The LARGEST *AI* IPO Ever: The ARM IPO | You've Been WARNED.

hey in this video I'm going to tell you

everything that you need to know on the

arm IPO maybe you don't even know what

the heck arm is and don't worry I'll

break that down for you so we'll start

with what the heck is this company do

they actually do AI which is the big

buzzword these days which by the way is

perfect timing especially since the CEO

is going to get a nice 20 million dollar

check just for getting this IPO done

that's on top of stock options that are

going to vest okay these folks are gonna

make a killing on this IPO this IPO

could be rivaling some of the money rays

that we've seen from companies like

Facebook rivian

Alibaba and let's just say two of those

three lost a lot of money so uh walk

into this one with a little bit of

caution but I'll also give you my

opinion on how I think this play

compares to something like Nvidia why

not advertise these things that you told

us here I feel like nobody else knows

about this we'll try a little

advertising and see how it goes

congratulations man you have done so

much people love you people look up to

you Kevin financial analyst and YouTuber

meet Kevin always great to get your take

all right let's just get started with it

this is the filing widely anticipated

filing the arm company okay so what the

heck is this company well here's their

prospectus summary but let me just

simplify this for you okay there are

these things in computers we need called

chips no not like Doritos but things

that process computer information there

are companies that are called designers

of chips and designers are going to be

companies like

Nvidia really popular designer of these

chips and then of course somebody has to

make those chips and that's going to be

like your Taiwan semiconductors which

will actually make the chips uh and then

of course you have companies that Supply

materials to help make those chips like

asml that is a company that supplies

some of the advanced lithography

machines ultraviolet lithography

whatever basically fancy machines to

help make smaller and smaller chips okay

got it so that's asml that's a Dutch

company here's Taiwan semi it's a

Taiwanese company they do somewhere

around 90 percent of advanced chips in

the world Nvidia is sort of a chip

designer and Nvidia in addition to

designing chips also provides code for

some of their chips like specifically

their GPU chips which they use a

language called cuda okay now how does

that relate to arm so arm is a language

provider language okay now this is where

things could get a little confusing but

we want to keep this simple okay

there are basically three types of

languages x86 and arm these guys go head

to head all the time okay arm is based

on a risk framework which this was

written as risk that's because I think

the stock might be risky I'll explain

why but it's actually risc risk five

anyway so you've got x86 this is your

1970s 1980s language that Intel founded

and AMD uses today then you've got arm

which got really popular because it

optimizes what you actually need a chip

for and that is really good for Energy

Efficiency and so arm became very

popular for mobile like smartphones

right now arm helps provide code and

gets about 50 percent of their revenues

from smartphones and consumer

electronics keep that stat in mind

that'll be important for the whole AI

thing okay so anyway you got x86 and arm

kind of like head to head over here with

these different languages for Designing

and using chips now I said there were

three but just focus on those two for a

moment so you've got arm and then you've

got x86 and these guys are sort of in a

battle against each other to get

designers to use this code so yeah that

actually means Nvidia in for example the

Nintendo 6 Tetra uh a CPU central

processing unit has used arm language to

make their chips who else uses arms

language to manufacture their chips

Samsung Amazon and their AWS their

graviton AWS chip their Cloud compute

chip is an Arm based language chip

Nvidia has used them for many other

purposes but also Apple the M1 and M2

chips we keep hearing about those are

Arm based chips the old a chips that we

saw for like the iPhone 12. those are

arm-based the s chips that were in the

eye watches the Apple watches those were

Arm based okay so hopefully this adds a

little bit of clarity so what you have

is you have this language and everybody

in Mobility is really using arm these

days because it's more energy efficient

and Intel's kind of like crap man we're

stuck with the x86

that battle is so important to

understand because today Intel is seeing

their revenues do this

so why would somebody invest in Intel

well listen to this Intel's gotten so

smart they're now building new

fabrication that is facilities where you

make chips Fabs column they're building

new fabrication facilities with stimulus

money from Joe Biden and in those

facilities guess what kind of chips

they're going to manufacture remember

they found an x86 are they going to

