Jensen Huang's Huawei Warning: More Hype Than Substance?
Okay, so Nvidia's CEO Jensen Huang is out there sounding the alarm about Huawei. "It is foolish to underestimate the might of China and the incredible, competitive spirit of Huawei," he says. Give me a break. Is this some kind of weird reverse psychology thing? Like, pretend you're scared so your stock price goes up?
He's practically drooling over Huawei's "amazing chips" and 5G dominance. "Amazing," huh? Last time I checked, "amazing" wasn't the word people were using when talking about a company knee-deep in US trade restrictions and spying allegations. According to Nvidia CEO Jensen Huang sends stern ‘Huawei’ warning: ‘It is foolish to…, Huang stated that underestimating Huawei would be foolish.
And then there's this gem: "China makes plenty of AI chips themselves, and the Chinese military surely have plenty of access to chips that are created in China. So, whatever national security concerns…" He just… stops. Like he realized he was about to say something actually truthful for once.
The Half-Trillion Dollar Hype Train
But wait, there's more! Apparently, Nvidia has "visibility into half a trillion dollars of cumulative Blackwell and early ramps of Rubin through 2026." Half a trillion? That's a number so big it's practically meaningless. It's like saying I'm going to eat a million grains of sand. Sure, technically possible, but highly unlikely and, frankly, who cares?
And Wall Street is eating it up, offcourse. Analysts are tripping over themselves to revise their estimates higher. The stock's up 10% since Huang's little speech. It's all one big echo chamber of hype.
Speaking of hype, I'm still trying to figure out how data center spending is supposed to reach $4 trillion by the end of the decade. Is that before or after the robot apocalypse? Because if it's after, I'm pretty sure the robots won't be needing Nvidia GPUs. They'll probably just, you know, think them into existence.
You know what else is annoying? These "analysts" patting themselves on the back because Nvidia's stock is "still trading at a reasonable forward (one-year) price-to-earnings multiple of 33." Thirty-three? For a chip company? That's reasonable? My car's "reasonable" if it doesn't burst into flames on the highway. This ain't reasonable, it's insane.
The Reality Check Nobody Wants
Let's be real: Nvidia is riding the AI wave like a surfer dude on a tsunami. But tsunamis eventually crash. And when this one does, all those "reasonable" price-to-earnings multiples are going to look a whole lot less reasonable.
And what about the competition? Huang says custom AI chip designers "are not able to handle the massive workload for accelerated computing like Nvidia's general-purpose GPUs." Maybe not now. But technology evolves. Remember when everyone thought Blockbuster was invincible? Yeah, how'd that work out?
Oh, and before I forget—Nvidia is "investing $1 billion in Nokia to build AI-powered telecommunications for 5G-advanced and 6G networks." A billion? On Nokia? I thought Nokia was still making those indestructible brick phones from the early 2000s. Maybe I'm missing something, but I didn't realize that was such a hot market.
Then again, maybe I'm the crazy one here. Maybe everyone else sees the genius in all of this, and I'm just too cynical to appreciate it. But I doubt it.
So, What's the Catch?
It all smells a little too good to be true. While I admire the hustle, I'm not convinced this Nvidia gravy train can keep chugging along at this pace. Mark my words.
