Big Technology Podcast · Wednesday, August 12, 2026
Paul Kedrosky contrasts the investment risk and reward profiles of companies like Intel and Nvidia within the AI sector. He implies that while some investors might be drawn to the potential for high returns from companies like Nvidia, such assumptions may not be sustainable in the long run, leading to vastly different outcomes.
“You know, you could argue that, you know, they have a moat around their business. But you know, if you're looking at the risk reward of putting money into say, Intel, versus putting money into Nvidia, those are going to be two very different outcomes.”
“And you're right, they're not going to be able to deploy that capital anywhere else. So the the argument that they're making is that they're going to deploy it into Nvidia and therefore they're going to get a 10x return.”
“And so that's that's the kind of thing that gets people excited. But you and I both know that those kinds of assumptions are not going to hold over the long run.”