NVIDIA's Value Now Exceeds $1 Trillion

[thesmokingman]

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.

It's not hard, buy low sell high. All things that go up will come down, then up again, rinse repeat. No stock will stay in the stratosphere and Ngreedia is something ridonkulous like 200 PE ratio.

I bought AMD between 2 and 3 bux, like 5K shares of it lol. Buy low sell high. Buy when everyone is crying tears. That means the last buy cycle was the last drawback.

 

[Icon Charlie]

Yay??? That is about how enthused I am.

 

[AusWolf]

If I see one more post saying "this is just how the GPU market works" or "everything is more expensive, why hate on Nvidia", I'm gonna headbutt the desk in front of me.

 

[mama]

If I see one more post saying "this is just how the GPU market works" or "everything is more expensive, why hate on Nvidia", I'm gonna headbutt the desk in front of me.

Yes, but don't forget: "If you buy more [GPUs] you pay less". If that statement doesn't tell you Nvidia has abandoned gamers for greener pastures nothing will.

 

[Timbaloo]

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.

Yahoo reporting a PE ratio of 626.35 for AMD right now

 

[pavle]

Since the wisdom of this world is foolishness and men seek intelligence in some boxed automatons, let the greedy fools enjoy their short lived bubble.

 

[DemonicRyzen666]

well, Nvidia is becoming the next Apple anyways.

 

[Lew Zealand]

Yahoo reporting a PE ratio of 626.35 for AMD right now

Yikes! I looked up Intel and theirs is undefined as the E section is negative. Oops. So these numbers are highly variable and kind of a poor measure as they're dependent on recent profit swings.

 

[dragontamer5788]

Yahoo reporting a PE ratio of 626.35 for AMD right now

While I'm sure that NVidia and AMD are here to stay for the long term, I don't like their valuations.

I get that PE ratio is just a metric. But its one of the better metrics I've heard of. We're only buying these companies because they make money (ie: buying shares means buying votes + a slice of the dividends of these companies). Or... because we expect them to make money "some time in the future". NVidia made plenty of money during a year when everyone else is losing money (or making less money). But the stock price skyrocketed far in excess from what is reasonable.

AMD is also a meme-stock, IMO. It may have a solid business model, but PE of 600+ (albeit from an unfortunate decline this year) is silly. Even last year, when revenues were good, AMD never had a good PE ratio. I think people will be disappointed that the promised 5x to 10x growth doesn't occur with these companies.

I mean, one of these meme stocks will grow 500% for reals. But not all of them will. In fact, most will stay roughly the same size, and maybe just as many will go go bankrupt (see BBBY for a recent meme stock example of bankruptcy).

 

[RegaeRevaeb]

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

I think you've got that backwards, Mate, Nvidia's in you. ;-)

Anyway, I've been wondering if the company's value can be described as Huang's Law based on Jensen's arguably apparent ambition.

 

[R0H1T]

I mean, one of these meme stocks will grow 500% for reals.

Better than meme coins I guess, if that's any solace?

Because these are legitimate businesses at the end of the day, albeit not all that "consumer friendly" as they probably could be!

 

[dragontamer5788]

Better than meme coins I guess, if that's any solace?

Because these are legitimate businesses at the end of the day, albeit not all that "consumer friendly" as they probably could be!

I make jokes on how meme-coins are immune to these issues because they don't make revenue and everyone knows they won't make revenue.

Meanwhile, companies are tethered to the real world and eventually go either bankrupt, or issue a dividend (when they finally run out of ideas of how to make more money). When companies start handing out free money 5, 10, 20 years from now, people are going to be happy to be holding onto their tickets for a slice of that free money.

If you're trading stocks and have forgotten about how dividends work (literally a promised slice of the profits), or how bankruptcy works (ie: the bondholders liquidate the company, equity holders go to $0), you're in for a surprise when these things happen. The stock price varies wildly because in practice, people forget that these things are real-world entities with real-world consequences however. But eventually reality always settles in.

