Nvidia is now a $1T company

Great news for another new $1TN dollar company, however in [0]<p><i>&quot;Market cap stories (and price fluctuation stories generally) mostly aren&#x27;t substantive enough to make interesting HN threads. They just turn into generic discussions about the underlying company or currency or whatever, and those are too repetitive to be interesting.&quot;</i><p>This one is no exception, with such threads should also apply to this one. Just like it did with Tesla and Facebook about them reaching $1TN. Right?<p>It is essentially a &#x27;horse race story&#x27;.<p>[0] <a href="https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=28990451" rel="nofollow">https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=28990451</a>

Wow, 213x P&#x2F;E ratio.<p>To put this into context with other large tech companies:<p><pre><code> P&#x2F;E MARKET CAP Salesforce 1,036x $0.2T AMD 519x $0.2T NVIDIA 213x $1.0T Amazon 293x $1.25T Microsoft 35x $2.4T Meta&#x2F;FB 33x $0.7T Apple 30x $2.7T Google 27x $1.5T TSMC 16x $0.4T Samsung 10x $0.3T </code></pre> EDIT: &quot;P&#x2F;E&quot; ratio is the Market Cap &quot;Price&quot; &#x2F; Earnings the company generates. E.g. Samsung is generating $30B in earnings (not revenue, earnings), investors are valuing Samsung to be a $300B company. That means investors see Samsung is worth 10x P&#x2F;E

Good stuff. Rode it all the way up from 2017 and now I will sell.

Maybe someone can explain. Why hasn’t AMD come out invested $10 billion, poached the necessary engineers from Nvidia, Facebook etc and expanded into the AI space? How much of an advantage does nvidia have when it comes to cuda ?

the fact that NVDA has a larger market cap than basically <i>all other chip manufacturers</i> combined is hilarious. big TSLA energy here

What happens when TSMC wants more money or Intel enters the bidding war for already limited fab space?

It makes me a bit sad to hear NVidia is that successful. I&#x27;m working with their Jetson SoM product line professionally and was suffering from their bad support on several occasions. I hoped that their bad support would translate into them falling back.

Total Real Returns Chart for NVDA: <a href="https:&#x2F;&#x2F;totalrealreturns.com&#x2F;s&#x2F;NVDA" rel="nofollow">https:&#x2F;&#x2F;totalrealreturns.com&#x2F;s&#x2F;NVDA</a> (with dividends reinvested and inflation adjusted). It&#x27;s been a bumpy ride since 1999! Trendline is quite positive but you&#x27;d have to have some real conviction to hang on with that volatility.<p>Comparison chart with NVDA in red, TSMC in blue, diversified semiconductor industry ETF in green, AMD in orange: <a href="https:&#x2F;&#x2F;totalrealreturns.com&#x2F;s&#x2F;NVDA,TSM,SMH,AMD" rel="nofollow">https:&#x2F;&#x2F;totalrealreturns.com&#x2F;s&#x2F;NVDA,TSM,SMH,AMD</a>

Just a reminder that various AI algorithms have significant influence over markets to the point that it has by proxy fundamentally changed world culture in significant ways.<p>Everyone looking at the P&#x2F;E ratio doesn&#x27;t realize that this isn&#x27;t simply a speculative bubble. Rather, this is a collective superintelligence bootstrapping itself, the market will just become another data pipeline at that point.

I did a rough calculation and came up with a current value of $80bn for Nvidia&#x27;s offer for Arm based on the current Nvidia share price. An expensive regulatory loss for Masa given Arm will probably float for a lot less.<p>Of course had the takeover gone ahead then its likely that Nvidia would be even more valuable - unless you take the view that Arm would have been a distraction for Nvidia.

Isn&#x27;t avoiding losing any money the best case scenario for people who buy now?<p>Even for people within the company, the pie is not getting any bigger so the only game in town is to become the best skilled politician to try and increase one&#x27;s own slice.

I&#x27;ve sold my stock, so it will obviously keep going higher. That being said, I don&#x27;t see how it&#x27;s a sustainable price, it has massive P&#x2F;E and Price to Sales ratio. In the past when a stock finally hits the $1 or $2 trillion mark the stock will give it up relatively quickly before it finally reclaims it for good. AI is the new &quot;blockchain&quot; in terms of the level of hype it is getting where every company now can mention it and get a 5% jump in their stock price, to me that means we&#x27;re getting closer to a saturation in the hype.

See one other small cap company benefiting out of this nvda upside because of AI and GPUs sale.<p>SuperMicro(SMCI) is up 10x is last 2 years with most growth recently.

I would be that Nvidia is underpriced by the market. AI apps are still in the infancy and we are just gonna see more demand emerge.

It may continue up to 1.25T or so, but the current price is absurdly overvalued at 37x sales. Even with the stellar guidance they gave, at best, the company is worth 0.5T. It may not go down that much, but folks buying here for the long term are in for disappointment.

Time to purchase some puts

Anyone else annoyed by the title not meaning 1 Tera dollars?

Sooner or later we&#x27;ll have to pull Facebook out of FAANG. Nvidia seems like a worthy replacement.

Let&#x27;s break up this company then. Too big.

Speaking of trillion dollar companies, how is Apple the most valuable one? Their devices are dumb as bricks. Apple is do bad at AI that they can&#x27;t even get autocorrect right on the iPhone. They are completely out of their element in the age of LLM&#x27;s. Microsoft&#x27;s business was bulletproof before investing in OpenAI but now it should be more valuable than Apple.