Is the company actually currently making enough money to justify the valuation or is this all based on AI related hype?
Record quarterly revenue of $26.0 billion, up 18% from Q4 and up 262% from a year ago
Record quarterly Data Center revenue of $22.6 billion, up 23% from Q4 and up 427% from a year ago
Ten-for-one forward stock split effective June 7, 2024
Quarterly cash dividend raised 150% to $0.01 per share on a post-split bas
https://nvidianews.nvidia.com/news/nvidia-announces-financial-results-for-first-quarter-fiscal-2025
Its PE is pretty friggin high....and yeah...I think there is a good amount of AI hype baked into the price.
NVDA’s PE is 71 by my data.
MSFT and AAPL are in the mid to low 30s for comparison.
But they keep making their projected earnings, and they keep putting out crazy good guidance during earning calls....which is why its so high.
It isn’t related to AI hype. They are selling their product because it can do it, and there is a huge demand for it.
It was only recently that I heard they were #3, and I thought “Huh? Really? Is that true? What for?”
It is because their processors can do that kind of work better than any other.