manufacture x86 chips Only Hell No even

they see the writing on the wall and

instead Intel will manufacture chips

that are on based on x86 that

architecture

and arm so what you could see is this

competition for which language to use is

a big deal

but arm is the company that came up with

and uses well it was a partnership back

in the day in like the 80s Apple was

actually involved in this but what's

left over is basically the company arm

now okay so you got the arm language and

x86 that's just the lines of code that

the chip designers are like okay cool

let's uh let's put silicone together

like this and what if we stack away for

like this oh it does better oh let's do

more of that uh or oh our uh our uh

enemy over here AMD just came out with a

and new chip well let's put it

under an electron uh scanning microscope

or whatever these folks use and go oh

that's how they manipulated that

graphine oh man I'm gonna bring this

home to my wife tonight okay all right

you get the idea okay this is all like a

massively competing industry for chips

okay everybody wants the best Dorito on

the Block some people write the language

some people design the chips some people

make the chips some people Supply the

machines that make the chips arm is

simply and at this point only that it is

just the language okay now that's really

important because there is also now

potentially a third language and that is

also a it's well it's called risk five

but arm the r in arm is because it's

based on risk but risk five because it's

an open source language risk five is

sort of this new kid on the Block and

people are like oh maybe we should use

this but then companies are like no

we're going to keep using arm because

that's what we know how to use okay

worth knowing though risk five is

actually a risk to arm it's probably

small it's probably going to happen over

time where you see a transition between

different languages but I think we can

say with certainty a lot of the x86

business is going to arm

or risk five most of it probably going

to arm right now worth keeping that in

mind so uh here are just some other

examples I went through some of these

Fire TV these are I just wrote some

notes as I was doing my research on some

of the things that are arm-based chips

okay great in fact they go as far as

saying 70 of the population probably

uses arm-based products okay that does

also make me wonder how are you still

gonna grow if you're already doing that

much that is also going to become very

important here in just a moment here's

some things that I wrote down though

because artificial intelligence is going

to be a big deal so what I wrote down is

there's something to know there's a

difference between a GPU

and a CPU arm does a lot of CPU work

okay this is where arm does a lot of

work it's not to say they you can't use

arm for gpus and I'm over simplifying

this video otherwise this will be like a

five hour long video

most of arms work is going to be in the

CPU those central processing units

especially for mobile devices so you're

going to hear a lot about energy saving

keep that in mind because that's going

to be a big deal too when we get to some

of the pros and cons of this company

Okay so

CPUs can usually be used for AI

inference models

and gpus are usually used for training

okay now I may have lost it there let me

just put it this way okay if I said hey

you're an AI and you need to tell me if

the face that I'm drawing is a happy

face or a frowny face and you started

seeing me draw this what can you infer

that the face is about to be

well you're probably like well I mean

it's starting to curve kind of down so

it's probably going to be a frowny face

right you already know that because

you've already seen a million different

frowny faces as you've grown up

throughout your childhood hopefully

you've also seen an equal amount of

happy faces okay but the point is you

know what a frowny face is a frowny face

understanding what this is the first

time is really what you're using gpus

for today it's a training whereas once

you kind of start drawing and providing

oh what's it going to be what what oh

What's it gonna be oh it's going to be

frowny that's where CPUs come in more

now don't get me wrong there are highly

intensive visual applications that will

require gpus to tell you that this is a

frowning face think like Tesla

self-driving will probably be more

involved in the GPU world this means

there is somewhere a space for CPUs in

artificial intelligence

but it's not entirely clear how

different that is from just operating

regular programs on computers today in

fact what I can tell you is entirely

clear is that if you wanted to build a

new language model you would probably do

it by renting server capacity and this

is what the server would look like the

top part of the server would generally

be a CPU although even Nvidia is trying

to get into that game right now

everybody's trying to take everybody's

bread okay this shouldn't be a surprise

okay keep in mind I'm a licensed

financial advisor and even though I

