with nvidia's dominance as the operating system of AI it further concentrates it's dominance in developer ecosystems, keeping costs high and creating risk as a single point of failure, as there is only one company in the world manufacturing nvidia chips in Taiwan (TSMC), making Taiwan the most important country to the ai industry
nvidia will become the next cisco - this can't last forever
In 2000, Cisco Systems became the world's most valuable company by selling the routers required to build the internet. However, telecom companies bought hardware much faster than consumers adopted internet services. When the monetization gap widened, hardware orders were canceled, Cisco's stock crashed by 80%, and the broader economy fell into a recession. If consumer demand for AI software does not soon match the trillions being spent on Nvidia's chips, a sudden cancellation of orders could wipe out massive amounts of stock market wealth tied to index funds
nvidia will become the next cisco - this can't last forever
In 2000, Cisco Systems became the world's most valuable company by selling the routers required to build the internet. However, telecom companies bought hardware much faster than consumers adopted internet services. When the monetization gap widened, hardware orders were canceled, Cisco's stock crashed by 80%, and the broader economy fell into a recession. If consumer demand for AI software does not soon match the trillions being spent on Nvidia's chips, a sudden cancellation of orders could wipe out massive amounts of stock market wealth tied to index funds