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NVDA stock does not trade at a huge multiple. Only 25x EPS despite very rapid top line growth and a dominant position at the eve of possibly the most important
by xadhominemx 1y ago
NVDA stock does not trade at a huge multiple. Only 25x EPS despite very rapid top line growth and a dominant position at the eve of possibly the most important technology transition in the history of humankind. The market is (and has been) pricing in a slowdown.
- digitcatphd 1y agoWhat do you think is going to happen to their earnings when CAPEX slows?
- xadhominemx 1y agoTheir earnings will certainly decline or at least decelerate if capex slows. I’m just saying, if the market wasn’t pricing in a slowdown, NVDA would be trading at 40-60x next year EPS, not 25x.
- deleted 1y ago[deleted]
- SiempreViernes 1y agoSince you aren't talking about the green transition, whatever technology transition you have in mind is obviously second most important at best.
- xadhominemx 1y agoIf we get ASI it will figure out how to do the green transition for us!
- popol12 1y agoThis is peak techno-solutionism
- xadhominemx 1y agoIf we are not headed to ASI, the spending will slow down and the problem will solve itself.
- Printerisreal 1y agomost important technology transition in the history of humankind but Nvidia itself is not leading the software part? Are they selling shovels or why would they give that part of being the head develop the AGI and GOD?
- xadhominemx 1y agoThey just committed to invest $100b (!) in OpenAI and said $100b is only the start.
- baobun 1y ago> most important technology transition in the history of humankind Get real. Farming? Plow? Steam engine? Combustion engine? Electricity? Air conditioning? Computers? Internet?
- xnx 1y agoCreating a true digital brain would be humankind's greatest (last?) invention.
- justsid 1y agoBy what metric? In my opinion actually solving all of the problems we currently have and man we have a lot of them past the obvious ones like climate change, that would be our greatest achievement.
- xnx 1y agoThe optimistic thinking is that with thousands/millions of tireless 24/7 brains at work on these problems we could address more problems in biology, chemistry, physics, materials science, etc. faster. It's a bold, but not unreasonable belief.
- justsid 1y agoBut that’s not something actually actionable. This isn’t a plan, it’s pure hope that maybe potentially if we just put enough money and energy into this, it will just magically solve our problems. Call me a luddite but that’s a crazy amount of copium.
- swexbe 1y agoWhat are you talking about? It's trading at 55x EPS and 41x forward EPS.
- xadhominemx 1y agoConsensus EPS for FY27 (~CY26) is $6.40. Buy side is higher!
- deleted 1y ago[deleted]
- foobarqux 1y agoThat's 30x for earnings that will be known Jan 2027 (1 year and 3 months away). It's 40x earnings for Jan 2026 (3 months away). For reference Enron was 40x earnings for current year forward estimates early in the year of the crash.
- JumpinJack_Cash 1y ago> > the eve of possibly the most important technology transition in the history of humankind. Funnily enough when you spend some months thinking into this intensively the result is that a monetary investment into the company that will bring about the singularity / AGI is the most irrational thing one can do. If the enterprise is successful and the singularity/AGI is benign you won't need money anymore, if the experiment fail the possibility of things going rogue is very high, or even the panic from a possible series of rogue events. So for the first time the rational thing would be to either spend those money to learn poker/chess/videogames or whatever game we will play with each other to feel cool while the AI takes care of everything else, or maybe outright spend money on coke and strippers given the chance of doomsday.
- xadhominemx 1y agoThey are doing it for the love of the game, IMO