Last week, Nvidia achieved a remarkable milestone by becoming only the third company in history to surpass a $3 trillion market capitalization. In just the past three months, the company’s value has skyrocketed by a trillion dollars.
Renowned as the leading chipmaker driving the generative AI (genAI) revolution, Nvidia’s extraordinary success may seem like a temporary anomaly or a surge fueled by a speculative bubble.
However, I believe this perception is misguided. In reality, Nvidia could be significantly undervalued.
For comparison, at the time of writing, Apple’s market capitalization stood at approximately $3.003 trillion, while Nvidia’s valuation exceeded that at $3.012 trillion.
A company’s valuation is intricately tied to its share price, which is heavily influenced by market expectations of its future earnings potential.
In 2023, Apple reported revenue of $383 billion, marking a 3% year-over-year decline. The question arises: How can Apple double this revenue in the upcoming years? Will it focus on selling more iPhones, integrating AI into its products, offering pricier iPhones, boosting Apple Vision Pro sales, expanding its iPad line, introducing new financial services, or pursuing other strategies?
2024-06-12 21:15:04
Link from www.computerworld.com