November 19, 2025 • 36 mins
Technology stocks—particularly AI-related companies—have experienced several challenging sessions. In this episode, Jon reviews the latest market activity and examines how NVIDIA’s highly anticipated earnings report may influence trading sentiment heading into tomorrow. The discussion explores potential market reactions, key metrics from the report, and what investors are watching across the broader tech landscape. This analysis also ties into broader themes relevant to wealth management Reno, including how market updates and sector trends factor into ongoing portfolio conversations.
👉 Watch this episode on YouTube: www.youtube.com/@thejonsanchezshow
👉 To learn more about retirement planning and wealth management in Reno, visit: sanchezgaunt.com
Compliance Disclosure: This program is for informational purposes only and should not be considered investment, tax, or legal advice. The views expressed are those of the participants and may not reflect the views of Sanchez Gaunt Capital Management. Investing involves risk, including the possible loss of principal. Past performance is not indicative of future results. Always consult with a qualified financial professional regarding your individual situation before making financial decisions.
👉 Watch this episode on YouTube: www.youtube.com/@thejonsanchezshow
👉 To learn more about retirement planning and wealth management in Reno, visit: sanchezgaunt.com
Compliance Disclosure: This program is for informational purposes only and should not be considered investment, tax, or legal advice. The views expressed are those of the participants and may not reflect the views of Sanchez Gaunt Capital Management. Investing involves risk, including the possible loss of principal. Past performance is not indicative of future results. Always consult with a qualified financial professional regarding your individual situation before making financial decisions.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:04):
Good Wednesday afternoon to you. Welcome to the John Sanchez
Show on Newstalk seven eighty.
Speaker 2 (00:07):
Kn't wait.
Speaker 1 (00:08):
It's a pleasure to be with you in a pleasure
to be with my co host, my partner in life.
Speaker 2 (00:11):
Mister.
Speaker 1 (00:12):
No, not that, no, no, no, we're both straight, trust me.
We're both married to females.
Speaker 3 (00:18):
This is a this is a new world we.
Speaker 2 (00:21):
Live exactly, but it might as well be partners.
Speaker 1 (00:24):
I guess I could say that because we spend so
many hours together and you know, spend more time working
than we do with our you know, female spossors. How
about that, yeah, night, so yeah, yeah, exactly, twelve thirteen,
fourteen hours a day's oh my goodness. Well, thank you
all for joining us today. We do appreciate it. We
(00:44):
got a great show lined up for you today. You know,
rarely do we ever spend the entire show talking about
one stock, but we're going to today and that one
stock that we're going to be talking about is in
the video.
Speaker 2 (00:59):
Now.
Speaker 1 (00:59):
Again, we can tell you are Bicell recommendations, but we're
not going to We're going to to make your own decisions.
Speaker 2 (01:05):
That's not why we're picking this.
Speaker 1 (01:07):
The reason we're going to talk about Navidia for basically
the entire show is because the company released the earnings
numbers after the close, and we of course are going
to go through the entire earnings report with you, but
more importantly, we're going to answer the question as follows,
why is Navidia so important to the world of AI?
(01:29):
And the data points that we're going to be sharing
with you is absolutely amazing things that you are going
to learn of why this company is everywhere. I just
got off the conference call. It's still going on, you know,
obviously I had to get onto the show, but Jason
was it was amazing to hear again how involved this
(01:50):
company is in so many aspects of AI and how
I just want to give the first point.
Speaker 2 (01:58):
Listen to this, folks.
Speaker 1 (02:00):
Every AI model we're talking chat, GPT, Gemini, Claude, autonomous
driving systems, robotics runs on GPU computing, and of course
Navidia is the dominant player in that market. Without Navidio hardware,
we don't train large language models at scale, and without
Navidia hardware, Jason, I don't know if a I really
(02:21):
wouldn't exist. I mean to be honest with you, it's
such a it's such a dominant company and reflective by
the earnings and what the stock is done in the
after hours, et cetera. It's fascinating before you come in
and I can see it coming out of your mouth here.
I just want to throw this in before I forget, folks.
I highly recommend there is a great segment. And I
don't know how old it is, but as I was
(02:44):
on YouTube last night when I was eating dinner, sixty
Minutes did a story and again I don't know how
old it was.
Speaker 2 (02:51):
I think it was maybe a year or two old,
but you still get.
Speaker 1 (02:53):
The picture, and it was a my gosh, I think
it was almost a two hour interview. You're not your
normalst sixty minutes, but interviewing Jensen Wog and following him
around and looking at the programmers and just everything that
goes on, you know, quasi behind the scenes. I was
blown away, Jason, I was literally blown away, and I
wanted to look at that to get again a more
(03:14):
intimate look at what goes on with the company, because
obviously we knew that Ernie's numbers were coming out today.
But highly recommend, you know, go to go to YouTube,
just do a search for sixty minutes and find that
segment about Navidia just mind boggling.
Speaker 2 (03:27):
What's going on there?
Speaker 3 (03:28):
Yeah, I mean they talked about revenue numbers to the
tune of five hundred billion dollars and you know, the
next year or two, and it I think it's just
the fact the adoption has gone so parabolic with all
things AI. You know, now it's first it was a
(03:49):
first generation. We've been using AI for a long time, right,
it's just now more the fact that using GPUs things
that are infinitely faster, and now these things are built
truly just to do this one task is sort of
you know, like using a LS motor in a tiny
car to go fast. Now they're building this motor merely
(04:09):
to create generative AI, to create video, to create all
of these things. And it's just a case where tech
technology is going so fast that it is virtually impossible
to keep up catch up. And that's why the lead
that they have is just continuing to be so far
ahead of anyone, merely because they're trying to get to
(04:30):
where nvideo is now and by the time they get there,
they're so far ahead.
Speaker 2 (04:35):
And yes, I don't see.
Speaker 1 (04:36):
I'm glad you bought that point out, because I don't
see how that could ever happen. They are and I
don't know what metrics you'd use to say they are
light years ahead of everybody else. Probably pick any metrics
and they're going to be light years ahead of anybody else.
And again, it's just mind boggling what this segment that
I watch that I was referring to what it reminded
me of is. And you've brought this up many times.
(04:58):
This was a little They've been around a long time,
you know, twenty five plus years, but this was a
little company, little company that had the chip inside for
gaming computers, right, That's I mean, I remember that. I
remember so many times over over my career, Jason, where
you know, we get ahold of our our I T
Man Trevor Sharton and say, okay, you know I call
(05:18):
him t Man.
Speaker 2 (05:19):
Okay, t Man. I you know, I need a new CPU.
Speaker 1 (05:22):
And sometimes he'd come back to me with, you know,
an a m D chip or an Intel And I
remember one time he came back to me with a
Navidio chip and I'm like, Who's And this was obviously
a long time ago, Who's Navidia?
Speaker 2 (05:34):
You know?
Speaker 1 (05:34):
I mean, I didn't even know who they were much
less I am not going to allow them to be
in my cpu. That's you know, I'm using my day
to day and you know, look at me now, ma,
right right, But it's amazing. And so I got a
little trivia for you that you'll you'll see when you
watch this segment. They again, they followed him at conferences,
meaning Jensen Wong, the CEO. They fall in with at
(05:55):
conferences and everything. And then they went to a Denny's
there in uh in Silicon Valley and they walk in
and you know, and they sit down here in the
sixty minutes reporter and Jensen's eating a big stack of
pancakes and everything, and he goes, you see that booth
over there, and you.
Speaker 2 (06:10):
Know, they look over and just a normal corner booth.
Speaker 1 (06:14):
The reporter goes, yeah, he goes, that's where Navidio was formed.
That's where he and his I think it was two
original partners sat and created Navidia and that Denny's booth.
Speaker 2 (06:26):
Think about that.
Speaker 1 (06:27):
Think about any of you that ever doubt that you
could not create a multimillion or in his case, trillion
dollar business in your garage, in your bedroom, wherever it
may be there's another prime example that can be done
anywhere if you put the right people together.
Speaker 3 (06:40):
Yeah, and it's so interesting that, I mean, like we're
going back. Is the velocity of change. I would argue.
The only way that they fall behind is merely because
the people who utilize it can't keep up with the
speed and choose the second or third best merely because
it's cheaper, right, And that's.
Speaker 2 (06:59):
What But you can't you can't go cheaper.
Speaker 3 (07:03):
I mean, I mean, AMD has products, other products.
Speaker 1 (07:06):
No one's gonna choose those chips when they when they
to your point, to your point, sayret you that's rude
to me. To your point, the only reason I would
see that they would choose an AMD or an Intel
or some of their competitor is, if I'll use the
world simple term, if Navidia is sold out of what
they need. But even those companies' products, even if they
(07:27):
can get them, they're not gonna come, not even to
compare to the Navidia chips.
Speaker 3 (07:32):
I mean, at some point they will get beat just
like you know, my thirty plus years ago, my forty
nine ers won a Super Bowl. Ever again, dynasties, are
you know, tough? Tough part about being king, right, is
everyone's coming after us. So if you made me guess,
it's going to be a Chinese company that beats them.
