That’s where are in the bubble. It won’t pop until the railroad is finished. Which in terms of ai is rapid adoption of Waymo in U.S. cities.
It is the sole hardware that exists for their software programs and it is the only hardware people own that can adapt ai right now. The people buying home chargers, batteries, and EV’s was the first step of this bubble.
It’s why alphabet is the stock that’s going to hit 10t
This time around is more enmeshed in geopolitics and "national security". Washington's fear of China protects NVIDIA from overseas competition. Their dreams of robot armies give a plausible story for a backstop to a Capex binge that is otherwise clearly gluttonous.
What's not explained is how NVIDIA keeps monopoly-like margins, when Google, Microsoft, and Amazon are ready to squeeze them like a they've squeezed every other vendor. Those three remorseless competitors (especially) could care less about CUDA, in fact live by building out their own stacks at global scale. The remaining gatekeeper - TSMC - is already resentful that NVDA goes home with the money while they actually have the unique fab capability.
Cisco was much more vulnerable than Nvidia . Nvidia has an intellectual property lead that Cisco could only dream of. Routers are kind of generic, GPUs are much more customized and computer intensive. For now Nvidia is in pretty good shape 😎
Nvidia's monopoly power in this regard may be a big economic problem as their chips begin to depreciate though. I'm certainly no expert here, but you're right to say there's a big difference in how the product fits into all of this.
Nvidia sells the tools to make ai.
Carnegie sold the steel to make the railroads.
That’s where are in the bubble. It won’t pop until the railroad is finished. Which in terms of ai is rapid adoption of Waymo in U.S. cities.
It is the sole hardware that exists for their software programs and it is the only hardware people own that can adapt ai right now. The people buying home chargers, batteries, and EV’s was the first step of this bubble.
It’s why alphabet is the stock that’s going to hit 10t
This time around is more enmeshed in geopolitics and "national security". Washington's fear of China protects NVIDIA from overseas competition. Their dreams of robot armies give a plausible story for a backstop to a Capex binge that is otherwise clearly gluttonous.
What's not explained is how NVIDIA keeps monopoly-like margins, when Google, Microsoft, and Amazon are ready to squeeze them like a they've squeezed every other vendor. Those three remorseless competitors (especially) could care less about CUDA, in fact live by building out their own stacks at global scale. The remaining gatekeeper - TSMC - is already resentful that NVDA goes home with the money while they actually have the unique fab capability.
IP is still a big part of the global tech game, my friend. I'm sure all of the hyperscalers would love to get around paying for Nvidia chips.
Cisco was much more vulnerable than Nvidia . Nvidia has an intellectual property lead that Cisco could only dream of. Routers are kind of generic, GPUs are much more customized and computer intensive. For now Nvidia is in pretty good shape 😎
Nvidia's monopoly power in this regard may be a big economic problem as their chips begin to depreciate though. I'm certainly no expert here, but you're right to say there's a big difference in how the product fits into all of this.