can't give you personal financial advice

it's my job to tell you you need to make

sure how to get more bread in your life

that's everyone's goal that's why we're

here everybody wants more bread okay

that's fair so the CPU might be at the

top and let's say we're going to throw

in an AMD CPU at the top of the server

rack guess what the next 10 items in

this server rack are well more often

than not now they are Nvidia h100s

though there are other weaker models

that do good enough for most AI things

that people probably need you probably

don't need the latest and greatest but

just to show you the latest and greatest

Nvidia is probably about a thirty

thousand dollar chip for each one of

these lines right here in a server stack

and that AMD CPU is probably about 15

grand so if you add this up you're

looking at about 15 grand to 300 Grand

in income so in case you're wondering

why Nvidia has gone to the moon it's

probably because of this now they've got

earnings coming up they're always going

to have earnings coming up this video is

not to speculate on Nvidia earnings I've

got a position in Nvidia I want to be

clear about that obviously I don't have

a position in arm because it's not

public yet my position isn't massive in

Nvidia I think it's gotten a little

ahead of itself though I'll tell you if

they can prove that they're not a flash

in the pan Nvidia is going to be a great

investment and and I'll explain more

about what I mean with the Flash and the

pan problem in just a moment but again

the whole point of this is to say if

you're doing language work for this part

on AI servers

you're probably missing where the real

money is you see what I mean and where's

who's Pro what's the programming

language here it's Cuda okay and who

owns Cuda it's Nvidia again I I prom I'm

not trying to chill in video I would

love to have other stocks I'm just

looking at this like oh man people are

gonna hype this up like it's a Nvidia uh

you know play uh on uh like an

alternative to Nvidia and personally I

think that could end up being a mistake

now I'm open to your commentary in the

comments but we got a lot more to cover

okay so let's look at some more some

more notes here right ready for this so

arm right now says they want to get into

Data Centers so the CPU strategy of

getting into Data Centers you have to

kind of think okay who's the data center

world for AI right now well maybe you

could do big data like palantir or

snowflake or of course your OG names the

Google the Microsoft the Amazon right

that's great but how different is this

new amount of money that uh arm wants to

raise now from what they've been doing

for Amazon's Cloud compute so you

remember what an IPO is an IPO is not an

opportunity for you to get rich as an

investor an IPO is an opportunity for

the Insiders to finally dump their

shares on you this is why usually IPOs

are not a great thing to invest in I

generally stay away from IPOs and even

though I've been saying that for years I

still have taken a bite on some IPOs

only to get burned and learn my lesson

so I'm I'm a little jaded when it comes

to IPS just gonna throw that out there

now it's also worth noting that hey ai's

been great but how much has it really

boosted our world's productivity these

days my take is

potentially somewhere around 10 percent

maybe 15 if you use some of the

strategies that we talk about in my

courses on building your wealth where we

integrate here's how to actually use AI

to be productive but okay is it really

like revolutionary is everybody really

waking up going oh my gosh is AI no of

course not because the reality is AI has

been

big data and neural Nets they've existed

for 10 plus years in fact we've been

working on our own artificial

intelligence for a real estate startup

for four or five years we just sort of

keep evolving it and this whole AI craze

in March changed nothing so it's kind of

like yeah okay you found a sexy way to

label AI it's one of the concerns I have

for NVIDIA okay it's actually why I'm

not kind of going like oh let's go all

in on a video right like there's a

little bit of gun shyness that I have

and I actually think there'll be better

opportunities to buy Nvidia in the

future and I'll explain why okay so now

we understand a little bit about uh this

this arm versus CPU GPU thing uh now

what we should do is understand a little

bit about where this money is going to

go because they want to raise you know

about 10 billion dollars would be nice

and so why do they want to raise money

well they tell you here that developing

Leading Edge chips is getting

exponentially more expensive Ah that's

actually going to be a red flag keep in

mind this company tells us that 80 of

their staff is sitting in research and

development to design a seven nanometer

chip the company spent about a quarter

of a billion dollars to design a two

nanometer chip they spent about three

times that so this is where they talk

about this exponential growth in costs

ah so why do you want an IPO well

because you're probably at the peak AI

