Some thoughts on NVIDIA and Wall Street’s $500 billion financing guarantee:
- This should help prevent GPU sales from taking a hit as hyperscalers face tighter cash flows and may no longer be able to pay for GPUs entirely upfront.
- It should accelerate the expansion of the GPU market’s TAM, and I do not view it as circular financing.
- Calling this circular financing is like criticizing the introduction of auto financing by saying that car companies are effectively buying their own cars.
- Another interesting point to watch is that Wall Street is increasingly starting to view GPUs as recoverable collateral.
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