• Knock_Knock_Lemmy_In@lemmy.world
      link
      fedilink
      English
      arrow-up
      19
      ·
      3 months ago

      Fall in share price, yes.

      Bankrupt, no. Their debt to Equity Ratio is 0.1455. They can pay off their $11.23 B debt with 2 months of revenue. They can certainly afford the interest payments.

    • sugar_in_your_tea@sh.itjust.works
      link
      fedilink
      English
      arrow-up
      10
      ·
      3 months ago

      I highly doubt that. If the AI bubble pops, they’ll probably be worth a lot less relative to other tech companies, but hardly bankrupt. They still have a very strong GPU business, they probably have an agreement with Nintendo on the next Switch (like they did with the OG Switch), and they could probably repurpose the AI tech in a lot of different ways, not to mention various other projects where they package GPUs into SOCs.

        • sugar_in_your_tea@sh.itjust.works
          link
          fedilink
          English
          arrow-up
          5
          ·
          3 months ago

          Sure, but their deliveries have also been incredibly large. I’d be surprised if they haven’t already made enough from previous sales to cover all existing and near-term investments into AI. The scale of the build-out by big cloud firms like Amazon, Google, and Microsoft has been absolutely incredible, and Nvidia’s only constraint has been making enough of them to sell. So even if support completely evaporates, I think they’ll be completely fine.

    • leftytighty@slrpnk.net
      link
      fedilink
      English
      arrow-up
      3
      ·
      3 months ago

      NVIDIA uses of AI technology aren’t going to pop, things like DLSS are here to stay. The value of the company and their sales are inflated by the bubble, but the core technology of NVIDIA is applicable way beyond the chat bot hype.

      Bubbles don’t mean there’s no underlying value. The dot com bubble didn’t take down the internet.