NVDA's high growth claims are marketing-driven; reliance on circular financing creates systemic risk to the AI trade.
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Nvidia to keep on the growth will invest 99 billion into other businesses so that the businesses have the backing of Nvidia can borrow more money because it's backed by Nvidia and buy more of Nvidia chips.
Without this, Nvidia would not grow as fast and perhaps the whole house of AI cards would revert.
can Nvidia double? Hm. Yes, it can. But then it would be 11 trillion. Okay, they say they are going to grow 70%. However, this is in my opinion pure marketing. They are saying this is huge demand constrained by physical supply constraints.
So this is in my opinion more like Babe Ruth saying where the ball will go and everybody invest to catch that ball there.
So, you can feel calm, you can still make your money on Nvidia.
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Value Investing with Sven Carlin, Ph.D. has 2 calls on this stock; only the adjacent ones are shown.