About this video

• Video Title: Tom Lee Just Updated His Nvidia Prediction For 2025!
• Channel: The NVIDIA Report
• Speakers: Frank, Tom, Steve, Brook
• Duration: 00:09:44

Overview

This video discusses the current market pullback, the undervalued nature of the AI sector, and the potential of small-cap stocks. It features a debate between speakers on whether Nvidia or Oracle is the more significant AI stock, with a focus on Nvidia's continued dominance in GPU supply and its customer base within the "Mag Seven" companies. The conversation also touches upon the UK's investment in data centers and the challenges of energy capacity.

Key takeaways

• Market Pullback: The pullback in indices after hitting record highs is seen as normal profit-taking, especially heading into the weekend.
• AI Sector Undervalued: Despite market concentration concerns, the AI sector, exemplified by Oracle's surge after earnings, is considered undervalued due to underestimated future growth.
• Small Caps' Potential: Small-cap ETFs like IWM are highlighted as potentially more undervalued than AI stocks due to the Federal Reserve's rate cuts, historically benefiting small caps.
• Fed's Role: The Fed's rate cuts are intended to stimulate economic growth and the job market, which is seen as bullish for small caps.
• Nvidia vs. Oracle: While Oracle's recent performance is impressive, Nvidia is still favored as the primary AI stock due to its continued dominance in supplying essential GPUs.
• UK Data Centers: The UK's investment in data centers, involving figures like Jensen Huang and Sam Altman, faces challenges related to energy capacity and cost compared to the US.
• Overwhelming AI Demand: The demand for AI compute power is significantly outpacing the industry's capacity to deliver.
• Revenue Growth: Nvidia's revenue is projected to grow over threefold this year, reaching approximately $13 billion from $4 billion last year.
• AI Narrative: Recent strong earnings from Oracle may counter the bearish AI narrative, particularly regarding capital expenditures.