NVIDIA ($NVDA) was trading at a P/E ratio of 64 with a stock price of $15 in 2021. In 2024, NVIDIA is still at a P/E of 64, but the stock price has risen to $142.
This highlights how a stock can appear expensive based on valuation metrics like P/E, yet still not be overvalued if the company’s growth potential justifies the price.
Looking back, it’s clear that NVIDIA was not overvalued at $15 in 2021, despite its high P/E ratio. Since then, it has increased tenfold, proving that while it seemed expensive, it was a valuable investment.
It required a vision to see beyond the numbers in 2021, to recognize NVIDIA’s potential and the impact its GPUs would have on the world.
i see a lot of upside
Blackwell is Nvidia's next-gen chip going into scale production this quarter. Many investors were concerned about pushouts. But instead, production is on track, and demand is off the charts.
Blackwell comes in a single configuration (contains two GPUs), which can go into existing data centers, or in large configurations like the GB200 NVL72, which packs 72 Blackwell chips (equivalent to 144 H100s).
One of these "chips" sells for ~$3M and contains ~2 miles of cables costing $100K just in cabling alone.
What we learned...
Earlier this month, Foxconn's CEO said that demand for Blackwell is "crazy" - adding a new facility in Mexico to satisfy Blackwell orders.
These comments came right after Nvidia's CEO, Jensen Huang, stated that production is on track and demand for Blackwell is "insane."
In addition, an important event took place two weeks ago — the Open Compute Project (OCP)— where data center companies showcased their latest and greatest products. The key takeaway from this event was that everyone wants the GB200 NVL72. Positive for content, margins, and the rest of the value chain.
Microsoft (NASDAQ:MSFT) announced that Azure is the first cloud service to run the Blackwell system GB200 and reportedly increased its orders from 300–500 racks (mainly NVL36) to about 1,400–1,500 racks (about 70% NVL72), 5x increase. Subsequent Microsoft orders will primarily focus on NVL72. While this is unconfirmed, it is in-line with what we heard at OCP.
On the volume side, TSMC (NYSE:TSM) just reported earnings and implied that they are doubling their packaging capacity from 40K/month to 80-100K/month exiting '25. In terms of GPU capacity, this implies that Blackwell should be exiting the year at 2M units/quarter.
And here is the best part, according to comments from the CEO, Blackwell is now "sold out"!
This is great news for Nvidia but also very positive for the rest of the value chain, including networking plays: connectors, cables, switches, interconnects, etc.
Nvidia, the GB200 NVL 72 is important because it is margin accretive as it contains many Nvidia networking products).
While Hopper (the prior generation GPU) took Nvidia 's Data Center revenues from $20B to >$100B, Blackwell has the potential to take it above $200B.
Nvidia's future Blackwell Ultra GPUs reportedly renamed to the B300 series
AI BOOM 💥
While $NVIDIA (NVDA.US)$ dominates semiconductor headlines during the AI boom, several other companies also hold monopolistic positions in the evolving digital economy -- here's a cheat sheet of the top 10 👇
1. $ASML Holding (ASML.US)$ | ASML Holding
• They hold a monopoly in lithography machines, which are essential for enabling the mass production of ultra-small, efficient chips crucial for AI applications. Their technology is foundational in pushing the boundaries of miniaturization and performance in semiconductor manufacturing.
2. $Taiwan Semiconductor (TSM.US)$ | Taiwan Semiconductor Manufacturing
• They remain the world’s largest dedicated independent semiconductor foundry, with unmatched capabilities in manufacturing advanced chips that are crucial for AI technologies. They are the only manufacturer with sufficiently advanced technology to produce the most sophisticated AI chips.
3. $KLA Corp (KLAC.US)$ | KLA Corporation
• They specialize in process control and yield management solutions. Their equipment and services are essential for the semiconductor manufacturing industry, ensuring the production of high-quality chip performance at micro and nano-levels, which is critical for the reliable operation of AI systems.
4. $Applied Materials (AMAT.US)$ | Applied Materials
• They excel in materials engineering solutions used to produce virtually every new chip and advanced display in the world. Their innovations in metal deposition and etch systems are essential for creating smaller, faster, and more reliable electronic devices needed in AI applications.
5. $Lam Research (LRCX.US)$ | Lam Research
• They are pivotal in the semiconductor fabrication process, providing advanced wafer fabrication equipment and services. Their technology is crucial for the production of highly sophisticated semiconductor devices, making them indispensable for manufacturers aiming to meet the increasing demands for more powerful and efficient AI chips.
