How Expensive is NVIDIA Really? The Answer Might Surprise You...

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👨‍💼Brian Stoffel is a writer, investor, YouTuber, and financial educator. He's a teacher at heart. Brian has been investing for over a decade and has written over 4,000 articles for The Motley Fool. Brian worked as a middle school teacher in Washington, DC for over 5 years. He and his wife had a “mini-retirement” in Costa Rica and now spent a portion of their year there in a containership home. Brian plans his life and his investments around “antifragile” principles.

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[JimMcNutty]

I think you buy NVDA today for the momentum not the valuation

[roccopietrofesa]

I don't think you are accounting for the software option. Not only are they the industry leader in chip R&D, they have developed the most advanced and user friendly software packages for implementing machine learning. Its a sticky ecosystem and they provide the best hardware in the entire world. Their competitors are not even close in either category.

[michaelmiddleton]

No one knows better than Huang, the cyclical nature of the biz. So he's introduced a software support component (CUDA), which will provide regular recurring revenue and elevates switching costs.
I've held it for at least 6 years, and I don't expect NVDA to cycle out until possibly the 2nd qtr. of 2025. Regardless of the boom or bust thing with chips, I expect this to company to remain in the top 10 most valuable companies indefinitely. Huang is that much of a visionary.

[loganlasvegas]

Well it took $10B and 5 years to develop Blackwell, so not a lot of companies public or private have that kind of stout. NVDA will continue to command premium pricing and margins if AI is as big as expected. And they’re not done yet.

[Flygal]

Brian I think one thing in Nvidia’s favor in trying to beat those numbers is that they can buy up all the fab space. They can negotiate TMC etc and pay up front for the fab space. Stopping competitors from being able to build competing chips at the scale needed to displace NVDA

[citizenpunx]

I bought my mom $500 worth back in the day it’s now over $18, 000 lol

[eaviram]

I second the recommendation to follow Beth Kindig. She does understand tech. and it's worth understanding. Our family does come from tech. and this is a revolution. NVDA is no longer cyclical. It's a whole new world (with A.I.), we're at the beginning of it, and NVDA is leading the charge.

[alexng]

You are wrong that competitors can come up with a cheaper alternative then Nvidia. Nvidia is creating chips that are cheaper then its own current ones.

[shashanksharma]

It may have been cyclical in past but with AI chips, being used in data centers, it should not be cyclical in future. I’m also someone who doesn’t know Chips technology but based on AI demand, it seems they will be growing steadily.

[soup]

it took NVDA tens years to get here. It will take at least 4 years for someone to challenge their margins.

[BellTunnel]

Great video, Brian. Also, for anyone interested, Beth Kindig recently wrote an article in Forbes stating NVDA will reach a market cap of 10 trillion by 2030. She’s the bull who famously predicted in August 2021 that NVDA would exceed Apple’s market cap within 5 years.

[jasonandrews]

I keep selling off chunks of my position to keep it in check...I started selling at around $34 (split adjusted, ) and have probably sold 4 or 5 lots since. It hurts every time, but I just can't have 20+% of my net worth in one company.

[hirokitakei]

Given their current MOAT, high R&D investments and developping their softwares products, it's clear they will keep going up. On top of Huang being a visionary, this company is here to stay.
NVIDIA is the proof as to why engineers should be CEO rather than CFO taking their spot.

[brettk]

I mean will take time for Amazon or AMD or anyone to catch up the NVDA maybe years think they good for quite a while.

[wonderz]

It was the Motley Fool that led me to NVDA back in 2018. If you only own 1 stock in the next 20 years? It was NVDA! As a Motley writer, How did u miss that? I have been telling about this co to everyone I know when all they knew was Tesla, Amazon and Apple…hence it has been my largest holding but only few listened. Oh well…

[jaeyoungchoi]

Hey Brain, any plans to do some long videos where the two of you sit down and go through a company and its earning report for about an hour?? I miss those videos man

[hunterphung]

Nvidia is less cyclical it is growing its data center. It will have a complete ecosystem like google.

[Cygx]

I thought it nvidia was overvalued at 800, but now its up 50% in a couple months. Wish I bought some XD

[odoacredacalcutta]

if it's so expensive then why the average price target given by most analysts is still growing despite the pull back ?
the average is now at 150+.

[Machine]

I sold Nvidia at 400 and 600 because I kept hearing it was due for a correction 😢

Don’t know when it will slow down but it wouldn’t surprise me if it does another 2X by the end of 2025