NVDA "Underpriced?" Invest Diva's Bull Take in AI Acceleration, Fed's Impact

SPEAKER_1 (0:01)

All right, time to go deep on Nvidia. The Tech Spotlight is all about Nvidia, which is hitting record highs today.

Kiana Danial, CEO of InvestDiva, and author of Triple Combounding for Dummies is with me. So let's talk about Nvidia, how, you know, we're gonna talk about some of the specifics, but it leads everything. It's in the indexes. Sometimes people don't realize how much they have invested in Nvidia. Talk a little bit about it.

Kiana Danial (0:31)

So Nvidia is fascinating because I've been invested in Nvidia since 2015 before it exposure to AI. So Nvidia was in the right place at the right time when hardware became one of the most important key components in AI. And then, so it was the leader, it still is the leader, but it seems like to me, in fact, that most people are like, oh, okay, Nvidia is good news, like old news. Let's talk about something else that is more exciting.

And Nvidia is in every index fund and I think for a good reason. I don't think you can be overexposed to it because I don't think it's going anywhere.

SPEAKER_1 (1:08)

And you still think even with the run-up that it's had and the new highs that it's had, you'd still see opportunity in this long term, right? You have a buy.

Kiana Danial (1:17)

So, again, not financial advice, but what I'm seeing is that, first of all, frontier models like Anthropic and OpenAI, people are becoming more and more concerned with the security piece of it, and therefore a lot of businesses are now going local. To have your own local AI, you're going to need hardware. The top tier hardware for that local AI is led by Nvidia.

And so unless people say, hey, collectively, let's not let's stop using AI tomorrow, I don't think Nvidia is going to go anywhere. And in fact, I think its market value is underpriced because everyone's so scared about the hype and a bubble that they're scared to push it higher.

SPEAKER_1 (2:01)

So you did express some concern on risk. Look, the one thing, first of all, you talked about OpenAI and Anthropic, maybe some of the risks they're facing, but also just if the world stopped using AI, which is unlikely, to your point, right? So the trajectory that we've seen for Nvidia being the leader, can it continue to have expansion? Can AI still rapidly expand?

Kiana Danial (2:25)

So I think the question for can AI rapidly expand, I don't think people are going to say tomorrow, say, hey, let's go back to fax machines.

I think it's going to continue to expand. And with Nvidia being the leader, yes, it has its competitors on the hardware side, AMD and Intel are competing for the piece of the pie, but the pie is growing. It's the kind of pie that everybody can gain 10 pounds kind of thing. So Nvidia has a bigger piece of the pie, AMD, Intel on the consumer side, Apple with local AI is also having its piece, but Nvidia is the leader and the pie, in my opinion, is only growing because half of the world is still not even as heavily consuming AI as people in the America. So there's a lot more.

SPEAKER_1 (3:14)

When I think about Nvidia here at 237 and these new highs, you mentioned Apple, that's a competitor, AMD, Intel.

What do you think about that landscape that maybe they're trying to gain some share from Nvidia? What happens there between those competitors? Are they just not the same? You said just the pie is so big. Is that what it is?

Kiana Danial (3:38)

The pie is so big and it's growing and they have their different avenues. For example, Nvidia is top tier in terms of quality, is leading in terms of prestige. AMD has its own fan base. Intel is a different. Apple is for people who want to do local AI, but they don't care if they're not five times as speedy. So they can just go on by the apple pie, apple box if you will. So I think at the end of the day, personally, I'm invested in all of them.

I doubled down also in the index funds that I invest in them. Because I know you can say, oh, you're over-concentrated. It's like, this is the future. Like what else? Like, what's the next Nvidia? What's the next Nvidia? I'm like, it's still Nvidia.

SPEAKER_1 (4:24)

It's still Nvidia. That's interesting. I mean, what did you think of something when you saw the collaboration of all those tech titans, right? At the White House talking about their AI fears. And today we had Mellius Research talking about Microsoft. And maybe they're going to be the adults in charge when it comes to AI. When you look at all the different tech leaders, what does it tell you?