NVIDIA's Value Now Exceeds $1 Trillion

[T0@st]

NVIDIA has recently joined an elite bunch of publicly listed USA companies with valuations of $1 trillion (or more) - Team Green's share price moved beyond $412 today (May 30), having climbed by more than 30% over the past week. The company's stock value has been reported to have tripled in the span of eight months - this performance surprised a certain subset of financial analysts - having predicted (earlier this year) an overall industry downturn in demand for enterprise hardware. Back in April HSBC raised their recommendation on Nvidia stock to "Buy," the cited reason being an increased uptake of AI processing platforms.

NVIDIA's overall revenue growth was flat in 2022 with profits halved - this led to slightly reduced wages for parts of the executive team (most notably CEO Jensen Huang), but the multinational technology company's fortunes are set to turn around significantly over the course of this current financial year (2023-2024). Intel and AMD are slowly catching up with the market leader in the field of AI processing, with the development of rival technology. It will be interesting to see whether demand for NVIDIA AI GPUs will continue to grow, when alternative products hit the market.



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[catulitechup]

 

[freeagent]

Sweet!

Now we just need another GPU manufacturer now that nvidia hates gamers

 

[Deleted member 229121]

He really is Dr Evil though, despite his fashion sense being more Frau Farbissina.

 

[phanbuey]

This is going to end so well for all the bag holders - definitely not a bubble.

 

[Deleted member 229121]

I got my popcorn on standby for the correction

 

[dragontamer5788]

I got my popcorn on standby for the correction

Yahoo Finance reporting a PE Ratio of 210.92, other sites estimating 230 or higher.

IE: at the current level of NVidia profits, it would take 210-ish years before NVidia profits made up the value of the company. Typical companies are closer to 25-years to 30 years. Tech companies ("priced to grow") are ~50 years (If profits double 5 years from now, then the company pays itself off in ~28 years or so).

At 230 PE Ratio, if NVidia "only" doubles their profits next year, and all years from there on out, they will pay back themselves in 120 years. This is a stock that's priced as if its going 3x to 5x to maybe 10x more profits in the short term.

 

[thesmokingman]

Time to take them profits..

 

[R0H1T]

Yes, yes all is fine ~

Spoiler

 

[robb213]

I actually sold off my shares last Friday. Time will tell if it was a good decision or bad. I'd rather take the 300%+ profit than waste the opprotunity like the last correction $NVDA had last year where I could call at even cheaper with more money; debt ceiling nonsense is scary.

this led to slightly reduced wages for parts of the executive team (most notably CEO Jensen Huang)

I voted to reduce his pay in the annual shareholder vote the other month He makes more than enough as is, like every other C-suite executive.

 

[dragontamer5788]

I'd rather take the 300%+ profit

No one can be mad about 300% profit. Even if you "could have made" 1500% profits, taking your profits is fine.

 

[Tomgang]

So I have a plan, an evil plan to boost Infact.

It all starts with me buying one of these things. Look may very.

Then for my new evil empire... Ops I mean new costumer friendly company I need a logo with a slogan.

I need brand watermark to.

And then I just need to wait a few decades and I will be a trillioner and the world will be mine.

 

[THU31]

It should be Jensen's face on that trillion-dollar bill. Team Greed!

 

[64K]

It's relative though. If you had bought in Oct 2022 when Nvidia Shares were at their low point (which the vast majority didn't because the Tech Sector looked gloomy indeed at that time) and sold today then you would have seen a 300% profit. For people who owned shares a year ago then they would be seeing a 115% profit if they sell their shares today. Most won't sell though. They will expect the share value to go up forever. You never make a penny of profit on paper. You only make a profit when you sell.

We can do the same with AMD stock. If you had bought at the low point of $1.60 a share around 5 years ago (which almost no one did because it looked like AMD would never recover) and you sold today at $125 then you would have seen a profit of about 7,800%

In reality the Stock Market is just like a Casino for the average investor. Never gamble with more than you can afford to lose.

