AI vs Macro: What’s Really Driving the Market Rally?

Hello and welcome back to the market maker podcast and we are going to talk about the ongoing rally in us stocks. I think it's the S&P 500 on track for his eighth straight week of gains. You know, what UK political crisis, do you have political unrest in the Middle East? It's just record highs here. It's the gravy train if you're not on it. Where have you been? No, in all seriousness, we're going to break down a little bit of what's driving those gains and ultimately a little bit of a dive. You can't get away from it at the moment into the AI narrative because also we've had Nvidia's earnings which we can break down a little bit. Some interesting new technology that they're looking to roll out which we can look to try and explain. But it also the IPO feeding frenzy, everyone's at the trough at the moment, salivating for the SpaceX official prospectors got filed this week and then we've also got open AI and of course and the topic coming down the pipe. But before we begin, quick shout out to all the students who joined us at Morgan Stanley's head office in London yesterday as the official kickoff for our summer analyst training program. If you're interested in that program, check out the show notes. But also some of our high potential candidates were there. Some of the best and brightest from our simulations from all over Emia. So great to have you all in the room. They managed to catch up with some yesterday peers. I did. Yeah. Yes, some really interesting, you know, young people. I think the talent pipeline is healthy and the future is bright people. Well, when I was walking from MS's office to where we were having our social in the evening, I got stopped in Canary Wharf. I couldn't get his name, but he was like, "Are you the guy from the podcast?" Yeah, I could be, yes. And then he said, "Oh, who's the younger guy?" And I said, "What do you mean? The younger guy?" And he said, "Right, Stephen." He was very, you all right, unfortunately, kids. I didn't realize the gap was so physically obvious between us and Stephen. Yeah, that's depressing. That's what we've on. So with that spirit of that, I'm going to wear a cap for the rest of the episode. So I feel, you know, new balance. Is that on trend anymore? Probably not, which means I'm a classic millennial. Exactly. All right, well, let's go. Let's talk about the S&P 500. And yeah, the longest streak of weekly gains since 2023. So should this be, what should we read into that? Well, we should read into it that, well, it's interesting, right? Because, so, Arali, with the S&P 500, it's obviously such a massive index, obviously the name gives it away. There's 500 companies in it. And so when that index goes up, you know, it could be for many different reasons. So I think you've kind of got to delve into the detail. It's okay, if the index is going up, well, what's driving that index higher? You know, which components of the 500 are actually, you know, leading the charge and responsible for the rally? And I think what's happened over the last few years is the, the kind of domination of that index from the kind of tech sector and the super scalers. You know, there's such a huge portion of the index that really in many ways, most of, you know, the other sort of, let's just say the other 493 stocks in the index. Does it matter how they're performing in terms of how the overall index performs? So I think we're in this slightly skewed world that everyone looks at the S&P index and go, oh my god, it's just marching higher. Can you not see there's a war in the Gulf? And it's like, well, well, yeah, I mean, it is marching higher, but why? And remember, we've got this, the, this, this kind of, we talked at length about this kind of double theme going on where, yes, we've got this war in the Middle East. Yes, we've got inflation concerns. Yes, bond yields are rising. Yes, we've gone from hoping central banks will cut to worrying central banks will hike that macro shift. If all, if, if nothing else was happening, then these markets would be heavily down. But it's not the only thing that's happening. This is our the AI revolution thing going on, which is the counterbalance. And right now, the counterbalance is winning the battle. And the market, can I ask a question then? So naturally, people will look back and use historical patterns. So how is economic data performs? What's the correlation between the indices and those economic signals? And they will try to extrapolate in order to predict the future. The only thing is in the past, there wasn't that yellow. That's right. The narrative was not there. This counterbalance didn't exist. So how important is looking at previous economic cycles to the current one that we're experiencing? Well, I think that's why people are really scratching their heads. Or some, I should, well, not some people are scratching their heads going, what the hell is going on? Is this like gravity defying, move to the upside? But I think the the fact that the market is going up means that institutional players are buying it. You know, the professionals, if you like, they're buying this thing. That's why it's going up. You know, they're not the ones sat there scratching their heads, what's going on. They're the ones that are long and getting more long because they understand this is a secular theme. So we talk about cyclical, you know, the economic cycle, right? The economic cycle will, I mean, historically, if you go back, whatever, post-second world war, let's say, then on