NVIDIA valuation justified by growth runway
The bullish case for NVIDIA argues that its current valuation multiple is reasonable given its unprecedented profit generation and massive growth runway.
The argument
The guest noted that NVIDIA's revenue multiple of around 35x is justified by its growth rate, stating he does not know of any company in history that has generated as much profit. This follows a highly successful previous thesis where the guest's brother leveraged into NVIDIA in 2022 after realizing the market was mispricing the massive demand for H100 GPUs.
The thesis, stress-tested
✓ What validates it
- ✓NVIDIA maintaining its high growth rate in upcoming quarterly earnings
- ✓Sustained capital expenditure guidance from major hyperscalers
▸ Risks discussed
- ▸High revenue multiples leave little room for execution errors
- ▸Potential cyclicality in GPU demand
Hear it yourself
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