FULL INTERVIEW: Why I Think Nvidia Is Perfectly Positioned In The AI Race

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TBPN 29 min 4 speakers 8 chapters transcribed 1 month ago
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Is Nvidia’s stock decline a sign of trouble for the AI market?

Jordi Hays 0:00
Hey Kim, how are you doing? Thank you so
John Coogan 0:03
much
Jordi Hays 0:03
again
John Coogan 0:04
for taking the time to come chat with us.
Tae Kim 0:06
And
John Coogan 0:06
congratulations on the lawful launch of your business.
Tae Kim 0:10
Yes. Thank you. I mean, it's been really gratifying. Yeah. That first day, you you never know who's going to show up. Totally. I was like maybe fifteen subscribers or twenty subscribers, but like hundreds of people showed up, tons of billionaires and tech founders. It's insanely gratifying.
Jordi Hays 0:26
Yeah, it's great. Uh incredible. So uh is it is it over for NVIDIA? They're down twenty one percent we just read since the fifty two week high. Is it doom and gloom? Is it over?
Tae Kim 0:40
I mean I think I was o on last December and the stock is the semis and chips have gone up and now they're back down to where they were in December. Um the chip sectors Flat flat on the year and video's down ten percent. And it reminds me a lot of about a year ago. Do you guys remember Everyone's freaking out about Deep Seek, the super efficient models. We're gonna destroy uh AI compute. Uh there will be a huge compute glut. And then everyone freaked out about Trump's Tower Fours of Liberation Day. And this year seems very similar to that. Almost it's like Groundhog Day. We have fears over AI CapEx. People think that it might be the peak. And then we have the Iraq war. And uh one of these things is
John Coogan 1:24
boil up here. Iran. Yeah, easy to get them mixed up. They happen. So feels like the same same thing over. Yeah.
Tae Kim 1:31
But um Sorry to
John Coogan 1:34
distract. We wanted to throw we wanted to we wanna show respect.
Tae Kim 1:41
I mean it's very similar to IRA for that that's why these
Jordi Hays 1:44
views. These are great.
Tae Kim 1:45
Uh but you know hundred dollar oil this stuff is unsustainable and oh profit subside.
Jordi Hays 1:51
Okay, so so so because way when I when I I like the deep sea canalogy and I feel like the market half digested the agentic coding uh narrative and the Citrini article, whether you thought it went too far, was too hypothetical, like clearly the markets did react and a lot of names sold off. But in in a world where you believe that narrative, you would think that NVIDIA would be going up. Up, but you're saying that there are other factors at play that are sort of uh tamping down the excitement in the market broadly? I
Tae Kim 2:21
mean there there's no doubt. Just like tariffs a year ago Nvidia had thirty percent drawdown when their business was actually flying, yeah, actual fun belt of the business. I think the same thing's happening here with the Iran War uh

Why does inference demand from AI agents and coding assistants matter for Nvidia?

Tae Kim 2:34
Things will eventually subside. Oil can't be hundred dollars for forever and Trump will probably backpedal in the next few weeks uh ahead of the Trump
Jordi Hays 2:41
So let's uh let's recap a few of the key stories around NVIDIA. We just came off of GTC and there's a lot going on uh at the company. I mean it's a huge company. Uh maybe it'd be good to start with just uh next generation chips, changes to strategy, what people are actually buying, maybe that means uh grace CPU standalone sales or the the development with the Grok partnership. What's sticking out just on the actual AI product side to you that you're most excited about?
Tae Kim 3:14
Well, inference demand is exploding, driven by the AI agents and coding assistants. Um what I met with uh Ian Buck, I met with dozens of uh engineers at Meta, Google, NVIDIA, and all of them are seeing crazy uh inference demand and AI compute shortages. So across the board People are And crazy clamoring need for AI. And
Jordi Hays 3:37
we're and we're I mean we're yeah, you're seeing that from talking to engineering leaders at big tech companies, but we're also seeing it from vibe coders who are just on X and Twitter and talking about how they're hitting rate limits and they're they're subsidizing they have multiple plans and they actually shift around from one model provider to another just to make sure that they're getting the tokens they need to build whatever they're building.
Tae Kim 3:58
And you see the tweets, like people are like um building uh bots to to pick up any kind of B two hundred GPU that can that oh yeah after waiting like weeks and months or whatever. Exactly.
Jordi Hays 4:13
I can't believe that.
Tae Kim 4:14
Um And the the the great thing is Jensen, you know, he's very prescient.

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