$NVDA valuation is ridiculous. It’s trading at just 16x 2027 earnings despite almost 32% annual growth expectation by 2028. Cheapest of the major designers. This stems from assumed cyclicality, but we have seen that semiconductor industry has been less and less cyclical since the introduction of cloud. We are still very early innings of AI adoption, so compute demand will keep growing at least for the next decade. This growth in demand will be joined by replacements due to depreciation, making it very unlikely for us to see a down cycle in chip demand, at least for the next decade or so. Even if cyclicality were to hit, other names in the sector would also be affected, so they should also have been discounted, but they aren’t. In both cases, $NVDA is mispriced. I am long, the price
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