2 min
Why NVIDIA's Rally Can Keep Going On (Mini Episode) Do Your Research
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- Investimenti
Do you wonder why Nvidia's stock price keeps going up even though its price-to-earnings ratio is approaching 100 times, its price-to-sales ratio has surpassed 30 times, and its revenue growth has slowed down from 90% in Q2 2024 to 19% in Q4?
It all started when the company unexpectedly doubled its revenue in one quarter due to demand for data centers that can handle artificial intelligence applications and the excitement around its hottest customer, OpenAI ChatGPT.
There is no doubt that Nvidia is a great company. But it is certainly worth less than Amazon, with 10% of Amazon's revenue and half of its Free Cash Flow.
What's going on?
In today's mini-episode, I walk you through three structural changes in the stock market that fuel Nvidia's rally, irrespective of valuation and sanity.
Do you wonder why Nvidia's stock price keeps going up even though its price-to-earnings ratio is approaching 100 times, its price-to-sales ratio has surpassed 30 times, and its revenue growth has slowed down from 90% in Q2 2024 to 19% in Q4?
It all started when the company unexpectedly doubled its revenue in one quarter due to demand for data centers that can handle artificial intelligence applications and the excitement around its hottest customer, OpenAI ChatGPT.
There is no doubt that Nvidia is a great company. But it is certainly worth less than Amazon, with 10% of Amazon's revenue and half of its Free Cash Flow.
What's going on?
In today's mini-episode, I walk you through three structural changes in the stock market that fuel Nvidia's rally, irrespective of valuation and sanity.
2 min