NVDA
I'm having mixed feelings about NVDA. I was going to say semi cond. stocks in general but specifically NVDA. The majority of their revenue is from chips for AI.
AI is barely even a profitable practice right now (unless I'm wrong). If I am right, companies are stacking up their Capex for these great NVDA chips but when will they actually become profitable as a service itself. AI is essentially just SaaS. I feel like the price that NVDA is at and all the AI hype is making the market a bit unstable. any political issues like trump talking about not helping Taiwan in the case of a war and TSMC (the major supplier for NVDA) would be in trouble, and ofc because of that NVDA would be in big big trouble. Competition between chip manufacturers is also rly hard rn because the Capex to produce chips of such quality are so expensive and drain R&D.
we also don't have a lot of legislature built for AI and the restrictions on what can be done with AI. If we're being honest it has to be controlled or everyones jobs WILL be taken. This is not like the initial robots we saw and thought would take our jobs. We're talking about a protocol that can make decisions for itself, compute probabilities and analyse the best course of action in seconds.
If heavy rules are put on AI it might just be limited to a gimic or something that'll be used by kids in 10 years like we used smartart in presentations.
I could be completely wrong and missing a lot of info but I'd love to hear what everyone has to say.
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Greg Hagy : probably near 120 today
Greg Hagy : buy now!
Capoo : Hmm, ok, Nvidia don't have anything wrong with their company, Nvidia leads the US stock market, Nvidia is the largest holding of all kinds of ETF, Nvidia is the head, if you can't make money off the highest turnover rate stock, you can't make money off other stock, you are here to make money.
JoeyJoe112 OP Capoo : 100% agree. They are doing great stuff. I'm concerned about how long this performance will last and the AI market itself. NVDA has become very dependent on the demand and hype around AI for its exceptional performance. Thanks for your input!
GreenHermes : Regardless ai profitable or not, near term or mid term, the IT spending can only be mounted up. During the course of it, NVDA might loosen up its dominating position, but for foreseeable future, it remains in that position strongly.
GreenHermes : AI is a revolutionary technology, I only come to realize it lately. Nobody can stop it.
Greg Hagy : also buy LUMN now
Greg Hagy : it will hit 6 today
FinanceGuru : lol I say going 6% backwards tomorrow
JGPM : remember when $META briefly hit 90$ ...![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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