So you know, nobody wants to hear that, but they're
(07:53):
in a spot where they have to go produce something
uh and large without the help of all of the
technology that we have now right where a MD can
sort of look at what Nvidia's doing. And if you
get a country or you know that's has smart people
(08:13):
and they need to go build something on their own
because they don't get access to all the technologies here,
you tend to get different ideas right, different ways of
doing things. So you know, again I'm not forecasting a
Chinese victory, but it'll be someone else that's a way
off the radar that's forced to go make something quicker, faster,
better and not do it the same way or try
(08:35):
to mirror what you're doing. So but yeah, I mean,
they they're they're amazing. The market caps shows it. But
like anything that someone's always coming after.
Speaker 2 (08:43):
The king, always coming after you.
Speaker 1 (08:46):
And then I guess the counter argument to what you
just said regarding Chinese companies will be, well, yeah, China
wants Navidio chips. They're not getting them, at least at
this point. They may you know, could new technology come
out like as I just uttered, you know, we got
that scared there for a while to your point with
deep seek, right remember a while back. Of course, cheaper, faster,
(09:07):
less cooling power, so on and so forth. But yeah,
but at the same time, you know, my bed is
on is on them for at least in the in
the near term. But it's folks, this whole thing is
this it's mind boggling to the average person. And we're
going to try to keep this, you know, in somewhat
English term, not use a lot of fancy technology terms
(09:28):
and things like that. But you know, the gist of
what we're going to try to accomplish with you this
afternoon is, of course, when we come back from the break,
we're gonna go through what the earnings numbers did, after
the stock recap, go through what the earnings numbers did,
what the stock is doing in the after hours. And
again I use this comment Jason when I was doing
the stock updates this morning with Jake, and I said,
you know, the market was just kind of flat for
a long period of time, and it and it I said,
(09:48):
this last time the day of Navidia's earnings, and I
said it again this morning. This company has become so
important to Wall Street because remember, folks, it is it's
it's held in the S and P five hundred is
that doubt? Ponet is a NASDAK component. The maybe Jason
during the break, you could dig up some stats for
us on you know, how what was it?
Speaker 3 (10:09):
I mean Nasdaq wise after the close, right, it's nine
percent of the NASDAK. I was going to say eight
percent after the close the queue or the I can
say it now, the cues were up a percent, which
implies it's seventy percent of that one percent was just
in Vidia, right.
Speaker 2 (10:23):
So okay, see that one more time. Please say that
one more time.
Speaker 3 (10:25):
So it was it's a nine percent weight I believe
in the in the NASDAK.
Speaker 2 (10:30):
I thought eight but yeah, whatever, but okay.
Speaker 3 (10:33):
Probably now, but so eight nine percent up six seven percent? Right,
you can back into a one percent move after the close?
How much of that is purely just just in Vidia moving?
And it was close to seventy percent of the one
percent move was just merely in Vidia up. It's not
larger tech ripping after the close and kind of quickly
(10:54):
before the break. To remember, if they're talking about seventy
sixty seventy percent margins and they're talking about five hundred
billion dollars in revenue, at some point these hyper scalers,
who were the spenders, right, the metas, the Googles, et cetera,
Where do they call uncle? Right? Where do they say,
we can't spend as much because of all the pullback
(11:16):
we've had over the last two weeks is around Oracle
and they're dead, No, no Oracles having problems, And how
are these guys going to spend all this money and
open AI? They're spending one and a half trillion dollars
and upah, Either in Vidia's margins need to compress or
the spending needs to change. And so that's the part
that the market's going to struggle with, regardless of how
(11:39):
good in Vidio's numbers. Not to be a bear, but
those are just the reasons why the market acted the
way it did over the last couple of weeks coming
into these results.
Speaker 1 (11:47):
And we go through these phases, right, yeah, we always
talk about the concern about this, concern about that, and
then ultimately you get some a turning point like like
we experienced today with or in the after hours, what
this stock is doing after this great earnagury report.
Speaker 2 (11:59):
I'll oh go back to an.
Speaker 1 (12:01):
Analogy that came to mind as you were saying that,
and that is why doesn't Russia fire a nuclear missile?
Why doesn't the US fire nuclear missile? Because if we
fire one, they're going to fire one. To the point, yeah,
So to your point, why would Microsoft cry uncle and
stop spending because they know that Meta is not going
to or vice versa, right, they know their competitive because
(12:21):
this is such a competitive gain. So I think the
biggest turning point would be if if finally, you know,
I don't know, I'll pick a hypothetical time period five
years from now. These companies have spent by that point
trillions of dollars building up data are dat data centers,
I just want to call them data farms or server farms,
data centers that kind are. But you know they they've
(12:43):
spent trillions of dollars building that data centers and obviously
everything AI related, and then there's just no money to
be made. But I'll tell you all you have to
do is listen to this conference call and what we
what we tend to forget about is how many areas
of life that is touching?
Speaker 2 (13:01):
Right?
Speaker 3 (13:01):
Has it made again scratching the surface exactly?
Speaker 2 (13:04):
All right? Yeah, easy starting business.
Speaker 1 (13:06):
It's cool to use it as your is your search
engine now, but folks, it is so much deeper heat.
Speaker 2 (13:12):
Yeah.
Speaker 1 (13:12):
J just one went through and talked about, you know,
just just a few fortune five hundred companies of how
they're using AI technology to enhance their their their services
and products.
Speaker 2 (13:22):
And bottom line. Uh, you know, the bottom line is
going to improve.
Speaker 1 (13:25):
But things like you You've mentioned this many times, cancer
research and biotech and things that that they're we never
could be done just with the human You need this,
this incredible power of AI.
Speaker 2 (13:35):
So thouscin eighty all.
Speaker 1 (13:36):
Right, we're just getting started, warmed up on the world
of AI and once again why is Navidia so important
to the world. We'll come back, hit on the market,
hit on their earnings numbers with the stocks soon after hours,
and continue our discussion. Start over Christen snow right now
traffic center. Hello, Kristen, welcome back to the John Sanchez
Show on his took seven eighty k O. It's with
(13:57):
Jason Gunn. All right, here's how we finished up and
we're gonna get to our top way. Navidia is so
important to the world again, earnings released after the closes,
highly anticipated and put it a delivery will tell you
all the details and then get into our topic of
you know, why is this company so valuable? Why does
everybody pay so much attention to it? How it influences
your portfolio, whether you own it or not. I promise you,
(14:17):
the majority of you if you have money in the
stock market in some former fashion, Navidio's influence in your performance.
All right, here's how we finished up. Forty seven point gain.
Is all wild wild ride today roughly, you know, I'm
going to say for the last time I checked three
twenty three fifty swing lows.
Speaker 2 (14:32):
To the highs.
Speaker 1 (14:33):
It was all over the board today. But again finish
for the very small gain forty seven points. As I said,
forty six one thirty eight Na's deck. She was a
bit more steady as she goes one hundred and thirty
one point rise point five to nine percent, closing at
twenty two five sixty four s and p up twenty
five or point three eight percent, closing at a level
of sixty six forty two on the commodity side oiled
(14:54):
down about a dollar thirty nine to fifty nine twenty
nine a barrel, eighteen dollars and twenty cent rise on
goal to closing level there four thy eighty two dollars
and twenty cents, and we turned things over to the
bond market at not much action.
Speaker 2 (15:08):
One basis point increase on the tenure to yield a
fourth thirteen.
Speaker 1 (15:11):
Jason, Let's real quick before we get to today's activity
in the Navidia, let's talk about the FED minutes that
came out today.
Speaker 2 (15:19):
They're kind of screwed up at the FED right now.
Speaker 1 (15:22):
They don't know what they want to do come December,
according to the minutes of this October meeting.
Speaker 3 (15:27):
And I don't I think, you know, as much as
I hate to say it, I think they lack a
little bit of leadership at this point right the concern
I mean, Powell probably clearly is ready to be done
just giving all the comments. And I don't won't even
repeat the comment recently, you know, they're down to about
a one third chance now of cutting rates in December.
(15:47):
I was talking to a client this morning and I said,
I still feel that the FED should be focused on
the labor market just given all the AI that we'll
talk about now and into the future, and concerns of
labor compression over the next year, that could be because
of that. It also could be just not necessarily AI specific,
(16:09):
as in AI replaced my job, but my boss isn't
hiring anyone because they're working on all these AI initiatives
that they think are going to reduce the need for people.
Therefore they're not going to add people. And I think
that's going to be part of why we see the
job market decelerate.
Speaker 2 (16:29):
But if i'm the Fed, two reasons.
Speaker 3 (16:32):
One, I support the labor market because a Trump's already
said you're an umschool. If you don't cut rates, you
have that air cover. But that aside, if the economy decelerates,
inflation will solve itself, right, And so you should continue
to support the labor market as your mandate merely because
(16:53):
that's more the unknown than some massive spike in inflation
of some kind. And you always have time next year
to slow things down. But the market coming into today
was what a fifty percent chance of a December cut,
but it looks.
Speaker 2 (17:06):
Like it's far less than that now. Yeah.
Speaker 1 (17:08):
Three part of the Digest thirty three point probability today.
Speaker 2 (17:13):
Now.
