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NVDA is valued at $3.5 trillion, which means investors think it will grow to around $1 trillion in yearly revenue. Current revenue is around $35 billion per qua
by dismalaf 2y ago
NVDA is valued at $3.5 trillion, which means investors think it will grow to around $1 trillion in yearly revenue. Current revenue is around $35 billion per quarter, so call it $140 billion yearly. Investors are betting on a 7x increase in revenue. Not impossible, sounds plausible but you need to assume AMD, INTC, GOOG, AMZN, and all the others who make GPUs/TPUs either won't take market share or the market will be worth multiple trillions per year.
- kimbler 2y agoI thought the valuation of public companies at 3x revenues or 5x earnings has long since sailed?
- dismalaf 2y agoTech companies are valued higher because lots of people think there's still room for the big tech companies to consolidate market share and for the market itself to grow, especially as they all race towards AI. Low interest rates, tech and AI hype add to it. Funny timing though, today NVDA lost $589 billion in market cap as the market got spooked.