Reevaluating risks and opportunities associated with Nvidia

Those who follow this blog for a while would know how big of a $NVDA fan I happen to be. That said, Nvidia represents some new risks and opportunities since I last covered the company;

Opportunities

• At 75x PE ratio, the company is still not too expensive. Similar growth stories are known to be valued at 100x and even higher.
• The latest DPU announcement. Nvidia is marketing its Mellanox (networked GPU) acquisition as DPU. Good marketing play.
• The metaverse buzz. Nvidia’s GPUs are at the forefront of an omniverse future.

Risks

• The ARM deal may not close. China is against it. And now the UK joined the band too in protectionist concerns.
• Netflix announced gaming cloud which will rival Nvidia’s
• Intel is getting serious about GPUs
• The PE ratio of Intel at 11x and AMD at 35x are way cheaper. Intel just won a US government deal, and AMD, under Lisa Su leadership, is pretty competitive.

DISCLAIMER: The Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.