Episode Details

The Paul Truesdell Podcast
Episode 330
Tuesday, February 27, 2024 • 42:01

SUMMARY KEYWORDS

Navidia, Ukraine, Russia, China, cryptocurrency, chips, manufacturing, company, investing, graphics cards, gaming, overnight success, founder, family connections, data centers, technology, video, graphics, cell phone games

SPEAKERS
Paul Grant Truesdell, J.D., AIF (The Elder), Paul Grant Truesdell, II (The Younger)

DISCLAIMER
Due to our extensive holdings and our clients, you should assume that we have a position in all companies discussed and that a conflict of interest exists. The information presented is provided for informational purposes only. Truesdell Wealth, Inc. - A Registered Investment Advisor - Florida - 212-433-2525 | Paul Grant Truesdell, J.D., AIF, Founder

00:00
The Paul Truesdell podcast Tuesday, February 27, 2024

Paul Grant Truesdell, J.D., AIF  00:04
we are going to talk a little bit about Nvidia and the evaluation. What's your initial thoughts on it? It's

Paul Truesdell, II  00:11
an amazing i, what, two to three years, if you look at it, it's kind of been obvious that they were going to take this super track, but I don't know, the the hype, to me seems a little bit above reality. And it's not as long term thinking as it should be. But, you know, that's kind of how things go. When you get fads, people are extremely exuberant, about, about things, especially AI and all of them, they are effectively the only major engine that is pushing all of that forward. So you

Paul Grant Truesdell, J.D., AIF  00:45
Well, let's pull back and talk a little bit about just exactly what the who the company is what exactly they do. But I think, because I don't think a lot of people really understand what their processes and procedures are. Let's just let's run through that in terms of invention manufacturing, high end, low end, let's just kind of cover the big broad picture briefly.

Paul Truesdell, II  01:05
Yeah, I mean, so it's valued, like an insane tech company. And basically, they are, they don't manufacture anything, as far as I'm aware. If they do, it's extremely small scale stuff. I think they outsource all manufacturing to a handful of partners.

Paul Grant Truesdell, J.D., AIF  01:24
This so this is a technology company that really is focused in the area of intellectual capacity

Paul Truesdell, II  01:30
develops, its pure design, fair design. Now, granted, they sell a product, but they don't do the actual manufacturing. And if we've learned anything over the past couple of years, with all the talk of chips and everything in the in the media, the thing is the manufacturing, even if you have a good design, that manufacturing is still a really hard part.

Paul Grant Truesdell, J.D., AIF  01:48
And so you have people like a site like Apple, Apple, does the design have the intellectual capacity and capabilities, but the actual manufacturing generally takes place someplace else, it's all outsource

Paul Truesdell, II  02:04
that includes the chips. Yeah, that includes the specialized hardware that includes the actual finished product, they, they don't do any manufacturing, they're purely a effectively designed company that then sells the finished product after the person makes it. And it's kind of like a lot of these, you know, most food brands you buy things from, they do the same thing. They have these large production kitchens and food manufacturing plants that, hey, we developed a product, big company makes it for you, they deliver it to shelves, and you know,

Paul Grant Truesdell, J.D., AIF  02:39
well they're an, the word I would use is they are an aggregator. Sure.

Paul Truesdell, II  02:43
Well, they're designer, I would say, You know what I

Paul Grant Truesdell, J.D., AIF  02:46
was referring to Apple Apple, when it comes to manufacturing and apples are an aggregat