Speaker 3 (17:14):
Yeah, Actually after the minutes right where they it seemed
that some were for it, some were against it, some
you know, we're drinking. It was like you said, there
was usually consensus, maybe one dissenter. This seemed more like
you grabbed ten people off the streets, ask them all
their opinion. Uh, you know on politics you got ten
(17:37):
different answers.
Speaker 2 (17:38):
Yep.
Speaker 3 (17:39):
So Low's numbers were better than expected. That was good
to see, kind of offset bad numbers out of Home
Depot recently. But you know, I think the market overall
was just waiting for Nvidia today given positioning underweight. People
certainly have been trimming a lot of the hyperscalers, even
in Vidia since it got north to two hundred bucks.
But yeah, I think we get a little bid tomorrow
(17:59):
and tack. Hopefully it continues into the future. But if
the Fed's not going to cut rates, that will become
a little bit of a concern, just giving this market
loves sterile.
Speaker 1 (18:08):
That's why this report of Navidio was so important today.
Many animalsts are saying, look at if we get a
good report out of Nvidia, this could carry us through
the momentum into the rest of the year exactly to
your point, because pretty much the odds are obviously, as
we just said, very diminished that the Fed's going to
cut rates in December. Again, whether you're not such a
stupid thing to put so much credence into it makes
(18:29):
really no difference.
Speaker 2 (18:30):
It just drives me this. But real quick, were gonna break.
I want to go back to Sething said. It's very
interesting you're talking about the job.
Speaker 1 (18:37):
You know, the Fed's mandate again, you know, full employment
is one of their mandates and keeping inflation and check
the other an AI. The jobs that are that are
being lost and that will be lost to AI. You know,
I wonder if you, if you had a real private,
honest conversation with some of these FED members, if they'd go,
you know what, Yeah, that's our mandate, full employment. But
(18:59):
there's not much we can do about it. And stop
and think about this for a second. There really isn't, Jason,
There really isn't a lot that FED can do to
that hypothetical business owner you just mentioned. They're not going
to hire or fire because again either they they're starting
to put AI into their business or or they're going
to so either way, they're they're deer in the headlights.
Speaker 2 (19:19):
They're paralyzed.
Speaker 1 (19:19):
They don't know what to do on the hiring side
of things, or if they do decide to hire. You know,
there's still not a lot of quote people out there
that are really productive when it comes to AI.
Speaker 2 (19:33):
It's such new technology.
Speaker 1 (19:34):
It's not like you can, you know, if you're in
office or something, or let's say even a manufacturing company,
you know, put an ad out there and see if
can get somebody with AI experience. No one really has
that other No, I've screwed around with chat GPT every
Friday night, you know, and so.
Speaker 2 (19:50):
So you know, I said something girlfriends, that's right, that's right.
I'm very good with jod you got it? Do you
see that?
Speaker 1 (19:58):
On CBC this morning, the gentleman and I forget his name,
just wrote a book. A private equity guy, been around forever.
He has his own personal AI bot. Now he's they
focus on investing in early stages of technology. He has
his own AI bot. And the host of CNBC said,
you know, how do you use this? And he goes,
(20:20):
it's amazing. I mean, he went through how it you know,
tells him what his day is going to be. The
schedules things, form responds to emails. I mean just boom boom, boom,
boom boom.
Speaker 2 (20:27):
Then again like there you go.
Speaker 1 (20:29):
Every one of us are going to have our own
AI bot before we know it, every one of us.
But anyways, back to the FED and employment. I said
this on the show yesterday and I'll say it again.
I am convinced that before we know it, I'd say,
within two years, we're going to be eight to ten
percent unemployment. And that's where it's going to stay. There's
(20:49):
going to be that many people unemployed because of AI
and and those that don't respond to it and adopt
to solopreneurship ideas and or retrain themselves so they are
again more employable with other companies, they're gonna get left behind.
And Jason, I wanna, I want to just mention something
(21:10):
to our audience. Who's you know, our extended family here,
what's going on in our firm? Take a moment and
and tell the audience what's going on with the ad
that you placed on. Indeed, we're looking to hire two
new team members for our staff. Tell them the number
of of responses that you've already had. I've never seen
(21:30):
this I've ran this company for thirty five years. Usually
you get two maybe three responses if you're lucky.
Speaker 2 (21:36):
Tell them what's happening.
Speaker 3 (21:37):
Yeah, yeah, we're currently hiring an operation associate inside the office,
help all the advisors and talk to all of our clients.
Speaker 2 (21:45):
Uh.
Speaker 3 (21:46):
And we've got over forty applicants in less than twenty
four hours for my lifely er and very qualified, good people.
Speaker 2 (21:57):
Yeah, yeah, I saw a couple of the rest.
Speaker 3 (21:58):
Anyone's listening. You know, you want to come work at
a solid firm, and you got it like technology, and
I want to deal with coconuts like the two of
us exactly, Sanchez gone dot com.
Speaker 2 (22:11):
That's right, very good. Yeah, it's but I was amazed
when you told me how many, how many responded to that.
Speaker 1 (22:15):
It's like I said, I most, I think the most
I've ever seen. I think three when I've posted ads
over the years, three and most of those were like
white and.
Speaker 3 (22:24):
We use perplexity to write the ads.
Speaker 2 (22:29):
We walked the walk and talked the tug.
Speaker 1 (22:31):
See maybe that's a secret that was It was my
dumb butt that wrote the ads before and now yeah
a I wrote it and look at the response.
Speaker 2 (22:39):
It just it's amazing, folks, It is amazing. All right.
Speaker 1 (22:41):
Well, the company that's behind all this, of course, is Navidio.
So we're gonna come back. We're gonna tackle what the
stock is doing in after our session. We're going to
tackle what the earnings report was that was released at
about one thirty this afternoon, and then we're going to
get into our topic once again, why is AI so
very important to the world and to all of you
that have money in the stock Market's turned over to
Jack Saban thicking Weather. Jack, welcome back to the John
(23:06):
Sanchez Show on News Talk seven eighty KOH with Jason Gont.
All right, here's once again how we finished forty seven
point gain on the Dow. Now's that a coup one
hundred and thirty one, SMP gaining twenty five. What a
difference one company can make. We're watching the after hours
right now. Dow features are now up one hundred and
fifty seven, nasdacs are up three hundred and thirty four,
and the sp Future is gaining sixty one. Just started
trading a few moments or forty two minutes ago, all right,
(23:29):
so it is time to get to the company that
is responsible for this turnaround at least that we're seeing
for the moment, and that is the video.
Speaker 2 (23:35):
So here's what we're gonna do.
Speaker 1 (23:36):
We're gonna tell you what the earnings report was, tell
you what the stock student in after hours, and then
we're gonna answer the question why is this company really
so important to the world? No longer just to you know,
a few people. It's to the world, folks. That's how
powerful in the video is all right? Say with the
stock student in the after hours? First of all, so
it was strong in kind of again a very volatile tape.
(23:57):
Today finished up five dollars and sixteen cents two point
eight five percent to a close of one eighty six
fifty two right now in the after hours, tack on
another nine dollars and forty eight cents, rising five point
zero eight percent now to one hundred and.
Speaker 2 (24:09):
Ninety six dollars per share.
Speaker 1 (24:12):
Uh, mister Gan, let's see fifty two week high on
the stock.
Speaker 2 (24:16):
Where are we about? Yeah?
Speaker 1 (24:17):
Two twelve, nineteen twelve yeap October twenty ninth, right before Halloween.
Speaker 2 (24:22):
Yeah, it'd be nice to break through that one. Yeah,
all right, man, let's go, let's go on these numbers
you want do you want me to do it? What
do you mean? Prepare?
Speaker 1 (24:29):
All right? Here we go, folks, All right again, highly
anticipated earnings report because they're so involved in everything and
so influential all the major averages.
Speaker 2 (24:38):
But here we go.
Speaker 1 (24:40):
The company made a dollar thirty a share. Estimates were
a dollar twenty five rev. Fifty seven point zero one
billion estimates fifty four point nine two billion. They said
they expect about sixty five billion dollars in sales in
the current quarter versus analyst expectation of sixty one point
sixty six billion. So now we've got three beats, right,
Jason got earnings per share, we got revenue and sales expectation.
(25:03):
Three beats there. Net income amazing. Net income for the
quarter rose sixty five percent compared to a year ago.
Came in at thirty one point nine to one billion dollars,
about a dollar thirty a share. A year ago they
quote only made nineteen point three to one billion, or
seventy eight census share. Jason and I were talking about
(25:24):
this during the break. Pretty staggering increase your net income.
Anybody can increase top line, but increase your net income.
But I guess when you're going with seventy percent operating margins. Right,
it's not hard to do.
Speaker 3 (25:36):
So, right, every time I make a sandwich, Yeah, I'm
making seventy cents for every dollar.
Speaker 2 (25:41):
There you go, There you go.
Speaker 1 (25:43):
Company of Courses now the most it has been for
a while, the most valuable publicly traded company in the world.
Let's see any other numbers. Their data center sales. Let's
go over to this real quick. In the video said
they had fifty one point two billion dollars and data
center sales, surpassing Wall Street's estimate. Oops, missed this one.
