Rand Swiss’s Viv Govender points out that the whole of China cannot compare with what Nvidia is doing right now.
SIMON BROWN: I’m chatting with Viv Govender from Rand Swiss. Viv, appreciate the time today. We had Nvidia results out last week. As has become fairly standard, it kind of knocked it out the park. I imagine it must be a stock you’re holding in the AI Fund that you’re running there at Rand Swiss. What was your take on the numbers? They are producing quarter after quarter of astounding growth.
Nvidia has no such problem. If you look just right now, xAI, which is a Elon Musk’s AI company, has just raised $6 billion for a $24 billion valuation, and most of that’s going to go to Nvidia. But everybody’s doing something like this, not just companies but countries as well. It’s the Saudis, the French and so on – and all the money goes to Nvidia. But the thing that’s different between Nvidia and Cisco, beyond just the fact that demand doesn’t seem to be lacking anytime soon, is that what Nvidia is doing is much more difficult than what Cisco was doing. There’s very little ability to step in and do what Nvidia is doing.
Right now they have Claude, they have a GPT-4.0 and so on. And the thing is that you don’t know the difference, quite frankly. You can’t look at Claude and say this is definitively different compared GPT-4. You could do that with GPT-4 versus GPT-3. You need to see the same difference between GPT-4 and GPT-3, from GPT-5 to GPT-4, for this valuation to continue.
VIV GOVENDER: That is it exactly. I had an engineering guy tell me once that you must understand that computer chips if you play these games like Civilization or Ancient Empires, they have what’s called a tech tree, those things you choose to specialise on. The second part I want to people to understand is, okay, the stuff that we talk about Nvidia and Microsoft … right now there is a danger because about four companies …over a third of demand for Nvidia chips.
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