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 (00:00):
The AI bubble may not be popping anytime soon. If
you have a look at what's just happened to Nvidia.
The latest quarterly results smashed expectations off the back of
fears 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

(00:21):
and what did we learn about the broad health of
AI as a result of it?

Speaker 2 (00:25):
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, as

(00:46):
you said, there was fairly palpable fear for the last
I'd say probably ten trading sessions in the market that
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 video shares 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,

(01:08):
Microsoft all up two to four percent after ours.

Speaker 1 (01:12):
Did it calm fears of the bursting of the AI bubble?

Speaker 2 (01:15):
Yeah? I think it has, at least temporarily. So you know,
every time he reports, Jensen is getting more and more
granular 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 result, and for now fears are calmed.

Speaker 1 (01:38):
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 thing.

Speaker 2 (01:50):
Definitely a vastly different story for the all important US consumer.
So those companies were generally incrementally more cautious. So Home
Depot think of min 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 home
improvement demand. And importantly, while it had been primarily the

(02:14):
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 the tree
rather than spinning unnecessarily on what goes on the tree,

(02:34):
and Lowe's competes with Home Depot, while feeling it a
little less said visibility remains poor.

Speaker 1 (02:40):
What does this all mean for investors? Do you think?

Speaker 2 (02:43):
I think it really shines a clear spotlight on the
extraordinary two speed economy in the US, AI and all
spinning related to AI and everything else. So it's a
reminded that a couple of handfuls of AI winners in
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

(03:06):
percent of the gains in 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 1 (03:18):
Hey, thank you very much. Sam has always appreciated and
we'll talk to you again soon. That Sam Dickey Official.

Speaker 2 (03:22):
Funds For more from Heather Duplessy Allen Drive.

Speaker 1 (03:26):
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