6. $Micron Technology (MU.US)$ | Micron
• They are leaders in providing memory and storage solutions crucial for AI data processing. Their competitive advantage comes from their cutting-edge DRAM and NAND technologies, which significantly enhance the speed and capacity of AI systems.
7. $Broadcom (AVGO.US)$ | Broadcom
• Their range of semiconductor devices supports data center networking and broadband capabilities, crucial for AI ecosystems. Their broad product line and innovation in 5G technology position them as a key infrastructure provider in the rapidly expanding AI market.
8. $Qualcomm (QCOM.US)$ | Qualcomm
• They have a near-monopoly in mobile phone chips and is now integrating AI into its Snapdragon processors. This positions Qualcomm at the forefront of AI applications in mobile devices, enabling advanced features like natural language processing and on-device AI models.
9. $Marvell Technology (MRVL.US)$ | Marvell Technology
• Their technology excels in creating solutions that enhance data center performance and capacity, critical for AI data handling. Their specialized chipsets for cloud and enterprise applications position them as leaders in the data infrastructure market.
10. $Texas Instruments (TXN.US)$ | Texas Instruments
• They specialize in analog ICs and embedded processors, used extensively in automated applications and smart devices, pivotal for modern industrial applications.
Coach Donnie OP : Abundant Arisings
and Beautiful
Blessings Freedom Fam
Improve Your MONEY MINDSET…
It’s Wisdom & Wealth Wednesday aka Wealthy Women’s Wednesday
so it’s time
MINDSET > money
Want more Money
ONLY is a powerful tool
I’m ONLY earning $5 million a month
…Seldom will I make as much as
Never will I earn more than
The amount I allow myself to think of as “a lot of money”
If you desire to earn 6 7 or 8 figures
You can’t afford to think that’s a lot of Money
Even BEFORE you start making earning or attracting a lot of money you’ve gotta minimize it
So your subconscious can realize it’s very doable
When you make it small you make YOU BIGGER than it
Then it can become YOURS
#CoachDonnie
Coach Donnie OP : $NVIDIA (NVDA.US)$
This stock, at the current price, fillowing the EPS trend and demand, will likely to get a PE ratio of 32 next year, so no reason to worry... At 170 next year, look for EPS projection again then decide whether to sell if at all. Also pay attention to macroeconomy, when GDP rate gets low and jobless/debt explode, people can exit the market.
Kind Pumpkin : good buy
Coach Donnie OP Kind Pumpkin : You’re a WWW a Wise Woman of Wealth
Coach Donnie OP : $NVIDIA (NVDA.US)$ Stop worrying, it's Nvidia!!!
collect your profit. Do you think the best company in the world is going to stay in the low to mid 100s ![interrobang ⁉️](https://static.moomoo.com/nnq/emoji/static/image/img-apple-64/2049-fe0f.png)
If so you must be
![chestnut 🌰](https://static.moomoo.com/nnq/emoji/static/image/img-apple-64/1f330.png)
Don't look for instant gratification.
Accumulate on the dips and when it Rockets
Coach Donnie OP : Small Wins are important Fam:
After all, a small victory is still a victory. There is victory within the struggle. “The horse is made ready for the day of battle, but victory rests with the LORD.”
- Proverbs 21:31
Coach Donnie OP : $NVIDIA (NVDA.US)$ forming a bullish pennant pattern after a strong rally! RSI > 60 shows momentum, and AI demand is the wind beneath its wings. Breakout could push it toward $150+ as the uptrend continues.![chart_with_upwards_trend 📈](https://static.moomoo.com/nnq/emoji/static/image/img-apple-64/1f4c8.png)
![fire 🔥](https://static.moomoo.com/nnq/emoji/static/image/img-apple-64/1f525.png)
Coach Donnie OP : $NVIDIA (NVDA.US)$all of the hedge funds the institutions that have been shorting the stock
and selling calls naked calls naked shorts they are going to throw everything at this stock to keep it below their strike prices on expiration day which is Friday.
- @10baggerbamm Wisdom & Experience
Coach Donnie OP : Nvidia's CES 2025 Keynote
Coach Donnie OP : Nvidia CEO Jensen Huang says company's racing to get next-gen Blackwell chips 'into every data center in the world'"
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