Comment on Nvidia might not have any new gaming GPUs in 2026 — and could be 'slashing production' of existing GeForce models

A_Random_Idiot@lemmy.world ⁨3⁩ ⁨days⁩ ago

• hamsterkill@lemmy.sdf.org ⁨3⁩ ⁨days⁩ ago

  It won’t collapse. It’ll lose a huge chunk of its stock price, but it both has other business to fall back on and its chips will still likely be used in whatever the next tech trend is - probably neural network AI or something.

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  • jj4211@lemmy.world ⁨3⁩ ⁨days⁩ ago

    I am not sure. They have other businesses but not sure those other businesses are able to sustain the obligations that nVidia has committed to in this round. They are juggling more money than their pre-AI boom market cap by a wide margin, so if the bubble pops, unclear how big a bag nVidia will be left holding and if the rest of their business can survive it. Guess they might go bankrupt and come out of it eventually to continue business as usual after having financial obligations wiped away…

    Also, they have somewhat tarnished their reputation with going all in on the dataenter equipment to, seemingly here, abandoning the consumer market to make more capacity for the datacenters. So if AMD ever had an opportunity to maybe cash in, well, here it might be… Except they also dream of being a big datacenter player, but weaker demand may leave them with leftover capacity…

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    • TheOakTree@lemmy.zip ⁨2⁩ ⁨days⁩ ago

      Never underestimate AMD’s ability to miss good opportunities.

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      • A_Random_Idiot@lemmy.world ⁨2⁩ ⁨days⁩ ago

        never underestimate AMDs ability to shoot itself in the foot when its not under immediate threat of collapse/bankruptcy.

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    • hamsterkill@lemmy.sdf.org ⁨2⁩ ⁨days⁩ ago

      juggling more money than their pre-AI boom market cap by a wide margin

      I’m not sure what you mean by this. Nvidia carries a vanishingly small amount debt for its size. It has way more liquidity than debt.

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      • jj4211@lemmy.world ⁨2⁩ ⁨days⁩ ago

        Like how nVidia buys equity in a customer and in part promises expensive real product as part of it. So they may have so many billions worth of equity in a customer and might be able to leverage that to fund that production if needed, but if that equity evaporates, then they still are on the hook for the expensive product committment.

        So maybe not yet straightforward debt, but a whole lot of expensive balls in the air that could manifest as a committed expense when there’s no actual money to execute…

        Just seems like a lot of financial moves that are far from straightforward of a magnitude that could wipe a company out.

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