Currently, Nvidia enjoys a ton of the value capture from the LLM hype. But that's a weird state of affairs and once LLM deployments are less dependent on Nvidia hardware, the value capture will likely move to software companies. Or the LLM hype will reduce to the point that there isn't a ton of value to capture here anymore. This tech may just get commoditized.
Nvidia is trading below its historical PE from pre-AI times at this point. This is just on confirmed revenue, and its profitability keeps increasing. NVIDIA is undervalued right now
Sure, as long as it keep selling $130B worth of GPUs each year. Which is entirely predicated on the capital investment in Machine Learning attracting revenue streams that are still imaginary at this point.
