Post #152 by Said on the Falling Knives board

Investment Strategies / Falling Knives

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inflation + 6.5%/year..... To manage that in the next five years, Nvidia would have to manage flat margins and sales growth of 19-20%/year and an ending multiple of only about 19-20 times earnings.

Just to add a possible 'bear' case, from the probably most respected poster on Saul's board:

Look at ZM with its PE currently around 15. But that's what happens when growth all but stops. You might reasonably say, but Bear, why would NVDA stop growing? Well, because $100b is a ton of revenue and a ton of product. Is it possible demand goes even higher in future years? Of course. But it's also possible it doesn't'and at some point even drops back to a more historically normal level. Data (and datacenters) will grow year after year, driving NVDA's revenue higher'except in extreme times when it will spike and then fall back ' and I think we're clearly in a spike now.

Source: https://discussion.fool.com/t/nvda-q2-earnings/957...

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