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

Guests: John Zito

What Happened

The episode begins with a look at NVIDIA's GTC event at the SAP Center, where CEO Jensen Wang drew comparisons to Steve Jobs for his showmanship. NVIDIA, a stock held by one of the hosts for over a decade, has not moved much in recent months but is anticipated to hit $250. The company has insight into $1 trillion in revenue potential between 2025 and 2027 and is expected to generate $330 billion next year.

NVIDIA's focus has shifted towards the inference inflection, transitioning from training AI models to their ongoing usage. The company's CUDA software platform remains a significant competitive advantage, running in every cloud environment. Despite high margins, there are concerns about potential market share loss to cheaper chips, though the recovery of its China business offers a positive outlook.

The discussion then turns to the financial sector, where concerns about credit issues have led to downgrades of financial stocks. Bank of America has reported record outflows, with companies like Capital One Financial and Ally Financial experiencing significant declines in stock value. The potential impact of oil price spikes and Federal Reserve interest rate hikes is also scrutinized, particularly the effects on consumer financial conditions.

Attention shifts to the SEC's proposal to allow semi-annual earnings reports instead of quarterly, with skepticism about reduced transparency and the potential for increased corporate dishonesty. Companies like Tesla and Berkshire Hathaway may welcome this change due to their distaste for the quarterly earnings game.

Private credit and equity markets are under heavy scrutiny, with Cliffwater in focus due to its rapid growth and potential conflicts of interest. The private credit market reached $1.2 trillion last year, but concerns are rising about asset valuations and the sustainability of this market if a credit downturn occurs. John Zito from Apollo Global Management expresses skepticism about the accuracy of private equity valuations.

Uber's strategic partnerships with companies like Zeukes, Nissan, Wave, and NVIDIA are explored, focusing on their plans to launch autonomous vehicles by 2028. Uber's stock is considered undervalued, trading at a PE ratio in the cheapest quintile of the S&P 500, with an expected growth rate of 35.8%. Despite competition from Tesla's CyberCab and Google's Waymo, Uber is positioned as a value-based growth stock with significant potential for future growth.

Key Insights

• NVIDIA's GTC event highlighted their focus on inference chips, which allow AI tools to produce responses more efficiently than training processors. This shift is part of a broader strategy to capitalize on $1 trillion in revenue potential through 2027.
• Financial stocks are facing downgrades due to concerns over credit issues and potential impacts from Federal Reserve interest rate hikes. Notable declines include Capital One Financial and Ally Financial, with Bank of America reporting record outflows.
• The private credit market's rapid growth to $1.2 trillion last year has raised concerns about asset valuation accuracy and sustainability. With Cliffwater under scrutiny, advisors debate the risks of investments in private credit funds amidst a potential credit downturn.
• Uber's partnerships with companies like NVIDIA and Zeukes aim to develop autonomous vehicles, positioning Uber as a value-based growth stock. Trading at a low PE ratio, Uber is expected to grow by 35.8%, outperforming median tech and industrial stocks.