Forty nine point zero nine billion in the quarter, a
(26:05):
sixty six percent increase.
Speaker 2 (26:07):
Year over year.
Speaker 1 (26:09):
Jensen Wong on the conference call that I listened to
Jason it was amazing when he was talking about data centers,
and I didn't I'll be the first admit I did
not understand some of the lingo that he was saying.
But essentially, they do it all in the data center, right.
I mean it's not like they do you know, Part
A and they got a subout Part B and C.
(26:30):
I mean, the switching and just everything they do. It's
like they've got it. They got it almost monopolized in
a sense. And I know I'm getting really simple here,
but that was one of the GISTs, and now I
can understand why after seeing those numbers. Now, of that
fifty one point two billion, forty three billion in revenue
was for compute or the company's GPUs. Company said that
(26:53):
much of the growth was driven by the initial sales
of the GB three hundred chips network here we go
read the article. Further driven by the GB three hundred
chips networking or parts to allow scores of GPUs to
work as one computer account for eight point two billion
in the data center sales.
Speaker 2 (27:09):
That's what I was trying to say, all right.
Speaker 1 (27:12):
Their finance chief said in a statement that the company's
best selling chip family now known as Blackwell Ultra second
generation version of the company's blackwelled chips. The company has
five hundred billion dollars in orders for twenty twenty five
and twenty twenty six combined. The CFO said that number
is going to grow. Let's see anything else here. Yeah,
(27:38):
Jacson and I were joking in the break they're gaming
gaming revenue. It's like, well, I really miss them with this,
you know, for three video game chips four point three billion.
Professional visualization business was seven hundred and sixty million in sales,
so on and so forth. So they also said they
made twelve point five billion dollars share repurchases and paid
two hundred and forty three million in dividends during the quarter.
Speaker 2 (28:01):
See dividen Yale.
Speaker 1 (28:02):
Yeah, just two tenths of a percent, right, not much
of a dividend there for seventy.
Speaker 3 (28:08):
Percent operating margins. Don't pay a dividend exactly, do more things. Go,
spend that money and grow the business.
Speaker 2 (28:14):
That's right.
Speaker 1 (28:15):
Dividends absolutely all right, my friend, you anything you want
to add before we get to why this company is
again so important to the world.
Speaker 3 (28:24):
Yeah, I mean again we know him now for AI,
the you know, the pedestrian functionality is uh using chappie chat,
GPT or perplexity, et cetera for searching or potentially automating
some of your tasks. You know, the next gen is
more you know, having lunch with a CPA in town,
he was very smart about technology and talking about the
(28:45):
visualization part. Uh, that's really the next stage. But when
these things well, uh right now, we train it on data,
we trade it on information. Go look for this go
And I don't mean eyeball, look for this, but go
search for this information, Go make some sort of inference
or some kind or go create a fancy video that
(29:05):
I've trained you on. Think of a use case in
the future. And you know, again, I don't want to
steal the thunder. But the once these machines can actually
see things and make assumptions versus read read in data,
that's where you take that next step. And that's what
not blackwell, but I be it's not Hopper, it's whatever.
(29:28):
The next one is. It is the chipset that is
more focused on the visual so generative, predictive. Yeah, again,
that's alongside. But the ability to truly visualize things and
then make inference from them, to go, you know, see
(29:50):
a tree and make all sorts of assumptions about said tree.
Speaker 1 (29:54):
That's pretty much here already. I mean, you and I
are both big fishermen. You can you can do it
with fish identification, with AI, you can do it with plants.
You can say, here's a picture of this, tell me
what it is and tell me everything.
Speaker 3 (30:06):
So the intervening, but the next chip set is very
much focused on that part, on visual identity, visual training.
Also the generative aspects of video.
Speaker 2 (30:20):
Right, So.
Speaker 3 (30:22):
Your bot, for example, being much better suited to have
a conversation, and it sees you and makes assumptions about
your visual versus maybe you typing in things and such.
Speaker 2 (30:34):
So it's it's.
Speaker 3 (30:36):
There's a long runway. I still feel we're in the
third inning of where this inevitably goes.
Speaker 2 (30:42):
Absolutely I already know the name of my bot.
Speaker 1 (30:45):
I'll tell you what it is when we come back
from the break, right, create one, you got his name?
Speaker 2 (30:49):
All right?
Speaker 1 (30:50):
To wrap it up with Christen snow right now traffic
Center kerr Risten, Welcome back to the John Sanchez Show
on News Talk seven and eighty k O, which with
a Jason all right, is a quick reminder if you
missed any of our shows, by all means, plick us
up at your favorite podcasting distributed site site place all
(31:11):
over the place. YouTube everyone, all right? Why is no
video so important to the world. We're gonna run through
this real quick because we're running quickly out of time.
So here's the first reason, folks, why navidia and right now,
uh nine dollars and sixty seven cent game after ours
five point eight percent all right, one ninety six nineteen
come on two hundred. All right, So for those of
you not real familiar, if you don't know the stock,
(31:32):
or you know you just hear the name, here's something
I want you to remember. The video makes the picks
and shovels of the AI gold rush. Right, This is
essentially what AI is. It is the next gold rush. Okay,
every AI models, I said at the beginning of the show,
chet GPT, Jimini Claude autonomous driving, the robotics they run
on GPU computing, and Navidia is the dominant leader there.
Well that Navidio hardware. We don't train large language models
(31:54):
at scale, like Jason was mentioned earlier, you got to
train them. Second reason the video is so important to
the world market dominance eighty to nine vy percent market
share of AI GPUs there are H one hundred, two
hundred and B two hundred and Blackwell series are effectively
the industry standard. No other company comes close. AMD and
Intel are meaningful, but still far behind. As Jason mentioned earlier,
this near monopoly gives Navidia pricing power, influence, and control
(32:16):
over the pace of AI development the Kuda software. This
is mentioned a lot by Jensen Wong on the conference call.
A few moments. Ago is the software ecosystem, and it is,
as many call it, the secret weapon. Kuda is Navidia's
proprietary software platform that developers use to build AI applications.
Once you're building on Kudah, switching away as extremely difficult.
(32:37):
Giving Vida Navidia enormous moats. Right, we talk about mots
in business. So you know, you build a moat around
like a castle. You have a moat so the competitors
can't come in, and it builds stickiness. Think of Kudah
as the iOS of AI. Locking in loyalty.
Speaker 2 (32:53):
Number four.
Speaker 1 (32:54):
Navidia isn't just a chip maker, it's a full AI
infrastructure company. Navidia sells, as I said earlier, the entire stack.
They sell the chips, meaning the GPUs and the accelerators,
the networking, the servers, the data center platforms, the software
and the cloud services. They lend you money if you're
going to buy their products, right Jason, they'll go into
partnership whether you're gonna buy, you know, billions of dollars
(33:14):
worth of chips. They invest in a whole bunch of companies.
I'd love to see their portfolio, but they're big investors.
Speaker 2 (33:20):
They do it all.
Speaker 1 (33:21):
That's why their data center revenue exploded. As we just said,
they become a backbone of the global AI infrastructure. Every
industry is rushing to Navidia for AI transformation.
Speaker 2 (33:30):
If you are new to.
Speaker 1 (33:31):
The Navidia or new to the AI game and you're
a big player, believe or not, folks, Fortune five hundred
companies are still so far behind. But if you're you know,
looking to transform your your big or small business, list this.
They're involved in healthcare, drug discovery, medical imaging, genomics, genomics, automotive,
the autonomous driving, simulations of finance, fraud detection, algo trading, analytics,
(33:54):
manufacturing with robotic robotics and digital twins.
Speaker 2 (33:57):
Energy.
Speaker 1 (33:58):
They're involved in the smart grid exploration optimization, the government,
oh yeah, government, defense, national security, AI simulations and entertainment
and gaining real time rendering and AI agents. Navidia sits
at the center of nearly every vertical Jensen.
Speaker 2 (34:14):
Wong the visionary leader. This last thing we'll wrap with.
Speaker 1 (34:17):
You know, he saw the AI revolution coming about ten
years early, invested in GPUs when Wall Street didn't understand
the idea. Built a company like I said that was
created in the corner booth of the Dennis now defines
the entire technological era. He is Steve Jobs plus e
Lawn Musk plus Intel era, Andy Grove of AI. Maybe
he's a robot, Jason. He's got a you know, a
(34:42):
gene from Steve Jobs, Musk and Andy Grove. You never
know about That makes sense. They talked a lot about
the lot about on the robotics too. That's something we
got to do a show on one of these days.
Speaker 2 (34:53):
Anyways.
Speaker 1 (34:54):
Let's hope for a good ride tomorrow down Futures up
one eighty one where we'll leave you and now's Nvidia
is up nine dollars in ninety six cents. Sound hopefully
the hit Tim bucksher before they set it down. Great job, Jason,
that was a lot of fun. We'll do it again
tomorrow on John Sanchez Show, Goubless how agg Great Afternoon.
John Sanchez is a registered investment advisor, and the opinions
expressed by Sanchez Gone Capital Management, LLC on this show
or their own and do not reflect the opinions of
(35:15):
News Talks seven eighty or its pairing company, Cumulus Media.
