Nvidia stock: Why investors are bullish again

00:00 Speaker A

Let’s begin with Nvidia. Big run off the April low. A name a lot of people know. A name a lot of people watching right now, certainly own. What explains that move off the April low?

00:19 Speaker B

Yeah, so a lot of risks were taken down, you know, it was screaming for so long and then tariffs hit, uh, China hit, uh, potential GDP concerns, even questions about capex. And nearly all of them just completely evaporated and came off the table. So the risk is lower in the perception with investors. And for the first time, this year, this year of the potential next wave of Industrial AI, investors are starting to see the correlation, the potential upside.

01:06 Speaker A

You mentioned capex, which is an interesting point because there were some skeptics we had on the show who were arguing perhaps that maybe 2025 is going to represent some sort of high mark, some sort of peak in AI capex, and that was bad news for the likes of Nvidia. Do you buy that?

01:43 Speaker B

Uh, I don’t, but I do think the growth will be tempered, right? Well, we see 10% growth, 20% growth likely. We won’t be seeing 50% growth. But the other, the only thing that could change my mind on that is I’m doing a little bit more research on the industrial edge and also enterprise AI because as AI gets permeated into everything, into businesses, on premises, and even in the industrial edge, somebody is going to have to pay for that equipment. And if it’s not going to be who you might expect, let’s say the carriers, uh, the folks who are out there investing in it today, other companies might have to come in, let’s say the hyperscalers go after that.