The Absurdity of Nvidia's Valuation

A look at the fascinating world of Nvidia, the semiconductor company that has taken the market by storm. 

With a staggering market cap of $750 billion, Nvidia has become the 6th most valuable company globally, surpassing giants like Berkshire Hathaway, Meta, and Tesla. 

However, the intriguing part is that despite its impressive market capitalization, Nvidia doesn't even rank in the top 100 in terms of revenue and net income. 

Join us as we explore the valuation of Nvidia, which becomes even more astonishing considering the current historic chip glut and the drastic decline in PC sales over the past two decades. Despite these challenges, Nvidia's revenue has dropped nearly 30% since its peak last year, and its net income has been halved due to falling GPU prices. 

We'll also examine the unique phenomenon of "pandemic round trips" experienced by many technology stocks, including Nvidia. While the company faced a 65% decline in share price and diminishing profits in 2022, its stock has more than doubled in recent months, nearly reclaiming its pandemic highs.

Surprisingly, this rally can be largely attributed to the hype surrounding Chat GPT and generative AI, as generative AI models heavily rely on Nvidia's graphics cards for their immense computing power requirements. 

Drawing parallels to Cisco, the internet infrastructure giant of the dot com era, we analyze the similarities between Nvidia's position today and Cisco's during the late 90s and early 2000s. 

Cisco experienced an explosive increase in revenue as companies scrambled to connect to the internet, leading to an unjustifiable bubble in its share price. When the bubble burst, Cisco's stock plummeted by 90% and has struggled to recover even after two decades. 

The question arises: will Nvidia suffer a similar fate, or is this time different? 

Join us as we explore the prospects and potential risks associated with Nvidia's soaring share price and evaluate whether it can withstand the test of time and market fluctuations. 

Discover whether Nvidia truly holds the key to benefiting from the forthcoming AI gold rush or if caution is warranted. 

Don't miss this insightful analysis of Nvidia's past, present, and future. Like and subscribe to our channel for more in-depth discussions on the latest trends and developments in the tech industry.

What's the future of crypto?

The financial revolution once promised by cryptocurrencies has been knocked off course by regulators and allegations of fraud. So what does the future hold for crypto?

Could digital currencies put banks out of business?

Cryptocurrencies like Bitcoin have been billed as a major disruptor to finance. But digital currencies issued by governments might be even more radical—they may even threaten the future of traditional banking.

Project Polaris: Offline payments with CBDC

As part of Project Polaris, the BIS Innovation Hub Nordic Centre has published a comprehensive handbook exploring key aspects of how central bank digital currencies (CBDCs) could work for offline payments. 

Read the report at https://www.bis.org/publ/othp64.htm

Is The Banking Crisis Finally Over?

A look at the takeover of First Republic Bank by the FDIC and its subsequent sale to JP Morgan. 

We explore the impact of this crisis on other regional banks such as PacWest and Western Alliance, and discuss whether or not the banking crisis is finally over, as JP Morgan CEO Jamie Dimon claims.

Carl Icahn Comes Under Fire!

Legendary corporate raider and activist Carl Icahn found himself on the wrong side of a familiar battle this week when the short selling investment firm Hindenburg Research took aim at Icahn’s publicly traded holding company, alleging in a new report that Icahn Enterprises L.P. (IEP) is overstating the value of its private asset portfolio, and that its publicly traded stock units–85% of which Icahn owns–are “significantly overvalued.” Icahn’s fortune fell over 35%, from $18.3 billion on Monday afternoon to $12 billion as of Tuesday’s market close. 

Icahn Enterprises units tumbled 20% on Tuesday, shaving $3 billion in market value off Icahn’s fortune. Forbes then trimmed Icahn’s estimated net worth by another $3.6 billion, after it was revealed that Icahn had pledged over half of his IEP shares as collateral against unknown personal debts. 

Hindenburg is a short selling activist hedge fund run by Nate Anderson who is most famous for having released a video of Nikola’s electric truck prototype being towed up a hill in order to be pushed down to make a promotional video showing that the technology was fully operational. He claims that Icahn Enterprises has a Ponzi-like economic structure.

Why First Republic Bank Was Seized and Sold to JPMorgan Chase

First Republic Bank was seized by the FDIC early Monday and a deal was struck to sell the bulk of its operations to JPMorgan Chase, a move that regulators hope will stabilize the industry and cut down on customer panic. This comes after First Republic lost $100 billion in deposits following the collapse of Silicon Valley Bank.