Growth valuation

The valuation disparity between Intel and Nvdia

                Intel vs NVDA
Market Cap   : $210B      $165B
Revenue      : $66.2B    $11.8B
Gross margin :  61.8       62
Net Margin   :  20%        36.4%
Net Debt     :  $16B      -$4B


Yep and Nvidia growing at multiples that Intel is, Nvidia has a brilliant founder CEO, Intel no CEO at all, and GPUs are constantly stealing CPU functions by the droves w this process only accelerating as Nvidia constantly exceeds Moore’s law.



Tinker, you’ve put a spotlight on why I find financial analysis so bewildering. It’s not that I’m math impaired, I’m not. Actually I have minors in math, physics and chemistry (and a liberal arts degree). It’s not lack of information, rather its the abundance of it. That and determining what’s most relevant and important for any given analysis.

And then there’s critical and intangible factor of management which can be observed but not measured.

I bailed on PVTL the day after the most recent ER. It wasn’t the numbers so much as the CEO’s response to questions that caused me to abandon this company.


So many of us did the same with Pivotal. It was a holistic thing.

Nutanix is informative. They are at ~6x this year’s revenues, yet growing at 50% a year (this year’s illusion due to hardware disappearing being excluded) with enormous market ahead of it, and is a leader in a duopoly with no one else but Nutanix and VMWare in the contest. Dell’s leading hyperconverged product are the servers it sells with Nutanix on it (their #1 seller, of their 3 different products they sell into the market), and yet their price to sale is less than VMWare at this point in time. Why?

Who can say for sure, but I think I figured it out. But will probably need to wait until tomorrow as I have updated myself on this market and where it is going and how it is different today than it was two years ago, and yet, really, how nascent this market still really is.

Btw/the hyperconverged market just equaled the converged market last quarter and growing 7 to 8x faster, with the cloud convergence market on the horizon. The delay in Xi is not a small matter in this regard (hey, nearly a year late - but if they get it right!).

Anyways for later, I have to stop what I like doing third best, and get to what I like doing fourth best (work).



Nvidia has a brilliant founder CEO, Intel no CEO

Intel had many storied CEO’s and some unfortunate turn of events resulted in their CEO leaving suddenly. Company is looking at CEO’s which is transitional. Do you believe CEO is the value differentiation?

Do you believe CEO is the value differentiation?

Ummm, yeah. You don’t?

Consider that Intel cannot even keep up with AMD anymore in process technology, much less Samsung. The world’s leader in chip production is no longer even that. How does that happen? Oh yeah, bad leadership. Now they have really nothing but interim leadership all while AMD is taking their data center market, Nvidia is killing them with the GPU and the only reason they have the Google (Waymo) autonomous car contract is because Google competes against Nvidia in AI.

Kingran, do you think it is even close or a mystery as to why the multiple difference?


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When Andy Grove ran the shop, yes, Intel had great leadership, since his departure it’s been a downhill slide. Their performance in the marketplace tells the story IMO.

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