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People here quoting Jevons paradox are grossly misapplying it. Jevons paradox will predict an increase in usage of compute for AI. Not Nvidia specifically. The

People here quoting Jevons paradox are grossly misapplying it. Jevons paradox will predict an increase in usage of compute for AI. Not Nvidia specifically. The specific insane valuation of Nvidia comes from an unending stream of hundreds in billions in big tech capex, constantly buying cutting edge GPUs, because on SV scaling laws are practically religious commandments. It remains to be seen how this affects Nvidia, but it is not a case of Nvidia like many posts here imply, business wise.

kandesbunzler 2y ago
These are all NVDA owners coping, they dont want rational thoughts. The hit in market cap is absolutely deserved, especially now with the threat of tarrifs.
- SR2Z 2y ago
  NVDA has an exceptionally reasonable P/E ratio and is a great pick on fundamentals alone. The tariffs are not going to make other graphics cards + their software 2x better.
  - kandesbunzler 2y ago
    pure cope. Hyperscalers already have a ton of gpus who just got 90% more efficient. They will absolutely reduce spend especially once the tariffs hit lol
    - numpad0 2y ago
      from non-investor perspective it's a long awaited sign of eventual profitability in the money pit and 10x sales potential. Not trying to debunk you, to me it's just proof as to how unrelated tech and market worlds are
      - kandesbunzler 2y ago
        except that deepseek r1 isnt a gigantic leap in terms of actual intelligence. These models still have questionable use, I have no doubt that more people will want to use them now but its not going to compensate for how much more efficient they are now. Not even close.
        SR2Z 2y ago
        Do you think that the data centers which have already been built are sitting idle, and that's why people are tripping over themselves to spin up new ones? It's an objective fact that many people find these things useful. Whether or not they're willing to PAY is another issue.
    - SR2Z 2y ago
      I mean nobody can pretend that this level of investment will continue forever, but even before the LLM hype NVIDIA was printing cash.
intpx 2y ago
Except there has yet to be a breakthrough on anything that isn’t Nvidia, using anything that isn’t cuda/nccl etc That day is certainly coming, but today is not that day
edoloughlin 2y ago
Isn't CUDA a pretty good moat for Nvidia?

kandesbunzler 2y ago

These are all NVDA owners coping, they dont want rational thoughts. The hit in market cap is absolutely deserved, especially now with the threat of tarrifs.

SR2Z 2y ago
NVDA has an exceptionally reasonable P/E ratio and is a great pick on fundamentals alone. The tariffs are not going to make other graphics cards + their software 2x better.
- kandesbunzler 2y ago
  pure cope. Hyperscalers already have a ton of gpus who just got 90% more efficient. They will absolutely reduce spend especially once the tariffs hit lol
  - numpad0 2y ago
    from non-investor perspective it's a long awaited sign of eventual profitability in the money pit and 10x sales potential. Not trying to debunk you, to me it's just proof as to how unrelated tech and market worlds are
    - kandesbunzler 2y ago
      except that deepseek r1 isnt a gigantic leap in terms of actual intelligence. These models still have questionable use, I have no doubt that more people will want to use them now but its not going to compensate for how much more efficient they are now. Not even close.
      - SR2Z 2y ago
        Do you think that the data centers which have already been built are sitting idle, and that's why people are tripping over themselves to spin up new ones? It's an objective fact that many people find these things useful. Whether or not they're willing to PAY is another issue.
  - SR2Z 2y ago
    I mean nobody can pretend that this level of investment will continue forever, but even before the LLM hype NVIDIA was printing cash.

intpx 2y ago

Except there has yet to be a breakthrough on anything that isn’t Nvidia, using anything that isn’t cuda/nccl etc That day is certainly coming, but today is not that day

edoloughlin 2y ago

Isn't CUDA a pretty good moat for Nvidia?