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Nvidia was a strong company before the ai boom, but not massive like it is now. (I work in one of those other markets and the dominate by being cheap and their software subsidized.)
The “doom storyline” only says that the largest growth of the company goes away, or customers in some of the other markets go away (or some linear combination).
@atomicpoet
One of the troubles with this is that it's totally insane. How can nvidia GROW it's market when it's building a whole bunch of AI farms that either
a) do as intended and put millions of people out of work and use all our power and clean water, or
b) dont' work as intended and go to rust
Either way, how does investing in nvidia help?
@atomicpoet
I don’t know stonks but this makes sense to me: no one gets sticks for dividends, so earnings are not directly relevant. Future size drives stock prices. So they are saying nvidia (and adobe) are peaking, running out of market to grow to.
@atomicpoet
13% is lot. No one should expect those kinds of returns on investment year-on-year in a healthy economy. It’s larger than inflation or interest or population growth or worker earnings, or even all of those added together. What real-world value can that possibly be meaningfully related to?
@atomicpoet
They're connected, but not the same. The stock market has been doing very well for the last few years, but none of that wealth has come down to many people. Conversely, I've lived through many stock crashes which affected my life not at all.
The economy is not the market.
Anyone who has a good pension is probably richer than most people. And if you're not about to retire in the next few years, then a market dip doesn't really hurt you, assuming it recovers somehow.
But a year of two of unemployment can completely destroy you.
@atomicpoet
I don’t care about stock market crashes. Who gives a shit about what rich people own? The problem is the economy collapsing, as employers cut jobs and people can’t spend.
And that is -very- predictable, if huge investments have been made in something clearly worthless.