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Nvidia's Surge Stokes Talk of a Bubble
- xqcgrek2 3y agohttps://archive.is/s4WHC https://archive.is/s4WHC
- nabla9 3y agoNvidia is not a not a bubble stock (= prices above their value). P/E numbers are reasonable. Nvidia is high volatility stock (large price fluctuations in a short period of time). Any sing of lower server hardware investment from top-5 customers and the price is going to tank. >Nvidia shares have fallen by 50% or more on 14 separate occasions since the company went public in 1999, according to Dow Jones Market Data. Most recently, the stock dropped 56% over a two-month period in 2018 and again over an eight-month period that ended in 2022.
- hodder 3y agoP/E is just a very very rough shorthand tool for a DCF. A DCF looks at all forward cashflows and discounts to present. It is very difficult to predict the future for a chip company so the dispersion is large, but at a 2.3T mcap, a lot must go right for the price to not be overvalued. A lot of things are going very right for them however.