3 ms·

I’m also baffled by the reaction. Even with the ability to do more with less, the nature of the race still encourages everyone to do more with more.

bilekas 2y ago
I was under the impression too that this would bump the retail customers demand for the 50 series given the extra AI and cuda cores, add to that the relatively low cost of the hardware. But I know nothing of the sentiments around wallstreet. I don't feel like upgrading my 4090 that said. Maybe wallstreet believes that the larger company deals that have driven the price up for so long might slow down? Or I'm completely wrong on the impact of the hardware upgrades.
bgnn 2y ago
Why should they invest in Nvidia now instead of investing companies which can capitalize on the applications of AI. Also, why not invest in AMD or Intel bur Nvidia till now: Because Nvidia had the moat and there was a race to buy as much GPU as possible at the moment. Now momentarily Nvidia sales would go down. For long term investers who are investing in a future, not now, Nvidia was way overpriced. They will start buying when the price is right, but at the moment it's still way too high. Nvidia is worth 20-30 billion or so in reality.
WJW 2y ago
Part of NVidias valuation was due to the perception that AI companies would need lots and lots of GPUs, which is still true. But I think the main problem causing the selloff was that another part of the popular perception was that NVidia was the only company who could make powerful enough GPUs. Now it has been shown that you might not need the latest and greatest to compete, who knows how many other companies might start to compete for some of that market. NVidia just went from a perceived monopolist to "merely" a leading player in the AI supplier market and the expected future profits have been adjusted accordingly.

bilekas 2y ago

I was under the impression too that this would bump the retail customers demand for the 50 series given the extra AI and cuda cores, add to that the relatively low cost of the hardware. But I know nothing of the sentiments around wallstreet. I don't feel like upgrading my 4090 that said. Maybe wallstreet believes that the larger company deals that have driven the price up for so long might slow down? Or I'm completely wrong on the impact of the hardware upgrades.

bgnn 2y ago

Why should they invest in Nvidia now instead of investing companies which can capitalize on the applications of AI. Also, why not invest in AMD or Intel bur Nvidia till now: Because Nvidia had the moat and there was a race to buy as much GPU as possible at the moment. Now momentarily Nvidia sales would go down. For long term investers who are investing in a future, not now, Nvidia was way overpriced. They will start buying when the price is right, but at the moment it's still way too high. Nvidia is worth 20-30 billion or so in reality.

WJW 2y ago

Part of NVidias valuation was due to the perception that AI companies would need lots and lots of GPUs, which is still true. But I think the main problem causing the selloff was that another part of the popular perception was that NVidia was the only company who could make powerful enough GPUs. Now it has been shown that you might not need the latest and greatest to compete, who knows how many other companies might start to compete for some of that market. NVidia just went from a perceived monopolist to "merely" a leading player in the AI supplier market and the expected future profits have been adjusted accordingly.