Source: CNBC Television
'For generative A.I. China absolutely needs access to global semiconductors', says Patrick Moorhead
Jun 28, 2023 · 4m 32s
https://www.youtube.com/watch?v=u-CNY01Jtds
ON THE CHIP SUPPLIER. THE CFO DOWNPLAYED THE IMMEDIATE EFFECTS OF THE BAND. WHAT DO THESE RESTRICTIONS MEAN FOR THE CHIP SECTOR AS A WHOLE? LET'S BRING IN THE FOUNDER AND CEO OF -- PATRICK, THEY ARE DOWN ON THIS NEWS. IT IS UP 180% HERE TODAY. THE MARKET IS NOT PANICKED ABOUT THIS PROSPECT. HOW SHOULD WE THINK ABOUT THESE THREATS AND RESTRICTION WHEN IT LEADS TO DEMAND
OF THESE COMPANIES. >> COMPANIES LIKE NVIDIA ROCKETSHIP OVER THE LAST SIX MONTHS. OVER 163%. ANY AMOUNT OF POTENTIAL BAD NEWS SHORT-TERM CAN HAVE AN IMPACT. I'M RECOMMENDING THAT WE LOOK AT THIS LONG TERM. WE ARE AT ONE OF THESE BIG INDUSTRY INFLECTION POINTS. RECOGNIZING THAT PEOPLE THROW THAT TERM AROUND. THIS IS BIG. IT IS AS BIG AS SMART PHONES. I WAS A SKEPTIC WHEN IT FIRST
CAME OUT THAT IT WOULD BE AS BIG AS SOMETHING LIKE THAT. IF YOU ARE LOOKING FOR LONG- TERM GROWTH, COMPANIES LIKE NVIDIA AND MICRON WILL TAKE ADVANTAGE OF THIS LONG-TERM BILL. >> THEY WILL BE ABLE TO IN A TIMELY WAY TO TAKE ADVANTAGE OF THIS? HOW MUCH HAS THE MARKET ALREADY GIVEN THEM CREDIT FOR GROWING OVER YEARS TO COME AND HOW MUCH IS THERE TO BE
REALIZED? >> I THINK THE MARKET HAS GIVEN THEM A LOT OF CREDIT. THEY HAVE 100% MARKET SHARE IN THE TRAINING OF THESE COMPLEX MODELS. CLOSE TO 25% MARKET SHARE. A LOT OF THAT IS STILL FILLED IN. THERE IS MORE TO RUN. SEEMS LIKE CHINA WILL POP UP AND IT SCARES INVESTORS. I READ WHAT THE COMPANY CFO SAID. I DO BUY INTO THAT. YOU'RE LOOKING AT A
60% UPSIDE AS WE SAW IN THE FORECAST. A FIVE OR 10% HIT. IT WILL NOT BE SOMETHING THAT IS CATASTROPHIC SHORT-TERM OR LONG-TERM. 92 TO 95% OF THE DATA CENTER SHARE COMES OUTSIDE OF CHINA REGARDLESS OF WHAT HAPPENS TO THE FUTURE. >> CAN CHINA AFFORD -- CAN CHINA AFFORD NOT TO IMPORT EVERYTHING FROM THE REST OF THE WORLD AND TRY AND KEEP UP? THERE HAS BEEN
RESTRICTIONS ON THE EQUIPMENT GOING IN THERE. THEY ARE TRYING TO GET AS MUCH PRODUCTION AS POSSIBLE. >> WITH GENERATIVE AIR, CHINA ABSOLUTELY NEEDS ACCESS TO GLOBAL SEMI CONDUCTORS AND CHIPMAKING EQUIPMENT OF THE FUTURE. WITHOUT THAT, THEY ARE DEAD IN THE WATER. THEY CAN DO IT. IT WILL TAKE A LOT MORE TIME. THEIR NEW HARDWARE ACCELERATES THESE LARGE MODELS BY A FACTOR OF 10, EVEN THOUGH NVIDIA
IS SHIPPING IN A LOWER PERFORMANCE VERSION 2 CHINA ALREADY, THEY CAN DO IT, IT WILL BE SLOW. THEY HAVE TO GET ACCESS TO THIS TECHNOLOGY TO KEEP PACE WITH THE REST OF THE WORLD. THIS IS WHERE THE BIDEN ADMINISTRATION SEES THIS. THIS STRUGGLE GOES BACK A DECADE. CHINA WAS BLOCKING COMPANIES
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