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I'm sorry but this must be one of the worst advice imaginable. The company itself is great, and is making a ton of money. But the share price of Nvidia is abso
by TheAlchemist 3y ago
I'm sorry but this must be one of the worst advice imaginable.
The company itself is great, and is making a ton of money. But the share price of Nvidia is absolutely pure speculative hype !
The math - in the past year, during which Nvidia suddenly found itself in a monopoly situation during a huge spike in AI interest (or / and hype), they made 60B$ in revenue (x2 from 2023), and 30B$ in net profit (x10 ! from 2023). Both numbers are huge. But ... the company is valued at 1800 B$ currently. There is this pesky little ratio that is sometimes useful, called price / earning ratio, and it gives a number around 60 here.
So in short - great company, perfect positioning, but way overpriced.