Sometimes the most important metric for a company isn’t revenue growth, but how much capital must be invested just to make that growth happen.
That’s why I look at stories like $AMDB or $NVDAB a bit differently.
A company may show strong demand for AI, but between “customers want more compute” and “the company received the money,” there are several intermediate layers:
— building data centers;
— connecting power supply;
— buying equipment;
— financing projects;
— commissioning capacity for operations.
Each layer can become a bottleneck.
And that’s why I like to separate demand for compute from ready-made infrastructure. The first can grow very quickly, while the second cannot be physically accelerated to infinity.
So when a major infrastructure announcement comes out, I don’t immediately book it into future revenue. First, I ask: who finances the project when capacity comes online, who the end customer is, and what share is already under contract.
For me, this is a good filter against overly optimistic forecasts.
Because sometimes the market already counts future gigabytes as future billions in revenue.
And between them there are still several years of construction.
#bStocksCIS @BinanceCIS
That’s why I look at stories like $AMDB or $NVDAB a bit differently.
A company may show strong demand for AI, but between “customers want more compute” and “the company received the money,” there are several intermediate layers:
— building data centers;
— connecting power supply;
— buying equipment;
— financing projects;
— commissioning capacity for operations.
Each layer can become a bottleneck.
And that’s why I like to separate demand for compute from ready-made infrastructure. The first can grow very quickly, while the second cannot be physically accelerated to infinity.
So when a major infrastructure announcement comes out, I don’t immediately book it into future revenue. First, I ask: who finances the project when capacity comes online, who the end customer is, and what share is already under contract.
For me, this is a good filter against overly optimistic forecasts.
Because sometimes the market already counts future gigabytes as future billions in revenue.
And between them there are still several years of construction.
#bStocksCIS @BinanceCIS