??? I provided some basis of the current long term growth projection, held by a fraction of current NVDA investors. This projection is deweighted by current skepticism that 1-3 will come to pass. If 1-3 start to look more likely, the projection will expand.Your statement is incorrect. Currently, the stock price is based on tremendous growth projection. In order for the stock price to go higher, it has to beat the projection. Growing at the same rate is not good enough.High stock prices are based upon speculation of future sales. If you think that current AI server sales are saturated, then you assume that revenue can't go much higher or will fall.swong,
A vehicle manufactured with a touch screen which is almost in every foreign or domestic vehicle has a NVDA GPU .
I hope that you understand the AI processors that makes a lot of money for NVDA in data center to train AI model is not the same processor that need to run the model in the car or mobile device. For example, you do not use a H100 in the car.
The data center revenue is 40X automotive revenue.
https://www.investopedia.com/how-nvidia ... ey-4799532
" Revenue From Primary Markets
The chip company serves five primary markets—data center, gaming, professional visualization, automotive, original equipment manufacturer (OEM) and other.
Its most noteworthy business results were derived from the first four markets:
Data center revenue was a record $18.4 billion in the fourth quarter, up 27% from Q3 2024 and 409% YOY. The total in FY 2024 was $47.5 billion, up 217%.
Automotive revenue was $281 million, an increase of 8% from Q3 and down 4% YOY. For the year, revenue rose to $1.1 billion, an increase of 21%.4"
KlangFool
Assumptions about future revenue (beyond AI) are based upon a few ideas.
1) Autonomous driving will become ubiquitous and require large amounts of GPU based compute (in every vehicle) that NVDA will build.
2) Humanoid robots will become ubiquitous and require large amounts of onboard compute that NVDA will build.
3) Training those cars for different scenarios and robots for different tasks will require enormous amounts of compute, and will occur in a 'metaverse' called a 'digital twin', that like a video game, will be implemented in hardware that NVDA will build.
Many in the tech industry expect (1) to take over personal transportation, which makes it BIG, and (2) to take over much human labor, which makes it BIGGER.
Again, I am not making a prediction, I am merely reporting the thinking behind many analyzing the valuation and future business prospects of NVDA.
I suspect you think 1-3 are very unlikely.
Ofc 10 years ago, Tesla was saying it was going to take over all autos, which seemed plenty outlandish. They haven't, but they did outsell the Camry globally last year, and as Monto Python likes to say... they're not dead yet!
KlangFool
Statistics: Posted by just frank — Wed Jun 26, 2024 7:14 am — Replies 188 — Views 14824