Tuesday, May 30th 2023
NVIDIA's Value Now Exceeds $1 Trillion
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.
Sources:
Reuters, VideoCardz, Ebay (Image Source), BBC News
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.
58 Comments on NVIDIA's Value Now Exceeds $1 Trillion
:)
Now we just need another GPU manufacturer now that nvidia hates gamers :laugh:
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.
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.
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.
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.
1. Go to SEC's "Edgar" lookup website: 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: www.sec.gov/Archives/edgar/data/1045810/000104581023000060/xslF345X03/wf-form4_167909768797475.xml
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.
Y'all enjoy being ripped off apparently.
Tango
Foxtrot
!!!!!!!!!
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.