Apple Vision Pro review: This is the future of computing and entertainment
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Published
2 years agoon
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It’s night. I’m at a lake near Oregon’s Mount Hood, sitting on the beach. Jazz music is playing as I write. I’m not in the real world.
Well, I sort of am.
I’m wearing Apple’s new Vision Pro headset, which looks like a fancy pair of glowing ski goggles.
Apple’s long-awaited headset, which starts at $3,500, launches in the U.S. on Friday. It’s the company’s first major new gadget to hit the market since the Apple Watch debuted in April 2015. I’ve been testing it for nearly a week. While it has some shortcomings, it’s easily the most fun new product I’ve tried out in years.
Analysts don’t expect the Vision Pro to drive massive amounts of revenue initially. UBS anticipates Apple will ship about 400,000 headsets, leading to a “relatively immaterial” $1.4 billion in revenue this year. However, I’m convinced that if Apple eventually sells cheaper versions, we’ll see millions of people using them in the coming years.
Apple Vision Pro home screen. Here I’m on top of a mountain in Hawaii.
Todd Haselton | CNBC
The Vision Pro offers a new kind of experience that Apple calls “spatial computing.” You sit in your world while looking at a digital one, and then plop different apps around you. You can work, play games, watch movies or surf the web.
Thanks to very sharp displays, and a full M2 processor that’s usually found in Macs, the Vision Pro has the power to do a lot of what you’d expect from an Apple device. There’s a dedicated App Store for Vision Pro apps, but you can also install more than a million iPhone or iPad apps. Or pair it with your Mac and work while looking at a 4K display inside the goggles.
I’m only scratching the surface of the capabilities, but here’s the gist: This is an entirely new type of computing, providing a whole new world of experiences. It feels like the future.
Here’s what you need to know:
What’s good
Apple Vision Pro
Source: Apple
I was skeptical when I first met with Apple to see the Vision Pro. Companies have been trying to do virtual reality and augmented reality and mixed reality or gobbledygook reality for years.
Sometimes it’s cool, but most of the time I’m done after an hour or so.
With the Vision Pro, there are three key parts that come into play. It has super sharp and colorful screens, it allows you to see the world around you by default using “passthrough” technology, and it has a fast processor.
Text is super crisp on the Apple Vision Pro
Todd Haselton | CNBC
The displays help remove the “screendoor” effect that’s common in lower-cost headsets like the Meta Quest 3. That’s where you can see the pixels as you look through a headset. You can easily read text on a website or a book on the Vision Pro. And I was able to watch movies, including in 3D, on screens bigger and nicer than any TV in my house.
Apple Vision Pro.
Source: Apple
The Quest 3 and other headsets also have passthrough. But Apple’s works better. It’s clearer and sharper, enough so that I can comfortably see the room around me in full color and without any lag, though I still can’t read my phone. And I love how you can turn the small digital crown, just like on the Apple Watch or AirPods Max, to adjust the volume or transport yourself into a fully 3D landscape.
You can select different scenes to surround you.
Todd Haselton | CNBC
Virtual travel is a nice touch. You can work or watch movies in Hawaii, by a lake, in White Sands or at Joshua Tree. They’re all relaxing environments with calming sounds and slow animations – like clouds moving across the sky — that help you feel like you’re almost there.
Navigation is easy once you get the hang of it. This reminds me a bit of the iPhone moment, when Apple launched its multitouch display that changed how we interact with phones that had largely been navigated with a stylus, touchpad or keyboard. There aren’t any controllers here. The headset uses sensors to track your eyes (and even verify when you’re making purchases online or in the App Store.) Apple has a quick setup process that aligns the headset to your eyes and then has you look at a series of dots, pinching your fingers as you go so you can calibrate. If you wear glasses, Apple also sells inserts that pop into the headset.
It’s incredibly accurate. You just look where you want to go and then tap your thumb and index finger to select a button or app. There’s a white bar at the bottom of every app, for example, that you can grab to pull and push around. You can adjust the size of any app by looking at the corner and then dragging it out or in at a diagonal angle. And you can swipe through photos or scroll websites by holding your index finger and thumb together while pulling up or down.
