CGTN Europe interviewed Angelo Zino, Senior Vice President and Technology Equity Analyst at CFRA
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00:00Well, let's talk now to Angelo Zeno, who's Senior Vice President and Technology Equity
00:04Analyst at the research company CFRA.
00:06Good to see you, Angelo.
00:08Welcome to the program.
00:10So a couple of really big announcements made there by Jensen Huang.
00:15Let's talk about this one that could perhaps transform robotics.
00:19What does that mean for us?
00:20Yeah, I mean, listen, I think when you kind of think about Jensen and kind of what he
00:26talked about specifically, and really the opportunities he touted last night, it was
00:30in really three areas, right?
00:32It's agentic AI, self-driving cars, and robotics humanoids.
00:36And he announced a number of kind of software upgrades and capabilities, you know, particularly
00:42the Cosmos platform out there that really is going to kind of pave the way towards kind
00:46of this, towards making robotics a reality here over the next couple of years.
00:51We're thinking kind of more two to three years away, but you know, he's definitely planting
00:55the seeds right now with kind of the chip architecture, as well as the software capabilities.
01:00And our view is it's going to completely kind of redesign the supply chain out there at
01:06some point in time.
01:07Autonomous cars, he highlighted as kind of this multi, the first multi-trillion dollar
01:12opportunity within kind of the robotics ecosystem out there.
01:16We're a believer in that as well.
01:18So it's going to completely transform many industries out there, specifically and maybe
01:23foremost, the car industry.
01:27So that in itself, huge.
01:29But there was more, wasn't there?
01:32Including a next generation of gaming chips with AI capability.
01:36And that could really be transformative for gaming.
01:38Yeah, so as far as kind of what they announced on the hardware side of things, it really
01:44kind of was on the gaming side.
01:46And they kind of announced their kind of next gen RTX chips out there.
01:51And this was actually somewhat delayed, to be honest with you.
01:54Their cadence has historically been every two years or so.
01:57The expectation was this was going to kind of come out ahead of the holiday selling season.
02:01The fact of the matter is Blackwell was kind of delayed.
02:04Priority right now is Blackwell on the data center server side of things.
02:08They had to get that right.
02:09So we're finally seeing these chips here.
02:11They're going to ramp, you know, in a cadence where kind of the highest performing chips
02:15will kind of roll out first and kind of go mainstream over the next couple of months.
02:19But when we kind of saw some of the details and some of the capabilities, and it is going
02:23to be somewhat AI, there are a lot of AI features kind of connected to it.
02:27But specifically, when you kind of look at the movie like type capabilities that these
02:32graphics chips are going to provide out there, we think it's absolutely phenomenal.
02:37But that said, gaming is now less than 10 percent of sales for NVIDIA.
02:43So it's not going to have kind of a massive, it's not going to be a massive needle driver
02:47out there for NVIDIA itself.
02:48It's going to be a bigger kind of driver for the broader gaming industry.
02:51And we've already seen, haven't we, enormous developments in this area, something that's
02:55already developing fast.
02:57Do you think these innovations will see things speed up even more, bring perhaps what we've
03:01thought of as being science fiction to science reality?
03:06So we do think 2025 will kind of be the first year where AI really kind of goes into implementation.
03:12So we've kind of seen this evolution of the AI over the last couple of years where we're
03:17kind of now in this kind of gen AI phase, which kind of began to ramp in 2023.
03:22As we kind of go into 2025, we think 25 will be the year of agentic AI, these AI agents
03:27out there across the enterprise space, specifically in areas like call centers and what have you.
03:33So, you know, as we kind of flow through that in 25 and 26, I think as you get to 2027 and
03:40the latter half of this decade, that's really where you're going to see more of those futuristic
03:44opportunities out there as far as robotics, you know, greater autonomous capabilities
03:49in the car is concerned.
03:51But yeah, I mean, we think it is absolutely kind of on the table right now.
03:55And that kind of shift towards artificial general intelligence, that kind of all these
03:59megacat companies have talked about, I think you're going to see here, you know, sooner
04:04than later.
04:05So when we talk about Nvidia in particular, this is a company that's really led the way
04:09in AI chip making.
04:11Are there any other competitors, any other companies that can come close to what it's
04:15doing?
04:16Probably not, not on the chip side of things, if that's kind of, you know, the conversation
04:20that we're having when you kind of think about, you know, other players, kind of in kind of
04:26the compute side of things that can kind of help pave the way towards kind of great greater
04:30compute abilities.
04:31And, you know, and then kind of drive greater software innovation.
04:35The answer to that is yes.
04:36I mean, you've got companies out there like in AMD, which also kind of gave their keynote
04:40speech yesterday.
04:42Also companies on the custom silicon side of things, which were very bullish on a name
04:46like Broadcom and Marvell on that side of things, especially as we move towards more
04:51on device capabilities.
04:54And you know, you start thinking about robotics or autonomous cars.
04:57You look at what Elon Musk has done on Tesla side of things, where they have that kind
05:00of custom silicon chip driving their cars out there.
05:04We think custom silicon is going to be a huge opportunity out there.
05:07So they're going to be other players that are going to kind of push the limitations
05:11out there as far as kind of progressing towards kind of this next evolution of AI.
05:16It's not going to be just NVIDIA, but NVIDIA will clearly lead the way here.
05:20And we think they've got the best pipeline of the bunch.
05:23So NVIDIA really has sort of been dominant, hasn't it?
05:27Perhaps too dominant, though, because that does bring risks, doesn't it?
05:30In forms of regulation and competition.
05:33It does bring risk out there.
05:35And listen, I mean, this is a company that maybe does have some monopolistic capability,
05:39you know, you know, themes on their side of things.
05:44But, you know, when all said and done out there, this is a company where, you know,
05:49we think they're going to continue to be a market share leader.
05:51They're not going to own the, you know, the full pie out there.
05:55And a big reason for that is when you start thinking about a lot of the hyperscalers out
05:59there and other providers out there.
06:01No company wants to kind of be completely tied to one supplier out there or reliant
06:07on kind of, you know, NVIDIA exclusively.
06:10So it's going to broaden out here over the next couple of years, and there are going
06:13to kind of be regulatory concerns that probably pop up for NVIDIA just because of their size
06:18out there.
06:19But that said, you know, it's not going to take away, we think, from the potential of
06:23this company and the opportunities, at least for them to continue to grow their revenue
06:28from these levels.
06:30Angelo, great to talk to you today.
06:31Thank you so much for being on the program.
06:33That's Angelo Zeno, Senior Vice President and Technology Equity Analyst at CFRA.