No traditional financial metrics can justify present valuation of NVDA stocks. But on the other hand, the fact that there is an AI war and Nvidia is the only arms dealer out there narrative justifies lofty valuation for the time being. It’s the perfect definition of monopoly. Also watch out for revenue from the “Automotive” segment as it represents sales from self-driving car tech. It’s a new market and too small to write about but it’s growing more than 100% YoY. If Tesla is able to deliver it as promised then this segment will also be able to generate revenue growth on par with present Data Center segment revenue growth. In some sense betting on Nvidia is synonymous with betting on its visionary leader Jensen Huang. I think stock will remain in bubble territory till competetion emerges to take away significant market share from its dominant position.
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