Nvidia Allegedly Engineered Scarcity by Funding AI Startups to Buy Its GPUs

Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by socialcommenter on Saturday November 14, 2026 @03:43AM (#50495259)

They have been reinvesting all their inflated profits into more of these deals, at increasingly uneconomic valuations. That already makes it Ponzi-like.

It doesn't make recurring revenue, either. Not without fresh cash infusions into all the startups.

Largely means P/E is a useless metric here, investors don't get to see their short term net profits, and even if they do see it, those don't extrapolate to future years/decades.

We've got a lot of investors out there not thinking about this with a level head, they just see %%% growth and a "low" P/E.

[ Parent | on HN ]

Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by s1artibartfast on Saturday November 14, 2026 @03:13PM (#50500359)

sounds like a personal problem for dumb investors. Im not sure why people expect business operations should come second to protecting low information ivestors.

I know people that dont even know what P/E or market cap means but purchase stocks based on ticker price. They think <$100 means a good deal for a big company. Should stock splits be forbidden to protect them?

[ Parent | on HN ]