Zaid

Next, let's talk about agentic AI.

On the earnings call, CEO Jensen Huang declared that agentic AI inflection point has arrived, and he called it the next chat GPT moment for the industry.

Now, what agentic AI refers to is AI systems designed to execute complex, multi-step tasks with limited human supervision.

These are AI systems that don't just answer questions, they actually take action.

These AI systems could be used to monitor patient data in hospitals and flag issues, or detect cybersecurity threats and respond in real time, or maybe manage entire supply chains autonomously.

And the reason why the rise of AI agents matter for NVIDIA is up until now, NVIDIA's revenue growth had been heavily concentrated amongst a handful of hyperscalers.

But Agentech AI is expanding AI adoption into the enterprise world.

you know, I'm talking banks, hospitals, manufacturers, logistics companies, they're all gonna be needing computing power to run these AI agents.

So that means that Nvidia's customer base could get a lot broader.

Next up, let's talk about China because this might be the most underappreciated part of the bull case.

Right now, NVIDIA generates $0 in revenue from China.

Keep in mind, China is the largest semiconductor market in the world, yet NVIDIA makes no money from them.

And this is all because of export restrictions, but that might be changing soon.

So the backstory here is that NVIDIA has been locked out of China because of US export restrictions, but the US government recently granted NVIDIA a license to export a small number of their powerful H200 chips to China.

But that's just one side of the equation because now the Chinese government has been hesitant to allow Nvidia's chips into their country due to its own national security concerns.

China also wants to funnel support to their homegrown rivals like Huawei.

But Bloomberg recently reported that the Chinese government began telling tech firms like Alibaba that they can prepare to start ordering Nvidia's chips.

And the market has already adjusted to Nvidia not being in China.

So whatever revenue that Nvidia ends up making is just upside.

Jensen seems to think this could be a $50 billion opportunity.