The people selling the shovels made more money than the miners during the gold rush. It’s the same thing here. If you want to do AI at any sort of scale, Nvidia is really your only choice because AMD and Intel sat on their hands for so long.
It is a shock, but at least they received their money without being left holding the bag. They have a committed backlog over a year long, they seem to be avoiding manufacturing more than they have already sold …
That’s the trick, people will always want shovels. Even after the gold rush ends, the only difference is demand for shovels goes back to normal, it doesn’t disappear.
When the AI bubble burst, they’ve already made their cash selling shovels (being very anticompetitive) and walk away. Their startup competitors wither, and they are set for the next “thing.”
How is Nvidia so high up the chart?
The people selling the shovels made more money than the miners during the gold rush. It’s the same thing here. If you want to do AI at any sort of scale, Nvidia is really your only choice because AMD and Intel sat on their hands for so long.
Ahh, right.
There are some legit use cases for AI, so they will no doubt make a decent amount of money in the future from it.
All the profit, zero risk. Selling shovels is always better.
Except when no one wants shovels anymore.
It is a shock, but at least they received their money without being left holding the bag. They have a committed backlog over a year long, they seem to be avoiding manufacturing more than they have already sold …
That’s the trick, people will always want shovels. Even after the gold rush ends, the only difference is demand for shovels goes back to normal, it doesn’t disappear.
When the AI bubble burst, they’ve already made their cash selling shovels (being very anticompetitive) and walk away. Their startup competitors wither, and they are set for the next “thing.”
Ai bubble