it really doesn’t matter, if nvidia pops hard it would almost certainly take the rest of the market with it, just on the basis of that being such a bearish leading signal on the market enthusiasm for AI. Nvidia popping would mean the AI party is over and a gut blow to the tech market as a whole.
this isn’t to say a down quarter that’s 25% down or whatever would be fatal. Obviously it’s going to have to correct a little at some point etc. Or if everyone else is obviously doing fine and it’s some nvidia-specific thing. But if Jensen got on the phone and said they were down 75% in next quarter orders on the basis of secular market trends and expected further cancellations, the tech market as a whole would probably crumple.
Most of the gpus nvidia sells aren’t DGX, they’re going into dell or HP or supermicro servers. Even the ones that aren’t officially partnered benefit from this ecosystem momentum etc. AI buildout has sold a lot of computers, a lot of memory, a lot of racks and networking and optics and electrical, etc.
As what is still functionally the only company making money on gpgpu sales right now, and with them functionally being near-100% datacenter and related (automotive etc) they are a massive leading signal on where the market is headed. The next best one is like… powercolor (TUL Corp).
(and nvidia conveniently does break it out anyway, but a lot of companies like AMD tend to submerge it in another group to deliberately make the revenue difficult to break out.)
this isn’t to say a down quarter that’s 25% down or whatever would be fatal. Obviously it’s going to have to correct a little at some point etc. Or if everyone else is obviously doing fine and it’s some nvidia-specific thing. But if Jensen got on the phone and said they were down 75% in next quarter orders on the basis of secular market trends and expected further cancellations, the tech market as a whole would probably crumple.
Most of the gpus nvidia sells aren’t DGX, they’re going into dell or HP or supermicro servers. Even the ones that aren’t officially partnered benefit from this ecosystem momentum etc. AI buildout has sold a lot of computers, a lot of memory, a lot of racks and networking and optics and electrical, etc.
As what is still functionally the only company making money on gpgpu sales right now, and with them functionally being near-100% datacenter and related (automotive etc) they are a massive leading signal on where the market is headed. The next best one is like… powercolor (TUL Corp).
(and nvidia conveniently does break it out anyway, but a lot of companies like AMD tend to submerge it in another group to deliberately make the revenue difficult to break out.)