Dear lord. What does one even do with all that money?
pawlacz33 on
78%  2.5T
NegotiationFuzzy4665 on
I’ll post the same comment I did on OP’s other post in r/infographics… (some info might be wrong cuz I half assed all the research and am going mostly off of memory)
People need to understand that a 57% profit margin is fucking UNHEARD OF in business. Walmart has a net profit margin of under 3%. Apple is known for having the best financials with a net profit margin of ~26% (and due to that, making up a large part of legendary investor Warren Buffet’s portfolio). Many companies have a profit margin that goes no higher than 20%, and only the best of the best usually beat it. Nvidia had somewhere under a ~15% net profit margin less than 5 years ago, and they’ve raised it almost quadruple that. The AI boom has raised Nvidia from a little-traded regular large-cap, to the third most valuable company on the planet behind other mega-cap companies Microsoft and Apple.
WoodenSecond6765 on
Amazing margins, but still hard to get behind a $2.5T market cap
uchiha_boy009 on
Bro look at all that green.
extrastupidone on
I like this visualization
lostredditorlurking on
God damn those profit margin, and 🌈🐻 still think they can short AI lol
MoBe499 on
1 cent dividend post split…that’s nothing
Fezzaaaaa on
PRINTERRRRR GO BRRRRRRR
TomatoSpecialist6879 on
That revenue increment is actually fucking insane, having everyone pay whatever ask you list because you are the shovel seller in a gold rush really is a profitable business
Whybother456 on
1. taking money away from bers
fkfjjfysgr on
No way those margins are sustainable. There will be blood when they inevitably compress.
Worried_Creme8917 on
The profit margins are insane. NVDA can’t be stopped.
lordinov on
Market all over green tomorrow, rate cuts coming
rainorshinedogs on
And here I am, with my 4k ray tracing next gen game at 150fps, thinking my 4090 is the most important financial investment of all time
KobeBean on
Gaming barely 10% of revenue now. It’s over for the PC GPU market lol
nsjsjkddk on
Those margins are insane
TheKingInTheNorth on
Here’s the thing…. These margins are insane, but the product they can sell is capped by TSMC capacity.
Forward P/E is capped by a combination of that and any additional price increases/additional margin they can drive for future generations.
At some point, GenAI is going to need to make good on all the promises these sales are driving. Spoiler alert – it won’t. The technology is a DREAM when it comes to proof of concept and flashy demos. But it’s an absolute mine field to do anything useful in production, because at their core LLMs are not trustworthy without a human in the middle.
And then the story shifts from job replacement and miracle productivity growth, to just typical organic productivity growth.
And these prices aren’t gonna fly if it’s just about providing next generation Clippy to existing workers.
All that said, no one knows when the disillusionment will occur. So I’m not dumb enough to take a bearish position
blade-runner9 on
In two years max this hardware will be obsolete. New hardware will be smaller, faster, all while using less energy.
dtanksle on
How does Nvidia pay 14% taxes while I’m paying over 30?
plunker1 on
This is an insane way to visualize financials. Insane in a bad way.
reallypeacedoff on
And here I’m paying +30% in taxes…😭
nickwwwww on
Literally money printer
notarealredditor69 on
I’ve been reading a lot about NVDa today obviously and one thing struck me when they were talking about all of the chips being bought by Meta, Google or something and it’s occurred to me that this thing could actually be a pretty big house of cards.
Like all these companies are buying these chips and are in a huge rush to buy the next big chip and the one after that but they aren’t really doing anything with them. They are trying to do something with them, they may actually do something with them but right now it’s all theoretical.
Like NVDAs massive profits are other companies R and D expenses. They are usually my money generated through AI hype to buy the chips they need to keep the hype going.
But what if it doesn’t really go anywhere? These same companies have spent billions on EVs then abandoned them, or wearable tech then abandoned them.
I’m not saying I’m bearish on NVDA but I just think a scenario exists where the taps just get turned off once. Like at what point does any of this actually produce anything?
