Tell me one reason why nvidia wouldn’t be the biggest company on Earth
Why can’t it beat Apple and Microsoft soon?
Also LLMs are doomed.
Why do you say so
Because they don't make enough money
The same reason why Broadcom is not although 99% of the internet traffic flows through their devices.
Fundamentally, nvidia is still cheap. Based on just balance sheet and earnings.
Its P/E is more than double Microsoft’s, and almost triple Apple’s though. Also, can’t Apple make AI chips too? Or any other big chip maker?
If making chips is so easy, why is intel struggling for such a long time? And why do you not see startups in semiconductor industry?
Current margins and sales are not sustainable. There's currently a perfect storm causing inflated demand, and competition is heating up.
They have one business. They are nowhere as diversified as other big tech.
The same reason why TSM is already not the biggest company on earth. What TSM is to Nvidia, Nvidia is to Google/Microsoft.
What do you mean by beat? Valuation? It's a game of time. Even if Nvidia beats today some day or other some other company will be there.Look by revenue and profit, Nvidia earns 29 billion as profit and Apple earns 100 billion. So it may take more than half a decade to reach that revenue. Don't get me wrong, till half a decade nvidia will remain the best at it what it does, but there's no way they will reach apple sales numbers.
Once China escalates on Taiwan in 2025/2026, it’ll crash
or big earthquake
They're bound by the income of their clients. If the people buying large numbers of chips don't have a useful product eventually, then they'll stop buy.