average, an economic cycle last seven years. And often an asset manager will be looking at that cycle and trying to figure out where are we in the cycle right now at the moment. Okay, let's go back and look at the previous times we were at this point in the cycle. And right, as you were saying, you know, how did things behave then? And okay, let's expect the same pattern to repeat. That's fine, right? It's just that every now and then you get what's called a secular shift, which kind of comes on top of that, which is more of a it's not a seven-year cycle, a secular change can lead to a 10-20-year situation. So AI is a secular moment, all right? It's a revolution. It's a game changer. It will change economies, you know, not just this year. It'll change economies forever, right? So we're in the middle of this sort of trying to price in a new reality that now has AI embedded in it. And this is going to drive the productivity gains that have been missing an absent from certainly Western economies, you know, for 20 years. So there's a secular shift going on. So, but like the industry professionals will understand that, and right now, they're betting that that secular play is the power is the more powerful component. And that's why the market's going up. But, you know, we should look at the market rally, because the kind of detail, what's driving the rally has changed. So whilst you look at the index and you're going, wow, you just get a chart of the S&P 500. It bottomed on March 30th, okay? And from, you know, based off the kind of initial reaction to the golf situation with the US and Iran, bottomed on March 30th. And then since then, we've just gone through the roof. In fact, the S&P's done more than 1,000 points. So we, it bottoms up, just well, let's just round the numbers, just above 6,300, okay? We're now trading 7,470. And just to give it another stat of the, the change in the flow of money and expectation, with that move. So Bank of America have their annual hedge fund manager survey, or not and monthly. And actually, what that found was that asset allocators boosted their stock exposure to a net 50% overweight in May from 13% last month. Wow. That numbers now allocation is at a record. Yeah. Well, that in itself is a bearish signal. Because if everyone has no bought, you know, it's, it's the change from underweight to overweight that moves the market. Because that's where you're buying stocks to change your waiting, right? But once you've done that, you're not buying anymore, because now you're in the overweight position. So and as Bank of America's main strategist, I'm called Michael Hartnet said, given that, fund managers are now the most overweight on equities that they've been since January 2022. Close to them triggering the Bank of America's cell signal. Oh, there you go. Well, also, and I'll add fuel to this bearish fire because when you do look at the rally, so as I said, March 30 is with the low. We've done a thousand plus points since then. The first part of that rally. And we're less break it down like March 30th. So we've based our six weeks. Let's call it. What did you say seven eight weeks up now? we're about to do eight weeks up in a row, right? The first, let's say the first quarter of that rally, two weeks was basically the whole market. It was incredibly broad-based. And actually that's a really powerful sign of a sustainable uptrend, if just everything's getting poor, okay? So that was the first two weeks of the rally. The second two weeks, it kind of shifted, it was no longer the whole of the market, it was then just really the large caps, okay? So now this is where the S&P was taking over, 'cause it's not just the S&P, we look at the Russell 2000 index, that's an index of small caps, right? So all indices were up in the first two weeks. Second two weeks, the S&P kind of basically, kind of, you know, went ahead, and it was the large caps that were continuing to rally, the small caps kind of ran our steam. Then the kind of third two week segment, now within the S&P, it was no longer the whole of the S&P, large caps moving up, it was just info tech, okay? It was just the tech stocks that were rallying, and I would say in the final two weeks, it's no longer all of the tech stocks, it's actually you just zoom in to basically the hardware and the semiconductors, specifically, that are actually still sustaining the rally. So as the rally goes on, if you look at it, just from a complete top level, what's the market's going up? But the context of that rally's really shifted, and the school of thought is that the narrower the rally becomes, i.e., the fewer and fewer and fewer components that are actually driving it, well then the more you should expect that rally to reach its end, the less sustainable it is. So really we're just on the AI, capex, spending sort of thesis, and if that holds out, then certainly the hardware and semiconductors portion of the S&P, 100 will carry on going up. - Quick question for you then, so connecting that to the macro picture, which is about the bond yields we've talked a lot about in recent weeks. So the bond yields have been moving because future inflation has expected to be higher. Now they're actually inflation in itself, hasn't yet perhaps gone to where it might go, but markets are forward looking. So if you're saying that inflation is coming, well, surely that risk has already been baked in, no? - Yeah, it's just, I mean like, you could go back like talking about going back and when did we last have a situation like this and what