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Comment by rafaelero | Hacker News Reader

How dumb can you be to short the company that has basically a monopoly over AI infrastructure? These folks are probably AI skeptic and they are having a reality check right now.

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I wouldn’t do it, but the price to earnings ratio is around 170 for Nvidia and 26 for Alphabet so you could argue that the AI revolution is already priced in for a considerable time, especially if companies starts to use TPUs on cloud providers or if AMD actually pretends to be in the space.

The short answer is its PE Ratio is obscene (even more so today), and last quarter the ER was kind of “doom and gloom” not just for NVDA but AMD, DELL, HPE, etc.

NVDA is the new TSLA, regardless of how their business doing great

I’m out of touch on the GPU market. Is AMD/ATI competitive these days? Are there any other noteworthy players?

AMD GPUs are not as good as Nvidia's. The other issue that AMD and any other competitor has to face is that much of the new AI software uses CUDA, which as far as I know is limited to Nvidia hardware only.

ATI hasn't existed as a brand since 2010. Every GPU since then has had AMD branding.

Typically, AMD GPUs have a slight edge over NVIDIA GPUs in the price/performance metric, but NVIDIA simply offers higher performance options overall.

But NVIDIA cards also absolutely demolish AMD in compute power needed for AI.

Even if an AI skeptic has good reason to be right, I can't imagine a scenario where the AI bubble collapses so quickly. If it's a bubble, seems like the beginning of one.

If Intel can figure out GPUs(admittedly a big if) nvda is fucked. AMD less so because they're still reliant on expensive TSMC fabs. There are tons of reasons to believe nvda will not retain its monopoly on the data center and they need to if they're going to 10x earnings which is what the current price is predicting.

Or they’re true AI believers, and believe AI assisted chip design will erode NVIDIA’s edge

Whether they are right or wrong we will now in next years

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