Nvidia Becomes World's First $5 Trillion Company
- Reference: 0179905716
- News link: https://news.slashdot.org/story/25/10/29/1426231/nvidia-becomes-worlds-first-5-trillion-company
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Nvidia chief executive Jensen Huang said Tuesday that Nvidia had secured half a trillion dollars in orders for its AI chips over the next five quarters. The stock had already gained 5% on Tuesday and added more than $200 billion to its market value. President Donald Trump said Wednesday he planned to discuss Nvidia's Blackwell chip with China's President Xi Jinping when the two leaders meet later this week. Nvidia's latest generation of graphics processing units is not currently available in China because of US export controls. The company's shares have risen more than 85% in the past six months.
Insane stock market growth (Score:3, Interesting)
I'm a "buy and hold low-cost index fund" type of guy, and have kept it up for decades. But I have never been more tempted to sell. The S&P 500 has doubled in the last 3 years. A significant part of it is just inflation, but still. The "real economy" sure hasn't doubled in 3 years, that's for sure.
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Whoever modded this offtopic - it's not offtopic. It's about high stock prices - Nvidia valued at $5,000,000,000,000? Really? It's making shareholders feel rich. But I'm skeptical we'll actually be able to turn these valuations into tangible wealth (goods and services) when the time comes.
There are two types of people in the world (Score:1)
Those that bought NVDA early, and
Those that wish they did.
That is all. Do you want to buy now? It is hard to imagine that the market cap would go to $10T but then again, $5T was pure science fiction not that long ago.
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Agreed. I didn't buy in nearly early enough, but my money is growing so that's all that matters. Even if the stock drops precipitously, I'm up far enough I'll still make out.
The next two years should be interesting to see where things go from here.
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The thing is, its all based on nonsense and hot air. Nvidia doesnt have the sales to justify the price. Eventually the market is going to correct, and on that day the market will shudder as if the very firmament was shuddering beneath the heavens.
The next stock market crash is gonna be a doozy. The smart money is on shorting NVDA and Tesla (Another company whos market cap is abusrd in comparison to actual sales)
Enjoy It While It Lasts (Score:4, Insightful)
Pride goes before destruction, and a haughty spirit before a fall.
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the AI bubble popping is going be terrible for a lot of corporations & investors
Why Pop is Slow (Score:3)
The AI bubble is probably slower to pop than the dot-com bubble because it's mostly large multi-product companies that are receiving the most investor money, and it's hard for outsiders to tell what's really happening inside. Via bundling, freebies, and multiple accounting shell games these companies can doctor their AI revenue to keep investors duped.
And if they lay off staff due to lower general revenue, they can claim it's just AI replacement. Without embedded insiders familiar with inner workings of a c
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Shed no tears for these corps and investors for the lowly taxpayer shall carry them through their dark times.
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They do.
The OpenAIs of the world are not training on 5090s.
Blood money (Score:5, Insightful)
Profited off the cryptocurrency boom. Energy wasted at the expense of the environment. Garbage "investments". Crazy schemes. Scams and frauds abound.
Profited off the AI boom. Energy wasted at the expense of the environment. Circular garbage investments. Crazy schemes. Scams and frauds abound.
Supercomputing and the masses (Score:2)
I always think it's a bit sad that, when they started, GPUs brought pretty much supercomputing power to the masses using affordable hardware, democratising compute if you could frame your problem to be solved by GPUs. Now it's swung the other way - AI model training is only possible if you're loaded and shady enough to have access to big compute/data. 2007 was such a landmark year - CUDA and smartphones - who knew that these super-cool technologies would lead to such a crap timeline with social media, crypt
It's complicated (Score:3)
Nvidia is a good company that makes quality products
The current investment frenzy seems irrational
AI shows great promise in helping us solve previously intractable problems in science, engineering, medicine, etc
AI shows great peril in enabling bad people to do bad things
AI slop is getting annoying
The assumption is that we need gigantic data centers to power the next generation of AI
The invention of a far more efficient algorithm may mean that the assumption is false
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The invention of a far more efficient algorithm, or just some credible competition in the marketplace. The class of algorithms that Nvidia dominates is unusually well-defined, and their big customers are datacenters created to run those algorithms - so, actually a relatively small number of direct customers. This is a near-monopoly that I think is not going to be durable for decades on end, like Intel was.
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You don't need to look too far to see how an improved algorithm can make a significant difference: I give you the Fast Fourier Transform.
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Good post.
> The assumption is that we need gigantic data centers to power the next generation of AI
> The invention of a far more efficient algorithm may mean that the assumption is false
Even in the case of a far more efficient algorithm, the gigantic data centers may likely be a way to create a differentiated version of AI with superior capabilities
The counterpoint would be that we may reach a threshold beyond which 'superior' has less meaning
movie coming soon (Score:3)
"had secured half a trillion dollars in orders for its AI chips " by direct investment in customers. surely that has never been a bad thing...