Nvidia: Can they continue to grow earnings?

Investment Analysis Clubs Macro Economic Trends and Risks
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Yahoo Finance shows earnings last quarter at about $1.08/share, expected to grow to $2.05/sh when reported Aug 23. That’s a 90% gain in one quarter.

Presumably that is due to AI. They can sell all the chips they can make at much higher prices.

What about production capacity? Their products are made by Taiwan Semiconductor. Are they increasing capacity? Or is it all sold out? So profit growth is limited by price increases?

Anyone know any details?

And by the way at $424.13/sh, Yahoo is showing a PE of 215. But if I take that Aug 23 number and annualize it, I get $8.20/yr earnings expected. That gives a forward PE of 51.7. Not a bad number for a growth company.

Can they continue to grow?

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I agree… seems like an OK price. And yeah, years of growth possible ahead, although chip companies are notorious for variable earnings, IMO.

Rob
He is no fool who gives what he cannot keep to gain what he cannot lose.

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Chip foundries take years to expand capacity. That seems to slow the growth rate of the most advanced chips.

So how does Nvidia stand in ability to increase the number of chips sold? Are foundries diverting capacity from other clients to produce more of the more profitable Nvidia chips?

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And sometimes the news swoops in at you from the sidelines:

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I have an AMD Red Devil 6600 xt. I want to sell it later this year if prices rise like crazy again.

Anyone know what the story is with Neon gas and chip production? We are hearing next to nothing. While PC’s have been very widely available because demand is low other things have not been so available. My doctor was surprised I got a new CPAP so quickly.