The investor has also claimed the way Nvidia’s graphics chips are accounted for is incorrect, claiming they have a much shorter use life than has been suggested.
The investor has also claimed the way Nvidia’s graphics chips are accounted for is incorrect, claiming they have a much shorter use life than has been suggested.
In some ways it is not a bubble. Because the presumption behind a bubble is that there is an acceptable baseline in capitalism. There isn’t. Bubbles popping is just the boom and bust cycles. Every boom cycle in capitalism could be considered a “bubble”; the inflation of asset prices of (fictious or otherwise) capital propped up by labour. There is not a real division between finance capital and “industrial” capital; they are two sides of the same coin (yeah Michael Hudson is wrong, good stepping stone but I have outgrown him now as an ML).
Having said that, that’s not the paradigm Nvidia is working with. The fact that he had to say it out aloud is hilarious.
I’d argue that bubbles are specific events causing a bust cycle [panic of 1819, crash of 1929, etc] of large proportions. Bust cycles are natural, but bubbles and depression/great recessions usually only happen once in a while
Lesser “bubbles” bursting are usually called “corrections.”
I would start with an examination of that presumption (I mean that sincerely).