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[–] 4 points 15 hours ago (10 children)

The stock will probably come down ya. Source they are over leveraged which could lead to bankruptcy though?

Wouldn't it be more likely that the AI companies going down on their own impacts nvidia?

They've been selling shovels in a gold rush so bankruptcy on their own seems unlikely, but an impact on the stock yes.

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  • [–] 7 points 14 hours ago (9 children)

    They've been selling shovels to retailers, and buying advertising space claiming a gold rush. The retailers are borrowing money from the marketing firm to pay for the shovels.

    Everyone bought shares in the shovel company, the retailer, and the marketing firm.

    But there's no gold, and nobody is buying shovels.

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  • [–] 2 points 13 hours ago* (8 children)

    I know the circular part, but its the AI companies that need to go under and reneg on the orders to cause the collapse of nvidia. Nvidia wont do it on their own. And they are in fact selling an exceptional amount of shovels.

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  • [–] 3 points 13 hours ago (3 children)

    And they are in fact selling an exceptional amount of shovels.

    To the retailers. They are selling wholesale to the retailers, on credit. They are lending, with extra steps.

    Customers aren't buying enough shovels to service even the interest on these debts. The retailers are not bringing in anywhere near the revenue necessary to make this process sustainable.

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  • [–] 2 points 11 hours ago (2 children)

    Any sources that nvidia is giving them the GPUs on credit and not the AI companies using credit to give nvidia cash?

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  • [–] 3 points 11 hours ago (1 child)

    Here you go, pal

    "Nvidia’s equity investments stood at $99 billion as of July 26, up sharply from a year earlier as it expands its financial backing across the AI sector.

    Investments span frontier AI labs, cloud providers and infrastructure companies, including OpenAI, CoreWeave and Nebius.

    Capital has increasingly become a key play for Nvidia.

    In August, the company announced partnerships with major investment firms aimed at mobilizing more than $500 billion worth of financing for Nvidia’s graphics processing units (GPUs) and said it would provide up to $105 billion of conditional credit support for an OpenAI data center in Ohio. Nvidia also announced Thursday it is planning to acquire AI startup Hugging Face for $12.9 billion."

    They are buying up shares all over the AI sector, which is essentially Nv lending them money, with which these companies can buy their GPUs.

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  • [–] 1 point 12 hours ago (3 children)

    Don't forget the crypto bros who mine with GPUs are willing to snap up anything the AI datacenters haven't nailed down.

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  • [–] 2 points 11 hours ago (2 children)

    Are these AI gpus even good at crypto mining? Definitely not cost benefit wise if they were retail price, but maybe clearance prices?

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  • [–] 1 point 11 hours ago* (1 child)

    Yes, GPUs are quite good at crypto mining.

    Crypto was the original reason behind GPU shortages and resulting skyrocketing prices from years ago.

    TBF, GPUs have been overshadowed by low-overhead ASIC chips for crypto mining, but I'm sure some would grab discounted GPUs for mining in a heartbeat.

    Oh, and there's always the Chinese market for smuggled nVidia GPUs too.

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