Thread

1. sourdecor · 1790953337 · focus · HN ↗

   Chips are automatically a depreciating asset - is there a historical basis for understanding how that affects companies, and how that will affect GPU-centric companies?

   1. ajross · 1790953973 · focus · HN ↗

      Chip assets are a vanishingly small fraction of the valuation of these companies. If they were to depreciate instantly and need to be replaced at cost every year (assuming the fabs had capacity to produce them) it wouldn't move the needle.

      This is like asking if there's a historical basis for understanding how the depreciation of garden sprinklers affects home value appreciation.

      1. sourdecor · 1790954295 · focus · HN ↗

         Then how do you explain the capitalization of nVidia?

         1. boredatoms · 1790955903 · focus · HN ↗

            Nvidia isnt playing buy/hold on these chips, but make/sell

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