Fordel StudiosAI mania is making Nvidia a lot of money
What Happened
AI companies are spending so much on infrastructure that Nvidia’s data center business now brings in nearly $50 billion. But is this sustainable growth or just the latest tech mania? And should we even be calling it a “bubble” when the belief in AI’s future is what’s ho
Our Take
$50B is real, but here's the problem: most of it's training, not inference. Companies are pouring billions into models nobody's actually using at scale. (We're still at the "we trained a big model" phase, not the "it's generating revenue" phase.) Nvidia benefits from the mania either way—chips are chips—but the question isn't whether Nvidia's solid, it's whether the capex is rational.
It's not. Once the easy money runs out (and it will), infrastructure spending collapses. Nvidia'll be fine—they're the house, not the gamblers. The gamblers will be fine too, eventually. But this year? This is peak delusion.
What To Do
Don't commit multi-year AI infrastructure budgets based on current hype. Revisit ROI quarterly.
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