NVDA has been flat for a year now, ratios keeps compressing but the stock is going nowhere it seems. I thought after the recent breakout in april, we would consolidate higher, but no, it came back down to where it has been since a year ago. The ratios keeps compressing but the stock is stagnant. I told myself that I would be patient because the price will eventually follow earnings, but that hasn't been the case.
It seems people are really fixated on market capitalization rather than other metrics like P/E, forward P/E, etc. As a comparison, AMD keeps breaking higher while the valuation is significantly more expensive than NVDA. I would say another similar story is META, although there is uncertainty around capex for META so I can understand. At what point do you throw the gauntlet and look for returns elsewhere in the case of NVDA?