NVidia hit a market capitalisation of USD1 trillion this week after a stunning set of earnings upgrades.
Data centre revenue, which is the largest part of NVidia’s revenues, is expected to double over the next 90 days.
But revenues have been volatile. For example, NVidia’s gaming revenues halved last year, probably due to Etherium (a crypto-currency) moving to proof of stake.
On one hand, NVidia is not cheap relative to the market, trading on 45 times next year’s earnings. On the other hand, if it can double revenues over the next 90 days, then it might be looking a lot cheaper a lot sooner.
In this week’s investment podcast Nucleus Wealth Chief Investment Officer Damien Klassen and Senior Financial Adviser Samuel Kerr look at the question of whether NVidia and AI stocks are in a boom or a bubble.
Can’t make it to the live series? Catch up on the content via Podcasts or our recorded Videos.
Samuel Kerr is a Senior Financial Adviser at the MacroBusiness Fund, which is powered by Nucleus Wealth.
The information on this blog contains general information and does not take into account your personal objectives, financial situation or needs. Past performance is not an indication of future performance. Samuel Kerr is an Authorised Representative of Nucleus Advice Pty Limited, Australian Financial Services Licensee 515796. And Nucleus Wealth is a Corporate Authorised Representative of Nucleus Advice Pty Ltd.