Wall Street Is Getting the AI Trade Wrong

Real Vision • 2 days ago

Original source

What This Video Is About

The current GPU market trends are discussed, highlighting the unexpected increase in value of various GPU models, such as the H100 series from Nvidia and the B200 from Blackwell.

Major Ideas Discussed

  • The H100 series from Nvidia has seen a 30% increase in rental prices this year, despite being primarily installed in 2022 and 2023.
  • The B200, part of the first Blackwell series, has more than doubled in value this year, indicating a strong demand for compute capacity.
  • The current market trends contradict the expectations of credit markets and equity investors, who anticipated depreciation.
  • The discrepancy between expected and actual market performance suggests a market that is short on compute capacity, leading to increased demand and higher prices.
  • If this trend continues, the return on investment in GPUs is expected to remain strong, making them a viable option for investors.

What to Watch Next

Investors should monitor the continuation of this trend, as well as the demand for compute capacity, to determine the potential for future investment in GPUs.