See one other small cap company benefiting out of this nvda upside because of AI and GPUs sale.
SuperMicro(SMCI) is up 10x is last 2 years with most growth recently.
Nvidia is now a $1T company
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Re: Nvidia is now a $1T company
#52the fact that NVDA has a larger market cap than basically all other chip manufacturers combined is hilarious. big TSLA energy here
IMO, NVDA is in a similar position to VMware among practitioners--folks hate their pricing and will gladly jump ship to whatever is cheaper with feature parity. They've burned their brand by charging so much and doing licensing fuckery to squeeze as much as possible. Folks are only staying because CUDA has no equivalent (for now).
Re: Nvidia is now a $1T company
#53Earlier quoted context omitted.
What's the story with saleforce?
The E in P/E ratio going from $4.77 in 2021 to $0.21 in the most recent results. Presumably investors are anticipating/hoping for a return to previous levels.
I don't see that at all. What am I missing?
https://www.tradingview.com/symbols/NYSE-CRM/financials-earn...
Re: Nvidia is now a $1T company
#54Earlier quoted context omitted.
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…
> 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.
Compensation is obviously an operational expense...
Re: Nvidia is now a $1T company
#55Maybe someone can explain. Why hasn’t AMD come out invested $10 billion, poached the necessary engineers from Nvidia, Facebook etc and expanded into the AI space? How much of an advantage does nvidia have when it comes to cuda ?
They are expanding into AI space, with Xilinx FPGA accelerators in next ryzens.
https://www.notebookcheck.net/AMD-details-4-nm-Zen-4-Ryzen-7...
Re: Nvidia is now a $1T company
#56Re: Nvidia is now a $1T company
#57Speaking 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.
> how is Apple the most valuable one
You misspelled Saudi Aramco.
Re: Nvidia is now a $1T company
#58Earlier quoted context omitted.
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...
TSMC is capex heavy. They will see margin compression with higher interest rates, at least in perception - their most over intel is only their ability to efficiently deploy capital.
This. The value of a stock should (in theory) be based on discounted cashflow with the emphasis on cash. A company can generate massive earnings but if it needs to invest huge amounts of capital to support those earnings then it should have a lower valuation.
Re: Nvidia is now a $1T company
#59Sooner or later we'll have to pull Facebook out of FAANG. Nvidia seems like a worthy replacement.
It's MANGA - Meta, Amazon, Nvidia, Google, Apple ;)
Re: Nvidia is now a $1T company
#60See one other small cap company benefiting out of this nvda upside because of AI and GPUs sale. SuperMicro(SMCI) is up 10x is last 2 years with most growth recently.
Why? Do they manufacture their GPUs?