By coinnews 
00:00 Speaker A
Well, Nvidia is not the only AI play on Wall Street, of course, as the trade broadens out to include data centers, energy, and much more. Joining us now, Joe TG, Rational Equity Armor Fund portfolio manager, Joe, great to speak with you here. I’m curious, we are looking to Nvidia earnings here and the market is widely anticipating this stock’s results. But which stock within the AI space do you anticipate moving most directly off the back of Nvidia earnings?
00:52 Joe
Yeah, I guess it depends on uh exactly how they report it and uh what parts of their company are doing well or poorly. Uh if we’re just talking about more uh the need for uh more data centers, uh like the lack of supply of these data centers, then there are a few names that will do quite well. Uh I’m I’m thinking uh Broadcom is going to be a big part of that build out too. Uh so yeah, there’s plenty of other names in this space uh not just Nvidia that are going to uh live and die in this. Uh one of the uh auxiliary companies to Nvidia is uh Nebius. They are buying a lot of the uh big uh Blackwell boxes that are uh they’re making these uh, you know, uh hyperscale data centers. So uh they they potentially uh could move uh depending on how we what we learn about how many are sold. Uh so it’s going to be very interesting to see uh their response to the results too. But yeah, it’s it’s fascinating to see. And in the energy space, I I’m actually watching uh CEG. Uh it’s a company that’s uh looking to uh restore some nuclear power plants, looking to get into more nuclear uh power uh play because there is a a big uh, you know, uh ancillary play here next to the data centers is there’s going to they’re going to take a lot of energy. Uh so there’s going to need be a need to supply that power. Uh so there’s certainly uh just a wider aspect to uh push this forward. It really just goes to the bigger picture that, you know, for the past couple of years, this market has just been driven by this tech recovery. This tech cycle, this tech boom has really lifted a lot of these ships. There’s a lot more uh that’s going to be uh lifted up uh by all these chip sales.
04:32 Speaker A
Yeah, you mentioned the data center component as well to all of this and data center construction contributing 1 percentage point to GDP growth, uh as I was looking through Torsten Slok, Apollo Chief Economist’s note this morning here. As as you’re talking about some of the other plays that are non Nvidia, but still very much beneficiaries of the broader kind of AI thrust that we’ve seen in in the the hyperscaling. One of the other areas that investors have been trying to look at is the cloud services providers and what the recurring revenue run rate could look like because of all of the investment that’s going to be coming forward, but also some of the services that are going to be regularly needed to be paid for as well. How are you identifying that part of this trade?
05:59 Joe
Yeah, that’s a great point. I think Google’s uh planting their flag in that too. Uh they want to have a stick of that recurring revenue because they want to have, you know, they got the Gemini Ultra, Gemini Plus. Uh and I think their their report last week really got the market excited just kind of showing uh like what the possibility are is are, you know, even with the economic headwinds we’ve seen this year, uh the uncertainty with tariffs, the race for AI leadership is just it’s just getting bigger and bigger. It’s just expanding. So uh this is proving to be, it’s not discretionary spending. These companies aren’t just, you know, having some fun with this. This is like a imperative for their business future. Absolutely. So uh the underlying urgent demand for Nvidia chips is out there. And I yeah, you’re making you’re making a great point. This recurring revenue, this could finally be where these this AI starting to make uh these big Mac 7s uh some profit. Then Google with this uh uh Plus and Ultra out there, I think that’s a a key test case for that because they really they really are kind of, I think they’re in the leader in the lead right now. They were behind uh chat GPT for me. Like it was a stumble out of the starting gate for for Google with I think it was Bard and I think they fixed that. They figured that out. And now this is really cool. I think people are looking at the Veo 3 and saying this is really amazing. So uh yeah, I think people are going to be willing to pay some money up front for that, especially, you know, maybe some smaller companies that are just trying to get in on the sidelines to see what AI can do for them.