RiskReversal Pod

Gene Munster: Nvidia Earnings Preview, Apple's $500 Billion AI Investment & Microsoft's Computing Conundrum

Feb 25, 2025

Gene Munster, managing partner at Deepwater Asset Management and a tech market expert, dives into the dynamics of tech investments. He discusses Apple's staggering $500 billion commitment to AI and its potential impact on the market. The conversation shifts to Microsoft’s surprising decision to cancel AI data center leases and what that means for their strategy. Anticipating Nvidia’s upcoming earnings report, they analyze investor sentiment amid rapid technology changes, focusing on long-term growth challenges for Nvidia stakeholders.

36:02

Episode guests

Gene Munster

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Episode notes

Podcast summary created with Snipd AI

Quick takeaways

Apple's $500 billion investment in AI infrastructure signals a significant strategy shift towards technological autonomy and job creation in the US.

Microsoft's cancellation of AI data center leases raises concerns about demand sustainability and potential shifts in the broader tech industry's growth trajectory.

Deep dives

Apple's Significant Investment in AI Infrastructure

Apple is planning to invest $500 billion over the next four years in building its AI infrastructure, aiming to create around 20,000 jobs. This increase in expenditure represents a significant step up from the previously announced $430 million, reflecting Apple's commitment to enhancing its capabilities in AI. The substantial investment includes a range of costs, from hardware to marketing, positioning Apple to take greater control over its AI technology and reduce reliance on external partners like OpenAI. This shift suggests a strategic move to align more closely with the demands of the current technological landscape, particularly as the market increasingly prioritizes AI-driven solutions.

Intro

5min

Apple's Investment Strategy in AI and Hardware Infrastructure

2min

Apple's AI Strategy and Market Dynamics

13min

Investor Sentiment and AI Adoption in a Shifting Market

5min

NVIDIA's Earnings: Investor Sentiment and Growth Factors

10min

Dan Nathan is joined by Gene Munster, managing partner at Deepwater Asset Management, to discuss various major tech headlines and their potential market impact. The conversation starts with Apple's investment of $500 billion in AI infrastructure and its implications. They also touch on a recent analyst report about Microsoft canceling some AI data center leases and the broader AI adoption theme in the market. The episode delves deeply into Nvidia, anticipating their upcoming earnings report and evaluating expectations for their guidance. They also discuss the challenge for Nvidia investors in assessing long-term growth amidst rapid technological advancements and market volatility.

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