All statements and opinions expressed are based upon information considered
reliable although it should not be relied upon. As such,
any statements or opinions are subject to change without notice.
Speaker 2 (35:29):
Information presented is for educational purposes only and does not
intend to make an offer or.
Speaker 1 (35:34):
Solicitation for the sale or purchase of any specific securities, investments,
or investment strategies. Investments involve risk, and, unless otherwise stated,
are not guaranteed. Information expressed does not take into account
your specific situation or objectives, and is not intended as
recommendations appropriate for any individual.
Speaker 2 (35:53):
Listeners are encouraged to seek advice from a qualified tax, legal,
or investment advisor to determine whether any information presented may
be suitable for their specific situation. Past performance is not
indicative of future performance.
Good Wednesday afternoon to you. Welcome to the John Sanchez
Show on Newstalk seven eighty.
Speaker 2 (00:07):
Kn't wait.
Speaker 1 (00:08):
It's a pleasure to be with you in a pleasure
to be with my co host, my partner in life.
Speaker 2 (00:11):
Mister.
Speaker 1 (00:12):
No, not that, no, no, no, we're both straight, trust me.
We're both married to females.
Speaker 3 (00:18):
This is a this is a new world we.
Speaker 2 (00:21):
Live exactly, but it might as well be partners.
Speaker 1 (00:24):
I guess I could say that because we spend so
many hours together and you know, spend more time working
than we do with our you know, female spossors. How
about that, yeah, night, so yeah, yeah, exactly, twelve thirteen,
fourteen hours a day's oh my goodness. Well, thank you
all for joining us today. We do appreciate it. We
(00:44):
got a great show lined up for you today. You know,
rarely do we ever spend the entire show talking about
one stock, but we're going to today and that one
stock that we're going to be talking about is in
the video.
Speaker 2 (00:59):
Now.
Speaker 1 (00:59):
Again, we can tell you are Bicell recommendations, but we're
not going to We're going to to make your own decisions.
Speaker 2 (01:05):
That's not why we're picking this.
Speaker 1 (01:07):
The reason we're going to talk about Navidia for basically
the entire show is because the company released the earnings
numbers after the close, and we of course are going
to go through the entire earnings report with you, but
more importantly, we're going to answer the question as follows,
why is Navidia so important to the world of AI?
(01:29):
And the data points that we're going to be sharing
with you is absolutely amazing things that you are going
to learn of why this company is everywhere. I just
got off the conference call. It's still going on, you know,
obviously I had to get onto the show, but Jason
was it was amazing to hear again how involved this
(01:50):
company is in so many aspects of AI and how
I just want to give the first point.
Speaker 2 (01:58):
Listen to this, folks.
Speaker 1 (02:00):
Every AI model we're talking chat, GPT, Gemini, Claude, autonomous
driving systems, robotics runs on GPU computing, and of course
Navidia is the dominant player in that market. Without Navidio hardware,
we don't train large language models at scale, and without
Navidia hardware, Jason, I don't know if a I really
(02:21):
wouldn't exist. I mean to be honest with you, it's
such a it's such a dominant company and reflective by
the earnings and what the stock is done in the
after hours, et cetera. It's fascinating before you come in
and I can see it coming out of your mouth here.
I just want to throw this in before I forget, folks.
I highly recommend there is a great segment. And I
don't know how old it is, but as I was
(02:44):
on YouTube last night when I was eating dinner, sixty
Minutes did a story and again I don't know how
old it was.
Speaker 2 (02:51):
I think it was maybe a year or two old,
but you still get.
Speaker 1 (02:53):
The picture, and it was a my gosh, I think
it was almost a two hour interview. You're not your
normalst sixty minutes, but interviewing Jensen Wog and following him
around and looking at the programmers and just everything that
goes on, you know, quasi behind the scenes. I was
blown away, Jason, I was literally blown away, and I
wanted to look at that to get again a more
(03:14):
intimate look at what goes on with the company, because
obviously we knew that Ernie's numbers were coming out today.
But highly recommend, you know, go to go to YouTube,
just do a search for sixty minutes and find that
segment about Navidia just mind boggling.
Speaker 2 (03:27):
What's going on there?
Speaker 3 (03:28):
Yeah, I mean they talked about revenue numbers to the
tune of five hundred billion dollars and you know, the
next year or two, and it I think it's just
the fact the adoption has gone so parabolic with all
things AI. You know, now it's first it was a
(03:49):
first generation. We've been using AI for a long time, right,
it's just now more the fact that using GPUs things
that are infinitely faster, and now these things are built
truly just to do this one task is sort of
you know, like using a LS motor in a tiny
car to go fast. Now they're building this motor merely
(04:09):
to create generative AI, to create video, to create all
of these things. And it's just a case where tech
technology is going so fast that it is virtually impossible
to keep up catch up. And that's why the lead
that they have is just continuing to be so far
ahead of anyone, merely because they're trying to get to
(04:30):
where nvideo is now and by the time they get there,
they're so far ahead.
Speaker 2 (04:35):
And yes, I don't see.
Speaker 1 (04:36):
I'm glad you bought that point out, because I don't
see how that could ever happen. They are and I
don't know what metrics you'd use to say they are
light years ahead of everybody else. Probably pick any metrics
and they're going to be light years ahead of anybody else.
And again, it's just mind boggling what this segment that
I watch that I was referring to what it reminded
me of is. And you've brought this up many times.
(04:58):
This was a little They've been around a long time,
you know, twenty five plus years, but this was a
little company, little company that had the chip inside for
gaming computers, right, That's I mean, I remember that. I
remember so many times over over my career, Jason, where
you know, we get ahold of our our I T
Man Trevor Sharton and say, okay, you know I call
(05:18):
him t Man.
Speaker 2 (05:19):
Okay, t Man. I you know, I need a new CPU.
Speaker 1 (05:22):
And sometimes he'd come back to me with, you know,
an a m D chip or an Intel And I
remember one time he came back to me with a
Navidio chip and I'm like, Who's And this was obviously
a long time ago, Who's Navidia?
Speaker 2 (05:34):
You know?
Speaker 1 (05:34):
I mean, I didn't even know who they were much
less I am not going to allow them to be
in my cpu. That's you know, I'm using my day
to day and you know, look at me now, ma,
right right, But it's amazing. And so I got a
little trivia for you that you'll you'll see when you
watch this segment. They again, they followed him at conferences,
meaning Jensen Wong, the CEO. They fall in with at
(05:55):
conferences and everything. And then they went to a Denny's
there in uh in Silicon Valley and they walk in
and you know, and they sit down here in the
sixty minutes reporter and Jensen's eating a big stack of
pancakes and everything, and he goes, you see that booth
over there, and you.
Speaker 2 (06:10):
Know, they look over and just a normal corner booth.
Speaker 1 (06:14):
The reporter goes, yeah, he goes, that's where Navidio was formed.
That's where he and his I think it was two
original partners sat and created Navidia and that Denny's booth.
Speaker 2 (06:26):
Think about that.
Speaker 1 (06:27):
Think about any of you that ever doubt that you
could not create a multimillion or in his case, trillion
dollar business in your garage, in your bedroom, wherever it
may be there's another prime example that can be done
anywhere if you put the right people together.
Speaker 3 (06:40):
Yeah, and it's so interesting that, I mean, like we're
going back. Is the velocity of change. I would argue.
The only way that they fall behind is merely because
the people who utilize it can't keep up with the
speed and choose the second or third best merely because
it's cheaper, right, And that's.
Speaker 2 (06:59):
What But you can't you can't go cheaper.
Speaker 3 (07:03):
I mean, I mean, AMD has products, other products.
Speaker 1 (07:06):
No one's gonna choose those chips when they when they
to your point, to your point, sayret you that's rude
to me. To your point, the only reason I would
see that they would choose an AMD or an Intel
or some of their competitor is, if I'll use the
world simple term, if Navidia is sold out of what
they need. But even those companies' products, even if they
(07:27):
can get them, they're not gonna come, not even to
compare to the Navidia chips.
Speaker 3 (07:32):
I mean, at some point they will get beat just
like you know, my thirty plus years ago, my forty
nine ers won a Super Bowl. Ever again, dynasties, are
you know, tough? Tough part about being king, right, is
everyone's coming after us. So if you made me guess,
it's going to be a Chinese company that beats them.
So you know, nobody wants to hear that, but they're
(07:53):
in a spot where they have to go produce something
uh and large without the help of all of the
technology that we have now right where a MD can
sort of look at what Nvidia's doing. And if you
get a country or you know that's has smart people
(08:13):
and they need to go build something on their own
because they don't get access to all the technologies here,
you tend to get different ideas right, different ways of
doing things. So you know, again I'm not forecasting a
Chinese victory, but it'll be someone else that's a way
off the radar that's forced to go make something quicker, faster,
better and not do it the same way or try
(08:35):
to mirror what you're doing. So but yeah, I mean,
they they're they're amazing. The market caps shows it. But
like anything that someone's always coming after.
Speaker 2 (08:43):
The king, always coming after you.
