Nov 14, 2017|
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
She yeah. If you're on the go or you can still keep up with the financial exchange on the I heart radio app available on both your phone and tablet. Just search the financial exchange need to hear individual segments or. Full shows that he can't listen live we've got you covered on the I heart radio app. Kevin took from Zacks is with us here to talk about a couple of high flying tech stocks Kevin thank you for joining us and kept it to be here. Kevin start first with Nvidia this is probably be in a arguably the hottest stock over the last year and probably one of the most talked about. Is they're still room to run here we to happen now. Yeah you know that's exactly all the time hey I hear Nvidia is the future of artificial intelligence and all these technologies connect still by the 200 bucks. When it strayed net over fifty times forward earnings. And I say I believe that you can because it is the future in other account. Conference right now in Denver public supercomputing conference. And they just announced yesterday now that every major computer maker and every major cloud service provider is a customer. Buying the Nvidia architecture. Or these advanced technologies no hike computing technologies. You know everything from the key mean the big bad. By financial technology hyper skilled at it senators scientific and medical research and autonomous cars. He hears what makes me nervous Kevin is. I don't know anything about computer chips and I know that you know Intel was the dominant player you know through the 1990s now on the PC side they still are. But I don't know if there's someone out there who could potentially supply Nvidia is there any competition that we should be worried about. Yeah you should be worried about Intel because Intel quietly. You know getting their forces together so to speak. And because they don't wanna let Nvidia rule the market by themselves which they do now though Intel has recently. Sort of he yielded. It burned bridges with AMD. Who makes who is the number two player in these GPU graphic processing units yet. And so in Intel get ready to take out Nvidia in the space so. But right now the revenue growth potential for Nvidia's just incredible they eat they continue to be raised and that's why that. The price can go up but the PE multiple can come down. There are estimates that in just in the cloud area they're gonna grow that business as if either 70%. A year so in four years you're talking about going from. They made 800 million in the business last year they're gonna lose seven billion in revenues just in the cloud data that are supercomputing that are. Let's start over now stuck red Baidu this is a company that you know I've people you know when it IPO back in. What was it 06 or seven it was it was the hot stock at the time the last couple years. What now a little bit but short a little bit more gross here what do you think is the story with them don't follow. Well I recently bought by view on this pullback after earnings where they had it sort of warn about the war or fourth quarter was going to be a little softer. But here's the thing Baidu to deal with Google China and what I mean by that is they still had 80% of the search market and that doesn't seem to change nobody can come in. In the plant. What Baidu does in Internet search just like nobody can you know. Kick Google out of the way. The other the other thing that makes in the global sign it is that they are going into these advanced technologies like artificial intelligence. Autonomous cars and they're using the Nvidia platform so I was really the application. Of what Nvidia makes. And fighting in the Silicon Valley. Artificial Intelligence Lab where they're where they're trying to apply all these advanced technologies that they can be. You know that they've got a captive market right they own the Chinese market. Would surge and then they can deliver all these advanced technologies. At a company like by that we only have about thirty seconds is only the quick answer I guess her you know Google right now it's a 700 billion dollar behemoth Baidu only 83 billion dollars. How much bigger can they get. Yet they're not gonna become that big. And that's because there he is. There is competition in these other areas. They've retail like an Alibaba. And and that's and that obesity those are the big beat humans in China right now Baidu has. Room to grow 50% but not 400%. Outstanding Kevin thank you very much of the time except. Kevin Kirk from Zacks talk met in video with a ticker and the DNA and I do with the ticker B do you.