P/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 futur

P/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.