Speaker 1 (08:46):
And then I guess the counter argument to what you
just said regarding Chinese companies will be, well, yeah, China
wants Navidio chips. They're not getting them, at least at
this point. They may you know, could new technology come
out like as I just uttered, you know, we got
that scared there for a while to your point with
deep seek, right remember a while back. Of course, cheaper, faster,
(09:07):
less cooling power, so on and so forth. But yeah,
but at the same time, you know, my bed is
on is on them for at least in the in
the near term. But it's folks, this whole thing is
this it's mind boggling to the average person. And we're
going to try to keep this, you know, in somewhat
English term, not use a lot of fancy technology terms
(09:28):
and things like that. But you know, the gist of
what we're going to try to accomplish with you this
afternoon is, of course, when we come back from the break,
we're gonna go through what the earnings numbers did, after
the stock recap, go through what the earnings numbers did,
what the stock is doing in the after hours. And
again I use this comment Jason when I was doing
the stock updates this morning with Jake, and I said,
you know, the market was just kind of flat for
a long period of time, and it and it I said,
(09:48):
this last time the day of Navidia's earnings, and I
said it again this morning. This company has become so
important to Wall Street because remember, folks, it is it's
it's held in the S and P five hundred is
that doubt? Ponet is a NASDAK component. The maybe Jason
during the break, you could dig up some stats for
us on you know, how what was it?
Speaker 3 (10:09):
I mean Nasdaq wise after the close, right, it's nine
percent of the NASDAK. I was going to say eight
percent after the close the queue or the I can
say it now, the cues were up a percent, which
implies it's seventy percent of that one percent was just
in Vidia, right.
Speaker 2 (10:23):
So okay, see that one more time. Please say that
one more time.
Speaker 3 (10:25):
So it was it's a nine percent weight I believe
in the in the NASDAK.
Speaker 2 (10:30):
I thought eight but yeah, whatever, but okay.
Speaker 3 (10:33):
Probably now, but so eight nine percent up six seven percent? Right,
you can back into a one percent move after the close?
How much of that is purely just just in Vidia moving?
And it was close to seventy percent of the one
percent move was just merely in Vidia up. It's not
larger tech ripping after the close and kind of quickly
(10:54):
before the break. To remember, if they're talking about seventy
sixty seventy percent margins and they're talking about five hundred
billion dollars in revenue, at some point these hyper scalers,
who were the spenders, right, the metas, the Googles, et cetera,
Where do they call uncle? Right? Where do they say,
we can't spend as much because of all the pullback
(11:16):
we've had over the last two weeks is around Oracle
and they're dead, No, no Oracles having problems, And how
are these guys going to spend all this money and
open AI? They're spending one and a half trillion dollars
and upah, Either in Vidia's margins need to compress or
the spending needs to change. And so that's the part
that the market's going to struggle with, regardless of how
(11:39):
good in Vidio's numbers. Not to be a bear, but
those are just the reasons why the market acted the
way it did over the last couple of weeks coming
into these results.
Speaker 1 (11:47):
And we go through these phases, right, yeah, we always
talk about the concern about this, concern about that, and
then ultimately you get some a turning point like like
we experienced today with or in the after hours, what
this stock is doing after this great earnagury report.
Speaker 2 (11:59):
I'll oh go back to an.
Speaker 1 (12:01):
Analogy that came to mind as you were saying that,
and that is why doesn't Russia fire a nuclear missile?
Why doesn't the US fire nuclear missile? Because if we
fire one, they're going to fire one. To the point, yeah,
So to your point, why would Microsoft cry uncle and
stop spending because they know that Meta is not going
to or vice versa, right, they know their competitive because
(12:21):
this is such a competitive gain. So I think the
biggest turning point would be if if finally, you know,
I don't know, I'll pick a hypothetical time period five
years from now. These companies have spent by that point
trillions of dollars building up data are dat data centers,
I just want to call them data farms or server farms,
data centers that kind are. But you know they they've
(12:43):
spent trillions of dollars building that data centers and obviously
everything AI related, and then there's just no money to
be made. But I'll tell you all you have to
do is listen to this conference call and what we
what we tend to forget about is how many areas
of life that is touching?
Speaker 2 (13:01):
Right?
Speaker 3 (13:01):
Has it made again scratching the surface exactly?
Speaker 2 (13:04):
All right? Yeah, easy starting business.
Speaker 1 (13:06):
It's cool to use it as your is your search
engine now, but folks, it is so much deeper heat.
Speaker 2 (13:12):
Yeah.
Speaker 1 (13:12):
J just one went through and talked about, you know,
just just a few fortune five hundred companies of how
they're using AI technology to enhance their their their services
and products.
Speaker 2 (13:22):
And bottom line. Uh, you know, the bottom line is
going to improve.
Speaker 1 (13:25):
But things like you You've mentioned this many times, cancer
research and biotech and things that that they're we never
could be done just with the human You need this,
this incredible power of AI.
Speaker 2 (13:35):
So thouscin eighty all.
Speaker 1 (13:36):
Right, we're just getting started, warmed up on the world
of AI and once again why is Navidia so important
to the world. We'll come back, hit on the market,
hit on their earnings numbers with the stocks soon after hours,
and continue our discussion. Start over Christen snow right now
traffic center. Hello, Kristen, welcome back to the John Sanchez
Show on his took seven eighty k O. It's with
(13:57):
Jason Gunn. All right, here's how we finished up and
we're gonna get to our top way. Navidia is so
important to the world again, earnings released after the closes,
highly anticipated and put it a delivery will tell you
all the details and then get into our topic of
you know, why is this company so valuable? Why does
everybody pay so much attention to it? How it influences
your portfolio, whether you own it or not. I promise you,
(14:17):
the majority of you if you have money in the
stock market in some former fashion, Navidio's influence in your performance.
All right, here's how we finished up. Forty seven point gain.
Is all wild wild ride today roughly, you know, I'm
going to say for the last time I checked three
twenty three fifty swing lows.
Speaker 2 (14:32):
To the highs.
Speaker 1 (14:33):
It was all over the board today. But again finish
for the very small gain forty seven points. As I said,
forty six one thirty eight Na's deck. She was a
bit more steady as she goes one hundred and thirty
one point rise point five to nine percent, closing at
twenty two five sixty four s and p up twenty
five or point three eight percent, closing at a level
of sixty six forty two on the commodity side oiled
(14:54):
down about a dollar thirty nine to fifty nine twenty
nine a barrel, eighteen dollars and twenty cent rise on
goal to closing level there four thy eighty two dollars
and twenty cents, and we turned things over to the
bond market at not much action.
Speaker 2 (15:08):
One basis point increase on the tenure to yield a
fourth thirteen.
Speaker 1 (15:11):
Jason, Let's real quick before we get to today's activity
in the Navidia, let's talk about the FED minutes that
came out today.
Speaker 2 (15:19):
They're kind of screwed up at the FED right now.
Speaker 1 (15:22):
They don't know what they want to do come December,
according to the minutes of this October meeting.
Speaker 3 (15:27):
And I don't I think, you know, as much as
I hate to say it, I think they lack a
little bit of leadership at this point right the concern
I mean, Powell probably clearly is ready to be done
just giving all the comments. And I don't won't even
repeat the comment recently, you know, they're down to about
a one third chance now of cutting rates in December.
(15:47):
I was talking to a client this morning and I said,
I still feel that the FED should be focused on
the labor market just given all the AI that we'll
talk about now and into the future, and concerns of
labor compression over the next year, that could be because
of that. It also could be just not necessarily AI specific,
(16:09):
as in AI replaced my job, but my boss isn't
hiring anyone because they're working on all these AI initiatives
that they think are going to reduce the need for people.
Therefore they're not going to add people. And I think
that's going to be part of why we see the
job market decelerate.
Speaker 2 (16:29):
But if i'm the Fed, two reasons.
Speaker 3 (16:32):
One, I support the labor market because a Trump's already
said you're an umschool. If you don't cut rates, you
have that air cover. But that aside, if the economy decelerates,
inflation will solve itself, right, And so you should continue
to support the labor market as your mandate merely because
(16:53):
that's more the unknown than some massive spike in inflation
of some kind. And you always have time next year
to slow things down. But the market coming into today
was what a fifty percent chance of a December cut,
but it looks.
Speaker 2 (17:06):
Like it's far less than that now. Yeah.
Speaker 1 (17:08):
Three part of the Digest thirty three point probability today.
Speaker 2 (17:13):
Now.
Speaker 3 (17:14):
Yeah, Actually after the minutes right where they it seemed
that some were for it, some were against it, some
you know, we're drinking. It was like you said, there
was usually consensus, maybe one dissenter. This seemed more like
you grabbed ten people off the streets, ask them all
their opinion. Uh, you know on politics you got ten
(17:37):
different answers.
Speaker 2 (17:38):
Yep.
Speaker 3 (17:39):
So Low's numbers were better than expected. That was good
to see, kind of offset bad numbers out of Home
Depot recently. But you know, I think the market overall
was just waiting for Nvidia today given positioning underweight. People
certainly have been trimming a lot of the hyperscalers, even
in Vidia since it got north to two hundred bucks.
