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‘We are not Enron’: Nvidia rejects AI bubble fears 🤣 (finance.yahoo.com)

submitted 2 weeks ago by yogthos@lemmygrad.ml to c/us_news@lemmygrad.ml

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The investor has also claimed the way Nvidia’s graphics chips are accounted for is incorrect, claiming they have a much shorter use life than has been suggested.

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[–] darkernations@lemmygrad.ml 8 points 2 weeks ago* (last edited 2 weeks ago) (1 children)

In some ways it is not a bubble. Because the presumption behind a bubble is that there is an acceptable baseline in capitalism. There isn't. Bubbles popping is just the boom and bust cycles. Every boom cycle in capitalism could be considered a "bubble"; the inflation of asset prices of (fictious or otherwise) capital propped up by labour. There is not a real division between finance capital and "industrial" capital; they are two sides of the same coin (yeah Michael Hudson is wrong, good stepping stone but I have outgrown him now as an ML).

Having said that, that's not the paradigm Nvidia is working with. The fact that he had to say it out aloud is hilarious.

[–] King_Simp@lemmygrad.ml 5 points 2 weeks ago* (last edited 2 weeks ago) (2 children)

I'd argue that bubbles are specific events causing a bust cycle [panic of 1819, crash of 1929, etc] of large proportions. Bust cycles are natural, but bubbles and depression/great recessions usually only happen once in a while

[–] darkernations@lemmygrad.ml 2 points 2 weeks ago* (last edited 2 weeks ago)

Bust cycles are natural

I would start with an examination of that presumption (I mean that sincerely).

[–] Maeve1@lemmygrad.ml 2 points 2 weeks ago

Lesser "bubbles" bursting are usually called "corrections."