Lou Whiteman

If you look at 2026,

it's going to spend over $100 billion on servers.

Let's think that through.

One of the leaders in this space is Dell.

I know we don't talk about Dell very much, but it's a leader in servers.

You look at this stock right now, trading at only 10 times its forward earnings.

I wouldn't be surprised if Dell had a bumper year this year in 2026 with all the spending that these hyperscalers will put out on servers.

Yeah, it's a great point, Travis.

The margins in all of these businesses are extraordinary.

And so it does make perfect sense to double down.

What is so hard to parse out, though, is because those margins are so high, all of them have an incentive in some way to compete better when it comes to those things.

Exactly.

It's the famous line from Jeff Bezos, your margin is my opportunity.

If we circle back to Nvidia, the operating margin right now is around 60%.

It was 20% several years ago, which is also quite good for an operating margin, three times that now.

And so, if you think about this, all of the other technology companies, they would love to take away some of this revenue opportunity from Nvidia with their own products.

You look at Alphabet creating the TPUs, you see all of these companies, and as well with the clouds as well.

Nvidia has incentive to not have all of its eggs in just the hyperscalers clouds.

It wants the Neo clouds to succeed as well.

And so you do see it investing in the Neo cloud so that the Neo clouds can buy its GPUs.