Nvidia Tries to Silence Depreciation Critics with Fresh Presentation

Nvidia recently released a presentation aimed at addressing concerns about the depreciation of its chips. The company's slide, 'Nvidia AI Infrastructure Retains Value Beyond Accelerated Depreciation Schedules,' plots the retained value of its A100, H100, and B200 chips against a 5-year accelerated depreciation curve. This implies that the values of Nvidia GPUs across generations are high enough to make the case that companies are over-depreciating their chip investments.

The presentation was met with enthusiasm from Nvidia fans, who saw it as a decisive blow to critics. However, one critic in particular, Adam Smith, had a different view on depreciation and its impact on market history. In his 1968 book, The Money Game, Smith wrote about the Great Winfield's comments on depreciation and the importance of understanding the New Market.

The Great Winfield, described as a 'tape-reading super-speculator,' dismissed Smith's concerns about depreciation, saying it was a middle-aged view. He instead emphasized the importance of younger investors who understand the New Math and the New Economics. The Great Winfield highlighted Billy the Kid's success in computer leasing stocks, which had seen earnings double and triple year-over-year.

The exchange between Smith and the Great Winfield serves as a reminder that human nature is more constant across time than any other feature. The debate over depreciation and its impact on market history continues to this day, with Nvidia's recent presentation offering a new perspective on the issue.