Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Nvidia is now a $1T company

theverge.com

Post reply on HN
Print view View original

31–40 of 124 posts

Re: Nvidia is now a $1T company

#31

Post by kypro »

sdfghswe wrote: post #10
alberth wrote: post #5

Wow, 213x P/E ratio. To put this into context with other large tech companies: P/E MARKET CAP Salesforce 1,036x $0.2T AMD 519x $0.2T NVIDIA 213x $1.0T Amazon 293x $1.25T Microsoft 35x $2.4T Meta/FB 33x $0.7T Apple 30x $2.7T Google 27x $1.5T TSMC 16x $0.4T Samsung 10x $0.3T EDIT: "P/E" ratio is the Market Cap "Price" / Earnings the company generates. E.g. Samsung is generating $30B in earnings (not revenue, earnings),…

What's the story with saleforce?

GAAP earnings basically consider stock based comp as an operational expense and Salesforce does a lot of stock based comp which makes their GAAP earning numbers very low.

Because of this historically Salesforce has traded more reliably as a multiple of its cashflows and currently it trades at around 26x cashflows which is about right if you comp with similar companies. The argument here being that so long as they can grow their cashflows faster than they're diluting them via stock based comp then GAAP earnings aren't all that important since investor's per share cashflows are increasing. Some disagree with this though.

My opinion on this is that all earnings should be taken with a grain of salt since both GAAP and non-GAAP earnings are arguably sanitised accounting numbers and not necessarily a reflection of actual financial results.

Re: Nvidia is now a $1T company

#32

Post by zamadatix »

londons_explore wrote: post #24
dvhedvsa wrote: post #19

Earlier quoted context omitted.

Yeah, but it’s in Taiwan. The Geo political situation as such that people discount it’s future prospects

Are there betting odds anywhere for regime change/invasion of Taiwan? I would put it as ~1% per year right now, but perhaps other investors see it differently.

I think the big thing in this space was Buffet recently pulling out of TSMC saying he loved the company but thought the tensions made it too risky. I don't know what that puts the odds for a full on invasion of Taiwan at but tensions in the area are definitely impacting real investment decisions.

Re: Nvidia is now a $1T company

#33

Post by candiodari »

londons_explore wrote: post #24
dvhedvsa wrote: post #19

Earlier quoted context omitted.

Yeah, but it’s in Taiwan. The Geo political situation as such that people discount it’s future prospects

Are there betting odds anywhere for regime change/invasion of Taiwan? I would put it as ~1% per year right now, but perhaps other investors see it differently.

This seems inaccurate. If China will invade (at least 50%), they will definitely do so in the next 10 years or so.

So a reasonable guess based on that assumption would be ~6.5% per year.

Re: Nvidia is now a $1T company

#34

Post by retskrad »

Speaking of trillion dollar companies, how is Apple the most valuable one? Their devices are dumb as bricks. Apple is do bad at AI that they can't even get autocorrect right on the iPhone. They are completely out of their element in the age of LLM's. Microsoft's business was bulletproof before investing in OpenAI but now it should be more valuable than Apple.

Re: Nvidia is now a $1T company

#35

Post by adam_arthur »

londons_explore wrote: post #11
alberth wrote: post #5

Wow, 213x P/E ratio. To put this into context with other large tech companies: P/E MARKET CAP Salesforce 1,036x $0.2T AMD 519x $0.2T NVIDIA 213x $1.0T Amazon 293x $1.25T Microsoft 35x $2.4T Meta/FB 33x $0.7T Apple 30x $2.7T Google 27x $1.5T TSMC 16x $0.4T Samsung 10x $0.3T EDIT: "P/E" ratio is the Market Cap "Price" / Earnings the company generates. E.g. Samsung is generating $30B in earnings (not revenue, earnings),…

TSMC seems real low for a company with a 100% share of the high performance chips market, with a really high moat, and lots of hype that chipmaking will be getting lots of government investment and lots of demand with AI wanting massive amounts more compute...

I've thought the same.

It seems to me that they don't use their moat to really drive price. I don't know if it's cultural or what, but they could easily extract higher prices given their position. I seriously doubt Apple, AMD or NVDA would walk to another fab and give up a huge performance edge in their offerings.

While TSMC's gross margins are 60% which is already quite high, their customers also have close to 50% margins... which implies room for higher chip prices

Re: Nvidia is now a $1T company

#36

Post by gabipurcaru »

retskrad wrote: post #34

Speaking of trillion dollar companies, how is Apple the most valuable one? Their devices are dumb as bricks. Apple is do bad at AI that they can't even get autocorrect right on the iPhone. They are completely out of their element in the age of LLM's. Microsoft's business was bulletproof before investing in OpenAI but now it should be more valuable than Apple.

people buy their stuff.

Re: Nvidia is now a $1T company

#37

Post by moralestapia »

alberth wrote: post #5

Wow, 213x P/E ratio. To put this into context with other large tech companies: P/E MARKET CAP Salesforce 1,036x $0.2T AMD 519x $0.2T NVIDIA 213x $1.0T Amazon 293x $1.25T Microsoft 35x $2.4T Meta/FB 33x $0.7T Apple 30x $2.7T Google 27x $1.5T TSMC 16x $0.4T Samsung 10x $0.3T EDIT: "P/E" ratio is the Market Cap "Price" / Earnings the company generates. E.g. Samsung is generating $30B in earnings (not revenue, earnings),…

s/earnings/income/

Re: Nvidia is now a $1T company

#38

Post by pc86 »

candiodari wrote: post #33
londons_explore wrote: post #24

Earlier quoted context omitted.

Are there betting odds anywhere for regime change/invasion of Taiwan? I would put it as ~1% per year right now, but perhaps other investors see it differently.

This seems inaccurate. If China will invade (at least 50%), they will definitely do so in the next 10 years or so. So a reasonable guess based on that assumption would be ~6.5% per year.

Based on what? This sounds like you just pulling numbers out of the air, in which case 1% vs. 6.5% means comparatively nothing. And what makes you so sure that if China invades Taiwan they would definitely do it by 2033, and there's a 0% chance it'd happen in 2034?

I'm not trying to be [overly] pedantic but HN is littered with comments basically just making shit up in a language of confidence and precision.

Re: Nvidia is now a $1T company

#39

Post by usaar333 »

londons_explore wrote: post #24
dvhedvsa wrote: post #19

Earlier quoted context omitted.

Yeah, but it’s in Taiwan. The Geo political situation as such that people discount it’s future prospects

Are there betting odds anywhere for regime change/invasion of Taiwan? I would put it as ~1% per year right now, but perhaps other investors see it differently.

Metaculus puts the odds much higher - around 3%/year.

https://www.metaculus.com/questions/11480/china-launches-inv...

https://www.metaculus.com/questions/5320/chinese-annexation-...

Re: Nvidia is now a $1T company

#40

Post by lotsofpulp »

mgh2 wrote: post #12
malpanim wrote: post #9

Earlier quoted context omitted.

Why TSMC is having such a low PE. Aren't they are the one producing all these chips other than Intel?

Ppl are so easily manipulated by media and hype. TSMC has low margins and probably bc they are not involved in the application side

Which other hardware manufacturer has profit margins like these?

https://www.macrotrends.net/stocks/charts/TSM/taiwan-semicon...

Post reply on HN