Greg Smith: Devon Funds Management expert on Nvidia's record sales

Despite growing fears about Deepseek's growing presence, tech giant Nvidia is reporting an impressive sales result.

Nvidia reported a surge in fourth-quarter profit and sales as demand for its specialized Blackwell chips, which power artificial intelligence systems, continued to grow.

This has also boosted the company's stock.

Greg Smith from Devon Funds Management says Nvidia has pulled ahead of all its competitors - with only Apple narrowly beating it out.

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Episode Transcript

Speaker 1 (00:00):
Right now, the most valuable company in the world has
reported its results today. Its market cap is more than
three trillion dollars. It's California based computer chip manufacturer in
Nvidiat reporting sixty nine billion New Zealand dollars in revenue
for the first three months to January twenty six. That
is a record number for the company, which means it's
probably a record number for the world and better than

(00:21):
forecast we're predicting. Greg Smith is with Devin Funds. He's
the head of retail, Greg Good Evening.

Speaker 2 (00:27):
Good at Earning Royn.

Speaker 1 (00:28):
So what are they doing. Well, there this new chip
that they've got high uptake for that.

Speaker 2 (00:32):
Yeah, that's right to these high performance, high tech chips.
So they say it's all about AI. Demand sells up
nearly eighty percent, as you said, and this the growth
has slowed down if you go over the past yet
was sixty five percent goaick a year ago as two
one hundred and sixty percent is slowing down a bit,
But yeah, certain there's certainly sort of kicking goals in

(00:53):
terms of the demand for their chips. There's no denying that.
And it's really been reflecting the ship. I should look
at that it's up nine hundred percent since early twenty
twenty three and the only company worth more in the
world of Apple, and it's worth thirty times more than
the entire value about stock market. So not bad for
a company that was founded in ninety ninety three over
a coffee at the Dennis.

Speaker 1 (01:13):
Is Apple back ahead of it because then video was
ahead of Apple. Is Apple back out in front now
are they?

Speaker 2 (01:19):
Yeah? That's right. This would have been sort of jostling
for position a bit. But Apple, of course is also
on the AI trainers are all the big tech so
they are hoping that that sort of drives the next
round of upgrades in their iPhones. But in the media
that controls around about eighty percent of the AI market,
So you're seeing the likes of Amazon, MESA, Microsoft, Google,

(01:41):
they are all customers. It's all about this exponential growth
of the cloud as well. Yeah, you think chat, GPT
and those sort of AI models. They require these high
performance chips. So look, there's no denying demand this seeing
and you can actually argue that even at three point
two trillion US dollars, it's not it's trading on evaluation

(02:02):
of around thirty times and to give you an idea
frition Plogal healthcare in New Zealand is very nearly fifty
times and it's growing at a slower rate. But I
guess the key thing to arts rhyme will be, you know,
are they going to have it their own way and
in finetem which is possibly not the case. And one
real interesting thing that people might have heard off of
this new Chinese startup Deep Sea and are basically claiming

(02:24):
that you don't need these high performance chips that in
video producers to run their AI model. So that's not
proven yet, but yeah, if that is does prove to
be the cation, and it could be really have really
strong implications for in video.

Speaker 1 (02:38):
People are still a bit skeptical about that claim at
this point, and I think it's fair to say investors,
but what about the fact that they're now making more
off their data centers than anything else?

Speaker 2 (02:47):
Oh? Absolutely, and yes it's ninety one percent. It's in
video have been around a long time, you know, they've
been around It's the early nineteen nineties, so you know,
it's really only the lasted a few years that have
been seeing some explosion and growth from data centers. And
in fact it's risen tenfold over the past two years.

(03:07):
So that's that's where really where all the growth is
coming from. You know, these the data centers that used
to sort of have and company buildings are sort of
now moving away from that, and that's sort of what
it's all about. And now we're seeing the likes of
big tech. You know, obviously we've seen them in New
Zealand as well. There's been a real proliferation of them.
So that's in videos writing it. You can't argue that

(03:28):
they're seeing a demand. I guess the thing will be
on the other side and how these big tech companies
actually monetize this. So that's probably going to be the
next interesting thing. And you know, some are perhaps rightly
comparing this to what happened in the dot com boom,
and some of the old enough to may remember that
the biggest company in the world was Cisco. You go

(03:49):
back that time is actually double Microsoft now that's still around,
and they used to they produce routers, and that was
going to be the next big thing. They are currently
valued at a couple of hundred billion news dollars. So yes,
things can change. You can go from being a darling
to a not so darling so but for now and
videos simply riding away.

Speaker 1 (04:07):
Yeah, interesting and we'll see what the Chinese have got
to say about it. Thanks Greg, Greg Smith, Devon Funds,
head of Retail. For more from Heather Duplessy Allen Drive,
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