<story><title>Nvidia is now a $1T company</title><url>https://www.theverge.com/2023/5/30/23742123/nvidia-stock-ai-gpu-1-trillion-market-cap-price-value</url></story><parent_chain><item><author>alberth</author><text>Wow, 213x P&amp;#x2F;E ratio.&lt;p&gt;To put this into context with other large tech companies:&lt;p&gt;&lt;pre&gt;&lt;code&gt;                 P&amp;#x2F;E    MARKET CAP
 Salesforce   1,036x    $0.2T
 AMD            519x    $0.2T
 NVIDIA         213x    $1.0T
 Amazon         293x    $1.25T
 Microsoft       35x    $2.4T
 Meta&amp;#x2F;FB         33x    $0.7T
 Apple           30x    $2.7T
 Google          27x    $1.5T
 TSMC            16x    $0.4T
 Samsung         10x    $0.3T
&lt;/code&gt;&lt;/pre&gt;
EDIT: &amp;quot;P&amp;#x2F;E&amp;quot; ratio is the Market Cap &amp;quot;Price&amp;quot; &amp;#x2F; Earnings the company generates. E.g. Samsung is generating $30B in earnings (not revenue, earnings), investors are valuing Samsung to be a $300B company. That means investors see Samsung is worth 10x P&amp;#x2F;E</text></item></parent_chain><comment><author>adam_arthur</author><text>Price to sales is a more telling comparison here. P&amp;#x2F;E can appear arbitrarily high&amp;#x2F;low depending on what the company is optimizing for. A realistic &amp;quot;terminal margin&amp;quot; is pretty similar between like-kind businesses, so you can somewhat assume what it will be in the long run and apply that to projected revenues.&lt;p&gt;Price to Sales: (TTM revenues)&lt;p&gt;NVDA: 37x&lt;p&gt;AMD:   8x&lt;p&gt;TSLA:  8x&lt;p&gt;TSM:   7x&lt;p&gt;AAPL:  7x&lt;p&gt;GOOG:  6x&lt;p&gt;QCOM:  3x</text></comment>
<story><title>Nvidia is now a $1T company</title><url>https://www.theverge.com/2023/5/30/23742123/nvidia-stock-ai-gpu-1-trillion-market-cap-price-value</url></story><parent_chain><item><author>alberth</author><text>Wow, 213x P&amp;#x2F;E ratio.&lt;p&gt;To put this into context with other large tech companies:&lt;p&gt;&lt;pre&gt;&lt;code&gt;                 P&amp;#x2F;E    MARKET CAP
 Salesforce   1,036x    $0.2T
 AMD            519x    $0.2T
 NVIDIA         213x    $1.0T
 Amazon         293x    $1.25T
 Microsoft       35x    $2.4T
 Meta&amp;#x2F;FB         33x    $0.7T
 Apple           30x    $2.7T
 Google          27x    $1.5T
 TSMC            16x    $0.4T
 Samsung         10x    $0.3T
&lt;/code&gt;&lt;/pre&gt;
EDIT: &amp;quot;P&amp;#x2F;E&amp;quot; ratio is the Market Cap &amp;quot;Price&amp;quot; &amp;#x2F; Earnings the company generates. E.g. Samsung is generating $30B in earnings (not revenue, earnings), investors are valuing Samsung to be a $300B company. That means investors see Samsung is worth 10x P&amp;#x2F;E</text></item></parent_chain><comment><author>malpanim</author><text>Why TSMC is having such a low PE. Aren&amp;#x27;t they are the one producing all these chips other than Intel?</text></comment>