hype cycle and it's a perfect time to

dump on the normies okay I'm sorry I

don't want to sound like bearish maybe

this thing will go to the Moon I'm just

saying if if I were uh you know one of

the executives over at arm and I was

calling up my buddies over at SoftBank

which is not a bank it's a Japanese

investment firm be like hey everybody's

you know losing sleep over how great AI

is and how revolutionary it is you know

it's it's amazing amazing uh how about

we just IPO now it's the perfect time to

do it remember this is a company worth

noting this is a company that was

acquired for between 31 to 32 billion

dollars in 2016 by SoftBank

SoftBank not a bank remember that agreed

to sell this company in 2020 to Nvidia

for guess how much

they agreed to sell it for 40 billion

dollars that was in 2020 2021-ish but

the deal fell apart because the FTC sued

and Regulators got involved it would

have just been too big uh like Nvidia

would have just gotten too big now

they're kind of like okay well forget

about that 40 billion dollar valuation

when everybody was printing money now

that everybody's so hyped up on AI why

don't we try to sell it at a 60 to 70

billion dollar valuation oh yeah baby

give me those dandies this way SoftBank

can exit with a sweet sexy double now

you can't blame them I mean nobody's

gonna blame anybody for for making money

but what I did think was interesting

going through the filing and everything

I say in this video you should assume is

an opinion because I can't remember

every I spent like two or three hours on

this I could be making a mistake on some

of this so just use some of this as an

inspiration for you to go through the

information yourself in other words arm

and soft don't sue me bro anyway

SoftBank has basically carved out a

little exception for themselves

here's what's going on usually when a

company IPOs there's something known as

a lockup for example everyone on the

inside like all these r d people who

have been getting stock based comp for

years or decades are finally like yeah

baby my ship is coming in we're gonna

get rich off the IPO and we're gonna

sell those shares as soon as we can

maybe

and those folks would be able to do so

usually within about 180 days so in

other words you IPO and you kind of have

to wait six months for the market to

settle down and then people on the

inside can start selling except for

SoftBank SoftBank at least based on what

I saw only has about a 60 day lock up

that is because they wrote in their

lockup expires 60 days after a public

offering interesting okay so a lot lower

in other words SoftBank can get out

before the Insiders okay interesting

what else I noticed is that SoftBank

then said and this is what I thought was

really interesting maybe it's normal

softbank's got a bunch of debt remember

they're not a bank they're an investment

firm and basically what they're going to

do is they're going to pledge eight and

a half billion dollars of their shares

as collateral to basically borrow

against all right that's a whole lot of

words let me put it this way the IPO is

expected to raise 10 billion dollars

SoftBank owns a ton of shares tied up by

this uh you know lock-up agreement of 60

days or whatever but they're basically

going to take a loan out on day one and

if the stock tanks the bank that gave

the loan can liquidate the shares right

away so in other words SoftBank gets

their money right away on a loan if the

shares tank then the bank can Margin

Call SoftBank right away to cover the

bills basically so if it tanked on IPO

day the lockup agreement means nothing

those shares start getting dumped to the

tune of eight and a half billion dollars

now I don't actually think the shares

will tank on day one mostly because

quite frankly it is now the job of the

executives at this company to market the

snot out of this company you're gonna

see banners from this company about how

great this IPO is how you should invest

in this IPO how you should invest in the

next generation of AI chips and arm 9

and all the latest and greatest crap

from them but the reality is when you go

through their documents there are some

more problems uh okay let's get into

some more of the problems here and then

we're actually going to get into some of

the revenue okay let's get to some of

the juice you ready for some of the

Juice by the way if you like this kind

of video subscribe because there's more

where this came from this is what I try

to do all day long every day try to

provide value to even people who invest

with me uh or to my subscribers or the

people who are so gracious to sign up

for the courses linked down below so

take a look at this all right these are

some of my initial thoughts that I wrote

down this has to be marketed uh in my

opinion if Nvidia misses on earnings

either Q2 Q3 Q4 it doesn't matter when

any Nvidia Miss is probably bad for the

entire industry and Nvidia beat is going

to be good for arm not because arm is

necessarily going to capitalize like

Nvidia but it's just going to reignite

the whole Ai fomo and AI fomo is going

