Veteran analyst issues warning on Nvidia stock as Huawei readies AI chip

Huawei takes aim at Nvidia as it readies its newest and most powerful artificial-intelligence processor.

Transcript

00:00So we're talking about Huawei and NVIDIA and the AI trade, right? The semiconductor AI trade.

00:06Right now, I mean, I was long NVIDIA and advanced micro devices probably since the cows came home.

00:12It's all about maybe a month or two ago. And I got out of both of those. I whittled down those

00:17positions as they eroded. But I got out of those positions completely. Now, that doesn't mean I

00:23don't believe in Jensen Wang. It doesn't mean I don't believe in Lisa Su. It does mean that I

00:28think we're in a tough spot as far as this goes. Not only are they not allowed to sell

00:33last year's model or 2022's model AI chip to the Chinese customers, and now Huawei is filling that

00:40hole. There also is pressure on the hyperscalers here in the US even to either diversify who they're

00:48buying their chips from, maybe manufacture their own, such as Apple and Amazon and a couple of

00:52others going, or just pressure the designers of these higher end AI capable chips on price. I don't

01:01think they have pricing power the way they once did. And not that the AI trade is going to slow

01:07down completely. I think Andy Jassy of Amazon told us that in his letter, I mean, maybe a week or two

01:13ago. It's still there. But he also told you that they're making a lot of their own chips now. And so

01:18that trade is going to change. And until I get a clear direction, I am not an investor in NVIDIA

01:25or A&B right now. UFC is the leaders in that field as far as design is concerned.