Economics

OK, here goes nothing, going to receive a roasting... TSMC is booked out to high heaven, Nvidia is completely in control of anything AI with no other company coming close to touching them, and at the end of the day, this is all but 1 month in the economy while most P/E for your average business even is near 15 or 20, corresponding to about 200 months. Cisco didn't have a moat worth a dime and households didn't even have always-on Internet back then, while Nvidia gets to basically set their price. Sure, AI isn't turning out to be a great source of profit for AI providers, but Nvidia sells the shovels, not the gold or stakes of land.

Sure 11% is excessive, but I can't see it drop like a rock any time soon. Because even if AI bursts like a bubble they are still the best at computer graphics by some margin as well, they'll still be the best at parallel computation. And if that fails, they're the best at making games do things, they know how to build computers and mobile devices, etc., etc. They made the Nintendo Switch for crying out loud and an RTX in my PC that I haven't used for anything AI in ages. They'll be fine.

And one other thing, their P/E ratio was well above 100 a bit more than a year ago. It's at like 60 now? And the market cap doesn't really count for anything, I mean VW was the most valuable company in the world during a short squeeze. Cisco's P/E was apparently 200 at one point.