- Most big tech companies are investing in data centers using operating cash flow, not levering it
- The hyperscalers have in recent years been tweaking the depreciation schedules of regular cloud compute assets (extending them), so there's a push and a pull going on for CPU vs GPU depreciation
- I don't think anyone who knows how to do fundamental analysis expects any asset to "keep chugging for a decade without issue" unless it's explicitly rated to do so (like e.g. a solar panel). All assets have depreciation schedules, GPUs are just shorter than average, and I don't think this is a big mystery to big money on Wall St
- Most big tech companies are investing in data centers using operating cash flow, not levering it
- The hyperscalers have in recent years been tweaking the depreciation schedules of regular cloud compute assets (extending them), so there's a push and a pull going on for CPU vs GPU depreciation
- I don't think anyone who knows how to do fundamental analysis expects any asset to "keep chugging for a decade without issue" unless it's explicitly rated to do so (like e.g. a solar panel). All assets have depreciation schedules, GPUs are just shorter than average, and I don't think this is a big mystery to big money on Wall St