Technology

It’s because Nvidia is an American company and also because they make final stage products. American companies right now are all overinflated and almost none of the stocks are worth what they’re at because of foreign trading influence.

As much as people whine about inflation here, the US didn’t get hit as bad as many other countries and we recovered quickly which means that there is a lot of incentive for other countries to invest here. They pick our top movers, they invest in those. What you’re seeing is people bandwagoning onto certain stocks because the consistent gains create more consistent gains for them.

The other part is that yes, companies who make products at the end stage tend to be worth a lot more than people trading more fundamental resources or parts. This is true of almost every industry except oil.

It’s a reaction to thinking China has better AI, not thinking AI has less value.

hype isn’t based on anything tangible

So just like crypto

EDIT: The crypto bros out in full force... and right on cue proudly proclaiming they don't understand the difference between the value of blockchain technology (which so far has not had a ton of real world value outside of mostly impractical database applications, other than furthering climate change and buying drugs) vs the SPECULATIVE value of coins since coins have no real value factors to back up their SPECULATIVE value. Stocks often have real value that back up their value, like company profits or products. Stop drinking kool aid to the point of literal zero critical thinking, jfc.

Here's someone doing 200 tokens/s (for context, OpenAI doesn't usually get above 100) on... A Raspberry Pi.

Yes, the "$75-$120 micro computer the size of a credit card" Raspberry Pi.

If all these AI models can be run directly on users devices, or on extremely low end hardware, who needs large quantities of top of the line GPUs?

It requires only 5% of the same hardware that OpenAI needs to do the same thing. So that can mean less quantity of top end cards and it can also run on less powerful cards (not top of the line).

Should their models become standard or used more commonly, then nvidis sales will drop.

The way I understood it, it's much more efficient so it should require less hardware.

Nvidia will sell that hardware, an obscene amount of it, and line will go up. But it will go up slower than nvidia expected because anything other than infinite and always accelerating growth means you're not good at business.

Hm even with DeepSeek being more efficient, wouldn’t that just mean the rich corps throw the same amount of hardware at it to achieve a better result?

Only up to the point where the AI models yield value (which is already heavily speculative). If nothing else, DeepSeek makes Altman's plan for $1T in new data-centers look like overkill.

The revelation that you can get 100x gains by optimizing your code rather than throwing endless compute at your model means the value of graphics cards goes down relative to the value of PhD-tier developers. Why burn through a hundred warehouses full of cards to do what a university mathematics department can deliver in half the time?