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Comment by Ologn | Hacker News Reader

Nvidia announced their earnings Wednesday night, as well as some other news, and the stock jumped about $29 (about 14%) right after the stock market opened.

https://www.google.com/finance/quote/NVDA:NASDAQ?window=5D

ChatGPT runs on Nvidia GPUs. Stable Diffusion was created on Nvidia GPUs. Nvidia said the higher than expected sales growth was due to sales to data centers, which seems more related to deep learning than crypto-mining and the like.

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Problem is, lots of players in the ML world are making their own homegrown accelerator cards. Facebook, Google (TPU), Tesla (Dojo), etc.

I think the next decade will be one of fragmented and incompatible compute platforms, with all the big companies trying to do AI-as-a-service, rather than selling accelerator cards.

The poor man without a multi-billion company behind them will end up buying NVidia kit.

Martin Skreli (yes, pharma bro) did an analysis of Nvidia recently, highlighting the importance of the data centre revenue segment to Nvidia's business. Basically they need that segment to grow and grow over the coming years, otherwise there is no real justification for their sky high P/E (crypto mining is in the toilet, many gamers already upgraded their GPUs during the pandemic, possible recession looming so fanciful overpriced GPU spending will be impacted).

https://www.youtube.com/watch?v=nn5pWp6nzKM

I’ve wanted to get into NVidia for a while as I’ve seen crypto, ai, big data being waves of interest. It’s very hard to judge an entry point though and the stock has been quite volatile.

And this is right as the economies of miniaturization are drying up. Nvidia's 40-series consumer cards have hardly any value improvement over the last generation. They're just higher priced on the same performance/cost scale. That kind of stagnation will obviously slow sales since the ROI of upgrades takes longer to go positive.

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