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The air begins to leak out of the overinflated AI bubble
(www.latimes.com)
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this post was submitted on 06 Sep 2024
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But the trillion dollar valued Nvidia...
I think they're going to be bankrupt within 5 years. They have way too much invested in this bubble.
Fall in share price, yes.
Bankrupt, no. Their debt to Equity Ratio is 0.1455. They can pay off their $11.23 B debt with 2 months of revenue. They can certainly afford the interest payments.
I highly doubt that. If the AI bubble pops, they'll probably be worth a lot less relative to other tech companies, but hardly bankrupt. They still have a very strong GPU business, they probably have an agreement with Nintendo on the next Switch (like they did with the OG Switch), and they could probably repurpose the AI tech in a lot of different ways, not to mention various other projects where they package GPUs into SOCs.
It really depends on how much they've invested in building AI chips.
Sure, but their deliveries have also been incredibly large. I'd be surprised if they haven't already made enough from previous sales to cover all existing and near-term investments into AI. The scale of the build-out by big cloud firms like Amazon, Google, and Microsoft has been absolutely incredible, and Nvidia's only constraint has been making enough of them to sell. So even if support completely evaporates, I think they'll be completely fine.
They don't build the chips at all. They pay tsmc.
NVIDIA uses of AI technology aren't going to pop, things like DLSS are here to stay. The value of the company and their sales are inflated by the bubble, but the core technology of NVIDIA is applicable way beyond the chat bot hype.
Bubbles don't mean there's no underlying value. The dot com bubble didn't take down the internet.
Maybe we can have normal priced graphics cards again.
I'm tired of people pretending £600 is a reasonable price to pay for a mid range GPU.
$2.5T currently to be exact
I'm not sure, these companies are building data centers with so many gpus that they have to be geo located with respect to the power grid because if it were all done in one place it would take the grid down.
And they are just building more.
Nvidia is diversified in AI, though. Disregarding LLM, it's likely that other AI methodologies will depend even more on their tech or similar.