Likewise, you zoom in and out by holding those fingers on both hands and pulling outward or inward. You don’t have to flail your hands in front of you. The headset’s external cameras can detect your fingers down in your lap. You can be subtle.
Apple Vision Pro with a bunch of apps open.
Todd Haselton | CNBC
It packs a punch.
I launched more than a dozen apps around me. There’s no point in doing more, because you can’t see it all. I loved setting it up with a browser in front of me, music next to me and a TV screen above it all. But the world is yours to customize. You can open mail and a browser or leave Slack open next to a Word document with your calendar on the other side. Put your text messages on the ceiling if you want. It’s a completely new way to multitask.
Multitasking with the Apple Vision Pro
Todd Haselton | CNBC
A note: My screenshots show apps askew. But, in the headset, they’re all perfectly level.
I didn’t run into any slowdowns during my time with the Vision Pro. Part of that is due to how Apple renders content. It’s technically only sharpening the areas of the screen where you’re focusing, leaving the other areas blurry. That’s why some of the screenshots here look out of focus around the sides. Inside the headset, it’s all super crisp. It’s called foveated rendering, and it allows for optimized processing.
Gaming on the Apple Vision Pro is a lot of fun.
Todd Haselton | CNBC
I loved watching movies with the headset. I lounged on my couch and put up a huge screen across the wall of my living room and watched an hour of “Barbie,” and the two first episodes of “Masters of the Air” before the battery was at about 5%. Another night I watched “Greyhound.” I used the NBA app, which was updated to work on the Vision Pro, to stream four games at once, with the main game in the middle and others pinned to the sides. It’s wild.
With the NBA app I could watch a bunch of games at once.
Todd Haselton | CNBC
Apple also has some specially recorded content that’s so sharp you feel like you’re standing right there next to a rendered dinosaur or a video of a rhinoceros. There’s a slightly terrifying clip with a woman walking on a tightrope between cliffs. Don’t watch if you’re afraid of heights. The clips show the type of content third parties will eventually be able record and publish to the headset. I imagine sports highlights or even sitting courtside at a live game.
The Disney+ app is fun. You can watch movies in one of about four different 3D landscapes. I sat in a racer on Tatooine and watched a bit of a Star Wars movie, but then switched over to watch “Spider-Man: Into the Spider-verse” in 3D. Unlike 3D TVs and movies, which generally flopped, the effects work well in the headset. It’s neat, but I still prefer watching movies in 2D. It feels more natural to me.
Apple Vision Pro FaceTiming and multitasking.
Todd Haselton | CNBC
FaceTime works well. You see a clear video of the person you’re calling on a screen in front of you. But they don’t see you. Or, not the real you. They see a 3D-rendered version of you called a digital Persona. It’s still in beta, and mine looked like a much older version of me. My colleague thought I looked like an 80-year-old man. My wife laughed.
You create a Persona by selecting an option in the settings menu and then removing the headset and following screens on the external display. It asks you to look up, look down, look left, look right, smile, smile with teeth, and close your eyes. Then, in seconds, it creates a 3D Persona.
My digital Persona from the Apple Vision Pro. I think I look great!
It looks more human than cartoony like with other headsets. I spoke with people over FaceTime also using Personas, and it’s much easier to hold a conversation without feeling like you’re two goofy avatars trying to talk. You can hold a real meeting if necessary in your pajamas while your Persona is in work attire. Personas also carry over to other apps like WebEx.
You can see my persona’s eyes on the screen here.
Jay Yarow | CNBC
Your Persona’s eyes can appear on the outside display. Someone will see glowing effects on the outside of the headset if you have screens up in front of you. If they begin talking to you and you’re in an immersive view – like one of the landscapes I mentioned earlier – they’ll start to fade into focus so you can see them. As you look at them, the eyes of your digital Persona become visible on the outside of the headset. It looks like you’re wearing a snorkeling mask.
In real life, I just removed the headset face when my wife came in to chat.
The built-in speakers are great. They get nice and loud and support spatial audio, so if you turn your head away from the movie in front of you, the sound stays in the same place, much like if you were watching a real TV. Music and movies sounded fantastic, with full surround sound. People can hear the audio coming out of the headset, though, so you’ll want to use AirPods in public.
