Well nVidia just sells the hardware to the AI companies, so even if the bubble pops, they won’t go bankrupt. They will stop making such obscene amounts of money, but they’re one (also the largest) of the 3 major GPU vendors. Personal computing still would buy from them, as would non-AI datacenters. He wants to keep the bubble going for as long as possible to boost their profits for as long as he can, but as long as people need graphical rendering and parallel compute power, I don’t think nVidia is going anywhere.
Think of them as the guy selling prospectors their tools. They hype everything up and jack up their prices for picks and shovels. When the prospectors don’t find any gold to make their investment back, the shovel guy just goes back to selling shovels at normal rates and prices. Sure, he’s not making as much profit, but he’s still solidly in business.
And even more billions invested in other AI companies. Because the AI companies can’t afford to buy what Nvidia is selling at the price.
This means Nvidia “owns” a bunch of those AI companies, and can take loans out on the valuation…
If AI goes bankrupt, all those investments are worthless, which means banks call in the loans that used it as collateral. It could easily wipe out Nvidia.
It’s not just one surface level thing, even tho that’s all you seem to have thought of. You’re worried about a couple hundred million in sales like it’s not sitting next to 100 billion dollar loan.
Well nVidia just sells the hardware to the AI companies, so even if the bubble pops, they won’t go bankrupt. They will stop making such obscene amounts of money, but they’re one (also the largest) of the 3 major GPU vendors. Personal computing still would buy from them, as would non-AI datacenters. He wants to keep the bubble going for as long as possible to boost their profits for as long as he can, but as long as people need graphical rendering and parallel compute power, I don’t think nVidia is going anywhere.
Think of them as the guy selling prospectors their tools. They hype everything up and jack up their prices for picks and shovels. When the prospectors don’t find any gold to make their investment back, the shovel guy just goes back to selling shovels at normal rates and prices. Sure, he’s not making as much profit, but he’s still solidly in business.
Except all those companies are in an investor circle jerk with each other…
If AI bursts it doesn’t just hurt nvidia’s sales of products used by AI.
Nvidia has over $100 billion invested in OpenAI:
https://www.cnbc.com/2025/09/26/nvidias-investment-portfolio.html
And even more billions invested in other AI companies. Because the AI companies can’t afford to buy what Nvidia is selling at the price.
This means Nvidia “owns” a bunch of those AI companies, and can take loans out on the valuation…
If AI goes bankrupt, all those investments are worthless, which means banks call in the loans that used it as collateral. It could easily wipe out Nvidia.
It’s not just one surface level thing, even tho that’s all you seem to have thought of. You’re worried about a couple hundred million in sales like it’s not sitting next to 100 billion dollar loan.
Like bro, come on man…
Would just get classified as “too big to fall” and bankrolled by the government, cause you know, market.