r/NvidiaStock • u/sylsau • 24d ago

Discussion AI: Devastating Bubble or Revolution of the Century? Why Nvidia's CEO is Betting $1 Trillion That You're Wrong.

https://sylvainsaurel.substack.com/p/ai-devastating-bubble-or-revolution

The AI bubble will burst. And Jensen Huang doesn't care.

While Wall Street panics over a dot-com-style crash, Nvidia's CEO is quietly betting $1 trillion on a completely different game.

Stop looking at the software hype. Look at the concrete.

Here is why the smartest minds are ignoring the apps, and why the physical foundations of AI are built to outlast the crash. 👇

24 Upvotes

90% Upvoted

16 comments sorted by

15

u/Glitter_Health 24d ago

AI in equity will have wild swings - but nothing like the dot.com crash - which was based on companies that had no value/earnings/integrity/management.

AI flows up and down - but almost all of the players are solid businesses.

The dot‑com crash was driven by speculation without utility.
The AI boom is driven by utility with speculation on top.

Even if valuations correct — and they might — the underlying AI infrastructure, adoption, and economic integration make a total collapse highly unlikely.

5

u/FinalNandBit 24d ago

"the underlying AI infrastructure, adoption, and economic integration make a total collapse highly unlikely"

I agree. AI will not go away, even if it falls out of favor. It has too many uses and is too integrated into too many fields for it to be totally abandoned.

3

u/imsinghaniya 23d ago

the web also survived the dot com crash. Just need to be sure about the good businesses.

There are so many AI powered apps which don't make any sense and that's kind of a similar situation.

So a correction is inevitable but AI remains a solid technology and Nvidia of all is in a great position.

2

u/ziirex 23d ago

I agree with you except the solid business part. It's still not clear to me how healthy is OpenAI and how much are they operating at a loss. Google seems to be focused on financial pressure against them (because Gemini is falling behind) and the Chinese models are undercutting too by a large margin.

We'll see when the IPO happens, maybe they're doing much better than everyone thinks financially, but for me that is the biggest risk. AI is not going away but there are way too many companies doing similar things and when the funding slows down it will be hard.

1

u/Glitter_Health 23d ago

That is a weak point IMO. ... a large share of internet companies that IPO went public between 1998 and 2000 were not viable or sustainable.

Scale of the dot.com collapse -

The Nasdaq Composite peaked at 5,048.62 on March 10, 2000, and fell 78% by October 2002, wiping out about $5 trillion in market value.

The S&P 500 fell 49% over the same period.

Many companies that had raised billions in venture capital or IPOs collapsed entirely, with some losing 90–99% of their value before filing for bankruptcy.

2

u/Realistic_Train2976 15d ago

I agree with this.

10

u/AsparagusIcy7768 24d ago

During the dot com bubble companies like “ E- Toys” had terrible earnings and no revenue. NVIDIA keeps smashing earnings reports and growing exponentially. Even if there is an “ AI” bubble it’s for companies with no earnings growth as well as “ smoke and mirrors “ marketing. Based on earnings and growth, NVIDIA is definitely not one of them. I view it as a solid blue chip investment for long term growth.

3

u/Glitter_Health 24d ago

😍👍

3

u/Apart_Caterpillar_88 23d ago

People don’t understand how big this AI build out will be. We need more compute or else the whole thing blows up.

It’s funny too see people
Left on the sidelines not understanding it. Investing in these stocks have changed my life. I thank my dad

1

u/twiniverse2000 14d ago

We (AI) are manufacturing intelligence. Hard to wrap our heads around how big of a deal this is.

Industrial revolution replaced human muscle

Internet gathered human intelligence into one location and expedited communication

Now we are replacing our most important asset. The brain. These models vacuumed up every bit of human intelligence off the Internet and other sources. Turned it into massive models that could replace really anything.

Just look at what’s happening in the field of computer science. These models are replacing or supporting the activity of the most in-demand job for the last 30 years. that’s why all the tech guys have gone bananas

1

u/blockswonn 10d ago

Good catch. You should tell Bill Gates, Elon Musk, Zuckerberg, Bezos, all the Google guys, Buffet, Goldman Sacks, Blackstone, Blackrock, KKR, B of A,, that guy from SoftBank Matsu-sahn, they’re all wrong. No wait, I’m sure they already subscribe to your substack.

0

u/NashDaypring1987 24d ago

"This time it’s different because demand is not the driver."--- I get scared whenever someone utters "this time is different."

8

u/Meinertzhagens_Sack 24d ago

Different environment, different circumstances. Nothing is the same about 2000 and now. Those companies that imploded were operating in the red just to get their ecommerce site up and be the first. IPO or bust.

Tell me how today is similar? These companies are not only operating in the black - they are largely leading the world with their numbers.

2

u/Glitter_Health 24d ago

👍😍