NVIDIA Becomes First Company Ever to Hit $4 Trillion Market-Cap

[R-T-B]

Their business model of software licenses is what transformed the world of software, due to the fact that software development was not really profitable before Microsoft.

Their OS products were only transformative because of the Software licensing business model.

People were licensing software way before microsoft, so not sure I buy that.

 

[Visible Noise]

Their business model of software licenses is what transformed the world of software, due to the fact that software development was not really profitable before Microsoft.

Their OS products were only transformative because of the Software licensing business model.

IBM, Computer Associates, Compuware, and Honeywell would like to speak to you about profitable software development.

 

[Raiden85]

Wow this is a true milestone! Hard work and vision pays off.

That and jacking up the prices through the roof. 5080 and 5090 should be about half of what they currently cost.

I hope their stocks go the way of the dot com bubble and they lose a massive majority of that, because they need a reality check.

 

[Craptacular]

IBM, Computer Associates, Compuware, and Honeywell would like to speak to you about profitable software development.

Never said there wasn't any software that wasn't profitable, but the scale of profitability of software today is due to the MS-DOS licensing with IBM.

People were licensing software way before microsoft, so not sure I buy that.

Sure, but not the type of License that Microsoft did with MS-DOS to IBM. Microsoft retained ownership of the software and sold the hardware manufacturers a license, before then software was just simply bundled with the hardware and the software maker didn't retain ownership. They didn't collect royalties.

Volume Licensing by Microsoft is another type of software licensing that Microsoft pioneered in the early 1990s.

History of Microsoft Licensing

History of Microsoft Licensing

atonementlicensing.com

 

[jaggerwild]

I had an AI interview today, my first. It even texted me, like we will find you sorta thing……Crap!!
Miss me Broh ?

 

[R-T-B]

IBM, Computer Associates, Compuware, and Honeywell would like to speak to you about profitable software development.

I know Word Perfect was huge in the 80s too, whoever did them.

Volume Licensing by Microsoft is another type of software licensing that Microsoft pioneered in the early 1990s.

Ah. Volume Licensing. That is kinda a more unique one. I'll let that one go, it could be argued.

 

[R0H1T]

You can't argue with a Trillion Dollar company let alone a 4 Trillion Dollar company.

They must know what they're doing.

That's the kind of thinking that led to the 2008 crash & no the amount of dollars on your balance sheet or cash in your accounts doesn't determine whether you're (more) right than wrong

Volume Licensing by Microsoft is another type of software licensing that Microsoft pioneered in the early 1990s.

The biggest change or "revolution" in software licensing model was the subscription thing! Not sure if that can be traced back to just one company but that's been the biggest game changer for the likes of Adobe, MS & even Apple.

 

[RogueSix]

OR how will Nvidia convince the CFO’s of the AI companies, to replace perfectly good AI GPU’s with those that are twice the price, and 5% faster?…

AI accelerators will always be significantly faster from gen to gen because nVidia will be using the leading edge node for those products instead of staying on the same node as with consumer GPUs. nVidia have already announced and implemented an annual cadence as far as architectural upgrades are concerned (Rubin this year). These annual steps will accelerate progress further.

"Replacing" is also not how this works. The AI companies, depending on their demand, will be installing additional new AI accelerators alongside their inventory. The "old" AI accelerators are subject to investment depreciation (write-offs) and aren't going anywhere until they have served their purpose and time which will usually be at least around five years or so.

 

[dick_cheney]

Jensen is worth $140B. Do you think he cares about your feels?

Gaming didn’t make Jensen. Jensen made Jensen. You understand he’s an engineer that founded the company, yes?


Again (third time) market capitalization is not cash on hand.


Yes, many cancers are considered curable now.

I was diagnosed in 1999, treated, and am still cancer free.

Ok so they ONLY have $54 Billion cash on hand yet cant make GPU's enough.

 

[Onasi]

Ok so they ONLY have $54 Billion cash on hand yet cant make GPU's enough.

I am sure that NVidia sees it as a massive issue that their limited fab allocation is used for more profitable enterprise and professional SKUs instead of cards for playing vidya. It’s tragic, really.

Also, what does cash have to do with anything? Do you people think real life is an RTS and one can, if enough abstract cash is on hand, just press a button saying “make more X” and that magically spawns said X into existence?

 

[dick_cheney]

I am sure that NVidia sees it as a massive issue that their limited fab allocation is used for more profitable enterprise and professional SKUs instead of cards for playing vidya. It’s tragic, really.

Also, what does cash have to do with anything? Do you people think real life is an RTS and one can, if enough abstract cash is on hand, just press a button saying “make more X” and that magically spawns said X.

