Sunday, June 1, 2025
News Wave
No Result
View All Result
  • Home
  • World
  • USA
  • Business
  • Sports
  • Entertainment
  • Technology
News Wave
  • Home
  • World
  • USA
  • Business
  • Sports
  • Entertainment
  • Technology
No Result
View All Result
News Wave
No Result
View All Result
Home Business

Nvidia Is a Must-Buy. Or Is It?

22 February 2024
in Business
0 0
Nvidia Is a Must-Buy. Or Is It?
Share on FacebookShare on Twitter


In 2002, during the aftermath of the dot-com bubble burst and Sun Microsystems’ decline, co-founder Scott McNealy criticized Wall Street analysts for relying heavily on the “price to sales” ratio to assess a stock’s value. This metric compares a company’s value to its revenue generation, with a high ratio indicating potential growth and a low ratio suggesting accurate valuation.

Despite Sun’s stock trading at over 10 times its revenue, analysts believed it was undervalued, a belief that ultimately proved unsustainable as the business couldn’t maintain that value. McNealy questioned the rationale behind such assumptions, highlighting the flaws in using this metric.

Today’s stock market is seeing a similar trend with Nvidia, a major chipmaker known for its focus on artificial intelligence, trading at 27 times its sales.

Nvidia stands out from the profitless companies of the late 1990s, being highly profitable itself. However, the question remains whether the steep price-to-sales ratio is justified by its growth potential or is merely wishful thinking on the part of investors.

While many believe in Nvidia’s future growth due to its role in AI, some caution against the high valuation, citing uncertainties around inflation, interest rates, and geopolitical issues.

As Nvidia’s stock price continues to rise, some experts predict further growth, while others express concerns about the sustainability of such valuations. The debate over Nvidia’s true value reflects the broader uncertainty in the market.

Similarly, looking back at historical examples like Amazon and Commodore International, it’s clear that not all high-flying companies maintain their success. The future of companies like Nvidia in the AI boom remains uncertain, requiring careful evaluation beyond simple metrics.



Source link

Tags: MustBuyNvidia
Previous Post

First U.S. moon landing since 1972 set to happen today as spacecraft closes in on lunar surface

Next Post

Anurag Thakur to agitating farmers

Related Posts

75% of Workers Today Plan to Have a Job in Retirement. Here's Why You Should, Too.
Business

75% of Workers Today Plan to Have a Job in Retirement. Here's Why You Should, Too.

by My News Wave
31 May 2025
0

A significant motivation for retirement is to cease working, especially for those who have endured stressful jobs over the years. However, a recent survey by the Employee Benefit Research Institute reveals that 75% of workers are considering continuing to work during retirement, suggesting it may offer various benefits. Embracing a job in retirement could enhance financial stability and personal fulfillment, making it a worthwhile option for many retirees. Full Article

Read more
Down 24%, Should You Buy the Dip on BigBear.ai?
Business

Down 24%, Should You Buy the Dip on BigBear.ai?

by My News Wave
31 May 2025
0

BigBear.ai (NYSE: BBAI), an AI data analytics firm, has experienced significant share price volatility, soaring 142% over the past year compared to an 11% return for the S&P 500, though it has recently faced a 24% decline in the last three months. This downturn has raised questions for investors about whether it is a good time to buy or a signal to avoid the stock. Despite its past gains, the company still has much to...

Read more
2 High-Dividend Stocks Smart Investors Can Buy in June
Business

2 High-Dividend Stocks Smart Investors Can Buy in June

by My News Wave
31 May 2025
0

As June approaches, there are promising investment opportunities in dividend stocks. Tyler Crowe recommends HF Sinclair (NYSE: DINO), while Certified Financial Planner® Matt Frankel suggests the Vanguard International High Dividend Yield ETF (NASDAQ: VYMI) to capitalize on the low valuations of non-U.S. companies. *Stock prices referenced are from May 22, 2025, with the video published on May 24, 2025. Full Article

Read more
The 2026 COLA Could Disappoint Social Security Retirees
Business

The 2026 COLA Could Disappoint Social Security Retirees

by My News Wave
31 May 2025
0

Retirees on a fixed income rely heavily on Social Security benefits to cover their expenses, making annual increases crucial to maintaining their financial stability amid rising prices. While benefits are expected to rise in 2026, the anticipated increase is likely to be disappointing for many seniors. Despite this, retirees should not be overly concerned, as adjustments are necessary for keeping pace with inflation, even if the increments fall short of expectations. Full Article

Read more
Why Altcoins Were Flopping on Friday
Business

Why Altcoins Were Flopping on Friday

by My News Wave
30 May 2025
0

On a forgettable Friday, the equities market's decline and concerns over global trade led investors to steer clear of cryptocurrencies, with few showing any positive movement. Ethereum (CRYPTO: ETH) fell nearly 3%, while other notable declines included Solana (CRYPTO: SOL) at 4%, Chainlink (CRYPTO: LINK) at almost 7%, and Dogecoin (CRYPTO: DOGE) dropping over 8%. The ongoing trade war, marked by tariffs from the Trump administration, continued to fuel fears among crypto investors about its...

Read more
Why Oklo Stock Bumped Higher This Week
Business

Why Oklo Stock Bumped Higher This Week

by My News Wave
30 May 2025
0

This week, the American nuclear industry gained attention, particularly with a notable increase in Oklo (NYSE: OKLO) stock, which rose over 5%. The momentum was driven by President Trump's recent executive order, signed last Friday, which aims to support the nuclear sector by permitting reactor testing at Department of Energy laboratories and allowing the construction of nuclear power facilities on public land. This executive action is expected to bolster the growth and development of the...

Read more
News Wave

News Summarized. Time Saved. Bite-sized news briefs for busy people. No fluff, just facts.

CATEGORIES

  • Africa
  • Asia Pacific
  • Australia
  • Business
  • Canada
  • Entertainment
  • Europe
  • India
  • Middle East
  • New Zealand
  • Sports
  • Technology
  • UK
  • USA
  • World

LATEST NEWS STORIES

  • The fallout from Trump’s war on Harvard will outlast his term
  • Why so many young Brits are being ‘manipulated’ into smuggling drugs
  • Gaza rescuers say Israeli fire kills 10 near aid site as ceasefire push stalls
  • About Us
  • Disclaimer
  • Privacy Policy
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact Us

Copyright © 2025 News Wave
News Wave is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • World
  • USA
  • Business
  • Sports
  • Entertainment
  • Technology

Copyright © 2025 News Wave
News Wave is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In