Q: Hello,
Which do you see having more upside over the next 5 years, NVDA or GOOG?
Thanks as always.
Which do you see having more upside over the next 5 years, NVDA or GOOG?
Thanks as always.
Q: Good morning,
My question is on Circular Deals in AI investments:
Circular deals involve investment money flowing between companies that also buy from or sell to one another.
"A series of agreements negotiated among a small number of players in the artificial intelligence (AI) field is raising concerns about the potential risks of so-called circular deals." https://www.pon.harvard.edu/daily/dealmaking-daily/what-are-circular-deals/
Recently, OpenAI and NVDA reached a deal where OpenAI would receive up to $100 billion in investments from NVDA. This could be viewed as a circular deal, as OpenAI is likely to buy gear from NVDA, which will reinvest those profits in OpenAI, creating a cycle.
What are your thoughts on circular deals? In my view, such a deal could artificially inflate NVDA's revenues, potentially leading to a correction in the valuation of the companies involved. Is this practice proper or legitimate? These deals aren't only between these two companies, it appears to be widespread.
Thanks. I appreciate your all the videos that you provide: The Exponent, Monthly Rollup etc.
Seasons Greetings.
Elaine
My question is on Circular Deals in AI investments:
Circular deals involve investment money flowing between companies that also buy from or sell to one another.
"A series of agreements negotiated among a small number of players in the artificial intelligence (AI) field is raising concerns about the potential risks of so-called circular deals." https://www.pon.harvard.edu/daily/dealmaking-daily/what-are-circular-deals/
Recently, OpenAI and NVDA reached a deal where OpenAI would receive up to $100 billion in investments from NVDA. This could be viewed as a circular deal, as OpenAI is likely to buy gear from NVDA, which will reinvest those profits in OpenAI, creating a cycle.
What are your thoughts on circular deals? In my view, such a deal could artificially inflate NVDA's revenues, potentially leading to a correction in the valuation of the companies involved. Is this practice proper or legitimate? These deals aren't only between these two companies, it appears to be widespread.
Thanks. I appreciate your all the videos that you provide: The Exponent, Monthly Rollup etc.
Seasons Greetings.
Elaine
Q: Do you have any information on the impact Nvidia's share repurchases are making on the float or the comany's PE? Have they cancelled a significant % of shares? Is repurchase accelerating in any visible way with the current "pause" in share price increase? Thanks!