Sam Dickie: Fisher Funds expert on Nvidia's quarterly results going up

Despite growing concerns about the AI bubble, Nvidia's shown it won't be popping any time soon.

The company's quarterly results have smashed expectations and it recorded a 22 percent jump in profit from the previous quarter.

Fisher Funds expert Sam Dickie explained further.

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Episode Transcript

Speaker 1 (00:09):
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Speaker 2 (00:16):
The AI bubble may not be popping anytime soon if
you have a look at what's just happened to Nvidio.
The latest quarterly results smashed expectations off the back of
fierce demand for its chips to power the AI. It
recorded revenue of a tick over fifty seven billion US dollars.
It's a twenty two percent jump from the previous quarter.
And Sam Dickey from Fisher Funds is with us. Hello Sam,
Hello Heather. Now what did you make of this result

(00:38):
and what did we learn about the broad health of
AI as a result of it?

Speaker 3 (00:42):
Yeah, I mean you said it was another stonking result
from the biggest company on Earth. So revenue and earnings,
we already saw pretty lofty or inflated expectations, but they
beat expectations by about three percent for the quarter, and
critically they guided forecast revenue and profit to beat the
expectations by even more, about four to five percent. So,

(01:02):
as you said, there was fairly palpable fear for the
last I'd say probably ten trading sessions in the market
of the AI bubble was bursting, and this has at
the very least temporarily calmed the market. So we saw
that play out after market in videous years jump five percent,
and any stock it even smells like it is exposed
to AI, they rarely pretty hard. So Applied micro Devices, Oracle, Broadcom, Google, Amazon, Meta,

(01:25):
Microsoft all up two to four percent after ours.

Speaker 2 (01:28):
Did it calm fears of the bursting of the AI bubble?

Speaker 3 (01:32):
Yeah? I think it has, at least temporarily. So you know,
every time he reports, Jensen is getting more and more
granular with with his guidance and his forecasts. He's now
sort of forecasting half a trillion dollars of revenue to
be shipped over the next sort of fourteen months, and
that's getting quite specific, and he has good a line
of sight on that. So I do think this was
a critical resultant for now fears are calmed.

Speaker 2 (01:55):
Okay, Now I want to talk about something else as well,
which is the US consumer. Tell me what you make
of the health of the US consumer. If you look
through the eyes of home depot target, you know, that
kind of.

Speaker 3 (02:04):
Thing definitely a vastly different story for the all important
US consumer. So those companies were generally or incrementally more cautious.
So Home Depot think of Mino ten or Bunnings on
steroids and one of the biggest retailers in the US said,
consumer uncertainty and continued pressure and housing are disproportionately impacting

(02:25):
home improvement demand. And importantly, while it had been primarily
the lowering consumer that was hurting hither you and I
have talked about that, that is now spreading to the
middle income consumer target the massive general merchandise I said,
consumers are continuing to trade down and he cheekily equipped
about Christmas. He said people will prioritize what goes under

(02:46):
the tree rather than spending unnecessarily on what goes on
the tree. And Lowe's competes with Home Depot, while feeling
it a little less said visibility remains poor.

Speaker 2 (02:57):
What does this all mean for investors? Do you think?

Speaker 3 (03:00):
I think it really shines a clear spotlight on the
extraordinary two speed economy in the US, AI and all
spin related to AI and everything else. So it's a
reminder that a couple of handfuls of AI winners and
the S and P five hundred since chat GPT was
launched in November twenty twenty two. Like the start of
the modern AI bonanza, those stocks have driven seventy five

(03:23):
percent of the gains, and the S and P five
hundred eighty percent of the growth and earnings and ninety
percent of the growth and capital expenditure. And outside of that,
the economy remains or visibility on the economy remains very
very poor.

Speaker 2 (03:35):
Hey, thank you very much. Sam has always appreciated and
we'll talk to you again soon. That Sam Dickey Official funds.

Speaker 1 (03:40):
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