Thanks, I stand corrected. I guess at 35 times latest earnings it's more reasonably valued. Nvidia's growth in just the past year was stronger than I expected. At this level we need more nuanced arguments.
The next thing to explain the discrepancy between Nvidia's valuation and OpenAI's would be that Nvidia's monopoly position effective eats into the profits of the AI startups for the foreseeable future. Had OpenAI already been profitable, its valuation would have exceeded 86B.
> I guess at 35 times latest earnings it's more reasonably valued
If you are willing to just take quarterly revenue which I think is reasonable for NVidia, it is valued at around 40 times the current estimated earnings for this quarter which isn't too overvalued.
The bigger thing I worry about NVidia is not current earnings but the possibility that the earning won't last when either AI wave fades off or competitors enter the market leading to loss in margin.
The next thing to explain the discrepancy between Nvidia's valuation and OpenAI's would be that Nvidia's monopoly position effective eats into the profits of the AI startups for the foreseeable future. Had OpenAI already been profitable, its valuation would have exceeded 86B.