happened? So 2021's a good parallel. So we had a really strong post COVID, obviously it was the kind of mega-cap tech. That's where the magnificent 7 came from. It was that kind of rally in 2021, right? But then the breadth of the rally deteriorated, it became narrower and narrower, and then we had the inflation crisis and transitory and anyway, the Fed got it wrong, but then when the Fed finally started to hike, that's when it all fell over. And 2022 became one of the worst years, generally for stock markets we've ever seen. So I think we're kind of in that holding pattern right now where we know we're not getting cuts anymore, but are we getting hikes? It is still an open question. I don't know, we're pricing in the idea we will, but what are we pricing in? Couple of hikes, maybe. So we're still in that situation where yes, this oil price is at 100 and where are we right now. I mean, everyone's forgot, just stopped talking about oil to be honest, but Brent's at $105. So it's still up there, obviously. PPI, which is producer price inflation, which is in some ways a lead indicator to CPI, in some ways it's complicated, but PPI is what the producers pay for their, let's say, their components, then they're building their products and then they're selling it to the consumer. So you would expect if the producer prices are rising, you'd expect that to result to prices of goods, finished goods rising, and that would be CPI, right? And that's what the central bank's particularly interested in and maybe trying to control rates with. But PPI really ramped higher. I mean, that smashed up through 4%, highest reading since mid 2023. You know, inflation is coming and we know that it's just how long will it last? We don't know. And how many hikes we don't know. So that's the part that for now, investors are happy that in the meantime, as long as we're getting strong evidence that this AI CapEx frenzy is continuing, well, then we're, hey, you know, the economy's gonna be solid and we'll, it'll be strong enough to live through a little bit of inflation. And so let's get on this kind of secular AI gravy trade. On that point then, we have this week SpaceX followed its prospectus to the US regulators and Wednesday evening. You've got SpaceX, you've got OpenAI and Thropic, all likely, well, we know now SpaceX, but the others as well, very likely in the next six to nine months. A head of an IPO, I find it incredibly hard for that bubble to burst just yet. Because they will tactically, you would think strategically, if I was any of those companies, I'd be holding back some good news. You know, if I was anthropic, the mythos, there's gonna be a new mythos I would imagine before the IPO just to give it the last bed of juice. So what do you think about that as a - Yeah, for sure. - Yeah, for sure. - The IPO circus is kind of coming into town, baby. And you know, talk about distraction. I mean, what war in the Gulf? You know, there was talking about it anymore. So the SpaceX kind of show, I mean, that's gonna be epic in size and scale. It's gonna be the dominant story for weeks. And you're right, it's absolutely gonna keep this sort of, yeah, this hype train going with regards to this whole AI situation. And then obviously, athropic and an open AI, fine. We don't know the dates on those yet, but that's gonna continue this circus, right? And I would say, yeah, from a vibe's point of view, AI, you know, that theme and that thesis that I've been talking about that's really been driving the market up, should be sustained, you know, outside of something dramatic, a dramatic escalation of the geopolitical situation, for example. - I'm gonna throw in a Trump broke piece deal for you. - Yeah, well, there you go. Let's go. - Let's go. - It's got long history. - Everything. - Yeah, right. - So. So that's where we're at. And this SpaceX thing comes at a perfect time to sustain this kind of the whole story. - So a couple of things with the SpaceX side of things. So we do get more information. One of those, 'cause I know there's a lot of people that listen who are interested in banking, was Goldman Sachs has got the coveted left lead position. So, you know, this is, you know, it's gonna be the biggest on record ever. And there is severe fracking rights that come with that. So G.S. has snagged to that position, but a whole host of others will certainly be involved. What I thought was interesting reading an FTR school, was talking about SpaceX will make relatively few shares available to public investors at its IPO. So what that means is a small free float, which under old rules, that would exclude the company from indices trapped by, obviously, trillions of dollars of passive investments. What I thought was fascinating was the hunger and desire to get involved on this groundbreaking sized deal is the NASDAQ just went, it's okay, guys. We'll change the rules. We will loosen the rules to win you over, to get you to come over. And yeah, so what they're gonna do is, SpaceX and other new entrance, will be given an index waiting equivalent to three times the value of the shares floated. Which is amazing. So it kind of just juices, it's all these tactical little ways. It's so funny, it's like the company, the bankers will know on behalf of SpaceX that they've kind of got these exchanges to ransom here. And so, do make these changes, that fuels them, the supply and demand of the shares are available. And the shares themselves are gonna be three X on equivalent weighted basis. - Yes. - As I genius work. - It's quite amazing. It's