01:31:20 · John Coogan, Eric Glyman, Jordi Hays
[01:31:20] S0: Yeah. Yeah. It might not even be in the category, but it's still delivering AI properly. And I just love that that's I I like there's something very valuable about just using every possible tool, AI or not, or linear regression, if that's the best tool for the job, behind the scenes, and then just delivering the actual value to the customer, solving the problem. Because customers, they don't necessarily want technologies. They want solutions. Right? Yeah. [01:31:46] S7: Yeah. And you it's one of our our customers and, someone I look up to quite a bit. He's, Brett, Taylor Yeah. Started a company called Era, Terminator OpenAI, and he was on it, a week or two ago. In one of the things he said is, like, look. I I don't want anyone at Sierra spending, like, time on expense reports or invoices. Yeah. And and Ramp is automated categories of work that used to slow us down, and we actually can work on the things that makes us great, building great products for the business. And so I I I think you nailed it. It's it's solutions, not [01:32:19] S0: Not actual technologies because most of the customers just just they they just don't have a strong opinion about the the underlying technology. They care about saving time, saving money. That's what matters. Well, congratulations. Thank you so much for taking time. Milestone. Day to Fourth of the year. Fourth of the year. I'll be back next week. You're always welcome. That's why we bought these suits. We don't rent them. We buy we bought them. [01:32:45] S1: Tailored. Because we [01:32:45] S0: knew we were
01:32:45 · John Coogan, Jordi Hays, Eric Glyman, John Tennant, Keller, Stacy Rasgon
[01:32:45] S0: knew we were [01:32:46] S1: gonna be using them a lot. [01:32:47] S0: We're gonna be using them a lot. [01:32:49] S7: Guys, it's it's so good to see you. Thank you so much. [01:32:52] S4: Have a good rest [01:32:53] S1: of your day. Yeah. Incredible milestone. [01:32:55] S0: We'll talk to you soon, Eric. Bye. Cheers. Quickly, before we bring in our next guest, let me tell you about Turbo Puffer, Search Every Byte, Serverless Vector, and Full Text Search. Built from first principles on object storage, fast, 10 x cheaper, and [01:33:08] S1: scale By the way, median public SaaS company growing at 12 to 17% a year. Yes. They're growing at 10 times that rate. [01:33:15] S0: Fantastic. [01:33:17] S1: Well. [01:33:18] S0: We our next guest is, Stacy Raxon. Welcome to the show. Thank you so much for [01:33:22] S8: stopping by. [01:33:24] S0: To meet you, guys. We'll have you sit down here. And while you're sitting down, I'll tell everyone about ProFound. Get your man mentioned in ChatGPT. Reach millions of consumers who are using AI to discover new products and brands. Are we in a bubble? What's going on? Introduce yourself for a second. [01:33:40] S6: Sure. My name is Stacy Rasgon. I'm a stock analyst and equity analyst. I'm a managing director and analyst senior analyst at Bernstein Research [01:33:49] S4: Sure. [01:33:49] S6: Where I look at The U. S. Semiconductor and semiconductor capital equipment space. Thank you. Clearly, AI has been the only for a couple of years now. [01:33:59] S0: Yes. Yes. Want you to react to this Suttrini post here.
