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It's not comparable. NVDA is heading toward ~$95 billion in operating income for the next four quarters approximately. AMZN in the first dotcom bubble crash had
by adventured 2y ago
It's not comparable. NVDA is heading toward ~$95 billion in operating income for the next four quarters approximately. AMZN in the first dotcom bubble crash had only (hefty) sales growth and was burning enormous amounts of cash to build itself out. There was no profit - and no near-term hope of a profit - to support Amazon's valuation back then. They were highly susceptible to an exaggerated crash accordingly.
At $95b in op income, you're looking at ~33 times op income for NVDA for 2025, or lower. I don't consider that a bargain but it's also not crazy expensive given the stock market valuation context + their growth + their market dominance in a critical field.