[Ekaros]

With Nvidia no one needs to replace them. Their valuation is build on large demand and huge margins. Demand just going lower or margins dropping following that should lead to lower valuation without anyone replacing them.

I could very well see current market being in state of overinvestment. Meaning future demand is lower which could lead to less units sold thus lower profits thus lower valuation.

[bigyabai]

Nvidia's profits are built on demand and margins. Their valuation is constrained by their supply, Nvidia sells-out of almost all their datacenter hardware before it hits shelves. Even if the memory shortage never clears up, Nvidia is the best-poised company to buy memory at-cost and sell it for ludicrous prices.

For their margins to go down, that demand would have to be satisfied. And those customers by-and-large do not see any commodified CUDA alternatives on the market, they only want Nvidia hardware. Hence my question - who will rise to the challenge? If the answer is nobody, then you've just found out why people don't short Nvidia.