I think the 25% residual-value guarantee is both the foundation and the biggest risk of the deal. It gives lenders confidence to finance massive GPU deployments, but the real question is whether these chips will still have meaningful value when the loans mature in 3–5 years.
I’m encouraged by the fact that older $NVIDIA(NVDA)$ GPUs like the A100 are still being used, while CUDA keeps extending the useful life of existing hardware. But unlike cars or aircraft, there isn’t a mature secondary market for obsolete GPUs, so depreciation risk remains difficult to price.
For me, the structure is bullish for AI infrastructure in the near term, but I wouldn’t treat the guarantee as risk-free. I’d rather invest in companies with strong contracts and improving cash flow, instead of relying purely on future demand or asset values.
@Marktomarket @TigerClub @TigerStars @Tiger_comments
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