AI valuations can't all be right: memory at 3-5x PE vs premium infrastructure, says Gavin Baker
rohanpaul_ai · x · 2026-09-13
- Gavin Baker (CIO, Atreides, $11B AUM) on the All-In Podcast: AI valuations are cross-sectionally inconsistent — memory makers trade at 3-5x PE and Nvidia looks cheap, while other links in the chain price in massive growth.
- A boom doesn't make every supplier a compounder; the profit pool flows to whatever is hardest to substitute, delay, or bargain down. If power/cooling/physical capacity is the bottleneck, infrastructure deserves the premium; if compute is, Nvidia and memory are too cheap.
- The ASIC narrative adds fog: Broadcom can grow fast in custom chips without capturing Nvidia's most valuable growth.
Related event: Gavin Baker: AI Valuations Can't All Be Right(2 posts)→
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