Well, AI valuations are sky high, so high that even OpenAI CEO Sam Altman is sounding the alarm.
The very face of the AI boom warned that the frenzy has gone too far with investors risking getting burned in what he calls an AI bubble.
Meanwhile, shares of Apple held steady despite yesterday's tech sell-off.
The tech giant has gained.
Recently driven by its focus on manufacturing investments in the US and its CEO Tim Cook's recent White House visit.
Joining me to weigh in this morning is Sarbj, Joe Hall, founder and principal analyst at Stack Bay.
So good morning.
Thank you so much for joining me.
So first and foremost, tell me how significant do you think Sam Altman's alarm for the AI industry is.
I think it's significant.
Not that I can't be taken that seriously because he himself said that they will be pushing with the same capex numbers what they have already announced and nobody is slowing down on the capEx side but on like alarming side is that maybe he sees something but what other vendors don't see up front yet that how the developers are using the AI APIs and.
Models on the back end and then how quickly they can hop on to it and we need to build a lot of bells and whistles around it before we can start using these models in.
Our enterprise applications which are mostly system of record, right, so they need deterministic outcomes.
They can be pro proba probable numbers, for example, like it can't be hallucinating at all, right, so I think.
We all know that there's some fraud, but we don't know how much it is.
Yeah, it always happens.
And of course we can't have a conversation about artificial intelligence without talking about Nvidia.
So when it comes to earnings, so far we have heard from the big publicly traded names, but in terms of that big AI play Nvidia, what are you paying attention to?
Yeah, actually, Nvidia numbers are going to be the the bellwether for for AI, right, so how much um they are um selling and then based upon that.
I mean, the market will move.
I think it will move the market this time.
I think it will move the market 5% up or down, at least if not more.
The last couple of times it didn't, you know, it was like 1% up or down market and even they themselves didn't move much, but this time it's critical I think because we heard some warnings from.
T TSMC uh from all these other sort of ancillary players, right, so they didn't do that good actually, which are aspires to uh to TSMC so I think there's It looks like there will be something like. warning or at least a light warning maybe knowing Janson, he will put forth the futuristic, you know, physical AI and all that stuff during the call, but still I think there's some.
Yeah, and I know that you mentioned a moat when it comes to Nvidia.
So what is this moat and does this keep the company safer, say, compared to its competitors out there?
I mean it can be more safer than what it is now, right?
So it will be less safer going forward.
We know that there are a bunch of companies which are taking a stab at it like, you know, there are some companies that are still private.
AMDA is trying.
Google's TPUs are, you know, killing it, if you will, as you know that now OpenAI is using Google's TPUs to serve their models, not only the GPUs from.
Nvidia right and over Microsoft only and they are going with Oracle cloud as well, so they are they are sort of spreading their bets if you will.
OpenAI is going everywhere to get as much computer as they can and they don't care if it's Nvidia GPUs or any other GPUs, right?
So or TPUs in this case.
So yeah, their mode is being challenged and their mode actually basically is software and hardware combination and the packaging of the hardware and the software which libs libraries is what we call libs, techies, we call it Lib they go along with it for different disciplines for science, for biology, for for.
Industrials and all that, so yeah, robotics.
And of course we can't have a conversation about semiconductors or AAI without talking about politics and tariffs.
So what are you paying attention to when it comes to tariffs and what does this mean for the big tech names?
The tariffs are like on again, off again.
There's a lot of stuff going on.
Like the last one is that the White House wants to take a stake in.
Intel now, right, so that we are sending new sort of Presidents if you will, like we used to criticize China for government being in the business and intermingling government and business, you know, can they trust a vendor from a certain country because they're so close to the government of that country and we are doing that stuff it's kind of worrisome trend, but yeah, tariffs and or the other.
Um, policy gesture from our current administration is not very conducive, not very helpful in many ways, as you know that tariffs have been increased on the metals like it was just the raw material now they added a few more things to it yesterday.
Um, so they're expanding, they're expanding and shrinking the coverage of tariffs under each category on a daily basis, which is very troublesome.
And then um Mr.
Lutnick said yesterday that they want to they want a goodie in the.
Intel and also they want equity in TSMC he kind of gestured that so anybody who got the money from that chips bill, government wants to get into that company and I don't know how that will go with the Taiwanese company and how they will react.
It's very fresh news as of last night.
This is definitely an area to keep our eyes on.
So thank you so much for joining me today and thank you so much for sharing all of your insights.
Thanks.