to be perfect I guarantee you all of the

executives that arm are like come on

baby come on and video

it okay all right now it's worth noting

that about 24.5 of revenues come from

China from this company but what's a

little scary about this here's the

segment section by the way 40 from the

US what's a little scary about the 24.5

that comes from China is that the part

that comes from China is basically only

determined based on what China tells

them listen to this there's a whole

section you can look this up it's on

page 89 too bad it's not on 69. anyway

performance of armed China okay we

depend on arm China for basically a

quarter of our Revenue okay and this

company gets licensing Revenue I didn't

even mention that yet they don't make

chips they just get royalties from the

code they wrote we go we wrote the best

code and everybody uses it well I don't

think it's going to get replaced anytime

soon maybe there could be a gradual

transition to open source but honestly a

lot of people used arm it's good code

it's good technology I'm not gonna bag

on that do I really think it's like the

next AI Wonder no of course not uh but

then again nothing really is me except

for maybe Nvidia if they could pull off

the amount of server sales that they're

talking about okay so what is this right

here so here they say they're dependent

on China armed China right but listen to

this I'm just going to read you this

okay ready for this

all right here it is under our

partnership agreement armed China's

payments do to us our determined based

on the financial information that armed

China provides to us accordingly we are

dependent on armed China providing us

with reliable And Timely financial

information

in other words if there are any issues

in China and China's lying to us we

would have no idea

okay given that a quarter of your

revenue is based on we have no idea

it's a little bit of a red flag to me

okay furthermore in light of these

issues we expect to continue to see

declining royalty revenues derived from

the People's Republic of China and we

could see declining and Licensing

revenues in other words a of their

business they think is shrinking so part

of me is

like trying to like

jump out of the ship or something like

that I don't know anywho let's keep

going here so this arm thing is a risk

all right they talked about 30 billion

of a arm-based chips shipped last year

that's not all their revenue right

because they just get royalty on that

right so even if you had a million AI

chips that shipped that would be one one

thousandth uh of of the 30 billion a

million dollars of AI chips right that'd

be one one thousandth of the companies

30 billion now if you had a billion

dollars great that'd be one thirtieth my

point is NVIDIA expects to ship 7

billion dollars of AI related data

center chips per quarter that's about 28

billion per year that actually means

there could be a real upside here if

they could actually really ship

uh AI chips but I'm not really seeing

that yet so I want to be clear here

because that might be a little confusing

there is real potential upside if they

can convert their pipeline to really

amazing top producing AI chips but wait

a minute wait a minute

they're not making the chips

that was the whole point of that little

setup I just played I'm sorry I set you

up I built you up just to tear you down

they don't design the chips they do the

code and somebody else does the chips

they literally say in their investor

relations document we rely on our

customers too design manufacture and

sell quote unquote chips

so really

even if you sell 28 billion dollars of

AI chips in a year

arm just gets royalty revenues on them

so a percentage as a thank you for using

the code but if that code is actually

using Cuda and Nvidia or something else

and is this code being used for gpus

nominally it's mostly used for CPUs and

that's really important to remember now

do keep in mind they do talk about

potential GPU deployments in fact they

talk about arm gpus so they exist it's

just not a primary product see it says

right here our primary product offerings

are leading CPU products

complementary products are gpus

all right good fine so uh and here's by

the way where it says that 80 of their

employees Global employees are focused

on R and D uh worth noting and their

revenue was relatively flat but that's

okay because the whole chip industry has

somewhat slowed down so I'm not like

horribly worried about their revenue

down one percent gross profit year over

year eight point eight percent external

year or um external Revenue year over

year that's not a big deal the whole

chip industry has slowed down uh not so

worried about that uh at about 50 cents

in earnings per share if this company

IPOs at the valuation we think it will

around maybe you know 60 to 70 billion

bucks uh maybe 60 ish dollars per share

that puts you around 120 times earnings

because it's a software company this is

an insane valuation for a company that

actually expects to kagger compounded

annual rate of growth for their compute

