Nvidia’s Stock Market Value Rose $276 Billion in a Day. Here’s How It Got There in Five Charts.

I am old enough to remember the bursting of the 2000 bubble.

1999: Yahoo! was making tons of money selling advertising on its Web “yellow pages.”

Many entrepreneurs wanted to rush for the internet advertising bonanza. They made companies, even well-funded ones, to participate in the new gold rush of selling online advertising.

To make themselves known, they advertised themselves. Where ? obviously on the most popular destination: Yahoo! whose revenues were growing. And other companies were starting, etc. etc.

Then many of these new players ran out of money and started to fold. And Yahoo!  revenues decliend, and doubts arose and companies, etc. etc.

Poof! the bubble burst.

Then the “yellow pages” of the web weren’t enough anymore; whoever made the best search engine won.

It is too early to tell who will win from AI.
At this stage, Nvidia and the hosters. And later on ?

If the models get small and end up on PCs, which will go back to costing 3000 euros, maybe Apple…

Nvidia, is investing to push in this direction. This release is a clear confirmation. ( it gives away something that goes against the market of its current customers who buy cards to put in servers…). it is not the only one. (Also Mistral, BTW).

But some time will pass between now and the time when we get to the “model in every PC”. Not a few months.

In the meantime, with high interest rates, money that is no longer free, and the consequent difficulty of making later rounds at increasingly mind-blowing valuations, companies are starting to fold  and trying to consolidate to save some money and lengthen their runway.

When the bubble bursts, for nvidia, in some ways, it risks being worse than what happened to Yahoo!: advertising inventory sold on Yahoo! was sold:, Listings made in the past have been made …in the past. For nvidia, it is reasonable to expect that as companies fold, used hardware will be put back into circulation in the market, lowering volumes and prices. And in the meantime AMD is coming …

To sum up, in the short term those who sold nvidia for more than they bought it, rejoice. In the medium term – in my opinion – many will suffer.

Source: The Wall Street Journal

Nvidia added more than $276 billion in market value Thursday, more than any company has in a single day. The move highlights how dramatically the chip maker has grown—and how powerfully investors expect it to keep performing.

Source: Nvidia’s Stock Market Value Rose $276 Billion in a Day. Here’s How It Got There in Five Charts. – WSJ

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