Nvidia's data center Revenue might double over the next year. But not just that. I'm not worried about the next year. I'm worried about the years after that.

What's going to happen in 2024 and Five and Six. And who is actually the competition for NVIDIA because I Hate to say it, but Nvidia's Revenue last year ending in January was 15 billion dollars specifically for the server segment. the server segment alone. Data Center There it is.

Data Center Revenue 15 billion dollars. That represents out of their 27 billion dollars approximately of total revenue. 55 percent of all their money over the last year already came from data centers. Well, next quarter, in quarter two of the Year, we're expecting uh, well, a quarter to their Quarter Two We're expecting Data Center Revenue Potentially to come in at 7 billion for the quarter.

That would be an increase increase from about the 4.3 they did in this quarter. Well, 7 billion in a quarter. If we just stay at that rate, we're looking at a 28 billion dollar source of Revenue just from data Centers alone. If you annualize out the next quarter, forget gaming for a moment.

forget professional visualization. forget Automotive which is growing already at a rate that's doubling. This is their Orient platform. This is their Omniverse platform, which is like the realistic version of the Metaverse that actually makes money.

And gaming obviously makes a lot of money. They're still going to compete in gaming. In fact, gaming has finally bottomed and we're seeing growth in gaming. But the numbers that we got today from Nvidia told us that they're expecting data center revenues to be at around 28 billion dollars annualized for the year.

That's more than they made all of 2023, 2022. Oh wait, Ever so. Just data centers alone could see a doubling. Almost a doubling of Revenue just this year.

And if we get another say 50 growth next year, not even a doubling of Revenue You ready for this? Not even a doubling of data center Revenue Anymore, Forget all of the other data. Let's just make this so simple: 28 billion Dollars of data Center Revenue in 2023. Now we're going to add 50. That's going to put us at 42 billion in 24..

let's add 50 percent growth Again, that's going to put us at 63 Billies at 50. Again, that'll put us at 90 plus, uh, one and a half. That'd be 94.5 Billies, right? So by 2026. So in other words, in three calendar years, so called three and a half years or so, we could be close to a hundred Billies of Data Center Revenue 100 Billies of Data Center Revenue Just roll with me for a moment so you could see the Ridiculousness of what could potentially happen.

and I don't think anybody saw this coming. and I want to be clear about that. The Stockmart Wall Street was expecting this stock to move four percent in after hours. it moved over 20 because nobody expected their forecast of seven billion dollars of Revenue to be a joke and instead their actual forecast to be 11 billion dollars of Revenue.

That is a massive increase. To say we're gonna have seven Billies of Revenue and then to beat That by 57 is absolutely insane. On top of the fact that you're selling these chips at nearly a 70 gross margin, probably around a 50 net margin. So let's call it a hundred Billies by 2026..

a hundred bill by 2026. And then we'll talk risk factors, right? That's going to bring you 50 Billies to the bottom line: There are two and a half billion shares Outstanding. 50 divided by 2.5 means you're looking at twenty dollars of Eps by 2026 per share from data centers alone. Okay, add, go ahead and add I don't know.

20 billies or whatever for uh, for all the other stuff, the gaming, the automotives, uh, whatever. So 70 divided by 2.5 that's gonna put you at uh, 28 of earnings per share. So if we now multiply that by, let's say, because they're growing growing like crazy, let's just take a 30pe ratio. That's what Apple's trading for now.

This makes this a 600 stock by 2026 with this sort of growth rate, and if we include the other aspects of the business, you're actually at close to an 840 stock you're looking at potentially you know what? 80 percent return over the next uh, three years to potentially a double even at today's levels at 375. how crazy is that? Just from going from a double of data center Revenue That would be a hundred percent to get here. and then fifty percent. Fifty percent Fifty percent.

That's assuming Nvidia only grows at these levels. Now, What we heard in the earnings call was actually remarkable that the data center revenue or data center sort of total data center market cap is about a bill now. I Did a little bit more research after this. It's somewhere between a bill to 1.5 Bill and about 50 percent of that is for CPUs and Gpus, but going forward and this is the big thing.

