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0 pointsthrowaway677433d ago0 comments

Or their continued collective inability to predict or manage supply and demand, it happens repeatedly and previous events were very minor in comparison... The other obvious reason is profiteering but pretty much impossible to prove.

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cm21873d ago

They are public companies, their bottom line isn't exactly secret. The only company that is really squeezing the market in term of prices is nvidia and they aren't the production bottleneck.

By the way, interesting podcast on that topic: https://www.youtube.com/watch?v=mDG_Hx3BSUE

josephg3d ago

> The other obvious reason is profiteering

When supply is constrained, widgets to get sold to whoever is willing to pay the most. It’s capitalism, baby. Arguably this is a good thing, because the limited resources are allocated to the people who can create the most value from them. And high prices provide an economic incentive to bring more supply online.

Nvidia is making big profits right now because they don’t have a lot of competition for their fancy AI chips. The prices will come down when they have more competition.

throwaway67743OP3d ago

That only works if the market is not controlled by basically 3 vendors and if the market isn't also pretty much impossible to break into. The value proposition is tenuous at best, the real value is being produced in other arenas, not this one.

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