NVIDIA has fundamental hardware and software advantages that will take years and years to catch up on. The general purpose part of GPGPU is no joke, just ask the people trying to build competing hardware and an alternative to the CUDA stack. But...
NVIDIA is massively investing in AI companies with the expectation (explicit or otherwise) that they use the money on NVIDIA hardware. And they are pouring in ridiculous amounts of money. I think this is severely impacting the ecosystem, creating overvalued and overfunded AI startups that lack viable businesses and driving essentially fake revenue to NVIDIA that is unsustainable. The money is basically free for NVIDIA to spend, maybe even net positive between revenue numbers and progress towards monopolizing the AI stack. Time will tell if the bubble will pop or if one of the plays will hit and turn a fake flywheel into a real one, but I definitely agree that the stock valuations are too high.
It's not that clear Apple/local-AI is necessarily going to directly compete that much with large models running in datacentres (outside of some relatively limited use cases) and there don't seem to be many signs that Nvidia has any serious plans about entering the consumer market and compromise their insane margins.
NVIDIA is massively investing in AI companies with the expectation (explicit or otherwise) that they use the money on NVIDIA hardware. And they are pouring in ridiculous amounts of money. I think this is severely impacting the ecosystem, creating overvalued and overfunded AI startups that lack viable businesses and driving essentially fake revenue to NVIDIA that is unsustainable. The money is basically free for NVIDIA to spend, maybe even net positive between revenue numbers and progress towards monopolizing the AI stack. Time will tell if the bubble will pop or if one of the plays will hit and turn a fake flywheel into a real one, but I definitely agree that the stock valuations are too high.