business grow at 15 percent

okay that's really really expensive I

mean you're talking about over a three

peg here for those of you keeping track

Nvidia trading at a lot lower peg in

fact let's go ahead and pull up the

Nvidia Peg just so you can compare for a

moment the Nvidia evaluation so remember

that Peg is priced to earnings growth

let me pull this up for you okay so this

right here is nvidia's latest quarterly

document uh you can see their revenue

year over year is actually down 13 this

whole industry has gone through a

correction so it is not surprising to

see some negatives here we talked about

the h100 revenue if that h100 ordering

is a flash in the pan Nvidia gets

screwed however if Nvidia starts growing

at 50 percent oh it's gonna be juicy why

because right now the stock market Wall

Street consensus is that Nvidia is going

to make over eight dollars per share

this year over eight dollars per share

puts them at about a 57 price to

earnings ratio which is about half of

the arm price to earnings ratio

with a 25 growth factor which is about

80 more than arms they're in about a 2.3

Peg so you have like a three peg for arm

2.3 Peg for NVIDIA but if Nvidia is not

a flash in the pan with the h100s and

they start growing at 30 40 50 this Peg

could go all the way down to one which

means Nvidia stock could double there's

some real potential Nvidia

or it's a flash in the pan we'll find

out over the next probably year as the

earnings come in so that's why I wrote

at the bottom the danger is The Flash

and the pan for NVIDIA Nvidia does have

about three to four times the revenue

that arm does three to four times the

free cash flow that arm does uh but

let's be fair to arm here arm does have

good free cash flow I can't take that

away from them and they're well

capitalized they've got about 3.2

billion dollars in current assets versus

2.8 billion in total deaths this is

great it's actually very good 675

million of free cash flow no borrowing

no dividends they don't plan to do any

dividends just keep in mind a lot of

employees are probably going to end up

dumping shares once they are able to do

so okay what else do we have here oh boy

I'm telling you I spent way too long on

this okay I'm gonna need like an AI beer

or something after this

all right so we got a lot of information

here oh okay I'm sorry their cloud

kagger is expected to be 16.6 I think I

said 15 whatever but the growth is

really unclear for AI and they talk a

lot about energy saving for servers

their pitch goes something like this hi

everyone we did really great with energy

saving and chips for things like watches

and smartphones so uh let us help you

save on energy costs for your serversal

it's not really like hey we have the

best AI technology that's going to make

your servers better it's just going to

make them more energy efficient is the

idea in fact they actually say that

right here in the graviton data center

chip they don't talk about how it's

better they talk about Better Price

performance over comparable x86 systems

that's basically incorporating the price

of the code the chip

and the energy consumption now I know

that's not super clear but let me just

put it this way after having gone

through this this company talks about

the energy saving aspects of the arm

Orchestra architecture more than they

talk about artificial intelligence so

maybe they're trying to go for a high

ESG score which maybe that's realistic

that's the thing like maybe maybe we

shouldn't be expecting them to be like

oh we're really I play we should be

expecting them be no like forget about

AI for a moment maybe AI is a flash in

the pan in which case who has the best

potential technology for mobile chips

well hands down its arm who has the best

potential technology and and code

technology for CPUs in servers and

computers and otherwise

it's arm sorry Intel I know Intel chips

x86 are good too but they're just not as

good as the risk-based chips at this

point maybe that'll change Intel's not

going to try to give up on their x86 and

those are some risks right x86 from

Intel could start being a lot stronger

or better or whatever or companies like

AMD could start switching to an open

source version of risk language writing

which then removes the royalty revenues

that arm gets remember they're just

writing the code for these chips all

right what else I do not believe that

Tesla uses arm for their self-driving uh

Tesla I believe uses their own code but

they probably do have arm and some other

generic uh chips so that's worth

watching

uh personally before investing in arm I

wrote down that I would let this get

through the first six months of lock-ups

so that way the executives could dump

SoftBank could dump you get rid of the

Margin Call risk which would be a huge

downside uh you get rid of the employees

dumping and in the meantime as everyone

else buys arm because they don't

actually do their DD which is fine maybe

they'll make a lot more money than I'm

going to on this and you know what

I hope you do I am happy for other