like, I don't know, it's sort of, you just tear up the rule book every now and then, because something comes along that you have to have. I don't know, it's like, I don't know, suddenly messy says, right, I'm quitting this club. And I'm up, you know, anybody interested in buying me? And all other clubs go, well, let's scrap our wage cap. Let's just buy him. Let's just tear up our rule book. We just need this person because we don't want to. want the competition to get him. Right? So this is like Nasdaq and New York Stock Exchange fighting out a course SpaceX will immediately drop in as one of the biggest companies on the planet. Right? We're talking, it could be a two trillion valuation here. So you know, you want the big stuff in your index. And so yeah, the Nasdaq, I mean, it's cut, yeah, that that three times the kind of value of the shares being actually issued here is quite quite extraordinary. I have to say, but look, they're only raising 75. Well, I almost said they're only raising 75 billion, which would have, it will make it the biggest IPO in the history of mankind. So I think the word only is misplaced. But my point is, you know, 75 billion out of a two trillion dollar business, you know, what even is that? That's less than 5%. Right? If my quickly, it's like 3.5%. So that's the problem. The free flow is going to be so low that demand, there'll be such a huge supply and demand imbalance, meaning that demand to buy this stuff. I even have my mate call me up last week. Yeah, he works in, he's a contractor for like, in real estate, basically. So domestic real estate development. And he, he finds me up, how can I buy, how can I buy space shares in the IPO? I'm like, what? So look, my point is, right, everyone wants a piece of this action. Obviously, the professional industry needs it because don't forget you got index tracker funds. So, you know, if you've got, if you're running an index tracker, which is such a beast portion of the market these days with black rocks, kind of ETFs and so on, then this will be a new component, one of the biggest dropping into the Nasdaq. So everyone, all these index trackers have to buy it because they're, obviously, they've got to track the index, right? And so, but then you got the main street as well. Obviously, kind of get, kind of caught up in this frenzy and circus and they want to buy it as well. Can you, can you just break it down then to explain, say if you are a black rock and you're managing one of these funds and you need a certain calculated exposure to the index. So, you've got what's going to be a top 10 global sized company come into the index. There's only so much capital at play at any one time and although there will be inflows into the overall ETF, for example, surely some of the monies got a come from somewhere to rebalance, to accommodate, not just space X. Don't forget you've got Anthropic, which is going to be probably a trillion by the time it lists. Open AI is not short of that either. So, you've got possibly four trillion worth five to five trillion coming on. So, how does that work? Would you expect to see any sensitivity? I know there's some lock up periods for how this type of thing works as well. Yeah. What does that, I think, I think that, I mean, right, just sort of a top level then. Yes, you're going to have to, you know, what proportion of the index is Nvidia? Well, its proportion of the index is going to drop when a big new component slides in. So, actually, these passive funds will have to sell some, just call it Nvidia stock and kind of reallocate that cash to space X, right? So, yeah, you're going to get some selling of some of these bigger kind of stocks. I say outside of the kind of index trackers. I don't know. We've got such a mature sort of private markets these days that a lot of the big institutional funds, actually already own slices of anthropic or open AI or indeed space X. There's a lot of like, there's a kind of secondary market, you know, within that sort of private market where you're getting situations where, you know, space X staff have sold some of their shares, their share options vested, they've exercised the option, they then sell the shares, you know, to private institutional players, right? So, you do have some of the institutional money has already positioned themselves, you know, pre this thing going public. So, that's maybe a thing, but I would say money is finite and I am concerned about whoever's third in this sequence. I think maybe you've got a problem on their hands. So, space X is going to go first, right? That's coming in the June. I think probably anthropic will come second just because they're absolutely destroying it and smashing it and just smashing it out of the park. So obviously, off the co-tails of that momentum, timing's great. Open AI have faltered, they've stumbled, so not good timing, but they'll probably be third, but the problem is, is there any cash left to actually properly get involved with a third, you know, monster, monster, monster sized IPO? That'll be interesting to see. Yeah. Just to conclude there, JP Morgan have issued some projections for rebalancing outflows from passive funds. As a rough ballpark figure in video, they've got penciled at 21 billion, Apple around 16, Microsoft 12, Amazon 11. What, that's the amount of money that needs to come out of those stocks to move across to get your space X. Yes. Which actually. It's struck me as quite small. Yeah. That's right. So I wouldn't be too worried about that as being, you know, the Nvidia rally