SHOWNOTES
In this abbreviated episode, Mike and Jason discuss the recent tariff issues between the US and China, their potential impact on the tech and healthcare industries, and the implications of NVIDIA's AI breakthroughs for data center efficiency. They also compare the resilience of Coca-Cola and NVIDIA as investments during a potential recession.
[00:00:54] Intro The hosts explain the reason for the abbreviated episode due to recording issues and announce the focus on healthcare and tech topics.
[00:01:50] Tariff 90-day Pause Mike and Jason discuss the recent 90-day pause in tariff implementation announced by Trump, noting that China was singled out among all global economies. They speculate on the potential national security implications and the US's dependence on China for critical supply chains.
[00:03:55] Tariff Loopholes The hosts discuss a loophole in the tariffs, where landing a GPU in Canada or Mexico would qualify for a 0% tariff under the USMCA trade agreement. They question the effectiveness of the tariffs given the ease of circumvention.
[00:04:44] Datacenter Capex Pullback? Mike and Jason discuss the potential impact of Microsoft canceling data center capacity and leases on the hyperscalers' CapEx spending. They consider the role of OpenAI's partnership with Oracle in this shift and the implications for NVIDIA's GB200 and GB300 demand.
[00:07:36] Other Capex Announcements The hosts mention Google's reaffirmation of their $75 billion CapEx commitment and OpenAI's large funding round, suggesting that there are still willing buyers even if there is slack in GB200 demand.
[00:07:59] Another 'DeepSeek' Moment, This Time from NVIDIA Mike and Jason discuss NVIDIA's announcement of optimizing Meta's Llama model to produce better reasoning than DeepSeek at half the size. They highlight the importance of software improvements alongside hardware advancements and the potential for Hopper servers to remain useful by running these optimized models.
[00:11:34] Coke vs. NVIDIA The hosts compare the investment prospects of Coca-Cola and NVIDIA, both trading at similar earnings multiples, in the face of a potential recession. They discuss the risks to Coca-Cola's revenue from changes to the SNAP program and the growth potential of NVIDIA despite possible short-term challenges.
[00:13:49] Healthcare News Jason shares updates on Vertex's Journavx pain treatment, noting its widespread availability in US pharmacies. He also mentions Trump's promise of major pharmaceutical tariffs, though the timeline remains uncertain given the 90-day tariff pause.
The episode concludes with a reminder from Warren Buffett to embrace market downturns as opportunities to "eat more hamburgers while they're cheap."
NVDA 0.00%↑ KO 0.00%↑ MSFT 0.00%↑ GOOGL 0.00%↑ META 0.00%↑
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