Nvidia is ahead of Google

NVIDIA overtook Google in capitalization battle and became the third largest company in the US market!
Now NVDA cap is about $1.8 trillion and it is three times more than Tesla, for example!

On February 21, the company publishes its next quarterly report, and the market is waiting for new record figures.
NVIDIA ended the previous quarter with unprecedented revenue of $18 120 mln per quarter! And now the market wants more and analytics are waiting for the new record . The consensus of market is $20 580 mln for the period ending 2024-01-31.

The main reason that boosts financial performance so much is the development of artificial intelligence. NVIDIA controls about 80% of the market for high-performance artificial intelligence chips. Thanks to this, the company’s shares grew almost 3 times in just 1 year!

The company actively invests in its development. The speech recognition technology company SoundHound AI recieved $3.67 million from NVIDIA as the biotech company Recursion Pharmaceuticals recieved $76 million. Everything looks rosy for Nvidia right now but look at the P/E multiplier!

At the current moment it is allmost 100! God it’s so high! We compared NVDA to GOOGL in the beginning of the article, but GOOGL now evaluates only 26 its incomes, not 100!
The main thing is the average P/E for NVDA . Historically it is about 60 which corresponds to price level at $450 per stock for now.

The company’s valuation is now neatly in the middle between its maximum and average historical valuations. And once the market sees numbers below expectations, we could witness a big reversal. However, the average value is a quality foundation for medium-term investments.

Take care of yourself and your investments!