Alphabet has a significant growth opportunity driven by TPU adoption and offers a lower-volatility investment profile relative to pure-play chipmakers.

And one of the ones that we agreed wholeheartedly has a huge opportunity ahead of them is Alphabet in Google. So, Alphabet not only is one of Nvidia's biggest customers accounting for somewhere around 10 to 15% of their revenue.

It's also one of their biggest competitors with TPUs. So, they're using that to power not only their own AI devices, but also their own cloud. They're selling them to companies like Anthropic who are training on TPUs.

And the interesting thing I thought too, John, is that their chips are getting better and this is going to be a theme throughout this video, but the the custom chips that they've been making, the new benchmarks that came out just in the past week or so have been really phenomenal.

It seems like from an inference side this could be a huge competition for Nvidia going forward.

So, where is that demand going to be satisfied? It's going to be a big company such as Alphabet. And as you point out, it's TPUs are very powerful. In fact, its TPUs are what powered Google's AlphaFold where it was discovering proteins and that actually won a Nobel Prize.

So, it is the hardware that has powered a Nobel Prize winning discovery. And so, I think that is good validation here. The TPUs are very powerful and could, if Nvidia were to slip and lose a little market share, Alphabet is sitting right there in the wings waiting to take some.

Yeah, the other validation that I always think about, too, is Anthropic, which arguably has the best models that are out there today, also trained on TPUs. And there's there's a huge tie that goes back there, but uh Alphabet and Amazon were two of the companies that helped fund uh Anthropic when they got started with, you know, several billion dollars.

And part of that was, "Hey, use our TPUs." And so, now they have more customers for their TPUs. So, I think that's ultimately going to be one of those big threats that kind of pulls apart some of the vertical integration that Nvidia has brought to the table.

But you look at these other companies such as Google and Amazon. These are two of the biggest cloud businesses in the world. So, they also have a place to put their hardware already in their own ecosystem.

That that is huge. That is so huge and it's why Nvidia does invest in these Neo Clouds because it does need that that those customers to succeed because oh, by the way, the the large cloud companies, they actually can can use their own stuff.

And so, you know, it it makes total sense that they would be investing in their own hardware because they do have infrastructure that they can place them in today.

All right, I want to end with a little bit on valuation because you look at the bigger companies that we talked about, Alphabet, trading for about 25 times forward earnings estimates, Amazon trading for about 27 times forward estimates, AMD and Marvell in a very different boat.

Uh AMD trading for about 47 times forward estimates and Marvell at about 43.

Well, maybe I should answer it like this. I mean, I think that you should expect higher beta or higher volatility with AMD and Marvell compared to Amazon and Alphabet. So, if you are looking to make a single investment today, maybe you want the lower beta stocks in Amazon and Alphabet and you're not too worried about a huge pullback because these are huge powerful companies.

If you're more concerned about the volatility, maybe Marvell and AMD are ones that you dollar cost average in, understanding that chances are they will be significantly lower at some point and also significantly higher.

You don't know where the top and the bottom is. So, you're just going to dollar cost average a position.