Gandalftron on
Those profit margins are insane.
darth__stroke on
When does a Fiscal year start in USA ? According to nVidia results it’s Feb to Jan. But google says it’s October to September.
32 Comments
Those are some insane margins at that scale
NVIDIA bears hiding in their caves rn
Jesus those margins
Glad I bought in before the bell!
Dear lord. What does one even do with all that money?
78%  2.5T
I’ll post the same comment I did on OP’s other post in r/infographics… (some info might be wrong cuz I half assed all the research and am going mostly off of memory)
People need to understand that a 57% profit margin is fucking UNHEARD OF in business. Walmart has a net profit margin of under 3%. Apple is known for having the best financials with a net profit margin of ~26% (and due to that, making up a large part of legendary investor Warren Buffet’s portfolio). Many companies have a profit margin that goes no higher than 20%, and only the best of the best usually beat it. Nvidia had somewhere under a ~15% net profit margin less than 5 years ago, and they’ve raised it almost quadruple that. The AI boom has raised Nvidia from a little-traded regular large-cap, to the third most valuable company on the planet behind other mega-cap companies Microsoft and Apple.
Amazing margins, but still hard to get behind a $2.5T market cap
Bro look at all that green.
I like this visualization
God damn those profit margin, and 🌈🐻 still think they can short AI lol
1 cent dividend post split…that’s nothing
PRINTERRRRR GO BRRRRRRR
That revenue increment is actually fucking insane, having everyone pay whatever ask you list because you are the shovel seller in a gold rush really is a profitable business
1. taking money away from bers
No way those margins are sustainable. There will be blood when they inevitably compress.
The profit margins are insane. NVDA can’t be stopped.
Market all over green tomorrow, rate cuts coming
And here I am, with my 4k ray tracing next gen game at 150fps, thinking my 4090 is the most important financial investment of all time
Gaming barely 10% of revenue now. It’s over for the PC GPU market lol
Those margins are insane
Here’s the thing…. These margins are insane, but the product they can sell is capped by TSMC capacity.
Forward P/E is capped by a combination of that and any additional price increases/additional margin they can drive for future generations.
At some point, GenAI is going to need to make good on all the promises these sales are driving. Spoiler alert – it won’t. The technology is a DREAM when it comes to proof of concept and flashy demos. But it’s an absolute mine field to do anything useful in production, because at their core LLMs are not trustworthy without a human in the middle.
And then the story shifts from job replacement and miracle productivity growth, to just typical organic productivity growth.
And these prices aren’t gonna fly if it’s just about providing next generation Clippy to existing workers.
All that said, no one knows when the disillusionment will occur. So I’m not dumb enough to take a bearish position
In two years max this hardware will be obsolete. New hardware will be smaller, faster, all while using less energy.
How does Nvidia pay 14% taxes while I’m paying over 30?
This is an insane way to visualize financials. Insane in a bad way.
And here I’m paying +30% in taxes…😭
Literally money printer
I’ve been reading a lot about NVDa today obviously and one thing struck me when they were talking about all of the chips being bought by Meta, Google or something and it’s occurred to me that this thing could actually be a pretty big house of cards.
Like all these companies are buying these chips and are in a huge rush to buy the next big chip and the one after that but they aren’t really doing anything with them. They are trying to do something with them, they may actually do something with them but right now it’s all theoretical.
Like NVDAs massive profits are other companies R and D expenses. They are usually my money generated through AI hype to buy the chips they need to keep the hype going.
But what if it doesn’t really go anywhere? These same companies have spent billions on EVs then abandoned them, or wearable tech then abandoned them.
I’m not saying I’m bearish on NVDA but I just think a scenario exists where the taps just get turned off once. Like at what point does any of this actually produce anything?
Those profit margins are insane.
When does a Fiscal year start in USA ? According to nVidia results it’s Feb to Jan. But google says it’s October to September.
This makes too much sense to be posted here
Wow