Photos in the Apple Vision Pro
Todd Haselton | CNBC
I love the “spatial photos” you can capture using the cameras on the outside of the Vision Pro or with the latest iPhone 15 Pro and iPhone 15 Pro Max. The camera creates a 3D version of a photo or video. I filmed my 4-month-old daughter eating and my dog’s 9th birthday, for example, in hopes that I’ll be able to come back and relive some of those moments. I wish I had recorded some of these videos when my stepfather was alive because it’d feel like he was in the room with me. Some people might see it as a gimmick, but I found it moving.
Lastly, the build quality is superb. Apple used top-of-the-line glass, screens and metals. It feels like a premium headset and it’s comfortable to wear. My only complaint is that I had to be deliberate to hold it by the metal frame. The padded inserts pop off their magnets if you try to grab them. Those could be stronger, but they were designed to be easily removed so people could share the headset by popping in their own inserts.
What’s bad
Apple Vision Pro
Todd Haselton | CNBC
Apple’s apps work well. You’ll find Notes, Music, Safari, Podcasts, Photos, Apple TV+, Maps and more. Other apps include SkyGuide and Disney+ and there are Apple Arcade games. Many more are coming, as most apps haven’t yet been built specifically for Vision Pro.
The Vision Pro supports more than a million iPhone and iPad apps. But you need to search for each app individually and some of them aren’t available. Netflix and Spotify haven’t been shy about not supporting the Vision Pro, though you can easily access either using the browser. Still, there are lots of others that I couldn’t find: 1Password isn’t there, which made logging into some apps a bit of a pain. You won’t find Uber, DoorDash (but there’s GrubHub!) or Amazon. None of Google’s apps are here, including YouTube TV, though it works fine in the browser.
SkyGuide in the Apple Vision Pro is fantastic.
Todd Haselton | CNBC
Popular games like Diablo Immortal and Genshin Impact aren’t available. Facebook’s apps aren’t here, so no Instagram. These are just a few I noticed.
Some work well, though. I didn’t have any issues with the X iPad app, for example. CNBC’s app worked fine. Others, like Amazon Prime Video, exist but aren’t great. A bug shows a big box in the middle of the screen when you’re watching a movie, but a fix is coming.
For some apps that aren’t yet available, developers are working to optimize them and eliminate bugs.
X on the Apple Vision Pro
Todd Haselton | CNBC
Apple Keychain was sometimes buggy in iPad apps. This is Apple’s version of 1Password, and I rely on it to enter my username and passwords. It generally works fine. But if you have two usernames for apps, like my wife and I do for Amazon Prime Video or Peacock, the app locks up when you try to select a different login. I informed Apple of the bug.
The floating keyboard is useful for search or typing quick messages, but you won’t be able to type very fast at first. You look at each letter on a digital keyboard and select it, or reach out and tap the digital keyboard. I got faster during my time with the Vision Pro, but nowhere near as quick as I am on my iPhone or a real keyboard. You can just use Siri voice-to-text to respond to iMessages or enter URLs in the browser (and launch apps). Still, you’re going to want to use a keyboard if you have to do a lot of typing.
There’s also the battery pack that plugs into the headset with a proprietary plug that you twist in. I don’t mind it. I thought the pack worked fine, but it would be a lot easier if it was just embedded into the headset, though that would add weight.
Should you buy it?
Apple Vision Pro
Todd Haselton | CNBC
I’d buy the Vision Pro right now if I had an extra $3,500. I’d even consider trading in my iPad Pro and MacBook Pro to offset the cost since the headset gives me a lot of the same capabilities. But that’s not an option.
You’ll definitely love it for movies. I think a lot of people will also really enjoy being able to read the news and browse the web while having a huge TV screen open and lounging on their couch. Some may find they can work in it. I did. It’s fun.
Apple’s real opportunity will materialize when it finds a way to mass produce the Vision Pro at closer to $2,000, or less. Until then, it may be a niche product. But the experience blows everything else out of the water. It’s Apple’s most exciting product in years and it’s the best example yet that this will become a new way of computing.
