I think the parent is overselling it when they say "AI hype has evaporated". Nvidia is still trading high because they're still selling shovels in the gold rush, and the frontier labs are still trading high as well. What is collapsing are the infra providers who are just selling commodities: even if the bubble doesn't crash they will get chewed up, because there is nothing preventing them from being forced to sell at COGS: they have no moat and eventually their margins will be driven to zero.

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petilon a day ago | parent [-]

NVDA P/E is 26. That's hardly overhyped. For comparison AAPL P/E is 38.

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drTobiasFunke a day ago | parent [-]

PE is forward looking. Apple has the business model where people will continue to buy their newer phones and devices and use their paid services at the same or higher prices for the foreseeable future.

Do you think GPUs will continue to be bought at the same rate as during the ai data center buildout gold rush era, at the same ultra high up prices?

	▲	petilon a day ago \| parent [-]
		For CPUs, Moore's law lasted more than 50 years. We don't know how long it will last for GPUs. I think Nvidia will keep improving performance, lowering power consumption and reducing heat generation for many years to come.