Nvidia's revenue is growing so fast that Wall Street can't keep up!
Nvidia's revenue is growing so fast that Wall Street can't keep up!
Nvidia $NVIDIA(NVDA.US$ It is the most expensive stock in the S&P 500 index. The current 12-month expected cost-benefit ratio is about 23 times. But there is a problem with such high valuations.
Bloomberg reports that in the age of artificial intelligence, no one knows what level of revenue this chipmaker will reach, let alone Wall Street analysts who study Nvidia don't know, and even Nvidia executives can't predict it.
Investors have no way of calculating how high Nvidia's valuation will be.
Over the past year, under the boom in artificial intelligence, market demand for Nvidia chips has surged, making Wall Street's quarterly financial forecasts a joke.
It's not that analysts are compiling numbers; they take cues from management, just like any other company.
However, it is difficult even for Nvidia's leadership to predict how much the chipmaker's revenue will be in the next three months.
Nvidia's sales have exploded since the April 2023 fiscal quarter, and its average revenue has exceeded the midpoint of the company's own forecast range by 13%, more than double the average of the past ten years.
According to data compiled by Bloomberg, when Nvidia announced results in August last year, revenue was 23% higher than expected, the largest amount that exceeded expectations since at least 2013.
A representative from Nvidia declined to comment.
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Source: Nanyang Siang Pao
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