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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Investment Strategies / Mechanical Investing
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Author: mechinv   😊 😞
Number: of 6131 
Subject: Re: Fun with Nvidia
Date: 02/21/24 10:08 PM
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Congrats, Dr Bob. Looks like your original purchase of 1,000 shares for $35K in 2017 is now worth $700K. That's a 2,000% return in 7 years.

According to the earnings they just reported, they more than tripled their revenue from $6B in the year-ago quarter to $22B this quarter. So they went from a $24B annual revenue run rate to a $88B run rate in a single year. I've never seen anything like this at this scale.

By comparison, it took Amazon Web Services 6 years to go from $25B in revenue in 2018 to $90B last year. AWS is at almost a $100B annual revenue run rate today.

Also impressive is Nvidia's operating leverage. Revenues were up 265% YoY but operating expenses were only up 25% YoY.

Net income was up 491% YoY and gross margins up to 76.7%.

Nvidia is expected to grow revenues in FY2025 by at least 60% and EPS by at least 70% yet the stock trades at 30x NTM EPS.

I've been long this stock since Jan 2023 once I saw what was going on with OpenAI and all the cloud providers.

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