Nvidia: History Of CPUs Says GPUs Are Not Worth $3 Trillion


  • NVIDIA Corporation’s stock price continues to rise, reaching a market cap of $3.1 trillion by June 21, 2024.
  • A cautionary tale from Intel’s stagnant stock price post-2000 despite market dominance in microprocessors.
  • Intel’s revenue and profitability were compressed by credible alternatives, even though it had a market share of 60-80% over the past two decades.
  • A story similar to Intel’s could play out for Nvidia as AI chips’ revenue growth, profitability, and valuation multiples falter after the initial buzz and excitement wears off.

Small microprocessor, microcontroller chip on a generic modern desktop PC computer motherboard, object macro, extreme closeup, shallow dof, nobody Electrical components shortage concept, circuit board

Tomasz Śmigla

NVIDIA Corporation (NASDAQ:NVDA) stock price continues to power ahead recently, with a market cap on June 21, 2024, of $3.1 trillion. I previously covered NVDA on April 22, 2024, and argued it was different from

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Leave a Reply

Your email address will not be published. Required fields are marked *