Nvidia May Be Cheap Even After Tripling | The company's estimated price-to-earnings ratio show its shares are trading at a large discount to chip stocks
That advantage, he said in the interview this month, is reflected in Nvidia's data center graphic processing unit for AI. “It does have a chip in there, but if you look at one of their H100s that is the thing that's been driving their growth. That's effectively a server with eight GPUs, eight of their GPUs in 35,000 other parts and that's a $300,000 box where the chip itself is $25,000.”
For all of his confidence picking individual stocks, Benjamin is less assured about the broader market. “In the 20-plus years I've followed the semi industry, this has been the most interesting and different cycle that anyone's seen,” he said. “In 2020, things stopped for a very short” time “and all of a sudden they just recovered dramatically and no one was expecting that. So, history is always a guide for everyone that is in the stock market, including myself,” Benjamin added.
As for what’s to come, Benjamin expects more of the same. This period “is definitely unique. And I think it's going to be even more unique on the other side as we get into 2024 or 2025,” he said. They like to say in the fund business that past performance is no guarantee of future results, but his fund’s investors can only hope he’s right. After all, he usually is.
Matthew A. Winkler, editor in chief emeritus of Bloomberg News, writes about markets.
This column was provided by Bloomberg Opinion.