Nvda and law of large numbers

Very Similiar to qcom on 99 but Nvda’s mkt cap 18 times bigger. The moves stunning beyond belief but the earnings and rev growth for a company this size has never been seen . But overall earnings this qtr have been mediocre at best. The Mkt’s p/e of 22 with 5% rates is eye popping .
 
The problem with all this bubble talk is NVDA AMD AVGO SMCI all have actual revenue & earnings gains. Most of the stocks from the 1999 collapse all had negative infinity P/E ratios. JDS Uniphase never made a nickel in its entire existence.

The crappy bubble-like companies pretty much went public in 2020 & 2021 as SPACs and they have mostly been destroyed by the rate hikes. Unfortunately some Fintechs that don't make any money are still around.
 
So if nvda did not exist what technology would we use for AI?
9
what ab⁸out data centers, there is not other chip but theirs dd 484.84⁹9
SammyJ said:
Very Similiar to qcom on 99 but Nvda’s mkt cap 18 times bigger. The moves stunning beyond belief but the earnings and rev growth for a company this size has never been seen . But overall earnings this qtr have been mediocre at best. The Mkt’s p/e of 22 with 5% rates is eye popping .
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So basically since they have revenue and profits there is only upside to infinity........


The thing is no one knows what will break the markets this time. If you go back now you can say ohhh the reason for the dot com collapse was because these companies didn't have earnings or revenue....today we can say ohhh these tech and AI companies have earnings and growth which they do, but what others fail to notice is that what ever it is that is going to break these top few companies will be something outside the conglomerates understanding. Meaning it will be an external economic headwind persay.... ..

I mean to say a company is going to keep on going only 1 direction forever is a bit Ludacris. Eventually like I said law of large numbers take over...the amount of earnings and profits a company like nvda needs to sustain its stock price will be more of an obstacle each day its adding literally hundreds of billions in market capitalization a month
 
S2007S said:
So if nvda did not exist what technology would we use for AI?
9
what ab⁸out data centers, there is not other chip but theirs dd 484.84⁹9




So basically since they have revenue and profits there is only upside to infinity........


The thing is no one knows what will break the markets this time. If you go back now you can say ohhh the reason for the dot com collapse was because these companies didn't have earnings or revenue....today we can say ohhh these tech and AI companies have earnings and growth which they do, but what others fail to notice is that what ever it is that is going to break these top few companies will be something outside the conglomerates understanding. Meaning it will be an external economic headwind persay.... ..

I mean to say a company is going to keep on going only 1 direction forever is a bit Ludacris. Eventually like I said law of large numbers take over...the amount of earnings and profits a company like nvda needs to sustain its stock price will be more of an obstacle each day its adding literally hundreds of billions in market capitalization a month
More...

I’ve seen all the bubbles the last 40 yrs . Believe me this is a bubble . But as all bubbles nobody knows when it ends . In the meantime it bankrupts millions who try to short it. A former bear who lost everything shorting decades ago told me when he’s bearish he goes to cash and no longer shorts . Look at the last 2 plus yrs . When we fell from 4800-3500 it took almost 1 yr . But there was I bet 30-50 big rallies in between. This big run the last 7 months has had no more than a few days in a row down . I can make a case Apple the most overvalued stock on the planet in relation to growth . Zero to negative growth last 2 yrs yet 30 p/e . Wall Street as always found another hype vehicle to ride in AI. It’s hard to believe with $20 trillion of wealth added to mkts in last 15 months and home prices at all time highs fed can lower rates . The asset bubble is as big as any in history .
 
And not just NVDA but others like SMCI - up more than three times as much so far this year:

! NVDA v SMCI.png
 
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