Nvidia Stock Price: What's Driving the Hype and Can It Last?
[Generated Title]: Nvidia's $500 Billion Order Book: Or, How to Fleece the AI Sheep
Alright, let's get one thing straight: I'm seeing headlines about Nvidia's overflowing order books, and I'm immediately reaching for the antacids. Half a TRILLION dollars in orders for Blackwell and Rubin GPUs by 2026? Give me a break. Are we seriously still swallowing this AI hype Kool-Aid?
The Hype Train Rolls On
Jensen Huang, bless his heart, is selling shovels in a gold rush. And boy, are those shovels expensive. They're saying Nvidia's looking at $70 billion per quarter just from these high-end GPUs. $70 billion! Let's be real, that's more than some countries make in a year.
And ofcourse, everyone's conveniently forgetting the China situation. "Oh, it's unfortunate they have zero share of the Chinese data center market," they say all so casually. Unfortunate? That's like saying the Titanic had a slight leak. China used to be 20-25% of their data center revenue! Now it's a big fat goose egg because the US government doesn't want them getting their hands on the tech... or, at least, that's the official story.
But hey, who needs China when you've got the US Department of Energy throwing money at you? Seven AI supercomputers, 100,000 Blackwell GPUs... it's a feeding frenzy. And Nvidia's right there with their bib on, ready to slurp up every last drop of taxpayer dollars.
Is This An AI Bubble? Seriously?
Nearly 90% of Nvidia's revenue comes from data centers. Ninety percent! That's not a diversified business; that's a house of cards built on AI hype. And they're trading at 55 times trailing sales? That's not a valuation; that's a hostage situation.
They expect us to believe this nonsense, and honestly... I'm starting to wonder if I'm the crazy one here. Maybe AI is the future, and I'm just an old Luddite yelling at clouds. Maybe Jensen Huang is the second coming of Steve Jobs, and I'm just too cynical to see it.
Nah.
Nvidia's stock is supposedly cheap because they're growing faster than apple stock or microsoft stock. It's trading at less than 30 times next year's earnings, which is about the same price tag as those companies. But here's the thing: those companies actually make real stuff. People use iPhones, Windows, and Google search every day. How many people are actually using these fancy AI supercomputers?
The Fine Print
Keithen Drury from Motley Fool has positions in Nvidia. Of course he does. I'm sure there's a disclosure policy, but let's be real: who actually reads those things? Jensen Huang Just Delivered Incredible News for Nvidia Stock Investors
And then there's the whole "data center capital expenditures could reach $3 trillion to $4 trillion by 2030" prediction. Says who? Jensen Huang! So the guy selling the shovels is also predicting the size of the gold rush. That's not a conflict of interest at all, right?
I'm not saying Nvidia is a scam. They make good chips. But this whole AI thing feels like a giant, overblown bubble waiting to pop. And when it does, a lot of investors are going to be left holding the bag.