Disclaimer:

Disclaimer: The blog posts and comments on this blog and posts on social networks are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is". The blog is stocks analysis and valuation, Bitcoin, Cryptocurrencies, Artificial Intelligence, AI, deep-learning focused. Independent, unbiased AI insights. Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blog posts on this blog and posts on social networks. Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blog post and posts on social networks! The blog is property of Wolfteam Ltd. www.wolfteamedge.com Respectfully yours, Petar Posledovich

Wednesday, July 12, 2023

NVIDIA CORP Valuation. July 2023. AI Exaggerates NVIDIA's Intrinsic Worth


NVIDIA Corp, the AI, Artificial Intelligence Graphic Processing Units, GPU producer, NVIDIA Corp, the chip manufacturer for AI, is currently valued at 1.08 trillion USD.

NVIDIA Corp's intrinsic worth is 430 billion USD according to Wolfteam Ltd.'s corporate estimates.

And that is, if NVIDIA's revenue, mainly from AI, starts growing again. NVIDIA's AI and total revenue fell in the last reported quarter by 13 %, which is not a small fall, percentage wise.

If NVIDIA's revenue grows again by 10 % year on year, NVIDIA is worth 430 billion USD. If NVIDIA's revenue grows by 15 % year on year, NVIDIA will be worth 540 billion USD. If NVIDIA's revenue grows by 20 % year on year NVIDIA will be worth 760 billion USD. 


And only if NVIDIA's revenue grows by between 25 % and 30 %, only then NVIDIA, the AI pioneer and AI bedrock, will be worth close to NVIDIA's current 1.08 trillion USD market capitalization driven by the AI, Artificial Intelligence euphoria.

Wolfteam Ltd's corporate view is that AI is definitely the future, but as usually happens with most new, blockbuster, disruptive technologies AI will burn and crash, crash and burn several times. Now we are in AI, Artificial Intelligence's boom phase. Which will be followed, almost as always, by a bust for AI, which will lead to trillions of USD of market value being erased.

Then AI's development will be become more gradual, stable and sustainable.

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