NVIDIA Joins S&P 100 Stock Market Index

[W1zzard]

With tomorrow's opening bell, NVIDIA will join the Standard and Poors S&P 100 index, replacing Time Warner. The spot that NVIDIA is joining in has been freed up by the merger of Time Warner with AT&T. This marks a monumental moment for the company as membership in the S&P 100 is reserved for only the largest and most important corporations in the US. From the tech sector the list comprises illustrious names such as Apple, Amazon, Facebook, Google Alphabet, IBM, Intel, Microsoft, Netflix, Oracle, Paypal, Qualcomm and Texas Instruments.

NVIDIA's stock has seen massive gains over the last years, thanks to delivering record quarter after record quarter. Recent developments have transformed the company from a mostly gaming GPU manufacturer to a company that is leading in the fields of GPU compute, AI and machine learning. This of course inspires investors, so the NVIDIA stock has been highly sought after, now sitting above 265 USD, which brings the company's worth to over 160 billion USD. Congratulations!



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[FordGT90Concept]

A great number of publicly traded companies have heavily inflated market caps. Judging by that graph, NVIDIA is one of them.

 

[LFaWolf]

That graph is unbelievable. This bubble is bad.

Bad? Why? AMD is doing well too. It is just a sign that new technologies are being recognized and adopted at a very fast rate.

 

[FordGT90Concept]

Both companies should be rising because they're both doing well but, what's that? A 10 fold rise in two years? Reality check: NVIDIA isn't worth $160 billion. I doubt they even made that much gross in their entire existence.

I edited, the new attached link explains the rise as "intangible assets." Same reason Tesla is way up despite never posting a profit.

I have this expression right now:

 

[Prima.Vera]

Welcome to Capitalism, where greed and shark based practices are highly promovated and appreciated....

 

[I No]

You're congratulating a company that partakes in lying (Nvidia 970), bullying(GPP) & market manipulating practices (PhysX, Gsync) to succeed.

Wow.... the eff is up with the attitude in this thread? And it just shows how narrow-sighted some of you people are. GPP doesn't apply to automotive and data centers, neither the use of the 970 neither does PhysX and G-sync have jack all to do with it. Furthermore 90% of the businesses mentioned in the article are doing close to shady stuff. There is no such thing as a clean company out there. Stop living in an utopia built on what SHOULD be right because it's not.

 

[Dave65]

You're congratulating a company that partakes in lying (Nvidia 970), bullying(GPP) & market manipulating practices (PhysX, Gsync) to succeed.

Sorry, but I have to agree with this statement, Nvidia and Intel both are as corrupt as can be, neither deserve my money.. No offence to the OP!

 

[dj-electric]

You're congratulating a company that partakes in lying (Nvidia 970), bullying(GPP) & market manipulating practices (PhysX, Gsync) to succeed.

Gratz on being brainwashed by internet heroes to think that your side is the right side in the war.
There is no right side, son.

 

[Tatty_Two]

Sorry, but I have to agree with this statement, Nvidia and Intel both are as corrupt as can be, neither deserve my money.. No offence to the OP!

It's a news piece so not the Op's personal opinion.

 

[Fourstaff]

Both companies should be rising because they're both doing well but, what's that? A 10 fold rise in two years? Reality check: NVIDIA isn't worth $160 billion. I doubt they even made that much gross in their entire existence.

I edited, the new attached link explains the rise as "intangible assets." Same reason Tesla is way up despite never posting a profit.

Company valuation is a function of what investors think it is worth. What makes people think Nvidia is worth so much?

 

[R-T-B]

Both companies should be rising because they're both doing well but, what's that? A 10 fold rise in two years? Reality check: NVIDIA isn't worth $160 billion. I doubt they even made that much gross in their entire existence.

I edited, the new attached link explains the rise as "intangible assets." Same reason Tesla is way up despite never posting a profit.

I have this expression right now:

So ford finally admits modern capitalism is confusing?

Welcome to what has been my reality for some time.

Same reason Tesla is way up despite never posting a profit.

I used to feel the same way about "potential energy" in science class. But then a brick hit me in the head, and I stopped asking questions (our school was poorly maintained).

Actually, that story is almost true... the brick just happened to be a ceiling light, and it missed me.

 

[rtwjunkie]

I tried unsuccessfully to follow the complete comment chain on this article, but it seems some posts are missing? I always am interested in these articles, being formerly in the corporate world I enjoy because the business moves, successes and failures have a lot to say about the state of our computer tech world.

What I don’t understand are the people who seem to feel hate over success. Do we not want companies involved in what we enjoy doing well? Companies on the fringe or companies doing well. Which one is even better for our love of tech and pc’s? I will take the strong company any day.

 

[TheGuruStud]

265 lolololol. Oh, boy, this is going to be great. We need a tech and housing crash badly. Mmmm, I'm gonna sit back and watch it burn when it does happen.

 

[bug]

A great number of publicly traded companies have heavily inflated market caps. Judging by that graph, NVIDIA is one of them.

But what does "inflated market cap" mean? Market cap = no of shares x price of one share. Market cap cannot be inflated simply because it's just a synthetic indicator.
On the other hand, people who confuse market cap for a company's real worth are just making up stuff and will come up with all sorts of funny stories.

