companies mentioned include GFY in the crypto space, Opendoor in real estate, and Upstart in A.I.-driven loans.

Q & A

What is the current forecasted growth rate of AI spending according to IDC?

According to IDC, AI spending is projected to grow with a compounded annual growth rate of nearly 30%, reaching $230 billion by 2028.

Which industries are the primary consumers of AI technologies?

Banks, transportation, telecom, insurance, consumer technology, finance, and pharmaceuticals are among the major consumers of AI technologies.

What has Wall Street's response been toward NVIDIA, despite the growth in AI demand?

Wall Street seems to have cooled on NVIDIA recently, possibly due to increasing competition and high expectations, even though NVIDIA has been a major player in AI chip supply.

Who is Eric Jackson, and what is his perspective on NVIDIA?

Eric Jackson, founder of EMJ Capital, is very bullish on NVIDIA, considering it a leader in generative AI technology and crucial to the industry’s development.

How has the competitive landscape in AI chips shifted recently?

AMD recently made a $5 billion acquisition, aiming to compete more directly with NVIDIA in the AI chip market, intensifying competition.

What spending predictions did Eric Schmidt share regarding major tech companies and NVIDIA chips?

Eric Schmidt suggested that major companies like Google, Microsoft, and Meta might each spend approximately $300 billion on NVIDIA chips in the coming years to maintain their AI capabilities.

What was Larry Page’s reported perspective on the competition within AI?

Larry Page reportedly emphasized the importance of winning the ‘LLM war’ against other tech giants, suggesting he would even consider risking bankruptcy to ensure Google’s lead.

What earnings expectations does Wall Street have for NVIDIA in the upcoming quarter?

Wall Street expects NVIDIA to report approximately $27.8 billion in revenue and $0.64 earnings per share, with a projected revenue target of around $31 billion for the next quarter.

What is Eric Jackson’s view on insatiable demand for NVIDIA chips?

Eric Jackson believes there is still an insatiable demand for NVIDIA’s AI chips, which are seen as crucial for the ongoing AI developments by major tech firms.

What companies did Eric Jackson suggest as potential high-growth investment opportunities similar to NVIDIA?

Eric Jackson suggested GFY (crypto), Open Door (realty), and Upstart (AI-based loan approval) as companies with high-growth potential, describing them as potential ‘20-baggers’ due to their innovative approaches in their respective markets.