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Correct me if I'm wrong, but Jevons paradox says nothing about profits from selling coal, the growth rates of coal consumption, etc. Nvidia currently has ~75%
by onlyrealcuzzo 2y ago
Correct me if I'm wrong, but Jevons paradox says nothing about profits from selling coal, the growth rates of coal consumption, etc.
Nvidia currently has ~75% margins and ~90% growth. If either of those nobs get turned down slightly, their valuation can tank.
Which is what happened.
If Nvidia's 10-year growth forecast went from ~40% per year (29x in 10 years) to ~30% per year (14x in 10 years) - that's a 50% smaller future company you're expecting.
It's still great for Nvidia. It's just LESS great than people thought before, which means their market cap comes down a ton.
That's what you're all forgetting.
- InkCanon 2y agoExactly. Any rational person will predict Nvidia will own the space. But projected over a long period, a 10% decrease in growth is massive
- Jlagreen 2y agoNvidia had 65% margins 5 years ago when they primarily sold gaming GPUs. What margins do you think Nvidia is charging for RTX which getting more and more expensive every generation? What margins do you think Project Digits will be for Nvidia? That thing costs 50% more than a RTX card and on the RTX card Nvidia only earns on the chip which is only part of the card. Digits is a 100% Nvidia product. Does it matter if 1 Blackwell DC GPU or 13 Digits are sold? No, Nvidia has probably an insane margin on Digits and has only one goal, total spread and integration of Nvidia HW in any AI workload. Because then Nvidia can offer SW with super margins. Think of Nvidia Enterprise AI, Omniverse, Clara, Isaac, DriveSim and many more. If 95% of AI acclerators are from Nvidia then it's only a small step to also use Nvidia SW frameworks.