people to make money but uh you know I

think as people throw money at arm

they'll actually be a buying opportunity

and the other competitors like AMD

Nvidia Intel

I don't care okay I really don't care

what you buy uh okay so uh they do

mention they have some limited customer

risk that might be apple they don't

specifically say but like 30 of their

accounts receivable as of the second

quarter uh so ending like June 30th

we're from One customer they didn't say

which one and then the next biggest

customer was slightly under 10. uh they

emphasize sustainable growth probably

because they're realistic about AI not

exploding growth that's actually

probably a good thing I don't need a

flash in the pan investment okay I want

something that's going to do well for a

long term so like I don't want to sound

too bearish because ai's probably flash

in the pan but they are going to Brand

this as an AI

Nvidia is the only one that might not

end up being a flash in the pan for AI

right maybe you could argue uh the

Microsoft Google's Amazon's I'm not

convinced okay anyway

SoftBank doesn't necessarily align with

your interest right of course softbank's

gonna dump out of this so they can go on

to uh other Investments this 60 day is

actually asterisk because of their

margin loan I found out about that later

because it's obviously in a different

part of the report which is annoying 50

of the revenue comes from smartphones

and consumer electronics we already know

that section is going through a downturn

uh say you know I mean just look up

iPhone 15 sales expectations there are

any warnings for weakness on this side

right multiple references to

decarbonization it's it's ESG promoting

is what it is uh big bonuses tied to the

IPO price specifically whatever price

they get on this IPO probably increases

what the executives are being paid in

addition to the CEO getting 20 mil just

cause

uh right this is technically a British

company okay we talked here some more

percentages fine whatever okay so uh

what else did I write down I wrote over

here oh a little bit of History how

Nvidia tried to uh acquire this company

and I think as far as asterisks that was

sort of the bulk of it oh they did ask

asterisk Taiwan as well as a potential

risk factor war with China okay

that was an insane amount of talking and

I'm just gonna bottom line this for you

is this an AI play I don't think so

is AI a flash in a pan probably except

for NVIDIA though we will determine if

the Nvidia flash on the pan is a flash

in the pan over the next few earning

Cycles I have absolutely no idea I just

know if somebody's gonna make a crapload

of money from this AI Revolution it's

gonna be Nvidia how long that lasts I

have no idea because here's the reality

maybe everybody bought AI chips in q1

because everybody wanted Ai and then all

of a sudden Google Amazon and Microsoft

are like oh no our AI usage from our

customers is actually falling off a

cliff all right let's cancel some of the

Nvidia orders we had well if people

start canceling some of the Nvidia

orders they have

yeah nvidia's gonna dump it's gonna dump

so fast

and quite frankly ask yourself how often

are you using AI on a daily basis

probably very little maybe because you

have learned productive ways to use it

on a daily basis like I use it on a

daily basis but that's okay uh we teach

that in the the how to make more money

and get shnit done faster course link

down below but anyway look

bottom line arm IPO

I would not touch it until at least six

months after

second that Chinese revenue is gonna get

destroyed especially with China's

economy going to crap and I just don't

trust it I don't have the transparency

into that and I know SoftBank is gonna

dump on you because they want to get

their money out of this they tried

getting their money out with uh Nvidia

now they think they can strike it big on

the AI hype and I think

it's kind of like brilliant for them but

it pisses me off because I feel like

it's just sort of taking advantage of

the hype cycle but then again if you

were in their shoes you would do the

same damn thing

you can't blame them

so

um wouldn't touch it for six months I

want to see growth expectations want to

see what happens with China want to see

what happens with Nvidia I'm actually

not convinced that they're going to be

around forever because open source

technology means companies can kind of

get rid of them and then not have to pay

royalties to them if Nvidia can make it

in like a Nintendo switch Tetra chip

without arm and then they use risk five

now they don't pay royalties oh come on

man even if that's like 10 that bumps

margins bro

I'm sorry this was so long if you found

it useful consider subscribing I'll see

you in the next one goodbye why not

advertise these things that you told us

here I feel like nobody else knows about

this we'll try a little advertising and

see how it goes congratulations man you

have done so much people love you people

look up to you okay financial analyst

and YouTuber meet Kevin always great to

get your take