by slayez06
With a market cap of 1.7 T nvidia has put itself in an unusual position. It has about 50 buildings world wide and outsourced it manufacturing. TSMC and the Chinese produce the physical chips. Thing is, if something was to happen to a manufacturing plant, natural or terroristic because the supply chain and how little redundant manufacturing they have. Any hiccup would cause a catastrophic downward spiral. They don’t need more cash and that’s what an insurance payout would give. They need a rock solid supply chain.
The real problem is to many institutions, 401k, and life savings are heavily propped up by Nvidia. This makes it a national security threat. A sell off of this magnitude or even correction is going to devastate our economy.
I personally believe they need to rethink and move their manufacturing to the USA. Their margins are high enough to cover the labor cost, and it is in the interest of the USA for them to do so.
I personally sold my nvida positions and calling it a day. Option spreads are ridiculous, and I feel like after listening to jpowl I want to buy puts on US economy. I do still hold position in amd and tsm…but yea…
Just wanted to get more regard eyes on this.
NVDA is worth 100B more than the entire US energy sector!