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"In the short run, the market is a voting machine but in the long run, it is a weighing machine."
by scrlk 3y ago
"In the short run, the market is a voting machine but in the long run, it is a weighing machine."
- TheAlchemist 3y agoExactly this ! And as somebody with a significant short position, I would add - "The market can stay irrational longer than you can stay solvent" ! Their numbers for this and next Q are absolutely amazing. It's also quite "refreshing" - a company with great product, almost without competition (so far - it will come real quick). And fun part being their main advantage is probably CUDA and not even the chips itself (which by the way they don't manufacture - they "only" do the design). But still - even with those numbers, and even with this pace of growth (both being absolutely not sustainable, and will probably reverse hard next year) - the valuation doesn't make any sense, especially given the current interest rates.
- slashdev 3y agoYeah, there is no world where Nvidia grows into this valuation. It would have to be bigger than the entire semiconductor business today by itself. If you think AI can bring that much growth, well then it could happen, but it seems extremely unlikely to me.