Ben Reitzes of Melius Research highlights Nvidia’s clearance to resume sales in China as a positive development benefiting both Nvidia and AMD, emphasizing Nvidia CEO Jensen Huang’s adept leadership in navigating geopolitical challenges and the strategic U.S. restrictions on advanced chip technology. He also discusses AI’s transformative impact on the tech industry and labor market, predicting significant growth opportunities for companies like AMD, Broadcom, Microsoft, and Oracle as AI reshapes software and infrastructure markets.
In the video, Ben Reitzes, head of technology research at Melius Research, discusses the recent development of Nvidia receiving clearance to resume sales in China, highlighting that this is positive news not only for Nvidia but also for AMD. He praises Nvidia CEO Jensen Huang for his exceptional leadership and diplomatic skills in navigating the complex geopolitical landscape, balancing American interests with the Chinese market. Huang’s ability to maintain strong relationships and work tirelessly is seen as a key factor in Nvidia’s success in regaining market access in China.
Reitzes addresses the security concerns that initially led to the ban on Nvidia’s chips in China. He explains that the chips approved for sale are older models, which are still technologically superior to what Huawei offers but are less likely to be used for military purposes. He emphasizes that the U.S. government’s approach aims to limit China’s access to cutting-edge technology while preventing China from dominating AI infrastructure globally, which would pose a significant national security risk.
The discussion then shifts to AMD, which Reitzes believes stands to benefit from the renewed access to the Chinese market as well. He notes that AMD’s products are particularly strong in AI inferencing, a rapidly growing segment, and that the company could capture a meaningful share of the market. While AMD currently has limited chip offerings approved for China, Reitzes is optimistic about the company’s prospects as it develops new products and gains interest from major players like Meta and OpenAI.
Reitzes also touches on the broader impact of AI on the labor market, echoing Jensen Huang’s view that AI won’t directly replace jobs but will instead empower those who use it effectively. He highlights how AI adoption is driving operational efficiencies, particularly in tech companies, and predicts that AI agents will significantly reduce the need for traditional software licenses, shifting the industry toward outcome-based models. This shift is expected to benefit infrastructure software providers and cloud companies that host AI applications.
Finally, Reitzes identifies other key beneficiaries of the AI revolution, including Broadcom, Microsoft, and Oracle, whose revenues are accelerating despite challenges faced by many software-as-a-service companies. He contrasts the current AI-driven market dynamics with the previous era when software was “eating the world,” suggesting that AI is now “eating software.” With AI agents still in their early stages, Reitzes anticipates substantial growth and significant opportunities for investors in the technology sector.
