Back in December, I ran a DCF on https://www.gurufocus.com/dcf-calculator?ticker=NVDA and got a fair value estimate of around $700 based on 25%/yr EPS growth for 10 years, followed by 15 years of 5% growth and a discount rate of 8-10% (that's based on the expected rate of return you can get from the market long term).
AI stocks are like crypto in 2021. It's getting manic. The media makes it seem like companies and governments are begging to buy GPUs like there's no tomorrow. Hardware is ultimately a commodity. It's only a matter of time before supply meets demand. There's no way giant tech companies with their own ASICs will continue buying so many Nvidia GPUs.
AI stocks are like crypto in 2021. It's getting manic. The media makes it seem like companies and governments are begging to buy GPUs like there's no tomorrow. Hardware is ultimately a commodity. It's only a matter of time before supply meets demand. There's no way giant tech companies with their own ASICs will continue buying so many Nvidia GPUs.