Nvidia is valued at $4 trillion market cap …. hard to see them earning 200Bn net profit to arrive at 20 p/e …… their predicted « revenue» for 2026 is $200 Bn with perhaps $100 Bn net profit. But if Nvidia cannot grow to meet these expectations then the stock price plunge would be nauseating ……. and if China - Global South are using Huawei then NVDA path to growth seems unclear …….but Wall Street seems relaxed for now with stock up 1.2% at 13:47
this is the same story as in any human or mechanical systems. Individual strength doesn't equate group strength in a competition of systems. A football team with all stars may not win a match against a well coordinated team composed of less talented individual players.
It would be interesting to see if China can pivot from reliance on USA's IT products and services. I think that China need to pursue that pathway given the likelihood that the Democratic Party will likely regain the upper hand in 2029 (my prediction).
A lot of their industries have been trending in that direction. You look at Huawei and their release of HarmonyOS, which is aimed to substitute Windows and ios/android. Due to the various export sanctions, various Chinese based companies have had to not just come up with short term replacements but also figure out long term solutions because they believe all they need is time. Right now, the west are the ones building the better mouse traps. The question is, is the west ready when China builds a better, cheaper mouse trap? What will happen if China chooses to be "China first" with its innovations and places the rest of the world as second class citizen?
These kinds of questions are being asked in the Chinese interwebs by various tongue and cheek webtoons and novels. Look up some of the misadventures of 林十三 on YouTube.
China is already building better mouse traps in many areas. USA still leads in some technologies but the gap between USA and China is already narrowing quickly - faster than many people anticipated.
I don't have a cogent response to your question - a good question, by the way. If we look at DeepSeek, i.e., which China developed and shared that AI tech with the global community, then you can understand why I would have more faith in China based corporations.
Nvidia is valued at $4 trillion market cap …. hard to see them earning 200Bn net profit to arrive at 20 p/e …… their predicted « revenue» for 2026 is $200 Bn with perhaps $100 Bn net profit. But if Nvidia cannot grow to meet these expectations then the stock price plunge would be nauseating ……. and if China - Global South are using Huawei then NVDA path to growth seems unclear …….but Wall Street seems relaxed for now with stock up 1.2% at 13:47
graph indicates that EU total electricity is declining ==» no AI industry for EU ….. https://substack.com/@brawlstreetjournal/note/c-139686354?utm_s ource=notes-share-action&r=1nbjd
'The markets can remain irrational longer than one can remain solvent' or words to that effect (Keynes)
this is the same story as in any human or mechanical systems. Individual strength doesn't equate group strength in a competition of systems. A football team with all stars may not win a match against a well coordinated team composed of less talented individual players.
Since I don't work for Huawei & in the insane US, I'm presuming I'd have to be wealthy to invest in the various employee owned equities?
It would be interesting to see if China can pivot from reliance on USA's IT products and services. I think that China need to pursue that pathway given the likelihood that the Democratic Party will likely regain the upper hand in 2029 (my prediction).
A lot of their industries have been trending in that direction. You look at Huawei and their release of HarmonyOS, which is aimed to substitute Windows and ios/android. Due to the various export sanctions, various Chinese based companies have had to not just come up with short term replacements but also figure out long term solutions because they believe all they need is time. Right now, the west are the ones building the better mouse traps. The question is, is the west ready when China builds a better, cheaper mouse trap? What will happen if China chooses to be "China first" with its innovations and places the rest of the world as second class citizen?
These kinds of questions are being asked in the Chinese interwebs by various tongue and cheek webtoons and novels. Look up some of the misadventures of 林十三 on YouTube.
China is already building better mouse traps in many areas. USA still leads in some technologies but the gap between USA and China is already narrowing quickly - faster than many people anticipated.
I don't have a cogent response to your question - a good question, by the way. If we look at DeepSeek, i.e., which China developed and shared that AI tech with the global community, then you can understand why I would have more faith in China based corporations.