Episode summary
Dylan Jovine | We Are Entering the Third Generation of AI
Summary
Dylan Jovine argues that AI is entering a third generation he calls agentic AI: systems that do tasks, process information, and automate workflows instead of only answering questions. He compares the shift to a Cambrian explosion, saying this stage is different because AI is becoming operational inside businesses, including at Behind the Markets, where agents can now pull and organize marketing, customer acquisition, and financial data automatically.
He says that practical adoption is showing up in semiconductor earnings, especially for companies supplying the infrastructure behind AI. AMD is his main example: he says the stock has already been a major winner in the model portfolio, and that its latest results included roughly 60% growth in data center revenue. He also highlights Intel and Arm Holdings as early beneficiaries of the same trend.
The broader argument is that demand is shifting across the hardware stack, with the balance between GPUs and CPUs changing fast. Dylan says the market moved from roughly eight Nvidia GPUs per CPU sold to about four-to-one, and he cites Intel’s view that the ratio could eventually reach parity. That, he argues, is why semiconductor stocks are moving so aggressively and why the sector may be entering a new phase of growth.
Key takeaways
- Dylan Jovine says agentic AI is the third generation of AI because it can do work, not just answer questions.
- He says Behind the Markets is already using AI agents to process business, marketing, customer acquisition, and financial data automatically.
- Dylan cites AMD’s latest earnings as evidence of AI-driven demand, saying data center revenue grew about 57% to 60%.
- He argues the GPU-to-CPU mix is tightening from roughly 8-to-1 to 4-to-1, with Intel expecting parity eventually.
- Dylan says AMD, Intel, and Arm Holdings are the early CPU winners in the AI infrastructure buildout.
Notable quotes
“We're entering actually the third generation of AI and it's unfolding right before our very eyes”
“the third generation of AI is what I've been talking about, what I referenced last week, which is a gentic AI”
“AMD came out with killer earnings the other day and this is a company that is in our model portfolio”
How the episode opens
Good morning. This is Dylan Joy from Behind the Markets. Happy Thursday.
It is Thursday, May 7th. What a great day it is to be alive today. I'm just amazed.
We're watching this AI revolution. We're entering actually the third generation of AI and it's unfolding right before our very eyes. It's very much like the Cambrian explosion where life started to form and just different animals started to evolve based on different things that nature selected for.
We're starting to see the same thing in AI as it really starts to evolve. And the third generation of AI is what I've been talking about, what I referenced last week, which is a gentic AI. Remember, gentic AI is AI that does things for you.
Remember something when chat GBT came out, we'd log in at Chad GBT and we'd ask you questions. We're like, "Oh, this is really cool. This is like a search in a way, but it delivers a more comprehensive, deeper answers to you when it's not hallucinating.
That's really cool. But now we're getting AI to do things for us. It can actually run tasks for us.
And just to give you an idea of how we're using it at my company here, processing data is a very important task for us. We have lots of data on all things going on whether it's marketing, customer acquisition, financial analysis on companies that we're looking at. We got a lot of data to process.
Like every company, you have a lot of data to process. And basically now instead of waking up in the morning and having somebody go and check this database, that database, this database, you can have an agent, an AI agent, a gentic AI do all that for you and serve it to you right on your computer the way you like it.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- agentic ai
- ai automation workflows
- ai infrastructure demand
- semiconductor cpu vs gpu
- semiconductor earnings momentum
Companies and tickers mentioned
- AMD
- INTC
- ARM
- AMD
- Intel
- Arm Holdings
Watch the episode
Watch “Dylan Jovine | We Are Entering the Third Generation of AI” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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