BY TYLER DURDEN
WEDNESDAY, JUN 28, 2023 – 05:05 AM
One month ago, Wall Street lost its mind when Nvidia reported guidance that blew away consensus: in the aftermath of ChatGPT, it seemed as if the entire world suddenly wanted the company’s flagship A100 chip, helping send NVDA stock higher by almost 50% in days, pushing the company into the vaunted “cuatro comas”club.
And maybe they did… but maybe not. Maybe instead of a scramble by everyone to become the Apple of AI, something which only a small handful of cash-rich companies can even hope of achieving due to the vast capex sums required, all that happened was a rush by Chinese companies to rush and front-load orders before the chip export ban hammer falls, something we discussed most recently two weeks ago.
Same happened with semiconductors and double/triple ordering during peak covid, and the cycle is even more offset now with AI orders (NVDA) ahead of potential chip wars with China. https://t.co/LJwLEVEl5h
— zerohedge (@zerohedge) June 11, 2023
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