I realize they can't just send a check to someone to get more gpus lmao. i agree with you, what im saying is that if they wanted they could correct the supply issues if they wanted but they limit supply(+normal manufacturing issues) on both sides of the fence to keep the price high.

 

[TechBuyingHavoc]

That and jacking up the prices through the roof. 5080 and 5090 should be about half of what they currently cost.

I hope their stocks go the way of the dot com bubble and they lose a massive majority of that, because they need a reality check.

Hey, I am with you but there is zero chance of that happening without the AI boom also being crushed. It would be an instant tech recession and a lot of tech jobs lost (on top of the job cuts already happening).

 

[Craptacular]

The biggest change or "revolution" in software licensing model was the subscription thing! Not sure if that can be traced back to just one company but that's been the biggest game changer for the likes of Adobe, MS & even Apple.

I would assert it was the MS-DOS licensing deal with IBM, up until then, software developers didn't retain ownership of the software they made and they didn't receive royalties. So, let's say that a software developer sells software to a hardware maker for $1 million dollars, and the hardware sells extremely well above the expected sales, the software maker doesn't see any royalties from that. The Microsoft MS-DOS license model has basically become the model for all software.

 

[thesmokingman]

Good day to sell cha ching!!

 

[Visible Noise]

That's the kind of thinking that led to the 2008 crash & no the amount of dollars on your balance sheet or cash in your accounts doesn't determine whether you're (more) right than wrong

The biggest change or "revolution" in software licensing model was the subscription thing! Not sure if that can be traced back to just one company but that's been the biggest game changer for the likes of Adobe, MS & even Apple.

Subscription licensing existed before perpetual licensing.

Look at how enterprise licensing works to get your mind blown. For example both IBM and Oracle charge by the total processing capability of the system they are installed on.

Running on a 8 vCPU VM on a 32 CPU system? You pay for the entire 32 CPU price because you could run it on 32 CPUs.

Look up what Oracle charges for a high availability cluster. It’s six figures just for the mirroring software.

if they wanted they could correct the supply issues

How?

 

[lexluthermiester]

Imagine the shock of folks when NVIDIA hits 6 trillion. The age of robotics will be powered by NVIDIA, and the foundation is already there.

And whether we like it or not, it's coming.

 

[Bomby569]

It won't be long before they are taken down as number one by China, but for now they do deserve it.

 

[Thunderslat]

Very impressive performance by nVidia and well deserved as Huang had a vision many years ago and followed it through. He is like a more stable genius version of Elon .

To those saying it's a "bubble", it might be to an extent for the companies who are buying nVidia accelerators as those companies need to establish a business case worth their investments but for nVidia this is not a bubble at all. They are selling real hardware and making real billions of dollars right now ($44bn last quarter).

There will be a point of saturation, of course, and things will naturally decline again but for now there is no end in sight. With one very notable exception: TSMC. All of it could be over in a day if China attacks Taiwan.

That is (imo), by far, the biggest risk to nVidia's business and the entire world economy that depends so much on Taiwanese chip production. The volatile US foreign politics of the recent past do not help. I have been wondering, in fact, what Xi is even waiting for anymore?

I personally sold my nVidia stock (helped finance my RTX 5090 ) a few weeks ago which might have been too early in hindsight but there are substantial risks for all of the companies depending on TSMC. The unresolved tariffs situation with many countries could also shake things up repeatedly again.
Hindsight is always 20/20 and maybe nVidia stock will march on towards or beyond $200 now while China stays dormant but I have a feeling that Xi is just waiting for the right moment because a Nobel Peace Price is at stake...

Way to get political. I think Starlink is more valuable than AI.

So nVidia as a mega corpo is now richer than all top 6 and bellow world countries, being surpassed only by USA (30.5 trillion), China ( 19.2 Trillion), Germany (4.7 Trillion), India and Japan (4.2 trillion).
Amazingly they are way richer than countries like UK, France, Italy, Canada, Brazil, Russia, Spain, Australia, etc...

How is this possible??

Simple. Overvalued.

 

[Onasi]

Simple. Overvalued.

No. It’s just the market evaluation. It has nothing to do with what assets the company actually possesses. The very idea that NVidia, no matter how successful as a company, is “richer” than, for example, Russia for which JUST its DISCOVERED natural resources are CONSERVATIVELY valued at, oh, around 75 trillion (in reality probably significantly more), is misunderstanding the concept of market cap itself.

 

[correctthemisbegotten]

"Who is the more foolish? The fool or the fool who follows him?"