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[00:00:04] Doug McIntyre: Lee, I’m worried about NVIDIA and that’s because I think that. The, the argument that they’re making about why they should be allowed to sell chips into China is right. If we don’t sell them our chips, they will make their own chips. Once they make their own chips, they become a competitor to NVIDIA.
[00:00:26] Doug McIntyre: Would you rather have China buy our chips? Or would you rather have China build competing chips, which means we’ll never sell chips there, and means that China can eventually sell those chips to anybody, which means that NVIDIA potentially has a global competitor. So I think the argument that NVIDIA should be able to sell chips, its most powerful chips into China, it is a mistake that the federal government is saying you can’t do it.
[00:00:52] Lee Jackson: Yeah, I, I tend to agree simply because, and I realize why, because it’s our ongoing, you know, wrestling the 800 foot trade alligator with these guys and, you know, and she’s moving slow on it. But yeah, I really do think that, that even if they had to put in some stipulations on the sales, or whatever that the government could do, yeah, I think it’s bad because.
[00:01:17] Lee Jackson: And I don’t know if there’ll be a competing Chinese chip company with that kind of product soon, but there eventually you can count on, there’ll be one. ’cause you know how they are, Doug, if they can’t figure out how to do it, they just steal the technology.
[00:01:33] Doug McIntyre: Well, look, I don’t want to, you know, be too hard on the Chinese, but they have a history of taking things like Windows or Microsoft.
[00:01:42] Doug McIntyre: Yep. And basically, reverse engineering it and suddenly, I mean, Steve Ballmer said this is at least 20 years ago, that if every version of Windows that was in China was paid for, that China earnings for Microsoft (NASDAQ: MSFT) would be nine times what they year.
[00:02:06] Lee Jackson: Yeah, I remember that. And that was 20 years.
[00:02:09] Doug McIntyre: Yeah. If I’m an NVIDIA shareholder or I’m looking at buying it, I’m not really worried about their growth outside China.
[00:02:18] Doug McIntyre: Listen, is it gonna slow down some? Yes, it has to.
[00:02:21] Lee Jackson: Well, it always does. Yeah.
[00:02:23] Doug McIntyre: But is it going to be the gold standard? I think that’s gonna be true for years, if not more. I don’t see a MD or somebody like sneaking up behind them and suddenly they’re not in first place. So to me, the, the existential threat to the current NVIDIA share price is the fact that we’re not letting China buy NVIDIA chips.
[00:02:48] Lee Jackson: Yeah, yeah. No, I, I agree. And to be honest. Again, like you said, they can reverse engineer stuff. They could probably, if they, you know, if they take one apart and dig into it long enough, they’ll be able to copy what they can come up with. But yeah, the thing that’s so frustrating about all this is, uh, about the whole trade hu of blue is that everything the president has said basically is exactly the truth.
[00:03:12] Lee Jackson: We’ve had unfair trade penalties placed against us for decades, literally 50, 60 years, and nobody did a damn thing about it. And so we need to do something. But yeah, I mean, there’s a point when you’ve gotta say, okay, what companies. Can are really gonna get hurt the hardest if their products are restricted.
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