Originally published at: Nvidia the world's most valuable company again - Boing Boing
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That compares with analysts’ projections for Nvidia of nearly 82% revenue growth to $32.9 billion.
When the AI bubble pops, that’ll hurt them badly. It can’t come soon enough, because I’m tired of the CEO Jensen Huang getting the magical guru treatment in the press.
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I strongly recommend everyone to read a bit of Ed Zitron, he is quite good at A.I. commentary. Here is a great example:
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What puzzles me about Nvidia’s ‘AI’ valuation is that it seems to presume that Nvidia will retain a lock on shovel sales to the sector both in the face of various competitors(the definitely less mature; but correspondingly attractively priced Intel and AMD offerings that are largely drop-in replacements for the high margin Nvidia parts; plus the much larger if typically less visible collection of in-house efforts, like Google’s by companies that don’t want to be Huang’s vassals or the larger Chinese outfits that legally aren’t supposed to be able to be; along with the various ‘edge’/‘on-device’ NPUs that are on the small side but available from basically anyone); and the optimistic theory that chip and software design are going to be amenable to ‘AI’.
Nvidia was absolutely in position with what people required early; and is reaping correspondingly massive sales; but to a combination of sophisticated hyperscalers who seem least likely to put up with Nvidia’s margins competing with their own if their internal expertise is able to do anything about it; to a variety of smaller outfits that absolutely need the easiest and best behaved tools available because they don’t really have in-house operations people, most of which seem unlikely to survive any perturbation in the availability of dumb money; and a future where, if ‘AI’ actually ends up being good enough to continue throwing giant amounts of money into the grinder for; people asking the Synopsis chatbot to make them a big pile of low precision float and fax an order to TSMC will theoretically be a thing.
Sort of like assigning Intel a value of Eleventy-zillion on the basis of ‘cloud computing’ being a thing; despite that largely meaning a move from Intel dealing with little outfits with limited market power through PC OEMs to dealing with humorless hyperscalers who are not shy about wanting bigger discounts and striving for more efficient utilization, even as they putter about with their internal ARM programs.
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