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Nvidia is now worth $102M per employee

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Re: Nvidia is now worth $102M per employee

#31
post #18
post #6

Earlier quoted context omitted.

I think about it the other way. Businesses with high $/revenue per employee, high margin, etc. tend to be fundamentally better managed and more robust. I'm not claiming that applies to Nvidia either way specifically, but it's a good sign in the generic: 1. They're efficient. 2. They've avoided the curse of overhiring (hi, Google!) 3. They can stay afloat even if business drops a lot.

But this article is about market cap not revenue. But even revenue is almost meaningless for the things you mention -- it's profit per employee which would be interesting. And for that, tech companies are nowhere near the top. Check this https://airleasecorp.com/press/air-lease-corporation-announc... they made 753.6M in 2023 with 163 employees or 4.6M per employee. No one comes even close. No one. I believe Fannie Ma…

Interesting. Yeah would be cool to look at profit

Re: Nvidia is now worth $102M per employee

#32
post #19

Earlier quoted context omitted.

$20M might be optimal if tuition was $0 and they didn't receive any research grants.

> if tuition was $0 https://sfs.mit.edu/undergraduate-students/the-cost-of-atten... I couldn’t find the number quickly, but tuition is not a big funding source for the university. They are quite generous with tuition grants. This might not be true for the MBA program, but probably is for many/most other programs. > … and they didn't receive any research grants. Yeah. This is where I think one needs to look at exactly…

Indirect cost, how I loathe thee…

Re: Nvidia is now worth $102M per employee

#33
post #19

Earlier quoted context omitted.

$20M might be optimal if tuition was $0 and they didn't receive any research grants.

> if tuition was $0 https://sfs.mit.edu/undergraduate-students/the-cost-of-atten... I couldn’t find the number quickly, but tuition is not a big funding source for the university. They are quite generous with tuition grants. This might not be true for the MBA program, but probably is for many/most other programs. > … and they didn't receive any research grants. Yeah. This is where I think one needs to look at exactly…

> tuition is not a big funding source for the university

Princeton reported a paltry ~$154.5M in net tuition and fees for FY2023, which seems low ($18K/student.) They claimed $20K "net cost after aid" for students on financial aid.

https://finance.princeton.edu/report-treasurer

https://www.princeton.edu/news/2023/03/31/princeton-trustees...

Re: Nvidia is now worth $102M per employee

#37
post #5

Believe it or not, elite universities are reaching similar heights. MIT is at roughly $20M endowment per faculty member. All caveats apply. 20≠100, employees might include staff and grad students, etc. Still, I would never advise anyone to donate to any institution like this.

An endowment is entirely different from a market capitalization. How can you write "employees might include staff" and keep a straight face? Yes, they do, how is this even in question? MIT has 1089 faculty members but 17,180 employees total. That's a 15x difference.

Yes. Do you realize how insane this is? A colleague of mine used to have a chart of staff per faculty member at MIT versus time. That figure has gone up around 20-fold on that chart.

It's almost all bloat and overhead made possible by being over capitalized.

Re: Nvidia is now worth $102M per employee

#38
post #12
post #5

Believe it or not, elite universities are reaching similar heights. MIT is at roughly $20M endowment per faculty member. All caveats apply. 20≠100, employees might include staff and grad students, etc. Still, I would never advise anyone to donate to any institution like this.

> Believe it or not, elite universities are reaching similar heights. MIT is at roughly $20M endowment per faculty member. If you ran MIT, what do you think a good endowment amount per faculty member would be? I’m not sure $20m is far off from optimal. I might go down to $15m, with an annual draw down $750k so (5%) per year to cover burdened labor rate of average professor and certain percentage (half?) to go to “sup…

I'd go down to about $2M, which is where MIT was at a quarter century ago, when it was it's prime.

Being answerable to funding sources, tuition, etc. is a good thing. Having money to soon off from is not.

Re: Nvidia is now worth $102M per employee

#40
I wonder if Nvidia would consider acquiring either Qualcomm or Mediatek. Both have very little competing against Nvidia. Gets Nvidia into the Smartphone and Wireless game. Which is crucial if they intend to bet big in ARM PC. Broadcom is way too big, Marvell is also another target but may be a little overlap in terms of product range and doesn't offer any consumer profile products.
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