Nvidia's Plans To HUMILIATE The Entire AI Industry Has Only Just Begun!

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Nvidia's Plans To HUMILIATE The Entire AI Industry Has Only Just Begun!

Think about companies like Adobe, Salesforce, SAP, and ServiceNow. Their performance, along with their customer bases, is crucial. If these companies start to see a drop in earnings or growth, it could be a warning sign for the AI sector that Nvidia is helping to build. Keeping an eye on these trends helps us understand if the growth we're seeing is solid or if we're heading towards a potential overvaluation like we saw in the past.

In today's fast-changing tech world, it looks like public clouds are taking over, with big companies fighting for dominance. But there's more to the story. The move toward enterprise solutions is opening up new possibilities. Companies like VMware, now part of Broadcom, along with Red Hat, IBM’s software divisions, and HP’s tech products, have a lot to gain from the growing infrastructure. This isn't just a short-term boost but something that could keep benefiting these companies for years.

Think of this strategy as a gift that keeps on giving. If Nvidia and its partners can pull off their plans, businesses could see huge benefits. This could happen by using services from well-known enterprise SaaS providers or by creating their own new solutions. This chance points to a possible golden age of growth and innovation that could last five to ten years, maybe avoiding the usual tech industry slumps.

[CBSalsberg]

Most of NVDA's revenue comes from customers who are training larger and larger Large Language Models. As the models increase in size, the cost increases. If these larger models don't achieve the Holy Grails of AGI and Super intelligence, there is little reason to continue spending more and more for larger and larger. If this spending is curtailed, NVDA's revenue will fall dramatically along with the stock price. NVDA has a lot to contribute to AI development, but most of its capabilities contribute a small part of the total revenue. The revenue, the profit, and the price are attached to their customer's Large Language Model training. When customers accept that the Holy Grails are pipe dreams, NVDA revenue could fall 50%, the stock price 90%!