Key Points
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Nvidia (NASDAQ: NVDA) now commands an estimated 92% share of the global AI chip market, earning the title of “backbone of the AI industry” and fueling its rise to a $4 trillion market cap.
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CEO Jensen Huang is actively lobbying for continued U.S. chip sales to China, arguing that restricting exports could push China to develop rival chips, ultimately hurting American industry.
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Despite recent volatility tied to U.S.-China trade policy, Nvidia continues to show strong investor appeal, with recent pullbacks seen as potential buying opportunities ahead of Q2 tech earnings.
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Watch the Video
Transcript:
Douglas: So, Jensen Huang is the founder and CEO of Nvidia
[00:00:14] Lee Jackson: I am familiar
[00:00:14] Douglas: The stock is up a hundred billion percent since, in 10 years. And here’s the reason. It was a computer graphics company. I mean, it was their, their business was to make graphics for gaming computers. I don’t wanna say they got lucky, but they certainly got dropped into the right lane and turned out to be the guys who make it was described yesterday by the Wall Street Journal as the backbone. the artificial intelligence industry. I think they have 92% the AI chip sales in the United
[00:00:50] Lee Jackson: Which is just so incredibly stunning.
[00:00:52] Douglas: not in the United States. Everywhere. Everywhere.
[00:00:55] Douglas: he’s gone to China recently. His argument is, is that look, encourage the Chinese to make their own ships? gonna figure out how to make chips that are almost as good as ours.
[00:01:06] Douglas: Let us sell them chips. You have a US company making a lot of money. the, if the Chinese are gonna backdoor our chips, let’s make money on it. And it’s a com. It’s a compelling argument. Why shouldn’t, why shouldn’t Nvidia bring in a hundred billion dollars in ships from China instead of having China do what they did with, With EVs, and that is to just rip off the Tesla, you know, technology and the design and
[00:01:35] Lee Jackson: Yeah. And, and build your own. Yeah. And it’s interesting because Huang is, is, is now he’s, because he’s the epitome of the American dream and, and what you can do in America, you know, and now he’s actively lobbying for American technology to be totally reassured here. So all of it can be built here and that’s an interesting conundrum ’cause will they be able to onshore? Sure. You, you can do computers and things of that nature, but some of the other items may be a little more difficult to onshore it won’t happen overnight.
[00:02:16] Douglas: I think the onshoring question is boils down to the same thing usually. And that is, can you get labor costs to the point where you can make things, let’s just use this chip. Can you get labor costs down to where you can reasonably compare
[00:02:31] Lee Jackson: Right.
[00:02:32] Douglas: things you could have manufactured outside the United States
[00:02:35] Lee Jackson: Okay.
[00:02:36] Douglas: Okay. And I don’t know what the cost of labor you’ve got in the United States, whether that’s. I don’t know if it’s possible to do that. it is, it could be one of the great Onshoring events in history because you’re taking one of the most advanced products in the world and building it in the United States.
[00:02:55] Lee Jackson: Well, he painted it with a, a pretty broad stroke, so he was talking computers and laptops and phones and everything like that. But yeah, you’re exactly right. And what I think will really prove to be interesting is one of the major shoe companies, and I’m not sure if it was Reebok or who it was, but the CEO said, you can’t make athletic shoes in the United States, which translates to there’s no child labor there that works for a dollar a day or a dollar an hour or whatever the, you know, the prices are in Vietnam. So is this like a kind of wishful thinking on a lot of this, or is there a way they can pull this off?
[00:03:32] Douglas: see how you can do it, but l look,
[00:03:34] Lee Jackson: Not everything.
[00:03:36] Douglas: Nvidia is the first $4 trillion company in history market cap.
[00:03:41] Lee Jackson: Yeah.
[00:03:41] Douglas: And I have to tell you something, this company is such a powerhouse that if you said to me it’s the first 5 trillion, $6 trillion market cap company, wouldn’t surprise me because this is the best businesses and these guys are arms merchants, right?
[00:03:56] Lee Jackson: Yep.
[00:03:57] Douglas: All the other tech companies have to buy from them. Right.
[00:04:01] Lee Jackson: At least for now. But yeah, I mean,
[00:04:04] Douglas: Probably
[00:04:04] Lee Jackson: the case.
[00:04:05] Douglas: time.
[00:04:06] Lee Jackson: Yeah, I agree.
[00:04:07] Douglas: Probably for a long time
[00:04:08] Lee Jackson: Yeah, I agree.
[00:04:09] Douglas: I love the company. I love the management. He’s in this debate now about whether, AI is gonna kill white collar jobs. His argument is they aren’t. You get actually people, as people get more productive, they get more creative as they get
[00:04:25] Lee Jackson: The history shows that that’s not the case.
[00:04:27] Douglas: Well,
[00:04:28] Lee Jackson: had a discussion on this earlier today and and, and it’s very true. We’ve gone through huge technological change over the last. 200 years or whatever, it has never, ever cut out all the jobs because new ones are created as a result.
[00:04:43] Douglas: yeah. Well anyway, to me Nvidia [(NASDAQ: NVDA)](https://247wallst.com/companies/nvda/) is a buy. It’s a buy at $4 trillion. It may well be a buy at $5 trillion. We’ll see what their earnings, but,
[00:04:55] Lee Jackson: Well, it closed today at 1 64 or right at $164. You know, a, any sort of backup would be a good, you know, entry point. And it’ll be interesting to see how the stock does through the technology earning cycle of the second quarter. And those numbers are soon to come our way.
[00:05:16] Douglas: Well. did pull back when there was this debate over whether the federal government would allow them to sell chips in China. I think at one point it pulled back to about 95, so
[00:05:30] Lee Jackson: it got to 90 and I was looking at it thinking, yeah, this is
[00:05:34] Douglas: guess what? If you’d bought, and that’s not long ago. We’re not talking a year
[00:05:37] Lee Jackson: no.
[00:05:37] Douglas: We’re talking a few months ago. you’d gotten in at 90 or 95, you’d look like a genius.
[00:05:44] Lee Jackson: You’re, you’re up 65% already. Yeah. Alright, well, we’ll, we’ll wait to see how the tech earnings go and, we’ll, we’ll get back to everybody.
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