Nvidia has seen a fantastic, geometric increase in profit [1]. This is exactly the kind of thing growth investors hope for.
However, their PE ratio is currently 93. This is the kind of PE growth investors buy at, hoping for geometric earnings growth to kick in, not the situation after such growth has taken place.
Which means they'll have to keep 2x-ing that profit for a long time to come.
It could be doable but I don't see it. Even if they completely absorb Intel and AMD's market share, it doesn't make sense.
However, their PE ratio is currently 93. This is the kind of PE growth investors buy at, hoping for geometric earnings growth to kick in, not the situation after such growth has taken place.
Which means they'll have to keep 2x-ing that profit for a long time to come.
It could be doable but I don't see it. Even if they completely absorb Intel and AMD's market share, it doesn't make sense.
[1] https://valustox.com/NVDA