So let's go ahead and say it's You know we'll take the midpoint number here: 1.25 Bill Let's call that the data center. Revenue Today 50 of that is the chip segment. So if 50 of that is the chip segment that puts about 625 million dollars available for chips. While Most servers are still the old school setups.

they're just CPUs That's because their data center storage thing servers where you're storing static images, pictures, video, uh, you know, text files PDFs whatever generic crap Google Drive iCloud kind of stuff text messages, right? Well, you now go to Generative Ai And let's say you need to rebuild all of these data centers which are now Antiquated as generative AI data centers because everybody wants to start using AI Uh, assuming AI is not a fad, we'll talk about risk factors in a moment. Well, you need to create 725. Oh sorry, this is a billion. Actually, you need to create 725 billion dollars of of or you're going to spend 700.

Geez Hello, you're going to spend 625 billion dollars on chip spend. Remember we said 50 would be just the chips part. The other 50 would be like your fire suppression server racks. you know, whatever.

install Services Maintenance services, whatever the building the land. So 625 goes into chips. Well, how much of that 625 is going to be GPU versus CPU? Well, new server systems. You would spend about one to two dollars for every about twenty dollars that you spend on a GPU.

So in other words, you're spending about five to ten percent on the CPU which could be like an AMD processor compared to the amount of money you're spending on the Gpus. Okay, so let's say the Gpus get 90 of that 625 market share we're We're not even going to grow the servers. We're not even assuming servers are going to grow because the reality is this one to 1.5 trillion dollar server space could become a three four five. Ten trillion dollar server space, right? The Tam could grow.

But forget about assuming the Tam is going to grow. Let's just say we're going to take all the old crap and turn it into Gpus going forward and not assuming any growth. So if we wanted to assume growth, maybe we assume these servers stay. But we create a new 625.

It's not an unrealistic expectation that this would happen within the next three years, especially when you consider companies like Google have about 70 percent of their revenue at risk because of AI That's somewhere around 50 billion. 48 billion dollars. That's at risk per quarter per quarter per year. Google has about 200 billion dollars at risk due to Google search advertisements and placement advertisements on websites.

They've got 200 billion dollars of Revenue at risk if they don't figure out AI out ASAP So Google's got a big incentive and that's just Google it's not Microsoft Amazon Oracle Apple Whatever. Apple doesn't even do their own servers. You think Apple's got chips? they use Google servers and some AWS for iCloud Crazy, right? So anyway, if you say 90 is going to go to Gpus, well, so 90 goes to Gpus. That's actually a 562 uh, billion dollar spend on Gpus.

Well, what did we just assume? By 2026, we assume just 100 billies of that would be Nvidia Well, right now you know how much market share Nvidia has of the dedicated graphic chip. Market 88 Bros 88 of 562.5 is about 500 billion dollars. which is actually 5x this number. So now all of a sudden, 5x these numbers.

Holy crap. 600 times 5x. Not even considering the other parts of the business. This is potentially a three thousand dollar stock.

Now you might think to yourself, Kevin this is bubbly. This is insane. That's true and there's going to be competition. and I'm not suggesting this right now is definitely.

Oh yeah, that's my price. sorry I'm just thinking out loud I'm like oh my God this is a very this is a transformative moment and I want to just speak logically here. We don't want to make rash decisions, but everybody got caught off guard on this I got caught off guard on this. Uh, even though even though I've been for six to eight months talking about don't invest in software, invest in the freaking chips even though I got that right I did not think it would be to this level I Thought this was just gonna end up having like you know, some growth and then a lot of hype.

So for me if I drew out sort of my expectation I thought you probably had. you know this is the growth part right here. and then this purple part is the the recent sort of hype. oh, the fund manager needs exposure to AI so that's uh, you know what you get.

But what we really got was this was just a fraction. You know this was actually like the reality is this right here. that whole thing I Just Drew is like that size and the reality is I Like all of this is potentially up for grabs in the server space, it's insane. So it's a massive massive potential Market at huge margins, everybody wants wants the H100 server sector and then you look at Tsmc and you're like, but Kevin You know they have to be able to manufacture all these chips.

Yeah, But what happened during the PC slowdown folks. Tsmc kept installing new equipment and they ran it at like 50 occupancy. In other words, they had a very, very crumpled up rubber band. Now Nvidia picks up the phone and says yo, we need uh to Triple our orders of H100s yesterday and they're like no problem, we have the machines available I don't know why they have that accent but whatever you turn the machines on, you start printing checks.

That's why they think they can supply, but they're getting all these. it's it's the demand that they're getting that's insane. So now you have to ask yourself, is is this just a bubble Okay, so the questions you have to ask yourself are the following: Number one is AI a fad, right? I mean like Kevin's got a course featuring AI Now how to make more money and get sh9t done. We're doing the final release with the final price increase for it on June 1st.

