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How dumb can you be to short the company that has basically a monopoly over AI infrastructure? These folks are probably AI skeptic and they are having a reality

How dumb can you be to short the company that has basically a monopoly over AI infrastructure? These folks are probably AI skeptic and they are having a reality check right now.

jjeaff 3y ago
Even if an AI skeptic has good reason to be right, I can't imagine a scenario where the AI bubble collapses so quickly. If it's a bubble, seems like the beginning of one.
tester756 3y ago
Whether they are right or wrong we will now in next years
gymbeaux 3y ago
The short answer is its PE Ratio is obscene (even more so today), and last quarter the ER was kind of “doom and gloom” not just for NVDA but AMD, DELL, HPE, etc.
- fomine3 3y ago
  NVDA is the new TSLA, regardless of how their business doing great
devoutsalsa 3y ago
I’m out of touch on the GPU market. Is AMD/ATI competitive these days? Are there any other noteworthy players?
- remote-dev 3y ago
  AMD GPUs are not as good as Nvidia's. The other issue that AMD and any other competitor has to face is that much of the new AI software uses CUDA, which as far as I know is limited to Nvidia hardware only.
- Sohcahtoa82 3y ago
  ATI hasn't existed as a brand since 2010. Every GPU since then has had AMD branding. Typically, AMD GPUs have a slight edge over NVIDIA GPUs in the price/performance metric, but NVIDIA simply offers higher performance options overall. But NVIDIA cards also absolutely demolish AMD in compute power needed for AI.
danielscrubs 3y ago
I wouldn’t do it, but the price to earnings ratio is around 170 for Nvidia and 26 for Alphabet so you could argue that the AI revolution is already priced in for a considerable time, especially if companies starts to use TPUs on cloud providers or if AMD actually pretends to be in the space.
jtsiskin 3y ago
Or they’re true AI believers, and believe AI assisted chip design will erode NVIDIA’s edge
HDThoreaun 3y ago
If Intel can figure out GPUs(admittedly a big if) nvda is fucked. AMD less so because they're still reliant on expensive TSMC fabs. There are tons of reasons to believe nvda will not retain its monopoly on the data center and they need to if they're going to 10x earnings which is what the current price is predicting.

How dumb can you be to short the company that has basically a monopoly over AI infrastructure? These folks are probably AI skeptic and they are having a reality check right now.

jjeaff 3y ago

Even if an AI skeptic has good reason to be right, I can't imagine a scenario where the AI bubble collapses so quickly. If it's a bubble, seems like the beginning of one.

tester756 3y ago

Whether they are right or wrong we will now in next years

gymbeaux 3y ago

The short answer is its PE Ratio is obscene (even more so today), and last quarter the ER was kind of “doom and gloom” not just for NVDA but AMD, DELL, HPE, etc.

fomine3 3y ago
NVDA is the new TSLA, regardless of how their business doing great

devoutsalsa 3y ago

I’m out of touch on the GPU market. Is AMD/ATI competitive these days? Are there any other noteworthy players?

remote-dev 3y ago
AMD GPUs are not as good as Nvidia's. The other issue that AMD and any other competitor has to face is that much of the new AI software uses CUDA, which as far as I know is limited to Nvidia hardware only.
Sohcahtoa82 3y ago
ATI hasn't existed as a brand since 2010. Every GPU since then has had AMD branding. Typically, AMD GPUs have a slight edge over NVIDIA GPUs in the price/performance metric, but NVIDIA simply offers higher performance options overall. But NVIDIA cards also absolutely demolish AMD in compute power needed for AI.

danielscrubs 3y ago

I wouldn’t do it, but the price to earnings ratio is around 170 for Nvidia and 26 for Alphabet so you could argue that the AI revolution is already priced in for a considerable time, especially if companies starts to use TPUs on cloud providers or if AMD actually pretends to be in the space.

jtsiskin 3y ago

Or they’re true AI believers, and believe AI assisted chip design will erode NVIDIA’s edge

HDThoreaun 3y ago

If Intel can figure out GPUs(admittedly a big if) nvda is fucked. AMD less so because they're still reliant on expensive TSMC fabs. There are tons of reasons to believe nvda will not retain its monopoly on the data center and they need to if they're going to 10x earnings which is what the current price is predicting.