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Technology
A ‘seismic’ Nvidia shift, AI chip shortages and how it’s threatening to hike gadget prices
Published
5 hours agoon
December 2, 2025By
admin

The logo of an Apple Store is seen reflected on the glass exterior of a Samsung flagship store in Shanghai, China Monday, Oct. 20, 2025.
Wang Gang | Feature China | Future Publishing | Getty Images
The cost of your smartphone might rise, analysts are warning, as the AI boom clogs up supply chains and a recent change by Nvidia to its products could make it worse.
AI data centers, on which tech giants globally are spending hundreds of billions of dollars, require chips from suppliers, like Nvidia, which relies on many different components and companies to create its coveted graphics processing units.
But other companies like AMD, the hyperscalers like Google and Microsoft, and other component suppliers all rely on this supply chain.
Many parts of the supply chain can’t keep up with demand, and it’s slowing down components that are critical for some of the world’s most popular consumer electronics. Those components are seeing huge spikes in prices, threatening price rises for the end product and could even lead to shortages of some devices.
“We see the rapid increase in demand for AI in data centers driving bottlenecks in many areas,” Peter Hanbury, partner in the technology practice at Bain & Company, told CNBC.
Where is the supply chain clogged?
One of the starkest assessments came from Alibaba CEO Eddie Wu, CEO of Chinese tech giant Alibaba.
Wu, whose company is building its own AI infrastructure and designs its own chips, said last week that there are shortages across semiconductor manufacturers, memory chips and storage devices like hard drives.
“There is a situation of undersupply,” Wu said, adding that the “supply side is going to be a relatively large bottleneck.” He added this could last two to three years.
Bain and Co.’s Hanbury said there are shortages of hard disk drives, or HDDs, which store data. HDDs are used in the data center. These are preferred by hyperscalers,: big companies like Microsoft and Google. But, with HDDs at capacity, these firms have shifted to using solid-state drives, or SSDs, another type of storage device.
However, these SSDs are key components for consumer electronics.
The other big focus is on a type of chip under the umbrella of memory called dynamic random-access memory or DRAM. Nvidia’s chips use high-bandwidth memory which is a type of chip that stacks multiple DRAM semiconductors.

Memory prices have surged as a result of the huge demand and lack of supply. Counterpoint Research said it expects memory prices to rise 30% in the fourth quarter of this year and another 20% in early 2026. Even small imbalances in supply and demand can have major knock on effects on memory pricing. And because of the demand for HBM and GPUs, chipmakers are prioritizing these over other types of semiconductors.
“DRAM is certainly a bottleneck as AI investments continue to feed the imbalance between demand and supply with HBM for AI being prioritized by chipmakers,” MS Hwang, research director at Counterpoint Research, told CNBC.
“Imbalances of 1-2% can trigger sharp price increases and we’re seeing that figure hitting 3% levels at the moment – this is very significant.”
Why are there issues?
Building up capacity in various areas of the semiconductor supply chain can be capital-intensive. And it’s an industry that’s known to be risk-averse and did not add the capacity necessary to meet the projections provided by key industry players, Bain & Co.’s Hanbur said.
“The direct cause of the shortage is the rapid increase in demand for data center chips,” Hanbury said.
“Basically, the suppliers worried the market was too optimistic and they did not want to overbuild very expensive capacity so they did not build to the estimates provided by their customers. Now, the suppliers need to add capacity quickly but as we know, it takes 2-3 years to add semiconductor manufacturing fabs.”
Nvidia at the center
A lot of attention is on Nvidia given it dominates when it comes to the chips that are being put into AI data centers.
It is a huge customer of high bandwidth memory, for example. And its products are manufactured by TSMC which also has other major customers like Apple.
But analysts are focused on a change Nvidia has made to its products that has the potential to add major pressure to consumer electronics supply chains. The U.S. giant is increasingly shifting toward using a type of memory in its products called Low-Power Double Data Rate (LPDDR). This is seen as more power efficient than the previous Double Data Rate, or DDR memory.
