The stock is up over 200% this year. It’s on a wild run. It’s about 40% above its all time highs back in December 2021. It got that high based on mainly the back of the crypto markets. I don’t think anybody here would disagree that A.I shows much more practical uses for the global economy and I mean ChatGPT has already been more useful then blockchain ever was.
Maybe it’s just me. But I keep seeing the same comments about how CISCO still never returned to the all time highs despite growing its earnings steadily. Fair enough. I guess it’s just anecdotal for me personally working in tech. But NVDA seems to have its hands in so much stuff. Everybody talks about it like it’s a semiconductor company and that’s it. How chips are “cyclical”. These facts are true. But NVDA is also spinning the data centre to have its own cloud called DGX for AI training. It also has the omniverse which is fascinating and something that is not talked about as much.
I guess my point is. It seems like there is a lot of negativity that doesn’t really seem objective. I’m not saying one can’t objectively believe it’s overvalued based on metrics P/E ratios etc. But if you believe we are at the start of the AI revolution and are in the early innings, NVDA is far from just a semiconductor company and that’s what I believe sets it apart from the AMDS, Intels, Broadcoms.
Can the price fall from here? Of course. But do you really think in 5 years from now NVDA will not be much higher? Just wondering how many people do research on the company versus repeating ratios. It seems like a lot just are hoping for nvda to fall because they missed the boat.
Leave a Reply