Savvy Trades and Investments

[wadegarret]

value, SMCI/NVDA/AMD have limited growth- why ?

Because the only reason these are flying is for data center upgrades(to AI), which lasts a couple years generally. In addition, there will always be competition, no matter what the technology. So IMO you can't give these stocks that high a PE, unless there is multi year growth ahead, and the company has a monopoly in addition. Also, I don't know where you're coming up with $40 for fiscal 2025 on SMCI, when Yahoo Finance has multiple analysts averaging around $27. Either way, these stocks are up 500%-600% in around a year or less, and I believe they've pretty much priced in the data center revenues through 2025. This craziness reminds me of only one time in my lifetime, and that was the internet in 2000. I believe $700 for both NVDA and SMCI will be the top for some time.

By the way, this is why AAOI went up 900% this last year as well- data center upgrades.