Beth Kindig Discusses AI Stocks with Tier 1 Media
July 05, 2023
Beth Kindig
Lead Tech Analyst
Tier 1 Media outlets such as Fox Business News, Bloomberg and Real Vision interviewed Beth four times over the past month about her call on Nvidia and also picked her brain on other AI-related topics.
Below are clips of Beth Kindig’s Tier 1 media coverage in the month of May and June.
Background:
I/O Fund Lead Tech Analyst Beth Kindig was early to Nvidia’s AI story with five years of coverage dating back to 2018 on the very specific thesis that this company would one day lead on AI. Beth’s prescient call on Nvidia and a handful of others led to the I/O Fund portfolio being positioned with a 45% allocation to AI stocks going into May. Compare this to Stanley Drunkenmiller, who had 29.5% allocation in AI, and has been covered by the press as the leading AI investor.
The stock is up 710% since her coverage five years ago when she stated: “Nvidia is already the universal platform for development, but this won’t become obvious until innovation in artificial intelligence matures. Developers are programming the future of artificial intelligence applications on Nvidia because GPUs are easier and more flexible than customized TPU chips from Google or FPGA chips used by Microsoft […] Data center revenue stands at 24% and is rapidly growing. When artificial intelligence matures, you can expect data center revenue to be Nvidia’s top revenue segment. Despite the corrections we’ve seen in the technology sector, and with Nvidia stock specifically, investors who remain patient will have a sizeable return in the future.
Source: YCharts
Beth on Fox Business News: Nvidia’s future AI dominance will be propelled by Software
In the clip below, Beth Kindig discusses with Charles Payne of Fox Business News how “it was a hardware that provided the $950 billion to $1 trillion market cap we see today [for Nvidia], but it will be software that will propels Nvidia into the Trillions for market cap.”
She specifically points toward DGX Cloud and AI-as-a-service for Nvidia’s software layer and how this is expected to eventually eclipse its hardware revenue. The cost of AI supercomputers can be several million dollars and Nvidia will help to lower the costs of AI development by allowing enterprises and startups to rent a supercomputer in the cloud for roughly $40,000 a month. Kindig states this is likely to be popular not only because the costs of AI development are prohibitive but because AI is a race in terms of time to market, as well.
The video below was originally recorded on June 9, 2023.
Beth on Fox Business News: AI will drive $100 billion in revenue for Microsoft
Microsoft is another AI stock that Charles Payne interviewed Beth Kindig about later in the month of June. Payne specifically asked Kindig about her research note that stated the company is well positioned to increase revenue by $100 Billion. She cites Microsoft CoPilot as a primary driver as it can immediately increase enterprise spend on the Office 365 productivity suite, as well Bing Search which will add $2 billion in revenue for every 1% of market share that Bing takes from Google as a result of Chat-GPT. In addition to this, cybersecurity is a $15 billion market and it can easily double by 2027 with the help of AI.
The video below was originally recorded on June 15, 2023. You can view the clip here.
Beth on Bloomberg Markets: Nvidia benefits from Accelerated Computing and Generative AI
Beth Kindig discusses Nvidia's competitive strength and AI. She speaks with Rishaad Salamat, David Ingles, and Yvonne Man on "Bloomberg Markets: China Open." Beth Kindig highlights that the company is very resilient and insulated. The reason is that companies have been saving cash to buy accelerated computing for the data center and Generative AI applications. Most tech companies are coming under tighter tech budgets, but the one area of growth is specifically AI within Big Tech capex budgets. This is the market Nvidia serves.
Every Thursday at 4:30 pm Eastern, the I/O Fund team holds a webinar for premium members to discuss how to navigate the broad market, as well as various stock entries and exits. We offer trade alerts plus an automated hedging signal. The I/O Fund team is one of the only audited portfolios available to individual investors. Learn more here >>
Beth said that semiconductors will continue to be winners because this is what is enabling accelerated computing. In the past, data center investment was focused on processors. Now, they have to move to accelerated computing, and that’s where Nvidia benefits because NVDA is the leader in parallel processing.
At minute 3:00, Beth outlines the risks for China, stating that any long-term Nvidia investor should be prepared for China to be the primary threat for this company. “This can rock the stock, so to speak,” she stated. AI is an immense opportunity but “for these major design companies which includes AMD, China could not be more important.”
The video was originally recorded on May 25, 2023.
Real Vision
Beth was also interviewed by Real Vision, where she followed up on her initial call in January to buy Nvidia. At the time, she was asked what would cause her to sell the stock and she “absolutely nothing except maybe World War 3.” Fast forward, and today Beth has the highest returns from the 3 Ideas Series on Real Vision. The follow up is behind a paywall, but those with a Real Vision membership can view it here:
The video was originally recorded on May 25, 2023.
As stated in the article, Beth Kindig and I/O Fund currently own shares of NVDA. This is not financial advice. Please consult with your financial advisor in regards to any stocks you buy.
Recommended Readings:
More To Explore
Newsletter
Nvidia and Google Are Crowding TSMC’s N3 Node - Can Intel Fill the Gap?
Nvidia is moving its next-generation Rubin GPUs from 4nm to 3nm, yet Google’s latest TPUs are already on N3 and are expected to remain there. Meanwhile, a growing number of AI CPUs from Nvidia, Amazon
Intel vs TSMC: How CoWoS Packaging Constraints Could Create an Opportunity for Intel Foundry
Taiwan Semiconductor (TSMC) is the single, most important company to the AI industry. However, to compete with the incumbent, Intel does not need to beat TSMC at leading-edge manufacturing. It only ne
Big Tech’s Free Cash Flow is Turning Negative – Who's Next?
Big Tech’s AI revenue is accelerating, but free cash flow is moving sharply in the opposite direction. Across Google, Microsoft, Meta and Amazon, capex is rising much faster than operating cash flow a
Big Tech Earnings Preview: Is AI Monetization Finally Catching Up to Capex?
The most pronounced difference between 2026’s tech rally compared to rallies in the past is which companies have been left out of it. The names most associated with the AI trade have hardly participat
Nvidia, CXL, and the Battle to Improve AI Inference Economics
This is Part 2 of our two-part series on AI inference economics. In Part 1 — Why Nvidia's Next AI Battle Is About Tokens per Watt, we laid out why tokens per watt has become the defining metric for in
Why Nvidia’s Next AI Battle Is About Tokens per Watt
As hyperscalers move from building AI infrastructure to monetizing it, tokens per watt helps to reflect if revenue is scaling and if profitability is improving. Offload engines can increase tokens per
Micron Is Up 900%. Here’s Why the AI Memory Trade May Still Have Room to Run
Over the past 10 months, memory chip stocks have gone from being solid beneficiaries of the AI boom to capturing a massively outsized piece of the return pie. The inflection in Micron’s performance de
Why the S&P 500 Shrugged Off the Iran War — and What Could Finally Break the Rally
On February 28th, the U.S. went to war with Iran, and the market was handed the kind of shock it hasn't contended with for years. The conflict set off a chain reaction across the region: an ongoing su
Nvidia, CoreWeave, and Nebius: Inside the Circular Financing of the GPU Boom
Neoclouds are one of the more hotly debated AI business models, with CoreWeave and Nebius being the two most widely recognized names. These companies have seen their sales, backlog, and share prices s
AMD, Nvidia, Arm, Intel: Inside the $120 Billion CPU Gold Rush
CPUs have gone from an afterthought to becoming the AI trade’s next great bottleneck – and with AMD, Nvidia, Arm and Intel circling a market that is doubling nearly overnight, the only question left i
