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And what's going to happen to those hundreds of billions of investments in equipment that won't be needed until well after it has become obsolete and uneconomic

by crote 2mo ago

And what's going to happen to those hundreds of billions of investments in equipment that won't be needed until well after it has become obsolete and uneconomical to operate? What happens to the stock price of a company that missed its revenue targets by a factor of 5? Making extreme growth predictions and not realizing them is fine for small startups. Not so much when it comes to trillion-dollar companies - especially when they have taken on massive loans to pay for it. A 2x-instead-of-10x result? That's an economy-killing crash.

pu_pe 2mo ago
> What happens to the stock price of a company that missed its revenue targets by a factor of 5? It depends. Tesla is a good example of how those things are not as clear cut as you might think. The world is starving for more AI compute. Nvidia's GPUs are selling for 2x or 3x their former price, RAM prices increased even more, all because demand is huge right now. If anything buying those chips at bulk discount and then selling them right back to consumers would already be profitable.