This is true.
It is also true that come October - November, after the boys of summer have gone, Nvidia will still be with us. It is sometimes difficult to comprehend just how truly awesome the company is, technologically or financially or just about any dimension you care to examine.
As just one example, after a decade of watching Google and their Tensor Processing Unit slowly catch up to, and then surpass, Nvidia's GPU's on the inference side of things, Nvidia did a $20 billion acquihire of Groq's wunderkinder CEO and licensed their inference technology.
For most any other company on earth that would be a tectonic move. For Nvidia it was just another step on the journey. And truth be told, Groq's CEO isn't really a kid any more. While he was at Google he invented the TPU.
From Bloomberg via Advisor Perspectives, February 13:
Big Tech keeps raising its spending plans for artificial intelligence infrastructure, yet shares of Nvidia Corp., one of the biggest beneficiaries of that flood of cash, have been largely stagnant for months.
The stock is up less than 1% since the beginning of the fourth quarter and has been largely range bound despite hitting a record high in late October. It’s also barely beating the S&P 500 Index to start 2026, a slowdown from Nvidia’s nearly 40% leap in 2025 following two consecutive years of triple-digit percentage gains.
Even ballooning capital spending from Meta Platforms Inc., Alphabet Inc., Microsoft Corp. and Amazon.com Inc. — estimated to exceed $600 billion in 2026 — hasn’t been enough to meaningfully boost the stock amid increasing anxieties about returns on those investments.
“There is perhaps growing concern that the ultimate revenue from AI will simply not keep up with the capex spend that’s been announced,” said JoAnne Feeney at Advisors Capital Management, adding that more spending now raises the probability that the market will reach satiation faster. It’s “going to move up the date at which they pause and let the new compute be digested.”
The cyclical nature of the chip industry is baked into Nvidia’s valuation, which has compressed as revenue growth is expected to slow in the coming years. Sales are projected to expand 58% in the current calendar year and 28% in 2027, according to data compiled by Bloomberg.
Nvidia shares trade around 24 times profit estimates, roughly in-line with the Nasdaq 100 index and a slight premium to the S&P 500. Even though this price-to-earnings ratio is far below the five-year average for the stock at 38 times, investors aren’t counting it as a discount....
....MUCH MORE
$183.03 down $3.91 (-2.09) last.
Our judgement: If you want to own the future, own this company. That is not a new opinion.
