Newscasts - Nvidia's worst case is slowing demand for high-end chips, says expert
26/02/2025 20:42
Click the following link to watch video: https://share.newscasts.refinitiv.com/link?entryId=1_6sabcb4b&referenceId=tag:reuters.com,2025:newsml_RW466226022025RP1_930&pageId=Newscasts Source: 'Reuters - Business videos' Description: Ben McMillan, chief investment officer and co-founder of IDX Advisors, said that Wall Street investors will continue to keep an eye on Nvidia for "any kind of retrenchment in demand" or "compression" in pricing of the AI powerhouse's premium Blackwell chips. Short Link: https://refini.tv/4kjT7Xw Video Transcript: Worst case scenario going forward for NVIDIA would probably look something like a big retrenchment in demand for their premium chips. So that would be the Black World chips which are newer. Again, a lot of the concern around DeepSeek was the fact that we were able to get very high-quality open-source AI models that, yes, were using NVIDIA chips, but they were using the cheaper version of the chips and fewer of them. So, a lot of the pricing power, a lot of the growth we've seen in the stock, let's not forget, NVIDIA comprised roughly 20% of all S&P total return last year. A lot of that is the fact that its expectations surrounding their ability to charge more for premium chips and a lot of them going forward. So again, if we see one thing to keep an eye on in these earnings and going forward is any kind of retrenchment in demand or frankly, any kind of compression in their pricing power. So, Wall Street is going to want to keep an eye on margins too and continue to see that yes, they’re getting what they're charging for their premium chips and that there's a lot of demand for them.