Nvidia Beats Earnings Expectations, Even As Bubble Concerns Mount 22
Nvidia blew past earnings expectations with soaring revenue and profit, easing fears of an AI bubble and reinforcing its position as the engine of the global AI boom. From a report: Nvidia's sales grew 62% year-over-year to $57 billion in the October quarter, ahead of the $54.9 billion Wall Street had projected, signaling that demand for AI chips remains strong even as more questions emerge about whether returns from the technology will keep up with the pace of AI infrastructure investments. It posted profits of $31.9 billion, up 65% from the year-ago quarter and also slightly above expectations.
"Blackwell sales are off the charts, and cloud GPUs are sold out," Nvidia CEO Jensen Huang said in a statement, a message that echoes his earlier arguments that fears of an AI bubble are overblown. The company also posted stronger-than-expected sales guidance of around $65 billion for the fourth quarter, another indicator that the AI spending spree isn't slowing anytime soon.
"Blackwell sales are off the charts, and cloud GPUs are sold out," Nvidia CEO Jensen Huang said in a statement, a message that echoes his earlier arguments that fears of an AI bubble are overblown. The company also posted stronger-than-expected sales guidance of around $65 billion for the fourth quarter, another indicator that the AI spending spree isn't slowing anytime soon.
Money's always been in the shovels... (Score:4, Insightful)
Not surprise, everyone is rushing to buy more and more shovels to dig for AI uses with hope that it can generate significant revenue either through layoffs or new product offerings.
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Re: Money's always been in the shovels... (Score:2)
1. Give money to openai
2. Sell them chips for the money from 1.
3. Record money in 1. As investment (cap ex) and money in 2. As sales.
4. Report stellar earnings.
5. Profit!
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BB (Score:3)
Maybe the brief (?) dip in Nvidia share price was just an AI Bubble Bobble.
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I think you maybe don't know what snake oil is.
What NV is selling isn't snake oil in the slightest. Whether or not it's really needed is an entirely different discussion.
The bubble hypothesis would have you believe that they're selling Ferraris to people at the Ford dealership.
i.e., you can complain it's all a bubble, but you can't argue with the efficacy of NV GPUs at doing this job that may or may not actually be profitable.
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Snake oil doesn't do what it's claimed to do at all. NV GPUs do, indeed, train and inference ML models very well.
It's as far from snake oil as you can get.
Debating the usefulness (or at least the profitability, if you're not an idiot) of "AI" is one thing. Claiming that GPUs are snake oil is just stupid. As stupid as saying AI isn't useful.
Don't panic (Score:2)
They're selling actual working hardware. But that hardware's value is significantly lower after 5 years, and almost zero after 10.
It will be time for all of us to prepare for a massive crash when forward markets pop up around AI hardware (think tulip mania). We're already seeing some serious red flags with businesses including their GPUs in their assets and taking loans on them.
How does any one of us survive a decade long recession? At an individual level, I don't think you can reliably do so. Ultimately pe
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The further we go down the wrong path, the bigger the correction. That's just how our economic system works, it's not centrally planned but it is manipulated by a few back actors for short-term profit. The consequence is the middle class watches their 401K get flushed down the drain.
Oh it absolutely is centrally planned, or misplanned rather. Who do you think prints the deluge of money that ends up on the stock market, pumping bubbles? Fairies? No, it's neoKeynesian morons at the FED. Who in their idiotic rush to "stimulate the economy" never once stop to think WHERE all the money they print ends up going AFTER it spins the gears of economy once or twice, tops. Well, let me tell you where it goes. It pretty much immediately ends up with someone who does NOT live a hand-to-mouth lifestyle, and who will be looking to invest it, rather than spend it. And pretty much every investment instrument you can think of already shows signs of overinvestment. Bond rates, what is happening with gold prices, crypto. And stock. If you just pump deluge of freshly printed money into stock market you get bubbles, period, it's that f-ing simple. And make no mistake, if it wasn't AI or blockchain, it'd be VR, pharma peddling their newest snake oil, newest hip startup with charismatic CEO. All that money pressure will pump SOMETHING. Where else do you think that money can go?
In the end? Into the pockets of the already uber-wealthy. The FED may not state that as their outright goal, but that's where it's going to go. And, when the economy inevitably "corrects," they'll find a way to grab great gobs of money out of the hands of the middle class to help extend that ever-escalating money mountain of the already wealthy so that they don't suffer any losses while the rest of us struggle to survive. That's always the end result of these economy-wide pump and dumps. Pump, pump, pump so
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They're selling actual working hardware.
Which means it's not snake oil.
But that hardware's value is significantly lower after 5 years, and almost zero after 10.
So is the aspirin I bought. Is it snake oil, too?
Don't look up (Score:3)
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Well, at least with climate change, lots of people and governments *are* doing something about it. EVs are exploding in popularity around the world, solar and wind farms are popping up everywhere, even in places like Texas (which, amazingly, leads the US by far in wind energy and is #2 in solar). One could argue that it's too little, too late, but it's not the same as "doing nothing."
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In most cases neither EVs nor solar are terribly climate-change-motivated, they're just cheaper than anything else. For example I have several friends who are definitely towards the Fox News end of the scale who have lots of solar and several drive EVs, nothing to do with climate change and everything to do with free power and free runtime costs for their vehicle.
If you want to see what governments are really doing about climate change, look at COP30. And COP29. And COP28. And ...
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From a climate change impact perspective, it doesn't matter what the motivation is. Technologies like solar and wind power do impact climate change, whether the motivation is money, or climate.
Re:Don't look up (Score:4, Interesting)
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what about the smarter hunters collecting all the free food at the bottom of the cliff?
That would be the oligarch level folks, waiting for their government handouts while the rest of us get hollowed out in the fall.
So... (Score:2)