BNN - Wednesday, May 22, 2024 - 03:00 p.m. (ET) - Segment #7

hyperscalers we'll hit a limit on how much capex they can continue to spend on this area without yet seen growth. >> Well, they are actually embrace. You look at their results, very actually seeing pretty tremendous growth, right? So they went from close to 0. So I'm sure is a good example where the company went from close to 0 revenues derived from from ai to several billion dollars of revenues. And this is basically return on the topics that was invested last year. Think they want to keep growing dispute billion dollars of revenue. They need to invest even more next year. That's kind of how the mind works. And if you look at basically the masks return on investment in the section, very profitable for this company. And this will years even seeing startups like or we've come come to the space because they're able to just buy does use and read them out at a pretty attractive rate. I don't see a mention yet of china it's especially in the, in the commentary letter. >> This has been if there's a wrinkle in nvidia, it's it's to china. Investors have been willing to overlook that how do you think about what china means to nvidia? Chinese, a pretty big market. And right now we are assuming that they are going to be shut out of market for a longer period of time. So we are already assuming that in our estimates as a as a base case, that's basically the only way to invest here because there's really no way to get ability where china will be going in older restrictions. >> What do you I mean, I know that mathematically, it shouldn't make a difference that they're doing. The stock but it definitely goes a long way to attracting retail investors. This 10 for one spot stock split we don't just make it cheaper right? In an era where read it or or twitter can drive in, move the stock. I wonder should nvidia has a better chance of getting caught up in that flywheel? >> Well, it's a pretty high volume of stock and we're so I don't think that that's going to really be a big driver. Storms do trade up a lot when they have the the stocks, but it's not really a fundamental positive. So over time, you're going to see that kind either given up replaced by from the mental upside. But in the show you it is a little bit of a from rideau, but it's a pretty high volume stock. So it's not going to be easy to move. That's something like gamestop are ready settle. The smaller players. Is this a green light to buy more shares of nvidia? Well, I do think investors should look at any pullback is an opportunity to out the storm does not look expensive or any sort of any sort of valuation metrics. If you look at even bda or earnings multiples, he treats trading, writing them europe, middle of their historic story, colour range. So I do think it's pretty decently priced way to get exposure to ai and we specifically like it for the risk reward because we do think dah upside, maybe not as much as we've seen over the last 2 years. But the downside is also pretty humid here, heading somewhere around 20 times to the we're seeing a bit of a rising tide situation. Super micro amd broadcom up those those advances are not as strong. >> As nvidia's and nvidia says is fading a little bit. But it this a rising tide situation. Me what your ai basket, I assume anchored by nvidia. But kenney by amd too. >> So we only md as well. He's one of our holdings and marvell as well. So those top city weighs in to play ai hardware space. We like snowflake on the data infrastructure site. That's another top-five holding for edf in would disclose all of our holdings on our website. So I think basically hardware, cybersecurity and data infrastructure are probably just city best ways to get exposure to ai. And then there's also gentle place like materials like energy generation that can provide something every suffocation as well as potential upside to your point on snowflake, that's up about 5 and a half percent and and on on a mixed set. >> Of that I already kind of went sales, beating expectations, profit light warning about margins for the year and sales for the year. But the 2nd outlook looked good and they're also got full suite of ai products ec that I asked the analyst at rbc know where how much is that ai layer to snowflake? What's your view on how I can beat a snowflake. >> Well, I think over time, tire company is basically exposed to ai because what they they will store your data

and they provide you tools. How you can use that, that data and computing power on demand. So essentially, if you're trying to do any type of ai process, you need to have your data somewhere, stuart. And then you need to be using some sort of tools, whether lowlands day, you've internally developed, whether him somebody like smoke like can provide or you want to use, don't from aws. It's really easy relevant, the good of the day, it will all go through some kind of a plot from so this out snowflake, here and that's why we like this is not a one porter in, but so as you can see in the results, I think some investors earlier this year, we're expecting them to blowout results and grow at like about 30% growth rate. We're still going through jays downturn and companies are just emerging from doing their cloud cloud optimizations. So it's going to be a slow recovery, but I think they're doing the right things. They're introducing the right products and I liked and you see, I like how he's bringing it into oriole angle to the story. Alright yvonne out we started with 3 guests and we've got you one this episode of. >> Nvidia survivor. Thank you so much for joining us that they've been adele of us, ca a spear invest. Nvidia is up, but it's like a pretty pedestrian gain of just 2.4% will continue to track that in the after hours session. Is that handily beat expectations? Speaking of survivors, kind of a game of survivor in office real estate market. We're going to talk to somebody with decades of experience in this sector about what happens next. When do we find stabilization? Michael emory, founder and executive chair of allied property joins us next. Closed captioning of this bnn Bloomberg program is brought to you by Avenue Living Asset Management. Investing in the Everyday. (Dramatic music) I am Paul Atreides! Duke of Arrakis! Let me fight beside you. I'll show you the way. The world of investments is growing, offering more alternatives than ever. ( ) Choose an alternative that invests, in what's here to stay. ( ) Things you can see and touch. ( ) Things that are part of our everyday lives. ( ) Avenue Living brings a different approach. ( ) One that's steeped in history, experience, and trust. ( ) Choose a proven alternative. Talk to your advisor about Avenue Living today. ( ) In an ever changing market, invest in the essentials because there was always a need for multi residential, warehousing and logistics, essential retail, and renewable infrastructure assets. Build your client's portfolio with an investment strategy grounded in the needs of Canadians. Access tax efficient, institutional quality hard assets backed by a track record of steady performance and consistent distributions. Contact a Skyline Advisor today. We all strive for peace of mind, whether in life or our investments. But that's not easy with today's market complexity. For over two decades, Goodreid has helped Canadians from coast to coast to achieve their financial goals, through both good times and bad. Working with our portfolio managers, you can navigate tomorrow's financial uncertainty with confidence. It's time. Take control of your wealth. I'm Gordon Reid. Invest with confidence, invest with peace of mind. To learn more,visit Goodreid.com. Hi, I'm Taylor Thoen, next time on btv. The White Gold project is made up of a couple of different core zones. The Golden Saddle is the largest in total. It's over 2.1 million ounces on average grade of about two grams per ton. We've also made a couple of very significant new discoveries in the last couple of years. We think those are company maker opportunities and we're really excited to do some more work down there as well. Watch us online or here on bnn Bloomberg. (Upbeat electronic music) well, we know that commercial real estate, especially office space has been hit since the pandemic in companies like allied property reit, no exception. They're seeing occupancy levels at the lowest in 10 years. They've also got some elevated debt levels to contend with. But our next guest says that there are reasons for optimism and that urban intensification will push forward change in the industry. Michael emory is the founder and executive chair of allied properties reit and

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