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Going through my stock app the other day I thought Nvidia market cap had to be a typo… since when is a graphics card company one of the biggest companies in the
by porknubbins 5y ago
Going through my stock app the other day I thought Nvidia market cap had to be a typo… since when is a graphics card company one of the biggest companies in the world? 800B is 4x the market cap of Intel, not that far off Apple. How many people realize this?
- sounds 5y agoBecause the market thinks Nvidia's potential for future earnings is similar to Intel, Apple, and similar tech companies (Microsoft, Amazon, Google, Facebeta or whatever-it-is). While I can guess what the collective market is thinking, it's anybody's guess. If you disagree, then short Nvidia?
- foepys 5y agoThat's assuming that the market is always rational. It might be in this case but it not always is. See the more or less recent mortgage crisis for an extreme example. I, for example, don't agree with Tesla's current valuation but I wouldn't be stupid enough to try to compete with Musk's memeing on Twitter.
- porknubbins 5y agoI’m not taking issue with the valuation. I never short tech companies that could have an unpredictable breakthrough success. For all I know they sell millions of GPUs at high prices to justify it. I’m just saying if you asked what are the biggest companies in the world I would never have guessed Nvidia.
- 1-6 5y agoNvidia has the market cornered but anyone else can do the same thing they’re doing for less. It’s just branding and being first to market at this point.
- dev_tty01 5y agoWell, clearly lots of investors are aware of this...