No. of Recommendations: 5
However, we did see a marked slowing of Datacenter growth. Not just in % amount but in actual amount. Q2-Q3 saw only 32 million increase vs 85 million last year. Are you thinking that despite all the talk, GPU's haven't quite crossed that chasm to replace CPUs, but it could happen at any time.

Investing is not an escalator to financial heaven and neither is business growth a smooth ascent. Get used to lumpiness. Will the datacenter disappear? Hardly likely. Will CPUs disappear? Hardly likely. Will the paradigm shift from CPU to GPU be instantaneous? Hardly likely. Is Qualcomm relevant? Hardly likely, they were making ARM based CPUs.

Short term price moves do not correlate perfectly with the business cycle. Despite all the denials, our stock prices were rather inflated if by nothing else than by the Fed buying all the junk they could find. Now they are putting the garbage collection in reverse and asset prices will fall -- are falling. Where is the bottom? Don't ask me, I don't know but NVDA at $150 is a better buy than NVDA at $292, the 52 week hign. I bought at $192, I should have been more patient but that is 20-20 hindsight wisdom. I'm out of cash so I'm just sitting on my hands. I did make some cash trading covered calls.


Are you thinking that despite all the talk, GPU's haven't quite crossed that chasm to replace CPUs, but it could happen at any time.

What are they using to make supercomputers, CPUs or GPUs? But economics says that really cheap but slow workers can be more cost effective that the latest, fastest, and most expensive gear. EMC displaced IBM in storage with arrays of cheap disks. Google built datacenters out of cheap servers. Red China conquered the world with cheap labor, America built the railroads with cheap Chinese labor and now harvests crops with cheap foreign labor. But as labor gets expensive and technology cheap, robots replace human labor.

The thing about crossing the chasm is not all that simple. A company dedicated to a new technology must cross the chasm or die. Nvidia crossed the GPU chasm with gaming and now is developing the bowling alley: machine learning, deep learning, supercomputers, datacenters, autonomous vehicles, etc. Not crossing the chasm in any one of them is not life threatening as was the initial GPU crossing. This is the reason I would not sweat a slowdown in datacenters.


You make me want to buy more Denny.

Just as long as you don't blame me it it does not work out! 😇

Denny Schlesinger
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