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Nvidia insists it isn’t Enron, but its AI deals are testing investor faith
(www.theguardian.com)
That's such an Enron thing to say.
this post was submitted on 30 Dec 2025
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I bet Enron also claimed it wasn't Enron.
The irony that nVidia just shifted the narrative from "not enough chips" to "not enough energy" is insane.
You can do everything right and still have the curse of investor overconfidence placed on you.
Huang has been complaining for some time that doing well doesn’t result in stock gains, but the actual problem is the stock price is way too high so doing well does nothing for investor expectations.
This is when you sell shares because they no longer have any upside potential.
It sucks for companies though, but the fact is nvidia is overvalued at a 4.5T market cap.
In some ways the victim of their own success, that's just the way this system is built, for better or worse (mostly worse). The incentives drive the behaviour, but the architecture is hostile in nature, so it's hard to have different outcomes at a certain level. Infinite growth is literal cancer.
“We didn’t want to inflate our valuation with circular investings, the market made us do it! We are the victims here!!”
*Deploys golden parachute*
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he's got nothing to worry about. when they crash down to $1, trump will call it a "matter of national security" or some shit, and then bail them out, courtesy of your tax dollars and my tax dollars. because they actually want the AIs for their police state surveillance
The company doesn't care if the stock price hits $1. If the company is paying it's bills, it just continues. It's the people who hold shares that care. The company doesn't hold shares in itself.
Enron collapsed because the company financials collapsed, not because the stock price collapsed. That happened after all the bad accounting practises and hidden debt came to light. Now, in that case the shareholders succeeded in suing for their losses, but they only had a case because of the mismanagement.
The company absolutely does own shares of itself and it's ability to secure credit and just engage in business in general depends of the value of that holding.
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Enron was cooking the books hiding huge deficits, and spending the money from the workers pension funds, so no Nvidia isn't Enron, but that doesn't mean it's all good.
Enron was the absolute worst, only matched by the Bernie Madoff pyramid scheme and the Bankman Fried crypto fraud.
Saying you are better than that is a very bad look.
Joke aside, that's kind of the vibe it gives off.
You can't steal from employee pensions if you don't offer a pension
The pension was already stolen before it had a chance to exist.
Especially since they made the comparison on their own! Relevant article: https://www.wheresyoured.at/nvidia-isnt-enron-so-what-is-it/
Nvidia definitely isn't Enron. It's all of Nvidia's customers that are mini-Enrons.
Enron crashed because they were cooking their books and faking income, declaring potential profit where none existed.
That's not Nvidia. Nvidia is selling actual product as fast as they can make it at whatever price they want to charge.
Nvidia's customers, on the other hand, are the ones who have to justify buying billions of dollars of product from Nvidia and explaining how they plan to make a profit from that.
Enron crashed because they were cooking their books and faking income, declaring potential profit where none existed
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Sell chips to X
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Receive stock in X
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Value of stocks = discounted sum of future (fake) income
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Booked as an asset on the balance sheet
This is exactly like Enron but the underlying commodity isn't energy, it's compute.
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NVIDIA is producing and delivering GPUs. However this does NOT translate into income, and that's what's making it shady. These companies are paying in shares that will be worth nothing when it pops.
It depends on the customer. Microsoft, Google, Amazon all have the revenue to carry the debts they are taking on. Oracle, Chat GPT, Musk and others are waay more sketchy.
The build out is going to take billions of dollars and these companies aren’t going to see a return for at least 5 years or more. The majors can carry that kind of debt load long term even if AI doesn’t pan out. Other businesses will struggle or go under if AI doesn’t bring the returns.
The next major movers will be companies that do a lot of IT business consulting like IBM. They are going to be busy helping non IT focused firms incorporate AI into their business model.
Finally if all these data centers pan out and the US keeps oscillating between shunning Renewables or Fossil fuels every time a new party comes to office we are going to have major problems with our energy infrastructure. Think energy bills as high as your mortgage within the next 5 years. Invest in utilities or energy companies and try to put solar and some kind of storage on your home.
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If a company says they are not like Enron, it means they 1000% are exactly like Enron
Yeah. Enron's scheme was trading money back and forth with itself to inflate its value until it all came crashing down, tanking Enron.
Nvidia is at the center of a scheme involving the entire economy trading money back and forth between a few companies to inflate value, so when the scheme tanks it'll crush everybody.
Big tech is just trading the same $100b between each other to generate infinite shareholder value.
Man that reminds me of an old comic where two guys give each other the same $50,000 back and forth to eat horse shit and in the end their like, "we just created two jobs and grew GDP by $100,000!" Lol
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Remember that when the news article talks about the economy, it's mostly talking about rich people's yachts.
Obviously there are some people nearing retirement age who need their pension plans not to lose value rapidly, they do exist. But the vast majority of the money that is being discussed here, that a bubble might make or break, is millionaires and billionaires savings accounts... So when this bubble bursts and when these companies go bankrupt, to hell with the ultra rich. If we want to help out people who are struggling to live out their retirement because of the stock market collapse that will occur, let's do that, and let's just tell the billionaires to go to hell.
They are going to do a lot more damage then Enron when their bubble pops.
EDIT: LOL, found the techbro.
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Me: Come on, pop already. There are funds betting on AI bubble burst, ready for me to invest in.
If you want to get advantage from a speculative fund making a bet on a popped bubble, then you need to be already invested now, before the bubble bursts. (And also, you/your fund need to be right that it’s really about to pop now, and not later)
Once the race is over it’s too late to bet on the ponies.
Narrator: it was Enron
Nvidia is just selling overpriced premium shovels in a gold rush. They don't care if there's gold there or not.
Enron went bust by hiding debts. Making a loss is one thing, but lying about it to shareholders (and getting found out) is a one way trip out of the stock exchange.
Regurgitating Zitron with kid gloves.
https://www.wheresyoured.at/nvidia-isnt-enron-so-what-is-it/
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This guy will happily sell your soul. I don't trust a word he says.
The SP500 is starting to look like NVIDIA -> companies NVIDIA is investing in -> everyone else. Its starting to get NVIDIA heavy. If they go down...SP500 is gong to look terrible.
It's a bad position to be in. If they crash it will be bad, but if they keep growing and then crash it could be worse.
Perfect place to be in to get a bailout. Nothing better than to pump it to the max and try and make it some one else's problem
America is about to learn the lesson Nortel taught Canada.
"We are not Enron, damn it! They were an energy company, we make computer parts!"
Wall Street is Enron now. It’s a house of cards
If you have to protest the insinuation as the CEO of a company in a public forum...Then I think the accusation has already found enough root to at least contain more than a grain of truth. The phrase "He doth protest too much" comes to mind.
The bigger they are, the harder they fall.
They’re right in the sense that it isn’t Enron; they’re gonna make it way worse.
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