Value- SMCI and NVDA are not valued the same
NVDA is selling at about a 30 PE going forward. SMCI used to be valued in the single digit PE going forward(and was only about 8 going forward a year ago), however because of AI, is now valued at around a 19-20 PE going forward. SMCI is not in the semi sector, it's in the computer hardware sector, which has never gotten a very high PE, and historically a bit lower than semi sector PEs. I would say, SMCI is fully valued at a 20 PE going forward, and only that high because of AI hype. I wouldn't touch any of the semi stocks or hardware stocks that are linked with AI, as they will never keep up the present growth for very long IMO. I mean, who knows how long they hype AI, and maybe SMCI goes to $500+ soon, and NVDA gets to $ 700, but betting on SMCI or NVDA now, is like being at the casino on the craps table, and continuing to bet you don't crap out.
