Nvidia GTC Highlights, Uber Is Too Cheap, Cliffwater and the Private Credit Panic - The Compound and Friends Recap
Podcast: The Compound and Friends
Published: 2026-03-17
Duration: 1 hr 12 min
What Happened
Josh Brown and Michael Batnick discussed the significance of Nvidia's GTC event, which took place at the SAP Center. Nvidia's CEO Jensen Wang emphasized that the company is moving beyond training AI models to focusing on inference, which allows AI to perform real-time tasks efficiently. Wang highlighted Nvidia's projected $1 trillion revenue from new chip technology over the next three years, underscoring the company's dominance in AI hardware.
Michael Batnick noted that Nvidia's stock, while not heavily news-driven, is poised for a breakout given its solid earnings and strategic position in AI. He mentioned Nvidia's long-term visibility into substantial revenue, setting the stage for potential growth in the stock price. Despite this, the market's reaction has been muted, possibly due to concerns over pricing and competition.
The episode also covered the private credit market's current challenges, focusing on the high redemption rates at Cliffwater. Michael Batnick explained that Cliffwater's rapid growth from $3 billion to $40 billion was driven by advisors seeking returns during a tough year for traditional portfolios. The hosts expressed concern over the potential for asset liability mismatches in private credit, especially if the economy faces a credit downturn.
Josh Brown criticized the SEC's proposal to allow companies to report earnings semi-annually instead of quarterly. He argued that less frequent reporting could lead to less transparency and potentially more dishonest behavior by American executives. Brown emphasized the importance of regular earnings reports to keep companies accountable.
Uber's recent partnerships with autonomous vehicle companies like Zeek and Nvidia were highlighted as strategic moves to dominate the autonomous taxi market. Josh Brown argued that these partnerships position Uber to compete effectively with Waymo and Tesla, suggesting that Uber's stock is undervalued given its growth potential and strategic alliances.
The podcast concluded with a discussion on the financial sector's current challenges, including downgrades by Adam Parker due to concerns over credit issues and oil price spikes. Josh Brown and Michael Batnick debated the implications of these factors on financial stocks, highlighting the market's current cautious sentiment.
Throughout the episode, the hosts engaged with audience questions, offering insights on various topics such as Nvidia's future prospects and the potential risks in the private credit market. The conversation was rich with analysis, reflecting the hosts' deep understanding of the financial landscape.
Key Insights
- Nvidia's focus on AI inference marks a shift from model training to real-time task execution, setting the stage for significant revenue growth. CEO Jensen Wang projected $1 trillion in revenue from new chip technology over the next three years.
- The private credit market is under scrutiny, particularly Cliffwater, which has seen high redemption rates. Its rapid growth from $3 billion to $40 billion was fueled by advisors seeking alternatives during a tough year for traditional portfolios.
- The SEC's proposal to allow companies to report earnings semi-annually could reduce transparency. Josh Brown argued that quarterly reports are vital for holding companies accountable, especially in the U.S. where the incentive to manipulate results is high.
- Uber's partnerships with Zeek and Nvidia position it strategically in the autonomous vehicle market. These alliances could allow Uber to compete effectively with Waymo and Tesla, suggesting that the stock is undervalued given its growth potential.