Summary of a television interview · Based on the recording of the conversation
In brief
In an interview with Bloomberg TV Bulgaria, Kliment Robev discusses Nvidia’s quarterly results, which beat expectations. In his view, the figures confirm once again that artificial intelligence is not a passing hype, and that Nvidia is no longer just the “muscle” of AI but increasingly its “brain and nervous system”, offering a complete platform of hardware, software and cloud services. He also sets out the main risks facing the company and the market.
Key points
- He notes that revenue of about $57 billion means 62% year-on-year growth with stable margins of around 75%, and argues that AI is moving from a battle for attention and market share into a phase of efficiency.
- He compares Nvidia’s approach with Apple’s under Steve Jobs – creating scarcity, shaping demand and delivering the optimal solution at the right moment – and stresses that in a sector moving this fast, anyone who fails to stay ahead of the trends is punished immediately.
- Among the risks he lists the restrictions on business with China, which the company is offsetting through the US, Europe and the Middle East, and its heavy dependence on Taiwan Semiconductor, which he now sees as the more important barometer for the market.
- He points out that every sector is cyclical and double-digit growth on this scale cannot last forever, and he is sceptical that the market would take a slowdown calmly; on competition, he argues that the in-house chips of Nvidia’s large customers serve specific purposes, while Nvidia’s are general-purpose.
- He describes the circular financing among a small group of companies, with most of the links leading to Nvidia, as a warning light, citing Oracle, which in his view took on too much debt in its enthusiasm for AI and was punished by investors with a 30% correction.
- In his view, even an excellent business can stay overvalued for a long time, and a correction in Nvidia’s shares would not mean the end of its business model; he expects some cooling in the short term, while in the long run he sees AI-driven efficiency as a tailwind for markets, though probably at the cost of higher unemployment.
Context
The conversation followed Nvidia’s results, after two weeks of volatility and selling in technology stocks amid fears of an AI bubble. It also touches on the US jobs report for September, delayed by the government shutdown, and the reduced chances of a Federal Reserve rate cut.
Views reflect his position at the date of publication and are not investment advice. Regulatory information
