Subject: Re: Fun with Nvidia
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.