Nvidia Heads for $6 Trillion Value as Chips Rally
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Author: Bloomberg Television · Watch on YouTube
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Original language: English
Original video: Nvidia Heads for $6 Trillion Value as Chips Rally · Channel: Bloomberg Television · 02:05 · Watch on YouTube
Topics: AI infrastructure and hardware, Markets and economy
Summary
Section titled “Summary”Nvidia is approaching a $6 trillion market capitalization as investors return to its shares, whose valuation is described as low relative to its growth. Bloomberg equities reporter Carmen Reinke cites strong earnings, a record buyback and a price of about 17 times forward earnings as factors supporting the stock. She also discusses capacity constraints and investors’ confidence that Nvidia can bring more capacity online. Amid high yields and market tensions, Nvidia is viewed as an appealing place to invest.
Key points
Section titled “Key points”- Nvidia is nearing a $6 trillion market capitalization.
- The stock is trading at about 17 times forward earnings, below the overall S&P 500 multiple, according to Reinke.
- Reinke describes Nvidia’s valuation as cheap relative to its growth.
- The company reported strong earnings, which Reinke said investors had anticipated.
- Nvidia announced what the segment describes as its largest buyback ever.
- Investors have begun returning to the stock after a choppy year.
- Capacity constraints remain a concern for the chip business.
- Investors appear to believe Jensen Huang will get more capacity online.
- High yields and broader market tensions are part of the backdrop for Nvidia’s appeal.
Chapters
Section titled “Chapters”| Start | Chapter | Summary |
|---|---|---|
| 00:00 | Nvidia approaches $6 trillion | The segment introduces Nvidia’s rising market value and its valuation, then brings in Bloomberg reporter Carmen Reinke. |
| 00:31 | Valuation, earnings and investor interest | Reinke says Nvidia trades at about 17 times forward earnings and points to strong growth and earnings as reasons investors are returning. |
| 01:02 | Buyback and capacity constraints | The discussion weighs Nvidia’s record buyback and lower valuation against questions about whether the money could address capacity constraints. |
| 01:33 | Confidence in Nvidia amid uncertainty | Reinke describes investors’ confidence in the company and its ability to bring capacity online, calling Nvidia an appealing option amid market tensions. |
Quotes
Section titled “Quotes”It trades at about 17 times forward earnings. — 00:31
That’s cheaper than the overall S and P 500 — 00:31
They had the, you know, largest buyback ever that they announced a few weeks ago. — 01:02
They believe that Jensen is gonna get the capacity online. — 01:33
Concepts and entities
Section titled “Concepts and entities”NVIDIA, Carmen Reinke, Jensen, S&P 500, recompra de ações, restrições de capacidade
Full transcript (original language)
Section titled “Full transcript (original language)”00:00 On the tech front, NVIDIA nearing a $6,000,000,000,000 market capitalization as investors continue buying the stock at a valuation that remains close to multiyear lows. Let’s bring in Bloomberg equities reporter Carmen Reinke. Carmen, I feel like that’s important part about the story. We are, what, $5.85700000000000 dollars on NVIDIA, somehow it’s gotten cheaper along the way. It really has. It’s kind of crazy to look at it. I mean, even in the premarket, it’s up. We’re only a few dollars away from the 6,000,000,000,000 mark. And if you had thought about this just a few months ago, it really wouldn’t have seemed like we
00:31 should be anywhere near that ballpark. But you’re right. As you said, NVIDIA’s valuation has been very cheap. I think Jensen called it a growth value stock. It trades at about 17 times forward earnings. That’s cheaper than the overall S and P 500, and it’s very cheap compared to the, you know, monumental growth that the company is still putting up. So it’s interesting that we’re finally starting to see investors sort of go back into this stock, and there are a few reasons for that. I mean, they had really amazing earnings, which was to be expected. I think that’s what everyone sort of anticipates. They had the, you know,
01:02 largest buyback ever that they announced a few weeks ago. And with high interest rates, the… You know, companies like this look like somewhat of a safe haven. So we’re finally starting to see investors sort of go back into NVIDIA after a pretty choppy year. So on one hand, you could say the buyback’s responsible. The stock’s cheaper. On the other hand, we’re always talking about capacity constraints. There’s not enough out there. Is this sort of the investor saying, wait a minute. You know, we’re appreciative of the buyback, but isn’t there a better way to spend this money? I think it could be. I mean, it’s definitely a very bullish call. Right? They’re saying
01:33 we believe in this company. We’re we’re buying it here. I think that NVIDIA… I mean, it’s… We’ve called it a kingmaker for years now, and I think that there’s so much, sort of belief around the story here. Right? They believe that Jensen is gonna get the capacity online. It’s still, you know, top of mind for the chips business. So if you have to put your money somewhere in an un… Kind of uncertain market, although it feels so silly to say uncertain market when we’re near record highs, but there’s still tension there. Right? We have high yields. There’s some, you know, sort of underlying conflict. This is a
02:05 great place to go. Carmen, thank you so much. Always a pleasure to have you on Bloomberg’s Carmen Reinke.