I agree there's no low demand.
> The stock prices of 9/10 of the top S&P 500 stocks have significant AI exposure
not true.. only ~2-3% exposure at model layer. rest are at hardware layer..
> The stock prices of 9/10 of the top S&P 500 stocks have significant AI exposure
not true.. only ~2-3% exposure at model layer. rest are at hardware layer..
TSMC will still make massive bank because they're the bottleneck. That bank will be squeezed out of companies dependent on TSMC.
I still don't understand how models being commoditised implies the hardware (NVIDIA) itself being commoditised.
What is the exact mechanism that causes NVIDIA's profit to go lower?
Do you mean to suggest that the bubble popping will simultaneously commoditise models as well as inference hardware?
They are completely different layers and have almost zero correlation. I see no indication that hardware also gets commoditised.
And it's correlated with the other bubble dropping because chip cost will matter a lot more once the margin of tokens is tight.