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I don't necessarily agree. > Stock prices are entirely based on what people think they are worth. Are are priced on what people think they might be work in th
by qwytw 3y ago
I don't necessarily agree.
> Stock prices are entirely based on what people think they are worth.
Are are priced on what people think they might be work in the future current financial figures don't really matter that much compared to growth.
And the market is pricing in extremely high revenue growth (and also very high margins). So far Nvidia seems to be delivering. Their forward PE went down several times and it's now "only" 30. A few more quarters like that and the current stock price might seem cheap even by traditional standards.
Obviously it's a risky bet but I don't see what's illogical about it?