Hi, Shrewd!        Login  
Shrewd'm.com 
A merry & shrewd investing community
 Best Of GOOGBest OfAll BoardsThe Shrewd’m WeeklyLearn to InvestHow to Become Shrewd
Search
Shrewd'm.com Merry shrewd investors
Search
Best Of GOOGBest OfAll BoardsThe Shrewd’m WeeklyLearn to InvestHow to Become Shrewd

The week's question
In March 2025, in the thread "Re: OT, out", Umm asked the members: "Do you think it is because America is made up of magical soil that makes businesses based in America magically profitable?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
Answer this questionContinue to Shrewd'mThis note won't appear again
Stocks A to Z / Stocks G / Alphabet (GOOG)
Unthreaded | Threaded | Whole Thread (8) |
Author: BreckHutHigh ⎊  😊 😞
Number: of 446 
Subject: Re: Jassy on AI infrastructure economics
Date: 08/11/26 10:42 PM
Post New | Post Reply | Report Post | Recommend It!
No. of Recommendations: 6
"Wall Street is now in on the act, likely a sign of the top?

..or possibly an inflection point toward the next ramp up. ROI all comes down to the useful life of the GPUs. "Wall Street" is slowly coming around to the fact that useful equipment lives are longer than they initially thought.

Coreweave CEO on today's earnings call speaks to the fact that the useful economic life of an NVDA A100 (vintage 2020 GPU) can be 9 years or more.

“As our earlier generation fleets roll off their original contracts, they offer the potential to deliver strong returns in the subsequent years. We are seeing this across our Ampere and Hopper fleet. As an example, we recently signed an A100 contract that extends into 2029 at an attractive price. As a reminder, this SKU was introduced in 2020. Clusters of prior generations of architecture offer installed, energized, production-grade compute already running at scale. They come with a proven ROI for customers.

In a market where new capacity is supply-constrained and costs are rising, AI cloud infrastructure in production is a scarce, valuable asset.”

One of the most exciting components of what we are beginning to understand and what we believe the market is providing real insight into right now is that the older generations of infrastructure continue to have significant value for use cases within many of the consumers of AI. We have talked about this literally for years now, that the most bleeding-edge solutions that are coming out of NVIDIA, that we build into our cloud and deliver to our most demanding customers. That is really important for some of the most cutting-edge use cases.

But within that environment and within that ecosystem, there are an enormous number of other use cases that can make use of older, more later-dated SKUs. The fact that we have been able to go ahead and sell a GPU whose architecture was from 2020 in a contract that was fully priced out to 2029 really provides some insight into what the future is going to look like as this infrastructure comes off contract."

ca.investing.com - Earnings call transcript coreweave tops q2 estimates shares jump
Post New | Post Reply | Report Post | Recommend It!
Print the post
Members reply directly to BreckHutHigh here — and replies get answered. Reading is free; so is joining the conversation. Join Shrewd'm »
This community has written 446 posts about Alphabet. The article-length ones it recommended most:
Judge's Ruling · 24 recs · 2025
Alphabet's Century Long Bet · 23 recs · 2026
Will the Sexy Six Strut or Stumble? · 19 recs · 2025
2Q Summary 2026 · 18 recs · 2026
Up about 50% this year · 17 recs · 2023
Unthreaded | Threaded | Whole Thread (8) |


Announcements
Alphabet FAQ
Contact Shrewd'm
Contact the developer of these message boards.

Ticker or Board Name Author

Best Of GOOG | Best Of | Favourites & Replies | All Boards | Followed Shrewds | Open Questions | Moving a community