The problem is, Nvidia is increasingly using the latest generation of LPDDR memory, which is also used by high-end consumer electronics makers such as Samsung and Apple.
Typically, the industry would just be dealing with demand for this product from a handful of big electronics players. But now Nvidia, which has huge scale, is entering the mix.
“We also see a bigger risk on the horizon is with advanced memory as Nvidia’s recent pivot to LPDDR means they’re a customer on the scale of a major smartphone maker — a seismic shift for the supply chain which can’t easily absorb this scale of demand,” Hwang from Counterpoint Research said.
How AI boom is impacting consumer electronics
Here’s the link between all of this.
From chip manufacturers like TSMC, Intel and Samsung, there is only so much capacity. If there is huge demand for certain types of chips, then these companies will prioritize those, especially from their larger customers. That can lead to shortages of other types of semiconductors elsewhere.
Memory chips, in particular DRAM which has seen prices shoot up, is of particular concern because it’s used in so many devices from smartphones to laptops. And this could lead to price rises in the world’s favorite electronics.
DRAM and storage represent around 10% to 25% of the bill of materials for a typical PC or smartphone, according to Hanbury of Bain & Co. A price increase of 20% to 30% in these components would increase the total bill of materials costs by 5% to 10%.
“In terms of timing, the impact will likely start shortly as component costs are already increasing and likely accelerate into next year,” Hanbury said.

On top of this, there is now demand from players involved in AI data centers like Nvidia, for components that would have typically been used for consumer devices such as LPDDR which adds more demand to a supply constrained market.
If electronics firms can’t get their hands on the components needed for their devices because they’re in short supply or going toward AI data centers, then there could be shortages of the world’s most popular gadgets.
“Beyond the rise in cost there’s a second issue and that’s the inability to secure enough components, which constrains the production of electronic devices,” Counterpoint Research’s Hwang said.
What are tech firms saying?
A number of electronics companies have warned about the impact they are seeing from all of this.
Xiaomi, the third-biggest smartphone vendor globally, said it expects that consumers will see “a sizeable rise in product retail prices,” according to a Reuters reported this month.
Jeff Clark, chief operating officer at Dell, this month said the price rises of components is “unprecedented.”
“We have not seen costs move at the rate that we’ve seen,” Clark said on an earnings call, adding that the pressure is seen across various types of memory chips and storage hard drives.
The unintended consequences
The AI infrastructure players are using similar chips to those being used in consumer electronics. These are often some of the more advanced semiconductors on the market.
But there are legacy chips which are manufactured by the same companies that the AI market is relying on. As these manufacturers shift attention to serving their AI customers, there could be unintended consequences for other industries.
“For example, many other markets depend on the same underlying semiconductor manufacturing capabilities as the data center market” including automobiles, industrials and aerospace and defense, which “will likely see some impact from these price increases as well,” Hanbury said.
Technology
Samsung launches its first multi-folding phone as competition from Chinese brands intensifies
Published
6 hours agoon
December 2, 2025By
admin
Samsung Electronics’s Galaxy Z TriFold media day at Samsung Gangnam in Seoul, South Korea, on Dec. 2, 2025.
Anadolu | Anadolu | Getty Images
Samsung Electronics on Monday announced the launch of its first multi-folding smartphone as it races to keep pace with innovations from fast-moving rivals.
The long-anticipated “Galaxy Z TriFold” will go on sale in South Korea on Dec. 12, with launches to follow in other markets including China, Taiwan, Singapore, and the United Arab Emirates, the company said in a press release.
The phone will be available in the U.S. during the first quarter of 2026, with more details to be shared later, the South Korean tech giant added. The Galaxy Z Trifold will ship as a single model in black with 16GB of memory and 512GB of storage, priced at 3,594,000 South Korean won ($2,449).
With Apple’s expected entry into the foldable segment, Samsung is positioning this device as a multi-fold pilot to reinforce its technology leadership.”
Liz Lee
Associate Director at Counterpoint Research
The device uses two inward-folding hinges to open into a 10-inch display — a tad smaller than the 11th-generation iPad’s 11-inch display — with a 2160 x 1584 resolution.
