Nvidia as a company is in no danger of going under. Much of their manufacturing is done via 3rd party, including the chips which are fabbed in TSMC and Samsung’s fabs, so they have rather minor costs in terms of maintenance.
Their true value is in IP, R&D, and industry connections. Nvidia has overvalued stock, but there’s too much of a foundation in their business to not be profitable. The only risk to them is if all the circular financing pulled in enough outside loans that Nvidia couldn’t pay off the interest after the AI bubble bursts
I mean, I agree superficially. But I’ve got no idea what’s going on under the hood of their financials.
You could have said the same thing about AIG or Enron, if you didn’t know how much debt they were floating.
NVIDIA has a lot of balls in the air and a sudden sharp devaluation of their market cap could have all sorts of reciprocal effects on their cash flow. If nothing else, exposing a multi billion dollar business partner as being in open violation of US sanctions on export sales is really bad for their projected future growth.
Not the end of the world for NVIDIA. But it does throw up a ton of question marks about their future.
Why would they need it? They’re cash rich right now. Did a couple hundred billion in stock buybacks recently in fact.
They have nothing they’d ever need a trillion dollars for. Pre-AI their annual revenue was like 20 billion or so. They don’t have fabs, so no large capex loans to worry about
IMO those chips are going to be valuable no matter what. AI is a dipshit pipe dream that will lead to massive global instability and drive conflict. At that point nations will be scrambling for chips to power drone swarms, aircraft, missile systems, satellites, space ships, etc.
AI is just the catalyst to drive society to the brink of destruction. The purpose of the chips will change, but they still will be valuable and sought after.
Rich people don’t invest in the future they think will happen. They invest in the future they want to happen. What they want to happen is a large-scale cataclysmic event that will wipe out probably at least 50% of the Earth’s population. They don’t really fucking care because they’re going to be fine in their bunkers regardless, unless we change that.
Or it’s a terrible time to buy because the game is up and no one wants to be holding chips when the casino runs out of money. We’ll know in a year.
It’s not over till it’s over.
If nothing else, NVIDIA is a ripe target for trillion dollar federal bailouts.
Nvidia as a company is in no danger of going under. Much of their manufacturing is done via 3rd party, including the chips which are fabbed in TSMC and Samsung’s fabs, so they have rather minor costs in terms of maintenance.
Their true value is in IP, R&D, and industry connections. Nvidia has overvalued stock, but there’s too much of a foundation in their business to not be profitable. The only risk to them is if all the circular financing pulled in enough outside loans that Nvidia couldn’t pay off the interest after the AI bubble bursts
I mean, I agree superficially. But I’ve got no idea what’s going on under the hood of their financials.
You could have said the same thing about AIG or Enron, if you didn’t know how much debt they were floating.
NVIDIA has a lot of balls in the air and a sudden sharp devaluation of their market cap could have all sorts of reciprocal effects on their cash flow. If nothing else, exposing a multi billion dollar business partner as being in open violation of US sanctions on export sales is really bad for their projected future growth.
Not the end of the world for NVIDIA. But it does throw up a ton of question marks about their future.
Why would they need it? They’re cash rich right now. Did a couple hundred billion in stock buybacks recently in fact.
They have nothing they’d ever need a trillion dollars for. Pre-AI their annual revenue was like 20 billion or so. They don’t have fabs, so no large capex loans to worry about
IMO those chips are going to be valuable no matter what. AI is a dipshit pipe dream that will lead to massive global instability and drive conflict. At that point nations will be scrambling for chips to power drone swarms, aircraft, missile systems, satellites, space ships, etc.
AI is just the catalyst to drive society to the brink of destruction. The purpose of the chips will change, but they still will be valuable and sought after.
Rich people don’t invest in the future they think will happen. They invest in the future they want to happen. What they want to happen is a large-scale cataclysmic event that will wipe out probably at least 50% of the Earth’s population. They don’t really fucking care because they’re going to be fine in their bunkers regardless, unless we change that.