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Comment by InkCanon | Hacker News Reader

People here quoting Jevons paradox are grossly misapplying it. Jevons paradox will predict an increase in usage of compute for AI. Not Nvidia specifically. The specific insane valuation of Nvidia comes from an unending stream of hundreds in billions in big tech capex, constantly buying cutting edge GPUs, because on SV scaling laws are practically religious commandments. It remains to be seen how this affects Nvidia, but it is not a case of Nvidia like many posts here imply, business wise.

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Except there has yet to be a breakthrough on anything that isn’t Nvidia, using anything that isn’t cuda/nccl etc

That day is certainly coming, but today is not that day

These are all NVDA owners coping, they dont want rational thoughts. The hit in market cap is absolutely deserved, especially now with the threat of tarrifs.

NVDA has an exceptionally reasonable P/E ratio and is a great pick on fundamentals alone. The tariffs are not going to make other graphics cards + their software 2x better.

pure cope. Hyperscalers already have a ton of gpus who just got 90% more efficient. They will absolutely reduce spend especially once the tariffs hit lol

from non-investor perspective it's a long awaited sign of eventual profitability in the money pit and 10x sales potential. Not trying to debunk you, to me it's just proof as to how unrelated tech and market worlds are

except that deepseek r1 isnt a gigantic leap in terms of actual intelligence. These models still have questionable use, I have no doubt that more people will want to use them now but its not going to compensate for how much more efficient they are now. Not even close.

Do you think that the data centers which have already been built are sitting idle, and that's why people are tripping over themselves to spin up new ones?

It's an objective fact that many people find these things useful. Whether or not they're willing to PAY is another issue.

I mean nobody can pretend that this level of investment will continue forever, but even before the LLM hype NVIDIA was printing cash.

Isn't CUDA a pretty good moat for Nvidia?

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