[BrawnyBadger53]

Personal opinion, I'm bearish on the shovel seller long term because the companies that are training AI are likely to build their own hardware. Google already does this. Seems like a matter of time for the rest of the mag 7 to join. The rest of the buyers aren't growing enough to offset that loss imo.

[godelski]

FWIW, Nvidia's moat isn't hardware and they know this (they even talk about it). Hardware wise AMD is neck and neck with them, but AMD still doesn't have a CUDA equivalent. CUDA is the moat. As painful as it is to use, there's a long way to go for companies like AMD to compete here. Their software is still pretty far behind, despite their rapid and impressive advancements. It will also take time to get developer experience to saturate within the market, and that will likely mean AMD needs some good edge over Nvidia, like adding things Nvidia can't do or being much more cost competitive. And that's not something like adding more VRAM or just taking smaller profit margins because Nvidia can respond to those fairly easily.

That said, I still suggested the parent sell. Real money is better than potential money. Classic gambler's fallacy, right? FOMO is letting hindsight get in the way of foresight.