It is unlikely that a 50% drop in NVidia wouldn't be paired with a significant drop in the valuation of every other company heavily invested in AI.
replyUnless they too were somehow tied into Nvidia.
replyThis is what caused the 08' crash. Everything was all tied together so as one massive bank failed it sent a cascading ripple effect through the entire industry which became a sort of black hole that took down many seemingly stable, profitable banks with it.
I can easily see the same happening with AI.
> EDIT: to note, the top ten companies in SP500 make up an unprecedented concentration but they're not "mostly AI".
replyThey're mostly either AI proper, or hardware manufacturers benefitting from AI boom, or provide cloud services to AI companies...
An AI collapse would represent a generational buying opportunity for companies like Meta, Google, and MS. It would be bumpy for a bit while things unwind, but eventually all this FCF they have been dumping into AI would start dropping to the bottom line instead. It's like when Meta stopped dumping money in Reality Labs, but on a much larger scale.
replyRegarding unprecedented concentration, wasn't the nifty fifty era comparable for the top 10, about 40%?
replyIdunno man. Am I the only one that remembers the day the first DeepSeek model came out?
replyIt wasn't like, "Nvidia took a hit and everyone else was fine". It was more like, "One or two companies were fine, and ALL others took a hit"
how are they not “mostly AI”?
reply"This tree only makes up 0.0001% of the forest. If it is lit on fire, the forest will be fine"
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