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It's got nothing to do with rewarding anyone. People are buying nvda because they think the company is worth a lot because future earnings are going to be much
by danielmarkbruce 3y ago
It's got nothing to do with rewarding anyone. People are buying nvda because they think the company is worth a lot because future earnings are going to be much higher than today because demand for their products will be extremely high. They expect many dollars to flow back into their pockets from such purchases. They aren't trying to line Jensen's pockets, they are trying to line their own.
There is nothing wrong with that logic. NVDA are extremely well placed with their chips and cuda. Demand is high. It doesn't appear to be going anywhere but up. Their competitive position is good. Maybe the price is too high, but it's not anything even approaching a meme stock. There are real fundamentals behind that valuation.