MSFT
Still up for the Year.
A five year double.
“The video suggests NVIDIA profits massively from selling the picks and shovels (chips/GPUs) regardless of whether the AI “gold rush” ultimately pays off for the buyers.”
Applied Materials is selling the picks and shovels. Nvidia is selling the ore crushers, hard rock drills and lifting equipment.
Pop goes the weasel.
How about apple?!
If the latest AI models are as good as they say, they shouldn’t need as much need processing power to so the same or better work.
“Reliance on debt/leverage”
That’s not really accurate.
Over 90% of this planned spend is in the bank and belongs to the big hyperscalers.
Free cash flow minus all costs.
They are spending the money they earned from nearly everyone in the world to take the world to a new technological basis.
But nobody is quite sure what that will be.
AI…. usually ‘the juice is nor worth the squeeze’. The financial returns for the hundreds of billions invested make it frequently NOT FINANCIALLY FEASIBLE.
I have seen a few of this guys videos.
I want the bubble to hurry up a burst so I can upgrade my computers with all that cheap stuff ,LOL
I have to think part of the issue for Meta and Alphabet is the class action lawsuit in Cali regarding the addictive nature of social media. There is no way a California jury isn’t out to heavily pick some pockets.
Gasp! "It's all over for Nvidia!"
So Wall St. "experts" and financial wags have run back to their foxhole typewriters, to report that Nvidia continues to defy "the money's" desire for debt-fueled "returns" to bondholders.
And, absent fat yields from Nvidia bonds - because Nvidia is amazingly surviving with relatively little debt (when compared to, say Broadcomm <-- beloved by "the money" to the extent that AVGO's P/E ratio is much higher than NVDA's P/E ratio <-- about which Wall St. is aghast, again) . . . sure enough, NVDA is down, down, down . . . and no surprise, somewhere down there, "the money" will return to buying.
One way or another, debt-fueled or price increases, "the money" is going to get its returns.
Oh. About Cisco Systems and "the 2000 bubble burst." That occured more than 9 years after CSCO's P/E ratio was somewhere over 40 <-- a maddening number "back in the day." Never mind, back then, and now, that a going concern, produces a product in high demand, sells the product, runs to the bank to deposit the check, runs back to the shop and produces more product . . . without much need nor worry about: debt.
PS. I prefer an AI future where AI assists people. I would like to see Apple produce an AI Apple Peeler. I would like to see AI "smart" tools that prove their value, before letting loose a bunch of "street legal self-driving race cars."