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I try to be optimistic about this. Competition is absolutely needed in this space - $NVDA market cap is insane right now, about $0.6 trillion more than the enti
by sva_ 2y ago
I try to be optimistic about this. Competition is absolutely needed in this space - $NVDA market cap is insane right now, about $0.6 trillion more than the entire Frankfurt Stock Exchange.
- Rinzler89 2y agoIt's more how little the Frankfurt stock Exchange is worth. And European devs keep wondering why our wages are lower than in the US for the same work. That's why.
- raverbashing 2y agoYes But there's a long list of German companies not on the DAX (though Germany DAX really deserves to be worth less than NVidia)
- earthnail 2y agoThe DAX is made of the 40 most valuable German companies. That’s how it is defined. So the companies not in it, again by definition, matter less.
- qsi 2y agoThe CDAX index has about 360 companies and appears to have a market cap of around 2 trillion EUR vs 1.7 trillion for the DAX 40.
- pell 2y ago> The DAX is made of the 40 most valuable German companies. Not to be too nitpicky here but these are only the publicly traded companies. You have a number of pretty large German companies that are still entirely private such as Aldi, Schwarz Group, Boehringer or Bosch.
- bigfudge 2y agoAlso many medium sized companies which are productive and competitive but not public, so never grow to huge sizes. I view this as a feature not a bug… smaller companies have a more direct connection with their workforce and tend to behave better with them.
- dukeyukey 2y agoNo it isn't? It's the list of the biggest blue-chip Germany-HQ'd companies trading on the Frankfurt Stock Exchange. If you're a German company with exclusively German employees trading in London, or Paris, or New York, you don't qualify.
- raverbashing 2y ago> DAX is made of the 40 most valuable *listed* German companies https://www.famcap.com/top-500-german-family-businesses-the-economy-most-dependent-on-family-enterprises/ https://www.famcap.com/top-500-german-family-businesses-the-... Not all of those are listed, or listed in Frankfurt
- CapeTheory 2y agoThe DAX is only 40 companies, most of which make real products rather than advertising mechanisms. Making real physical things just doesn't scale, and never will. While I would enjoy a US tech salary, I'm not sure we want a world where all manufacturing is set aside to focus on the attention economy. Nvidia value deserves to be much higher than any company on the DAX (maybe all of them together, as it currently is) - but how much of that current value is real rather than an AI speculation bubble?
- B1FF_PSUVM 2y ago> Making real physical things just doesn't scale, Nvidia sells chips ...
- chad1n 2y agoInvestors don't even know what NVIDIA is selling, I was listening to a random investor podcast and they were talking about Intel, AMD and NVIDIA, but no one knew what exactly they are selling, they only knew they are part of this AI bubble so that's why you should invest in them
- petra 2y agoWhat about seroous analysts, say like morningstar, don't the undedtand the business that they recommended relatively well?
- CapeTheory 2y agoThey can't make them fast enough to satisfy hype-driven demand; they are not scaling like a tech company, but their market cap is being inflated like one.
- lucianbr 2y agoWhat is the meaning of "tech" in this context? "Software"? I mean, if Nvidia isn't a technology company...
- deleted 2y ago[deleted]
- dailykoder 2y agoOkay, so you are saying I should move to america, where apparently a lot of people struggle hard to even get a job? Nah, then ill get my very good wagie pennies here and have plenty jobs available, plus good health insurrance and whatnot.
- dash2 2y agoGerman unemployment is 3.2%. US unemployment is 4.0%. Neither of these are at all high by historical standards. https://www.bls.gov/news.release/empsit.nr0.htm https://www.bls.gov/news.release/empsit.nr0.htm https://www.destatis.de/EN/Press/2024/06/PE24_217_132.html https://www.destatis.de/EN/Press/2024/06/PE24_217_132.html
- dailykoder 2y agoSure, and I can only judge from what I'm hearing, but the internet does make it sounds like it's very hard to find programming jobs as a graduate or junior. I don't know what the truth is. Maybe it's just a minority crying out loud because they don't get hired at FAANG.
- jangxx 2y agoDon't forget to take both of those stats with a grain of salt though. The US has a lot of gig workers which are not always counted correctly or the same and Germany has a large low-wage sector, where people are employed but earn less per month that they would get in unemployment benefits, and so the state pays the difference.
- ptero 2y agoThat is a perfectly reasonable approach. On the other side, working in the tech on the US salary, if not blown on luxurious lifestyle, gives one a good chance of quickly reaching financial semi-independence (say, 3 years of full living expenses in the bank), which can be a powerful feature. My 2c.
- drawback 2y agoOr do both, work for a US company remotely. Most large ones even have an entity in the larger EU countries that can employ you with all the benefits of being an EU employee. They might not pay the exact same as in the US but still considerably above market rate.
- braiamp 2y agoWages is a proxy of how valuable your work is, but not a measure of how value your work is. To support a high salary something has to happen, either the product sold is very expensive or it's being subsidized by investors. No company can pay its employees above what they are able to generate selling the product they worked on indefinitely.
- Refusing23 2y agostock value doesnt reflect a company's income or ability to pay their workers
- threeseed 2y agoWe are in the middle of an LLM bubble. Nvidia problem will sort itself out naturally in the coming months/years.
- Rinzler89 2y agoSame thing was said about Nvidia's crypto bubbles, and then look what happened. Jensen isn't stupid. He's making accelerators for anything so that they'll be ready to catch the next bubble that depends on crazy compute power that can't be done efficiently on CPUs. They're so far the only semi company beating Moore's law by a large margin due to their clever scaling tech while everyone else is like "hey look our new product is 15% more efficient and 15% more IPC than the one we launched 3 years ago". They may be overvalued now but they definitely won't crash back to their "just gaming GPUs" days.
- viraptor 2y agoThey got extremely lucky with AI following crypto. The timing was close to perfect. I'm not sure there will be another wave like that at all for a long while.
- Rinzler89 2y agoMaybe but it's not like all those AI compute units or whatever Nvidia called them will be thrown in the dumpster after the AI bubble pops. There's a lot of problems the can be solved on them and researcher are always looking for new problems to solve as compute becomes accesibile. I'm tired of hearing about Nvidia's "luck". There was no luck involved. Nvidia shiped Cuda on consumer GPUs since 2006. That's almost 20 years time researchers had to find used cases for that compute and Nvidia made it possible. In other words the AI bubble happened because Nvidia made the necessary ground work for it to happen, they didn't just fall into it by luck.
- jononor 2y agoThere is no recurring revenue on them though. So NVIDIA needs to continue selling obscene amount of new chips.
- CarRamrod 2y agoThose are rookie numbers
- littlecranky67 2y agoFrankfurt Stock Exchange or the DAX is mostly irrelevant. Germany has a strong, family-owned Mittelstand, those companies are not publicly traded and thus not listed. Plus, we have some giants that are also not publicly listed but belong to the richest Germans (Lidl, Aldi of discount groceries, but also automotive OEM Bosch).
- sva_ 2y agoOof, I really didn't intend to start a flamewar.