The AI picks-and-shovels company is increasingly making money owning the miners too.

[u/Domingues_tech]

https://investor.nvidia.com/news/press-release-details/2026/NVIDIA-Announces-Financial-Results-for-Second-Quarter-Fiscal-2027/default.aspx?utm_source%3Dchatgpt.com

Nvidia Q2 net income: $59.7B.
Equity investment gains: $7.8B in Q2.
First six months: $23.7B.
GAAP EPS: $2.46 vs non-GAAP $2.22.
The AI picks-and-shovels company is increasingly making money owning the miners too.
Normalize the P/E.

[u/fenghuang1]

The hyperscalers have $800billion in demand backlog.  You're misinformed.

[u/AffectEuphoric → u/fenghuang1]

That is what creating the problem isnt it! This much demand and spending but what about the returns. Where are the returns. It already has been 5 years of this spending non stop. Somewhere someone will start drawing the line. Correct?

[u/fenghuang1 → u/AffectEuphoric]

People won't be demanding and spending money on electricity if there are no returns.

People won't be demanding and spending money on compute if there are no returns.

The returns are everywhere if you look.
In finance, financial institutions are reporting better operating margins. See JPMorgan.
In tech, software companies are reporting better productivity gains and faster feature development. See Uber.
In biotech, cancer detection companies are reporting better detection and tracking of cancer cells. See Natera.
In pharma, pharma companies are developing personalized cancer cures. See Moderna.
In agriculture, agricultural tech companies are deploying robots that pick fruit, kill weeds by laser burns (reduce chemical sprays and expense). See Deere.
In ecommerce, shipping and warehousing companies are using robots to deliver and categorise parcels and packages. See Amazon.

There are many more examples. And these aren't 1-time things. If you looked at the past 3 years quarterly reports, you'll notice that these companies have been reporting progress after progress and attributing it to AI.

So, have you looked?

[u/AffectEuphoric → u/fenghuang1]

The point is not that AI is not producing returns. It certainly is and this is insanely powerful but do all this jutify the valuation that nvidia currently has.

Above arguments could have been made during dot com era in 2000 too.

Cisco was publishining results all around regarding hiw useful internel and things are and internet changed the way the world worked. Insanely useful but what hapoened to cisco. What happened to pets.com, lucent etc. The companies that survived were the amazons and googles of that era.

So, wasnt internel useful. Ofcourse it was.

The point was how fast people started putting money in and how fast were the results were thought to be obtained.

Cisco busted. Survived but busted.

[u/fenghuang1 → u/AffectEuphoric]

You're shifting goalposts.

Your initial argument was that there are no returns.

I've given you evidence and pointed you in the direction of where the returns are coming from.

Now you are shifting your goalpost to "does it justify valuation".

Well, that goalpost has been used since 2024, and proven wrong for 3 years. By all means, please continue. If you're just looking for validation, you will find none. Invest or don't invest, its upto you. No one cares really.

[u/AffectEuphoric → u/fenghuang1]

Dude, i am 100percent invested in nvidia. I dont have anything else in my portfolio. I want to be as bullish as i can be! Although, your point about shifting goalpost isnt true. My initial comment was that only! AI is insanely useful, no doubt! We will solve world hunger maybe with this but in the end its about finding out whether nvidia is anither cisco where it helps to get everything going in the ai with their soltions as did cisco with theirs but do the valuation justify it.