Last night's complete divergence between the US stock market's AI hardware and software pointed us in the right direction.

StrawberryIce · 2026-02-07T07:01:52+00:00

AI applications have a certain logic that seems very reasonable, but in the current landscape, it is actually wrong and completely counterintuitive. The logic goes like this: buying hardware costs so much money, and these purchases are made for profit. If they can't generate profit, then they will negatively impact the hardware industry. One inference from this is that NVIDIA's market value has already reached seven or eight trillion dollars. Given this, if AI applications in the backend don't take off and we don't see major companies with large market values emerging, then NVIDIA

StrawberryIce

2026-02-07 07:01:52

The logic behind AI applications seems very reasonable, but in the current landscape, it’s actually wrong—completely opposite. The reasoning goes like this: buying hardware costs a lot of money, and these purchases are made for profit. If there’s no profit, it will actually restrict hardware development. One inference from this is that Nvidia’s market value is already around seven to eight trillion dollars. Given this, if AI applications in the backend don’t take off and we don’t see a large-scale company emerge, then Nvidia

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