Really appreciate the reply and knowledge @Cameron thanks for this.
If were to draw an investing lesson from this then data centres would be the natural home for most AI compute to be done, which means either a price war or one of the big tech players will scoop up the contracts.
retail investors pumping trillion dollar companies? hmmmā¦
nancy doesnt miss
Not saying itās totally down to that, just a contributing factor.
The Dean of Valuation weighs in:
As a bizarre coincidence Hock Tan was basically asked the same question on the Broadcom earnings call yesterday:
Thank you very much. Hock, that was a perfect segue into my question. Youāve said in the past calls that you thought that AI compute would move away from ASICs and go to merchant market. But it looks like the trend is kind of heading the other way. Are you still the opinion that thatās going to be the long-term trend of this?
And secondly, as you just pointed out, power is becoming the defining factor for deployment with all the big guys at this point. And given the performance per watt of the ASICs over GPUs, which is superior to GPUs, why shouldnāt we see more of these guys moving to custom ASICs?
Youāre right, and youāre correct in pointing out to me that, hey, I used to think that general purpose merchant silicon will win at the end of the day. Well, based on history of semiconductors mostly so far, general purpose merchant silicon tends to win. But like you, I flipped in my view. And I did that, by the way, last quarter, maybe even six months ago. But nonetheless, catching up is good.
And I actually think so, because I actually think there are two markets here on AI accelerators. Thereās one market for enterprises of the world, and none of these enterprises are incapable nor have the financial resources or interest to create the silicon ā the custom silicon, nor the large language models or the software and going maybe to be able to run those AI workloads on custom silicon. Itās too much, and thereās no reason for them to do it, because itās just too expensive to do it.
But there are those few cloud guys, hyperscalers with the scale of the platform and the financial wherewithal for them to make it totally rational, economically rational, to create their own custom accelerators, because itās all ā right now, not going to ā not trying to emphasize it, itās all about compute engines. Itās all about especially training those large language models and enabling it on your platform. Itās all about constraint, to a large part, about GPUs.
Seriously, it came to a point where GPUs are more important than engineers ā these hyperscalers in terms of how they think. Those GPUs are much more ā or XPUs are much more important. And if thatās the case, what better thing to do than bring it under the control of their own destiny by creating your own custom silicon accelerators. And thatās what Iām seeing all of them do. Itās just doing it at different rates and do ā and theyāre starting at different times, but they all have started.
And obviously, it takes time to get there. But theyāre all ā a lot of them, there are a lot of learning in the process versus what the biggest guy of them who has done longest have been doing for seven years. Others are trying to catch up, and it takes time. Iām not saying theyāll take seven years. I think theyāll be accelerated, but it will still take some time step by the time to get there.
But those few hyperscalers platform guys will create their own if they havenāt already done it and start to train them on their large language models. And that is, yeah, youāre right; they will on go in that direction totally into ASIC or, as we call it, XPUs, custom silicon. Meanwhile, thereās still a market for in enterprise for merchant silicon.
Itās on a good run again !
I bought back into NVDA during Augustās lull.
Previously, Iāve gotten jittery about valuation and sold but this time Iām holding on for dear life.
Likewise. I think if you averaged in at the low $100 or below that we should be fine, but I see there being a lot of volatility. Enjoy the rollercoaster 
Yeah, about $100 which Iām happy with. Iāve rejigged my strategy in the past few years, beefing up my passive holding to 90% of my portfolio.
Itās made it far easier to buy expensive and/or volatile stocks and just let them run. I donāt care so much if a stockās down 30% or massively overvalued as the risks arenāt nearly as great.
It scratches an itch and reduces the opportunity cost of monitoring holdings closely. Instead, I can focus on true long-term investing rather than get caught up in all the daily/quarterly noise.
Thatās a great strategy and Iām actually doing something similar, although trying to increase my passive funds to a slightly higher percentage 
Dont own NVDA and dont know how true this isā¦but i like the story.
A close look at the data suggests long-term investors who buy Nvidia stock at recent prices are unlikely to get the returns theyāre expecting.
What are people guessing will happen to the stock post earnings later today? We are either going to see a healthy increase, or a substantial pullback and some buying opportunities!
Been steady today hasnāt it ! No leaks over there
It dropped on earnings last quarter, so why not the same? Has Blackwell really added more growth than say the last quarter?
To be fair, I think it fell last quarter because of Blackwell guidance, so the run up to $140+ might be because the market expects similar growth with better guidance, therefore it could need blisteringly good guidance to go higher from here?
But then you have the relief rally effect that everything AI is still all good with capex being spent on Blackwell as expected.
All fun and games, not invested here bar through a tracker.
My prediction is down after hours, due to IMO sky high expectations (as proved by the recent run up to $140+).
Iām really glad that I took a position in this company as this stock has done very well so far, This along with the 6 other Stocks that I call My Magnificent 7 are added to and held for the next at least 5 years maybe 10.
The others are smaller Holdings some penny stocks and 3 ETFs so all in all I feel i have a balanced Portfolio with 5 of the top players. I would be interested to know your views.