Dan Ives, senior managing director at investment bank Yorkville Ives & Co, said on CNBC that his research in Asia shows current chip demand is running at 13 to 14 times available supply. He added that Nvidia is the only chip driving the AI revolution.
The segment also highlighted a more cautious view from Michael Burry, the investor known as the real-life inspiration for The Big Short. Burry is holding Nvidia put options through September 2027 and has warned that the AI bubble could burst earlier than expected.
At the same time, DBS Group told Bloomberg that Nvidia is trading at 17 times forward earnings, far below the 100 times level Cisco reached before the dot-com bubble burst. The report also examined the potential knock-on effects if Nvidia were to face a crisis comparable to Lehman Brothers. Nvidia has already reached preliminary agreements with six financial institutions on roughly $500 billion in customer financing, and any customer defaults could hit both Nvidia and the lenders providing the funding.
Dan Ives, senior managing director at investment bank Yorkville Ives & Co, said on CNBC that based on his research in Asia, current chip demand is running at 13 to 14 times supply. He also said Nvidia is the only chip driving the AI revolution.
On the other side of the debate, Michael Burry, the real-life inspiration for The Big Short, is holding Nvidia put options through September 2027 and has warned that the AI bubble could burst earlier than expected. DBS Group, meanwhile, told Bloomberg that Nvidia is trading at 17 times forward earnings, well below the 100 times multiple Cisco reached before the dot-com bubble burst.
The report also looked at the chain reaction that could follow if Nvidia were to face a crisis similar to Lehman Brothers. Nvidia has reached preliminary agreements with six financial institutions on about $500 billion in customer financing. If customers default, the impact could spread to Nvidia itself as well as the lending institutions funding those arrangements.
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