Incredible Nv!dia, bluest chip company
chips that fuel generative AI, do its clients, such as Microsoft and Alphabet (Google), have concrete monetisation plans for the technology? Two, Nvidia has left its much-bigger rival Intel far behind in both earnings and valuations. So, is it right now open to challenges to its temporary computing monopoly? The analogy to Cisco's rise during the dotcom boom is stark. For those of us who remember, the internet delivered, but not the company making the switches connecting it.
Three, for Nvidia to deliver on its forward earnings, will the hardware manufacturer be able to compete with its software-producing clients, which use its chips, and not run into antitrust scrutiny?
The position of the world's most fancied company has had a chequered history, with some companies holding on to it for years, while others have held momentarily. Exxon and Microsoft offer cautionary tales of energy and dotcom bubbles being pricked, something Nvidia CEO is well aware of. The company has doubled its valuation since the beginning of this year, added $1 tn in 100 days, and eight years ago, its value was 1% of its current $3.34 tn.
This would be among the most spectacular movements in the price of any large technology stock, making Microsoft and Apple, which it has toppled, appear sedate. Both these companies have some reservations about what makes Nvidia tick among investors. Other disruptors like Elon Musk are bemused by the market frenzy over AI stocks.
For the moment, Nvidia is improving upon its forward price-earnings, suggesting there may be some upside to the stock.
