A Boomer's review of Nvidia - Part Deux

Introducing The most Important Chart in the World

99% of Nvidia bulls and 99% of Nvidia bears don’t have much of a clue about the company, and I won’t claim I do either. But as we did in Part 1 of our Nvidia analysis, I like to approach the topic with a fresh pair of eyes from the perspective of a tech-illiterate boomer.

In Part 1, I wanted to get across that there are “many ways to skin the AI-cat” and invest in the AI theme through “old economy” sectors. For example, since publication:

• the Tin price is +30%

• Metals-X (our preferred tin play) is +60%

• Nat gas is +65% (!)

• Everyone is now talking about the impact of AI on Energy demand, the Grid and even copper demand!

In Part 2, we will discuss the valuation of Nvidia and introduce what I will unashamedly refer to as “The Most Important Chart in the World” (it most likely isn’t, but please just go with it).

There is a simple valuation argument to justify Nvidia’s share price today:

• The company is projected to make $75bn in net income next year, as per consensus (their year-end is Jan 2026 so assume I mean that one)

• Microsoft is trading at c.30x forward P/E

• Apply this 30x multiple to Nvidia’s earnings and you get to today’s market cap, give or take $100bn (peanuts in the grand scheme of things!).

Commodity investors reading this are ready to jump off the page and question the mafs, but to this I say: