Nvidia is slowly becoming the IBM of the AI era' says Jim Keller, perhaps forgetting how short-lived IBM's PC monopoly was https://www.pcgamer.com/hardware/gr...getting-how-short-lived-ibms-pc-monopoly-was/ Remember when ivm ruled, guess most do not remember but yes at one time imb was the untouched leader of the tech world. Dominating anything and everything.....but then that all came to an end........
They were taken out by Microsoft, and MSFT is still going strong after 50 years So is AAPL. Both MSFT & AAPL still at the top even after going through long slumps. But when IBM lost ground, they never recovered the top spot. Bad management i guess.
IBM never really had a stronghold on PCs, I mean they could have but their management was still too dependent on mainframes. Now Mainframes is a better analogy to nVidia's AI/graphics chips. They were the king for a long time but when 3Com (networking) & Compaq (small computing aka "laptops") came out with their products that was the beginning of the end of Mainframes. Similar to Xerox and its addiction to all things paper & copiers instead of focusing on the future which was all the discoveries going on in their Palo Alto Research Center (Xerox PARC) like Object Oriented Programming, Networking, Graphics User Interface, Graphics manipulation, etc. I believe Windows, XWindows & Macintosh GUIs were all based on the work at PARC along with Networking (3Com) & Raster/Graphics manipulation (Adobe).
so I know this guy who is a VP at NVDA... he has his entire life savings in NVDA and it is over $50Million.. when I tried to talk to him about taking some profit and even putting some in SPY and QQQ for diversification,, you would have thought I said he needed to sacrifice his child to death. Total crazy like stuff... like "it is never going down" talk...
I do not get people like that. You get that much money, you take some off the table and make sure you and your family are taken care of. I knew a guy who had collected lots of stock in a fortune 500 company over his career. He had to plan his retirement around how their stock was doing. If you're in a corporate stock plan you need to regularly sell to limit your concentration of risk. You might believe in what your company is doing 1000% but it's just the prudent thing to do. Even if you're regularly selling, you might have years worth of deferred compensation tied up. Isn't that enough risk?
NVDA actually remind me of CSCO in 1999-2002. It was a can't miss internet stock, the main engine that was driving internet build-out, just like NVDA for AI. In 2000 CSCO was around $80 and had a market cap of over $600 B and a PE over 100. It was the most valuable company in the world by a mile.
+/-12.5% cost savings on raw material, with no trade-off in strength for the downward force vector in the Y axis.