So if you get in before that, you lock in the best price we're going to teach you how to actually be productive with AI How to do Video AI How to do Image AI How to do daily productive tasks using artificial intelligence to make you more productive and you get all of the updates long term for free. So in other words, if in two months there are new ways of doing things better, you get an updated course at no cost to you. It's a pretty good value proposition. I Actually think it will be the best AI Course that exists now for actual productivity for normal people, entrepreneurs and employees alike daily.

Hardware Working Americans That's what this is for. So is AI going to be a fad like the Metaverse if you think that you probably haven't experienced much AI yet. But I'm going to go ahead and conclude that at this point, the answer to that is no. And the reason for that is that AI is everywhere in practical ways.

Whether it's accounting, legal fact checking, uh, proofreading, researching in health care, in cancer research I Don't care what it is. Autonomous driving, uh, you name it. AI Is there programming, right? It's in everything. Sales.

It doesn't matter. it's everywhere. Unlike the Metaverse, the Metaverse was a joke. It still is.

I Mean maybe we'll have virtual reality. At some point, we'll have the Ready Player One World, but that's 10 years out. AI is now. Ai could literally cancel the recession.

You could see so much spent from businesses that the recession gets canceled because businesses do not want to get left behind by AI So they would actually be more likely to potentially hire or over hire people to make sure that we're not getting left behind in the AI race. And I'm saying like, AI capable workers, right? You're not going to hire people who would otherwise get replaced by AI. This is why you have to be comfortable with AI and get used to it and add value to AI and realize where its weaknesses are so you still have value, all of which will teach. But if companies are going to adapt to artificial intelligence and everybody's going to get in on artificial intelligence, then companies are going to go through a transition.

Eventually, there will probably be more layoffs because artificial intelligence takes your jobs but is now the time to do that weeding. Probably not. Now is the time to figure out what's your value proposition. How can your company make more? Revenue That's the goal right now.

now. it's it's a gold rush folks. and Nvidia is selling the pickaxes. That's what this is.

A video is like. the only one selling the pickaxes. Yes, AMD does CPUs that'll sit on those server racks. but again, one.

Buck Maybe two bucks for every 20 you're spending on Nvidia It's insane. So Tsmc is a winner. Yes, AMD is a winner. Of course AMD or Nvidia is a winner because they're selling the pickaxes of the gold rush.

So if you think AI is a fad, you're probably not even watching this video. So let's get past the fact that it's a fat. So what's the next risk to Nvidia Well, the next risk to Nvidia is competition. Competition is the next risk.

Who's your competition? I'll wait. Oh uh. Startups? Okay, well, good luck starting a chip, a server chip manufacturing company, and actually getting the bandwidth to get any of your orders fulfilled at Tsmc when Nvidia is just gonna load all that stuff. Good luck getting into those Supply chains.

Good luck getting designers to make those server chips. eventually. that'll happen. But companies that are relying on AI I don't think are going to gamble trying to save a little bit when they need guaranteed uptime for the AI Services Otherwise, they're big software businesses fail.

I Don't want to bet on the software businesses. It's too speculative to bet on the software businesses. I Don't know if Snowflake's gonna beat our palantir or Palantir is going to beat out. You know, some other service or some other startups gonna be both of them.

I Don't know that, but I do know they're all running in video. all of them and I don't think a startup can make a better pickaxe? Can they really make a better pickaxe? That's the question. and I think the answer that is no. So then you're looking at the um Cloud providers basically uh, the CPA whatever.

the cloud provider Services these are your Oracle your Microsoft uh, Amazon uh, Google right? your cloud provider Services Well, Google came up with their TPU their tensor Processing Unit which they started work on in 2017. but guess what they're still doing? They're still buying Nvidia chips because they're better. The Nvidia stuff is just better. and then you have to ask yourself, uh, Google spends roughly on just data.

uh, like chip stuff. So the way you can figure this out is, you look at their whole capex say their capex is seven billion dollars. You look at their financial statements, you're like, okay, well of that maybe only about 2.2 billion is uh, infrastructure for servers. That puts you at about 1 billion for chips because we know about 50 is the chip cost, the other 50 is the building, the land and the other stuff.

So if they're spending a billion dollars a quarter on, let's say chips Uh, from Google right? What does Google want to do more? Get a little bit like get those chips for cheaper. Uh uh. basically try to save money on, uh, save on the one bill or or does Google care about? Oh wait, the 50 billion per quarter we have at risk because of AI Well, to some extent you could say both. but if they de-prioritize actually making the chip and video is just going to create them, so why bother? That's the problem Nvidia is turning into a monopoly I Hate to say it's after today's earnings or a call.