 

[Xaled]

Welcome to Capitalism, where greed and shark based practices are highly promovated and appreciated....

Indeed
Very bad news for already suffering PC Gaming, now we would be getting even less frames per dollar, this ratio has been decreasing since AMD 7xxx series.

 

[Vya Domus]

Nvidia's shares ballooned way past anything even remotely realistic a long time ago. That in it's self isn't a problem , it's going to be a problem when they'll start to misfire here and there and the share price will start dropping like a stone , Jensen is playing with fire and is awfully optimistic nothing bad is ever going to happen.

Do we not want companies involved in what we enjoy doing well?

Because when their success is built a lot on speculation and they happen to go down they'll not just disappear, they will fuck up a good chunk of the industry as well and it will affect you as a consumer. It's not like we talking about it will have any effect whatsoever but I can't congratulate them either.

 

[bug]

Nvidia's shares ballooned way past anything even remotely realistic a long time ago. That in it's self isn't a problem , it's going to be a problem when they'll start to misfire here and there and the share price will start dropping like a stone , Jensen is playing with fire and is awfully optimistic nothing bad is ever going to happen.



Because when their success is built a lot on speculation and they happen to go down they'll not just disappear, they will fuck up a good chunk of the industry as well and it will affect you as a consumer. It's not like we talking about it will have any effect whatsoever but I can't congratulate them either.

Again, what does "ballooned way past anything even remotely realistic" mean? Price share is a measure of investor confidence. If investors are confident they'll get their money's worth, they'll buy. What's unrealistic about that?
I mean, short of someone manipulating the market to improve the outlook of one company, the only way to set unrealistic prices on shares would for investors to go collectively insane at the same time.

 

[The Quim Reaper]

Too bad for the mods that deleted my post, has been quoted in others replies.

Don't worry Techpowerup, Nvidia won't put you on their petty blacklist, you'll still get your review samples.

 

[bug]

Sorry, but I have to agree with this statement, Nvidia and Intel both are as corrupt as can be, neither deserve my money.. No offence to the OP!

Following that train of thought, AMD is also as corrupt as can be. But because they're underdogs, their allowance is much lower

 

[Xaled]

Following that train of thought, AMD is also as corrupt as can be. But because they're underdogs, their allowance is much lower

You cant commit a crime and defend yourself with "everybody is criminal"

AMD is not even close to nVidia. nVidia is by far the dirtiest, filthiest, most corrupt most greedy firm in the PC industry. she cheated all their way since day 1. and just getting more greedy and more.

 

[bug]

You cant commit a crime and defend yourself with "everybody is criminal"

AMD is not even close to nVidia. nVidia is by far the dirtiest, filthiest, most corrupt most greedy firm in the PC industry. she cheated all their way since day 1. and just getting more greedy and more.

I wasn't defending anyone. I was just saying, if he wants to be consistent, he probably shouldn't buy AMD either. Hell, he probably should stay away from from every publicly traded business.

 

[LFaWolf]

Both companies should be rising because they're both doing well but, what's that? A 10 fold rise in two years? Reality check: NVIDIA isn't worth $160 billion. I doubt they even made that much gross in their entire existence.

I edited, the new attached link explains the rise as "intangible assets." Same reason Tesla is way up despite never posting a profit.

You are confusing book value/assets vs market cap/stock price. Stock price is mainly speculation of investors think how well a company will do in the future, not at present time.

But what does "inflated market cap" mean? Market cap = no of shares x price of one share. Market cap cannot be inflated simply because it's just a synthetic indicator.
On the other hand, people who confuse market cap for a company's real worth are just making up stuff and will come up with all sorts of funny stories.

There you go.

 

[Assimilator]

Probably a good thing bta didn't write this post.

 

[yogurt_21]

9.7 billion in total revenue with a ~31% net profit margin aka ~ 3.04 billion in net. Looking to up the revenue by 30-50% this year (aka 13-15 billion in revenue this year) with a jump in net profit margin to ~ 45% (aka ~5.85-6.75 billion in net this year predicted)

160 Billion market cap not looking too crazy at all.

AMD's market cap is currently 15.84 billion That's against a gross revenue of 5.33 billion with a net profit margin of under 1% (.8% actually) aka 43 million in net profit last fiscal year.

share value to annual revenue for Nvidia = a multiplier of 16.49
share value to annual net income for Nvidia = a multiplier of 52.63


share value to annual revenue for AMD = a multiplier of 2.97
share value to annual net income for AMD = a multiplier of 368.37

sure sure, amd's always drowning in debt, fine. Lets compare the multipliers to Google (GOOG)

market cap 802 billion, last fiscal year revenue 110 billion, net profit 12.6 billion


share value to annual revenue for Google = a multiplier of 7.29
share value to annual net income for Google = a multiplier of 63.65

so sure the price seems a bit inflated for nvidia's revenue, but not compared to what they get to keep out of that. They are very healthy financially and have a pretty awesome net income %.

AMD is still struggling with debt but if they get out ahead of that, will have plenty of room for growth.

 

[Tatty_Two]

Too bad for the mods that deleted my post, has been quoted in others replies.

Don't worry Techpowerup, Nvidia won't put you on their petty blacklist, you'll still get your review samples.

Ahhhh but if you care to look a little closer you will see that the "Mods" deleted the words in their quotes that caused your entire post to be deleted.