Huawei takes aim at Nvidia as it readies its newest and most powerful artificial-intelligence processor.
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00:00So we're talking about Huawei and NVIDIA and the AI trade, right? The semiconductor AI trade.
00:06Right now, I mean, I was long NVIDIA and advanced micro devices probably since the cows came home.
00:12It's all about maybe a month or two ago. And I got out of both of those. I whittled down those
00:17positions as they eroded. But I got out of those positions completely. Now, that doesn't mean I
00:23don't believe in Jensen Wang. It doesn't mean I don't believe in Lisa Su. It does mean that I
00:28think we're in a tough spot as far as this goes. Not only are they not allowed to sell
00:33last year's model or 2022's model AI chip to the Chinese customers, and now Huawei is filling that
00:40hole. There also is pressure on the hyperscalers here in the US even to either diversify who they're
00:48buying their chips from, maybe manufacture their own, such as Apple and Amazon and a couple of
00:52others going, or just pressure the designers of these higher end AI capable chips on price. I don't
01:01think they have pricing power the way they once did. And not that the AI trade is going to slow
01:07down completely. I think Andy Jassy of Amazon told us that in his letter, I mean, maybe a week or two
01:13ago. It's still there. But he also told you that they're making a lot of their own chips now. And so
01:18that trade is going to change. And until I get a clear direction, I am not an investor in NVIDIA
01:25or A&B right now. UFC is the leaders in that field as far as design is concerned.