Bernstein’s Stacy Rasgon on what the Nvidia–Groq deal means for the semiconductor space
December 26, 2025 • 4m 42s
? (Anchor)
00:00.150
for
more
on
what
the
deal
means
for
the
chip
space
overall
and
nvidia
in
particular
let's
bring
in
stacey
raskin
the
bernstein
research
US
semiconductors
analyst
stacy
it's
great
to
have
you
with
us
on
this
day
after
christmas
this
is
an
interesting
proposition
because
jonathan
? (Anchor)
00:15.030
ross
and
his
team
of
engineers
were
some
of
the
ones
behind
the
google
alphabet
tensor
processing
unit
type
products
out
there
just
how
much
does
this
change
the
landscape
within
chips
overall
yeah
so
what
Stacy Rasgon (Senior Analyst)
00:29.880
what
they're
doing
to
he
did
jonathan
ross
was
the
creator
of
the
first
generation
of
of
the
tpu
back
in
i
i
can't
remember
when
it
was
almost
a
decade
ago
what
grok
is
doing
is
is
not
a
tpu
per
se
but
they've
got
some
very
interesting
architectures
for
high
bandwidth
low
Stacy Rasgon (Senior Analyst)
00:47.350
latency
inference
and
so
i
think
that's
where
this
comes
comes
to
play
like
you
know
in
nvidia
there's
always
this
narrative
out
there
for
nvidia
that
they're
not
winners
in
in
inference
i
i
have
not
been
a
believer
in
that
but
but
that
narrative
has
been
out
there
by
Stacy Rasgon (Senior Analyst)
01:01.480
effectively
i
know
they're
not
a
quiet
the
whole
company
but
effectively
acquiring
the
company
and
the
personnel
and
and
the
technological
talent
it
gives
nvidia
the
ability
to
integrate
some
of
those
architectural
innovations
into
into
their
presumably
into
their
future
road
Stacy Rasgon (Senior Analyst)
01:14.590
map
i
think
it
also
massively
improves
that
narrative
this
idea
that
they
can't
be
a
winner
in
inference
i
think
that
that
that
bear
case
gets
a
lot
harder
to
argue
with
this
i
thought
it
was
interesting
you
know
it's
it's
it's
funny
you
you
talked
about
this
being
the
largest
Stacy Rasgon (Senior Analyst)
01:30.400
deal
they've
done
which
is
true
but
they're
so
big
now
that
they
can
they
can
do
a
twenty
billion
dollar
deal
on
christmas
eve
with
no
press
release
and
like
nobody
bats
an
eye
like
relative
to
their
market
cap
this
is
not
very
big
like
it's
it's
actually
a
very
small
bolt
on
so
Stacy Rasgon (Senior Analyst)
01:47.590
taking
that
i
mean
so
what
that
means
is
the
risk
for
them
i
think
should
be
relatively
low
? (Anchor)
01:52.710
all
right
stacy
if
this
is
not
that
big
of
a
deal
in
terms
of
the
overall
assets
as
a
percentage
of
balance
sheet
that
nvidia
is
putting
to
work
right
now
how
much
could
this
change
the
paradigm
or
construct
with
which
other
chip
companies
view
their
product
lineups
and
their
? (Anchor)
02:08.510
pipelines
do
they
all
need
to
kind
of
diversify
a
little
bit
more
Stacy Rasgon (Senior Analyst)
02:13.350
could
you
repeat
that
again
i
lost
sure
for
a
second
yeah
? (Anchor)
02:16.270
stacy
i'm
wondering
if
other
chip
companies
have
to
kind
of
follow
through
and
diversify
a
little
bit
of
their
own
product
portfolios
and
pipelines
given
this
type
of
a
deal
with
nvidia
and
grok
well
you
Stacy Rasgon (Senior Analyst)
02:28.230
have
to
remember
most
of
the
other
chip
companies
out
there
in
AI
are
having
a
hard
time
competing
anyways
right
so
it's
hard
enough
for
them
to
compete
in
their
own
core
markets
without
worrying
about
diversifying
but
i
think
it
actually
widens
the
gap
or
widens
the
moat
that
Stacy Rasgon (Senior Analyst)
02:43.430
has
had
over
their
competition
it
certainly
is
going
to
make
it
tougher
for
the
competition
to
compete
? (Anchor)
02:49.150
stacy
thoughts
on
intel
i
mean
it's
had
the
stock
the
stock
has
had
a
great
year
it's
up
seventy
nine
percent
yeah
it
Stacy Rasgon (Senior Analyst)
02:56.670
it
it
it
really
has
and
not
really
like
from
any
sort
of
fundamental
basis
but
i
i
mean
fine
i
you
know
in
the
near
term
their
markets
should
be
better
PCS
have
been
pretty
strong
on
on
some
of
the
upgrades
and
and
and
windows
end
of
life
refreshes
and
servers
which
have
been
Stacy Rasgon (Senior Analyst)
03:15.070
very
weak
for
the
last
several
years
server
CP
us
are
are
undergoing
a
cycle
now
so
those
things
are
are
good
it's
good
for
their
competition
as
well
structurally
they're
still
in
a
very
tough
spot
though
i
mean
they're
they're
process
tech
is
still
i
mean
they're
still
ramping
Stacy Rasgon (Senior Analyst)
03:30.830
their
their
due
process
the
yields
are
not
great
they've
even
admitted
this
that
they
they
yields
are
are
are
not
super
any
kind
of
foundry
customers
that
i
mean
there's
a
lot
of
hope
around
that
but
it's
still
going
to
be
years
before
we
ever
see
anything
there
material
if
at
Stacy Rasgon (Senior Analyst)
03:42.630
all
and
in
those
core
markets
they're
still
losing
a
a
ton
of
share
i
think
they've
and
and
and
clearly
as
we
all
know
they're
still
burning
a
lot
of
cash
i
think
they've
got
a
lot
of
fundamental
issues
now
at
the
same
time
you
know
there
is
more
support
and
i
think
i've
said
it
Stacy Rasgon (Senior Analyst)
03:58.030
on
on
on
you
know
your
channel
in
the
past
like
donald
trump
wants
the
stock
to
go
up
is
a
bulk
case
of
sorts
it's
not
my
kind
of
bull
case
but
a
lot
of
that
the
governmental
intervention
and
then
the
subsequent
investments
from
others
on
the
wake
of
that
are
the
reasons
that
Stacy Rasgon (Senior Analyst)
04:14.830
that
the
stock
has
become
supportive
i
mean
they're
being
started
to
view
as
as
too
big
to
fail
i'm
not
sure
i
agree
with
that
frankly
but
that
is
a
perception
that
has
developed
i
still
think
it's
going
to
be
a
slog
though
i
mean
look
i've
said
before
it
took
ten
years
to
break
Stacy Rasgon (Senior Analyst)
04:29.230
it
it's
going
to
take
ten
years
to
fix
it
you
know
ten
years
they
started
in
twenty
twenty
ten
years
would
be
twenty
thirty
it's
probably
going
to
be
you
know
in
in
that
time
period
before
we
really
know
if
this
turn
around
is
really
going
to
be
successful
or
not
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