Here are the last 12 months. Handsome parabolic growth for Nvidia, and no one else.
Here are the three largest companies, by market cap in trillions, as of Friday close:
Nvidia has been the second largest, but is now the third largest.
What’s Nvidia worth?
It’s announced increasingly powerful — i.e. faster — and very popular computer chips stretching several years into the glorious future. If those chips sell big-time — and I think they will — NVDA stock will do well, even from these elevated levels. Not parabolic, but OK, helped along by the ten-for-one split, which happened last Friday. I will buy some more tomorrow.
Speed is Nirvana in computing. Nvidia has it up the wazoo. With more speed, you can accomplish useful tasks today you could only dream about yesterday. From intelligent robotics to great customer service. From inventing life-saving drugs (inside a computer) to enhancing all what we do every day — from planning a trip to making a better presentation.
Try this: Big companies today have little clue where their products are, or which markets and countries want what and where. The information is in many, many computers (aka databases), few of which today can speak to each other. Putting a fast intelligent computer layer on top powered by Nvidia chips will produce ginormous profits for American industry. No wonder that the demand for data centers is off the charts.
Think search. Google has search today. But why pay Google for search results when Amazon will find what you want, rate them, and sell and deliver your hearts desire as well. The search biz (business) is in turmoil. Everyone is buying chips and data centers to get an edge.
Last Monday’s Wall Street Journal:
Guess which came out on top? Not Google, not Microsoft’s Copilot, not ChatGPT but a little known one (which all my friends adore) called Perplexity. Try it. Perplexity is great.
For the full Great WSJ AI Challenge, click here. Everyone and their uncle is trying to dislodge Google with better search. It won’t be difficult. Just as Nvidia dislodged Intel.
Let your mind wander. Last night, at a party, I asked a young engineer what product he wanted to improve? The lowly microwave oven. He wanted a better one.
He hated today’s ovens which just blasted heat without knowing how well (or poorly) they were cooking the food in them.
Wouldn’t it be nice if the oven could measure the heat inside the meat? And cook it just right. You can’t do that today, but you can create a large database of foods, have the oven recognize what it’s cooking through its cameras and check via Wi-Fi a remote database for optimal cooking. You could have a large touch-screen on the oven and let you choose how you’d like it cooked.
Directional microwave. Wi-Fi. A touch-screen. A remote database of how food cooks. And AI smarts to get it all right.
Microwave food might become food you actually want to eat.
Imagine Google Maps or WAZE.
“Siri, what’s the building on the left?”
“It’s the local concert hall.”
“What’s playing tonight?”
“It’s your favorite musical, West Side Story.”
“Can you get me two tickets in the orchestra for tonight?”
“Sure. You have two tickets. You can pick them up at the box office at 7:45.”
Imagine what you can do with cheap, but immense computer power/speed and big database (also called a LLM, or large language model).
It doesn’t take much imagination to see demand for Nvidia’s chips continuing through the stratosphere.
Techie Tips
+ I finally got the guts to turn on my email spam filter. And it works remarkably well. It’s peaceful without the begging, the fake invoices and the politician who need only $3 to win a Senate seat. (Yes! Go for it.)
+ Charging an iPhone with a cable is many times faster than wirelessly.
+ YouTubeTV is the absolute greatest streaming service. It leaves the others in the dust. And leaves services like Spectrum and DirecTV for dead. You can watch wherever you are, whenever you want. And it has great (and seemingly unlimited recording). You no longer feel guilty going to bed when old fogies’ do.
+ Verizon is giving bad cell phone service a whole new meaning. T-Mobile (and its resellers like Mint Mobile) are much much better.
+ Nobody listens. But the handful who do are absolutely worth working with. Test before you waste your time and money working with people who don’t listen.
+ Everyone is getting a new knee — and loving it. “Why didn’t I do it earlier?”
+ Safelite charges twice what your local guy charges for a cracked windshield. You do not need to pay for “recalibration.’ Trust me.
+ Your iPhone has a super-useful mouse. Hold down the spacebar for a second.
+ Your iPad is not a laptop, despite an attachable keyboard. It’s a content viewer. Not a content creator.
+ If your kids are unhappy with their jobs, tell them they must learn two new skills — selling and presenting.
+ Skechers makes the most comfortable sneaks. They’re not the most beautiful. But, heck, Rupert Murdoch wore sneakers (and an elegant black suit ) to his 5th wedding. He’s 93. I bet he has a neat prenup.
+ Blundstone makes the most comfortable and durable boots. Susan is taking hers to Iceland.
+ As the economy slows, big appliances, computers, EVs (especially used ones) etc. are getting cheaper.
+ Home automation is a long-term disaster. It breaks down and spare parts are always “manufacturer discontinued.” Marvin Windows no longer makes the crank for a window in my office, which the painters broke. Such joy. Now I have a window which doesn’t open.
+ Electric bicycles are the beat invention since sliced bread or blue suede shoes (I once had a pair). The Citybike rental electricals in Manhattan are a total pleasure to ride.
+ You’re overpaying for every monthly subscription you have — cellphone service, Internet access, satellite TV, etc.
+ Autopay gives your vendor the right to print money — i.e. to keep jacking up your bill without your permission.
Other stocks
I like Eli Lilly and Novo-Nordisk. They’re are lots of fat people, who don’t want to be.
Elsewhere? Apple, Amazon, Google, META, Microsoft and Taiwan Semi inspire, but not awe.
Fact is prices are high.
You cannot believe how much money there is in children’s books
I visited grandchild Sophie and left with my week’s reading assignment:
Look carefully at the cover of Diary of a Wimpy Kid. The author has sold over 275 million of the Wimpy Kid series.
That’s gotta be $500 million in royalties. Much better than a slap in the belly with a cold fish.
Weeding is the greatest relaxer
Weeding is not mindless, but as close to mindless as you can get.
After 10 minutes of brain relaxing, you can end up with a pile of weeds. (Sunday’s efforts.) Very satisfying.
The best tool is called Grandpas Weeder. You don’t bend down. You stand there, push down and contemplate the world’s problems.
Only $45 at Amazon. Much cheaper than a therapist.
Favorite recent cartoons
The Longevity boom
I’ve been researching longevity beyond obsession.
The first key is not to die.
By the way, not all parabolas crash. It depends on — are they based on fantasy, like tulip bulbs, or something else? Nvidia chips?
I have conclusions in the next blog on chips and longevity — probably tomorrow.
Meantime, don’t do stupid.
— Harry Newton
