alt Hacker NewsThis just isn't true. NVDA's price/earnings ratio is 22, which is less than MSFT.
Their P/E ratio is lower than in 2020 (before AI got rolling, and way below their 2023 peak.
If anything - based on current sales alone - NVDA is undervalued.
Replies
idiotsecant • today at 10:06 AM
Nvidia is king of circular financing. peak accrual earnings include non-cash items and demand Nvidia is funding itself. On a cash (real actual reality) basis the multiple is 33 to 50
gabucino • today at 8:12 AM
>NVDA is undervalued
i would like to, but won't/can't buy their overpriced crap -> they're losing a customer -> they're doing something wrong -> their valuation is just about 0 to me, ballpark estimate
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I’m not sure that Hardware has the same moat as Service/Platform.
If (it’s a big if), NVDA get leapfrogged in hardware capability it will be trivial for the next generation of deployments to stop using them entirely (Google and Microsoft are already developing custom inference chips, as are others)