Chip stocks just suffered one of their ugliest stretches on record, and a political shift in Washington may be to blame. History offers a surprising clue about what happens next, but a November 17 earnings report could rewrite it.
Who’s going bankrupt? Nvidia did over 200 billion in stock buybacks and still has more money than they know what to do with. They’re preparing for the burst already, they just want everyone else to keep buying their servers in the meantime.
Nobody paying attention thinks they’ll go bankrupt. Just that demand for inference and training will subside, so those chips will find their way back into the use case from which they came.
Yeah, but when the bubble pops then all that money that was created by circlurar financing will be vanish from one second to the other. They don’t really have that money as liquid currency but it is part of a huge net of interwoven transactions between all the AI companies.
And yes, Nvidia will most likely not get bankrupt but a lot of other compaines will do, and the ones who will survive will see extremly huge losses.
The effect on the global finance market will make the Wall Street crash of 1929, the 2008 financial crisis, and all other crisis together look like a fun day in kindergarden.
Who’s going bankrupt? Nvidia did over 200 billion in stock buybacks and still has more money than they know what to do with. They’re preparing for the burst already, they just want everyone else to keep buying their servers in the meantime.
Nobody paying attention thinks they’ll go bankrupt. Just that demand for inference and training will subside, so those chips will find their way back into the use case from which they came.
Yeah, but when the bubble pops then all that money that was created by circlurar financing will be vanish from one second to the other. They don’t really have that money as liquid currency but it is part of a huge net of interwoven transactions between all the AI companies. And yes, Nvidia will most likely not get bankrupt but a lot of other compaines will do, and the ones who will survive will see extremly huge losses. The effect on the global finance market will make the Wall Street crash of 1929, the 2008 financial crisis, and all other crisis together look like a fun day in kindergarden.