isn't over because SpaceX is joining the index. Put it that way. All right. Well, talking of Nvidia to do our final segment, we did have the earnings. They reported their fiscal first quarter reports. Last week, their revenue 81.62 billion exceeded expectations. A little bit light of the whisper number. So just to make sense of that, you have this official market consensus, which comes from the analysts on the street. But then you have like the whisper, the whisper is kind of more. Not a rumor. It's more like, in reality, we know it's probably going to lean at the top end of expectations. And so often the market is more primed for a reaction based off of whisper than the consensus is how it would work. So they would touch shy of the whisper, but pretty much in line with the whisper. Just in EPS, $1.87, the expectations of 176, adjusted gross margins of 75%, also a beat, and then looking ahead, the company guided to revenue of 91 billion dollars. And this is what they always say, plus or minus 2%, which is top of the whisper number that had been discussed among circles ahead of the earnings. So one important factor I did see, pretty solid on the guidance, especially as Nvidia is not assuming any data center compute revenue from China. Yeah, an outlook. Which is amazing. Without China. Yeah. Well, yeah, it guided 91 billion. I guess that's going back to my kind of more macro point earlier. This secular AI move and how long will it last? Well, Nvidia really becomes an absolute bell-weather moment, each quarter to provide evidence as to whether that AI revolution is actually sustainable. Is it continuing or not? And their guidance figures, the most important out of all of that. Obviously those numbers you've just rattled off, 81.62 billion, that's obviously behind us, right? That's the quarter that's just finished for them. So we want to know what about ahead? And so 91 billion guidance for the next quarter is really strong anyway, but is obviously when you've got zero China in there, it kind of makes that even more strong. So basically the point is that that AI revolution is alive and well. And that all important data center revenue, that was a record, that was 75.2 billion in Q1. So some stats for you. That's up 21% from the previous quarter, up 92% from a year ago. Yeah. And talking about the outlook then, I guess one of the things here is that the bar of expectation just continues to remain exceptionally high for Nvidia. So a lot of people looking ahead and thinking, okay, so what else is coming down the track? And one of the things that they said was that Vera Ruben is on track for a second half of 2026. And so while they, you know, somewhat casually smash the expectations as they always do, a lot of the people, analysts, the tech world and so on, have really plugged into Jensen Huang talking about in the conference call Vera Ruben and Vera CPU. So I just thought what you could do is look, we don't profess to be technology experts. Actually, speak to yourself. I think what we're going to attempt to do is try to talk about it as much layman. terms that our brains can handle and hopefully that will make sense of, you know, why the market is actually, this is quite exciting. And actually, the next leg almost of the future of Nvidia, you know, could well be dependent on some of this new technology coming. So, Vera Rubin and Vera CPU, what are we talking about here? Yeah, I mean, Vera Rubin, I don't know, sounds a bit like some kind of new luxury fashion line or something, but it's kind of basically as Nvidia's, it's their ultimate weapon. We'll talk about modes in a minute and they're kind of engineering cycle. It's just, anyway, we'll talk about that in a second, but basically it's one to understand this Vera Rubin thing. You've got to look at how AI is changing. So right now, I think about, so AI is mostly what we say is probably extracting, right? So chat GPT, you know, typing a question, bang, you get an answer, okay? That that that waves were in it. We're kind of probably approaching the end of it, right? So what's the next part? Well, the next wave is the eagentic AI wave. So this is when you basically have autonomous AI agents that they don't just talk and spit back a result to you, they actually do, right? So they, they'll go off and they'll write some code, they'll test it themselves, they'll reason through problems and they'll actually execute tasks. So on that point, then, so how did these new chips help help with that process? Yeah, well, I mean, let's maybe use an analogy, let's just say, I don't know, think about a busy restaurant kitchen, okay? So for years Nvidia's, basically, they've made the ultimate GPUs, all right? So in our kitchen, the GPUs think of them as the elite cooks that are on the line, all right? The row of cooks in the kitchen, they're all you're, they're getting on with the heavy lifting there, chopping the veg, they're cooking the steaks, whatever, right? But the line of cooks needs a head chef, that head chef, that it hands them the recipes, it organizes the orders, it, you know, it's managing the whole kitchen. So the head chef is the CPU, okay? Whereas all the agents on the line doing the actual work of the GPUs. And let me guess, the head chef can't handle like the new ingredients, the new recipes, they're out of date. Is that what, well, is that, yeah, but, yeah, but also the, the chefs on the line have just suddenly become supercharged. The CPUs can't handle the output from the GPUs anymore. So basically, you know, the standards CPUs, like you