Nvidia is at the center of the AI technology race, with its GPUs powering everything from large-language models to AI training. The debate over how fast AI chips depreciate has investors and Wall Street talking, with concerns raised by Michael Burry about unrealistic assumptions. The depreciation schedules being used by major tech companies for Nvidia’s GPUs could have significant implications for earnings and expenses in the future. The method of depreciation used, whether accelerated or straight-line, is a key factor in determining the impact on financial statements. Analysts remain optimistic about Nvidia’s stock, with a “Strong Buy” rating and a mean price target of $252.67, representing a 43% upside potential.

Read more at Barchart: How Fast Does an AI Chip Depreciate, and Why Does It Matter for Nvidia Stock?