If its a growth company, having a vote for the board to decide upon the corporate strategy and corporate politics is hugely valuable. Maybe not to the passive investor, but to the active investors who attend meetings and such. Even if the company isn't issuing a dividend yet, the vote has value to steer the company in a direction. Later, in bigger companies where there's so many votes that its nearly impossible to be an activist investor... those bigger companies tend to issue dividends and offer a guaranteed slice of profits.

 

[Anymal]

The more you buy, the more you save. Genius!

 

[wheresmycar]

The more you buy, the more you save. Genius!

He's a cheeky bugger. Never trust a man in a shiny new leather jacket.

What he should have said was: "the lower the MSRP, the more we sell, and you save"

 

[Fluffmeister]

Sadly with the competition also milking the market with their mediocre releases... Nvidia have free reign, ultimately credit to the ex-AMD employee for creating a market leader and naming it accordingly.

 

[JAB Creations]

That is one high horse that looks a lot like the NFT fraud.

 

[Anymal]

Not worth any more...

 

[Nhonho]

Not worth any more...

Why?

 

[Anymal]

Why?

979,70B

 

[QUANTUMPHYSICS]

WE ARE GOING TO THE MOON!!!

For all the people who hate Nvidia....and their success...

TOUGH COOKIES.

 

[Rakhmaninov3]

Public corporations in general are the bubble this time around. Diversify or die!

 

[droopyRO]

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

I see no issues. PC gaming is cheap this days, plenty of RX 6600 on offers for around 200Euros/210USD. 1080p 144Hz IPS/VA monitors are less than 200$. CPU's like Ryzen 5600 or Intel 12300 are about 150$. Games are free each week on Epic, and there are plenty of sites with discounted games and bundles.

 

[wheresmycar]

I see no issues. PC gaming is cheap this days, plenty of RX 6600 on offers for around 200Euros/210USD. 1080p 144Hz IPS/VA monitors are less than 200$. CPU's like Ryzen 5600 or Intel 12300 are about 150$. Games are free each week on Epic, and there are plenty of sites with discounted games and bundles.

Yep,
£120 Ryzen 5600
£200 RX 6600
Cheapy cheapers!!

Problem is some or most game "performance enthusiasts" don't want console level performance... we've been spending way more to overcome skimped graphics and have travelled far and wide to adopt higher resolution panels to get the best visually stunning quality available. I still count my blessings not having upgraded to 4K from 1440p.... probably the best decision i've made! At 1440p on ULTRA settings in a couple of games i play (or will play in the long run), the 6600 won't cut it (not even close). But it is a good budget card for the right setting (subjective)

 

[AusWolf]

Yep,
£120 Ryzen 5600
£200 RX 6600
Cheapy cheapers!!

Problem is some or most game "performance enthusiasts" don't want console level performance... we've been spending way more to overcome skimped graphics and have travelled far and wide to adopt higher resolution panels to get the best visually stunning quality available. I still count my blessings not having upgraded to 4K from 1440p.... probably the best decision i've made! At 1440p on ULTRA settings in a couple of games i play (or will play in the long run), the 6600 won't cut it (not even close). But it is a good budget card for the right setting (subjective)

That's why I don't want to move from 1080p. If not willing to buy a £1000+ graphics card to feed a resolution that I never needed in the first place means I'm not an enthusiast, so be it.

I've reached a stage in my life when building a PC, any kind of PC, brings me more happiness than having the fastest parts in the world. "More hardware is better than fast hardware" is my motto now.

 

[wheresmycar]

That's why I don't want to move from 1080p. If not willing to buy a £1000+ graphics card to feed a resolution that I never needed in the first place means I'm not an enthusiast, so be it.

I've reached a stage in my life when building a PC, any kind of PC, brings me more happiness than having the fastest parts in the world. "More hardware is better than fast hardware" is my motto now.

I'm glad you're still on 1080p. Still a great RES for gaming. Problem is, once you go 1440p theres no turning back (yep i'm stuck on it for life). One thing is certain, outside of televisions i ain't touching 4K, PERIOD! (subject to review in 01 January 2073)