Robert Peston

Michael Burry, many in the media have been talking about this depreciation of certain assets.

In particular, we're trying to work out just how long an NVIDIA GPU lasts.

Is it three years, four years, five years?

And the company's sort of doing accounting work.

I wouldn't say tricks, but accounting changes to try and understand how long these assets really last.

From your perspective, what is the asset that we should be analyzing?

What is the underlying accounting we should be keeping an eye on?

I would say even broader picture, what we really need to track is the investment that's been taking place.

There's been a significant investment wave really across assets, and this is just part of the broader story.

What we're really going to need to see from an economic perspective is this translate into meaningful productivity growth.

If we don't see that, then we risk a capital misallocation story.

Just a couple of minutes time, we're going to go talk about applied materials, the chip equipment maker.

But that story illustrates that right now there is still an issue with tariffs and with China and with trade policy.

Yes.

How is that impacting the global economy right now?

But it also introduced a structural issue, right?

We have an annual renegotiation period, for example.

Realistically, we're getting about one year visibility into overall prices.

We're about to get a bit of visibility next week with our so-called Super Bowl when it comes to NVIDIA's fundamentals.

But when you're giving analysis, when you're thinking about strategic advice, do you think the commitment to continue spending by big AI players is there and is there globally at the moment, Natalie?