And it's not just GPUs that Nvidia has; it can lay down the entire infrastructure of a data center , which Jensen kindly reminded everyone of: "From the moment you secure the capacity, we’re gonna be able to stand up an entire factory for you. We’re the only company in the world that can come into your company and help you stand up an entire AI factory."
These comments are more specific than broad strokes about how the prevailing component shortages are actually beneficial to the trillion-dollar corporation. But the thing is, AI eating up all the production lines affects everyone else, too, like gamers, who are now left with triple-priced memory and storage. GPUs are getting more expensive as well, and the AI boom is showing no signs of slowing down .
"You know, if you set up a factory, a plant, a DRAM plant, and I come in and say, “You know what? Go ahead and set up the DRAM plant because I’m gonna use it,” that goes a long way. You might as well take that to the bank, as many of them have. I think the fact that everything is scarce is fantastic for us." That last line might be particularly irksome because it's so disconnected from what the average person is experiencing .
Gaming accounts for only 8-9% of Nvidia's total revenue, with data centers by far the largest contributor, so it's no surprise the company is happy to sell the AGI dream. Enthusiasts going bankrupt thanks to their next RAM purchase is not Nvidia's concern.
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Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/tech-industry/artificial-intelligence/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/artificial-intelligence/nvidia-ceo-huang-declares-i-love-constraints-amid-ongoing-component-shortage-claims-lack-of-options-forces-ai-clients-to-only-choose-the-very-best#main
- https://www.tomshardware.com
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- Leading Inference Providers Cut AI Costs by up to 10x With Open Source Models on NVIDIA Blackwell
- Valve changes Steam Machine release date to this 'year,' second change as AI-fueled memory and shortage crisis deepens — official announcements went from "early
- [Daily Due Diligence] NVDA NVDA
Informational only. No financial advice. Do your own research.