think about Intel, you know, AMD, you know, they were getting bogged down trying to coordinate these insane AI workloads. So basically, this just meant that Nvidia's really expensive snazzy GPUs were basically just sitting there, sitting around waiting, because the CPUs couldn't deal with it, okay? So, Nvidia said, fine, we're just going to have to, we'll just build our own head chef. So that's what the, the Vera CPU is. So it's a custom built brain designed specifically to orchestrate AI. So it runs data processing 50% faster and uses half the energy of traditional CPUs. Right. So this almost feels like that sort of vertical play then. So they're going after Intel, AMD's home turf. And then the actual conference call, I heard Jensen Wang talking about this opening up a $200 billion market opportunity. Yeah, it's just like a massive, it's a massive land grab. Basically. So, okay, so, so that's the, so what you've just described then is the, is the Vera part. That's the head chef. Yeah, who's Ruben? It's so hard to not think of these as real people when they've got names like this. Well, I mean, that's actually well, just as a side, Ruben is named after the famous astronomer, as I'm sure you'll, you'll be very familiar with. What did Ruben do? What, why, Ruben a famous astronomer? You left, I obviously didn't go to good enough school to know. Discover, discover evidence of dark matter. Okay. Yeah, you continue to be the gift that keeps giving this every. I mean, so Vera Ruben, I think a bit less just continue with this ridiculous kitchen analogy for a second. So basically, Vera Ruben's the entire state of the art kitchen. So it's not just one chip. It's basically in videos next generation AI supercomputer, like the architectures coming. It's basically we're thinking late 2026 is the guidance when this is going to hit. So basically bundles, Vera Ruben bundles, the Vera CPUs, and then their brand new Ruben GPUs. Right. So what you get is this ultrafast network of chips, basically in one giant inter-connected system. Okay. So what you're saying then to put it really simply is, traditionally, you just buy parts. You can kind of think of it like your home computer. You used to back in the, well, back in the 90s at least. There's been five bits of a computer and you build your own one. But what you're saying is, tech giants are just going to buy the whole pre-built super kitchen. Yeah, exactly. And but look, because everything is built from scratch, so to talk to each other instantly. So in video says that Vera Ruben platform can run massive AI models at 10 times lower costs. And energy consumption per answer. So that's why Gensers noted there's, they're already handing the systems over to open AI and Thropic, Meta, Google. So if you want to build the future of AI agents, basically this is the machinery that you need. And you mentioned earlier about an engineering mode. What did you mean? Well, so this is one of Nvidia's ACE cards. Basically, they've moved from what used to be a two year cycle. So they used to have a two year cycle of, you know, just product innovation, right? So a new version of a chip would kind of come through design and then into mass production every two years. It's just they've shortened it to one year. So if you think about the sequence blackwell chip that hit in 2024, we then have blackwell ultra 2025. We then now we've got Ruben in 2026. And basically this is a very deliberate strategic move by Nvidia. So, you know, it's not just an incredible insane engineering achievement. It just means every 12 months, the competition, you know, your competitors have now got a baseline that just resets like significantly higher every 12 months. And so obviously by accelerating this sort of road map, it kind of forces your competitors like AMD and Intel. Basically, they have a what they call a generational lag then. So just as your rivals begin to ship hardware that competes with Nvidia's current flagship chip. Sorry guys. Nvidia roll out a new one. You know, damn it. So this is a key moat for them in this sort of AI race. There's such a huge moat. And it's so I mean, so difficult to almost impossible to try and keep. But such is the size of the juggernaut now. I mean, obviously, how'd you speed up your engineering life cycle? You need to throw money at it. You obviously need talented, talented, talented people. Obviously, AI itself has sped things up. But still, money is king. And now Nvidia print money for a living, you know, it just becomes even harder to compete with that. That's super interesting. And I was just thinking as well about Jensen Huang obviously last week was part of Trump's delegation. Yeah. Almost Trump and Jensen holding hands as they come off the plane sort of lives. Because when you walk into China, to me, she what better flex. And then and then Jensen goes, we're not even going to put the China into our outlook. But I'm going broke. You've got to think that some deals have been broken last week. Yeah. Exactly. So interesting. Cool. We'll wrap it up there. And thank you very much for listening. If you are new to the channel, don't forget to like and subscribe and put on notifications wherever you listen to your podcasts. Also feel free to leave us any comments, questions, observations. Happy to hear your thoughts as well. And don't forget we have an MNA specific episode that comes out at the beginning of every week as well. Pears, thank you very much and have a great Long Bank holiday weekend if you're in the UK. Yeah. Have an awesome weekend. Thanks a lot.