$NVIDIA Corp(NVDA)$ The biggest lift that NVDA chips are providing isn't genAI and applications being monetized, but, as Huang said on the last call: "Data processing, we hardly ever talk about it because it's mundane. It's not very cool because it doesn't generate a picture or generate words, but almost every single company in the world processes data in the background. And NVIDIA's GPUs are the only accelerators on the planet that process and accelerate data."
This is key - also that there is complimentary software that is essential, subscription software for their hardware, in other words, NVDA is rapidly growing another vertical: SaaS. We are watching an $Apple(AAPL)$ 2.0 right before our eyes.
NVDA is leading by leaps and bounds transforming the world's IT/computing architecture - hardware, software, networking, facilities, cloud services. There will be several other revenue segments emerging from this transformation that will generate significant cash flow for NVDA.
27x for that potential seems pretty cheap... I think buy side also agrees, but of course they'd like it a bit cheaper, so why not sit back and let retail panic as sell side spins out bearish narratives before plowing back in.
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