Reevaluating risks and opportunities associated with Nvidia

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.

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Emre Barack Sokullu

Emre Barack Sokullu

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