While the first-order analysis seems true to me, there are mitigating factors:
AMD appears to be bungling on their GPUs being reliable and fast, and probably will for another few years. (At least, this is my takeaway from following the TinyGrad saga on Twitter...) Their stock is not valued as it should be for a serious contender with good fundamentals, and I think this may stay the case for a while, if not forever if things are worse than I realize.
NVIDIA will probably have very-in-demand chips for at least another chip generation due to various inertias.
There aren’t many good-looking places for the large amount of money that wants to be long AI to go right now, and this will probably inflate prices for still a while across the board, in proportion to how relevant-seeming the stock is. NVDA rates very highly on this one.
So from my viewpoint I would caution against being short NVIDIA, at least in the short term.
While the first-order analysis seems true to me, there are mitigating factors:
AMD appears to be bungling on their GPUs being reliable and fast, and probably will for another few years. (At least, this is my takeaway from following the TinyGrad saga on Twitter...) Their stock is not valued as it should be for a serious contender with good fundamentals, and I think this may stay the case for a while, if not forever if things are worse than I realize.
NVIDIA will probably have very-in-demand chips for at least another chip generation due to various inertias.
There aren’t many good-looking places for the large amount of money that wants to be long AI to go right now, and this will probably inflate prices for still a while across the board, in proportion to how relevant-seeming the stock is. NVDA rates very highly on this one.
So from my viewpoint I would caution against being short NVIDIA, at least in the short term.