Michael Nadeau

What's NVIDIA spending its money on?

It's spending its money on chips.

And TSMC, all the things that go into those chips, most of that capital, I think, is leaving the U.S.

and going to like Asia where a lot of those chips are manufactured.

So this is like the kind of the flow of capital.

And it all starts that the only thing you really have to understand here is like that this first step is the demand.

And where is that coming from?

I think every time a new model comes out, we just, you know, mythos came out, kind of blew everyone's expectations away.

And then that maybe creates even more demand for the next new model.

So as long as that stays there.

in this sort of FOMO-driven race to implement these solutions internally within these large businesses, as long as that's there and they feel like they're getting ROI on that, that I think this can continue

but it's sort of a Goldilocks type setup where like, what if there's a, you know, we know there's other risks in the economy.

What if China comes, we know China's building out lots of these models.

What if they introduce a model that just is way cheaper, you know, to use than some of the stuff that's already out there.

So, you know, you just got to kind of think about like, what would break the demand?

Is there some change in the technology that could potentially come?

Is there some unexpected thing with,

return on investment that people aren't projecting, that would, you know, potentially reduce some of that demand at step one.

And then that's what would make the sort of CapEx investment and everything else look like it was getting frothy and maybe overbuilt.

I don't think we have signs of it being overbuilt just yet because the demand's there.