An entrie fed ex in market capitalization in 1 single trading day $60,000,000,000!!! Just to give you a few numbers on this perspective...... Fed ex has over 500,000 employees and does nearly $100 billion in yearly revenues!!!!! Founded over 50 yrs ago Does over 17 million in daily package volume 700 aircrafts 2200 office locations And nearly a quarter of a million motorized vehicles on the road. And Nvda literally added an entire fed ex in under 24 hrs.. I know no one is even paying an inkling of attention to the amount of daily value nvda is adding to its market capitalization, literally on an hourly basis it's billions upon billions .... I don't care how much you think AI is going to do this or that but the hype and the amount of dollars chasing this sector is just ridiculous at this point. No one is willing to admit how overcrowded these trades are becoming but when stocks are going only one way everyone is going to keep their mouth shut until well after the fact the hype is over and done with.
Obviously, you have no idea how many Nvidia chips are in circulation, especially for all them AI servers. The stock market sees this as just the beginning. That's why NVDA is going through the roof. Just imagine where you'd be now had you invested in Google and Amazon (I dunno, just making these up) at the start when all the naysayers of the Internet were scoffing at their inflated prices.
Nvda is going to have major competition. I know it's a bit of time away but it's going to happen. Companies are racing to grab market share and even if they grab 2 or 3 % it will be a huge knock out for nvda. How much of their revenue stream relies on just that one chip. Companies are going ai crazy jumping into a space buying up chips, the ai craze is just a part of the hype to create this euphoria so that wallstreet can feed off of it ........
It's funny how quick a stock can be oversold but can never ever be overbought. You will never hear an analyst come out and downgrade a stock based on the fact it just hit their targets.... At the Rate nvda is moving it will be worth 7 trillion by December 2024. These numbers won't be able to sustain the earnings they carry with such a high market valuation.
The key difference is micro-cap. Its not like a $50B company growing rapidly. You can understand how it can 10x. But at these prices, its simply not a start-up. I remember reading a snippet about how NVDA is subsidizing companies that are buying its chips. They are literally subsidizing their own sales. Its kind of like the mortgage crisis where you take equity from one home and use it to buy 5 more. On the flip side, I was also reading that lots of Chinese people are abandoning their markets and putting all that money into US markets, so there could be no end in sight to the buying.
I don't even believe in the idea that AI will make lives so much better. If I assume the most generous outcome for AI, that is it actually replaces many boring jobs, that increase in productivity isn't going to flow down to most people. I use TSLA as an example. Suppose that FSD is finally solved and now all those cars are drive themselves. Does TSLA sell more cars in this environment? I doubt it. There are already enough on the road. If you have one and put it into robotaxi service to make money for you, it means someone else doesn't need to buy one because yours will just drive them around. Now maybe TSLA could just make enough profit on the software, or maybe they will demolish Uber and start up their own taxi service, but I have a hunch that solving FSD actually hurts the car making business. On top of this, many jobs that make it into the jobs report that claim explosive growth are actually these gig economy jobs. With FSD, goodbye to Uber, Uber eats, and Doordash jobs. The hit to the economy will be immense since this part time gig economy is the only thing keeping jobs numbers looking good. So even if FSD is good for TSLA, its gonna be bad for other sectors. My last example is this. Look at what feminism did to society. Sure, women feel empowered and are making just as much money, if not more, than men. But now you have women crying every day on TikTok cause they can't find a man and facing the reality that they will never be mothers. Single women are all medicated, and society is basically falling apart. So score 1 point for feminism, and -5 points for women in general. Likewise, score 1 point for AI, and watch the collapse accelerate.
that's not shocking, nvda market cap is more than the entire china stock market. Nvidia is now worth as much as the whole Chinese stock market Nvidia is now worth the same as the whole Chinese stock market, Bank of America chief investment strategist Michael Hartnett pointed out in a new note. The company's market cap has hit $1.7 trillion, the same as all Chinese companies listed on the Hong Kong Stock Exchange. Nvidia's stock soared 239% in 2023 and is up 41% in 2024, through Thursday. also, novo nordisk's market value is more than its country gdp, denmark. crazy. Signal: Novo Nordisk market cap higher than Danish GDP due to obesity drugs https://www.clinicaltrialsarena.com... manufacturer of GLP,cap sits around $418.1bn.
it would be when folks found out that nvda account receivables are "cooked", the sales people can write down whatever sales number they want from the future.
Nobody cares . I recall in 1999 when csco hit a $500 bil cap with $20 bil of sales . I kep thinking In10 yrs there whole mkt won’t even be doing $500 bil of sales how can it be worth $500 bill . Same with Ai chips . Nvda near $1.8 trillion cap .In 10 yrs there won’t be $1.8 trillion of total Ai chip sales .What’s really so amazing is this mania is happening in the face of rates from 0-5% . P/e’s should have contracted but the actually rose .