01:33:59 · John Coogan, Stacy Rasgon, Luca Ferrari, Jordi Hays
[01:33:59] S0: Yes. Yes. Want you to react to this Suttrini post here. [01:34:04] S6: Oh, sure. [01:34:04] S0: Says, just reviewed a bunch of stuff for our November macro memo. We might low key be going into a recession, boys. No clue if this matters at all for stock prices anymore, though. [01:34:16] S6: That's a good point. You could argue some parts of the and I'm I'm not a macro guy. [01:34:21] S0: I'm not [01:34:21] S6: an economist. However, you could argue some parts of the economy are already there. Right? I mean, people use the phrase K shaped recovery, [01:34:28] S5: which is [01:34:28] S6: sort of interesting. But I think especially the lower half of the population is not actually doing all that well. Right? And we've actually seen that more recently in a lot of just not the semiconductor reports, but a lot of the consumer reports and the restaurants and Auto loans. Yeah. So there's probably parts of the world that are already there. And clearly, the infrastructure spending, the AI spending has been supporting GDP. [01:34:56] S0: Yeah. [01:34:57] S6: And it's been supporting the stock market. I mean, Nvidia's, I can't even remember, 8%, 9% of the S and P now. Yeah. So, yeah. [01:35:02] S0: It's remarkable. [01:35:03] S6: We we may be there already. Yeah. [01:35:05] S1: So we had a we we had a thesis that that NVIDIA's gonna do just fine this this earning cycle. Specifically, the only reason, not not just overall demand, but that Jensen was slamming beer. [01:35:17] S0: This is the most quantitative research. You can't get this. He's not
01:35:17 · John Coogan, Stacy Rasgon
[01:35:17] S0: This is the most quantitative research. You can't get this. He's not [01:35:20] S6: acting like a CEO that's, like, really worried about his quarter. I don't know that he would generally care anyways. However, they just did an event in DC a couple weeks ago called GTC. And I mean, he put a slide up behind him that basically said numbers next year are too low. What the slide said, it said they had $500,000,000,000 in cumulative orders for Blackwell and Rubin. Blackwell is their current generation of AI servers, and Rubin's the next generation. Yeah. 500,000,000,000 cumulative across 2025 and 2026. Mhmm. And they said we've already I I can't remember. It was, $2,020,000,000 chips for orders. And they said we've we've we've shipped six to date. So we got 14,000,000 left. They've they've got five quarters. You you can sort of figure out how much it is, and you can compare that to where the numbers are. And he's basically saying numbers are too low. So I'm I'm not terribly worried going into the quarter on Wednesday. Now, you know, with with stocks, it's it's always not just the numbers. Right? It's it's the numbers relative to the expectations. [01:36:15] S0: Totally. [01:36:15] S6: I think everybody expects it to be good. Yeah. So we'll see how how good he can make it. [01:36:19] S0: It does feel like we've entered a period over the last month maybe where even beating would still result in a sell off? Is that just everything priced to perfection? What's going on there?
01:36:19 · John Coogan, Stacy Rasgon, Jordi Hays
[01:36:19] S0: It does feel like we've entered a period over the last month maybe where even beating would still result in a sell off? Is that just everything priced to perfection? What's going on there? [01:36:31] S6: Yeah. I mean, especially in the AI side, there's been you know, the sentiment ebbs and flows. Yeah. Right? And and we've been in in a bit of an ebb. Yeah. And there's been a lot of stuff. You know, we had we had Burry's comments about a GPU lifetime and depreciation. Had a couple to be honest, few what I would call self owns on the part of the OpenAI folks, Old man and Scott Freyer, a little unnecessary angst that they They [01:36:54] S1: did that to inspire themselves to have to work harder. [01:36:57] S6: Maybe. Maybe. I guess. You you know, it's [01:36:59] S1: it's fine.
01:36:59 · Jordi Hays, Stacy Rasgon, John Tennant
[01:36:59] S1: it's fine. [01:37:02] S6: And and you you you early guys, are we in the bubble or not? Sure. I I mean, so bubbles are as as bubbles are. Right? I mean, you can look at a lot of things. You can look at valuations. I mean, NVIDIA is mid-20s price to afford earnings right now. We haven't got anywhere near crazy yet. I mean, I'll say the same thing I've said since this started, and it really got started. ChatGibis showed up in November '2, and NVIDIA's sort of print heard around the world was May '23. That's that's when it started. And even then, people worried about, okay, 2024 is gonna be off. Right? I'll I'll say the same thing I said then. At some point, you know, nothing goes up into the right forever. At some point, you'll have a digestion or an air pocket or it's not now. It's clearly not now. That's all I can say. I don't know when, but it's not now. It's not this year. Doesn't look like it's next year. Then all of these projects that OpenAI is signing with Broadcom and NVIDIA and even AMD, They don't even start to ship until the 2026. [01:37:57] S4: So [01:37:58] S6: at least from a spending standpoint, from what we consider, it's probably not 2027 either. Now we'll see what the stocks do. Like, they tend to be anticipatory. But in terms of, like, an air pocket or something in spending, I'm I'm not really all that worried yet. Yeah. When? I don't know. But, like, it's not now.