Nvidia Is Starting to Look a Lot Like Tesla (And Not In a Good Way)
Nvidia has had an historic run over the past week as strong guidance fueled by the excitement about the company's artificial intelligence prospects has the stock knocking on the trillion dollar door. The company's rapid rise over the past week and a half has raised its price to earnings ratio and price to revenue ratio into levels financial advisers would normally say are to high to be sustainable. Peter Mallouk, a financial adviser who heads CPI Wealth, points out that Nvidia currently has $26 billion in sales and is now trading at over 38 times sales and over 200 times earnings.