When its screen panels are folded, the device is measures 12.9 millimeters (0.5 inches) thick — slightly more than the Galaxy Z Fold6 at 12.1 mm and the latest Galaxy Z Fold7 at 8.9 mm.
“Samsung’s first tri-fold model will ship in very limited volume, but scale is not the objective,” Liz Lee, associate director at Counterpoint Research, said in a statement shared with CNBC.
“With competitive dynamics set to shift materially in 2026, especially with Apple’s expected entry into the foldable segment, Samsung is positioning this device as a multi-fold pilot to reinforce its technology leadership.”
A Samsung Electronics Co. Galaxy Z TriFold smartphone on display during a media preview in Seoul, South Korea, on Tuesday, Dec. 2, 2025.
Bloomberg | Bloomberg | Getty Images
Lee added that Samsung’s latest product is meant to test durability, hinge design and software performance while gathering real-world user insights before wider commercialization.
The phone’s three foldable panels can also run three apps vertically side by side, and offer a desktop-like mode without a separate display.
The TriFold features Samsung’s largest battery capacity among its foldable models and supports super-fast charging that reaches 50% in 30 minutes.
TM Roh, who was recently appointed Samsung Electronics co-CEO and head of the Device eXperience division, said the Galaxy Z TriFold reflects years of work on foldable designs and aims to balance portability, performance and productivity in one device.
Samsung was an early innovator of folding smartphones, unveiling its first foldable device in 2019. While the market has remained relatively small, new competitors have continued to enter, including Chinese brands that have proven competitive in both price and dimension.
Visitors try out the Galaxy Z Trifold during Samsung Electronics’ Galaxy Z TriFold media day at Samsung Gangnam in Seoul, South Korea, on Dec. 2, 2025.
Anadolu | Anadolu | Getty Images
In September, telecommunications giant Huawei announced its second-generation trifold phone for the Chinese market, measuring 12.8 mm thick when folded.
This year has also seen Chinese brands like Honor launch foldable smartphones in international markets. Honor was spun off from Huawei in 2020 in a bid to avoid U.S. sanctions and tap international markets.
Like Samsung’s other recent foldables, the TriFold is rated IP48, meaning it is water-resistant up to 1.5 meters for up to 30 minutes but offers limited dust protection.
Technology
Nvidia CEO to Cramer: Synopsys deal is ‘culmination of everything I showed you’ over the years
Published
11 hours agoon
December 2, 2025By
admin
In this year’s flurry of massive artificial intelligence deals – for which a couple of billion dollars is pocket change – Nvidia ‘s announcement on Monday of a $2 billion investment to expand its long-time partnership with Synopsys might seem just incremental. Not so, asserted Nvidia CEO Jensen Huang, in an interview with Jim Cramer shortly after the news broke. Jensen said, “This is a huge deal.” Here’s why: Synopsys provides software and tools that allow companies like Nvidia to design, test, and verify semiconductors. Jensen said, “Nvidia was built on a foundation of design tools from Synopsys,” among others. This deal allows Synopsys, which earlier this year completed its purchase of engineering simulation software maker Ansys, to leverage Nvidia’s AI platform to deliver computer-modeled design and engineering solutions across many industries. Nvidia’s powerful chips, called graphics processing units (GPUs), are the gold standard in AI. With Monday’s deal , Nvidia will be positioned to bring GPU-powered accelerated computing to the world’s industrial sector, which represents an addressable market measured in the tens of trillions of dollars. What makes that possible is that the AI we are talking about here obeys the laws of physics, meaning that it can be relied upon to show how things will really run in the real world. Synopsys CEO Sassine Ghazi, standing alongside Jensen, said that what we’re talking about here, in a practical sense, is taking a workload that may have taken two to three weeks and compressing that to a matter of hours. Even with the work of Synopsys and other electronic design automation (EDA) providers, Jensen said Nvidia still spends “billions of dollars in prototyping” products in the physical world. “In the future, we’re going to prototype all of these products digitally so that we don’t waste any money when we build it physically,” he explained. “We could do basically the entire engineering work inside a computer in a digital twin before we have to build it at all. So, the type of products we can invent and the quality that we could do, and the speed that we could do it at is going to be extraordinary.” Jensen said that industrial companies that make things, be it Nvidia, or GM , or Boeing , spend hundreds of millions, even low