[makeitdouble]

That's kind of arguing that people cooking at home are restaurants' competitors.

There's a kernel of truth in it, but if I was McDonalds I'd care a lot more about what KFC is doing than the market trends of cast iron pans.

[johnnyanmac]

I'd say so, yes. If I'm McDonald's and me and kfc are down, but Ralph's is up, I'd suspect a worrying trend about my industry.

It's kind of like how people may make fun of YouTube seeing TikTok as a competitor. But you dig deeper and realize why they decided to get into short for content.

[voidspark]

Bad analogy

90% of Nvidia's revenue is from datacenters.

If the datacenters stop buying Nvidia's products, and use their own hardware instead, then Nvidia loses 90% of its revenue.

[makeitdouble]

> Nvidia loses 90% of its revenue.

These 90% will be a flash in the pan, same way the COVID revenue was for mask sellers. Sure it feels bad from Nvidia's perspective, but we also can understand that the AI boom would not have kept Nvidia skyrocketing infinitely anyway.

[brazzy]

No, you wouldn't, not if that market trend causes your revenue to plummet. Changes in the size of the market matter just as much as market share.

[prng2021]

The 3, multi-trillion dollar hyperscalers using their own GPUs are individuals cooking at home? And Nvidia is the “restaurants”?

[makeitdouble]

I'd say yes. We see the same dynamic with megacorp building in-house kitchens and paying staff to feed their employees, who stop going into restaurants at lunch.

It's a huge shift, but not something that can be acted by Nvidia, nor something they had to care about 5 years ago, nor a primary concern 5 years from now. On the long scale, it's almost as if the big fireworks that pushed Nvidia to its curent valuation just disappears and they're back to selling GPUs to OEMs and consumers primarily.