But yeah, I think we get a little bid tomorrow
(17:59):
and tack. Hopefully it continues into the future. But if
the Fed's not going to cut rates, that will become
a little bit of a concern, just giving this market
loves sterile.
Speaker 1 (18:08):
That's why this report of Navidio was so important today.
Many animalsts are saying, look at if we get a
good report out of Nvidia, this could carry us through
the momentum into the rest of the year exactly to
your point, because pretty much the odds are obviously, as
we just said, very diminished that the Fed's going to
cut rates in December. Again, whether you're not such a
stupid thing to put so much credence into it makes
(18:29):
really no difference.
Speaker 2 (18:30):
It just drives me this. But real quick, were gonna break.
I want to go back to Sething said. It's very
interesting you're talking about the job.
Speaker 1 (18:37):
You know, the Fed's mandate again, you know, full employment
is one of their mandates and keeping inflation and check
the other an AI. The jobs that are that are
being lost and that will be lost to AI. You know,
I wonder if you, if you had a real private,
honest conversation with some of these FED members, if they'd go,
you know what, Yeah, that's our mandate, full employment. But
(18:59):
there's not much we can do about it. And stop
and think about this for a second. There really isn't, Jason,
There really isn't a lot that FED can do to
that hypothetical business owner you just mentioned. They're not going
to hire or fire because again either they they're starting
to put AI into their business or or they're going
to so either way, they're they're deer in the headlights.
Speaker 2 (19:19):
They're paralyzed.
Speaker 1 (19:19):
They don't know what to do on the hiring side
of things, or if they do decide to hire. You know,
there's still not a lot of quote people out there
that are really productive when it comes to AI.
Speaker 2 (19:33):
It's such new technology.
Speaker 1 (19:34):
It's not like you can, you know, if you're in
office or something, or let's say even a manufacturing company,
you know, put an ad out there and see if
can get somebody with AI experience. No one really has
that other No, I've screwed around with chat GPT every
Friday night, you know, and so.
Speaker 2 (19:50):
So you know, I said something girlfriends, that's right, that's right.
I'm very good with jod you got it? Do you
see that?
Speaker 1 (19:58):
On CBC this morning, the gentleman and I forget his name,
just wrote a book. A private equity guy, been around forever.
He has his own personal AI bot. Now he's they
focus on investing in early stages of technology. He has
his own AI bot. And the host of CNBC said,
you know, how do you use this? And he goes,
(20:20):
it's amazing. I mean, he went through how it you know,
tells him what his day is going to be. The
schedules things, form responds to emails. I mean just boom boom, boom,
boom boom.
Speaker 2 (20:27):
Then again like there you go.
Speaker 1 (20:29):
Every one of us are going to have our own
AI bot before we know it, every one of us.
But anyways, back to the FED and employment. I said
this on the show yesterday and I'll say it again.
I am convinced that before we know it, I'd say,
within two years, we're going to be eight to ten
percent unemployment. And that's where it's going to stay. There's
(20:49):
going to be that many people unemployed because of AI
and and those that don't respond to it and adopt
to solopreneurship ideas and or retrain themselves so they are
again more employable with other companies, they're gonna get left behind.
And Jason, I wanna, I want to just mention something
(21:10):
to our audience. Who's you know, our extended family here,
what's going on in our firm? Take a moment and
and tell the audience what's going on with the ad
that you placed on. Indeed, we're looking to hire two
new team members for our staff. Tell them the number
of of responses that you've already had. I've never seen
(21:30):
this I've ran this company for thirty five years. Usually
you get two maybe three responses if you're lucky.
Speaker 2 (21:36):
Tell them what's happening.
Speaker 3 (21:37):
Yeah, yeah, we're currently hiring an operation associate inside the office,
help all the advisors and talk to all of our clients.
Speaker 2 (21:45):
Uh.
Speaker 3 (21:46):
And we've got over forty applicants in less than twenty
four hours for my lifely er and very qualified, good people.
Speaker 2 (21:57):
Yeah, yeah, I saw a couple of the rest.
Speaker 3 (21:58):
Anyone's listening. You know, you want to come work at
a solid firm, and you got it like technology, and
I want to deal with coconuts like the two of
us exactly, Sanchez gone dot com.
Speaker 2 (22:11):
That's right, very good. Yeah, it's but I was amazed
when you told me how many, how many responded to that.
Speaker 1 (22:15):
It's like I said, I most, I think the most
I've ever seen. I think three when I've posted ads
over the years, three and most of those were like
white and.
Speaker 3 (22:24):
We use perplexity to write the ads.
Speaker 2 (22:29):
We walked the walk and talked the tug.
Speaker 1 (22:31):
See maybe that's a secret that was It was my
dumb butt that wrote the ads before and now yeah
a I wrote it and look at the response.
Speaker 2 (22:39):
It just it's amazing, folks, It is amazing. All right.
Speaker 1 (22:41):
Well, the company that's behind all this, of course, is Navidio.
So we're gonna come back. We're gonna tackle what the
stock is doing in after our session. We're going to
tackle what the earnings report was that was released at
about one thirty this afternoon, and then we're going to
get into our topic once again, why is AI so
very important to the world and to all of you
that have money in the stock Market's turned over to
Jack Saban thicking Weather. Jack, welcome back to the John
(23:06):
Sanchez Show on News Talk seven eighty KOH with Jason Gont.
All right, here's once again how we finished forty seven
point gain on the Dow. Now's that a coup one
hundred and thirty one, SMP gaining twenty five. What a
difference one company can make. We're watching the after hours
right now. Dow features are now up one hundred and
fifty seven, nasdacs are up three hundred and thirty four,
and the sp Future is gaining sixty one. Just started
trading a few moments or forty two minutes ago, all right,
(23:29):
so it is time to get to the company that
is responsible for this turnaround at least that we're seeing
for the moment, and that is the video.
Speaker 2 (23:35):
So here's what we're gonna do.
Speaker 1 (23:36):
We're gonna tell you what the earnings report was, tell
you what the stock student in after hours, and then
we're gonna answer the question why is this company really
so important to the world? No longer just to you know,
a few people. It's to the world, folks. That's how
powerful in the video is all right? Say with the
stock student in the after hours? First of all, so
it was strong in kind of again a very volatile tape.
(23:57):
Today finished up five dollars and sixteen cents two point
eight five percent to a close of one eighty six
fifty two right now in the after hours, tack on
another nine dollars and forty eight cents, rising five point
zero eight percent now to one hundred and.
Speaker 2 (24:09):
Ninety six dollars per share.
Speaker 1 (24:12):
Uh, mister Gan, let's see fifty two week high on
the stock.
Speaker 2 (24:16):
Where are we about? Yeah?
Speaker 1 (24:17):
Two twelve, nineteen twelve yeap October twenty ninth, right before Halloween.
Speaker 2 (24:22):
Yeah, it'd be nice to break through that one. Yeah,
all right, man, let's go, let's go on these numbers
you want do you want me to do it? What
do you mean? Prepare?
Speaker 1 (24:29):
All right? Here we go, folks, All right again, highly
anticipated earnings report because they're so involved in everything and
so influential all the major averages.
Speaker 2 (24:38):
But here we go.
Speaker 1 (24:40):
The company made a dollar thirty a share. Estimates were
a dollar twenty five rev. Fifty seven point zero one
billion estimates fifty four point nine two billion. They said
they expect about sixty five billion dollars in sales in
the current quarter versus analyst expectation of sixty one point
sixty six billion. So now we've got three beats, right,
Jason got earnings per share, we got revenue and sales expectation.
(25:03):
Three beats there. Net income amazing. Net income for the
quarter rose sixty five percent compared to a year ago.
Came in at thirty one point nine to one billion dollars,
about a dollar thirty a share. A year ago they
quote only made nineteen point three to one billion, or
seventy eight census share. Jason and I were talking about
(25:24):
this during the break. Pretty staggering increase your net income.
Anybody can increase top line, but increase your net income.
But I guess when you're going with seventy percent operating margins. Right,
it's not hard to do.
Speaker 3 (25:36):
So, right, every time I make a sandwich, Yeah, I'm
making seventy cents for every dollar.
Speaker 2 (25:41):
There you go, There you go.
Speaker 1 (25:43):
Company of Courses now the most it has been for
a while, the most valuable publicly traded company in the world.
Let's see any other numbers. Their data center sales. Let's
go over to this real quick. In the video said
they had fifty one point two billion dollars and data
center sales, surpassing Wall Street's estimate. Oops, missed this one.
Forty nine point zero nine billion in the quarter, a
(26:05):
sixty six percent increase.
Speaker 2 (26:07):
Year over year.
Speaker 1 (26:09):
Jensen Wong on the conference call that I listened to
Jason it was amazing when he was talking about data centers,
and I didn't I'll be the first admit I did
not understand some of the lingo that he was saying.
But essentially, they do it all in the data center, right.
I mean it's not like they do you know, Part
A and they got a subout Part B and C.
(26:30):
I mean, the switching and just everything they do. It's
like they've got it. They got it almost monopolized in
a sense. And I know I'm getting really simple here,
but that was one of the GISTs, and now I
can understand why after seeing those numbers. Now, of that
fifty one point two billion, forty three billion in revenue
was for compute or the company's GPUs. Company said that
(26:53):
much of the growth was driven by the initial sales
of the GB three hundred chips network here we go
read the article. Further driven by the GB three hundred
chips networking or parts to allow scores of GPUs to
work as one computer account for eight point two billion
in the data center sales.
