Retail investor: AI is a bubble & Nvidia is the poster child
Me: What do you think
$NVDA trades at for a PE?
Retail investor: idk... like 60 times earnings?
Me: About 17x next year’s earnings
Retail investor: ok & the S&P?
Me: About 18.7x
Retail investor: wait... Nvidia is CHEAPER than the S&P?
Me: On forward earnings, yeah
Retail investor: so what’s the bubble then
Me: Ask that about the companies with no earnings. Not the one making more money than almost anyone on earth
Check the P/E before you call it a bubble.