I'm looking for reasons not to think that Nvidia is a monopoly. Uh, they have an AI chip Monopoly This is insane. So I want you to think about some of these these uh, tentative things and I have questions for you. So number one, uh, this could cancel uh, the recession.

uh uh. number two. Nvidia has a monopoly and you might think Nvidia going up uh, 20 is you missing out? Uh, or it's a bubble. What about when it 10 to 20? X's now people are thinking like oh, but Kevin if it's a trillion dollars now, could it be five trillion dollars? Yeah, yeah, okay, maybe not 10x.

call. call it 5x. Let's be generous. 5 to 10x I don't know.

So okay, let's put some of these opinions aside for a moment because we don't need to do these sort of projections right now. They don't matter as much. What matters is the questions that I have. Okay, here are the real questions.

So what what growth is the server Market going to see? According to Asml, you're going to see 250 billies of Revenue by 2030 per year? That's nominal. However, that was according to a report that Asml put together. Guess when February of 2023? Why is that date important? Because it was before AI Then you have to ask yourself what percent of servers today are GPU based? Well, probably very few because what were Gpu-based servers? good for before cloud-based gaming? Who? cloud-based games? Not that many people compared to how many people are going to use. AI So in other words, the odds are your cloud-based server uh, or your Gpu-based servers are probably far and few between.

This is why on the Nvidia call they said most servers are CPU based right now. Huge Tam opportunity. The problem though, is anytime you start talking about Tam you get a little bubbly usually right and you kind of lose your foundation in fundamentals. and that's scary.

so you have to be careful about this. But then again, the growth rate for these chips at Nvidia unless there's a competitor which wears the competitor could be phenomenal. Now, we also don't know if this is going to be like a one and done right. What if it's one and done? In other words, what if everyone buys and orders and H100 and then they have them and then they're done.

Okay, now we've translated, transitioned, the growth slows down, you had a big AI hype, boom and then it dies and then it's like okay. data center revenue is falling again. Maybe unless of course AI uh explodes and everybody's like Oh I thought everybody was using Ai No Actually, only one percent of companies were serious about using Ai and now everybody's using it. It's very difficult to know, but there is a real.

There are two arguments here and I want to know your thoughts like this is an important one. You I need your help in leaving comments down below. There are two ways Nvidia I Mean there are many ways Nvidia can go here, but these these H-100s the these GPU server chips will either get competed away uh or you'll see this one-time purchasing right. You'll see this.

Alternatively, you could see H100s via software and Via just being the best chips that there are maintain a massive moat. The total server segment could 3x with a demand to rebuild all or to build all new as GPU That would be somewhere around two to three trillion in spend on servers. That's an insane number by the way. trillion on spend.

That's an insane number. Uh, you know again, Google spent like seven on Capex last quarter. That's like 28 bill in uh in in the year on average annualized. Even if they doubled, they'd be at 50 bill.

You would need 20 Googles Just to get to a trillion, you'd need 40 Googles to get to 2 trillion. That's assuming they already double. So there are definitely some pie in the sky. Risk factors over oh my gosh, let's just extrapolate everything to the Moon so there are definitely risks here.

and I do not yet have all of the answers and I'm already 22 minutes into this video. But my question for you and which I really want you to answer down below is why have you not joined those programs on building your wealth yet where we can brainstorm together And then the second question I have is who's the competition Third question: what's the growth rate in your opinion going to look like for the server sector and how much needs to be GPU is AI a fad? If it's not a fad, then what's to stop Nvidia from being the Monopoly of of of this Market I'm blown away I do not have all the answers I Was absolutely blindsided by today's report I wholeheartedly admit that I was blindsided by today's report I knew the chips would do well so I was right about that. but I was not all the way right because I just didn't realize the magnitude at which this this thesis would be correct and then then we do not know how much longer that will last either. So I need your help? Please leave comments down below.

thorough details especially if you have experience in this and I will put another video if you leave good comment or like real useful comments. I'll put another video together where we do, uh, some more conclusive, uh research. but these are just my first impressions and I'm now I Want you to know this when it comes to AI time is what's going to make you money, and if you can prove that value to an employer, you'll always be able to be employed. So this is another way of making sure that you don't get replaced.

Foreign.