Larry Berman: How might the AI trend impact earnings of NVDA?

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Bear with me, I’m pontificating a bit here in front of Nvidia (invidia Latin for envy) earnings. I’m sure many will disagree. It’s a great company, but what is it worth in five, 10 or 15 years? I would argue, about what we are paying for it now if history is a guideline.

Bear with me, I’m pontificating a bit here in front of Nvidia earnings. I’m sure many will disagree. It’s a great company, but what is it worth in five, 10 or 15 years? I would argue, about what we are paying for it now if history is a guideline.

The great Microsoft Corp. peaked at the top of the dot-com bubble and had 15 years of disappointment for shareholders as earnings per share caught up to expectations. All are great companies and are well-positioned for the economy ahead. Productivity-enhancing AI, cloud, quantum and the list goes on. I have no issues at all with this aspect of factors driving future growth. It’s very exciting and very bullish.

Nvidia give Microsoft the ability to crunch those numbers. All of which all essential. But look at the performance of Intel since the dot com peak in 2000, shareholders have seen zero growth.

 

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