The Absurdity of Nvidia's Valuation

In this video, we delve into the fascinating world of Nvidia, the semiconductor company that has taken the market by storm. With a staggering market cap of $750 billion, Nvidia has become the 6th most valuable company globally, surpassing giants like Berkshire Hathaway, Meta, and Tesla. However, the intriguing part is that despite its impressive market capitalization, Nvidia doesn't even rank in the top 100 in terms of revenue and net income.

Join us as we explore the valuation of Nvidia, which becomes even more astonishing considering the current historic chip glut and the drastic decline in PC sales over the past two decades. Despite these challenges, Nvidia's revenue has dropped nearly 30% since its peak last year, and its net income has been halved due to falling GPU prices.

We'll also examine the unique phenomenon of "pandemic round trips" experienced by many technology stocks, including Nvidia. While the company faced a 65% decline in share price and diminishing profits in 2022, its stock has more than doubled in recent months, nearly reclaiming its pandemic highs. Surprisingly, this rally can be largely attributed to the hype surrounding Chat GPT and generative AI, as generative AI models heavily rely on Nvidia's graphics cards for their immense computing power requirements.

Drawing parallels to Cisco, the internet infrastructure giant of the dot com era, we analyze the similarities between Nvidia's position today and Cisco's during the late 90s and early 2000s. Cisco experienced an explosive increase in revenue as companies scrambled to connect to the internet, leading to an unjustifiable bubble in its share price. When the bubble burst, Cisco's stock plummeted by 90% and has struggled to recover even after two decades.

The question arises: will Nvidia suffer a similar fate, or is this time different? Join us as we explore the prospects and potential risks associated with Nvidia's soaring share price and evaluate whether it can withstand the test of time and market fluctuations. Discover whether Nvidia truly holds the key to benefiting from the forthcoming AI gold rush or if caution is warranted.

Don't miss this insightful analysis of Nvidia's past, present, and future. Like and subscribe to our channel for more in-depth discussions on the latest trends and developments in the tech industry.



#Wallstreetmillennial #ai #nvidia #chatgpt

––––––––––––––––––––––––––––––
Creative Commons — Attribution-ShareAlike 3.0 Unported — CC BY-SA 3.0
––––––––––––––––––––––––––––––

0:00 - 2:45 Intro
2:45 - 5:30 What Nvidia does
5:31 - 8:03 The bubble pops
8:04 Overhyped?

[profdc]

Now that Jim Cramer has valued NVIDIA at $10 trillion, I'm expecting NVIDIA's imminent collapse.

[TheRealJellyBomb]

Don't forget: the market can stay irrational longer than you can stay solvent. Best to stay clear 😊

[ahndeux]

The most insane part is Nvidia stock went up another 25% from around $308 to $380 in after hours trading today.

[eddieparker]

Made bank today.
Bought 410 calls and
hit a home run.
(+430k) pure profit.
May came through!

[weswest]

They currently added another $200B market cap after hours today, absolute mania confirmed.

[mattbob]

NVDA after earnings:
hold my beer
(currently up 25% after hours, 900B mkt cap)

[fnjluks]

For reference, Cisco at the peak had a P/S of 40 and a P/E of 200

[Benliftgus]

The stock after hours proceeded to gain absolutely insane

[Barbara]

Wall Street pitched so-called quality stocks with high profitability and low debt, as a kind of insurance against whatever the economy might throw at you. Quality stocks have underperformed the S&P500 this year, My portfolio is down by approximately 20%, any recommendations to scale up my returns on investment.

[easyxpress]

Today NVDA market cap is 2T. This video claimed 750 million is massively overvalued. What a joke!!!

[neanda]

your videos are seriously improving so much, the writing, editing, etc. and especially the information (for e.g. linking back to Cisco being overhyped back in the day due to the growth of the internet does seem analogous to nvidia in this AI training era, especially as the latest open source AI models can now be trained using cheaper CPUs). i hadn't made the connection with cisco and the early web. you is smart bro

[purpleWizard]

Lol i thought the same yesterday, while looking at their net profit $1.4B and Market Cap $780+B
I think their bubble will pop when they have a good rivalry, who can beat their processors.

[arizonajoe]

Well that's the last time I initiate a short position based on a YouTube video. YIKES.

[Andrew-dpkf]

I’d love to see where nvida is going to get the chips from to satisfy $11Bn of orders, TSMC hasn’t posted a record Q1.

[parmodkgandhi]

I saw this video shortly before I sold my NVDA options for $700 profit and patted myself on the back. In the morning those options would have been worth $60, 000 profit. Has anyone seen NVIDIA jump past trillion this evening?

[Pimpernicholas]

nVidia has performed just as I had hoped. What more could a person have asked for?

[TungTran-pptx]

I remembered some of my friends back in year 1999/2000 relocated to Northern California to work for Cisco. The were excited with their stock offerings and giddy about becoming millionaires. Unfortunately, their expectations did not panned out.

[shirtdirt]

what a day to post something like this lol. aging well.

[jeffhucle]

The most ironic part is the competition will probably use Nvidia based AI to create a more powerful and efficient processing unit

[TheLockerzer]

Huge fan of your videos, you are a wizard when it comes to business analysis. I would love to see a followup video to see if you think the fundamentals and outlook have changed since then!