As far as the new one trillion dollar valuation for Nvidia goes. It will last and probably increase as long as there is such a tremendous rush to utilize AI by Big Business mostly to replace employees with AI in the future.

 

[oxrufiioxo]

This is going to end so well for all the bag holders - definitely not a bubble.

Sweet!

Now we just need another GPU manufacturer now that nvidia hates gamers

No matter how you look at it us diy pc builders are going to be screwed honestly. Nvidia cares more about AI and AMD makes a lot more from consoles/CPUs meaning we are F'd

 

[Nhonho]

If the Nvidia's CEO was the current Intel's CEO (Pat Gelsinger), how would Nvidia's finances be now?

Nvidia has achieved this dominance because it has good hardware and software. While AMD doesn't do VERY WELL in the software field too (for its hardware), it will never take off.

 

[Fluffmeister]

And to think, some here thought they were screwed because the dinosaur Intel wasn't going to give them a x86 license.

 

[Ayhamb99]

If the Nvidia's CEO was the current Intel's CEO (Pat Gelsinger), how would Nvidia's finances be now?

Probably would not have reached that 1 Trillion goal, but until now i still think that Pat Gelsinger is still in the process of digging Intel out of the hole that it dug itself in during their period of stagnation, so can't really say for sure.

 

[Nhonho]

Probably would not have reached that 1 Trillion goal, but until now i still think that Pat Gelsinger is still in the process of digging Intel out of the hole that it dug itself in during their period of stagnation, so can't really say for sure.

I think he would have already bankrupted Nvidia. I don't think it's unlikely that Intel shareholders will fire him in a few months.

And to think, some here thought they were screwed because the dinosaur Intel wasn't going to give them a x86 license.

To make a modern x86 CPU, a company needs to license thousands (or millions) of patents from Intel and AMD.

He really is Dr Evil though, despite his fashion sense being more Frau Farbissina.

And he said to Frau Farbissina "We're not so different, you and I".

 

[kondamin]

I hope for Jensen he has some stock he's allowed to sell at the moment so he can get a nice nest egg before retiring

 

[64K]

I hope for Jensen he has some stock he's allowed to sell at the moment so he can get a nice nest egg before retiring

The last I read Huang owns around 95 million shares of Nvidia stock currently valued at around 38 billion dollars. How much he could sell I have no idea but I don't think he would sell right now anyway.

 

[dragontamer5788]

The last I read Huang owns around 95 million shares of Nvidia stock currently valued at around 38 billion dollars. How much he could sell I have no idea but I don't think he would sell right now anyway.

Its actually super easy to lookup. I'll walk you through the steps.

1. Go to SEC's "Edgar" lookup website: https://www.sec.gov/edgar/search-and-access

2. "Form 4" is the buy/sell insider trading form.

3. Search for "Huang", specifically "HUANG JEN HSUN". Form 4

4. Sort by date. Pick the most recent form.

This gives you this link:

SEC FORM 4

86.5 million shares of NVidia, mostly through indirect means (partnerships and trusts). Huang "only" directly owns 7.8 million shares, as of 3/15/2023 (when Huang sold 72819 shares, his most recent insider-trade).

A 60-million pile of shares is noted as "3. The shares are held by Jen-Hsun Huang and Lori Huang, as co-trustees of the Jen-Hsun & Lori Huang Living Trust, u/a/d May 1, 1995 (the "Trust"), of which the Reporting Person is a trustee."

So I guess that pile technically includes wifey. Depends on how happy she is before he can touch that pile.

 

[caroline!]

I love how everyone complaining about the company being bad or whatever is using a card with real-time gimmick tracing right now.

Y'all enjoy being ripped off apparently.

 

[mechtech]

Whiskey
Tango
Foxtrot
!!!!!!!!!

 

[QUANTUMPHYSICS]

And as I've been in NVIDIA since 2017, I'm so thankful!!!