The speed and power of a microchip are improved by making transistors smaller, which reduces signal travel time and increases transistor density.

“The chip works by whizzing electrons from transistor to transistor, and the smaller you can make those transistors, the less the signals have to travel, so the faster they can compute. Plus, you can fit more transistors into the same area, resulting in a much more powerful chip.”

Semiconductors have become increasingly essential in modern life due to continuous miniaturization and cost reduction.

“Every year semiconductors get more and more affordable and they show up in new applications and they solve new problems.”

The analyst believes that Nvidia is capacity constrained and this will limit their revenue upside for the coming quarters.

“My concerns are they're capacity constrained and I think that's just going to limit the amount of upside that they can deliver to revenue for the next few quarters.”

He expects Nvidia to report better than expected results due to increased capex projections from their major customers.

“you know, folks are expecting uh the usual or if not better than the mids singledigit beat and race that we have gotten used to with them. Uh, which I think is quite possible given multiple drivers that have gotten better uh since their last quarterly earnings.”