Eric Siu discusses how Google's Nano Banana product is driving Gemini usage and revenue. Google's trailing 12-month net income sits around $115B, and the conversation covers Gemini's consumer applications, Google's marketing struggles, and Nvidia's customer concentration risks in the AI space.
Speaking of revenue, do you know what the net income of Google was over the last 12 months? You should probably know this.
Around $100 billion if I had to guess.
$115 billion and the graph is going up over here.
I think it's one of the most undervalued companies out there.
So look, it says no excuses.
Personal opinion, not financial advice.
No excuses, no grandiose promises, just pure execution. Sundar Pichai, it's Pichai, right? You're Indian.
I don't know how to say his last name.
Pichai deserves more credit and it's true. Nano Banana, great product, right? The VO3, great product.
Wait, that's Google's product?
You didn't know that?
Uh-uh.
That's Google's product. Dude, it is amazing.
I know, it's amazing.
Did you see me use it last week? I was on vacation, right? Still working, but I had it recording me playing tennis. And then I told it to rate my form on my forehand and my backhand, and it rated it and it said, here's what you need to do to fix it. Oh my God, dude, I don't know how to play golf. It was my first time playing golf on the— I played like 9 holes, right? You know, have you played golf before?
Yeah.
Okay, so I don't know how to play.
You lived in a country club, remember?
Well, that's right, that's right. So the, the, um, it, it told me how to fix my form and my swing. And then, um, my very first hole was a bogey. And I don't even know what a bogey is. What is a bogey again? I just, I was told it was a bogey.
I don't know. I'm not that good at golf.
Yeah.
When I played golf, I sucked every time.
I, but I think a bogey is like, it, it just took me like, I don't know, like—
Like 3 or 4 strokes.
Yeah. Yeah.
I don't know how many strokes it is. I think it varies per hole too.
Yeah. Per hole. So I was like, I don't know, like the par was 4 and I think I like hit it or like 1 over or something like that.
I don't know.
I have no idea. But what fixed that? AI did that, right? So my point is I use Gemini for that. So Google's products are really good. They're really good. They just suck at like figuring out how to market them.
Uh-huh.
Yeah.
Dude, totally agree with that. But what's interesting is when you look at Google as a company and products, you know, I learned about that product not from them. I learned about it from what social platform, if you had to guess?
Twitter?
Yeah, X.
Yeah, yeah.
It's all over X.
Yeah. Yeah, Nano Banana, Nano Banana. So when you open Gemini on your phone, there's a little banana there and you can— and it maintains character consistency. So I asked it to make a picture of me and like make it like into a manga and then make it into a story. And it did that. It was perfect. And then I asked it to combine different images. Anyway, my point is—
But dude, you can do it with like, you can do some really cool stuff with celebrities if you really wanted to, assuming you have their authorization and stuff.
So this $115 billion in the past 12 months, where do you think they rank in terms of just all companies in terms of net income?
Net income? Top 10.
Number one.
Out of every company in the world?
The most of any company.
Oh, wow.
Yeah, so people like to say, like we've said before, like sometimes we'll exaggerate to get the headlines, but that traditional SEO is dead, blah, blah. Google's still good for a long time.
Dude.
They were first on AI, DeepMind and all that. Like their models are pretty fine.
People forget ChatGPT's, OpenAI's lead AI person was a Google person that Elon Musk recruited out.
A DeepMind person? Yes. Yeah.
So look, I forgot what his name was, but it was up there. Yeah, I think he was a Google person, if I'm not mistaken.
Yeah. Google, Tesla. But that's what—
that's the thing that people make a mistake on. Everyone's like, oh, Google's out. And I'm like, what are you guys talking about? Google Search is growing and it's more popular than ever. Yeah, I don't think Google has to worry too much about marketing. It's— they just need to integrate these products within the core apps that people just use and they'll be okay.
Dude, you'll like this. You'll like this. Watch. So someone asked Grok here, Alphabet Google has the highest trailing 12 months net income at $115.6 Up 32% year on year. Microsoft is number 2, $101.8 billion, up 15% year on year. Apple, still strong, Apple, $99.3 billion, down 3%. Nvidia, $86.6 billion, up 19%. The recent quarters show strong growth, like 59% in Q2 fiscal year 2026.
You see Nvidia's, I started doing the calculation on this. It's a, there was a TechCrunch article that like their top customer, I texted Mike on this, There's a TechCrunch article and CNBC article on their top customers and their percentage of revenue, right? Where is it? Nvidia has like crazy client concentration, but it could be that they're middle, like vendors or something like that, where they're selling it to other people. Let's see, 6 customers made up 85% of their Q2 revenue from a TechCrunch article.
Wow.
And their article says Nvidia's 2 mystery customers accounted for 39% of Q2's revenue. In that article, they break down their next biggest customers and add it all up. I'm like, 6 customers made up 85% of their Q2 revenue.
Wow.
Yeah.
So when the infrastructure buildout starts to slow down, those—
Oh, they're going to get hit hard.
But it's, I don't think it's slowing down anytime soon. No, I think we still have like another 5, 10 years to run. That's not financial advice, guys.
It's just what I think.
Anyway, we'll catch you later, guys.
