Analyzing NVDA Valuation: AI Spend Sustainability and Margin Compression
menhguin · x · 2026-08-29
Discusses NVIDIA's valuation logic and investment thesis. If token spend plateaus and margins halve due to memory costs and competition, NVDA's P/E ratio would settle around 30-40x. The author argues this makes sense and counters bearish cases: 1) AI token spend is sustainable (finance folks underestimate SWE consumption); 2) Margin compression is valid but overstated.
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