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I don't think anyone expects nvidia to "sink". We're concerned that competitive pressures and possible reductions from sky-high demand could make it really har
by mlyle 4d ago
I don't think anyone expects nvidia to "sink". We're concerned that competitive pressures and possible reductions from sky-high demand could make it really hard for nv to justify or maintain their current valuation.
That is, revenues may be unusually cyclically high.
It's going to be hard for frontier labs to keep spending at this rate without starting to make money. And even if they do, lower cost alternatives will likely impact at least to -some- extent how much of that revenue nv gets.
- LogicFailsMe 4d agoHave you ever checked out the beta on Nvidia stock? Not to mention its surprisingly sane P/E ratio? Compare and contrast with Tesla.
- mlyle 4d agoI know the P/E isn't completely nuts. It still prices in revenue growth. It is possible that nv maintains an absolutely dominant market position and total amount spent on GPUs continues to rise. It's also possible that either of these things doesn't happen.
- LogicFailsMe 4d agoYes, but the first mover advantage really is a thing. As an example, Yahoo really had to mess up to lose its spot to Google, but they were up to the challenge.
- mlyle 4d agoThat doesn't really have anything to do with what I said.