Speaker 2 (27:09):
That's what I was trying to say, all right.
Speaker 1 (27:12):
Their finance chief said in a statement that the company's
best selling chip family now known as Blackwell Ultra second
generation version of the company's blackwelled chips. The company has
five hundred billion dollars in orders for twenty twenty five
and twenty twenty six combined. The CFO said that number
is going to grow. Let's see anything else here. Yeah,
(27:38):
Jacson and I were joking in the break they're gaming
gaming revenue. It's like, well, I really miss them with this,
you know, for three video game chips four point three billion.
Professional visualization business was seven hundred and sixty million in sales,
so on and so forth. So they also said they
made twelve point five billion dollars share repurchases and paid
two hundred and forty three million in dividends during the quarter.
Speaker 2 (28:01):
See dividen Yale.
Speaker 1 (28:02):
Yeah, just two tenths of a percent, right, not much
of a dividend there for seventy.
Speaker 3 (28:08):
Percent operating margins. Don't pay a dividend exactly, do more things. Go,
spend that money and grow the business.
Speaker 2 (28:14):
That's right.
Speaker 1 (28:15):
Dividends absolutely all right, my friend, you anything you want
to add before we get to why this company is
again so important to the world.
Speaker 3 (28:24):
Yeah, I mean again we know him now for AI,
the you know, the pedestrian functionality is uh using chappie chat,
GPT or perplexity, et cetera for searching or potentially automating
some of your tasks. You know, the next gen is
more you know, having lunch with a CPA in town,
he was very smart about technology and talking about the
(28:45):
visualization part. Uh, that's really the next stage. But when
these things well, uh right now, we train it on data,
we trade it on information. Go look for this go
And I don't mean eyeball, look for this, but go
search for this information, Go make some sort of inference
or some kind or go create a fancy video that
(29:05):
I've trained you on. Think of a use case in
the future. And you know, again, I don't want to
steal the thunder. But the once these machines can actually
see things and make assumptions versus read read in data,
that's where you take that next step. And that's what
not blackwell, but I be it's not Hopper, it's whatever.
(29:28):
The next one is. It is the chipset that is
more focused on the visual so generative, predictive. Yeah, again,
that's alongside. But the ability to truly visualize things and
then make inference from them, to go, you know, see
(29:50):
a tree and make all sorts of assumptions about said tree.
Speaker 1 (29:54):
That's pretty much here already. I mean, you and I
are both big fishermen. You can you can do it
with fish identification, with AI, you can do it with plants.
You can say, here's a picture of this, tell me
what it is and tell me everything.
Speaker 3 (30:06):
So the intervening, but the next chip set is very
much focused on that part, on visual identity, visual training.
Also the generative aspects of video.
Speaker 2 (30:20):
Right, So.
Speaker 3 (30:22):
Your bot, for example, being much better suited to have
a conversation, and it sees you and makes assumptions about
your visual versus maybe you typing in things and such.
Speaker 2 (30:34):
So it's it's.
Speaker 3 (30:36):
There's a long runway. I still feel we're in the
third inning of where this inevitably goes.
Speaker 2 (30:42):
Absolutely I already know the name of my bot.
Speaker 1 (30:45):
I'll tell you what it is when we come back
from the break, right, create one, you got his name?
Speaker 2 (30:49):
All right?
Speaker 1 (30:50):
To wrap it up with Christen snow right now traffic
Center kerr Risten, Welcome back to the John Sanchez Show
on News Talk seven and eighty k O, which with
a Jason all right, is a quick reminder if you
missed any of our shows, by all means, plick us
up at your favorite podcasting distributed site site place all
(31:11):
over the place. YouTube everyone, all right? Why is no
video so important to the world. We're gonna run through
this real quick because we're running quickly out of time.
So here's the first reason, folks, why navidia and right now,
uh nine dollars and sixty seven cent game after ours
five point eight percent all right, one ninety six nineteen
come on two hundred. All right, So for those of
you not real familiar, if you don't know the stock,
(31:32):
or you know you just hear the name, here's something
I want you to remember. The video makes the picks
and shovels of the AI gold rush. Right, This is
essentially what AI is. It is the next gold rush. Okay,
every AI models, I said at the beginning of the show,
chet GPT, Jimini Claude autonomous driving, the robotics they run
on GPU computing, and Navidia is the dominant leader there.
Well that Navidio hardware. We don't train large language models
(31:54):
at scale, like Jason was mentioned earlier, you got to
train them. Second reason the video is so important to
the world market dominance eighty to nine vy percent market
share of AI GPUs there are H one hundred, two
hundred and B two hundred and Blackwell series are effectively
the industry standard. No other company comes close. AMD and
Intel are meaningful, but still far behind. As Jason mentioned earlier,
this near monopoly gives Navidia pricing power, influence, and control
(32:16):
over the pace of AI development the Kuda software. This
is mentioned a lot by Jensen Wong on the conference call.
A few moments. Ago is the software ecosystem, and it is,
as many call it, the secret weapon. Kuda is Navidia's
proprietary software platform that developers use to build AI applications.
Once you're building on Kudah, switching away as extremely difficult.
(32:37):
Giving Vida Navidia enormous moats. Right, we talk about mots
in business. So you know, you build a moat around
like a castle. You have a moat so the competitors
can't come in, and it builds stickiness. Think of Kudah
as the iOS of AI. Locking in loyalty.
Speaker 2 (32:53):
Number four.
Speaker 1 (32:54):
Navidia isn't just a chip maker, it's a full AI
infrastructure company. Navidia sells, as I said earlier, the entire stack.
They sell the chips, meaning the GPUs and the accelerators,
the networking, the servers, the data center platforms, the software
and the cloud services. They lend you money if you're
going to buy their products, right Jason, they'll go into
partnership whether you're gonna buy, you know, billions of dollars
(33:14):
worth of chips. They invest in a whole bunch of companies.
I'd love to see their portfolio, but they're big investors.
Speaker 2 (33:20):
They do it all.
Speaker 1 (33:21):
That's why their data center revenue exploded. As we just said,
they become a backbone of the global AI infrastructure. Every
industry is rushing to Navidia for AI transformation.
Speaker 2 (33:30):
If you are new to.
Speaker 1 (33:31):
The Navidia or new to the AI game and you're
a big player, believe or not, folks, Fortune five hundred
companies are still so far behind. But if you're you know,
looking to transform your your big or small business, list this.
They're involved in healthcare, drug discovery, medical imaging, genomics, genomics, automotive,
the autonomous driving, simulations of finance, fraud detection, algo trading, analytics,
(33:54):
manufacturing with robotic robotics and digital twins.
Speaker 2 (33:57):
Energy.
Speaker 1 (33:58):
They're involved in the smart grid exploration optimization, the government,
oh yeah, government, defense, national security, AI simulations and entertainment
and gaining real time rendering and AI agents. Navidia sits
at the center of nearly every vertical Jensen.
Speaker 2 (34:14):
Wong the visionary leader. This last thing we'll wrap with.
Speaker 1 (34:17):
You know, he saw the AI revolution coming about ten
years early, invested in GPUs when Wall Street didn't understand
the idea. Built a company like I said that was
created in the corner booth of the Dennis now defines
the entire technological era. He is Steve Jobs plus e
Lawn Musk plus Intel era, Andy Grove of AI. Maybe
he's a robot, Jason. He's got a you know, a
(34:42):
gene from Steve Jobs, Musk and Andy Grove. You never
know about That makes sense. They talked a lot about
the lot about on the robotics too. That's something we
got to do a show on one of these days.
Speaker 2 (34:53):
Anyways.
Speaker 1 (34:54):
Let's hope for a good ride tomorrow down Futures up
one eighty one where we'll leave you and now's Nvidia
is up nine dollars in ninety six cents. Sound hopefully
the hit Tim bucksher before they set it down. Great job, Jason,
that was a lot of fun. We'll do it again
tomorrow on John Sanchez Show, Goubless how agg Great Afternoon.
John Sanchez is a registered investment advisor, and the opinions
expressed by Sanchez Gone Capital Management, LLC on this show
or their own and do not reflect the opinions of
(35:15):
News Talks seven eighty or its pairing company, Cumulus Media.
All statements and opinions expressed are based upon information considered
reliable although it should not be relied upon. As such,
any statements or opinions are subject to change without notice.
Speaker 2 (35:29):
Information presented is for educational purposes only and does not
intend to make an offer or.
Speaker 1 (35:34):
Solicitation for the sale or purchase of any specific securities, investments,
or investment strategies. Investments involve risk, and, unless otherwise stated,
are not guaranteed. Information expressed does not take into account
your specific situation or objectives, and is not intended as
recommendations appropriate for any individual.
Speaker 2 (35:53):
Listeners are encouraged to seek advice from a qualified tax, legal,
or investment advisor to determine whether any information presented may
be suitable for their specific situation. Past performance is not
indicative of future performance.
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