All he had to say was these companies require a lot of capital to remain operational and many are not yet profitable, which means they will continue raising money (diluting).
Heavy long term debt on balance sheets, will continue rising until profitable
But he fails to mention how insane the demand is and the multi year backlog from these “main assets” like
$NVDA $AMD etc.
IMO making any component of these businesses more efficient is essential for right now, as many smaller companies don’t have first dibs on the best chips vs the big players
Yes years down the road only the strongest will survive but to think
$CRWV or
$IREN is going anywhere in the next few years is CRAZY
Jensen said it was his favorite investment, wish he bought more
I think he knows more than Jim here in regards to the infrastructure changes, world development in the next 3-5 years
Jim Chanos is short the neoclouds.
"It gets back to the point that we've made to clients that anybody that's just a middleman in this chain, like the data center guys are either as rights or equipment leasing companies should never trade at higher multiples than the company that controls their supply."
$CRWV $NBIS $IREN