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Nvidia shares are still falling about 90 minutes into trading after its guidance disappointed Wall Street. So should investors buy the dip or is there a reason to step back from the AI giant? We have Nancy Tangler here to kick off today's show. She's the CEO and chief investment officer at Laffer Tangler Investments. Nancy, great to have you back here on the program with us. So, first and foremost, I got to get what you make of the report that we saw from Nvidia, shares moving lower by about two and a half percent as of right now. They've been down throughout trade post report. But it's not weighing on the markets that much, which is interesting, considering the outsized move that we've seen driven by Nvidia. What do you make of this?

Yeah, Brad, thanks so much for having me. Well, I I think what you're seeing is that the other AI proxies like Broadcom and AMD and then some, you know, expanded out from there are doing well on the report. I I think the issue is that the stock had run off the recent lows pretty hard. Uh it's it's not super expensive when you look at it on estimated sales or estimated price to earnings ratios, even the peg ratio. But you know, it's it was set up for for an a disappointment on the black well yield problem. I I think the company is right sized that. I think you want to use weakness as an opportunity to own this stock for the next five to 10 years.

Interesting. And so we we've heard of valuations, uh, perhaps in the future over the next five to 10 years getting as high as maybe $10 trillion dollars for this company. Where do you believe that there's going to be perhaps the next big thrust of energy around Nvidia, or is this going to be in kind of wait and see mode and ultimately watching the company deliver upon what the market expects of it?

Um, well, you know, it's interesting. If you look at the the decelerating growth that analysts also seem to be worried about and you go back and and compare that to Microsoft's 90% growth in the cloud and then subsequent slowdown. I mean, we know that these levels of growth are not necessarily sustainable. And so I think what you want to do is an investor, but but by the way, that did not hurt Microsoft's stock price. It's up three to four times from from that decelerating cloud growth as as the use cases for AI go up, and they are, all you have to do is look at a company like Walmart, whose margins expanded last quarter without raising prices, and we believe that was largely due to their implementation of AI across the platform. So in advertising, e-commerce, stocking, cataloging products. This is what we need to see next. And I think we are seeing it broaden out by industry and that will be the next catalyst for growth. So I think we're in early innings. Uh, we've drawn an analogy to the 1990s for the last couple of years. I was managing money then. This is not the internet bubble. This is not eyeballs being measured. This is real technology that will drive productivity, productivity driven growth. Uh, and I think we saw that with the GDP numbers coming up in productivity and the almost close to 3%. So it you just have to kind of steal your nerves and and ignore the volatility.

And so for Nvidia down today, while the markets are higher, AMD, I'm taking a look at our YFi interactive, AMD is actually up by about one and a quarter percent right now. I mean, we we didn't think we'd have a day where Nvidia was lower, but the markets still holding onto gains. So you're also keeping tabs on some of these other chip stocks to see where there might be opportunities. Where are you sensing those opportunities?

Well, so we added Nvidia, I'm sorry, we added AMD to our portfolio in the last quarter on the selloff. It, you know, this company needs 1% growth market share growth in GPUs to to increase revenues by a billion dollars. So, um, they they they can take the crumbs and still do well. And one of the things that I find fascinating is that Lisa Sue and Jensen Wong are sort of distant cousins. And so he recently said, we're family, we buy from family. So I think AMD is in a good solid number two spot, and we expect to see that continue. Uh, we love the transaction they just announced with ZT systems. So, and they're sort of taking a page out of the Nvidia playbook. We've been long-term owners of Broadcom. We've actually had to trim it back. Um, we were buying it when the yield was 4%. It's now about 1.5% due to price out performance. Uh, we still like the name. We think it is a place you want to be exposed to. But um, do not underestimate the growth in generative AI. I think there's a lot of naysayers coming out, and we're we're seeing the use cases expand pretty dramatically.