Nvidia partnered with financial giants including BlackRock, KKR, Blackstone and Apollo to position its computing capacity as an investable asset class, raising questions about valuation methodologies. BlackRock CEO Larry Fink compared Nvidia’s computing power assets to the mortgage-backed securities market of the 1970s. Investors highlight the lack of experience in valuing data center-backed loans and note that GPUs depreciate on a five- to six-year schedule. Figures such as Michael Burry and Dan Alpert drew parallels with problematic market precedents like Enron and Global Crossing.
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