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
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