billions of dollars on engineering software tools. He noted, however, that the money spent on prototyping can be 10 times to 20 times that figure. The ability to prototype digitally, therefore, represents a massive opportunity for industrial companies to reduce costs. Jensen told Jim, “This is really the culmination of everything I showed you when you visited Nvidia years ago. It’s taken this long for us to create the software stack necessary for Synopsys and the rest of the EDA [electronic design automation] industry, in order for them to accelerate the software that they’ve historically only run on CPUs [central processing units].” He added, “All of a sudden, the market opportunity increases by a factor of 10 to 100.” Jim Cramer, who started recommending Nvidia stock in 2009, first interviewed Jensen a year later. The “Mad Money” host even renamed his dog “Nvidia” in 2017 to demonstrate his belief in the company. While first bought in Jim’s Charitable Trust in August 2017 and exited in October 2018, Nvidia stock has been a constant since we re-initiated it in March 2019. More recently, Jim hosted Jensen at the Investing Club’s October Monthly Meeting, where the CEO got to meet many early Nvidia investors who made lots of money on the stock. The Trust is the portfolio the Club uses. In Monday’s interview, Jim also pressed Jensen on recent concerns about whether the launch of Gemini 3, powered by Google’s custom chips, would encroach on Nvidia’s GPU business. Google’s own semiconductors, called tensor processing units, were co-designed by Broadcom . Jensen, who complimented Google on their chips, said, “What Nvidia does is much more versatile,” dismissing the concerns and bringing the conversation back to the potential of the Synopsys investment. “You’re now seeing a real, tangible example of an opportunity that we could do with our platform that nobody else can.” AI goes far beyond the chatbots and consumer-facing solutions that have garnered most of our attention – and contributed to the pressure on shares of Nvidia since the Gemini 3 launch. Jensen said that Monday’s announcement is about revolutionizing the industrial software industry, where the stakes are much higher. On the consumer side, an answer to a query that is 90% correct, or recommends an item, movie, or new music with 90% accuracy, is a pretty good start – but on the industrial side, “that 10% you don’t get right, becomes mission critical,” the CEO added. That’s also why the pace of advancement has been so much faster in consumer AI. However, as exciting as the consumer-oriented developments have been, it’s the industrial side that likely proves to be the real opportunity. While capital expenditures by the biggest tech companies in the world to support consumer AI has, thus far, been the real driver of AI investment and infrastructure spending, the industry is now getting to the point where we should see spending ramp up elsewhere, be it from automakers like Ford and GM, or even ship builders in Korea. Not only does that speak to more spending in the years to come, but also a diversification of the spending base, which should materially help to de-risk the customer base for companies like Nvidia that have in recent years seen so much of their demand come from a select few customers. Ultimately, the move marks a significant milestone for Nvidia and the AI trade more broadly as it lays the groundwork for a material expansion in industrial AI. As we see it, the deal is a strong move for both companies. Synopsys gets to better serve its customers, while Nvidia expands its own ecosystem and helps to lay the groundwork for even more GPU-based accelerated computing infrastructure. On a conference call hosted by both companies to discuss the deal, Jensen said, “Of all the AI opportunities – industrial AI, physical AI – is the largest of all. And the reason for that is very clear. The world’s industries represent the vast majority of $100 trillion industry today. That industry, whether you’re designing cars or trains or planes or designing computers, all of that largely is based on general purpose computing. … But in order for us to go even further, in order for us to do even more, expanding the reach of design and engineering so that we could do almost everything in the world inside a digital environment, long before we create the physical manifestation, that journey, we’ve been preparing for several years now, and today our announcement really kicks it into turbocharge.” Jensen wrapped up by noting that Synopsys is the company that has allowed Nvidia to design its own chips, since its founding, and that the deal announced Monday is going to “enable everyone to design everything that’s physically manifested in the future.” (Jim Cramer’s Charitable Trust is long NVDA, AVGO, BA. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
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