NVDA full year revenue is 60.9B
1.7T valuation πππ Keep in mind Amazon full year revenue is 576B and valuation 1.7T. AI AI AI AI AI
Net income matters
Do you know what are you comparing? Please donβt give anyone financial advice with this kind of knowledge
Explain how it is
Wall St looks at net income, not revenue, and future earnings. Nvidia has an insane profit margin right now, they are expected to reach $120B in revenue and $60B+ in net income (profit) in a few years and strong growth. At that size, their PE ratio will be 30 which is in line with the tech industry.
Got to look at projected profit. Who cares about revenue.
Amazon is a slow growth and very low margin business. Nvidia is a high growth and very high margin business. Stock valuations are future value predictors. See it yet?
Shhhh no one tell OP about PE ratio, EPS and how Wall Street looks at income and future earnings, NOT revenue.
Thatβs not too far off using a 10 year forecasting horizon and some aggressive growth assumptions. OTOH, gotta factor in a sizable chunk of Amazon business is lower margin retail/warehousing/logistics which doesnβt enjoy the same growth assumptions
omg, the banana ppl go again
π ppl <~> AMZN π
Can you explain the term banana people?
Itβs all about what the market makers think. Not what you and me think.
Making a lot of noise about something you donβt even understand. You definitely belong at Amazon π. Here is some accounting 101: Take company A with revenue of $100b and $95b expenses and company B with revenue of $10b and $5b expenses. Both have a profit of $5b. Makes sense yet?
Here's the truth: NVIDIA is a one trick pony that can be cut out by their customers as easily as Apple cut out Intel. Nobody needs to pay them anything and lots of competition in AI chip space
If they build effectively on top of that really strong base competitors will never be able to catch up. I haven't seen someone surpass Apple in phone, tablets and watches because when competitors catch up they already are two steps ahead.
Markets, values stock, not on the basis of revenue, but on the basis of EBITDA/ non-GAAP earnings and forward EPS. When market discuss about the revenue that revenue is only compared with the previous year revenue for the same company, thatβs it.
Amazon is low margin, compare profits and profit growth
NVDA is a hardware company. Historically that's low margin.
Nvda is not a hardware company. They don't actually make gpus lol