recently brought back Sam Altman into OpenAI and has Altman leading Microsoft's AI Research team. $GOOGL
is designing its own AI chips and having Anthropic rely on them. $AMZN
has designed its own datacenter chip a few years ago and that chip continues to power AWS and Anthropic today.
ignited the trend of companies designing their own chips and having TSMC produce them directly with the Macbook M1 chip, what other chips can Nvidia design to conquer another niche ahead of time before Big Tech giants start designing their own chips for that niche once again? With China, the second largest market for Nvidia, being blocked off one step at a time due to geopolitical issues, where will Nvidia find a major source of revenues? Crypto mining was once a big trend that fueled Nvidia chip sales but with the severity of the recent crypto crash and the environment scrutiny of crypto, Nvidia can't rely on crypto's rebound to boost chip sales.
When you see charts like this from TrendSpider showing, from a log scale, the rising channel of Nvidia's stock, you find that the upside for the stock is very limited and the downsides are huge. When analyzing the financials of Nvidia, you see their sales growth being very impressive. Market gurus both in the retail and institutional front will say it's a justifiable reason for why Nvidia is "undervalued".
Funny enough, people were once saying that about $ZM
during 2020 when COVID brought huge revenue growth to the business. Today, Zoom has plunged badly. So badly that IPO investors are probably underwater on their investment.
It wouldn't surprise me if Nvidia falls as badly as Zoom.