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Jlagreen | 7 months ago

DC GPUs from Nvidia are sold at $30-40k per piece. You might want to rethink your calculations.

Nvidia is going to sell >5 million Blackwells this year and will do $200b in revenue with that alone.

Nvidia has a high net profit margin of >50%. If Nvidia would make $4 trillion in revenue then they would have >$2 trillion in net profit. Then the market cap would easily be 5-10x higher than today because otherwise Nvidia would be the cheapest stock in history of all time.

Market cap is also a very bad indicator as it doesn't really tell how much money was really invested into the stock. Market cap is just a product of shares * prices. For example, I bought Nvidia shares in 2016 for a certain amount. These shares are >100x more valuable today but I didn't put any extra money into them. So 99% of "my" market cap was simply created by traders pushing up the stock price.

If tomorrow, the majority of Nvidia stock holders decide to sell and all stocks are sold then I guarantee you that never ever will $4 trillion be traded because if there is a strong sell move then the stock price will drop like a rock and the last sellers will get a fraction of money as they have based on todays market cap. We might be lucky to see $500b of trading volume.

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